SUMMARY

• EVs from major automakers lose $7,500 tax credit
• Tesla Model 3 retains half the credits; other models keep full credit
• New rules aim to reduce reliance on China for EV batteries

Hey there, folks! Some news has just dropped from the U.S. Treasury, and it's a bummer for a few electric vehicle (EV) enthusiasts. Starting Tuesday, Volkswagen, BMW, Nissan, Rivian, Hyundai, and Volvo EVs are going to lose access to the sweet $7,500 tax credit, all because of new battery sourcing rules. On the bright side, the Tesla Model 3 Standard Range Rear Wheel Drive gets to keep half the credits, while other Tesla models stay in the full $7,500 club.

The unlucky vehicles include the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf, Rivian R1S and R1T, and Volkswagen ID.4, as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and Volvo S60 PHEV. These new rules are all about cutting down on the U.S.' reliance on China for EV battery supply chains, part of President Joe Biden's master plan to make half of all new U.S. vehicle sales by 2030 either EVs or PHEVs.

Hyundai and VW are still keeping their cool, though. Hyundai says they're committed to their long-range EV plans and will "accelerate the transition to electrification" using the Inflation Reduction Act. VW's "fairly optimistic" that the ID.4 SUV will qualify for the tax credit once they receive documentation from a supplier.

On the flip side, General Motors Co. electric Chevrolet Bolt and Bolt EUV get the full $7,500 tax credit, and Treasury confirmed Ford and Chrysler's EV and PHEV models would have their tax credits slashed to $3,750 on April 18.

These changes were announced last month and made mandatory by Congress in August, as part of the $430 billion Inflation Reduction Act. So, there you have it - some win, some lose, but the EV revolution continues.

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