Stellantis and VW shares drop as some plug-in vehicles lose US tax credits

From Investing.com: 2025-01-03 08:51:08

Shares of Stellantis and Volkswagen dropped after some plug-in vehicles became ineligible for U.S. tax credits. Volkswagen’s ID.4 electric SUV no longer qualifies for the full $7,500 credit, along with models from Nissan and Stellantis. President Biden’s new guidelines require stricter domestic sourcing for battery components, reducing eligible models to 18. European automakers face challenges in the U.S. market, especially with potential policy changes under a returning Trump administration. Volkswagen aims to boost its U.S. presence with upcoming electric SUVs and trucks, appointing a new Americas division head for support. Stellantis struggles with product delays and inventory surplus in the U.S., leading to the CEO’s dismissal. The company also faces declining production in Italy, with passenger car output plummeting by 46% due to weak demand for models like the Fiat 500.



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