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Discussion Starter · #261 ·
GM yes because they sell affordable EVs, but I’ve gotta think that with most Teslas approaching or exceeding $50k the number of people with HHI less than $300k buying them is pretty small.
There's probably a decent number of people under $300k buying base Model 3s. Buying A $45k car on $200k HHI isn't particularly excessive.
 

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Volkswagen Lines Up Tariff-Friendly Battery Supplies in Deal With Canada

Michael Nienaber
August 22, 2022 at 6:51 AM EDT

Volkswagen AG has sealed an agreement with Canada to secure access to raw materials such as nickel, cobalt and lithium for vehicle and battery production, according to people familiar with the accord.

The memorandum of understanding will be signed during German Chancellor Olaf Scholz’s current trip to Canada and is designed to shorten supply chains for VW’s facilities in the US and avoid difficulties linked to tariffs and tax regulations, said one of the people, who asked not to be identified discussing confidential information. The move has partly been prompted by new rules that US President Joe Biden signed into law last week, the person added.
The bill already having one of its intended consequences, moving battery production to friendly partner countries. (y)
 

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Discussion Starter · #267 ·
So what you're telling me is that the "inflation reduction act" is increasing the prices of one of the biggest pain points for inflation in America? That sounds about right for the law of unintended consequences.
Like everything in the bill, it was written to appease Joe Manchin. Manchin wouldn't sign onto it when it was called "Build Back Better" because he was concerned about inflation. So they called it the "inflation protection act" to make him happy. Net-net, it should be pretty neutral on inflation as the corporate AMT takes about as much money out of the system as the EV credits and the like put in.
 

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Like everything in the bill, it was written to appease Joe Manchin. Manchin wouldn't sign onto it when it was called "Build Back Better" because he was concerned about inflation. So they called it the "inflation protection act" to make him happy. Net-net, it should be pretty neutral on inflation as the corporate AMT takes about as much money out of the system as the EV credits and the like put in.
While that may be true, keeping the focus on cars, it really puts the brakes on EV adoption in the short term. We're coming off a period of $5-6/gal gas and greater EV awareness from things like the Lightning. These should have been factors to really boost EV sales. The old credit available to all buyers of all brands (minus 2) made these vehicles attractive to new EV adopters. Now the situation is thrown into chaos and people are going to go back to what they know instead of taking a new step to EVs.
 

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Discussion Starter · #269 ·
While that may be true, keeping the focus on cars, it really puts the brakes on EV adoption in the short term. We're coming off a period of $5-6/gal gas and greater EV awareness from things like the Lightning. These should have been factors to really boost EV sales. The old credit available to all buyers of all brands (minus 2) made these vehicles attractive to new EV adopters. Now the situation is thrown into chaos and people are going to go back to what they know instead of taking a new step to EVs.
I think the short term obstacle to EV adoption is more production capabilities right now. If you want an ICE car, supplies are tight, but you can generally get one soon if you are willing to pay. For the more desirable EVs, it's a lot of "plunk down a deposit and you might get one in 2023.
 

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I'm honestly still confused about what parts of the bill have kicked in now and which kick in Jan 2023? I see conflicting info everywhere.
 

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I'm honestly still confused about what parts of the bill have kicked in now and which kick in Jan 2023? I see conflicting info everywhere.
The part that kicked in immediately was the "assembled in North America" requirement. So for the rest of 2022 the "old" $7500 credit still applies, but now nothing made outside of NA qualifies.
 

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The part that kicked in immediately was the "assembled in North America" requirement. So for the rest of 2022 the "old" $7500 credit still applies, but now nothing made outside of NA qualifies.
For now - it's actually an illegal law that violates the WTO regulations on free trade. So they might have to re-write the law or nullify it or something. Either that or I guess the Democratic party and Biden administration just admit they don't care about working with the international community on trade or complying with formerly signed treaties like the WTO.
 

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For now - it's actually an illegal law that violates the WTO regulations on free trade. So they might have to re-write the law or nullify it or something. Either that or I guess the Democratic party and Biden administration just admit they don't care about working with the international community on trade or complying with formerly signed treaties like the WTO.
That's just it, I heard the opposite - that the $7500 credit was immediate, Tesla's and GM's caps were lifted, but the battery material component part kicked in in January 2023. I guess I have to actually read the bill and not just BS on the internet.
 

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Discussion Starter · #274 ·
That's just it, I heard the opposite - that the $7500 credit was immediate, Tesla's and GM's caps were lifted, but the battery material component part kicked in in January 2023. I guess I have to actually read the bill and not just BS on the internet.
A lot of the the component part stuff is left up to regulation, so there will probably be a lot of wrangling to come over stuff like WTO compliance. We could even see substantive amendments if the Democrats somehow manage to keep congress and increase their Senate count.
 

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A lot of the the component part stuff is left up to regulation, so there will probably be a lot of wrangling to come over stuff like WTO compliance. We could even see substantive amendments if the Democrats somehow manage to keep congress and increase their Senate count.
Reason for asking: is there an incentive to try and get a model 3 now before end of 2022? I see on their site, ordering now gets a Nov delivery..... Was hoping to put off buying a car until next spring, but if there is some odd window of opportunity, I'll jump on it
 

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Reason for asking: is there an incentive to try and get a model 3 now before end of 2022? I see on their site, ordering now gets a Nov delivery..... Was hoping to put off buying a car until next spring, but if there is some odd window of opportunity, I'll jump on it
There is no chance for a tax credit on them until next year, if that's what you're asking.
 

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