The federal electric vehicle (EV) tax credit expires at midnight, ending a 17-year policy pillar that helped close the price gap with gasoline vehicles and turbocharged adoption; the immediate fallout is likely softer demand, leaner EV production, and a strategic pivot by legacy automakers toward hybrids and profitable ICE nameplates, while stopgap leasing workarounds cushion some of the blow.

The end of the subsidy is a structural shock already rippling upstream : battery makers face a growing US surplus and shelved factory plans, undermining stated re-shoring ambitions and setting up a whipsaw risk of future shortages if capacity is cut too deeply.

Ford CEO Jim Farley, speaking at the Ford Pro Accelerate summit in Detroit on Tuesday, said he sees a huge impact from the policy change.

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