Overview

Author John Herrman explores the current state of the U.S. electric-vehicle (EV) market amid political headwinds, emphasizing drastic price cuts tied to the impending end of federal EV tax credits and the influence of Donald Trump's opposition to EVs.

Current EV Deals

Manufacturers including Ford, Chevy, Hyundai, Nissan, Polestar, Toyota, and Volkswagen are offering:

• Free home chargers
• 0% financing
• Cash incentives and reduced lease pricing

These deals are designed to capitalize on the $7,500 federal tax credit for new EVs and a $4,000 credit for used EVs—both set to expire soon under the “One Big Beautiful Bill Act.”

What Happens After the Credits

Without federal subsidies, automakers expect:

• Delays or cancellations of new EV models (particularly American-market SUVs by Ford and Honda)
• An estimated drop of over 300,000 annual EV sales, reducing U.S. EV sales below 1 million units per year.

Politics & Policy

EV tax credits originated in Democratic environmental legislation and have become a political flashpoint. Trump publicly derides EVs - labeling them a “hoax” and obstructing related policies - aligning with oil-industry opposition.

Global Contrast: China Dominates

China continues its lead in EV production with heavy subsidies. Chinese brands like BYD now produce affordable EVs under $12,000 and dominate global sales. In contrast, U.S. market share risks stagnation without federal support.

Outlook

Two potential long-term scenarios emerge:

• American automakers might pivot toward global exports for EVs.
• The U.S. could fall behind - dominated by gas vehicles as the rest of the world transitions.