Trump Administration Plans Electric Vehicle $7,500 Tax Credit Elimination
The proposed elimination of $7,500 tax credit could end up as a major setback for electric vehicle sales. Majority of automobile manufacturers are already offering electric cars with very low margin and market leader Tesla Motors is reporting loss each quarter. Tesla could face major trouble with sales if the government decides to eliminate tax credits.
The new tax plan rolled out by House Republicans would repeal $7,500 tax credits on electric vehicles after 2017 tax year. Automobile sector analysts believe that Nissan Leaf and Chevrolet Bolt would face much larger impact of elimination of tax credits. The impact will also be seen on Tesla sales but as the company deals in higher price range, the impact could be lower compared to affordable electric car segment.
Automobile companies have been shying away from investing in electric and green technologies. In order to push forward R&D and investments in electric vehicle segment, government subsidies play an important role.
Commenting on the issue, the Electric Drive Transportation Association said, "Today, the House Ways and Means Committee released tax reform legislation that includes repeal of the Section 30D Plug-in Electric Drive Vehicle tax credit."
General Motors released a statement, “Tax credits are an important customer benefit that can help accelerate the acceptance of electric vehicles. Because General Motors believes in an all-electric future, we will work with Congress to explore ways to maintain this incentive.”
According to an Automotive News report, German automaker BMW plans to discontinue its i3 all-electric compact car and i8 plug-in hybrid sports car ahead of introducing its next-generation electric vehicles (EVs).
Chinese electric vehicle (EV) manufacturer Kandi has recently marked its official foray into the US market, with the launch of two new EVs --- the EX3 all-electric SUV, and the K22 subcompact electric car.
US electric vehicle maker Tesla Motors CEO Elon Musk shared some interesting information about the automaker’s upcoming products last week, saying that the pickup truck is his ‘favorite next Tesla product.’ The statement was made by Musk during Te
According to electric vehicle maker Tesla’s latest update to its Model 3 online design studio, the automaker has increased the cost of the Model 3 Dual Motor version and some other options.
US electric vehicle manufacturer Tesla Motors has released its earnings report for the second quarter of 2018.
On the sidelines of the Goodwood Festival of Speed, Lexus CEO Yoshihiro Sawa said that “full electric vehicles” (EVs) are not yet ready for primetime because they presently require a long charging time and face battery degradation/replacement issu