Ford’s CEO says market share could fall to just 4% to 5% by year’s end.
CHARLOTTE, N.C. — Electric cars have been one of the fastest-growing segments in the auto industry. But a major shift in federal policy could put the brakes on that momentum. The federal tax credit for electric vehicles has officially expired, putting what was once viewed as the future of driving in jeopardy.
For years, the $7,500 credit helped make EVs more affordable. It boosted consumer demand and pushed automakers to invest heavily in electric models.
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Now, without that incentive, executives warn of a sharp drop in EV sales. Ford’s CEO says market share could fall to just 4% to 5% by year’s end.
Dealers currently sit on about 134,000 unsold EVs — that’s roughly two months’ worth of inventory at current sales rates.
To soften the blow, some automakers are stepping in. Ford and GM are offering lease deals that mimic the credit. Hyundai is cutting prices on certain models.
Still, analysts worry that without lasting federal support, the EV market in the United States could shrink, especially for pricier models. That impacts car buyers, automakers and the push toward clean transportation.
