EV Tax Credit EXPIRED: What’s Next for Electric Cars?
The EV tax credit has expired and there’s a lot of uncertainty, a lot of questions about what’s going to happen with the EV market, the EV industry, everything about EVs now that the tax credit has expired. We thought we would just sort of jump in, give our two cents, see what we’re seeing, and give you guys an update. This is going to be a pretty casual chitty chat. We are actually not in our Maki. We’re in the Bay Area in a rented MI. We’ll tell you a little bit about that and a little bit about Drive Electric Month this year. So, I’m Lab. I’m Patrick. We’re electric duo. Let’s go. National Drive Electric Month is September 12th to October 12th. So, the tax uh change happened right in the middle of that, which is kind of strange, isn’t it? Like just bad timing. Sort of. Yeah. Really bad timing. But we’ve seen interesting stuff both online and in person because we’ve been uh all over the country for National Drive Electric Month. We’ve been in Tennessee, we’ve been in Skenctity, and now we’ve been in the Bay Area all about EVs doing all sorts of e EV stuff talking with EV owners. So, it’s been a really interesting experience uh to just be like inshed in all of this all around the country while um the support of it has just completely evaporated. the the federal support and that’s what we’ll get into is like there you know we saw um a lot of changes you know basically the tax credit going away and I think a lot of people had that initial doom and gloom uh Jim Farley was saying like instead of 10% uh percentage of sales he could see it dropping down to 5% I’ve saw a number this morning saying like maybe drop to 8 and a half% next year obviously Q4 is going be not that great. Q3 was fantastic for basically every EV manufacturer, but things are shifting quickly and and as Liv was saying, as we were just talking to other EV owners and stuff, there’s a lot of like dread of what’s going to happen. Is the EV industry going to collapse? Um, I don’t think it’s going to thrive like we were hoping it would thrive. I don’t think it’s going to collapse. I think it’ll be somewhere in between. There’s going to be some disappointing news uh in sales numbers as well as stuff like the uh Acura ZDX being cancelled and the Nissan Arya not coming to the US for 2026 production pauses like the ID4 is being paused. So there’s there’s a lot of bad news, but I think it’s just going to be a little bit of a rough period and we’ll just have to sort of hold tight and see the silver lining in all this. Yeah. And by the way, this is going to be a little casual touch base about this, but subscribe if you are interested in this and and want more content because uh Patrick’s been talking about developing some some more in-depth stuff because this is really going to be interesting to see this evolve. And we really have seen some interesting stuff happen already. Obviously, uh Tesla introducing lower price models of the three and the Y um with with paired down features um Colorado incentives being increased. Um so states matching incentives or doing things to to help with that. Yeah. No, and I just want to like emphasize this part because a lot of people are like, “Oh no, October 1st, you can’t buy an EV now because it’s way more expensive.” If you are still interested in an EV and we’re like, “Oh, no. I missed it.” Uh, do some investigation because Ford is still doing some great incentives if you lease. Um, and I think they’re doing some great financing incentives. Hyundai just announced they’re like dropping the the the price of their EV significantly, like up to $9,000. Uh, GM, I think, is doing like a $3,000 off like a Equinox. So there’s there’s some great deals to be had still right now. So don’t just go like, “Ah, I missed it. I can’t buy one now. I’ll have to wait two years.” Go out there and look. There’s some really good deals still to be had. The the manufacturers are trying to make up some of the the the difference. And not that it’s a good thing to to lose the tax credit, but in a good way, they’re making it a little bit more simple because you don’t have to like, do I qualify for the tax credit? Does this deal work under the tax credit? I can’t buy because I got a lead. Like there there’s it’s getting rid of a little bit of the complexity and just offering some great deals. So go out there and look. Um I I’ll try to find an article that summarizes all of that and put that down in the description. So check the description. I’ll I’ll put something down there with some of these great deals. Yeah, I mean I I saw that the Hyundai 5 is still under 300 a month. So, if you have been considering an EV, watch some of our videos or or I’m sure there are other people with lots of good videos on like how they’re actually a cost-effective choice. It’s still, even if it’s uh a pricey investment to get an EV, to get a vehicle in general, um you have the an ability to uh affect the cost of your fuel basically, right? Which you have no control over that with gas. You pick a gas station and and that’s how you pick what the cost of your fuel is. But like EVs, we have some controls. Some people around the country have incredibly cheap charging. Some people have access to free charging at work or whatever. So there are all sorts of reasons that going electric is awesome and is still awesome regardless of of the incentives and and stuff like that. Now, unfortunately, of course, um the government has pulled incentives on the investment in an electric future. So, uh, battery, um, battery plants, all of that stuff, like all part of the the bill, right? So, the repercussions of this are going to be long-term and, uh, ever changing. So, we’re definitely going to keep track of them and try to share more, but EVs aren’t going anywhere. They’re certainly not going anywhere, and the EV infrastructure isn’t going anywhere. And that was something that we’ve been involved with very heavily during drive electric month. Um, we actually went out to Tennessee to visit uh, Field Advantage and their facility, like their training facility and their warehouse. They basically maintain chargers as well as like a ton of other things in the world, like their they have their fingers and many pies. Is that how you say it? Yeah, exactly. Yeah. Um, but they’re ensuring that chargers are uh, reliable. They’re, you know, consistent uptime, all that good stuff. So, like these are things that we need to see in the industry and we need to see continuing, right? is as we continue to go, electric is a continued investment in the infrastructure. Um because even if there are EVs are 8.5% of the market share, that’s still pretty good. So we can get rid of this stuff. Yeah. These oil refineries up here. Uh yeah, it it’d be nice if we could get rid of some more of these. So anyways, uh yeah, I just wanted to throw that in there. We also uh were at a national drive electric month event in Skenctity and one of the the big sponsors is Linkwell that’s also in Skenctity and they’re they’re also putting in uh lots of chargers throughout the country. They do their own software. They’re USbased. They’re based in Skenctity building level two chargers in Skenctity. And I know it’s EVSSC. Just don’t correct me on that. Everybody says I do whatever algorithm. But but yeah, it’s uh it’s really great to see that there’s still some optimism there. Um, and one of the other one of the other reasons that we wanted to do this video was uh we haven’t finished all of our Munich Auto Show videos, but uh and we have a wrap-up video that maybe will be out before or after this one, but it was um it it’s sort of like yes, we we have like individual car videos and things like that, but it’s like trying to express how different the landscape looks over in Europe, specifically Germany. But while we were there the whole time it was like Europe versus China and we go to auto shows in the US and we have to try to hunt and find the EVs that are there. EVs were just everywhere at the Munich auto show. It was massive and it was Chinese brands and European brands. Pujo, BYD, Xping, like just Oh, no. Every like everywhere you looked, uh, these manufacturers are pumping out EVs. And it’s like I wish our leaders here in the US could see that because it’s like we’re getting left behind by handicapping our auto industry. They if they want to strengthen the auto industry, I like maybe tax credits um aren’t necessarily the the the way to go. We don’t need to get into political discussions because it is what it is. But it’s like if we want to talk about supporting US manufacturing, one of the ways to do that would be to support this transition to EVs because the rest of the world is doing it. And I don’t think any industry can be successful long term by being protectionist and isolationist. We need to basically see what the trend is. You can’t fight the future and I believe EVs are the future. If you don’t, that that that’s okay. You’re probably watching the wrong video. But but we we understand that there’s varying viewpoints. I just, you know, I I just think that there’s such strong such a strong case for this EV transition. It’s happening and we really are going to handicap Ford and GM if we don’t support that. and and our you know and Tesla and Lucid and Rivian like all of our US manufacturers that we’re so proud of like they’re they’re going to struggle so much and I think we’re going to like also lose EV charging infrastructure companies as well because of this rough rougher transition. Yeah, the there’s certainly potential that we’ll see consolidation which isn’t always a good thing. Like we want um startups to thrive. We want competition. We want variety, right? We want want all of these options and this innovation. So, um, companies might consolidate to survive, but then we will potentially lose some innovation. Um, it, like Patrick was saying, it was really, really interesting being there in Munich at the auto show and America was not really mentioned. You know, it was like you said, Europe versus China. There was Ford, but it was Ford Europe. And they have amazing EVs as we see. Sorry, craziness happening in front of us. Oh my goodness. Um, but they have amazing EVs that we don’t have access to here. Of course, the Ford Capri, the Ford Puma, um, the Ford Explorer electric. Uh, so I have not seen a climbing wall being towed on the highway. That was that’s a really interesting one. As as we mentioned, we are in the Bay Area. We are on our way to San Francisco airport to head all the way um, back to San Diego. And right now, there is a zero run happening. If you don’t know what a zero run is, there’s a a great big group uh SoCal EVs in Southern California, but um people from all over have come to participate in a zero emissions drive from Southern California to Las Vegas. Uh just a community event, a fun gathering and that’s happening right now. So that that’s really fun. I wish that we could be driving. Um but we had stuff to do. Really fun stuff that we’re going to share with you. Really cool things. Yeah. Actually, yeah. We’ll we’ll, you know, sort of related, we’ll just talk about this is like we were uh with Sig Energy yesterday. We had a previous video with them. We filmed a video yesterday. They uh have a product that works uh with your home energy system. Whether you just have a battery or you have solar and a battery um or just grid or just grid and you can put in this uh VTX charger that can DC fast charge up to 25 kilowatts depending on your your system your EV but it can also pull power from many EVs. So yesterday we saw them test out Mustang Maki. This what? But don’t tell the rental car company. Uh Tesla Model X for 2017 that had a CCS upgrade, couple of Rivians, Elucid Cybertruck, Gravity, a Cyber Truck. They were all of these. It was brand agnostic and they were able to pull energy out. And this is also part of the like EV transition of like we have some really great opportunities to expand how we control our electricity and our energy usage and how we use it and where it’s used and and time of use shifting, you know, like all these like things that they went into yesterday. Make sure you watch that video. But um that’s part of like I don’t want us to miss out on because like that is going to be revolutionary and it’s something that’s not necessarily talked about. It’s just sort of like the uh you know changing the way we are propelling our cars being electric as like the huge transition. But I’m like the way energy is distributed and held on to by consumers and then used in different ways. It’s going to be, I think, a huge advancement and help out the grid and help reduce uh greenhouse gas emissions by being able to have solar like all of this stuff and it’s really cool. And the uh solar tax credits are going away at the end of the year. Uh we got traffic traffic. We’ll see how bad the traffic is. Oh, there’s an accident. Um, it’s not too too long, but so, uh, yeah, and by the way, like just to relate this, so you could currently get a 10 kilowatt hour battery and slap it on your wall, right? Um, but if you’re driving an EV, you might have a close to 100 kilowatt hour battery. That is an insane amount of energy. We use around about 11 kwatt hours in a day. In a day to power our home. So, when you think about how much energy that you’re just sitting with, should we pause and not subject people to Oh, it’s not that. Uh, yeah, let’s pause. We’ll pause. We’re back. We’re through the traffic and we have a Grab a Blue Mark you to look at, which is lovely. Grab a blue versus rapid red. Please place your votes down below. I vote Grabber Blue. I do too, actually. But Rapid Red is very excellent. Um, by the way, I waved at someone the other day and they waved back, which was really gratifying. So, you were saying um I was saying uh it’s I don’t know about you, but I don’t know if uh we necessarily think about how much energy is in our cars and how much energy we use. Um but when you put it into perspective, using 10 or 11 kilowatt hours a day for your home, most use a lot more. Most use a lot more. We don’t have AC. Um so let’s say even 20. And if your car has 100 kilowatt hours, you have this huge amount to play with this huge amount of battery. And it’s cool to have the option to use that, right? Like our vehicles are are made to discharge power efficiently and effectively and a lot of power, right? So, it’s cool that now with Sig Energy that we have an option to do that that kind of all all brands now except for GM have have that option. Yeah. software limitation with GM. But yeah, but yeah, it and you know, it’s not necessarily, you know, like if you need that power during the day and you’re at work, you know, to keep your refrigerator running, of course, it’s not going to work. But there’s that’s a whole another subject, very complicated, the pros and cons. Um something that we may get into more and more as well because I I think it’s super interesting. Um, but yeah, it it’s just overall this transition is there’s a lot to it and I don’t think we’re going to be able to stop it. No. And you said a couple points earlier which I really like. Like one, you can’t fight the future. I think that needs to be a t-shirt. I’m sure it is, but I think we need to make it. It’s It’s a really good one. And you can’t fight the future. EVs are the future. It’s not saying that other forms of propulsion are necessarily going anywhere, but even if it’s slowed, um nothing’s changed. Like that truck got so close I was distracted. We don’t we’re not in blue cruise. We just have um the intelligent cruise control with lane centering. Love the blue cruise. The little scooch. Yeah, I have to keep my hands on, but it does do things like a scooch over as well. So, yeah. Uh we do have videos on that if you’re interested. The Blue Cruise updates have little scooch, so if there’s a crazy truck to the side of you, it it’ll scooch over. Um, but something I also wanted to bring up. So, yesterday we were surrounded by all sorts of EVs that were plugging into this big energy system and uh powering various other EVs, powering the home, all sorts of stuff. And I I thought it was quite cool because we were hearing different conversations and one person was like, “Lucid gravity, uh, where is that made?” and and the other person was like, “No, they’re they’re made here. They’re made here in California.” Um Arizona, Arizona. California company made in Arizona. But um the the person was asking didn’t realize and they were excited to hear that these were made in America. Right. So you’ll have to let us know how you feel, but I I think a lot of people want to see the success of American companies, of American automakers, um like Lucid that that we want them to succeed. I mean the Lucid Gravity is an amazing vehicle. I want to see them bring out cheaper vehicles. Um and we we want to see these companies succeed. So uh we we can’t fight the future. We we need to ensure their success. So that and I think that’s another thing that not necessarily a direct result already because of the uh tax credit but just in general like I think the companies manufacturers have been working toward having cheaper EVs. We were in Kentucky when Ford announced the $30,000 2027 truck with different assembly process and all that other stuff but $30,000 EV truck. But since then, like we’ve seen uh as we mentioned Tesla come out with their like decontented uh 3 and Y for around 5,000 less. We’ve seen the model uh not the model the uh the Chevy Bolt relaunch uh at 30 just under 30,000 the uh Nissan Leaf launch. Uh we actually were Liv got invited to do the first drive for that but we were in Munich. Um but that’s just over 30,000 and there may be a a cheaper under 30,000 uh once they get into full production. So it’s like it’s really great to see this emphasis on cost reduction. Uh even the Mache like it’s now like 36,000 plus some of the great deals. It’s pretty darn good. uh the the Equinox, we have an Equinox, great deals on that. So, it’s I think it’s exciting to see these uh this emphasis on lowerc cost EVs and I think that’s where the industry needed to go anyways. And I I don’t know like I you know, this is like inserting personal opinion into this, but I sort of feel like some of the manufacturers use the $7,500 tax credit as a crutch. So they were like, “Okay, we need to make the car about 40,000. We could work our butts off and reduce the cost so that it is 40,000, but people are going to get a 47 uh I mean uh $7,500 tax credit. So if we make it 45,000, we’re actually doing really well.” And and I don’t you know I don’t think it was like a deliberate decision like that but I think it just makes it sort of like the way that they were calculating whether they were price competitive or not was adding in that tax credit that they figured most people would be getting and they used it as a bit of a crutch. Now it’s like dude you got to you got to compete with the other $30,000 vehicles period and you got to be profitable. So there there’s a huge pressure. We know Chevy, GM, others are losing money on their EV side of things, but we also know they’re investing billions and billions of dollars. So that’s where the the losses are coming. But hopefully those investments will pay off. But part of it is is like they need to sell a ton of them. And it’s really hard to sell a ton of $80,000 trucks, but a $30,000 truck, I think it’s way easier to do that. So, not directly necessarily related to the the the tax credit, but I think it’s where the EV industry is going, and I’m pretty excited by that. Yeah. I mean, uh, this will all be yet, uh, yet to be seen, right? We’ll see how automakers fully respond. Uh, I was reading something about, uh, GM buying up all their inventory so then they could lease out their vehicles so they’d gotten the tax credit. Uh, they had walked that back. Yeah. Um but so that was a strategy right that that didn’t play out but uh we know that automakers and dealers uh tunnel tunnel tunnel tunnel tunnel you have to do that when you’re in a tunnel just so you know or you can have your own tunnel song it’s fine but so uh automakers and dealers have had to do different things to um sell us cars they want to sell vehicles to us they want to make money and you guys probably know EVs are just really fun in in my opinion they are more fun than a lot of gas vehicles. They are lovely to drive. They’re great to own. They’re you know low maintenance, all that good stuff. So like uh we know that they’re really really fun and um automakers want to sell us these cars. So they are going to have to figure out ways to do this and now they don’t have the $7,500 uh little assistance to do it. So we’ll see what happens. Big assistance. Uh big assistance. Um, but I do also want to mention, by the way, the Kia EV3, the Kia EV3, we uh are told that that’s coming to America. I really hope that’s the case because I really, really like that. Uh, we do have a video with it. We filmed with it in Munich at the auto show. So, um, maybe the landscape is going to be many more affordable vehicles and and that’s how things are going to survive. Maybe. We don’t know, but we will keep touching base along the way and and see how this all falls out because I don’t think any of us can truly predict what’s going to happen. Um, but I know that EVs are awesome. So, they’re not going anywhere. Yeah. Right now, it’s uh like all the discussions that we’ve had in the past month, I think all of them at some point included the tax credits and what’s going to happen. Uh, it’s going to be a rough period. I’m looking forward to, you know, next year at National Drive Electric Month where we’re just talking about how great the EVs are that we drive and how much fun they are to drive and uh how much money we save on fuel, you know, whatever, you know, just just like the experience of having a EV and maybe we can move past this and maybe we can talk about next year like, you know, the $30,000 Leaf or Bolt that somebody’s driving and how it suits their needs and is just a great car and the best car they ever had. You know, because we we see that all the time like there’s a lot of people that are like this is the best car I ever had, whether it’s the Maky, the Model Y, Ionic 5, whatever. Like a lot of people like are so in love with their EV, but there’s so much political stuff around it and talking about tax credits and mandates and all that other stuff. Let’s just talk about like it’s a great car. Yeah. And by the way, is that San Francisco and the um Yes, the Horizon line ahead of us. We got to wrap it up a little bit so that I can we got to go charge the car. Yeah, we’re going to go check out the uh Electrify America flagship in San Francisco. We did a video there a year or two ago. So, we’re going to see how it is now and uh yeah, how busy it is, what it’s like, all of that good stuff. But, um, yeah, it’s we’re going to we’re going to just see if it’s, you know, uh, how well it’s been maintained. Do we, you know, are there any chargers down? Uh, Teslas, don’t do that. Oh, that’s I was trying to think what I was going to say. Uh, and by the way, what I wanted to say was as all of this rolls out, this is not a competition. Uh, for us, us as consumers, we want options. We want different vehicles. We all need different things, right? We don’t need the same vehicle. We don’t need the same type of car. These are vehicles that take us to where we want to go, right? It’s not necessarily about the car. It’s about the journey, right? And this is a this is a tool for your life. And it’s something that can give you freedom. Mobility, mobility is freedom. And as someone who has had their mobility taken away at various points of time, I I really truly believe that mobility is freedom. So, we want all EVs to succeed. This is not a competition between companies. Uh, and we need that variet uh variety. So, if there’s a vehicle that you love, we celebrate you. If there’s a vehicle someone else loves and it’s not the same, we celebrate that, too. Um, so shall we head out now? Yeah, I think so. Now that we’re in some traffic again, we’re almost to the Bay Bridge. It would have been nice to finish on the Bay Bridge, but maybe we will. Oh, we could always pause and finish on the Bay Bridge. So, now we’re going to wrap up as we’re getting basically close to the Oak San Francisco Oakland Bay Bridge. I love this crossing going this direction going into the city. Um, but as Liv was saying, we’re going to or we were saying, we’re going to wrap up this video. Uh, I was thinking about like doing Oh, we got to open up our toll thing. Oh, yeah. Uh, I’m going to probably do some more in-depth videos, periodic updates, like how sales are going, look at individual companies and like how are they doing, like how is Lucid doing, how is Tesla doing, how is, uh, you know, whoever, and just sort of like let’s see what their lineup looks like, how their sales are doing, just, you know, do some deep dives if you guys are interested in that. If not, I’ll just do it and delete it. I’m I’m interested in it. But we’re also going to keep track of the market. Um, our leases are up next year. Yeah. Yeah. So, realistically, we’re going to be back on the market for a vehicle. Um, and maybe it’s going to be a used vehicle, maybe it’s going to be a lease, whatever. If you don’t know our story with our Equinox CV, we literally purchased the cheapest lease that we could get, which was 2 years for 5,000. Yep. 5,000. Yeah. Taxes, registration included. So, um, we’re very incentivized by affordability. So, if you are too, that’s something on our horizon that we’re going to be looking into, both for ourselves and for you guys because some of you haven’t made the switch to electric yet. Um, but it’s an awesome one as we have a a pretty 911 that’s actually very loud. You totally can’t hear it, but we can. Yeah, it’s pretty trippy how loud it is. We were actually um in the Bay Area not that long ago, and we have a road trip video to edit still. We came up to Electrify Expo uh Alama technically in the Bay Area and we had a super awesome Ford EV meetup out here with a huge ton of Ford EVs. Uh but so we have a road trip video that’ll be coming out all the way from San Diego to San Francisco. As you know, we love driving electric. We love driving electric all over the country and it’s been really awesome to check out the east coast and over here on the west coast and and really see how EVs are doing and the enthusiasm even though things are not looking great uh in in a lot of ways in the in the tax and the the support sort of ways everyone that we talked to is still very enthusiastic about EVs and we see that enthusiasm all around the country. So on that note now we have the most amazing views of which bridge? San Francisco Oakland Bay Bridge and you can see the tip of the Golden Gate while you also see a crane. Let me go over once. It’s It’s really really beautiful. Um so let us know how Eevees are doing where you are. Obviously we can’t check out everywhere. We would love to though. So share your knowledge down below. Share with everyone what it’s like in your area. Like are people still excited? I’m sure you’ve seen a lot of sales previously uh the previous quarter and and now it’s it’s going to tone down. But thank you so much for joining us for this video where we chatted with you as we drove across the bay to the bay to the city. Yeah. Is that what we say? I I it’s been so long since I’ve done this part of the drive. I mean trying to see like what we can see and I’m like gosh it’s it’s been a while. I mean we did it last month but it was at night for a concert. Yeah. Oh, and we have a beautiful foggy view of this bridge actually. Right now, isn’t this gorgeous? I love I love bridges and I love how San Francisco has amazing bridges. So, this is a perfect time to say thank you so much for joining us for this video. A huge thank you to our patrons whose names are scrolling across the screen right now. your support as well as you, our YouTube members, helps us do things like rent this awesome Maki so that we can test it out with cool vehicle X uh VX systems and and drive around San Francisco and check out the EV scene and and make this content. Let us know what you thought about this video and leave all your thoughts down below because this is a conversation and we want to have that conversation with you. And as we’re about to go through the tunnel, so I won’t subject you to the tunnel song again. On that note, just remember that whatever you drive, whether it’s through a tunnel or not, on a bridge, on a bridge or not, over the water, under the water, this doesn’t go under the water. Did it not tunnel tunnel? Sorry. There we go. Oh, no. Actually, wait. Look at that view. Okay, we’re just Look at that view. If you guys have watched this far, then maybe you’re still watching. In which case, leave us a bridge emoji because um we’re on a bridge. And so on that note, just remember that whatever you drive, whether it’s on a bridge or not, whether you got the tax uh incentive or not, enjoy the ride because you know you will. Bye.
The EV tax credit is gone, but the electric future is still bright! Join us, for a scenic drive to San Francisco in a Ford Mustang Mach-E as we discuss the recent expiration of the federal EV tax credit and what it means for the electric vehicle industry.
In this episode, we’ll cover:
– Our thoughts on the end of the EV tax credit and its impact on the market.
– The latest news and updates from National Drive Electric Month.
– Exciting new electric vehicle models and announcements.
– The future of EV technology, including V2X and bidirectional charging.
– We also share our experiences from our cross-country travels and our visit to the Munich Auto Show.
What are your thoughts on the EV tax credit ending? Let us know in the comments below!
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