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Teslas and other EVs could enter a golden decade with newly-introduced US bill
Teslas and other electric cars may very well enter a golden age of sorts in the United States, if a newly-proposed bill makes it through. Dubbed as the Electric CARS Act, the bill aims to update the EV tax credit by extending it for ten years and removing the number of eligible vehicles per manufacturer. The bill also seeks to support the buildout of more electric car charging infrastructure.
A federal tax credit of up to $7,500 is currently available for customers who purchase an electric vehicle. However, the current system phases out this credit after an automaker sells its first 200,000 electric cars. Tesla and General Motors have both passed this threshold, which means buyers of both companies’ electric vehicles no longer receive their $7,500 tax credit. With this system in place, the United States practically makes incentives for car buyers to purchase imported EVs instead of those from local automakers like GM.
Tesla, for its part, has been pushing its electric vehicles without the $7,500 tax credit since the end of 2018 (reduced credits were implemented over 2019), when the company passed its 200,000-vehicle threshold. Fortunately, Tesla’s vehicles like the Model 3 and Model Y have stood well on their own merits, garnering critical and consumer support even without tax credits. If the Electric CARS Act passes, companies like Tesla could make an even stronger push into the automotive sector.
The Electric CARS Act aims to improve the federal tax credit through the following means:
- The elimination of the cap for EV makers. The bill would allow consumers access to the tax credit for the next ten years, regardless of the manufacturer they buy their EV from. Under these terms, even Tesla and GM electric car buyers would be able to get their tax credits once more.
- A 5-year use period. The bill would allow buyers to use their respective tax credits over a 5-year period, meaning that EV customers could apply the credit either at the point of purchase or later on. Such a system would make the tax credit more applicable to buyers without large tax liabilities.
- Charging infrastructure support. The bill would provide a 10-year extension of tax credits for alternative fuel vehicles and charging infrastructure. This incentivizes the buildout of EV charging systems like Tesla’s Supercharger Network and other rapid charging services like Electrify America.
The Electric CARS Act is sponsored by Jeff Merkley (D-OR) and Rep. Peter Welch (D-VT), both of whom highlighted the importance of the electric vehicle sector in the United States. In a statement to Channel 21 News, Merkley stated that the bill is apt considering the ongoing climate chaos. He also highlighted the importance of supporting EVs made by American workers in American factories.
“As climate chaos continues to ramp up with record-setting winter storms, violent hurricanes, and catastrophic wildfires, it is imperative that we transition away from gasoline-powered vehicles, which are fanning the flames of the crisis. Consumers are already looking for electric cars, and this bill will help drive adoption faster—and make sure more of those cars are made by American workers in American factories,” Merkley said.
Welch, for his part, explained that supporting electric cars would be a common-sense win for consumers, especially considering that EVs are practical to own.
“We need to quickly and aggressively invest in electric vehicles to combat the global climate emergency that threatens all of our local communities. Owning an electric vehicle can be cheaper and offers significant public health and environmental benefits, but for many Americans, they are unaffordable at the dealership. This bill makes the next generation of electric vehicles accessible to more people by allowing them to receive the electric vehicle tax credit right away. Encouraging electric vehicle adoption is a common-sense win for consumers, the environment, and American workers,” Welch noted.
Led by Tesla and its S3XY line, electric vehicles have disrupted the automotive industry, even without the presence of the $7,500 tax credit. With the Electric CARS Act in effect, companies like Tesla could reach an even bigger consumer market, bringing EVs further into mainstream buyers. Ultimately, the newly-proposed bill has the potential to usher in a golden age of electric cars in the United States. After all, if Tesla could emerge as a competitive automaker even without the country’s primary EV incentive, one could only imagine the heights the company could reach with less handicaps.
The text of the Electric CARS Act could be viewed below.
21.02.23 Electric Cars 2021 by Simon Alvarez on Scribd
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Tesla Supercharger access has proven to be a challenge for one company
Interestingly, it seems to be the Volkswagen brand specifically that is having issues with compatibility with Tesla Superchargers. Other brands under the VW umbrella, like Audi and Porsche, have already gained access to the charging network.
Tesla Supercharger access has proven to be quite the challenge for one company, as it continues to delay the date that it will enable its owners to charge at the most expansive network in the world.
Tesla Superchargers have been opening up to other brands for well over a year, and many car companies that are manufacturing electric vehicles now have access to the vast network that has over 70,000 locations worldwide.
Tesla to launch Supercharger access for VW owners later this year
However, one brand has experienced some issues with what it is calling “technical challenges,” specifically failing to enable cross-compatibility between its vehicles and Tesla Superchargers.
Volkswagen has had to delay its ability to enable customers to charge at Superchargers because there have been some difficulties getting things to run smoothly. A report from PCMag cites a quote from a Volkswagen spokesperson who said there are still plans to deliver this year, but there have been some delays:
“Volkswagen looks forward to making it possible for ID. Buzz and ID.4 vehicle owners to gain access to the Tesla NACS Partner Superchargers. The timeline has been delayed by technical challenges, and we ask for customers’ patience. We still expect to deliver access this year.”
Interestingly, it seems to be the Volkswagen brand specifically that is having issues with compatibility with Tesla Superchargers. Other brands under the VW umbrella, like Audi and Porsche, have already gained access to the charging network.
Volkswagen EV owners will need to use an official VW adapter to access the Tesla Supercharger Network once the issues are resolved. It still plans to launch access to its owners later this year, but its spokesperson did not announce any planned timeline.
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Tesla Giga Berlin makes big move amid strong sales and demand
“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”
Tesla is making a big move at its factory in Germany, known as Giga Berlin, as managers at the plant have indicated the company plans to increase its production rate for the remainder of the year.
Giga Berlin is responsible for manufacturing Model Y vehicles for several markets worldwide, including those outside of Europe. It was opened in March 2022, and it recently built its 500,000th Model Y in March and its 100,000th new Model Y just three weeks ago.
Due to some encouraging sales figures in the markets it provides vehicles for, Tesla said it is planning to increase production at the factory for the remainder of the year.
Andrè Thierig, plant manager at Giga Berlin, said to German news outlet DPA on Sunday that market data has encouraged a move to be made regarding the production at the factory:
“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”
It is interesting to see this kind of narrative from Thierig, especially as data has shown Tesla has struggled in various markets, including Germany, this year.
Sales drops have been reported, but other markets are holding strong, especially those in Northern Europe, such as Norway, where the Model Y saw a nearly 39 percent increase in sales in August compared to the same month the previous year.
Gigafactory Berlin supplies vehicles for other markets, such as Canada, Australia, and New Zealand, which are strategically important to avoid tariffs. It also builds cars for the Middle East.
Thierig reiterated this point during the interview with DPA:
“We supply well over 30 markets and definitely see a positive trend there.”
Elon Musk
Tesla analyst says Musk stock buy should send this signal to investors
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”
Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.
One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.
Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever
Dorsheimer said in the note:
“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”
Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.
He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.
Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.
In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:
“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”
Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.
Tesla Supercharger access has proven to be a challenge for one company
Tesla Giga Berlin makes big move amid strong sales and demand
Tesla analyst says Musk stock buy should send this signal to investors
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