IIRC, the federal tax incentives phase out per manufacturer, based on the number of qualifying vehicles sold. So buyers of VW's newly-announced ID.4 will be able to claim the full credit, but buyers of Tesla's Model Y won't.
The ID.4 starts $40K base without destination charges or local taxes. Even with the $7.5K federal tax credit that's an incredibly expensive compact SUV (you can get full SUVs for $5K less, let alone compact SUVs).
I doubt it with multiple large manufacturers discontinuing cheaper cars and continuing to push up market. If there was a market for cheaper cars, there wasn't enough demand to be sustainable.
Lightly used cars have become far better value than new cheap cars.
