Proposed $15,000 Electric Vehicle Tax Credit – Would Tesla Benefit?

Proposed $15,000 Electric Vehicle Tax Credit – Would Tesla Benefit?

We have a Tweet with a proposed $15,000 electric vehicle tax credit, saying President Joe Biden could really help snuff out inflation with this double electric vehicle (EV) incentive tax credit. . Is it a good idea? Let’s find out.

Ross Gerber, a financial advisor to Gerber Kawasaki, which offers the $GK ETF fund, proposed there be a $15,000 tax credit for electric vehicles, which would benefit Tesla and other manufacturers of electric vehicles, making them more affordable to the masses.

A while ago we wrote about how the EV tax credit would take Tesla to the moon. This was when the proposed tax credit was $7,500. When we wrote this article, we saw Tesla’s sales increase dramatically due to increased demand.

Unfortunately, there hasn’t been much progress with the proposed electric vehicle tax credit in recent months. Elon Musk even said that the tax credit bill should be scrapped altogether and not passed at all.

What would $15,000 do?

$15,000 would be a huge incentive and should be based on certain income only. Lower incomes would get the full $15,000 credit while higher incomes should get $7,500 or less. It would make no sense to extend so much credit to a family earning $500,000, for example.

If a $15,000 tax credit were passed for electric vehicles, Tesla would unfortunately have to raise prices. This was a reality we talked about in a previous article about the tax credit bill, as it would further increase demand for Tesla’s vehicles.

With this increased demand, you might see wait times of several years just for a Model 3 or Model Y. This would not be acceptable to Tesla and they would raise prices until the backlog reaches 6 months at one year.

I strongly disagree with the idea of ​​having an electric vehicle tax credit, although I would benefit from it for my next Tesla Model 3 purchase. It would be nice to save $7,500 . There’s a chance that could be passed this year, but I’m not going to hold my breath for it. I think the US government really needs to cut spending drastically in order to reduce its debt…

Do you think there should be a $15,000 tax credit bill? Would this help accelerate the adoption of electric vehicles?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he’s become a Tesla bull, covering everything he can find on Tesla, while dabbling in other EV companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his coverage of Tesla news on Torque News.

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