See the 9 Vehicles That Just Lost the Full EV Tax Credit

A Quick Overview of the Changing Federal EV Tax Credit

Let‘s quickly recap the recent changes to the federal electric vehicle tax credit that went into effect on April 18, 2023 due to the passing of the Inflation Reduction Act. The key change is tighter requirements around critical mineral and battery component sourcing combined with stricter rules for where final EV assembly can take place.

This means some popular electric vehicles now longer qualify for the maximum $7,500 tax credit. In this guide, we‘ll analyze the 9 vehicles losing eligibility and what it means for consumers.

Why EVs Lost Eligibility – A Data Perspective

The updated IRA guidelines fundamentally changed qualifications around mineral and component sourcing plus location of final assembly.

Here is a breakdown of the key challenges for models losing their eligibility:

Statistics source: U.S. Treasury Department

Rivian and Volvo also both failed to meet new sourcing requirements. This data highlights where automakers struggled to shift supply chains – especially relating to critical batteries.

Comparing EV Adoption By Income Level

Industry data paints an interesting picture when segmenting electric vehicle adoption rates by income level.

EV Market Share By Income Bracket

This suggests EVs remain out of reach for many middle and lower income American households. By shifting supply chains to prioritize domestic job creation, reduced EV costs in the long run could make electric vehicles accessible to a wider demographic.

Statistics source: Cox Automotive

While some see the short term challenges from the shift, prioritizing American manufacturing may pay dividends through improved equity and affordable electric mobility.

Expert Opinions – Dr. Sampson Li

"The latest requirements force the hands of automakers to rethink global supply chains and assembly processes. This disruption means temporary setbacks for EV option availability. However, centering North American facilities, minerals, and components should accelerate cost reductions over the next 5-10 years." – Dr. Sampson Li, Carnegie Mellon University Professor of Supply Chain Management

Thought leaders like Dr. Li highlight why localized focus aims to enable cheaper, more accessible electric vehicles that aid adoption across income levels.

Key Takeaways – Consumers Still Have Great EV Choices

For consumers in the market now, changes to the tax credit undoubtedly cause confusion. However, many stellar electric options still qualify for big rebates.

As supply chain localization materializes, equitably priced EVs should keep improving in capability while decreasing in sticker prices.

Here are the key takeways for interested EV buyers:

• 9 vehicles lost full eligibility after April 18, 2023 but many models remain qualified
• Rules now prioritize US assembly and component sourcing to enable job creation
• Lower income buyers stand to benefit most from eventual cost savings
• Until localized supply chains develop, used EVs present affordable options too

While the roadheads remains bumpy, the direction points toward progress in making electric vehicles feasible for more Americans.

Conclusion

The federal EV landscape experienced dramatic shifts with the removal of eligibility from 9 vehicles after recent policy changes. This guide aimed to analyze the sourcing and assembly challenges automakers now face while explaining potential positive impacts increased domestic manufacturing may unlock.

As supply chain processes evolve and new electric options keep hitting the market, buyers have plenty to look forward in the coming years. Those interested in lowering their carbon footprint while saving money can still cash in on generous tax credits – underscoring why electric truly does present the way forward.

Any questions on eligibility or claiming EV credits? Let me know in the comments!