I’m honestly happy about this because I think car manufacturers are inflating prices and pocketing the difference. I feel like subsidies in general are pretty inefficient uses of taxpayer dollars.
I think we should pair this with a carbon tax so gas cars are less desirable, as well as reducing tariffs on EVs to keep the market competitive. However, we all know that’s not happening.
But on net, I think pre-credit EV prices will come down a bit to stay competitive with gas cars. It won’t be quite as attractive as with the credit, but estimates show a 7% difference by 2030 (35% w/ credit vs 28% w/o credit), so the difference isn’t huge. I think we’ve already crossed the tipping point where adoption will be pretty quick, so this just puts a small damper on that adoption.
I want to point out that even if they are, the incentive is still having the desired effect, because in that scenario it makes it much more profitable to sell an EV than to sell an ICE vehicle, meaning the manufacturers are going to push the EV’s more. And given that incentive, they would still be strongly incentivized to price the EV’s in a, way that compares will with their ICE offerings, even if they could theoretically sell them cheaper.
A big part of getting results is understanding how to turn greed to your advantage.