Study Examines Consumers’ Thoughts On U.S. Federal EV Tax Credit
GM’s Mary Barra and Tesla’s Elon Musk are hopeful for an expansion of the U.S. federal EV tax credit, and a new survey shows strong consumer support.
It comes as no surprise that many people support the federal EV tax credit, but now we have some hard data, compliments of Autolist. The publication reached out to us to share information from its recent study. A March 2018 survey of 1,154 vehicle owners concluded that:
- 74% of consumers say the tax credit would affect their decision to buy an EV
- One-third of consumers think the 200,000 vehicle cap on the tax credit should be lifted altogether
- 63% of consumers say the $7,500 credit is important to support EV adoption in the U.S.
The following chart shows the overall breakdown of people’s feelings about the $7,500 tax incentive:
According to Autolist, earlier research found the high price of electric cars to be a major concern for buyers. In fact, it was second only to range in a prior study. The publication also reminds us that automakers like GM and Tesla will be at a severe disadvantage to most other automakers. The way the system is currently set up, it will actually punish early adopters.
When GM, Tesla, and even Nissan no longer have access to the tax credit, most other automakers that have been slower to move to EVs (Jaguar, Audi, Volvo, Porsche, Volkswagen, BMW, Hyundai, and Kia) will benefit from having new electric vehicles enter the market with plenty of available tax credits.
According to Autolist, its previous studies related to Tesla have found that:
- consumers are unwilling to wait for delays in Tesla Model 3 production, something the company is currently struggling with.
- most consumers believe Tesla is a profitable company when in fact it is deeply unprofitable; the electric car maker has posted a profit in just two of its last 35 quarters.
- Tesla vehicles sell faster than other American car brands and that Teslas depreciate slower than their segment rivals. Even the Model 3 is projected to depreciate at a slower pace than its peers.
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