Overview

• Ford's all-electric Mustang Mach-E SUV is unlikely to qualify for EV tax credits starting next year, according to a bulletin Ford sent to dealers.
• The change in tax credit eligibility is due to the Biden administration's latest guidance aimed at reducing Chinese content in batteries eligible for EV credits.
• An electric vehicle may not contain any battery components that are manufactured or assembled by a “foreign entity of concern” starting in 2024 if they are to be eligible for a full tax credit.
• Last month, the Lightning was Ford's best-selling EV in the U.S. followed by the Mach-E SUV.
• Tesla has said that the tax credit for merely the Model 3 RWD and Long Range would be halved starting next year.