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Motor Trend Magazine - February 2018 Edition - What will Trump Presidency may mean . . .

Discussion in 'Model 3' started by Darryl, Jan 3, 2017.

  1. Darryl

    Darryl ModelXTracker.com Co-Adm

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    There is an article in the February 2018 edition (page 20) of Motor Trent magazine titled "What the Trump presidency may mean for the future of the auto industry."

    It covers many topics but the one I think most EV purchasers will be interested in is the one titled "Electric Cars". It goes into Trump's plan to slash wasteful government spending and the possibility he will do away with the $7,500 federal tax credit for purchasing electric vehicles. It says if Trump were to use his line item veto to do away with this credit it would put a "sting" in the launch of he Chevy Bolt and Tesla Model 3. This is only one of many articles I have seen recently which says Trump is leaning in this direction.

    From my opinion those who purchase EV's by the end of 2017 are probably safe but it sounds like 2018 and beyond will be a like shooting craps. I think his appointment of Myron Ebell to lead the EPA is an indication how little he cares about zero emissions, protecting the environment and global warming.

    I doubt based on past experience whether Tesla could produce more than 50k cars this year. I think that will be a stretch. A lot of these would go to employees and current Tesla owners, etc.
     
  2. renim

    renim Member

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    the $7,500 credit always had a 200,000 vehicle limit per manufacturer. GM and Tesla will use up their limit anyway.

    Why is there a 200,000 limit per manufacturer?
    So that the credit could be cut, after GM uses up their limit but not exceeded by competing Japanese suppliers before GM uses up their limit.

    If the GM Bolt is successful, then its mission over, the rebate can fade away.
     
  3. Big Dog

    Big Dog Member

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    perhaps the article was written by a constitutionally-challenged former student. (A U.S. President does not have a line item veto authority. It's all or none.)
     
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  4. Pando

    Pando Member

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    I hope you also brought back that sports almanac...
     
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  5. Darryl

    Darryl ModelXTracker.com Co-Adm

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    Yes the 2017 and yes no line item veto. He Could eliminate the credit without it.

    No one seems to know exactly how many cars Tesla sends out of the country but they will probably reach the 200,000 in late in 2017 or early 2018. After they meet the 200,000 it continues for another 4 quarters (it may be 3) at a reduced rate.
     
  6. Darryl

    Darryl ModelXTracker.com Co-Adm

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    Yes the 2017 and yes no line item veto. He Could eliminate the credit without it.

    No one seems to know exactly how many cars Tesla sends out of the country but they will probably reach the 200,000 in late in 2017 or early 2018. After they meet the 200,000 it continues for another 4 quarters (it may be 3) at a reduced rate.
     
  7. Dwdnjck

    Dwdnjck Member

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    I don't think GM would be happy if they got rid of the $7500 credit. That would make the Bolt a really tough sell.
     
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  8. gregincal

    gregincal Active Member

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    Beside which, you can't veto something already written into law. The only way the credit goes away is if congress passes a law repealing it.
     
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  9. brucet999

    brucet999 Active Member

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    Line item veto, in states where it exists, is primarily used in budget bills, so even a provision of an existing law could be neutered by eliminating its funding in later years. All academic, really, since there is no presidential line item veto and Congress rarely passes a budget.
     
  10. Big Dog

    Big Dog Member

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    Uh, no. A Prez cannot unilaterally rewrite the tax law. It would take an act of Congress first, and then he could sign a new bill without the credit (or with something else).
     
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  11. Haxster

    Haxster Member

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    If you think Obama overused "Presidential Executive Order", just wait...
     
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  12. kort677

    kort677 Active Member

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    #12 kort677, Jan 4, 2017
    Last edited: Jan 4, 2017
    he can? I thought that only the house of representatives could implement tax laws.


    here's some free advice, know what you are talking about before parroting some nonsense you found in a media report.
     
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  13. kort677

    kort677 Active Member

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    you base this prediction on what source of information?
     
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  14. McRat

    McRat Active Member

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    It will be up to Congress to determine how much money and which programs are funded.

    The President can veto the budget, thereby nullifying the majority the Republicans enjoy. They will have to compromise.
     
  15. gregincal

    gregincal Active Member

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    There is no "funding" here. It's not a rebate, it's just an allowed credit in the tax code like being able to deduct interest from home loans. Congress would need to pass a bill to change the tax code to eliminate the credit.
     
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  16. Big Dog

    Big Dog Member

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    the tax credit is specifically written into law. There is no judgement here that the Admin can assume anything else. Of course, the new Prez can always ask the Congress to change the law as part of the new Tax bill, but he can't do it alone with a 'pen and a phone.'

    Per IRS.
     
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  17. ricardocabesa

    ricardocabesa STD free

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    But you failed to mention it's phased out over time,not cut off at 200k.
     
  18. osu_cowboy_007

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    Maybe he and congress/senate change the law so that only cars made in America are eligible for this program.
     
  19. Dan Detweiler

    Dan Detweiler Member

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    Just an FYI. The 200,000 car limit on the Federal tax credit for manufacturers is based on US deliveries. My understanding is that foreign deliveries are not counted. Correct me if I am wrong but that is how I understand it. Once the 200,000 number is reached the incentive is reduced quarterly over the next three quarters.

    Dan
     
  20. jbcarioca

    jbcarioca Active Member

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    So, since much of the Bolt Batteries and drivetrain were designed and are produced by LG Chem in Korea, with substantial other components also imported it is probable that the legally defined US content of the Bolt is less than 50% ( I have not yet seen the formal Automotive News assessment that usually happens so I am guessing- somebody may have accurate data). By contrast the Model X and S both are IIRC >85% US content.

    Because the US government sold the last ownership in GM , losing about $10 billion on the deal, there is probably no longer a vested interest to subsidize GM at the expense of Tesla. So, how to count the 200,000 for each? Of course they'll be treated the same. How about Nissan, MB, BMW and BYD? So far national origin has not seemed to be an issue. Were it to be, and were it to be fairly done, Tesla would be the major beneficiary because it has the highest US content of any currently anticipated BEV manufacturer.
     

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