Latest news with #taxcredit
Forbes
3 days ago
- Automotive
- Forbes
Should You Buy A New EV Before The $7,500 Tax Credit Expires?
NEW YORK: A new Lexus electric car is displayed at the New York International Auto Show (Photo by ... More) In 2009, the American Recovery and Reinvestment Act offered the first federal rebates and tax credits for electric vehicles (EVs) in the United States. The credits were reinstated in 2022, under the Inflation Reduction Act, and written to last until 2032. The current administration had other plans, and lawmakers recently passed a new tax and budget bill (nicknamed the "One Big Beautiful Bill") to reset the EV rebates and tax credit expiration date to September 30, 2025—that's right around the corner. While there are no plans to offer a federal tax credit for new or used EV purchases after that date, some state and local governments may offer similar programs. Still, none are as comprehensive as the rebates and tax credits that are set to expire in just over 60 days. This creates quite a dilemma for consumers considering a new or used EV. Should they accelerate their purchase to take advantage of the rebates and credits, or wait and see what the future holds? Sound advice suggests that if you currently have plans to buy or lease an EV before year's end, it makes sense to accelerate the transaction and complete it before September 30, 2025. If you are only casually considering an EV—primarily enticed by the $7,500 (new) or $4,000 (used) incentives—it's better to wait until next year. Today, the average new EV costs about $9,000 more than a comparable gasoline vehicle, and used EVs are still about $2,000 more than an equivalent used gasoline vehicle. Until now, automakers have relied heavily on rebates and tax credits to boost sales. They have successfully advertised the discounts in their marketing efforts. Once the credit is gone in October, demand for EVs is expected to slow significantly. Manufacturers are not obligated to lower prices—most won't be able to discount existing inventory, and consumers will be forced to pay the higher prices (some shoppers will pay more willingly, noting that EVs cost significantly less to own over the long run, thanks to lower charging costs and reduced maintenance). Over time, most manufacturers will eventually lower prices, offer increased dealer incentives (savings passed on to shoppers), or complement sales with attractive financing and low interest rates—all of this is dependent on market conditions, consumer demand, wholesale battery prices (during manufacturing), and the competitive environment. And they will likely shift marketing campaigns to stress the advantages of EV ownership (zero fuel costs, lower maintenance, and the convenience of home chargers). In summary, if you are currently in the market for a new or used EV, it's wise to complete the purchase before September 30, 2025. Keep in mind that the rules have changed—not all EVs and buyers qualify for today's credits. Under the new legislation, there are very specific rules regarding North American assembly, battery sourcing, vehicle pricing caps ($80,000 for SUVs, pickups, and vans; $55,000 for other vehicles), and buyer income levels (consult with your tax professional to determine eligibility).
Yahoo
4 days ago
- Automotive
- Yahoo
Is Lucid Motors Stock a Buy, Sell, or Hold for July 2025?
The recent discussion about electric vehicles (EVs) centers on industry leader Tesla (TSLA) and how new policies might slow down demand for EVs. President Donald Trump's bill would cut the $7,500 EV tax credit for the purchase of a new EV as well as the $4,000 credit for buying a used EV after September. Against this backdrop, can luxury EV maker Lucid Group (LCID) take the spotlight away from some of the big names? More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! About Lucid Stock Founded in 2007, Lucid Motors, officially known as Lucid Group, operates as a U.S. luxury EV and technology company. It began its operations by supplying high-performance batteries and powertrain systems but changed its position in 2016 to produce its own EVs. Lucid has a market capitalization of $8.9 billion. The company's flagship product, the Lucid Air, was launched in 2021. The EV is popular among consumers for its rapid charging capabilities, long range, and upscale interior design. In late 2024, Lucid started producing its second model, the Gravity SUV. The model combines luxury with long mileage. Lucid is backed by Saudi Arabia's Public Investment Fund (PIF), which remains its majority investor. Lucid is also looking at a potential reverse stock split. The company has filed a preliminary proxy statement for a 1-for-10 reverse stock split. While the strategy is popular among firms trying to avoid a delisting by preventing the stock price from falling below the $1 mark, Lucid does not seem to be in danger of delisting. Lucid recently secured a partnership with ride-hailing giant Uber Technologies (UBER), whereby Uber is set to invest $300 million in Lucid. Uber will also invest in autonomous technology startup Nuro, which is set to equip Lucid vehicles with self-driving capabilities. Uber aims to deploy approximately 20,000 Lucid vehicles equipped with Nuro Driver over a six-year period. Lucid investors celebrated this multi-year deal, which led to LCID stock surging. Over the past month alone, Lucid shares have gained 36%. However, over the past 52 weeks, the stock is still down by nearly 16%. LCID currently trades 34% lower than its 52-week high of $4.43. Currently, Lucid trades at an eye-watering valuation. Its price-to-sales ratio sits at 11 times, which is significantly higher compared to the industry average. Lucid's Q1 Results Were Lower Than Expected On May 6, Lucid reported its first-quarter results for 2025. During the quarter, revenue climbed 36% from the prior-year period to $235.05 million. At the heart of this growth was Lucid delivering 3,109 vehicles in Q1, representing a 58.1% year-over-year (YOY) increase. The company produced 2,212 vehicles during the quarter, which excludes over 600 vehicles in transit to Saudi Arabia for factory gating. While production and deliveries are growing, so are costs. The company continues to post significant losses. In Q1, its net loss per share stood at $0.24. While this was lower than the $0.30 per share net loss in Q1 2024, it was wider than the $0.23 per share net loss that analysts had expected. Lucid ended the quarter with about $5.76 billion in total liquidity. Lucid is still aiming for a huge expansion in deliveries. At the current rate, it's on track to deliver 12,500 vehicles, which is robustly higher than the number it delivered last year. Even with the fear of tariffs looming large, the company aims to produce approximately 20,000 vehicles this year, which is roughly double what it produced in 2024. While analysts expect Lucid to continue posting losses, they anticipate that these losses will narrow. In Q2, Lucid is projected to post a loss per share of $0.22, narrowing by 24% YOY. For the current year, the company's loss per share is expected to be $0.89, reflecting an improvement of 29% YOY. What Do Analysts Think About Lucid Stock? Wall Street analysts are tepid on LCID stock at the moment. Analysts at Cantor Fitzgerald reiterated their 'Neutral' rating on LCID with a $3 price target. This was predicated upon Lucid's Q2 production and delivery numbers falling short of Cantor Fitzgerald's estimates while showing improvements YOY. On the other hand, Baird analyst Ben Kallo raised the price target on Lucid Group from $2 to $3 while maintaining a 'Neutral' rating. The price target was upgraded after Lucid reaffirmed its intention to launch its midsize platform next year, indicating potential models. Morgan Stanley also sees opportunity in Lucid's partnership with Uber. Analysts at the firm reiterated their 'Equal Weight' rating and $3 price target on the stock. Wall Street analysts have a mixed view about Lucid, giving it a consensus 'Hold' rating overall. Of the 13 analysts rating the stock, two analysts rate it a 'Strong Buy,' a majority of nine analysts play it safe with a 'Hold' rating, one analyst provides a 'Moderate Sell' rating, and one analyst recommends 'Strong Sell.' The consensus price target of $2.86 represents 2% downside potential from current levels. Key Takeaways While the multi-year partnership with Uber creates a chance of generating a revenue stream for the foreseeable future, the effects of the absence of tax credits on this luxury EV maker and a reverse stock split must also be taken into account. Hence, it might be wise to observe LCID stock from the sidelines for now. On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
This Bezos-backed EV startup is betting you'll pay extra for a stereo in your petite pickup
By Kalea Hall and Nora Eckert (Reuters) -When Will Haseltine saw images online of a small, boxy electric pickup from startup Slate Auto this past spring, he got on the waitlist right away. The sparse interior and crank windows reminded him of the no-frills pickups he grew up around in Memphis, Tennessee – but he was most enamored with the sub-$20,000 price tag. That price, though, factored in a $7,500 federal tax break, which is set to expire Sept. 30, a casualty of the budget package U.S. President Donald Trump signed into law earlier this month. Now Haseltine isn't sure the truck will fit his budget when it comes out, expected late next year. 'The Slate was the first time that I looked at a car, wanted it, and could also really make it happen," said Haseltine, a 39-year-old musical instrument technician. Without the tax credit, he said: "That's just plain too much." Michigan-based Slate has raised $700 million from investors, including founder Jeff Bezos, and has racked up more than 100,000 reservations for its cars. But the company is launching into a tough U.S. market. A few years ago, the electric-vehicle space was awash in hopeful entrepreneurs looking to cash in on the global transition to electric cars. But U.S. EV sales growth has cooled as consumer interest has faded. The loss of federal tax breaks will further hurt demand, auto executives and analysts predict. Like other EV startups, Slate likely faces a long road to profitability. The EV business has proven to be a money loser for most industry players, partly because batteries remain relatively expensive. Even in China, where smaller, inexpensive EVs have proliferated and companies enjoy a cost advantage over Western automakers, most are unprofitable. Slate founders believe the company can overcome those obstacles by offering something that is in short supply in today's U.S. car market: affordability. The average new-vehicle selling price is above $45,000. 'We are building the affordable vehicle that has long been promised but never delivered,' Slate CEO Chris Barman said at a Detroit conference in July. The company has a chance to fill a void left by Tesla, which has backtracked on plans to introduce a mid-$20,000s electric vehicle. The startup has taken a bare-bones approach to its two-seat pickup, which is slightly smaller than a Honda Civic hatchback. How bare-bones? A stereo and power windows will cost extra. Slate hasn't disclosed the cost of such add-ons. 'IT'S A COOL IDEA' Slate's creation started with an idea from Miles Arnone, the CEO of Re:Build Manufacturing, a Massachusetts-based startup that includes several former Amazon employees. Arnone believed workers needed better access to affordable vehicles. Arnone shared his idea with Jeff Wilke, the company's chairman and a former Amazon executive, and eventually, a small team was formed. The group hired Barman, who spent most of her career as an engineering executive at Fiat Chrysler, now part of Stellantis. Barman told Reuters recently that Slate will be able to absorb the loss of the $7,500 tax credit because the truck's price still will undercut competitors. The company plans to build the pickup at an old catalog factory in Warsaw, Indiana. Executives are taking steps to hold down costs, starting with a simplified design that uses about 500 parts in the truck's assembly, compared with a few thousand for a traditional truck. The plan to build all of its trucks in a basic package – what the company calls a 'SKU of one' – allows customers to choose to add a stereo, center console, special lighting, and other features later. The pickup will be built with composite body panels in gray, with an option for a vinyl wrap. That will sidestep the need for a paint shop, which is one of the most expensive investments in a typical car factory. Slate's minimalist approach is a leap of faith that Americans will forgo creature comforts they have been increasingly willing to splurge on. Last year, U.S. buyers spent 33% above the base price on average, springing for higher-end trim packages and extra features, according to . That was up from 28% in 2014. But there is mounting evidence that new cars are becoming out of reach for many Americans. That could worsen under the effects of the Trump administration's tariffs, which threaten to increase prices on popular budget cars imported from Mexico, Korea and elsewhere. From that standpoint, Slate's price-conscious pickup might be hitting at the right time, said Paul Waatti, director of industry analysis at AutoPacific. 'There's a growing appetite, especially among younger drivers, for vehicles that are more honest, more modular and less over-engineered,' he said. 'Slate taps right into that.' Traditional automakers and startups have found mixed success rolling out larger electric pickup trucks in recent years. Now, startups like Slate and California-based Telo are focusing on smaller electric pickups. In a town hall meeting in early May, Ford CEO Jim Farley and Executive Chair Bill Ford told employees they admired the company's customer-centered ethos and focus on affordability. Tim Kuniskis, Stellantis' head of American brands, called Slate 'super interesting' at a June event, while also questioning how affordable it would be for some shoppers once they added all the options they wanted. 'The idea behind it, we've talked about that idea a million times,' he said. "It's a cool idea.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Automotive
- Reuters
This Bezos-backed EV startup is betting you'll pay extra for a stereo in your petite pickup
July 28 (Reuters) - n Will Haseltine saw images online of a small, boxy electric pickup from startup Slate Auto this past spring, he got on the waitlist right away. The sparse interior and crank windows reminded him of the no-frills pickups he grew up around in Memphis, Tennessee – but he was most enamored with the sub-$20,000 price tag. That price, though, factored in a $7,500 federal tax break, which is set to expire Sept. 30, a casualty of the budget package U.S. President Donald Trump signed into law earlier this month. Now Haseltine isn't sure the truck will fit his budget when it comes out, expected late next year. 'The Slate was the first time that I looked at a car, wanted it, and could also really make it happen," said Haseltine, a 39-year-old musical instrument technician. Without the tax credit, he said: "That's just plain too much." ichigan-based Slate has raised $700 million from investors, including opens new tab founder Jeff Bezos, and has racked up more than 100,000 reservations for its cars. But the company is launching into a tough U.S. market. A few years ago, the electric-vehicle space was awash in hopeful entrepreneurs looking to cash in on the global transition to electric cars. But U.S. EV sales growth has cooled as consumer interest has faded. The loss of federal tax breaks will further hurt demand, auto executives and analysts predict. Like other EV startups, Slate likely faces a long road to profitability. The EV business has proven to be a money loser for most industry players, partly because batteries remain relatively expensive. Even in China, where smaller, inexpensive EVs have proliferated and companies enjoy a cost advantage over Western automakers, most are unprofitable. Slate founders believe the company can overcome those obstacles by offering something that is in short supply in today's U.S. car market: affordability. The average new-vehicle selling price is above $45,000. 'We are building the affordable vehicle that has long been promised but never delivered,' Slate CEO Chris Barman said at a Detroit conference in July. The company has a chance to fill a void left by Tesla (TSLA.O), opens new tab, which has backtracked on plans to introduce a mid-$20,000s electric vehicle. The startup has taken a bare-bones approach to its two-seat pickup, which is slightly smaller than a Honda Civic hatchback. How bare-bones? A stereo and power windows will cost extra. Slate hasn't disclosed the cost of such add-ons. te's creation started with an idea from Miles Arnone, the CEO of Re:Build Manufacturing, a Massachusetts-based startup that includes several former Amazon employees. Arnone believed workers needed better access to affordable vehicles. Arnone shared his idea with Jeff Wilke, the company's chairman and a former Amazon executive, and eventually, a small team was formed. The group hired Barman, who spent most of her career as an engineering executive at Fiat Chrysler, now part of Stellantis ( opens new tab. Barman told Reuters recently that Slate will be able to absorb the loss of the $7,500 tax credit because the truck's price still will undercut competitors. The company plans to build the pickup at an old catalog factory in Warsaw, Indiana. Executives are taking steps to hold down costs, starting with a simplified design that uses about 500 parts in the truck's assembly, compared with a few thousand for a traditional truck. The plan to build all of its trucks in a basic package – what the company calls a 'SKU of one' – allows customers to choose to add a stereo, center console, special lighting, and other features later. The pickup will be built with composite body panels in gray, with an option for a vinyl wrap. That will sidestep the need for a paint shop, which is one of the most expensive investments in a typical car factory. late's minimalist approach is a leap of faith that Americans will forgo creature comforts they have been increasingly willing to splurge on. Last year, U.S. buyers spent 33% above the base price on average, springing for higher-end trim packages and extra features, according to opens new tab . That was up from 28% in 2014. But there is mounting evidence that new cars are becoming out of reach for many Americans. That could worsen under the effects of the Trump administration's tariffs, which threaten to increase prices on popular budget cars imported from Mexico, Korea and elsewhere. From that standpoint, Slate's price-conscious pickup might be hitting at the right time, said Paul Waatti, director of industry analysis at AutoPacific. 'There's a growing appetite, especially among younger drivers, for vehicles that are more honest, more modular and less over-engineered,' he said. 'Slate taps right into that.' Traditional automakers and startups have found mixed success rolling out larger electric pickup trucks in recent years. Now, startups like Slate and California-based Telo (TELO.V), opens new tab are focusing on smaller electric pickups. In a town hall meeting in early May, Ford (F.N), opens new tab CEO Jim Farley and Executive Chair Bill Ford told employees they admired the company's customer-centered ethos and focus on affordability. Tim Kuniskis, Stellantis' head of American brands, called Slate 'super interesting' at a June event, while also questioning how affordable it would be for some shoppers once they added all the options they wanted. 'The idea behind it, we've talked about that idea a million times,' he said. "It's a cool idea.'
Yahoo
4 days ago
- Business
- Yahoo
The clock is ticking on solar tax credits and All Energy Solar can help
MADISON, Wis., July 27, 2025 /PRNewswire/ -- Homeowners and businesses have a critical, rapidly approaching deadline to take advantage of the 30% federal solar tax credit: December 31, 2025. After this date, the Residential Clean Energy Credit will be eliminated entirely, and the Clean Energy Investment Tax Credit for commercial projects will be subject to new restrictions and early phase-out. All Energy Solar Inc. is urging people to act now to ensure their projects are completed in time to qualify for these significant savings. The recent "One Big, Beautiful Bill Act" abruptly cut short the federal solar tax credit, which was previously set to continue through 2034. This change creates a compressed timeline for those interested in investing in solar energy. For homeowners, this means a potential savings of an average of $9,000 will vanish in 2026. Businesses also face a limited window to capitalize on the full credit for renewable energy projects. "The phase-out of this federal tax credit is a big shift—not just for the solar industry, but for any homeowner or business thinking about going solar," said Ryan Buege, Vice President of Sales and Marketing at All Energy Solar. "The window is closing, but there's still time to lock in the full value if you act now. It may be years before solar becomes this affordable again." Typical installation timelines can span several months due to site design, permitting, and utility coordination. All Energy Solar encourages anyone considering solar to start their project now to maximize savings and avoid missing out on current incentives. "From your first consultation to system activation, going solar takes time—especially with permitting and utility approvals," Buege added. "Our team is experienced at navigating these local processes, but as demand surges, there will come a point where we simply can't guarantee new projects will qualify under the current incentive, especially for residential solar." For businesses switching to solar, the changes to the tax credit present a more nuanced, though still urgent, timeline. While the general elimination date for the Clean Energy Investment Tax Credit is December 31, 2027, projects that begin construction by July 4, 2026, can still qualify for the full 30% credit, provided they are placed in service within four years. Projects beginning construction after July 4, 2026, must be placed in service by December 31, 2027, to receive any credit. Furthermore, projects beginning construction after December 31, 2025, will face new "Foreign Entity of Concern" (FEOC) restrictions, requiring a certain percentage of components to be sourced from non-FEOC manufacturers to qualify for the credit. About All Energy SolarAll Energy Solar is a full-service solar energy solutions provider for residential, commercial, agricultural, and government customers seeking to make the transition to solar energy. Learn more at View original content to download multimedia: SOURCE All Energy Solar, Inc
