In an effort to boost end-of-year sales, Tesla has announced on its website that tax credits for certain electric vehicle (EV) brands are set to be slashed in the coming years. The federal tax credits, which currently offer up to $7,500 in incentives for qualifying EV purchases, may see reductions for specific vehicles starting in 2024. To take advantage of the full tax credit, customers are urged to make their purchases and take delivery by December 31st.

The announcement by Tesla has sparked speculation about which other EVs may be affected by the upcoming changes. According to experts, Chinese automaker Geely's ownership of Volvo could potentially impact Volvo models, as well as its spinoff brand Polestar, despite being assembled in the United States. However, a full list of affected models has not been released by the Treasury Department, leaving some uncertainty in the market.

Steve Birkett, senior EV editor at FindTheBestCarPrice.com, suggests that General Motors (GM) vehicles on the Ultium platform are likely to retain the full federal tax credit. Models such as the Chevy Blazer EV and Chevy Silverado EV, which are produced in the United States at GM's Ultium Cells plants, are well-positioned to qualify for the tax credits. However, the highly-anticipated Volvo EX30 is expected to be ineligible due to manufacturing links to Zhangjiakou, China, and Geely's ownership.

One model that will no longer be eligible for the tax credit in 2024 is the Chevy Bolt EV, which will cease production on December 20th. The Chevy Bolt EV was one of the few all-electric options available for under $30,000, leaving a void in the affordable EV market. Experts are concerned that this reduction in the tax credit and the discontinuation of affordable options may hinder EV adoption, especially among price-sensitive consumers.

Peter Cohan, an associate professor of management practice at Babson College, warns that with consumer spending slowing down, the phasing out of the EV tax credit could lead to a decrease in demand for EVs, particularly among those who relied on the credit to make their purchase more affordable.

As 2024 approaches, stakeholders in the EV market will be closely watching for further updates on the tax credit reductions. The changes could potentially reshape the landscape of the EV industry and impact consumer decisions when considering electric vehicle purchases.