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Home » EV credit elimination could contribute to higher losses in ABS deals 

EV credit elimination could contribute to higher losses in ABS deals 

Moody’s projects EV adoption rate to fall to 6.1% in 2026 

Amanda HarrisbyAmanda Harris
December 2, 2025
in Capital & Funding
Reading Time: 5 mins read
0
An electric vehicle is charged at a dealership in Detroit.

Photographer: Matthew Hatcher/Bloomberg

Expiration of federal tax credits for new and used electric vehicles could contribute to price volatility, hurting recoveries and leading to larger net losses in auto asset-backed securitization transactions.  Moody’s Ratings projects the overall EV adoption rate to reach 25% by 2030, down from its initial forecast of 35% to 40%, largely driven by the […]

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