Senate Majority Leader
Chuck Schumer and Democratic Sen.
Joe Manchin have agreed to vote on the
“Inflation Reduction Act of 2022,” which has at its core measures
to tackle inflation including paying down national debt and
lowering energy and healthcare costs.
“After many months of negotiations, we have finalized
legislative text that will invest approximately $300 billion in
Deficit Reduction and $369.75 billion in Energy Security and
Climate Change programs over the next 10 years," Manchin and
Schumer said in a joint statement late Wednesday.
The full Senate will consider the bill next week.
The bill’s climate provisions envisage reducing the country’s
carbon emissions by about 40% by 2030.
Proposals Related To Clean Vehicles
Commercial vehicles weighing over 14,000 pounds are eligible
for a tax credit of $40,000 or 30% of the vehicle cost, whichever
is less.
Vehicles with a gross weight less than 14,000 pounds are
eligible for a $7,500 tax credit.
The $7,500 tax credit can be availed for new clean energy
vehicle purchases by those whose income is under $300,000 for joint
filers, $225,000 for heads of households and $150,000 for
others.
Used clean vehicle purchasers would get a $4,000 tax
credit.
All EVs bought after Dec. 31, 2022 would qualify for the
EV credit.
The tax credit would run through Dec. 31, 2032.
To be eligible for the tax credit, the vehicle should be made
in North America.
There are retail price caps of $80,000 for vans, SUVs and
pickup trucks; $55,000 for others, including sedans; and
$25,000 for used cars.
Batteries have to contain a certain level of critical minerals
extracted or processed in any country the U.S. has a free trade
agreement with or are recycled in North America.
The bill also seeks to do away with the previous mandate that
required qualified vehicles to have solely plug-in electric drive
motors and the 200,000-vehicle per manufacturer cap.
The $4,500 bonus credit to cars made by companies with unionized
labor has also been removed.
What This Means For Automakers: The proposed
legislation is a win for non-unionized companies such as
Tesla, Inc. (NASDAQ:
TSLA) and
Toyota Motor Corporation (NYSE:
TM).
The removal of the 200,000 ceiling could benefit Tesla, Toyota
and
General Motor Corporation (NYSE:
GM), all of which have
run out of their quota and were ineligible for the tax
credit.
The retail price ceiling would mean that among Tesla’s sedans,
only the Model 3 SR+ variant and Model Y Performance and
Long-Range variants would be eligible for the $7,500
credit.
In anticipation of the thrust to indigenize battery
manufacturing provisions, companies such as
Ford Motor Company (NYSE:
F) and GM have set up battery plants. Their Asian suppliers
have also strived to move their production close to the
automakers.
Tesla stock was edging down 0.28% to $822.15 in premarket
trading on Thursday, according to
Benzinga Pro data.
This might have a big part to do with PBW's (clean energy) move
off of a long bottoming formation.
I posted a daily chart back on the 20th of July showing a move
off the lows. Here is a weekly chart indicating a possible great
swing trade opportunity.
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What Does The New Senate
Posted by morton7 on 28th of Jul 2022 at 09:09 am
What Does The New Senate Deal Mean For Tesla, Toyota And Other Automakers?
8:19 am, July 28, 2022
Read the full article
Senate Majority Leader Chuck Schumer and Democratic Sen. Joe Manchin have agreed to vote on the “Inflation Reduction Act of 2022,” which has at its core measures to tackle inflation including paying down national debt and lowering energy and healthcare costs.
“After many months of negotiations, we have finalized legislative text that will invest approximately $300 billion in Deficit Reduction and $369.75 billion in Energy Security and Climate Change programs over the next 10 years," Manchin and Schumer said in a joint statement late Wednesday.
The full Senate will consider the bill next week.
The bill’s climate provisions envisage reducing the country’s carbon emissions by about 40% by 2030.
Proposals Related To Clean Vehicles
The bill also seeks to do away with the previous mandate that required qualified vehicles to have solely plug-in electric drive motors and the 200,000-vehicle per manufacturer cap.
The $4,500 bonus credit to cars made by companies with unionized labor has also been removed.
Related Link: These Automakers Have Vowed to Catch Up With Tesla And Wrest EV Leadership: Is That A Stretch Goal?
What This Means For Automakers: The proposed legislation is a win for non-unionized companies such as Tesla, Inc. (NASDAQ: TSLA) and Toyota Motor Corporation (NYSE: TM).
The removal of the 200,000 ceiling could benefit Tesla, Toyota and General Motor Corporation (NYSE: GM), all of which have run out of their quota and were ineligible for the tax credit.
The retail price ceiling would mean that among Tesla’s sedans, only the Model 3 SR+ variant and Model Y Performance and Long-Range variants would be eligible for the $7,500 credit.
In anticipation of the thrust to indigenize battery manufacturing provisions, companies such as Ford Motor Company (NYSE: F) and GM have set up battery plants. Their Asian suppliers have also strived to move their production close to the automakers.
Tesla stock was edging down 0.28% to $822.15 in premarket trading on Thursday, according to Benzinga Pro data.
This might have a big
Posted by cozz101 on 28th of Jul 2022 at 09:51 am
This might have a big part to do with PBW's (clean energy) move off of a long bottoming formation.
I posted a daily chart back on the 20th of July showing a move off the lows. Here is a weekly chart indicating a possible great swing trade opportunity.