The EV Tax Credit Just Expired -- 3 Stocks That Could Still Win Without It

Core Viewpoint - The expiration of the $7,500 electric vehicle (EV) tax credit is expected to lead to a significant decline in demand for EVs, with Ford's CEO predicting a potential 50% drop in demand for battery-powered vehicles [1]. Group 1: Impact on Tesla - Tesla's stock remains resilient despite a decline in vehicle deliveries, with a 13% year-over-year decline in Q1 2025 and a 13.5% decline in Q2 2025 [4]. - The company's shares have increased by 14% year to date, indicating that investors are focusing on future technologies rather than current sales performance [6]. - Tesla's trailing price-to-sales (P/S) ratio is 17.4, significantly higher than traditional automakers like Toyota (0.78) and Volkswagen (0.16), suggesting a strong market valuation despite sales declines [5]. Group 2: Other EV Manufacturers - Nio, which operates in Europe and China, will not be impacted by the expiration of the tax credit as it does not sell vehicles in the U.S. [9]. - Toyota's strategy focuses on hybrid technology rather than fully electric vehicles, minimizing its exposure to the effects of the tax credit expiration [8].