EV bubble bursting? Automakers lose billions as tax credits disappear

America’s largest automakers are retreating from their electric vehicle ambitions after taking staggering financial hits — a shift highlighted in a recent Wall Street Journal report revealing more than $50 billion in combined charges.

“Ford announced in December that it expected to take $19.5 billion in charges to retrench amid sinking EV demand. Together, Ford, General Motors and Jeep-maker Stellantis have now announced more than $50 billion in charges as they pull back on their EV ambitions,” the article in the Wall Street Journal reads.

“EV tax credit expiring, which was, of course, part of the Big Beautiful Bill, goes into effect late 2025,” BlazeTV host Stu Burguiere explains while looking at a chart from the Wall Street Journal.

“And you see monthly sales have dropped off by well over 50%, which is remarkable,” Stu says.

“Net profit, you see, everything going fine for these companies — General Motors, Ford, and Stellantis — until this EV credit goes away. Things drop through the floor. Again, when you’re building your business based on some government credit — if the only way it can succeed is if the government is giving you money, then you haven't built a business,” he explains.

“What you’ve built is a rent-seeking operation. What you’ve built is an opportunity to bilk other taxpayers to pay for your crappy business. That’s what we’ve built here with the EV bubble,” he continues.

And while other companies' EV sales are doing better than GM, Ford, and Stellantis, they are still dropping.

“The sales are dropping, and yes, they are dropping by more in the United States,” Stu says.

“Remember, if you have built a company, basically, that is completely dependent on the government giving you free money every time you sell something, you haven’t really built a business at all,” he adds.

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