Electric Cars

Chevrolet won't make the Bolt any cheaper, despite reduced EV tax credit

GM will work to make the Bolt affordable at the dealer level, but won't change the sticker price.

The Bolt has been one of the best and most-affordable Tesla alternatives since it came out, but how will it sell as its tax credit tapers off?

Antuan Goodwin/Roadshow

When Tesla became the first manufacturer to hit the 200,000-vehicle threshold that triggers the tapering off of the federal EV tax incentive, it dropped prices slightly on all its models to help compensate.

General Motors is the second manufacturer to hit that threshold, but it has no plans to make the Chevrolet Bolt EV any cheaper when its EV credit gets halved on Monday, according to a report published Thursday by Automotive News.

"It is easier to react to the market by working with dealers and your marketing team than it is to change sticker prices," said Jim Cain, a spokesman for General Motors, in a statement to Automotive News.

Why would GM not want to compensate for what can amount to a $3,750 price hike for potential buyers? Probably because the Bolt is just GM's opening salvo in a huge push towards electrification. The automaker has committed to creating as many as 20 new battery-electric models in the coming years.

If you're not relying solely on one model or one kind of powertrain, you're a little more flexible. That's also true because GM is a massive corporation compared to Tesla. It can weather changes in sales for one model a little more effectively than can a smaller company that only has three product lines.

Chevrolet didn't respond immediately to requests for comment.