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Bloomberg statesthat analysts figured that removing the tax credit would reduce annual U.S. EV registration by 317,000 units.
As if this risk were not bad enough, it also compounds the automakers financial position.
Its Air sedan kicks off at $71,400, solidifying it as a luxury car filled with affluent buyers.
But even high income consumers are sensitive to price changes.
The risks are exacerbated by Lucids operational challenges.
The cost difference between electric vehicles and internal combustion engine vehicles are covered partly by tax credits.
Removing the subsidy would force Ford to swallow the $7,500 or raise prices and further volume declines.
Additionally, the strategic alignment is at risk of also falling to the policy shift.
If the EV tax credit is eliminated, this could hurt GMs profitability as well as its sales projections.
Without subsidies, Stellantiss premium-priced electric trucks and SUVs could struggle against established rivals like Ford and Rivian.
Automotive Logistics reportsthat Stellantis is investing in European EV production, such as battery production in Canada.
Its U.S. models, however, may find themselves struggling with changes in the tax credits and tariffs.
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