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Toyota Runs Out of US Tax Credits for EVs, Joining Tesla and GM

  • Automaker has crossed 200,000-car cap on $7,500 subsidy
  • Japanese company has been lobbying to extend tax credits
A Toyota RAV4 Prime plug-in hybrid SUV.
A Toyota RAV4 Prime plug-in hybrid SUV.Photographer: Kyle Grillot/Bloomberg

Toyota Motor Corp. has used up a key US tax credit for hybrid and electric vehicles, a milestone that the automaker says will raise its costs and hinder adoption of climate-friendly cars.

The company said Friday that it sold 3,876 plug-in hybrid and electric cars in June. The US allows automakers to offer a $7,500 tax credit to buyers of fully or partly electric cars, but only up to 200,000 per company. Toyota’s cumulative sales of eligible vehicles have now surpassed that threshold, according to data compiled by Bloomberg and confirmed with the company.