[Tom E-Tron]

An interesting read this morning. I support increasing the EV tax credit, and now I see why GM announced yesterday that they are open to unionizing the Ultium Cell LLC factories. Electrek sets this up as a disadvantage to Tesla, but they could always unionize their workforce, although the union would give more voice to Tesla workers who have not always been treated the best. The real loser in this would be BMW, and VW who plan to build their EV's in the US, but with non union labor.

Electric car US tax credit proposed to $12,500, less for Tesla vehicles

A new bill to reform the federal electric car tax incentive in the US has passed the US Senate Finance Committee. It includes increasing the electric vehicle tax credit to up to $12,500, but it was expertly crafted to give less to Tesla vehicle buyers. Ever since the Biden administration took...

electrek.co

 

[zer0t]

I’m sure the manufacturers would like to see the 80k price cap lifted at least till the tech becomes less costly. I also understand why the government wants a cap because they figure people who can afford such expensive vehicles have good incomes. I also don‘t believe that Tesla will be very disadvantaged by the 2500 bucks given they are the only one, except the Mach E, that have some lower priced vehicles. I do believe the new e-tRon will have a lower priced model coming out.

nonetheless interesting policy.

 

[Tom E-Tron]

I’m sure the manufacturers would like to see the 80k price cap lifted at least till the tech becomes less costly. I also understand why the government wants a cap because they figure people who can afford such expensive vehicles have good incomes. I also don‘t believe that Tesla will be very disadvantaged by the 2500 bucks given they are the only one, except the Mach E, that have some lower priced vehicles. I do believe the new e-tRon will have a lower priced model coming out.

nonetheless interesting policy.

I did not see the $80K limit in my first read through... darn... Actually that is a good thing to limit the top price and $80K is higher than I would set the limit if I had a choice. I would make it adjust annually at the median USA car price, as I think this would benefit the lower end of the market which needs the most help.

Giving Tesla 10K rebates is going to hurt Mach E big time, as Mach E is not made in USA and therefore limited to $7500, so you get a better EV buying the Tesla, and a better rebate.

Yes, there is a small E-Tron coming, but I do not think another Audi is in our future, I really like the Lucid project Gravity (2023 or later) if it ever makes it to the market. I think Lucid gets it, they are relentlessly going after making the most efficient Ev, and unless they are a complete fraud, they are game changers.

 

[azbill]

I hate the fact that the government wants to pander to unions.

 

[Msv5010]

Interesting. Does this mean the EV2 (at $79,995 sticker price) could potentially be in line for the incentive? I've got reservations for both the EV2 and EV2X with the expectation of going with the EV2X, but if this incentive is available for the EV2, I may need to think that through some more.

 

[Tom E-Tron]

Interesting. Does this mean the EV2 (at $79,995 sticker price) could potentially be in line for the incentive? I've got reservations for both the EV2 and EV2X with the expectation of going with the EV2X, but if this incentive is available for the EV2, I may need to think that through some more.

Yes, that seems to be true, so if you check one option box you lose $12500... Wow, that would be an expensive upgrade

 

[zer0t]

Yes, that seems to be true, so if you check one option box you lose $12500... Wow, that would be an expensive upgrade

Yeah really expensive. I’d love the tax credit but if it’s capped it won’t happen for me.

 

[Msv5010]

Yes, that seems to be true, so if you check one option box you lose $12500... Wow, that would be an expensive upgrade

Right? Crazy to think about the cost of transparent sky panels on the EV2 if this passes....

Still think I'll go with the EV2X but it could now be a difference of $22,500 for the base version of each, which is pretty significant. A difference of only $10,000 started making the decision between the EV2 and the EV2X with all of its features seem easy, but this is a curveball.

 

[azbill]

You are all forgetting that currently GM has $0 tax credits. I signed up for the Hummer knowing this and want all the options anyway. I have already cashed in 2 tax credits and should have one more this year, so I am already ahead by $22,500.

 

[Msv5010]

You are all forgetting that currently GM has $0 tax credits. I signed up for the Hummer knowing this and want all the options anyway. I have already cashed in 2 tax credits and should have one more this year, so I am already ahead by $22,500.

Fair enough. I didn't reserve with any expectations of credits, nor do I expect them, as even as a tax professional I have zero idea of how likely it is that this bill passes in its current form (with removal of the cap and an $80k limit). This is purely hypothetical and something to talk about while we wait for some more exciting news.