While the loss of the tax credit will hurt sales short-term, it also removes the "government mandate" attack line used by politicians. This forces EVs to be judged as just another car, allowing them to compete on their own merits like lower operating costs and better performance.

Taylor Swift's overseas-manufactured vinyls are exempt from import tariffs due to the Brennan Amendment, a Cold War-era rule designed to ensure the free flow of 'informational materials' like books and music. This obscure regulation keeps album prices stable, directly impacting the profitability of physical media sales in the modern music industry.

With a key government subsidy gone, Tesla is using a rental model as a 'try-before-you-buy' tactic. This shift indicates EV companies must now rely on creative sales funnels and direct product experience, rather than financial incentives, to convert hesitant customers.

German automaker Volkswagen can now develop and build an electric vehicle in China for half the cost of doing so elsewhere. This shift from simple manufacturing to localized R&D—the "innovate in China for the world" model—signifies a dangerous hollowing out of core industrial capabilities and high-value jobs in Western economies.

China is restricting exports of essential rare earth minerals and EV battery manufacturing equipment. This is a strategic move to protect its global dominance in these critical industries, leveraging the fact that other countries have outsourced environmentally harmful mining to them for decades.

Despite devising a clever, IRS-approved leasing scheme to extend EV credits, both companies immediately abandoned the plan after a few senators threatened an investigation. This rapid reversal highlights the auto industry's extreme sensitivity to political pressure, even when legally in the clear.

The administration killed a tax credit that directly spurred billions in investment for new EV and battery factories, primarily in Republican-led states. This move is described as "the most anti-manufacturing thing that you possibly could do."

The credit's requirements for North American manufacturing and sourcing from trade partners were designed to counter China's dominance in the EV supply chain. Its elimination undermines this strategic goal, leaving tariffs as the primary, less effective tool.

The belief that consumers needed electric versions of familiar gas-guzzling trucks and SUVs led to EVs that were too big, heavy, and expensive. The market is now forcing a pullback from this strategy towards smaller, more efficient, and profitable designs.