Monday, 13 September 2021 17:16

Tesla’s Musk Shares Brutally Honest Take on Dems’ Revised EV Proposal

Written by Simon Alvarez, Teslarati


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Tesla CEO Elon Musk shared a brutally honest take on U.S. Democrats’ revised EV tax credit proposal, which happens to be heavily pro-union.

Musk did not hold back on his criticism, stating the revisions were likely written by lobbyists who do not have American taxpayers’ best interests at heart. In a way, Musk’s critique is valid, considering Tesla’s two best-selling cars are also recognized as two of the most American-made vehicles in the country today. 


On Sept. 10, Democrats took the wraps off their proposal for a revised EV credit system, part of a proposed $3.5 trillion social spending bill.


Unlike the previous proposal---which aims to uncap the $7,500 tax credit, grants an additional $2,500 incentive for cars produced in a union factory and gives another $2,500 for EVs built in the U.S.---the revised proposal practically penalizes EV makers that do not employ a unionized workforce.


Under the revised proposal, the $7,500 tax credit would still be uncapped for automakers. However, the legislation also proposes a whopping $4,500 incentive for vehicles assembled in a union factory. The proposal aims to award a rather conservative $500 to vehicles equipped with a battery manufactured in the U.S. as well. The revised proposal would apply to sedans priced below $55,000, SUVs priced under $69,000 and trucks that cost $74,000 and below. 


Under the revised proposal, Tesla’s electric vehicles would miss out on $4,500 worth of incentives simply because Fremont’s workers have opted to not unionize. The stance of Tesla’s workers at Fremont is not that surprising, considering the facility, back when it was being operated as a Toyota-GM join venture called NUMMI, was closed under the watch of the United Autoworkers Union (UAW). The closure of the plant was not...

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