Continue Reading Below
On April 1, the credit drops from $7,500 to $3,750 – a result of GM selling more than 200,000 electric vehicles. That number declines again on Oct. 1 to $1,875 and eventually zeroes out on April 1, 2020.
The Detroit-based carmaker will not lower its prices as a result of the declining federal subsidy, but will use incentives to "remain competitive," a spokesman told FOX Business.
GM is the second company to cross the 200,000 unit threshold, after Tesla reached it in July 2018.
|GM||GENERAL MOTORS COMPANY||39.72||-0.11||-0.28%|
The carmaker introduced a lower-priced $35,000 version of its Tesla Model 3 to entice consumers in absence of the full credit, which will drop to $1,875 on June 1.
GM plans to introduce a slate of new electric vehicles in the coming years. CEO Mary Barra recently announced a $300 million investment in a Detroit plant to expand production of emissions-free cars.