Tesla Model 3 IRA subsidy cut in half next year, believed to be due to Chinese battery parts

2023-12-05 01:52:18

▲ The amount of the IRA tax credit applied to Tesla’s Model 3 rear-wheel drive and long range will be halved from January of next year. Visitors attending the International Automobile Expo held in Bangkok, Thailand on the 4th are looking at Tesla’s Model 3. <연합뉴스>

[비즈니스포스트] Tesla officially announced that the amount of tax benefits it was receiving from the U.S. government would be cut in half for some vehicles only.

The target models are the Model 3 rear-wheel drive and the long-range model with increased driving range.

According to Electrec, an electric vehicle media outlet, on the 4th (local time), Tesla announced that the tax benefit of $7,500 (approximately KRW 9,829,000) per vehicle provided for the Model 3 rear-wheel drive and long-range versions will be halved from 2024. .

Tesla said in a notice posted on its official website, “If you receive a vehicle by December 31st, you can receive a full tax credit of $7,500,” and “From January 1, 2024, the tax credit amount will be halved to $3,750 (approximately 491 USD).” “It will decrease to 7,800 won.”

Tesla did not disclose the official reason for the reduction in tax benefits.

Electrec analyzed that the country of origin of the parts used in electric vehicle batteries may have been problematic.

Electrek’s report that the size of the tax credit was reduced due to the source of the parts appears to have had Chinese-made parts in mind.

Tesla is known to be procuring mid- to low-priced lithium iron phosphate (LFP) batteries through Chinese battery companies CATL and BYD.

The US Biden administration released detailed guidelines related to the electric vehicle tax credit (IRC Section 30D) on the 1st.

The basic principle is that subsidies will be reduced if battery materials are imported and used from ‘Foreign Organizations of Concern (FEOC)’ countries such as China and Russia.

However, Electrec predicted that Tesla’s sales in the fourth quarter may increase as consumers who planned to purchase Tesla vehicles are more likely to purchase them in December when they receive all tax benefits. Reporter Lee Geun-ho

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