The new US President Joe Biden (see photo) 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.
$ 4,500 less on Tesla purchase
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 units – 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 Democratic 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: The draft was written by lobbyists for Ford and the UAW auto union, he wrote on Twitter.
This is written by Ford/UAW lobbyists, as they make their electric car in Mexico. Not obvious how this serves American taxpayers. https://t.co/FUUXARHlby
— Elon Musk (@elonmusk) September 12, 2021
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 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.