US HOUSE LIKELY TO KILL EV TAX CREDIT, SPEAKER JOHNSON SAYS

[DuoRivians]

Just came across the headlines

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[savethemanual]

No surprise here, they've been saying this for some time.....at least congress is actually doing something instead of all these EO's.

 

[mkhuffman]

100% expected.

 

[Electrified Outdoors]

hugely disappointing if this happens. We need incentives and investment into the American EV industry.

 

[savethemanual]

hugely disappointing if this happens. We need incentives and investment into the American EV industry.

Yeah, it's a gut punch to those who invested billions to build over here (Hyundai) so their vehicles can qualify. Ioniq 5 just made the list for the full $7500 and now the rug is going to be pulled out from their feet....messed up.

 

[Jonger1150]

They're dump those funds into the military so they can be pilfered.

 

[Supratachophobia]

In a way, this isn't necessarily a bad thing. Subsidies like this one and the solar tax credit, artificially inflate the cost to the customer. Why wouldn't you raise the price by 27% or $7,500? If you know the customer is just going to get it back from the government?

 

[savethemanual]

In a way, this isn't necessarily a bad thing. Subsidies like this one and the solar tax credit, artificially inflate the cost to the customer. Why wouldn't you raise the price by 27% or $7,500? If you know the customer is just going to get it back from the government?

Why put a carrot out there to manufactures of EV's and battery packs to build in USA and then take it away right after they made huge investments....

 

[theonetruestripes]

Why wouldn't you raise the price by 27% or $7,500? If you know the customer is just going to get it back from the government?

You might, especially if everyone else already did, although if you are already selling vehicles at a loss you are more likely to leave the price alone and just either finally make a profit, or stick with the smaller loss.

Mostly it depends on what the market leaders do. (and also if you see a road to profitability by selling more units at the lower price and eventually burning off NREs and/or hitting quantity discount levels on important components)

 

[DuoRivians]

If this passes, imo, the U.S. will never catch up to China’s EV tech. China is racing ahead, while the U.S. seems to enjoy wearing weighted shoes

 

[Supratachophobia]

Why put a carrot out there to manufactures of EV's and battery packs to build in USA and then take it away right after they made huge investments....

Oh, you certainly aren't wrong. I personally think with regards to the EV credit modification, specifically, the new requirements, they were certainly a way to promote domestic investment.

 

[kurtlikevonnegut]

IMO this hurts Slate much more than Rivian, and may cause them to be DOA.

Rivian has been targeting $45k without the tax credit as their goal from day 1. Slate's line since launch has been "under $20k*) and that vehicle becomes a lot less compelling when you're basically at $30k by the time you add even a few modest upgrades.



*with $7,500 EV credit

 

[voxel]

IMO this hurts Slate much more than Rivian, and may cause them to be DOA.

Rivian has been targeting $45k without the tax credit as their goal from day 1. Slate's line since launch has been "under $20k*) and that vehicle becomes a lot less compelling when you're basically at $30k by the time you add even a few modest upgrades.

*with $7,500 EV credit

Maverick’s price just increased (made in Mexico) so cheap trucks may never no longer exist.

 

[COdogman]

 

[CosmicRivian]

If this passes, imo, the U.S. will never catch up to China’s EV tech. China is racing ahead, while the U.S. seems to enjoy wearing weighted shoes

Totally agree. And, actually, I would add that even with the tax credit, the US is unlikely to catch up to China's EV tech.

When I was visiting China regularly around seven years ago, I was struck by how quickly electric vehicles (both scooters and cars) had been adopted. Government restrictions on gasoline-powered scooters, affordability, and advancements in technology made electric scooters incredibly common in cities; intersections would fill with hundreds of electric scooters at every red light, which was astounding to witness.

China's aggressive commitment to electric vehicles, combined with their ability to offer significantly better value at lower price points, positions them to dominate global EV markets in a way the U.S. is unlikely to match anytime soon.

Given current U.S. isolationist tendencies (understatement), I anticipate our auto industry will shrink, leaving only a few major manufacturers primarily serving the domestic market. Additionally, younger generations are likely to shift towards alternative modes of mobility rather than owning and driving cars and trucks as previous generations have. That makes me sad because I love driving my Rivian, and I love EVs (and driving in general), but I don't see people in 20-30 years doing mobility anywhere near how we do it today.

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