Tesla, Rivals Brace For EV Market 'Collapse'—Thanks To Trump

Core Insights - The expiration of federal subsidies for electric vehicles (EVs) poses a significant challenge for the EV market, potentially leading to a sharp decline in sales as companies face the risk of reduced demand after investing billions in electrification [1][2][3] - Executives from major automakers, including Nissan and Ford, have expressed concerns that the removal of these incentives could lead to a collapse in the EV market, highlighting the industry's dependence on government support [2][3][4] Industry Impact - The cost gap between EVs and gasoline-powered vehicles has widened without the subsidy, which may discourage potential buyers at a critical time for mainstream adoption of electric vehicles [3] - The ripple effects of the subsidy expiration could extend beyond automakers, impacting suppliers, charging infrastructure, and the broader clean energy transition [4] Recent Performance - In Q3, electric vehicle deliveries surged as consumers rushed to finalize purchases before the expiration of the federal tax credit, with Tesla delivering 497,099 vehicles, a 7.4% increase year-over-year, and Rivian delivering 13,201 vehicles, a nearly 32% increase [5][6] - The spike in deliveries underscores the continued importance of government incentives for maintaining momentum in the EV industry [5] Future Outlook - The expiration of the federal EV tax credit marks a turning point for the industry, creating uncertainty regarding future demand and testing the sector's ability to adapt to policy changes while driving sustainable growth in electrification [7]