Latest Developments in the EV Market

ORAC Blogs - Latest Developments in EV Market

Buying an electric vehicle (EV) in the USA is expected to get easier next year, with the likes of Tesla and Lucid announcing price cuts and Rivian rebounding from its production woes. Vitesco Technologies, a leading supplier of powertrain technologies, is also expected to benefit from the growing EV market.

Tesla recently announced a price cut of $5,000 for its Model 3 sedan, bringing the starting price down to $39,990. Lucid Motors also announced a price cut of $10,000 for its Lucid Air sedan, bringing the starting price down to $69,900. Rivian, which had faced production delays due to the pandemic, has now resumed production and is expected to deliver its first electric pickup truck this year.

In addition to the price cuts from Tesla and Lucid and the rebound of Rivian, there are also tax benefits for EV buyers in the United States. The Internal Revenue Service (IRS) offers a federal tax credit of up to $7,500 for the purchase of a new EV. The credit amount varies depending on the battery capacity of the vehicle and begins to phase out once a manufacturer has sold 200,000 qualifying vehicles in the US. Tesla and General Motors have already reached this threshold, so their vehicles are no longer eligible for the tax credit. However, other manufacturers such as Ford, Chevrolet, and Nissan still offer the full tax credit on some of their models.

Vitesco Technologies is well-positioned to benefit from these developments in the EV market. The company’s innovative powertrain technologies are used in EVs made by several major automakers and are expected to see increased demand as more consumers switch to electric vehicles. The company’s share price has been on an upward trend since the beginning of this year and has risen by over 50% year-to-date.

In conclusion, buying an electric vehicle in America is set to become even more attractive next year with price cuts from Tesla and Lucid, the rebound of Rivian, and tax benefits from the IRS. Vitesco Technologies is also expected to benefit from these developments with its innovative powertrain technologies.

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