New CA bill AB1184 being considered: Up to $10K rebate for EV purchases

[McRat]

Help fund the R&D at the MFR level, and give incentives to MFRs to lower prices.

The object is accelerate the improvement rate in EV technology while putting more EVs on the road to improve the component costs at the second tier and down.

Nissan/Toyota/Honda/Fiat/Ford is great proof that simply discounting the cars is not enough. Very minor tech improvements per year. All they had to do was sell the required quantities.

To get EV adoption, the cost to produce the cars needs to fall faster, and that will not happen if all you have is quotas and customer discounts.

But customer discounts towards parity with ICE vehicles is better than nothing; it is simply less effective.

 

[stopcrazypp]

Help fund the R&D at the MFR level, and give incentives to MFRs to lower prices.

The object is accelerate the improvement rate in EV technology while putting more EVs on the road to improve the component costs at the second tier and down.

Nissan/Toyota/Honda/Fiat/Ford is great proof that simply discounting the cars is not enough. Very minor tech improvements per year. All they had to do was sell the required quantities.

To get EV adoption, the cost to produce the cars needs to fall faster, and that will not happen if all you have is quotas and customer discounts.

But customer discounts towards parity with ICE vehicles is better than nothing; it is simply less effective.

The problem with those is the direct benefits are not clear (so much less public support). The rebates are very easy to account for (you can see directly how many EVs were sold with rebates) and people directly benefited.

 

[McRat]

The problem with those is the direct benefits are not clear (so much less public support). The rebates are very easy to account for (you can see directly how many EVs were sold with rebates) and people directly benefited.

It's a classic case of marketing it correctly. Elon Musk and Tesla would be the best representatives for this plan.

People don't trust "big corporations" by default. We have been trained that way. Few have escaped the media lynchings.

But the reality is that if EVs on the lots were priced lower, it helps the consumer more. You don't pay taxes, insurance and registration fees on the pre-rebate pricing that way.

However many folks are suckers for a sale or rebate.

We need to think of EV pricing in 5-10 years, not focus just on 2018.

 

[stopcrazypp]

It's a classic case of marketing it correctly. Elon Musk and Tesla would be the best representatives for this plan.

People don't trust "big corporations" by default. We have been trained that way. Few have escaped the media lynchings.

But the reality is that if EVs on the lots were priced lower, it helps the consumer more. You don't pay taxes, insurance and registration fees on the pre-rebate pricing that way.

However many folks are suckers for a sale or rebate.

We need to think of EV pricing in 5-10 years, not focus just on 2018.

Well the proposal in the law was supposed to address that (make it a direct discount on the price), but now it's put on the back burner.

 

[McRat]

Well the proposal in the law was supposed to address that (make it a direct discount on the price), but now it's put on the back burner.

The LA Times is sort of the spokeshole for the Legislature. The Times misrepresented the bill deliberately, so that tells you a lot.

Perhaps if Tesla would have caved into the UAW it would have passed. Sadly, that's all too common in Sacramento.

 

[dgpcolorado]

...For what it's worth, I believe the economic theory enough where I did not apply for the CVRP $2500 rebate. I knew it was a fixed pool and thought it was best to leave that money in the pool for someone else who might have been more affected by it.

Interesting that you say this. I'm not sure I will get a 3 since I like the S so much better and might just trade my S60 in for another CPO S with a bigger battery. However, if I do get a 3 I plan to wait until the federal tax credit drops to ¼ ($1875) or has ended entirely because I am too low income to use it and would rather leave the credit for those who can use it. (The lack of a federal tax credit is offset somewhat by the $5000 Colorado tax credit that continues through 2019 before beginning to phase out. Although I am somewhat envious of those who can use both the federal and state tax credits!)

 

[voip-ninja]

Interesting that you say this. I'm not sure I will get a 3 since I like the S so much better and might just trade my S60 in for another CPO S with a bigger battery. However, if I do get a 3 I plan to wait until the federal tax credit drops to ¼ ($1875) or has ended entirely because I am too low income to use it and would rather leave the credit for those who can use it. (The lack of a federal tax credit is offset somewhat by the $5000 Colorado tax credit that continues through 2019 before beginning to phase out. Although I am somewhat envious of those who can use both the federal and state tax credits!)

Being able to take advantage of both CO incentives to the tune of $12,500 is the only reason I'm going to take initial delivery and not wait on an AWD model.

Note that I view this as a cash giveaway to upper middle class types like myself, not something that will help push people to an EV that would otherwise buy an ICE car.

I could afford the car with or without the rebates and am not sure that getting them is influencing my decision particularly beyond taking initial delivery to put $12,500 back in my pocket.