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Hyundai, Kia hit after Biden signs tax, climate and health bill

Automakers' share prices sink as their EVs not eligible for $7,500 tax credit

Hyundai's Ioniq 5. The outlook for Hyundai Motor electric vehicles in the U.S. is clouded by the country's Inflation Reduction Act. (Photo by Ken Kobayashi)

SEOUL -- Shares in Hyundai Motor and its smaller affiliate Kia are slumping on the outlook for its electric vehicle sales in the U.S. after President Joe Biden signed marquee legislation that excludes the South Korean automakers' EVs from up to $7,500 in consumer tax credits.

Hyundai's stock price fell 2.1% to close at 186,000 won on Thursday, following a decline of 3.8% on Wednesday, as investors worried the company might lose market share in the U.S. Kia dropped a steeper 2.5% to 76,700 won, which came on top of a decline of 4.0% the day before. The benchmark Kospi index, meanwhile, slipped just 0.3%. 

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