The adoption of electric vehicle (EV) trucks will heavily rely on financing, state incentives, and support from Original Equipment Manufacturers (OEMs) following setbacks from President Donald Trump’s One Big Beautiful Act.
Though various industry groups have praised the new law for reinstating 100% bonus depreciation, it has removed the federal Commercial Clean Vehicle Credit. This program, which is set to end on September 30, offers a tax credit of up to $40,000 for commercial EVs weighing over 14,000 pounds.
The removal of this credit not only intensifies affordability issues but also suggests a potential decline in the domestic production of EV trucks and their components, according to Josh Green, CEO of EV fleet management firm Inspiration Mobility.
“You’re already seeing vehicle OEMs either scaling back investments in new U.S. plants or reducing production at existing facilities.”
— Josh Green, CEO, Inspiration Mobility
Green noted that Inspiration Mobility had advocated for a gradual phase-out of the credit to lessen the impact of its discontinuation, as it disrupts long-term plans for many fleet operators.
“Now they essentially have to start over since all the costs have changed,” he stated.
Importance of Financing and State Incentives
With the reduction of federal incentives under Trump, state programs have become vital for the commercial EV sector, according to Paul Gioupis, CEO of Los Angeles-based Zeem Solutions, which focuses on EV truck leasing and infrastructure.
Zeem Solutions recently partnered with the Northwest Seaport Alliance, receiving a $6.2 million grant from Washington state to help mitigate high EV truck costs and advance charging facilities.
“When the public sector commits to investing, it instills confidence in fleet operators, OEMs, and charging providers to make their investments.”
— Paul Gioupis, CEO, Zeem Solutions
Additionally, reducing federal incentives opens doors for alternative financing models, according to Gioupis. Traditional lenders have historically been cautious due to uncertainties surrounding resale value and battery life.
“However, recent data shows that these vehicles perform well while also offering cost savings, which should foster the growth of a secondary market for used electric commercial vehicles,” he added.
Need for OEM Support
Green emphasized the necessity for truck OEMs to enhance incentives or reduce initial costs in light of the expiring EV tax credits. Moreover, he believes that major OEMs should allocate more resources towards promoting EV adoption.
“I don’t think these OEMs are fully committed to electrification,” Gioupis commented. “We need to lower vehicle prices. China is competitive largely due to their low battery costs. We must innovate and do better.”
He mentioned that Tesla’s upcoming heavy-duty truck production could significantly impact the commercial EV landscape, noting their unwavering focus on EVs.
“Despite Tesla’s mixed popularity, their truck outperforms all competition, and I believe it will drive prices down across the board as it did with their other EVs,” Gioupis concluded.
