Prof G Markets EV Tax Credit Comes to an End & Why Trump Rx Will Not Fix High Drug Costs
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Oct 2, 2025 
Jon McNeill, former president of Tesla and current CEO of DVX Ventures, discusses the implications of the EV tax credit's expiration for prices and market demand. He shares insights on the global EV landscape, including the competitive pressures from China. Joining him, Courtney Breen from Bernstein Research analyzes the TrumpRx initiative, revealing why it may not effectively tackle high drug prices. They delve into who benefits from the initiative and touch on dynamics in the pharmaceutical industry, emphasizing potential trade-offs for consumers and companies alike.
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EV Market Grows Even Without Credits
- EV demand will keep growing long-term despite subsidy removal, but growth will be choppy after policy changes.
- Jon McNeill highlights that more models and better product choice makes the market resilient post-credit.
Who Pays When Credits Vanish
- Price effects will vary across segments, with incentives compressing margins at lower price points and prices returning to normal at the top.
- McNeill expects some incentives around $30k–$35k models while premium models likely lose subsidy-driven discounts.
Push Cost Cuts To Compete
- Automakers should keep reducing battery and production costs to stay competitive without subsidies.
- McNeill notes GM's multi-generation battery improvements and scale help compete globally.