While consumers are still reeling from the expiration of federal EV tax credits at the start of 2026, Google’s AI system is making matters worse by spreading misinformation about their availability.
Users searching for current EV incentive information are being fed incorrect answers about tax credits that no longer exist. Great job, robots.
The timing couldn’t be worse. EV sales had reached 9.1% market share before the credit vanished, and analysts now predict that number will plummet below 4%.
Some forecasts suggest U.S. electric vehicle sales could be cut in half—significantly worse than the 27% drop UC Berkeley researchers had estimated. Buyers made a mad dash to lock in the credit throughout 2025, creating an artificial sales bump that’s about to fall off a cliff.
Google’s AI is compounding the problem by delivering outdated or flat-out wrong information about the expired credits.
Consumers making major financial decisions based on search results might think they’re still eligible for thousands in tax breaks. They’re not. The credit is dead. Gone. Finito.
Relying on Google’s AI for tax advice? Sorry, but those EV credits are as dead as disco.
This technical failure highlights the limitations of AI systems that can’t seem to keep up with changing tax policies. These failures echo broader concerns about the 10-year moratorium on state AI regulation that was recently tied to broadband funding.
Search results contain conflicting information, leading to confusion at a critical time for the EV market.
The industry expects 2026 to be a brutal adjustment period.
But there’s some hope on the horizon. New affordable models like the revamped Chevy Bolt, Nissan LEAF, and Toyota CH-R BEV are entering the market.
Despite global EV sales reaching an impressive 13.9 million units in 2023, the U.S. market now faces significant headwinds without government incentives.
Honda’s Prologue and Hyundai’s IONIQ 5 add more options for buyers willing to go electric without Uncle Sam’s help.
Automakers are expected to implement price cuts to maintain sales momentum following the tax credit expiration, similar to how GM responded when previous credits expired.
References
- https://evinfo.net/2025/09/ev-sales-will-be-cut-in-half-when-tax-credit-expires-analyst-says/
- https://www.americanprogress.org/article/the-senate-republican-budget-bill-adds-broadband-funding-that-favors-musks-starlink-and-bans-state-ai-laws/
- https://techcrunch.com/2021/10/07/google-youtube-climate-change-denial-ban/
- https://www.brennancenter.org/our-work/research-reports/tech-companies-pledged-protect-elections-ai-heres-how-they-did
- https://www.helpnetsecurity.com/2025/11/05/google-cybersecurity-forecast-2026/
- https://www.planetizen.com/news/2025/12/136581-federal-ev-tax-credit-gone-no-one-told-google-ai
- https://radioigualada.cat/lacarta/62520/?s-news-23851723-2025-12-31-google-search-body-report-highlights-misinformation-and-technical-failures959311
