EV Tax Credit Likely Gone, Tariffs Next? Are you still a Scout buyer without $7500 tax credit?

[jfinn3]

This graph is from a newsletter called CTVC (Clean Tech Venture Capital, I believe) is kind of confusingly plotted out, but the further top-LEFT an element of the 2022 IRA is, the more 'politically safe' it is considered to be:

Source: CTVC Newsletter #222, 11 Nov 2024

You can see the EV tax credit is the biggest political risk but also a potential source of major cost savings. The newsletter also discussed how the entire bill was designed to send more money to Republican-leaning states than to Democratic-leaning states to try to ensure long-term political viability (that viability is about to be put to the extreme test).

Regardless of what happens with the $7,500 Fed tax credit, I plan to do what I can to invest in this exciting company/brand and continuing to bring EV tech down the production cost curve--and have a hell of a lot of fun driving a Scout Terra while I'm doing it! If the federal credit does go away, hopefully some states that are so inclined will partially step into the breach and further sweeten their state-level incentives.

 

[FS_Overland]

I never even thought about the credit when I reserved mine. It shouldn't have been a thing to begin with.

 

[gtabert]

There won’t be tariff’s on products made in America. I will proudly buy an American made Scout.
Just sounds like someone is unhappy about the election outcome. Please don’t bring politics to this forum.

Political whining - the act or activity of complaining in an annoyingly childish or petulant manner. Two years out is a long way to worry about anything, especially something one has no control over. Biblically speaking “Can any one of you by worrying add a single hour to your life?” Of course it won't, but it certainly will rob us of the quality of our days. Let the markets play it out, it is what it is. I have a deposit on the Meyer Manx EV as well as the Scout, only time will tell if I exercise either of them, credit or no credit.

 

[jdrenk75]

Why should car companies have to rely on government tax credits to sell a product. If the consumer is unwilling to buy an EV without a credit, is it even a viable product? I am still in for the Scout either way. The credit was not a determining factor. Let the product speak for itself and if it is as good as we think it will be then sales should be just fine.

 

[jefrank]

No surprise the new administration is going to try to kill this. Also no surprise is Elmo supporting it. He knows this will hurt other manufacturers way more than Tesla, especially those like Lucid, Rivian, and Scout and to a lesser degree legacy automakers.

At least Scout is a couple of years away from production but if the tax credit is gone then, it will definitely impact some customers from buying a Scout.

Tariffs are likely coming which we know will impact costs of good/parts. Somehow I have a hunch this won't impact Tesla much either. If you think it will be implemented evenly and fairly across all auto manufacturers you are living in a fantasy world, its going to hurt other companies way more (unless somehow they figure out how to get on DT's side).

Not trying to be political here. I hate politics, on both sides of the aisle. Just trying to read the tea leaves and share my glass-half-empty opinion on where things might head with the new administration. Sad to see the EV momentum of the past 10-12 years potentially get lost.

Make too much to qualify for the credit anyway so it still comes down to the final product and price on whether I pull the trigger

 

[astricklin]

Let's remember that Congress is in charge of passing laws and is the branch that will need to do something to dissolve the EV tax credit.

 

[Scout3]

The EV tax credit may go away. Are you still a buyer? Will the auto companies absorb some of this in the form of lower prices. Typically i think subsidies generally raise prices, not lower them.

This is generally correct and the point I was going to make. I am 100% a buyer without a credit.

 

[AtomicPunk]

I personally never agreed with the tax credit incentives from the very beginning. I'm not currently an EV owner, but my interest in this new Scout had nothing to do with receiving a tax credit or not. Bottom line is, at the end of the day if I feel the product warrants the price asked, I'll buy it. If not I'll pass. Like others have said, a manufacturer shouldn't have to rely on tax credits to make their vehicle competitively priced.

 

[FlyEaglesFly]

It has been reported that the new president plans to do away with the EV credit, if this happens will you fork over the extra $7500 or take a pass? I guess for me it depends on the final price announced by Scout Motors down the road, but $60K is pretty much as high as I will go.

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​ ​ ​ ​ President-elect Donald Trump is already drawing up plans to kill the $7,500 EV tax credit when he assumes office, Reuters reported on Thursday. We can't say we're surprised.​

I completely agree I don't want to go over $60K

 

[hapymayer]

Yeah i agree with that the Tax wont be going away. And with you saying that buying parts here will keep tariffs out. Which it seems scout has already has them selfs in a good situation with sourcing 80% of parts in the USA.

The reason i see that he wont get rid of it is because he know how expensive they are. And his big thing is getting rid if the 2030-35 ALL EV ONLY CARS. Which is right because EVs aren't for everyone. It shouldn’t be forced upon you that you have to own a EV

Tariffs will drive up ALL prices regardless if the part in question has it applied or not.

 

[timmyhil]

Tariffs will drive up ALL prices regardless if the part in question has it applied or not.

I’m sure it will but non of it’s been said it will target Canada which will be were the battery is made for Scout since VW is opening a giga factory in Canada. It’s mainly affecting non North American cars. But from what I’ve read and have seen there is a bunch of work around in the order that will make the tariffs do nothing.

 

[colinnwn]

I'm not convinced the Scout design of the series hybrid will even qualify for a tax rebate if it still exists without government imposed limitations that would stop me from buying it. And that's fair because the rebates were meant to assist in EV development and market penetration.

But if I can get the series hybrid with attractive standard features for under $60k I'm still in. More than that likely not, unless I hit the lottery.

 

[Lakesinai]

Avoid tariffs by buying local parts, easy-peasy.

I am not convinced the credit will go away but regardless the cost of vehicles has been spiraling out of control for a while.

Incentive or not, Scout has created the first EV or in my case Series Hybrid, that I have ever considered owning.

You don't need mandates and giveaways, you need to make an affordable vehicle people actually WANT to buy - and I think Scout is on the right path here.

"Local parts" is a fantasy, the components industry is worldwide. Locally assembled, sure. Hopefully the batteries will be "local" by then, but not fully yet.

 

[animusrien]

Brings up a question I hadn't thought of until reading this. Do EREV / Series Hybrid (Harvester) vehicles qualify for the current tax credit?

It should qualify as the whole amount. On paper, it's a fully EV plug in. The gas generator part is optional and an addon.

 

[joewilk45]

I think we have a long way to go before we know if it's a boy or a girl and in 6 months maybe some firm pricing. And once that happens we all have decisions to make look forward to the future and what it brings.