Nissan, BMW, Rivian, Volkswagen Lose Access To US EV Tax Credits: Report

Rivian Automotive Inc RIVN, Volkswagen AG VWAGY, Nissan Motor Co Ltd NSANY, BMW (Bayerische Motoren Werke ADR) BMWYY, Hyundai Motor Company HYMTF are among the companies reportedly losing $7,500 tax credit under new battery sourcing rules.
The new rules, effective April 18, will also cut Tesla Inc TSLA Model 3 Standard Range Rear Wheel Drive credits by half to $3,750, reported Reuters.
The vehicle models that will lose the credits include BMW330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf, Rivian R1S and R1T, Volkswagen ID.4.
The rules were laid out in March as part of the $430 billion Inflation Reduction Act (IRA).
According to the IRA, 50% of the battery components should be produced or assembled in North America to be eligible for the $3,750 credit.
The rules are intended to lower U.S. dependence on China for EV battery supply chains.
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