Reply To: Traders Market Weekly: Robots, Dribbler Enthusiasm and Short Squeezes

#42064
Truman
Participant

The $430B Inflation Reduction Act passed by Congress includes new rules governing the electric vehicle industry. The most dramatic is that the current $7,500 EV tax credit will be replaced by incentives designed to bring more battery and EV manufacturing into the U.S..

Crucially, electric vehicles assembled outside North America will not qualify for the EV tax credit.

Audi (OTC:AUDVF), Kia Motors (OTCPK:KIMTF) and Porsche (OTCPK:POAHY) have already stated that buyers of their electric vehicles will not qualify for the tax credit, while Volkswagen (OTCPK:VLKAF) said it will have to work out how to make the ID.4 eligible next year.

Higher-priced EVs from Tesla (NASDAQ:TSLA), Fisker (FSR), and Lucid Group (LCID) also will not qualify for the EV tax credit. The cap to qualify is $55K for sedans and $80K for SUVs and trucks.