General Motors may have a slight problem in the near future regarding its affordable 2017 Chevrolet Bolt EV. The reason the Bolt EV will be so affordable for so many is thanks to the United States’ federal tax credits amounting in $7,500, which drops the vehicle’s price tag to $29,995.
However, when this program was introduced, there was always a catch. After an automaker sells 200,000 electric vehicles, the tax credits will expire. That means the 2017 Bolt EV suddenly becomes $37,495, its actual MSRP.
The trouble comes with General Motors current estimations of how many PHEVs and EVs it has sold. According to The Detroit News, GM estimates around 110,000 vehicles (Chevrolet Volts, Spark EVs and Cadillac ELRs) have already qualified for the tax credits, which means 90,000 units remain for potential Chevrolet Bolt EV owners. At the same time, Bolt EV buyers won’t be the only ones taking advantage of the credits since the 2017 Chevrolet Volt will be on sale alongside it.
LG Chem, which is supplying many components for the Bolt EV, estimates 30,000 units will be sold in the vehicle’s first year on sale. If LG is right, that means there will be three years for GM to lobby for additional tax credits, assuming Bolt EV sales don’t exceed that figure.