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Musk aside, starting a new EV company is worth up to $1.5 billion in federal tax credits + a few thousand per vehicle sold in state tax credits, so there is tha
by T-A 7y ago
Musk aside, starting a new EV company is worth up to $1.5 billion in federal tax credits + a few thousand per vehicle sold in state tax credits, so there is that.
- simonebrunozzi 7y agoANY new EV company gets these credits? Really?
- gibolt 7y agoThat is the purpose of the credit, to spur new companies and innovation from old ones.
- zaroth 7y agoAny one that can actually sell cars to the public that is. There is a good argument to be made that the cap should have been US wide and not per-company, because now it’s incentivizing late-movers who didn’t have to carry the initial higher R&D burden. There’s even a small chance this might actually be amended by Congress. But on the flip side, a per company cap diversifies the knowledge and experience and drives increased competition, even if it is late to the game.
- jsight 7y agoIt is actually quite a bit more than that, as the figure above only accounts for sales of the first 200k units. The phaseout after that is time-based rather than unit based. The real figure for Tesla (for example) will probably be closer to 2.25 billion. But all of this goes to the consumer in the form of a demand side tax non-refundable tax credit. It will not help if they fail to get into production due to liquidity problems. Many businesses have failed trying to get to that point.