Incentives Boost Sales and Decrease Costs, Benefiting Consumers and Industry

The document asserts that financial incentives, particularly the federal tax credit, are essential for bridging the price gap between electric vehicles (EVs) and gasoline cars while battery costs decline. It highlights that EVs offer significant fuel savings and lower global warming emissions, and that government support fosters domestic manufacturing and R&D. The brief warns that premature removal of these incentives would stall US leadership in EV technology, citing a sharp drop in sales in Georgia after its state tax credit ended in 2015.

• Electric vehicles provide significant environmental and economic benefits, with refueling costs estimated in May 2017 to be equivalent to gasoline priced at $1.17 per gallon. Furthermore, the global warming emissions of an average US EV are comparable to a gasoline vehicle achieving 73 miles per gallon.
• EVs are currently more expensive to produce than gasoline vehicles, with manufacturing costs 1.5 to 2.5 times higher, primarily due to battery and electronic costs.
• Battery pack costs have declined significantly from $1,000 per kWh in 2010 to approximately $190 per kWh for the Tesla Model 3 and $205 per kWh for the 2017 Chevrolet Bolt EV. Analysts suggest EVs become cost-competitive with gasoline vehicles when battery prices fall between $125 and $150 per kWh.
• Reaching the battery cost-reduction target requires global EV sales of approximately 4 million vehicles annually. In 2016, worldwide sales were over 750,000, with the US accounting for more than 20 percent (159,000 EVs).
• The federal tax credit of up to $7,500 is critical for affordability, but its 200,000 EV cap per manufacturer may penalize market leaders like General Motors, Nissan, and Tesla by 2018.
• The removal of state-level incentives can lead to a rapid collapse in sales, as demonstrated in Georgia where sales dropped from 1,338 in June 2015 to 148 two months after the state ended its tax credit.
• Government support for EVs encourages domestic job creation and manufacturing, such as Tesla's battery factory in Nevada expected to employ 10,000 workers by 2020, and production of the Chevrolet Bolt and Volt in Michigan and the Nissan Leaf in Tennessee.

APA

Union of Concerned Scientists (2017). Incentives Boost Sales and Decrease Costs, Benefiting Consumers and Industry. https://www.ucs.org/sites/default/files/attach/2017/09/cv-factsheets-ev-incentives.pdf

Chicago

Union of Concerned Scientists. Incentives Boost Sales and Decrease Costs, Benefiting Consumers and Industry. 2017. https://www.ucs.org/sites/default/files/attach/2017/09/cv-factsheets-ev-incentives.pdf.

Wikipedia

{{cite report |author=Union of Concerned Scientists |title=Incentives Boost Sales and Decrease Costs, Benefiting Consumers and Industry |date=August 2017 |url=https://www.ucs.org/sites/default/files/attach/2017/09/cv-factsheets-ev-incentives.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{unionofconcernedscientists2017incentives, author = {{Union of Concerned Scientists}}, title = {{Incentives Boost Sales and Decrease Costs, Benefiting Consumers and Industry}}, institution = {Union of Concerned Scientists}, year = {2017}, month = aug, url = {https://www.ucs.org/sites/default/files/attach/2017/09/cv-factsheets-ev-incentives.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }