The Republicans have announced a new tax plan today and it is about as bad for America as expected, taking money for health care, pure air and the energy efficiency of American families and sending to ultra-riche.
You might think that it helps one of these ultra-rich, Elon Musk, who gave hundreds of millions of dollars to Ani-EV candidates to help get there. But the main source of its wealth, Tesla, will be specifically injured by the cancellation of EV credits – and its competitors will not be.
Now that the Republican Party has unveiled its killing tax proposal, we know a little more about what is.
Originally, many thought that the proposal would completely kill all the Federal EV credits, some believing that the credit of $ 7,500 would disappear immediately (personally, I never thought it would be that Stupid, but you never know with the Republicans).
But it is clear that they want to destroy credit and make cars more dear for Americans. After all, Donald Trump, when he presented himself for an office, he remains constitutionally prohibited to hold, asked the oil companies a bridge pot of a billion dollars in exchange for the end of EV credit, a promise that he continued to say that he will maintain while he is increasing in the above-mentioned office.
And last week, the president of the room, Mike Johnson, said that the room should end the credit.
It turns out that the details are a little more nuanced than that, and that during the end of the credit, it will be a little later than much later than many.
It is likely that credit will last until the end of this year – which makes sense, because this is how tax changes often work. Then, at the end of the year, the credits of the law on the reduction of inflation will largely disappear.
However, in the current bill, a few Car manufacturers will keep access to certain EV credits for a while. This is due to a given exception for manufacturers who have not sold 200,000 vehicles between 2009 and 2025, a ceiling similar to old EV tax credit which was implemented for the first time in 2008, before the Congress improves it and removed the ceiling of the law on the reduction of inflation.
Thus, small manufacturers will continue to have a certain support, while the major manufacturers who have already sold a lot of cars will lose all their credits.
A number of manufacturers have already reached the 200K EV ceiling, including Nissan, Ford, Toyota, Hyundai / Kia, GM and of course Tesla. These manufacturers will lose access to credits.
But others that started late or who have more niche offers continue to be on the 200K ceiling. These include companies like Mercedes, Honda, Lucid, Mazda and Subaru.
More specifically, Rivian has been identified as one of the possible winners here, because the company has not yet sold 200,000 vehicles, but should cross this line in the next two years.
And finally, the real Competition for Tesla, Gas Cars, will not lose anything from the termination of EV credits. These cars will continue to sell, they will just have an advantage of $ 7,500 compared to today – in addition to their advantage of each gas car authorized to suffocate the world with $ 20,000 + in unpaid pollution costs, which appear on hospital bills and everyone’s health insurance premiums.
So that raises an interesting point: when Tesla and her bad CEO Elon Musk threw their support behind all this, what would they think they would get out of it?
After all, Tesla said wrongly, at the request of Musk and her tortured logic, that the end of EV credits would be somehow help he.
We called this obvious incorrect declaration at the time, saying that No, to shout aloud, killing EV subsidies will not help an EV company.
But now it turns out that the situation is Even worse For Tesla, because not only can Tesla gas competition keep credits, but many electric competitors can also keep them for a while.
And don’t forget that this last quarter, government incentives were the only thing that prevented Tesla from losing money. A regulatory environment more hostile to Tesla could become black in red on the balance sheet, as well as the reduction in sales and the negative perception of the brand. Thank the wrong CEO you voted to give $ 55 billion for this loss, shareholders.
But the oil companies, another competitor of Tesla, will continue to benefit from around $ 760 billion in subsidy per year in the United States only, in terms of health and environmental costs they impose on society and do not pay.
If that The grant was completed alongside the credit of 7,500 EV, then the electric vehicles would appear in the lead. But instead of putting an end to these massive fossil fuels subsidies, the Republicans have proposed to increase them, by reducing the limits of pollution and relaxation, both through this tax invoice and by other agency actions and proposals.
In addition, the tax proposal has today unveiled sunsets for many other products that Tesla sells. There are solar and domestic energy efficiency credits from which Tesla takes advantage of its energy division, which sells solar and domestic battery systems to the owners. These can be worth tens of thousands of dollars per installation, and they will disappear if this proposal takes place.
Thus, in the end, Tesla loses access to credits both on its cars division and in its energy division, while its competitors obtain an even more beneficial regulatory environment to continue polluting. And even it is electric Competitors get a temporary step ahead for the moment.
Meanwhile, Elon Musk obtains his share of the 4.5 billions of dollars in tax discounts which go directly to the rich elites. Thus, at least its portfolio will be a little better for a certain time, even if the company which has been responsible for filling it, it will still fall due to the pricing of less attractive products and thanks to its own association, which has led to the business against the company, embarrassed the owners and pushed many customers.
So, to those of you who wanted us to “trust the plan” – how, exactly, is it beneficial for Tesla, again?
Among the proposed cuts is the solar credit on the roof. This means that you could only have until the end of this year to install the solar energy on the roof of your home, before the Republicans increase the cost to do it on average ~ $ 10,000. So if you want to go solar, start now, because these things take time and the system must be active before depositing the credit.
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