-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
EV and Battery Credits
- Thread starter Buckminster
- Start date
I have a hunch the IRA was written to exclude Tesla mainly because the government didn't want to shell out all that money for rebates on Tesla's huge sales volume compared to other EV manufacturers.
NOW, they will have to pay those rebates anyway!
I don't know if that "breaks" the IRA, but I'm betting the people who wrote the IRA bill are now slapping their heads wondering how they can amend it to once again exclude Tesla....
Seems all Model Y now qualify under the $80000 MSRP for the tax credit. No more 5 or 7 seats difference:
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.www.irs.gov
Same for other OEM it seems ( I only checked Ford for the Mach-e):
Edited to add the link: Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service
I have to wonder if Tesla's price war forced their hand on this? Too many non-Tesla SUV EV's were going to get crushed under the MY5.
I also wonder if Tesla will simply keep their new prices, thereby keeping the pressure on other OEM's anyway?
I wonder when the Model 3 LR AWD is coming back - maybe after the rumored refresh supposedly around the corner?
I think the problem is that they DO use those materials to build their own batteries, but they put them in EV cars which they ship to the USA, thus negating some or all of the IRA incentives, even for cars which may have been CKD, then rebuilt or final assembly in the USA. So, that is what has made the EU OEM’s at least a bit testy.
Seems to be minerals only. ie. minerals shipped to USA for final assembly. EU will probably win that one. Final assembly equivalence would be separate and I would think a long shot.
EU pushes against 'Made in USA' rule for EV support
bkp_duke
Well-Known Member
Final assembly would be directly against the wording of the IRA, it would require new legislation to get around that.
Yes, we would expect that due to the U.S. Treasury Dept. announcing IRA rebates in mid-Dec 2022, which shifted demand from 22'Q4 into 23'Q1.
Now it remains to be seen if Treasury will pull a similar stunt on the final day of Q1, and announce that (SURPRISE!) 'as of tomorrow, no more China LFP gets the $3750).
Personally, I think this is one of the reasons Elon went to Washington, D.C. back in January. After the Treasury stunt at the end of last Quarter, Elon had the opportunity to make public Supercharger Access a reality with Magic Dock, and (I hope) he told them the roll-out would continue s-l-o-w-l-y if Treasury tries to jerk the rug out from under 3SR/LFP sales.
All Tesla needs is reasonable notice to make the changes to their logistics, and to notify their suppliers. Each already has the technology to resume building std rge packs in N. America (that's what Model 3SR+ had when 1st introduced in Q2019), and the IRA bty benefits together with lower shipping costs vs MiC LFP make the retail margins comparable to before any such IRA restriction.
So Tesla just needs reasonable notice. Tomorrow, we'll find out if this Administration will be reasonable in dealing w. Tesla (we already know what hedgies will do).
Cheers if they do; Jeers if they don't!
Wait. Why would Tesla hamper their ability to sell more cars? If anything, Tesla would probably drop the Model 3 RWD base price.
Anyway, there are tons of these cars in inventory in Greater LA at the moment - I counted 56. Let's see if this notice moves inventory in the next day.
Good update from Rob - 26 mins in.
Covers possible impact on Tesla but more importantly, could be devastating for non Tesla vehicles.
