These Cars Might Be A Bad Deal If The EV Tax Credit Disappears

Despite very publicly promoting one specific brand’s electric vehicles, President Donald Trump’s “Unleashing American Energy” executive order states that federal policy is, “considering the elimination of unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies.” This is, of course, in reference to the $7,500 tax credit that has been available to buyers of new EVs as laid out by the Inflation Reduction Act of 2022. The incentive helps close the cost gap between gas-powered vehicles and comparable electric vehicles, thus promoting the transition to more environmentally friendly EVs that don’t produce any tailpipe emissions.

Some EVs are more compelling vehicles than their fossil fuel-powered, internal combustion engine (ICE) counterparts, but making Americans transition away from the only fuel source that most have ever used is a tough proposition. The tax credit can be the determining factor that makes consumers decide to go EV, but even with the tax credit, buying a brand-new EV might not be the smartest financial decision. EVs generally cost more than ICE cars upfront, but face steeper rates of depreciation than gas cars, so the prices of used electric vehicles are quite favorable. If the Trump administration revokes the EV tax credit, will it still be worthwhile to buy a new EV? In some cases yes, and some cases no. Here are some of the EVs that we think won’t be worth buying new if the tax credit goes away.

If your budget is tight enough that you’re concerned that the tax credit going away will put the Blazer EV above your price range, simply skip it. Chevrolet put itself in the unique position with the Blazer. The Equinox EV is a cheaper, slightly smaller but still family-sized electric crossover that will be a smarter choice for buyers who are concerned that the demise of the federal tax incentive will move the Blazer EV above their price range. I’ve driven both the Blazer EV and the Equinox EV, and I found the Equinox EV to be a more compelling choice.

The Equinox EV is only two-inches shorter than the Blazer EV, but it provides almost one cubic-foot more cargo capacity behind the second row of seats, and it provides less than one inch less rear legroom. Going for the cheaper Equinox doesn’t mean sacrificing range, either. Equinox EV has a maximum estimated range of 319 miles, and Blazer EV’s longest maximum range estimate is 334, so there’s not a massive difference there, either. The cheapest Blazer EV you can buy starts at $44,600 before destination, and the Equinox EV starts at $33,600.

It’s no secret that the various antics of the richest man on Earth and Tesla’s CEO Elon Musk has single-handedly ruined his company’s public image in recent months. If you must buy a Tesla, and you’re concerned about losing the $7,500 federal tax incentive, you’ll be happy to know that Teslas have some of the worst resale values of any vehicles on the used market. That means you can find killer deals on used Teslas. Alternatively, if you’re in the market for a new electric vehicle, other automakers produce vehicles that are on this list that offer superior alternatives to a Musk mobile. Alternatives like the Hyundai Ioniq 5, Chevrolet Equinox EV, Blazer EV, Ford F-150 Lightning, and Kia EV9 are all great choices that don’t put money into the pockets of the richest man on the planet. Some new EVs, like the Ioniq 5, even come from the factory with a NACS port, which means they have direct access to the Tesla Supercharger network. If you’re concerned that the disappearance of the federal EV tax credit will make a new Tesla too expensive, either buy a used one and save big time, or buy from a different, less problematic brand.

If you’re in the market for a General Motors-produced full-sized electric pickup truck and you’re concerned about losing the help of the $7,500 federal tax incentive, then you should skip over the GMC Sierra EV. For the same reason as we recommend skipping the Blazer EV and going for the cheaper Equinox EV, if budget is your primary concern, skip the GMC Sierra EV and go for the cheaper Chevrolet Silverado EV.

For the 2026 model year, GMC introduced a new base Sierra EV Elevation that starts at $64,495. The federal tax incentive only applies to vehicles with manufacturer suggested retail prices (MSRPs) below $80,000, so no 2025 GMC Sierra EVs qualify since the truck is only offered in its extra fancy and expensive Denali top trim. If you’re budget-focused and are worried about losing the $7,500 federal tax incentive, then you should consider the Chevrolet Silverado EV. The Silverado EV Work Truck trim starts at $57,095 including a $2,095 destination charge, so it’s $7,400 cheaper than its GMC sibling. The numbers align almost perfectly; if you’re worried about the $7,500 tax incentive on a GMC Sierra EV Elevation, buying a Silverado EV Work Truck saves you $7,400.