US automakers should now prove they can stand on their own

When the federal government's electric tax credits expired on Sept. 30, Hyundai made its move.

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The Korean automaker knocked as much as $10,000 off the price of its EVs in the U.S., more than making up for the taxpayer-funded $7500 credit the GOP canceled years ahead of schedule in its “One Big Beautiful Bill Act.” So, were Hyundai and the rest gouging Americans all along, using the tax incentive to greedily jack up profits? Doesn't look that way: Market leader Tesla makes a decent profit, but for most other automakers, gas-powered vehicles have been much more profitable than their battery-operated counterparts. The credits were always meant to be temporary, and they've run their course. Whether Americans actually want electric vehicles is a question politicians can't answer — only the market can.

Automakers should now prove they can stand on their own. As always, this page is skeptical when the government tries to pick winners and losers across the economy. Central planners never do as good a job as a free market in allocating resources, and tax-dollar giveaways rarely succeed as intended. With the demise of the credits, Americans miffed at Democrats for trying to force EVs on them can claim a victory of sorts. Yet the outlook is fraught because of one big problem: China.