House Democrats aim to turn EV tax credit into refundable credit, as much as $12.5K (link)

Cosmos

Well-Known Member
May 29, 2001
25,446
17,957
1

Here's what will happen. EV makers will markup their vehicles to abscond the tax credit. So that the Tesla Model 3 base price will go from $38k to $45.5k. The strategy is pertinent for Tesla because the Model 3 is a 'loss leader'; i.e., profits from the other models subsidize the Model 3's manufacture. As for other EV makers you might be able to haggle a bit off the top, thereby getting some of the credit, depending on seasonal demand but don't hold your breath. This is what happens with well-intended legislation. That said, I'm stunned democrat lawmakers include Tesla in the mix because it's a non-union shop.

In a related note, now that Elon Musk must sell a significant tranche of his stock options he's looking to invest in other things. It looks like his Monopoly game piece has landed on ERCOT...


I've changed electric providers three times in the past three years just to get the cheapest rate. It will be interesting to see if his entry reduces rates even further. If I was TXU, Reliant or any of the other providers then I'd be scared $hitless.
 
Last edited:

NJPSU

Well-Known Member
May 29, 2001
44,101
15,482
1
New Jersey has another $5000 credit on top of the Federal credit. By the time they are done I’ll be getting the car for free. :cool:
 

ao5884

Well-Known Member
Oct 1, 2019
7,266
7,132
1
Wouldn't need the credit if the EV vehicles were actually good vehicles....consumers buy good products without government market manipulation all the time.
 

Petch

Well-Known Member
Mar 28, 2012
3,514
5,556
1
New Jersey has another $5000 credit on top of the Federal credit. By the time they are done I’ll be getting the car for free. :cool:
No surprise, you Dems love the government freebies!
 

Obliviax

Well-Known Member
Gold Member
Aug 21, 2001
108,105
57,804
1

Here's what will happen. EV makers will markup their vehicles to abscond the tax credit. So that the Tesla Model 3 base price will go from $38k to $45.5k. The strategy is pertinent for Tesla because the Model 3 is a 'loss leader'; i.e., profits from the other models subsidize the Model 3's manufacture. As for other EV makers you might be able to haggle a bit off the top, thereby getting some of the credit, depending on seasonal demand but don't hold your breath. This is what happens with well-intended legislation. That said, I'm stunned democrat lawmakers include Tesla in the mix because it's a non-union shop.

In a related note, now that Elon Musk must sell a significant tranche of his stock options he's looking to invest in other things. It looks like his Monopoly game piece has landed on ERCOT...


I've changed electric providers three times in the past three years just to get the cheapest rate. It will be interesting to see if his entry reduces rates even further. If I was TXU, Reliant or any of the other providers then I'd be scared $hitless.
Interesting. One reason why I haven’t bought an EV is that I can’t get the tax credit due to too many other deductions. But if I buy one in my daughters name, she can get paid by the government while she goes to college?