The EV War is HERE! Michigan Is Now Punishing Electric Car Owners
The US state of Michigan has just made it more expensive to own an electric car. Here’s what has happened. Hello my friends, welcome to the channel. I’m Sam Evans. You’re watching the Electric Viking. And it feels like um this year the United States has been very disparaging of electric cars. Not everyone of course, but a lot of the people that control the halls of power. Michigan is certainly no exception. They’ve just made it costlier to own an EV. Going green in Michigan will cost you more, while internal combustion engine powered vehicles are not impacted at all. Between tariffs, inflation, and the elimination of the clean vehicle tax credit of $75,000 going electric in Michigan is becoming drastically more expensive. Michigan is now piling on with additional fees to help pay for road funding. Well, at least that’s what they say. as a massive tax on marijuana wasn’t enough. As per car scoops.com, the details convoluted, complex, but apparently Michigan decided to eliminate the sales tax on gas. So, in other words, they’re encouraging gas cars and they’re introducing an increased fuel tax. The increase is the same as the one that was removed. So, they essentially cancel each other out, which makes no sense at all. Anyhow, more money is going to go towards repairing Michigan roads which probably need it. However, there are other issues. The publication noted state law requires an increase of $5 to the reg EV registration fee and an increase of $2.50 to a plug-in hybrid vehicle registration per 1% raise of the state’s gas tax. But that’s just the start. Drivers of traditional gas-powered vehicles pay the same. Eco-friendly vehicles get well hammered by higher fees. Car scoop says that this means registering an EV will now cost Michigan drivers an extra $100 annually, which brings the total extra fee to $260 to own an EV every year in Michigan. So that’s about nearly $400 Australian of extra extra charges to own an EV in Michigan. That’s on top of regular registration costs as well. The fee for electric trucks will increase as well to $360. Michigan, it appears, well, appears as though they don’t want electric cars to um take a lot of market share. Michigan Energy Innovation Business Council policy principal Sophia Schustster told the publication, “By raising EV fees to the highest in the country, the state is discouraging adoption and signaling to automakers that Michigan is not serious about leading in transportation electrification.” Now, I should point out I’m not sure she’s right about that. I know that in New Jersey there’s also an also attacks on electric cars, very similar to Michigan. The organization noted that before fees were increased, Michigan EV drivers were already paying around $20 more in state taxes than people with internal combustion engine powered vehicles. They also pointed out EVs are typically driven 4,000 mi less annually than ICE vehicles. So owners are paying more for roads and they use the roads less often. Help well could come. Apparently there’s a proposal to significantly lower fees for plug-in hybrids and EVs. proposal though and who knows if those if this proposal will actually be adopted pretty unlikely considering the current political climate in Michigan and obviously you know General Motors and Ford they don’t make any money selling electric cars in fact they write off losses every year to the tune of sometimes billions of dollars and they do make money selling internal combustion cars and they admit to that fact in fact at GM’s third quarter earnings report for 2025 General Motor said well actually we’re going to put $4 billion into internal combustion because that’s where we’re making money and we are losing money on electric cars. So, Michigan, the home of well, Detroit’s automotive industry, clearly believes that they should make internal combustion cars for as long as they possibly can. This does mean they’re going to face some challenges because inevitably disruption will happen. Guys, what do you think about these new taxes in Michigan on EVs? How do you feel about this? I mean, this is not just a once- off fee. This is a fee you’ve got to pay every single year. Thanks for watching, guys. I use Powershop, my electricity, to charge my EV for free between 12 and 2:00 during the day. I’ll put a link in the description. If you sign up with them, you get $170 discount to sign up. Also, my solar and batteries. I’ve got a 50 kWh battery here, and I’ve got a big solar array. So, I pay $0 for electricity. That’s including charging my electric car. Reync Solar is the company that I used. I’ll put a link to them in the description below. The EV tax credit loss will cost General Motors $1.6 billion US. It says YouTube’s new algorithm means that you’re often not getting all of our videos in your feed. There’s 7,500. I’m pretty sure you’re probably not seeing a lot of them. In the description, there is a link to our newsletter. Click on that and you can get an update every day of all the latest news in the electric car industry. Hello my friends, welcome to the channel. I’m Sam Evans. You’re watching the Electric Viking. General Motors faces a major financial hit. It’s having to realign its EV production to match what it says is cooling demand in the US and then shrinking incentives. Interestingly, GM is saying this before it’s even happened because General Motor has had its best sales in history for its EVs over the last 3 months, best ever. But it’s predicting that’s about to drastically change, as is the CEO of Ford, who said EV sales will fall by around 50%. The removal of the federal electric vehicle tax credit at the end of September will cost General Motors around $1.6 6 billion in the next quarter. A direct result of the adjustments it made or it must make to its electric vehicle strategy. That’s a lot of money. This follows Ford’s recent announcement that it will write down around 400 million in manufacturing assets and reduce $1.5 billion in EV related spending, scaling back projects including a three row 7 seat electric SUV and a full-size electric pickup. In other words, these automakers, General Motors and Ford, are both saying because of the incentives being removed, not just EV incentives for customers, but also EV incentives for manufacturers, they are going to reduce their spending on EVs by billions of dollars. In other words, put themselves in a dangerous position of being disrupted in the future, which to be honest, they’re already being disrupted. Now, look at China. In his third quarter report, General Motors confirmed that his board of directors had approved $1.6 $6 billion in charges tied to what it described as the strategic realignment of our EV capacity and manufacturing footprint to consumer demand. The company specified that 1.2 billion amount relates to adjustments in its EV capacity while the remaining 400 million stems primarily from contract cancellation fees and commercial settlements associated with EV related investments which will have a cash impact. Famous economist Paul Krugman says the Trump administration’s decision um goes against sense. It is putting the US behind China. He believes that China has already taken the US when it comes to economic might and that that will never ever change again. It’s going to put these decisions from the Trump administration to essentially cancel any kind of subsidies for renewable energy or electric cars will put the US back behind China forever. General Motors also noted that it is reasonably possible that we will recognize additional future material cash and non-cash charges that may adversely affect our results on operations and cash flows. In other words, these numbers could actually get worse. [Music]
The EV War is HERE! Michigan Is Now Punishing Electric Car Owners
Michigan has sparked controversy by introducing new fees targeting electric vehicle owners, effectively penalizing them for driving cleaner cars. Critics argue the policy undermines EV adoption and favors the oil industry, marking a new front in America’s growing “EV war.”
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