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Electric car buyers in America can now get a bargain tax credit from the government, and that has pushed the price of many high-end EVs below the average price paid for a new car in America.
There are currently seven high-end EVs that cost less than the average new car, including two
(ticker: TSLA) example. Consumers should see them when considering going electric.
EVs had a good year in the US in 2022. More than 800,000 all-electric vehicles were sold, accounting for 66% of the 491,330 sold in 2021. Fourteen models sold more than 10,000 units in 2022, out of nine models and more up to 10,000 units sold in 2021.
The best sellers with more than 10,000 units sold, respectively, are: the Tesla ModelYTesla Model 3,
Ford motor vehicle
(F) Mustang Mach EChevy Bolt, Tesla Model S, Tesla Model X, Hyundai Ioniq 5,
(VOW. Germany) ID.4, Kia EV6,
(MBG. Germany) EQS.
Not all of those vehicles qualify for the new $7,500 tax. Cars need to be assembled in North America. That rules out Hyundai, Kia, Mercedes, as well as the Audi e-Tron.
There is also a price test. Trucks and SUVs must be priced under $80,000 and sedans must be priced under $55,000. It rules out the Model S and X as well as the EQS.
Of the remaining vehicles, parts of the F-150 Lightning, Tesla Model Y and Model 3, Ford Mach E, VW ID.4, Nissan Leaf, and Chevy Bolt can be purchased. below the average price of a new car. in America, which was almost $50,000 in December.
(The Rivian R1T qualifies for the credit, but a base model costs about $60,000 even with savings. That’s more than the average price for a new car.)
The F-150 Electric can be as little as $49,000 including the tax credit. The Chevy Bolt can cost less than $20,000. A Tesla model Y can be as little as $46,000. And the X3 starts at $46,000. The tax credit puts the EV within the reach of many car buyers.
“It’s a tax credit, not just a deduction,” the accountant said. Robert Willens. “That means it reduces your tax liability—not just your taxable income—dollar for dollar.”
To get the credit, you must buy a new EV or electric car. The credit is means-tested: Consumers are not eligible for the credit if they have more than $300,000 for married filing jointly. and over $150,000 for singles.
“You can use your (income estimate) for the year you delivered the car or the year before, whichever is less,” he said. Willens added.
It’s a good price for now. Credit may change in March. The IRS, which is responsible for debt enforcement, is working on implementing other laws related to where to install battery packs and where to buy batteries and accessories. Most batteries and components sourced from China can reduce the credit down to $3,750 for some vehicles.
Currently, the amount is $7,500 per qualifying vehicle.
Tesla had to cut its US costs get Model 3 and Model Y cheaper to qualify for awards. The reduction in prices did not bother investors. They seem to be motivated by the inability to afford higher prices and lower prices. Since the cut on January 12, Tesla’s stock is down about 3%. Of the
are down about 2% and 3%, respectively.
Tesla’s price cuts don’t help other automakers. Ford, GM, and Mercedes shares are down about 9%, 7%, and 5%, respectively.
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