https://jalopnik.com/ev-credits-mostly-go-towards-rich-people-who-would-buy-1835233701
And, for the 109,449 EVs purchased in 2014:
This is critical, the researchers note, because assuming EV buyers are replacing vehicles with average fuel economy would overstate the environmental benefits EVs have had by 27 percent.
...
Still, the broader conclusions the paper reaches with their model aren’t too out there: in 2014, EVs were generally much more expensive than the median car, so the maximum $7,500 tax credit didn’t balance out the price difference. It makes sense EV buyers would value EVs for reasons that go beyond pure cost comparisons.
Nevertheless, from a public policy standpoint, this raises important questions about the tax credit. Why pay rich people to buy a car they’re already going to buy, or to buy a slightly more efficient car than the one they might have otherwise bought?
For one thing, this is simply how new technology tends to work: it’s expensive at first, rich enthusiasts are the only ones who can afford it, but that spurs further cost-cutting innovation and mass production, until eventually it reaches a price the masses can afford. Taking the researchers’ model at face value, that still means about one in three EV buyers during a critical growth phase were spurred to buy EVs at least in part due to the federal tax credit.
Indeed, the researchers don’t use these conclusions to argue against government tax credits for EVs, especially now that the industry has matured some. Instead, they argue the findings suggest the efforts need to target price-sensitive consumers—especially those with lower incomes who may want an EV but can’t afford one—or those driving fuel-inefficient vehicles where the environmental benefits would be greatest. California’s Clean Vehicle Rebate Project already takes household income into account, but there’s currently nothing in the country that additionally incentivizes replacing gas-guzzlers. Maybe there should be.
Good question. Sounds like a waste of taxpayers money. Perhaps any our of GID residents who have or currently own an EV can speak to this.