This week, we have news on “EV Incentives,” 6 Million EV Units In China, Tesla, and Autonomy. Here's our Top EV News for the week of August 11, 2022.
Check out the full newsletter for the week, which includes more Electric Vehicle News, and also news about Autonomous Vehicles.
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Good News, Bad News
Everyone loves politics, right? This past weekend, the Senate passed the Inflation Reduction Act, which includes EV incentives. Part of the bill is the $7,500 electric vehicle tax credit, which will be renewed in January 2023 and will last 10 years. The credit also can be applied in real-time, now consumers don’t have to wait until tax season in April. It’s expected that the new bill will pass through the house within the next week. The previous tax credit was capped at 200,000 cars per manufacturer, but the revised bill will remove the cap conditionally- manufacturers need to meet other requirements too.
However, there is a potential issue as many, if not all, EVs on the market today may not qualify for the credit. The bill would require at least 40% of the materials for the batteries to be sourced in North America by 2024 and 100% by 2029 to qualify for the credit. This doesn’t even take into account the threshold of $80,000 for SUVs, trucks, and vans and $55,000 for sedans, hatchbacks, wagons, and other vehicles, or the income threshold. Seems like there is still work to be done here. Come on, Congress.
6 Million Units
The China Passenger Car Association expects sales of electric vehicles to reach 6 million units by the end of 2022. Originally, China estimated sales to reach only 5.5 million units. Sales increased by 123.7% unexpectedly, prompting the new estimate. For comparison, back in February, analysts expected the U.S. to reach around 700,000 EV sales this year. The Wuling Hongguang Mini EV is one of the top sellers in China. Not sure I could picture myself on I-70 in one on a snowy February morning.
Elon Musk announced Tesla’s plans to begin shipping the company’s electric Semi Truck later this year. The Semi has 500 miles of range per charge. Musk also tweeted that the company plans to deliver Cybertrucks in 2023. The final specs are somewhat of a mystery, but at least it’s almost here. Do you think Musk will deliver on his promise?
Subscription-based EV company Autonomy reportedly placed an order for 23,000 electric vehicles. The order cay over 45 models from 17 companies including BMW, Canoo, GM, Rivian, Tesla, Vinfast, and VW. However, some automakers have declined to comment and others have noted that they have no part in the deal.
If the details of the report become reality, consumers should expect the massive order to be delivered within 6 to 18 months Autonomy recently partnered up with AutoNation for assistance with vehicle prep, delivery services, and subscriber activation. Do you or would you use a subscription service for an EV?
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