President Trump's Proposed Budget CUTS EV Tax Credits — If It Goes Through Will EV Sales Run Out Of JUICE?

President Trump's Proposed Budget CUTS EV Tax Credits — If It Goes Through Will EV Sales Run Out Of JUICE?
If you were an early adopter of an electric vehicle, boy, did the US government make it a sweet deal for you. That's because if you purchased one of the first 200,000 EV units from an automaker, you walked away with a $7,500 tax credit.

That's a good chunk of coin back in your wallet!

For many buyers, this is a critical component of the decision they make. Although some would argue that most EV buyers leveraging the credit are of the wealthier persuasion.

Having said that, we've got to wonder: IF President Trump's new budget gets passed and the EV tax hits the chopping block, do YOU think this will decimate EV sales?

Or, are we beyond that with EVs having matured in the marketplace now?

What say you, Spies?



The White House proposed on Monday eliminating a tax credit worth up to $7,500 on the purchase of new electric vehicles, a move it says would save the U.S. government $2.5 billion over a decade.

Major automakers have been lobbying Congress to extend the credit that phases out after companies hit 200,000 vehicles sold. They are hopeful Congress could expand the benefit by including it in a package of extended tax provisions that would otherwise expire that could win approval this year.

Tesla Inc and General Motors Co both hit the 200,000 figure last year, but other major automakers are far from that figure. The credit consumers receive for buying Teslas fell to $3,750 on Jan. 1 and will drop to $1,875 for six months starting July 1...

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valhallakeyvalhallakey - 3/12/2019 12:28:49 AM
-5 Boost
Very short sighted and more head in the sand approach to global warming.


jeffgalljeffgall - 3/12/2019 7:24:46 AM
+10 Boost
Questions?

What do you drive?
Do you take public transport?
Is your house airconditioned?


valhallakeyvalhallakey - 3/12/2019 10:24:38 PM
+2 Boost
What do you drive? I walk
Do you take public transport? No I walk
Is your house airconditioned? No I have a portable home.. a TeePee

So if any of the above is a lie does it mean we cannot move in the right direction? Did they ask, have you walked on the moon before we allocated money to get to the moon? How ludicrous the questions...


SanJoseDriverSanJoseDriver - 3/12/2019 12:51:52 AM
-3 Boost
If they do this, I also hope they drop every tax break and incentive for oil production.

Even without the rebate, EVs are already near or at cost parity with a comparable ICE. I don't think it will stop the transition from happening, especially considering the rest of the world is pushing EVs even harder than the US.

As for my favorite company, they have the most to gain from the rebate going away since it will even the playing field with other manufacturers that have been lazy about bringing EVs to market. GM and Nissan are in a similar boat.


TruthyTruthy - 3/12/2019 10:43:17 AM
+4 Boost
Other manufacturing companies are not lazy about bringing EVs to market. It is about profitability. Tesla is playing games with stock and does not making money and will not for the foreseeable future. The technology is available, but why jump in at a loss? And by the "rest of the world" I assume you mean China. Again, 88 million cars sold in the world last year yet only a tiny fraction are EVs or will be for soem time.
And you must be smoking weed with Elon if you think EVs are anywhere close to parity with ICE vehicle cost.


SanJoseDriverSanJoseDriver - 3/13/2019 4:07:50 AM
+1 Boost
The past two quarters which WERE profitable would say otherwise. Feature for feature and performance wise, the price drops made the Model 3 inline with the BMW 3-series and Audi A4 at every level with no subsidies. Not just Tesla, I would say a $25k Niro after subsidies is on par with a $25k small SUV.


PUGPROUDPUGPROUD - 3/12/2019 5:47:26 AM
+10 Boost
At the end of the day everyone acts in their own best interests. The rate of growth in EV's will depend on manufacturers that provide a product that meets consumer needs at a price that reflects its value. While a Prius isn't a car I would buy or need it sells in large numbers because it hits the sweet spot for many. EV's need to do the same. Compete straight up with a better product generates sales and causes competitors to improve their products.


rockreidrockreid - 3/12/2019 8:05:46 AM
-3 Boost
The oil industry should also have their tax breaks cut. This would also help the federal budget... oh wait... the oil industry gives a ton of money to the Republican Party. Never mind.


TruthyTruthy - 3/12/2019 10:52:09 AM
+6 Boost
Oil fuels more than cars. A big reason oil prices have remained steady is the US ability to find and pump oil oil. This helps energy independence, keeps energy costs lower which helps our economy and would not be possible without investment.
And be clear, the oil companies give generously to both parties.


atc98092atc98092 - 3/12/2019 8:08:33 AM
+1 Boost
While losing the tax break will slow sales, I don't think it will completely cripple them. For so many drivers, the benefits of an EV/PHEV are significant enough that people will still buy them. Plus, prices are already dropping to a level that more people can afford them, even without a tax credit. Look at the Kona and Niro EVs, along with what VW is expected to release this and next year.


SanJoseDriverSanJoseDriver - 3/14/2019 4:49:12 AM
+1 Boost
You are paying $15k more for a Kona EV vs. the regular Kona. After incentives that is a $5k premium. For that you get a 0-60 that is a full second faster, maintenance is far less, and gas savings is around a grand or two a year. Keep in mind this is an EV with a 258 mile range.


MDarringerMDarringer - 3/12/2019 8:14:08 AM
+6 Boost
The impact it has on sales is immaterial. The Government should not be using tax money to bribe rich people to buy EVs. It's hypocritical how Democrats HATE the 1%ers on one hand, but on the other want to hand out thousands to get Richie Rich to buy an EV rather than a Mercedes.


TruthyTruthy - 3/12/2019 10:48:53 AM
+3 Boost
Hey, we agree on somethng politically.


TruthyTruthy - 3/12/2019 10:57:32 AM
+3 Boost
runbuh, aside from the Chevy, the other cars you mention sell literally dozens.
The Kia Soul EV will not be on sale here until late summer.
The recent push into EVs come largely form manufaturers from China. Let China subsidize this market and clean up their polution. There are cities over there you have to drive with lights on due to the polution.


countguycountguy - 3/12/2019 9:00:06 AM
-3 Boost
Then they should also cut tax breaks to oil corporations and maybe donnie dotard can stop going to his trash golf course every other weekend on our dime.


CANADIANCOMMENTSCANADIANCOMMENTS - 3/12/2019 11:23:33 AM
-1 Boost
No. That horse has left the barn. EV sales will continue to climb until they replace ICE engines worldwide. It may take 25+ years, but it will happen. Credits no longer matter and very likely never did to those wealthy enough to be early adopters of the BEV platform.


TruthyTruthy - 3/12/2019 12:14:25 PM
+5 Boost
The subsidies absolutely helped. Look at EV, specifically Tesla, sales in every market where subsidies stopped. Sales plummeted. Having to compete directly the ICE has tremendous cost and infrastructure advantages.



valhallakeyvalhallakey - 3/12/2019 10:30:48 PM
+3 Boost
Governments are always incentivizing things one way or another, whether it is tax credits for EV cars or your mortgage interest to the building a national highway system. There are zillions of types of incentives or disincentives built into almost everything a government does. You may be right on the credits no longer being a big deal, let's see. Funny how quite a few people here have no friggin clue how government actually works, reminds me of the get government out of healthcare and don't touch my medicare... or the I love the ACA but hate Obamacare crowds...


MDarringerMDarringer - 3/12/2019 11:20:52 PM
0 Boost
The Volt isn't really an EV though.


MJLFLBSAMJLFLBSA - 3/13/2019 9:21:18 AM
-1 Boost
If one does competent research, global warming (minuscule at best) is not a concern as the earth does its thing. People and cars have little effect. The CO2 levels today are at their lowest in 800,000 years. When the CO2 was at 4,000 PPM (10X today's number) we had an Ice Age. Furthermore, if you want an electric car, buy one but don't make me pay for your pleasure. The so-called zero tailpipe emissions does not include the power plant supplying the electricity to you house or charger. Let's get real about electric cars. They are fast, expensive but hardly "clean". The tax credits cost me money as the treasury takes my tax money and gives it to Tesla, Bolt and iPace owners. Why?


valhallakeyvalhallakey - 3/13/2019 4:13:29 PM
+1 Boost
Thank god for a real climate scientist that not only understands basic science but can see through the global conspiracy on this topic that has fooled every other major political parties around the world. Thank you sir!


valhallakeyvalhallakey - 3/13/2019 10:40:12 PM
+1 Boost
Crazy scientists that try (but fail) to refute your great and mighty logic --> http://blogs.discovermagazine.com/imageo/2018/03/12/what-science-says-about-role-of-co2-in-climate-change/#.XIm8kC3MyL4




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