EV Tax Credit's Dissolution May have Caused its First Two Casualties
Are electric vehicle sales about to take a nosedive? It’s entirely possible. And at least two automakers are feeling the heat and pulling certain EV models.
By the time you read this, the $7,500 EV tax credit could be gone, as it’s set to expire September 30th, courtesy of the “The One Big Beautiful Bill” signed into law on July 4th. The credit had also included a $4,000 subsidy for used EVs.
This comes after the previous administration had expanded EV credits to include leased vehicles while removing the manufacturer limit (previously set at 200,000 EVs).
The One Big Beautiful Bill also prematurely ends the “Alternative Fuel Vehicle Refueling Property Credit,” available “to businesses and individuals who install qualified refueling or recharging property, including electric vehicle charging equipment, in an eligible location.” Instead of December 2032, it’ll terminate at the end of June 2026.
And we’ve now witnessed the first two casualties of the tax credit dissolution, or so we’ve been led to believe. First off, Honda has cancelled their all-electric Acura ZDX, which was based on GM’s Ultium EV platform.
Did it have anything to do with the EV tax credit ending? It does seem like a wild coincidence, though Honda merely cited “market conditions” and since its launch in 2024, the electric ZDX has only sold 19,000 units.
Meanwhile, Nissan is ending the Ariya, with the company reallocating resources to support the launch of the 2026 LEAF.
According to an industry analyst, the Japan-built Ariya “was already too expensive, and now with tariffs in place and a federal emissions rollback, there’s no reason to keep it around.”
Suffice to say these could be the first of many EV cancellations, with the $7,500 making a huge different for the average consumer.
