According to stricter rules that take effect on January 1st, $Tesla (TSLA.US)$ the Cybertruck is eligible for a federal tax credit of up to $7,500 in the USA for the first time this year, and these rules also eliminate federal subsidy eligibility for Other Battery vehicles.

The US Energy and Environmental Protection Agency stated that currently, there are only 18 qualifying electric vehicles and plug-in hybrids for subsidies, down from 22 last year. As part of the Inflation Reduction Act signed by President Joe Biden, this credit has tightened the domestic procurement requirements for Battery components and manufacturing materials.

As overall demand for electric vehicles has weakened, the number of qualifying electric vehicles has decreased with elected President Donald Trump's threat to terminate the federal subsidy program as he prepares to take office later this month.

It is understood that Tesla faced aggressive sell-offs in 2024 due to the slowdown in electric vehicle demand. However, with the support of Tesla CEO Elon Musk, who strongly backed Trump, winning the US presidential election, Tesla's stock price soared in response. The market is betting that Tesla will benefit immensely from the relationship between Musk and Trump.

The market generally believes that the Trump administration may reduce tax incentives for electric vehicles, while Tesla, leveraging its scale advantage, is expected to gain a larger market share in a non-subsidized environment. Meanwhile, Trump's tariff policy may further enhance Tesla's competitiveness in the US market, as Tesla has a relatively complete supply chain in the USA.

In addition to four Tesla models (including Cybertruck), electric vehicles from nine other brands are also eligible, including Hyundai's Ioniq 5 and Ioniq 9, as well as its sister brand Kia's EV6 and EV9.

New car buyers also face restrictions on income and vehicle prices, which may affect their eligibility for subsidies.

According to the latest list from the USA government, Volkswagen's ID.4 crossover has lost the full $7,500 tax credit. Some electric vehicles and plug-in hybrid vehicles produced by Ford Motor, Nissan Motor, Rivian Automotive, Stellantis, and Volkswagen previously qualified for tax credits of up to $3,750 but no longer meet the criteria.

As news breaks of the Cybertruck qualifying for tax credits, the model made headlines when an explosion occurred outside the Trump hotel in Las Vegas on Wednesday, with the incident being investigated as a potential act of terrorism.

Additionally, data shows that Tesla delivered 495,570 vehicles in the fourth quarter, while analysts expected 512,277 deliveries, breaking last year's record of 484,507. In the fourth quarter, Model 3/Model Y deliveries totaled 471,930, with analysts expecting 484,575 deliveries. According to CNBC's estimates, in 2024, Tesla's total deliveries/sales are expected to be approximately 1.79 million vehicles, compared to the 1.8 million delivered the previous year.

Affected by the fourth-quarter delivery numbers falling short of expectations, Tesla's stock price fell by 6% on Thursday.

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