California is gearing up to offset potential cuts by President-elect Donald Trump to electric vehicle (EV) subsidies, causing uncertainty for EV buyers next year. The state plans to fill the gap if federal subsidies are scrapped, replacing tax credits introduced under the Inflation Reduction Act. Trump has criticized EV incentives and may eliminate them, sparking concerns in the industry.
EV sales are soaring, but manufacturers must balance production with demand. Prospective buyers are advised to act soon due to possible changes in subsidies under the incoming administration. It is model-year sell-down time, leading to discounts on 2024 EV models.
Tesla, favored by Trump, may benefit if subsidies are axed, as the company dominates the U.S. EV market. The federal credit also applies to lease agreements, allowing lessees to save money. Dealers are offering reduced monthly lease payments utilizing the full credit amount.
Overall, the EV market faces challenges under the Trump administration, with uncertainties around tariffs, potential subsidies cuts, and market exclusions for certain automakers. Buyers are urged to take advantage of current incentives before changes take effect. Ultimately, the future of EVs remains unclear, and industry professionals recommend immediate action for potential EV buyers.
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