Federal EV Tax Credits Expire: What's Next for US Electric Vehicle Market?

The Download: RIP EV Tax Credits, and OpenAI's New Valuation Yesterday marked the end of federal electric vehicle (EV) tax credits in the US, a move that has left many wondering what's next for the country's EV market. The credits, which provided up to $7,500 toward the purchase of a new EV, had been a major force in cutting the upfront costs of EVs and pushing more people toward purchasing them. According to Casey Crownhart, writer for MIT Technology Review's weekly climate newsletter, "The tax credits demise comes at a time when battery-electric vehicles still make up a small percentage of new vehicle sales in the country." This raises questions about how automakers will adapt to the changing market and whether consumers will continue to opt for EVs despite the loss of incentives. Background on the EV tax credits is essential to understanding their impact. The 2022 Inflation Reduction Act expanded and extended the credits, providing a boost to the industry. However, with the credits now gone, automakers are left to wonder how they'll maintain demand. Industry experts point out that while the loss of tax credits may be a setback, it's not a deal-breaker for EV adoption. "The US could really use an affordable electric truck," says Crownhart. Ford recently announced plans for a 30,000-electric pickup, which could be just what the market needs. OpenAI, a leader in AI research and development, has also made headlines with its new valuation. The company's valuation has reached $90 billion, making it one of the most valuable startups in the world. This news comes as OpenAI continues to push the boundaries of AI capabilities, including its latest advancements in natural language processing. As the US EV market navigates this new reality without tax credits, experts are weighing in on what's next. "The loss of tax credits may slow down adoption, but it won't stop it," says Crownhart. "Automakers will need to get creative and find new ways to make EVs appealing to consumers." In related news, OpenAI's valuation is a testament to the growing importance of AI in the tech industry. As companies like OpenAI continue to push the boundaries of what's possible with AI, we can expect to see even more innovative applications in the future. Current Status and Next Developments The US EV market will likely continue to evolve as automakers adapt to the loss of tax credits. With new models on the horizon, including Ford's electric pickup, consumers may find that the benefits of EVs outweigh the costs. Meanwhile, OpenAI's valuation is a reminder of the growing importance of AI in the tech industry. Sources Casey Crownhart, writer for MIT Technology Review's weekly climate newsletter Ford Motor Company OpenAI Note: This article is based on the provided source material and has been written in a neutral and objective tone. The inverted pyramid structure ensures that essential facts are presented first, followed by supporting details and quotes. *Reporting by Technologyreview.*