Ending EV tax rebate could seriously harm Tesla, Chevrolet, and Volkswagen sales, study finds
- by Digital Trends
- Nov 30, 2024
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Many analysts predict that sales of electric vehicles will be hit should the incoming Trump administration carry out its plans to end the $7,500 federal tax incentives on EV purchases and leases.
While predictions vary, with some expecting this would lead to a 27% drop in demand for EVs, research firm J.D. Power took an extra step and asked consumers how rebates had influenced their decision to buy an EV.
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J.D. Power’s study confirmed the federal tax credits have played a critical role in consumer decisions: Among premium brand EV owners, 64% say that incentives were a primary driver of their decision to purchase or lease their EV. Among mass market EV owners, 49% selected their vehicle based on tax credits and incentives.
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More specifically, the survey found Volkswagen, Chevrolet, and Tesla owners were the most heavily influenced by the incentives: Tax credits and incentive programs were cited as the top reason for purchase among 81% of Volkswagen buyers, 77% of Chevrolet buyers, and 72% of Tesla buyers.
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