Tesla CEO Elon Musk hours ago on Sunday evening shared a brutally honest take on the US Democrats’ revised EV tax credit proposal, which happens to be heavily pro-union, but is it fair?
US President Joe Biden has made it clear that he wants to introduce a massive increase in funding for the production and sale of electric cars. So far, various proposals have been made, and members of the Democratic Party submitted theirs at the end of last week. Like the previous one, it stipulates that buyers of Tesla’s electric cars will be subsidized again – however, there should also be a high surcharge, which is only paid if vehicles come from unionized factories.
Tesla CEO Elon Musk did not hold back on his criticism, stating that the revisions were likely written by lobbyists who do not have American taxpayers’ best interests at heart. In a way, Musk’s critique is quite valid, considering that Tesla’s two best-selling cars are also recognized as two of the most American-made vehicles in the country today.
“This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers,” Musk tweeted as a response to a tweet. He later shared another response “literally” agreeing that Tesla is the most American car out there.
But as Jalopnik puts it, “it’s not like Musk is angry about special treatment and lobbying, in general. Remember that Musk is pushing for similar treatment in India as Tesla tries to carve out a place in that market, as Reuters reports. So, this all just makes it looks like Musk is against special treatment and lobbying … but only when it puts Tesla at a disadvantage.”
Under the previous US regulation, there is a $ 7,500 tax credit when buying an electric car. This only applies to the individual manufacturers until they have sold 200,000 of them – and Tesla and General Motors have already exceeded this value. The foreseeable revision should do without such restrictions so that these two companies would benefit from it.
However, this is more true of General Motors than of Tesla. Because the new Democrats’ proposal calls for the premium for electric cars from unionized factories to rise from $ 7,500 to $ 12,000. The big three US automakers can serve this, but not Tesla. CEO Elon Musk reacted clearly on Twitter.
After all, the Democrats want to add $ 500 if the batteries for an electric car were produced in the USA. But not only Tesla protested against the preference for vehicles from factories with a union, as the news agency Reuters reports: Toyota is said to have written of discrimination against workers who have decided against a union. Honda, which claims to produce electric cars in the US states of Alabama, Indiana, and Ohio, expressed a similar opinion.
Model 3 is the most American car.
However, the two Japanese manufacturers cannot claim to be real US companies – while the Tesla Model 3 was recently named the most American of all cars. Even at a large electric car event organized by Biden in early August, it was noticed that the pioneer was still not invited. The US Secretary of Transportation Pete Buttigieg now had an interesting explanation: The government is concentrating on reducing emissions from car exhausts – and Tesla’s have no exhaust, he said in a TV interview.