Hyundai has placed a substantial bet on the future of electric vehicles in rural Georgia. The South Korean auto giant recently inaugurated a new electric-vehicle factory west of Savannah, representing a $7.6 billion investment. This project, the largest economic development initiative in the state’s history, even merited a dedicated “Hyundai Day” resolution from the Georgia statehouse. Currently, workers at the “Metaplant” are producing the popular Hyundai Ioniq 5 electric SUV, with plans to expand production to include additional EV models. To support these vehicles, Hyundai is also establishing a battery plant on-site and investing billions more in another facility elsewhere in Georgia.
Hyundai’s strategy is designed to ensure that the Ioniq 5, and other future electric cars in development, qualify for tax credits introduced by the Inflation Reduction Act. These credits provide rebates for American-made EVs, potentially saving consumers thousands of dollars and thus making them more attractive. However, Hyundai’s nearly $13 billion investment faces a potential hurdle. Former President Donald Trump, during his second term in office, has indicated his intention to eliminate these tax credits. Such a move could significantly hinder EV sales, potentially leading Americans to favor gasoline-powered vehicles, which would continue to generate emissions for years to come.
The potential problem is even more significant than it seems. The automotive industry is collectively investing over $300 billion to achieve the Biden administration’s EV targets. Many automakers are already experiencing financial losses on their EV ventures, and repealing incentives could give them an excuse to scale back their EV plans, thereby limiting consumer choices for clean transportation.
Despite potential challenges, Hyundai may be uniquely positioned to maintain American interest in electric vehicles. The Hyundai Motor Group, encompassing Hyundai, Kia, and Genesis, has established itself as a strong second to Tesla in EV sales this year. Their electric vehicles boast competitive prices, impressive battery ranges, and advanced features. The Hyundai Ioniq 6 sedan, for example, offers similar pricing to the Tesla Model 3 and features faster recharging capabilities. Furthermore, Hyundai’s offerings cater to needs previously unmet in the EV market, such as the Kia EV9, which provides spacious three-row SUV options for families. Robby DeGraff, an analyst from AutoPacific, noted that Hyundai’s diverse lineup gives it an edge over Tesla. In his opinion, Hyundai’s offerings are a real strength, especially because “Tesla lacks” this kind of variety.
While there are some surprises to the industry, even as Elon Musk has expressed support for Trump’s stance on EV incentives, Tesla is one of the few companies that’s profitably producing EVs at scale. This financial strength allows Tesla to better withstand the loss of tax credits compared to other players. If the EV tax credits were to disappear immediately, start-ups like Rivian and Lucid Motors would face significant difficulties. They are still in the early and money-losing stages that Tesla experienced for almost two decades, lacking the economies of scale needed to sell EVs at high volumes and competitive prices. Their EVs are still relatively expensive, requiring all the help they can get to navigate the challenges. Even established companies like Ford are facing difficulties, already scaling back on EV plans as sales fail to meet expectations and costs rise. It would be difficult to justify more EVs without government support to attract consumers.
Beyond Tesla, General Motors is also well situated to navigate this landscape. Having implemented a surprising turnaround of its electric vehicle operations after a difficult 2023, GM is also making more affordable EVs while nearing profitability.
Then there is Hyundai. Along with Tesla, the company is one of the major players in the United States to be making money from EVs and is releasing new electric models at a rapid pace. Hyundai’s EV push has been a highlight for an industry battling mounting losses and strategic problems. In 2024, Tesla’s sales have declined, potentially due to its lineup of EVs feeling a little stale. Besides the Cybertruck, priced at nearly $80,000, Tesla hasn’t brought out a new model since 2020. Tesla has repeatedly promised an electric car for under $30,000 but has not delivered it as it shifts its focus to robotaxis.
In comparison, Hyundai’s EVs are surpassing Tesla’s. For example, the Kia EV3, a high-range compact car, will likely be priced at $35,000 when it comes to the U.S. in 2026. At the Los Angeles Auto Show, all three Hyundai brands displayed new models able to access Tesla’s Supercharger network directly from the factory. This will allow Hyundai’s brands to sell as many EV models with Tesla’s plug type as Tesla does. On the other hand, Hyundai has an EV that simulates engine sounds and gear shifts from a high-performance gas car while remaining emissions-free. They are also incorporating features that Teslas have barely started developing, such as powering entire homes during emergencies. As José Muñoz, Hyundai’s Global CEO, stated: “we generally believe this is going to be what the customers will demand.”
Hyundai has made notable strides since the early 2000s, when its cars were often the subject of jokes. For American buyers, Hyundai cars were attractive as they were cheaper than comparable Honda or Toyota models, but of lesser quality. Today, it’s about bringing Tesla-level technology to the “traditional” car industry. In recent years, Hyundai has recruited some of the best design and engineering talent, becoming a leader in these areas. It acquired Boston Dynamics to enter the robotics space, created a deal to provide EVs for Google’s Waymo taxi service, and became the first brand to sell new cars on Amazon.
The irony of Hyundai’s transformation is that the South Korean government helped it with the kind of regulatory support that Trump may now cut off for the United States. This aid included incentives to support the country’s battery industry, relying on Korean tech companies such as LG, SK On and Samsung to reduce reliance on China, which currently controls the battery sector. With about 8,000 jobs at the Georgia Metaplant alone, the U.S. seems to benefit from Hyundai’s revival as much as its home country. The economic considerations for maintaining EV incentives may end up saving them. Georgia Governor Brian Kemp, a Republican, has been a major supporter of Hyundai’s investments in Georgia; most of the money under the U.S.’s Inflation Reduction Act of 2022 has gone to Republican districts.
Should Trump eliminate EV tax credits, Hyundai is still in a good position. DeGraff observed that Hyundai’s decision to build EVs and their batteries within America should keep their costs down. This is especially true with the threat of tariffs, which may increase from cars made in Mexico and South Korea. The company can’t do much to keep selling electric cars without EV tax credits. Hyundai has greatly benefited from a loophole that makes it cheaper to lease EVs, and without those discounts, buyers may find it hard to resolve the issues of charging while considering range anxiety. DeGraff’s firm found that 75% of potential buyers believe tax credits play a key role in EV buying. Ultimately, Hyundai’s large EV investments in America raise a key question: will Americans keep buying EVs even if they are not receiving financial assistance for it?
Consumers will likely continue to purchase EVs if they represent a good deal, which plays to Hyundai’s strengths. “Affordability will continue to be the main make-it-or-break-it [factor] for EV shoppers, especially if we see a wave of new tariffs applied to literally everything outside of the automotive space that will consequently squeeze Americans’ wallets even tighter,” DeGraff noted. Trump’s policies will almost certainly impact EV sales, but he won’t entirely dictate the cars that Americans buy. During his upcoming presidency, car companies will be pushed to create EVs Americans want, regardless of environmental concerns. The promise that Hyundai quietly offers is its plan to get there: Whether or not there are tariffs or tax credits, it’s hard to not resist a good deal on a good car.
