Automakers Warn U.S. EV Sales Could Halve After $7,500 Credit Expires

Benzinga

Automotive leaders warn U.S. EV sales could collapse after the $7,500 federal tax credit expired September 30. Ford’s CEO expects sales to drop to 5% of the market, while Nissan cited “super-brutal” competition as inventory builds. Automakers are relying on leasing programs and price cuts to offset weakening demand.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Automotive executives are warning of a collapse in U.S. electric vehicle sales

00:07after the $7,500 federal tax credit expired on September 30th, according to Reuters.

00:14Ford CEO Jim Farley said sales could drop to 5% of total U.S. vehicle sales next month,

00:19roughly half of August's level.

00:22Nissan America's chairman Christian Meunier said automakers face

00:25super brutal competition as inventory piles up.

00:28The credit, first enacted in 2008 and extended under the Inflation Reduction Act,

00:33was cut under President Donald Trump's tax law.

00:37Analysts estimate EVI registrations could fall 27% without the incentive.

00:42Automakers like Ford, GM, Hyundai, and Volvo are turning to leasing programs

00:47or price cuts to cushion the impact,

00:49though dealers warn expensive I.V.S. could stagnate on lots.

00:52For all things money, visit Benzinga.com.

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