American made is decided by the amount of U.S. made content is inside the vehicle, not the location of the company or the factory. I believe 70% or more is required, last time I checked.,There most definitely should be a cap or tiered system. the only question is at what level(s).
Offering a $7,500 tax credit on a $1M+ EV (Rimac, etc) does not increase EV adoption.
The Model S Plaid and Lucid Air Dream sales numbers would not move much - if at all - with a lower or even eliminated federal incentive (in the case of the Tesla, numbers would not increase by adding one).
EVs that sell at well over $100K will likely pick up few (if any) sales numbers by throwing in $5K. They might sell with more options, but very few people that would otherwise buy an ICE would decide on an EV instead.
The "American Made" part gets sticky. The Mach e is made in Mexico by a company based in the US. The ID.4 will be made in the US (in a year or so) by a company based in another country. Which would qualify as "American Made"? Or is it based on a country of origin for parts with a minimum US%? This kind of provision creates too much room for games, red tape and loopholes.