Shares of Ford (NYSE: F) rebounded partly from Monday's 7% stock sell-off, gaining 3.6% through 11:10 a.m. ET this morning.
Ford stock appears to be responding to news that first emerged midday yesterday but seems to have been lost in the panicked sell-off. Ford and fellow automakers General Motors , Stellantis , and Toyota are lobbying Congress for an expansion of income tax credits tied to the purchase of electric vehicles (EVs) .
Under current law, Congress allows new-car buyers to claim as much as a $7,500 federal income tax credit when they purchase an EV -- up to a point. Once an automaker has sold 200,000 EVs, tax credits for further sales begin to phase out. Ford rival GM has already hit this cap, as has Tesla , although Elon Musk went on record last year saying he no longer wants or needs subsidies from the federal government.
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Why Shares of Ford Took a U-Turn on Tuesday