2 Problems Rivian, Lucid, and Tesla Will Face After the EV Tax Credit Expiration
Earlier this year, electric car stocks across the board saw sharp declines after the U.S. government revealed that several critical EV subsidies would be eliminated. Since then, however, most of those initial losses have been erased. Yet the effect of these subsidies being eliminated remains.
If you have money invested in Lucid Group (NASDAQ: LCID), Rivian (NASDAQ: RIVN), or (NASDAQ: TSLA), be sure to understand the two problems below that all three of these automakers will face very soon.
Governments around the world have been offering incentives that lower the price of EVs for customers since the 1990s. In 2010, the U.S. began offering consumers a tax credit that ranged between $2,500 and $7,500 when buying a new or used electric vehicle. There were rules related to which cars qualified and who exactly could receive the credit. But all in all, these tax credits deployed billions of dollars to lower the upfront cost of buying an electric vehicle.
Source Fool.com
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