- General
- January 3, 2019
- 3 minutes read
GM Reportedly Hit 200,000 EV Sales in 2018 With Tax-Credit Phase-out Inbound
image : General Motors A new Reuters piece states that General Motors has inked over 200,000 electric vehicle sales up…
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| image : General Motors |
A new Reuters piece states that General Motors has inked over 200,000 electric vehicle sales up until now, triggering the phase-out of a tax credit available for auto companies before a 200,000 sales figure is reached.
The $7,500 tax credit which counts as a key incentive for EV buyers is now expected to drop to $3,750 April this year then to $1,875 by October followed by a complete phase-out by April 2020, Reuters reports.
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| image : General Motors |
General Motors and Tesla, two leaders in the U.S. EV market have both lobbied for a lift or extension of the tax credit which encourage sales of its vehicles, The latter’s tax credit has already reduced to $3,750 leading it to cut prices of its vehicles. General Motors also said it’s doubling resources allocated to development of electric and autonomous vehicles this November as part of a restructuring that indicates more efforts being put into this space.
According to a November Congressional report, the cost of the electric vehicle tax credit between the 2018 and 2022 fiscal years is estimated at $7.5 billion.
