The EV Landscape Takes a Hit

If you're passionate about electric vehicles (EVs), then President Donald Trump's recent legislation, the One Big Beautiful Bill (OBBB), is not what you were hoping for. Signed into law just last weekend, this bill slashes countless federal incentives that encouraged the adoption of eco-friendly vehicles, plunging the American auto industry into uncertainty during a crucial transition.

Consumer Sentiment Remains Steadfast

Despite the turmoil, surveys reveal that nearly 25% of U.S. vehicle shoppers are still 'very likely' to consider an EV, with an additional 35% 'somewhat likely,' according to JD Power. WIRED reached out to experts for advice on navigating this challenging landscape for would-be EV buyers.

Act Fast: The Tax Credit Is Disappearing!

Brace yourself: the new bill has eliminated the generous electric vehicle tax credit of up to $7,500, which was meant to last until 2032 but will now end by September 30! This incentive helped make vehicles like the $43,000 Tesla Model 3 and the $37,000 Chevy Equinox EV more attainable for everyday buyers.

However, all hope is not lost! Some electric and plug-in hybrid models may still qualify for the credit before the cut-off. Plus, used EV buyers can snag a $4,000 credit. Edmunds' consumer insights analyst, Joseph Yoon, advises potential buyers to act quickly!

Eligibility Woes: Know Before You Go

But hold your horses! Not all vehicles or buyers will be eligible for these credits. Factors such as the vehicle's price, assembly location, and battery composition play a role. Additionally, income caps are set: $300,000 for married couples, $225,000 for heads of households, and $150,000 for everyone else.

Wait and Watch for Competitive Pricing

Interestingly, despite the impending tax credit expiry, car manufacturers might offer tempting showroom discounts. Following recent tariffs on vehicles and parts, many automakers, like Ford and Stellantis, cut prices dramatically. Now, with increased attention on EVs from GOP lawmakers, a surge in interest could lead to further price reductions in the coming months.

Charging Incentives: A Breath of Fresh Air (For Now)

In a disappointing turn, the bill also scrapped tax credits for installing home EV charging stations, although this credit won't vanish until June 2026. It's aimed primarily at low-income and rural residents, covering up to 30% of installation costs, capped at $1,000.

The Broader Impact on the EV Ecosystem

Despite fears, the OBBB does not eliminate Biden-era tax credits for manufacturers, a sign of relief in terms of keeping EV prices attractive. Yet, the new law imposes stricter requirements on domestic production, potentially complicating life for some in the EV supply chain.

Additionally, penalties for failing to meet Corporate Average Fuel Economy standards have been lifted, removing a crucial motivating factor for automakers to pivot towards greener options.

State-Level Support: A Silver Lining?

While federal incentives are dwindling, state governments are stepping up. Eleven states, including California and New York, are exploring innovative ways to boost cleaner vehicles. In light of the new OBBB, California's Governor Gavin Newsom is actively working on policies that support zero-emission vehicles, even as the state plans to ban the sale of new gas-powered cars by 2035.

Stay Hopeful: The Future of EVs Is Bright

Industry insiders remain optimistic that despite setbacks in the U.S., electric vehicles are here to stay. Countries like China are producing high-quality, competitively priced EVs, promising to meet rising global demand. Edmunds' Yoon predicts that while short-term pain is likely due to the OBBB, it should turn out to be just a speed bump on the road to a brighter automotive future.