Sorry, Tesla Fans! Ford Is Now the EV Tax Credits King.


  • The list of which electric vehicles (EVs) will qualify for the new tax credit policy is in.
  • Prominent American manufactures have a clear advantage this year.
  • But Ford (F) has more vehicles than Tesla (TSLA).
"EV tax credit" - Sorry, Tesla Fans! Ford Is Now the EV Tax Credits King.

Source: Roschetzky Photography /

Most news out of the electric vehicle (EV) sector this month has centered around the new tax credits. Some EVs will qualify for $7,500 in tax credits as part of the Inflation Reduction Act, enacted last year by President Joe Biden’s administration. Yesterday finally brought the news that EV owners across the U.S. have been waiting for.

In a move that will likely surprise no one, U.S. companies will benefit the most from the new EV tax credit policy. As the de facto leader of the EV sector, many people expected Tesla (NASDAQ:TSLA) to be the company with the most qualifying vehicles. But this time around, one of its competitors is the leading beneficiary. Tesla has five qualifying models, but Ford (NYSE:F) has six. 

What does this mean for EV stocks in the coming year? Let’s take a closer look at the news and examine what investors can expect.

A Post-EV Tax Credit Economy

The EV tax credit policy is intended to incentivize more U.S. drivers to make the switch to electric. The government’s mission of helping the country transition to EVs and plug-in hybrids is certainly working.

Even while the broader auto market shrunk last year, EV sales increased in the face of supply chain difficulties. Now, the Biden administration is shifting its focus slightly, using the EV tax credits as a means of spurring domestic manufacturing as well. As the New York Times reports, the only EVs that will quality for the full tax credit this year are from prominent U.S. automakers.

As noted, Ford now has a slight advantage over Tesla, in the sense that more of its vehicles qualify for the full EV tax credit. InvestorPlace contributor Chris MacDonald provides a helpful breakdown of the companies and models on this year’s list. Here are the Ford and Tesla models specifically:

  • Ford F-150 Lightning (2022-2023, Standard Range), Lowest MSRP $59,974
  • Ford F-150 Lightning (2022-2023, Extended Range), Lowest MSRP $59,974
  • Ford Mustang Mach-E (2022-2023, Standard Range), Lowest MSRP $45,995
  • Ford Mustang Mach-E (2022-2023, Extended Range), Lowest MSRP $45,995
  • Ford E-Transit (2022-2023), Lowest MSRP $49,575
  • Ford Escape Plug-In Hybrid (2022-2023), Lowest MSRP $40,500
  • Tesla Model 3 Performance (2022-2023, Performance), Lowest MSRP $52,990
  • Tesla Model Y All-Wheel Drive (2022-2023), Lowest MSRP $49,990
  • Tesla Model Y Long-Range (2022-2023), Lowest MSRP $52,990
  • Tesla Model Y Performance (2022), Lowest MSRP $56,990
  • Tesla Model 3 Standard Range (2022-2023), Lowest MSRP $41,990

Other EV Makers Stand to Benefit

Of course, it isn’t only these two companies that will benefit from the new EV tax credit. General Motors (NYSE:GM) and Stellantis NV (NYSE:STLA) both have several vehicles on this year’s list. The big three of the U.S. automotive industry are well-represented.

F stock has been falling this week, but this EV tax credit news could be the catalyst it needs to turn around. As InvestorPlace contributor David Moadel reports, the company’s recent Q1 earnings demonstrated impressive sales growth. Now, U.S. consumers have more incentive than ever to purchase a Ford EV.

Of course, the other companies on this list will benefit as well. Tesla has almost as many EVs that qualify for the tax credit as Ford. However, the company is facing significant challenges, particularly as Elon Musk continues to shake investor confidence through his problems at Twitter. If the new EV tax credit policy is any indication, this could easily be Ford’s year.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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