Federal and state subsidies and regulatory credits for EVs totaled nearly $22 billion in 2021, or nearly $50,000 per EV, socializing the true cost of these vehicles to taxpayers, utility ratepayers, and owners of gasoline vehicles.

Key Points:

  • The cost of producing electric vehicles (EVs) is far higher than the prices they are being sold for. Nearly $22 billion in federal and state subsidies and regulatory credits suppressed the retail price of EVs in 2021 by an average of almost $50,000.
  • Thanks to an unlawful multiplier, EVs receive nearly seven times more credits under federal fuel efficiency programs than they provide in actual fuel economy benefits.
  • Regulatory credits with bonus EV multipliers from federal fuel efficiency and greenhouse gas emissions standards and state EV sales mandates provide an average of $27,881 in benefits per vehicle for producers of EVs.
  • Home and public charging stations used by EVs put a significant strain on the electric grid, resulting in an average of $11,833 in socialized costs per EV over 10 years, which are shouldered by utility ratepayers and taxpayers.
  • Direct state and federal subsidies for EVs average $8,984 per vehicle over 10 years.

Read the one pager here and the full study here.


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