mobile-menu-icon
GM Authority

Eliminating EV Tax Credit Will Mostly Affect GM, Tesla Buyers

As we’ve reported since the election, President Donald Trump’s second term could mean the end of the federal EV tax credit. With Republicans in control of both the Executive and Legislative branches of the federal government, the $7,500 tax credit that automakers count on to make EVs more affordable for consumers could really go away. With an updated list of vehicles eligible for the tax credit in 2025, getting rid of it would mostly affect GM and Tesla buyers.

GM EV models parked on grass.

While the federal EV tax credit is still in effect, here are all of the vehicles that still qualify as of January 1st, 2025. A few models that lost eligibility this year include the Chevy Bolt EV/EUV, Nissan Leaf, Volkswagen ID.4, Rivian R1S and R1T, and every PHEV but one. Meanwhile, the Jeep Wagoneer S, Kia EV6 and EV9, and the Tesla Cybertruck are new to the list this year.

2025 U.S. EV Tax Credit - Eligible Vehicles
Model Model Year Vehicle Type Max Credit MSRP Limit
Acura ZDX 2024-2025 BEV $7,500 $80,000
Cadillac Lyriq 2024-2025 BEV $7,500 $80,000
Cadillac Optiq 2025 BEV $7,500 $80,000
Chevy Blazer EV 2024-2025 BEV $7,500 $80,000
Chevy Equinox EV 2024-2025 BEV $7,500 $80,000
Chevy Silverado EV LT 2025 BEV $7,500 $80,000
Chrysler Pacifica PHEV 2024-2025 PHEV $7,500 $80,000
Ford F-150 Lightning Flash 2024-2025 BEV $7,500 $80,000
Ford F-150 Lightning XLT/Lariat 2023-2025 BEV $7,500 $80,000
Honda Prologue 2024-2025 BEV $7,500 $80,000
Jeep Wagoneer S 2025 BEV $7,500 $80,000
Kia EV6 2025 BEV $7,500 $80,000
Kia EV9 2026 BEV $7,500 $80,000
Tesla Cybertruck Single Motor/Dual Motor 2025 BEV $7,500 $80,000
Tesla Model 3 2025 BEV $7,500 $55,000
Tesla Model X All-Wheel Drive 2025 BEV $7,500 $80,000
Tesla Model Y 2025 BEV $7,500 $80,000

A glance down the list reveals that two automakers will be disproportionately affected by the potential elimination of the federal EV tax credit: GM and Tesla. Five of the 17 entries on the list are GM models (seven if you count the GM-built Honda Prologue and Acura ZDX), and four are Tesla models. Ford, Stellantis, Honda, and Kia each have two entries.

Cadillac Lyriq rear three quarter angle.

If the federal EV tax credit does go away, it will be interesting to see how it impacts sales. For more affordable models like the Chevy Equinox EV, it could make or break whether a potential buyer can afford one. For a pricier model like the Cadillac Lyriq, a more well-heeled buyer might not care as much about the $7,500 discount since it’s a smaller percentage of the vehicle’s price.

As for Tesla, many of the brand’s models are already competitively priced. Its best-sellers, the Model 3 and Model Y, both start in the mid-$40k range. Whether Tesla is a premium brand is debatable, but those are considerably lower starting prices than EV rivals from mainstream luxury brands like BMW and Mercedes-Benz. Tesla’s position as America’s best-selling EV brand is likely secure, but the elimination of the federal EV tax credit could slow its sales.

Tesla Model Y driving.

While the future of the federal EV tax credit is still uncertain, it might be wise to hustle if you’re considering buying an EV on the above list in the near future.

George is an automotive journalist with soft spots for classic GM muscle cars, Corvettes, and Geo.

Subscribe to GM Authority

For around-the-clock GM news coverage

We'll send you one email per day with the latest GM news. It's totally free.

Comments

  1. How about not buying one at all?

    Reply
    1. OK, go ahead.

      Reply
    2. Reply
  2. We are about to see if the Trump administration likes American jobs more than it hates electric cars. The reason so many auto manufacturers are rushing to build US battery plants is to qualify for the $7500 tax credit. If the credit goes away, it is far cheaper to make the batteries in China or an another Asian country, even with tariffs.

    Reply
    1. Electric cars help China in a few ways, but the biggest are that China runs off a lot of cheap coal, making their EVs coal powered. Another is that they own most of the resources to make these EV batteries.

      The US has cheap oil and natural gas available if we get rid of the red tape.

      Reply
      1. Get rid of the red tape? How about get rid of the corporate greed.

        Reply
        1. Agreed, especially if we are starting from the top (Blackrock, Vanguard, State Street) down, I’m with you.

          Reply
    2. What!? The rush to build EV battery plants ended long ago. Manufacturers have been scaling back and/or outright cancelling battery plants since mid-to-late 2023 due to lack of EV sales and growing, unsold EV inventory. Hence, all the drastic EV price cuts, reduced EV production numbers, and idling of EV plants over the like last 18 months.

      Reply
    3. Everything Trump touches dies.

      Reply
      1. Still crying over the election results that ousted you morons ?

        Reply
    4. Agreed. GM’s EV batteries are made in the US and shipped to Canada and Mexico to build some of their EVs that are sold in the US. Vehicles like the Lyriq, Silverado EV, Hummer EV, Sierra EV, and Escalade IQ are built in the US. The only people this will hurt are US employees. The additional tax revenue from the extra jobs, sales tax, etc. makes up for the $7500 tax credit. Note it’s a tax credit. You must already owe more than $7500 in taxes to collect the full amount.

      Reply
      1. Yep. But its ok to keep giving big oil tax returns for each well they drill and oh the militiary cost of keeping ships in the MEast at how many tens of billions a year to stablize the shipping lanes that has how much oil flowing when we are suppose to be self sufficient if you believe it…sure. Temporary tax credits are a good thing and as you said one only gets it if they paid and owed taxes unlike other credits. And they can’t roll over year to year unlike others.

        Reply
    5. Do some easy research and discover the huge Federal Grants (non-repayable) Biden handed out to GM for building their U.S. “battery plants”. More Corporate Welfare that winds up costing all of us mere mortals. That $7,500.00 Tax Credit was pure, unadulterated SOCIALISM of the worst kind. And now, Panasonic has almost completed their incredibly huge battery plant in DeSoto, Kansas so it seems they won’t be building a lot of batteries for U.S. use in China or another Asian Country..

      Reply
    6. More so than the consumer based $7500 tax credits are the other infrastructure and IRA adv mfg tax credits related to EVs component manufacturing.

      Reply
  3. All this started with the success of Tesla. Jealousy overtook GM and others not realizing they couldn’t compete with the genius of Elon Musk. This Trillionaire could care less. He made money and if its over so what. He just thinks the talking head brain trust at GM are a bunch of Dolts.

    Reply
    1. Google, “how much money Elon Musk has received from the federal government.”
      It is in the billions. Why does the world’s supposedly, “richest man” need loans, grants, tax abatements, Etc. From the federal government. The answer is, because he can.
      This is the man that Trump has chosen to curtail wasteful government spending.
      Sounds like the fox guarding the hen house.
      It will be interesting to see who is taking advantage of who. Trump will eventually throw Elon Musk under the bus.

      Reply
      1. The carbon credit system is complete BS and he played the game and won. Not much to say.

        Reply
      2. John…. Space X (Elon) received $2.6B to create a craft capable of supplying the international space station… Boeing received $4.3B…

        Who was more productive?

        Reply
        1. G-day Mate!

          Reply
  4. Screw you ah ev buyers.why should I have to use my tax money to buy your crap buy it yourself is so damn good this is ridiculous whole thing has been ridiculous since they instituted this years ago EVS are Dead on arrival their pieces of crap. And by the way there is no climate crisis get over it damn

    Reply
    1. You are Another sad misinformed low-information voter that was soaked in a brine of lies and propaganda that doesn’t seem to understand how tax credits work.

      You crying about the massive tax cuts for the wealthy that the felon passed his first term that raised the debt and deficit more than any other administration in the past?

      The EV tax credits are tax cuts for the middle class that actually help create jobs and improve US competitiveness for new generations.

      Reply

Leave a comment

Cancel