Tesla managed to wiggle all of its electric vehicles into the government's EV subsidy scheme this year, despite that its bestselling models are powered by Chinese LFP batteries. President Biden's administration, however, issued a new guidance rendering some Tesla cars ineligible for the full tax credit amount.https://www.notebookcheck.net/Tesla-Model-3-tax-credit-slashed-by-50-as-new-EV-subsidy-rule-guidance-scheduled-to-take-effect.778131.0.html
I just feel like this issue is full of double standards. We import crazy amounts of products from China, we still use tiktok which can obviously track and monitor whatever they want, but we ban or at least heavily disincentivise a product that might help lower emissions and get people in electric cars faster? This is way more about reducing competition and helping unions and the big 3 from having to compete with Chinese auto makers. Just say it like it is! The big3 are behind on battery production so we're using the tax code to stifle competition. Given the recent strike agreement made it impossible for the big3 to make electric cars efficiently and outsource battery production, the government decided to proceed restricting competitive battery technology which obviously will slow down EV adoption since this effects only less expensive batteries and the cheaper ev models...the performance model 3 still qualifies! I happily own a Model Y performance but the way this entire electric car push by the government is handled is infuriating!
When you are heavily invested in Tesla competitors and your investments have bad ROI, but you've got the power to skew the market.
Putting aside debates on merits, I must continue to question why such hard lines in the sand are so prevalent and accepted in these matters. Why is the incentive not, for example, a linear function based on the percentage of on-shore materials sourced?
If the requirement is 50% and the car meets 40%, then the incentive should be 80% not 0%, no?