That tax break is not for the 1% but for middle class people who could not afford an electric car without it, or wouldn't otherwise want to spend the full amount on such a vehicle. That in turn has made the market for electric cars an attractive one, where it is economically viable to design, manufacture and sell EVs in larger numbers. With the market (and infrastructure) for EVs reaching a certain critical mass, there's a huge incentive to research technologies to further drive down prices and/or increase range and efficiency. Some believe that the critical mass has already been reached, which makes further electrification "an irreversible trend." This would probably have happened without subsidies as well, but a lot later. And once the market takes off, subsidies can be decreased. In my country this is already happening; the Luxury/Pollution Tax on EVs is still 0% I believe (this tax exceeds the factory price for the more ridiculous SUVs), but companies no longer get the Small Scale Environmental Investment subsidy when they buy an EV, and the income tax payable on company cars is no longer 0% either.