Joe Manchin's Proposal Could Set Negative Precedent and Damage EV Sales - Incentives Needed to Make EVs Affordable and Accessible
Joe Manchin, the Senator from West Virginia, is attempting to stop the EV credit on batteries. This is due to the fact that he believes the U.S. Treasury has failed to issue updated guidance for the 30D electric vehicle tax credits and continues to make the full $7,500 credits available without meeting all of the clear requirements included in the Inflation Reduction Act.
The effect of his proposal would be to pull the carpet under the feet of everyone that bought an EV with the expectation that they were entitled to the credit. It appears that Sen. Manchin wants to follow the law they passed and ensure that only those who need it are eligible for the credit. However, this could stymie EV sales if not properly addressed.
Elon Musk is also on record for saying that government help for the oil industry should be eliminated. He believes EVs should be made affordable so as to bring them to more people, and lower prices can be achieved through efficient manufacturing processes like Tesla’s. Sandy Munro also agrees, suggesting that M3 prices can be lowered by another $15k without killing profit margins.
The danger posed by Joe Manchin’s stance is that it could set a precedent for other politicians in his position to ask for guarantees or become even more entrenched when negotiating. For regular citizens, they won't be able to properly plan their actions based on the law, since it will be possible for the government to decide to simply not enforce it.
It is important to note that while Sen. Manchin may have had good intentions in wanting to follow the law and ensure that only those who need it are eligible for the credit, his proposal could have a negative impact on EV sales if not properly addressed. There needs to be time to sort out battery issues and provide incentives for people who want to switch over to EVs. The current rebate subsidy should go towards helping people finance their EVs in order to make them more accessible and affordable for everyone.
What is Senator Joe Manchin proposing?
Senator Joe Manchin is proposing that the U.S. Treasury issue updated guidance for the 30D electric vehicle tax credits and make the full $7,500 credits available only after meeting all of the clear requirements included in the Inflation Reduction Act.
Why is Senator Manchin proposing this?
Senator Manchin is proposing this to address credit to the uber rich who don't need it and to sort out battery issues. He has been on record that he is not a fan of the EV credits or EV cars in general.
What would be the effect of his proposal?
The effect of his proposal would be to pull the carpet under the feet of everyone that bought an EV with the expectation that they were entitled to the credit. It would amount to killing the credit.
Is Elon Musk in agreement with Senator Manchin?
Yes, Elon Musk is on record for saying the same as Senator Manchin, but also wants to get rid of government help for the oil industry.
What should be done instead?
If a subsidy is desired, it should go only toward people who finance EVs in order to bring the monthly payments to a more manageable level via down payment assistance. Additionally, legacy automakers should lower their prices on EV models so customers don’t feel they are too high priced.
How can Tesla's efficiency in manufacturing be addressed?
Sandy Munro says Tesla can lower their M3 price another $15k without killing their profit margin. This would make them more affordable and give consumers more options. Additionally, Tesla should focus on improving their manufacturing process and efficiency to reduce costs.
What other solutions can be implemented?
Other solutions that could be implemented include providing incentives for people to trade in their gas-powered cars for EVs, as well as offering tax credits for EV charging infrastructure. Additionally, the government could provide grants to help local governments build out EV charging networks.
How can the public get involved?
The public can get involved by contacting their representatives and voicing their opinion on the matter. They can also join organizations like Plug In America and the Sierra Club, which are actively advocating for EV adoption and fighting against attempts to roll back EV incentives.