7 Key Insights for EVs Post ‘One Big Beautiful Bill’
President Trump’s “One Big Beautiful Bill” (OBBB), signed into law in July 2025, abruptly halts several federal programs that have underpinned the explosive growth of the U.S. electric vehicle market. From eliminating the $7,500 federal EV tax credit to repealing Corporate Average Fuel Economy (CAFE) penalties, OBBB injects uncertainty into an industry already grappling with supply-chain constraints and aggressive global competition. Here’s what buyers, automakers, and policymakers need to know now.
1. Timing Your Purchase Amid Federal Credit Cuts
OBBB sunsets the $7,500 EV and plug-in hybrid tax credit on September 30, 2025. To qualify, new vehicles must meet price caps—$55,000 for sedans, $80,000 for SUVs and trucks—be assembled in North America and satisfy critical-mineral and battery-component thresholds. Buyers with adjusted gross income above $150,000 (single), $225,000 (head of household), or $300,000 (joint) are excluded. The $4,000 credit for used EVs remains until December 2025. Insider tip: Models still eligible include the Tesla Model 3 RWD, Chevy Bolt EUV, and Hyundai Ioniq 5 Long Range.
2. Dealership Incentives and Post-Credit Pricing Strategies
- Employee Pricing Extensions: Ford and Stellantis have extended a $2,000 off invoice discount for every buyer, effectively offsetting spring’s tariff increases on auto parts.
- Innovative Lease Programs: GM offers a 36-month lease on the Bolt EV for $199/month (10,000 mi/yr, $1,995 down), leveraging residual values to maintain affordability.
- Clearance Discounts: Nissan’s 63 kWh Leaf SV Plus now carries a $5,000 markdown thanks to surplus 2024 inventory.
3. Charging Infrastructure Credits and Deployment
OBBB phases out the residential charging credit (30% of cost, up to $1,000) in June 2026, targeting only low-income or rural ZIP codes. Meanwhile, the Department of Energy’s National Electric Vehicle Infrastructure (NEVI) program is funding $1 billion to deploy 1,200+ public DC fast-charging sites by 2027. Key specs: CCS Combo 1 connectors, 150 kW minimum, with room to upgrade to 350 kW+ hardware for 800 V architectures.
4. Battery Chemistry and Supply Chain Impacts
The bill tightens the Section 45X manufacturing credit: by 2027, 60% of battery components must be U.S.-made (rising to 80% by 2029). This jeopardizes reliance on imported NMC622 cathodes from East Asia. Domestic gigafactories—Panasonic in Nevada, SK On in Georgia, LG Energy Solution in Ohio—are scaling NMC811 and LFP lines to meet the thresholds. Kathy Harris, director of NRDC’s Clean Vehicles program, warns:
“Without streamlined permitting and capital incentives, many startups will struggle to localize cell assembly.”
5. Fuel Economy Standards Are Voluntary, Not Mandatory
CAFE penalties—up to $50 per 0.1 mpg shortfall—have been repealed, and the 2026 target of 49 mpg combined is now guidance. Automakers may de-prioritize mild hybrids (48 V belt starters) and full hybrids with Atkinson-cycle engines, such as Toyota’s 2.5 L Dynamic Force unit.
6. Global Market Competition Accelerates
Chinese OEMs—BYD, Nio, Xpeng—are exporting CBU models to Europe and the U.S., avoiding OBBB’s domestic-assembly clauses. BYD’s Atto 3, built on the e-platform 3.0 with blade LFP cells, delivers 310 miles EPA range and 0–60 mph in 7.3 s at a starting price of $38,000.
7. State and Municipal Incentives Fill the Federal Void
- California Clean Fuel Reward: $1,500 point-of-sale rebate plus $2,000 HOV decal incentives.
- New York Drive Clean Rebate: Up to $2,500 combined state and utility rebates in Con Edison territory, plus off-peak rates at $0.10/kWh.
- Colorado EV Grant: $3,000 for rural home charger installs, stacked with Xcel’s $500 bonus rebate.
Additional Analysis: Integrating EVs with the Grid
Vehicle-to-Grid (V2G) pilots—like Nuvve’s 10 kW JuiceBox Pro deployments in Vermont—are testing bi-directional charging under FERC Order 2222 compliance. Utilities are keen on aggregator models that pay EV owners $0.20/kWh for grid services during peak demand.
Additional Analysis: Solid-State Batteries and Future Tech
QuantumScape’s solid-state cells promise energy densities above 400 Wh/kg and 10-minute fast charges. Toyota’s Research Institute targets commercialization by 2030, but scale-up requires high-pressure calendaring processes and new supply chains for sulfide electrolytes.
“SSBs could reduce pack weight by 30% and improve cycle life by 50%,”
says Dr. James Spees, CTO at QuantumScape.
Looking Ahead: Speed Bump or True Obstacle?
While OBBB removes key federal incentives, state programs, dealer promotions, and rapid advances in cell technology suggest the U.S. EV transition will continue—albeit on a different throttle. As Edmunds analyst Joseph Yoon puts it, “This is a speed bump, not a roadblock.”