President Donald Trump on Tuesday threatened to strip General Motors of a tax credit that makes its electric vehicles more affordable for car buyers, escalating a dispute with the automaker over its plan to halt production at several American plants.
There's just one problem with the threat: GM is on the verge of losing the tax credit anyhow.
@realDonaldTrump: Very disappointed with General Motors and their CEO, Mary Barra, for closing plants in Ohio, Michigan and Maryland. Nothing being closed in Mexico & China. The U.S. saved General Motors, and this is the THANKS we get! We are now looking at cutting all @GM subsidies, including ....for electric cars. General Motors made a big China bet years ago when they built plants there (and in Mexico) - don't think that bet is going to pay off. I am here to protect America's Workers!
The IRS offers car buyers a tax credit of $2,500 to $7,500 when they purchase an electric vehicle for use in the United States. However, after an automaker sells 200,000 electric vehicles, that manufacturer gets phased out of the program over the course of about a year.