- Ford Motor and General Motors have ended their $7,500 electric vehicle (EV) lease tax-credit programs after recent U.S. policy changes.
- The moves follow the expiration of federal EV purchase incentives on September 30, leading to a shift in auto market demand.
- Ford’s stock fell 2% to $11.50, extending a three-day decline before inching up after hours.
- Both companies had previously planned to claim the federal credit through their finance arms, but reversed course amid political concerns.
- Analysts warn that recent EV demand spikes reflected buyers rushing to use incentives, possibly slowing sales in coming months.
Ford Motor and General Motors (GM) have both withdrawn their $7,500 electric vehicle lease tax-credit programs, following the end of federal incentives for EV purchases. The changes come as the U.S. auto market reacts to a sudden shift in demand after the tax credit expired on September 30.
On Thursday, Ford’s stock dropped 2% to close at $11.50, its lowest in more than two weeks, before edging up 0.2% in after-hours trading. A company spokesperson stated, “Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today.” This announcement followed a similar move by GM on Wednesday, which came after political concerns were raised by Senator Bernie Moreno of Ohio, as reported by Reuters.
Both automakers had structured programs for their in-house financing arms—Ford Credit and GM Financial—to buy EVs from dealership inventories, claim the federal credit, and then reduce lease costs for consumers. Now, these programs have been canceled. Ford Credit continues to offer other incentives such as zero-percent financing for 72 months.
The recent reversals come as EV makers adjust to changed market conditions. Tesla experienced a temporary surge in demand, posting a 33% stock rally in September and record quarterly deliveries as buyers rushed to take advantage of incentives before they ended.
Gene Munster of Deepwater Asset Management and Gary Black of Future Fund noted that Tesla’s recent spike was mainly due to “pull-forward” demand, meaning buyers moved up purchases to benefit from expiring tax credits, which could negatively impact fourth-quarter sales across the electric vehicle segment.
Ford CEO Jim Farley has warned that losing federal incentives could slow down the EV market. Other automakers like Hyundai and Stellantis are seeking to attract buyers with direct cash offers to compensate.
Year-to-date, Ford’s stock is up 23%, while GM has gained 6%, as the sector continues to adapt to new policy and consumer trends.
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