The U.S. Department of the Treasury is at it again, Tesla and Nissan Motor Co., Ltd.'s multiple electric vehicles will no longer enjoy tax exemptions in the United States.
After the new battery procurement regulations of the "Inflation Reduction Act" came into effect, many electric vehicles have lost their eligibility for a maximum tax credit of $7,500.
What's the future for new energy vehicle companies in the United States?
On January 2nd, the U.S. Treasury Department announced that many electric vehicles, including the Nissan Leaf, Tesla's all-wheel-drive Cybertruck, certain Tesla Model 3 versions, and the Chevrolet Blazer EV, have lost their eligibility for a tax credit of up to $7,500 under the new battery procurement regulations of the "Inflation Reduction Act."
In December of last year, the U.S. Treasury Department issued new guidelines that specify the requirements for battery procurement, significantly narrowing the scope of eligible battery materials. These regulations officially took effect on January 1, 2024.
As a result, the number of electric vehicle models eligible for the U.S. electric vehicle tax credit has decreased from 43 to 19, including different versions of the same model. The U.S. Treasury Department stated that the actual list may change as some manufacturers have not yet submitted vehicle information that meets the criteria.
The following is a list of affected models compiled by Dongwu Securities:
According to the "Inflation Reduction Act" released by the U.S. government in August 2022, the government plans to provide substantial subsidies to support the production and investment in industries such as electric vehicles and clean energy. However, many of these subsidy policies and tax incentives are only available to domestic companies or companies operating in the United States.
Global Times pointed out that the United States' move is aimed at suppressing China's new energy industry chain, but it will ultimately hinder its own energy transition.
Data shows that Chinese companies occupy over half of the global electric vehicle battery market share and hold a 90% market share in the supply of certain battery materials.
It is worth mentioning that the "Inflation Reduction Act" has already disqualified many new energy vehicles from tax credits. According to relevant statistics, currently, only about 20 out of every 100 cars sold in the United States meet the requirement of being assembled in North America.