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“Ford Retreats from EV Tax Credit Workaround After GOP Backlash” 🚨🚨🚨

Ford (F $11.54, +0.35%) has decided to walk back a controversial plan that aimed to extend the now-expired $7,500 federal EV tax credit to some of its customers — just days after GM (GM $56.21, +0.52%) made the same move.

The automaker confirmed to Reuters Thursday night that it will no longer pursue the strategy, which involved using its financing arm to “purchase” electric vehicles sitting on dealer lots. That maneuver would have allowed Ford to technically qualify for the tax credit, then pass the savings to customers through leases.

However, the plan drew sharp criticism from Republican lawmakers, who accused Ford and GM of exploiting a loophole and “bilking taxpayers.” In response, both companies have backed off, citing political pressure and the need to maintain transparency in their EV programs.

The reversal could have a tangible impact on sales. Ford CEO Jim Farley recently warned that the loss of the $7,500 incentive could cut EV sales in half, a major setback as the company races to scale its electric lineup.

With both Detroit giants pulling back, the decision underscores the growing political tension around EV incentives and the uncertain road ahead for automakers navigating the transition to electric mobility.