critics -- including some carmakers -- have criticized the administration for limitations placed, saying it's likely to slow down the adoption of EVs and leave drivers with few options.

"Certainly, it sets a high bar that that tax credit is eligible for batteries and vehicles that are produced in the United States or in North America or countries that we have free trade agreements with," Brian Deese, director of the National Economic Council, told Yahoo Finance Live (video above). "We think that that's an appropriate bar because what we want across time is to provide a strong incentive for us to have secure supply chains in those areas."
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Specifically, the new law restricts the full tax credit to EVs with battery material sourced from the U.S. or free-trade partners, starting in 2024. Any minerals or components sourced from "foreign entities of concern" including China would not qualify for the [MAX] $7,500 credit. Final assembly of the vehicle would also need to take place in North America. Adding to the restrictions, the law only applies to vehicles with a manufacturer suggested retail price (MSRP) below $55,000 for cars and below $80,000 for trucks and SUVs....