😱Is Elon Musk Really For Keeping The EV Tax Credit? YEP!
ฝัง
- เผยแพร่เมื่อ 5 ก.พ. 2025
- I will discuss why I believe Tesla and Elon Musk want to save the EV tax credit because they have the most to lose.
#tesla #elonmusk #taxcredit #electriccar #electricvehicle #rivian
I really enjoy your content and insights, but I feel a couple of key points might have been overlooked, and one in particular stood out to me as I’ve had a similar experience to the one you shared.
For context, I lease a Rivian R1T and was able to benefit from the tax credit-something I wouldn’t have qualified for had I purchased the vehicle outright or opted for a EV car vs truck. This credit was a plus and drove the lease vs buy decision.
Tesla, as the market leader, is already profitable, so the removal of the credit would likely have less of an impact on them compared to others. Companies like Ford and GM face a tougher challenge, as they need to compete with Tesla in regions with strong EV pushes like Europe, China, most of Asia, Australia, and India. Without incentives, they might find it more appealing to focus on gas vehicles, but those markets may soon become unprofitable as the world transitions to EVs
Tax credits are crucial for helping businesses and industries navigate these transitions. You mentioned that the credit didn’t influence your purchase decision, but I think that perspective may not fully consider the broader picture. Leasing, for example, allows customers to benefit from the credit. It’s similar to how businesses might purchase jets or heavy vehicles to take advantage of tax incentives-even if the purchase was already planned, the credit eases the decision and aligns behavior with policy goals.
I own both Tesla and Rivian vehicles, and I believe this market thrives on competition. Tesla adjusted its prices to ensure its models qualify for the credit (with the exception of the Cybertruck), and if the credit disappears, this artificial price ceiling will likely vanish too, potentially leading to price increases.
Lastly, if these credits were removed, it’s unlikely we’d see an increase in manufacturing jobs in the U.S. unless it directly impacted a company’s ability to sell. Without incentives, businesses may feel less compelled to prioritize U.S. production when options in China or India remain more cost-effective.
Tax credits serve to encourage behavior that aligns with government objectives-whether it’s employing people, fostering technological innovation, or bringing jobs to the U.S. They’re an essential tool for guiding both individuals and businesses.
Just wanted to share a different perspective-thanks for sparking this conversation!
I agree with most of what you have stated. However, my main point is that Tesla will be hurt more than anyone because they have some of the least expensive EVs you can buy which means their customers are likely more price sensitive than a Rivian owner like yourself. The other car makers can simply go back to producing gas and hybrids and go unaffected which is what they want to do anyway.
However that does mean less competition for Tesla, but on the other hand that also means fewer non-Tesla EVs will be using the Supercharger Network which which was suppose to be a big profit center for the company. Also, you raised another great point. Tesla adjusted prices and battery chemistry to get their vehicles to qualify for the tax credit, So why go through all of that if the tax credit doesn't matter to them? Based on their actions, it seems that the tax credit matters a lot.
Thanks for providing an alternative point of view. It is greatly appreciated!
17:00 Yes, I bought the Ioniq 6 and got the $7500 off (I call it Hyundai Bucks) plus I got $2200 off from my dealer (Bob King Kia in Winston-Salem, North Carolina) so I got mine for 38K. I was looking at the model 3 at the time but that was $47k at the time.
It sounds like you got a great deal!
Great live conversation. If I hazard to guess the future, I would say the future is inertia so tax credits stay but again, that is a hazard of a guess. I will live in the now and see what happens. I will eat the 🍿🍿 and watch.
I am glad you enjoyed the discussion!
Let’s keep in mind as well California (the largest EV market) is threatening to bring back their own tax credit for EV if the federal one goes away but excluding Tesla
This is likely a chess move on the governor's part (and a smart one). This will put more pressure on Elon Musk to fight for continuing the federal tax credit which will help both parties to achieve their goals.
Thanks for sharing!
@ 100%. Let’s not forget that the government authorized ~$30BN to GM and Chrysler in 2008 but now when a $5BN loan comes up for Rivian that will create a ton of jobs is corporate welfare.
@@lavadog13 That's because GM and Chrysler were pushing Big Oil's product. Its only welfare when it goes to someone that is not increasing their profit margins.
great first,!
Thanks!
I missed it. I'll try to make future livecasts. i didn't see a LIVE notification. I'll keep my eyes out for future livecasts.
Thanks for watching Diane! I will try to make the live notification more obvious in the future.
I'm looking at the chat now. Yes, Honda Prologue and Chevy Equinox are going to sell well along with Kia/ Hyundai.
14:00 Duke, I thought the same thing. What if Trump gets rid of the carbon credits paid to Tesla Billions) and Rivian (millions?) as fines from the other OEMs (for not building NEVs). That would be a major ouch for Tesla and Rivian. Of course, Rivian gets far less but still.
I think Elon is considering more factors. Losing the credits and rolling things back in the US will give Tesla a massive advantage the next time Democrats are in control and assuming that is after the next election, most US automakers will already be close to bankruptcy as global sales continue to shift to China and US EVs. Chevrolet with its current lineup is the only US legacy automaker that might be competitive to China expansion if they keep developing EVs. With GM pulling out of its development of batteries with LG at the plant in Michigan, it would appear they are going backwards. I think Elon is trying to kill US legacy automakers as they refuse to adapt and continue to add debt to America through bankruptcy bailouts. I think the only companies we should try to save are EV manufacturers and renewable energy developers like batteries and solar. We need them to be competitive with China. We don't need legacy corporations that are stuck in the past and can't see strategic threats. It would also help direct to consumer business models as dealerships continue to fail.
gm is working with other companies for battery technology that is why they dropped the ultium name There equinox and the prologue they made for Honda are selling very well
@ryansherman4556 I agree they are selling well. Wasn't aware of that rationale for getting out of their deal with LG. I'm not sure that I buy the multi-billion dollar misstep. I do think there is a challenge with battery technology because there are so many companies working on solid state options. It looks like Chinese companies might have cracked the secret of them and maybe Toyota, but Toyota has been claiming that for years without evidence. GM/Chevrolet do appear to be the only US legacy automaker that might be taking EVe seriously, but we'll know for sure in the coming years. I tend to think it might be too late though. Globally, the only auto that seems to be making massive gains is Chinese automakers. US manufactured a million EVs in comparison to 10 million for China. It's pretty clear China is what people want as they have the best EVs.
Did you factor in the Tesla's that are from China, because they don't qualify for the tax credit.