US EV demand to drop 27% without tax credit


Removing the credit would have little impact on petrol demand because EVs still account for a small percentage of new car sales. — Bloomberg

Washington: Eliminating the US electric vehicle (EV) tax credit would dent future EV demand – perhaps by more than a fourth – while providing a trivial boost to petrol consumption, economists estimate.

US auto stocks fell last week on reports that President-elect Donald Trump may try to kill the US$7,500 credit, which was part of the 2022 Inflation Reduction Act.

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