Tesla customers cite incentives as factor behind EV purchase: J.D. Power study
A J.D. Power study reveals that a significant number of Tesla customers attribute their electric vehicle purchases to federal incentives. The report indicates that 72% of Tesla buyers, along with 81% of Volkswagen and 77% of Chevrolet buyers, cited incentives as a key factor in their decision. In contrast, brands like Hyundai and Toyota showed lower percentages of incentive-driven purchases. The average savings from federal EV tax incentives for 2024 is $7,124, an increase from previous years.
Elon Musk may argue that Tesla does not need federal incentives, but it appears that a large portion of the company’s customers cited incentive programs as one of the key reasons behind their EV purchase. This is, at least, as per J.D. Power’s E-Vision Intelligence Report.
As per J.D. Power’s study, tax credits are quite influential among buyers of premium electric vehicles. Among premium brand EV owners, 64% stated that incentives were a primary reason for their decision to purchase or lease a premium electric vehicle. For those opting for mass-market electric cars, the influence of incentives was slightly lower but still notable at 49%.
Customers of Volkswagen, Chevrolet, and Tesla electric vehicles cited incentives as drivers for their EV purchases. Overall, 81% of Volkswagen EV buyers chose their vehicle due in part to the Clean Vehicle Credit. The same was true for 77% of Chevrolet buyers and 72% of Tesla customers. Tesla ranks highest among premium segment brands in terms of the influence of tax credits on purchase decision, as noted by J.D. Power in a press release.
The results of VW, Chevy, and Tesla’s customers contrast with brands like Hyundai, Kia, and Toyota, where only 32%, 24%, and 21% of customers were similarly motivated. It should also be noted that among the respondents of J.D. Power’s study, 43% of EV shoppers stated they only have a vague or marginal knowledge about EV incentives.
J.D. Power’s study highlighted the benefits that customers get from federal incentives. On average, consumers who purchase or lease an electric vehicle in 2024 saved an average of $5,124, thanks to federal EV tax incentives. This is higher than in 2023, when customers saved an average of $4,302, or in 2022 when customers saved an average of $1,629 due to federal tax incentives.
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