The news of the potential death of the consumer credits for electric vehicle sales is sending shockwaves across the U.S. auto industry. Share prices of EV makers, including Tesla, are plummeting, incumbent federal officials are ringing alarm bells and automakers are bracing for the incoming Trump administration with leadership changes within their organizations to better prepare for what could be a bumpy road ahead.
Welcome back to Critical Materials, your daily round-up of news shaping up the world of EVs. Also on today's list: Hyundai has a new co-CEO, Jose Munoz, and Cruise, General Motors' self-driving taxi division, has admitted to lying about the incident where one of its robotaxis dragged a woman in San Francisco last year. Now it has to pay a huge fine for the faux pas.
30%: Tesla, Rivian and Lucid Stocks Drop
We’re not a financial publication, but stock prices often indicate where the EV industry is headed—so they’re worth highlighting occasionally. In the week following Donald Trump’s win in the U.S. presidential elections, Tesla’s market cap surged past $1 trillion, with shares peaking at $358.
After yesterday's report about Trump's transition team officially planning to kill the EV tax credits, much of Tesla's gains were wiped out. (Although it seems to be recovering again at midday.) Rivian shares were down too and Lucid seems to be hitting rock bottom again. Tesla told Trump's transition team that it supported ending the EV tax credits, even if that meant it's business getting hurt. But ending the tax credits will likely harm Tesla's rivals more.
Teslas have more margins built into them and are profitable, which gives the automaker some cushion. Legacy automakers like GM, Ford, and Hyundai are still scaling up, selling EVs at a loss and relying heavily on subsidies under the Inflation Reduction Act to stay competitive.
U.S. Energy Secretary Jennifer Granholm weighed in at COP29 in Baku, Azerbaijan, calling the move a win for China. "It would be so counterproductive," she said when asked about the report. "You eliminate these credits, and what do you do? You end up ceding the territory to other countries, particularly China," Granholm said, as per a Reuters report.
What does this mean for you, the consumer? Trump’s tough talk on tax credits is one thing—repealing them is another. The credits are enshrined into law, so overturning them would require Congressional approval. While a Republican-controlled Congress will likely support Trump’s agenda, there’s a catch: Many of these incentives are fueling job creation and economic growth in red states.
Plus, as Fast Company correctly points out, car dealers are leaning on these credits to move inventory. The leasing market—responsible for 80% of EV sales in October—relies on a workaround that lets consumers claim the credit even when cars don’t meet the critical minerals requirements.
So, two scenarios could play out: Congressional pushback keeps the credits alive—at least temporarily. Or Congress greenlights Trump’s plan, making EVs pricier overnight. Either way, snagging an EV before Trump takes office on January 20 might be your smartest move.
60%: Hyundai Prepares For A Second Trump Presidency With New CEO
While uncertainty looms large over the future of EV incentives, Hyundai is buckling up for a potentially bumpy ride in 2025. The automaker appointed Jose Munoz, the current head of its U.S. operations as the CEO and President of Hyundai Motor Company, effective January 1. This would be the first time a foreign national is the CEO of a major South Korean automaker.
New Hyundai and Kia EVs don't qualify for the federal tax credit, but the automaker has been the second best-selling EV maker in the U.S. behind Tesla so far this year. The automaker also built a $7.6 billion EV plant in Georgia, where the 2025 Ioniq 5 has entered production for the first time on U.S. soil. Plus, it's planning to erect two battery plants with LG Energy Solution and SK On, both close to the Metaplant.
The leadership change is "suited to lead Hyundai as competitiveness and business uncertainty increases,” its current President and CEO Jaehoon Chang said. Imports account for about 60% of Hyundai and Kia's U.S. sales, Reuters reported. While price increases are possible, the locally made Ioniq 5 may still remain a great Model Y alternative.
90%: Cruise Charged $500,000 For Lying About Pedestrian Accident
Last year in San Francisco, a jaywalking pedestrian was struck by a car, sending her into the path of a self-driving Cruise Chevy Bolt EV. The Cruise vehicle failed to react, ran over the woman and then dragged her for 20 feet before finally stopping—on top of her.
Now, Cruise is paying $500,000 for failing to cooperate with authorities after the accident. The charge is for providing a false record of the accident to the National Highway Traffic Safety Administration (NHTSA), which is probing the incident.
Here's a statement from the U.S. Justice Department:
Cruise employees provided a verbal summary of the accident that did not include a description of the dragging. The Cruise employees attempted to show a video of the accident that depicted the dragging, but due to technical difficulties, the portion of the video that showed the dragging did not play.
That afternoon Cruise submitted a 1-day-report, which specifically required “a written description of the pre-crash, crash, and post-crash details,” to NHTSA. Cruise’s narrative omitted the dragging. That omission rendered the report inaccurate and incomplete in light of NHTSA’s requirements.
The same day, Cruise employees provided NHTSA a copy of the video that showed the dragging, but Cruise did not correct the accident report or the disclosure in a later report submitted 10 days after the accident.
Cruise suspended operations for months following the incident, underwent a leadership shake-up, laid off staff and has now resumed testing in California and Texas. However, its post-incident non-compliance appears to have been a deliberate attempt to sidestep the investigation. This move does little to build public trust in what increasingly feels like an undercooked technology.
90%: Should The EV Tax Credits Live Or Die?
EV tax credits aren’t just about boosting adoption—they’re a key tool in displacing gas cars and cutting emissions to combat catastrophic climate change. Yet, somehow, this urgent issue has morphed into a deeply polarized partisan debate. That said, at some point, EV growth needs to be organic. But are we there yet? Not quite. What’s your take? Drop your thoughts in the comments.
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