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Tax credit (Green ACT)
- Thread starter sam2020
- Start date
Musk has said the Federal EV credit is a bad idea and Tesla doesn't need it.
So...take him at his word and exempt Tesla, per Musk's request, from the new extended Federal tax credit.
Musk is a bit of a right wing nut as we saw with Covid19 (attacking the medical science, forcing workers to show up despite CA regs, anti-union stuff, the move to TX to avoid paying the taxes that helped Tesla get started) and other "libertarian" (aka don't tax me) ideas.
He has spoken out against the Federal EV tax credit so I'd very publicly ask him if he wants Tesla included in the credit extension or not.
So...take him at his word and exempt Tesla, per Musk's request, from the new extended Federal tax credit.
Musk is a bit of a right wing nut as we saw with Covid19 (attacking the medical science, forcing workers to show up despite CA regs, anti-union stuff, the move to TX to avoid paying the taxes that helped Tesla get started) and other "libertarian" (aka don't tax me) ideas.
He has spoken out against the Federal EV tax credit so I'd very publicly ask him if he wants Tesla included in the credit extension or not.
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Uncle Paul
Well-Known Member
While the tax credits increase demand for Tesla production, the financial rewards go to the buyer. It may also give Tesla some pricing power, but the tax credits still go to the buyer.
Not if Tesla decides to increase the price with the same amount as the tax credit...
I'm not sure if this way of subsidising EVs is really a great idea (of course I'd be happy to get $10K just as the next person) - maybe give people already driving EVs some tax deduction every year? And give more tax incentives to low-income households.
Not as easy as it sounds, first increasing price for same amount as tax credit is a horrible look for Tesla and it could have a negative effect, but more than the looks is the fact that this time around Tesla really does have some good competition that they did not have before, ford has mach-e and f-150 electric coming, GM is bringing a lot of new EVs, not to mention Hyunday and VW, and BMW and KIA, and now even Toyota is debuting an EV. and i know they are not Teslas, but if the price difference now becomes 15 to 20k it would be super hard to justify the Tesla
As tax policy, its terribly inefficient. Does it really make sense to subsidize the products of VW, Mercedes, Ford, etc., some of the richest companies in the world? Are purchasers of the S-Plaid really swayed by a few thousand dollars back?
Where credits may make some sense is in the start up phase of a company, when its really small (as Tesla once was).
I dont think the tax credit subsidize the company, the credit actually goes directly to you so the purchase becomes more affordable, they have a MSRP and that should (key word should) change just because of a tax credit. So it becomes you either pay as an ex. 40k for that car or you pay $32500 and the gov. Subsidize $7500 either way the auto manufacturer gets 40k. Now if they increase the price because of the credit, that becpmes a problem, and it should somehow be discouraged on the wording of the bill
Tax credit is only applicable when buying American made EVs. It's a win for everyone, the customer, company, and employees.
TravelFree
Active Member
The reference I saw to Union workers was a news media report referencing a white house staffer leak. I don't think it could have been considered "official" The first official release did not reference "Union" I was happy to see that change.
But still, none of us should get too excited over this because the timeline is long plus this was only a wish list by the President's team. If you look at what he promised on the COVID Stimulus bill and what we got, It's quite different, so who knows how that basic $174B plan will change. It lacked many details.
I told my wife, consider this like a child's Christmas list he gives to Santa Clause real early as we may not see anything in law until Christmas.
I had not heard this before. A Toyota EV would probably be a huge success given their outstanding reputation and experience with the Prius and Prius Prime. Great cars!
TravelFree
Active Member
Actually they plan to partner with Tesla to build the frame and electronics and the body / cabin will be Toyota. Should be interesting.
i agree with Musk. The tax credit will benefit tesla's competitor more than Tesla.
It allowed other manufacturer to keep their current price high, thus, have more time to work toward a lower cost solution.
For consumer it is a good thing, more competition in the EV space.
Here is some possible timing for the infra bill according to Pelosi, “The White House has said that it would like to see "progress" on a bill by Memorial Day and passage by summer. Speaker Nancy Pelosi (D-Calif.) this week offered hope that the House might complete work on a package by July 4, before suggesting the real deadline might be the August recess.”
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