Tesla News – Tesla’s $ 7,000 Electric Vehicle Incentive is a nail in the coffin for ICE competitors | Zoom Fintech

Tesla News – Tesla’s $ 7,000 EV Incentive is a nail in the coffin for ICE competitors

The reintroduction of the electric vehicle tax credit could be a nail in the coffin of Tesla’s competitors, as if the company needs more help to formally bury its competitors.

Earlier this week, it was reported that Tesla may be ready to receive the new electric vehicle incentives that would grant a $ 7,000 tax credit to the first 600,000 Tesla electric vehicles sold in the United States. The new GREEN law says the number of applicable electric vehicles per manufacturer would increase by 400,000 cars, from 200,000 to 600,000, making a considerable number of Tesla’s planned sales for 2021 reasonably cheaper for car buyers.

Although Tesla has not given an exact estimate of how many cars it plans to build this year, several analysts have predicted numbers between 800,000 and 950,000. However, the fourth quarter’s results update letter Tesla’s quarter has total production of 1,050,000 between its two active production facilities.

Tesla will have access to $ 400,000 in additional tax credits for electric vehicles as part of Biden’s sustainability campaign

The GREEN law states:

“The bill also extends the existing tax incentives available for the sale of electric vehicles. The bill increases the electric vehicle credit limit for manufacturers to 600,000 vehicles, but reduces the credit by $ 500 after the first 200,000 vehicles sold. This would replace the current phase-out period which begins with 200,000 vehicles sold, with a phase-out period which instead begins in the second calendar quarter after the threshold of 600,000 vehicles is reached.

“At the start of the new phase-out period created under the bill, the credit is reduced by 50% for a calendar quarter and ends thereafter. For manufacturers who have already exceeded the 200,000 threshold before the enactment of the bill, the number of vehicles sold between 200,000 and those sold on the date of enactment is excluded to determine when the threshold of 600,000 is reached.

Tesla is seated well if that happens. For several reasons, Tesla’s reintroduction of the EV incentive to cars could effectively bury conventional automakers who haven’t placed a more serious and specific focus on the development of electric powertrains.

It’s no secret that the future of vehicles is electric. While classic muscle cars will likely still exist for decades to come, consumer vehicles from other manufacturers, such as Ford Escapes, Honda Civic, Toyota Camrys, and Chevy Malibus, will be phased out. Let’s be honest with each other here: no one collects any; they just don’t have the “it” factor that a classic vehicle has.

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Even today’s Mustangs, Camaros and Corvettes lack the value, sentimental significance, or history of the earliest builds. And worse yet, they lack the performance, speed, technology, and efficiency of an electric car. Electric vehicles are the best of both worlds, and when you buy a Tesla, there is no better car to display it in the most exaggerated way.

To subtract an additional $ 7,000 from the price of one of Tesla’s vehicles using GREEN would be a game over. The Model 3 SR + would be far below the average cost of a car in the United States today while still providing environmentally friendly transportation, acceleration far beyond the norm for a combustion-engined car, and prices that simply cannot be matched by some of the “luxury and high performance” vehicles that are offered on the market today.

The 2021 Mercedes-Benz CLA-Class is compared to the Tesla Model 3 SR +. Both start at prices just under $ 38,000, but the specs speak for themselves. The Model 3 has a significantly faster 0-60 time at 5.3 seconds, while the Benz sits at 6.2. The quarter-mile race wouldn’t be close either, with the CLA reaching the finish line in 13.8 seconds. The Model 3 would be finished in 13.1, according to Matthew Cjel, who completed three quarter-mile races with his SR + and clocked times of 13.185, 13.181 and 13.218.

Although competitive without the incentive, the price would not be close if the $ 7,000 credit were applied. That would bring the Model 3 to just under $ 31,000. Additionally, the CLA only gets 25 MPG City and 35 MPG Highway. With gas prices soaring, it would be a considerably frequent trip to the local Shell station. The Model 3 gets 263 miles per charge and can be charged at home or at a local Supercharger for a fraction of the price.

This is just one example of where the $ 7,000 credit would make electric vehicles more attractive than gasoline cars to those left on the fence. price parity is becoming an outdated argument, and with the progress of Tesla’s battery and increasing production rates, cars will only get cheaper every year. Soon Tesla’s mass-market $ 25,000 vehicle will hit the roads, and there will be an overwhelming sense of demand from new car buyers. The original 600,000 EVs will likely be gone as fast as the turkey on Thanksgiving, rendering the tax credit obsolete in no time.

The only real concern that could come from the new credit is that it is likely to increase demand significantly, which could pose problems for Tesla projects that have been delayed due to battery constraints. I’m not sure how more 3 and Y buys, as well as S and X, would affect the production of Roadster, Semi, or Cybertruck. However, Tesla is limited in battery power and the available cells would likely be subject to the S3XY lineup, which could further delay other projects.

Demand is never a bad thing, however. Increasing sales of its consumer vehicles would give Tesla even more capital to invest in manufacturing and battery technology. This would give them more money to source cells from third party vendors. It would also only help the company’s finances for many quarters to come. But battery shortages have interrupted the Semi and Roadster project several times, and the Cybertruck now looks like it could be subject to the same issues. It looks like Musk might have hinted at this in the podcast with Rogan yesterday, where he said they could “hopefully” start volume production next year. During Q4 EC, Musk also said:

“If we’re lucky we can make some deliveries towards the end of this year, but I expect volume production to be in 2022.”

Hopefully things continue to develop in a timely manner, I think the incentive for EVs and the long list of advantages EVs have over their ICE competitors will be recognized by all who remain in limbo as to to the power source that will “power” their next vehicle.

Many thanks to our longtime supporters and new subscribers! Thank you.

I use this newsletter to share my thoughts on what’s going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!

Tesla News – Tesla’s $ 7,000 EV Incentive is a nail in the coffin for ICE competitors

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