Tesla: Why Musk may now believe EV tax credit loss would be bad for business
Tesla could be 'very susceptible' to the loss of EV tax credits, adds J.D. Power.
A new report from Bloomberg suggests that Musk's new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful. Musk responded that the budget bill negates all the cost savings supposedly achieved by the DOGE "at great personal cost and risk," alluding to the hit to Tesla's business.
"I think it would be devastating for our competitors and for Tesla slightly," Musk said when asked about the future of the tax credits during Tesla's Q2 earnings call last year. "But long term probably actually helps Tesla, would be my guess."
Tesla likely would not exist if not for that tax credit, which the company availed itself to for years during the Obama administration. The EV tax credit was extended and enhanced under President Biden's Inflation Reduction Act, signed in 2022.
Tesla can profitably produce its EVs, so at the time, Musk seemed fine with Congress potentially pulling the EV tax credit benefit.
But Musk has been changing his tune. In addition to his tirade trashing the GOP bill as a "disgusting abomination" and the Bloomberg report on Musk's lobbying to save the credit, he complained in a recent post about the bill's favorable tax treatment for carbon-based energy, but not clean electric.
"There is no change to tax incentives for oil & gas, just EV/solar," Musk wrote about the budget bill.
https://finance.yahoo.com/news/tesla-why-musk-may-now-believe-ev-tax-credit-loss-would-be-bad-for-business-100022394.html
Tesla: Why Musk may now believe EV tax credit loss would be bad for businessTesla could be 'very susceptible' to the loss of EV tax credits, adds J.D. Power.
A new report from Bloomberg suggests that Musk's new tack to destroy the bill comes after his lobbying to save the tax credits was unsuccessful. Musk responded that the budget bill negates all the cost savings supposedly achieved by the DOGE "at great personal cost and risk," alluding to the hit to Tesla's business.
But if you listened to Musk in the past, you would think the EV tax credit is not a big deal for Tesla EV sales vis-à-vis its competitors.
"I think it would be devastating for our competitors and for Tesla slightly," Musk said when asked about the future of the tax credits during Tesla's Q2 earnings call last year. "But long term probably actually helps Tesla, would be my guess."
Tesla likely would not exist if not for that tax credit, which the company availed itself to for years during the Obama administration. The EV tax credit was extended and enhanced under President Biden's Inflation Reduction Act, signed in 2022.Tesla can profitably produce its EVs, so at the time, Musk seemed fine with Congress potentially pulling the EV tax credit benefit.
But Musk has been changing his tune. In addition to his tirade trashing the GOP bill as a "disgusting abomination" and the Bloomberg report on Musk's lobbying to save the credit, he complained in a recent post about the bill's favorable tax treatment for carbon-based energy, but not clean electric.
"There is no change to tax incentives for oil & gas, just EV/solar," Musk wrote about the budget bill.