The US government intends to support electric vehicles heavily

By adRuby, 15 September, 2021

The United States government is currently revamping its subsidy program for the purchase of electric vehicles. Last Friday, a legislative proposal was filed to boost the financing significantly, but Elon Musk (Tesla CEO) is utterly unsatisfied with the plan.

The US Democrats suggested extending the electric vehicle subsidy scheme, requiring higher subsidies for electric cars manufactured in the US by unionized manufacturers. The law is a significant component of US President Joe Biden's objective of raising the percentage of total sales of electric vehicles to 50% by 2030.

In the United States, there is presently a tax credit of $7,500 available to purchase electric cars. The incentive, however, expires when a carmaker sells more than 200,000 electric vehicles, a mark that industry pioneers Tesla and General Motors have already attained, according to news portal CNBC. The current proposed law, however, states that this restriction will no longer apply. Tesla and GM automobiles would then be eligible for another tax credit.

Elon Musk, on the other hand, is far from satisfied with the proposal: the draft also provides for electric cars manufactured in the United States by an automaker whose employees are unionized to receive a tax credit of up to 12,500 dollars (around 10,600 euros) received, so an additional 5,000 dollars. This would essentially help the so-called big three US automakers, GM, Ford, and Chrysler's parent corporation Stellantis, all of which produce in the United States and are members of the Auto Workers union.

Tesla also manufactures in the United States, although business founder Elon Musk is well-known for opposing labor unions in his facilities. According to the Tagesschau, union officials accuse Musk of "greed, bad pay, and terrible work safety." Elsewhere, the Tagesschau notes that Musk is actively lobbying against unions, threatening his US employees with financial repercussions if they join a partnership in a Twitter post.

Elon Musk responded angrily to the new draft law in a recent tweet. This was drafted by lobbyists for Ford and the UAW union, which produce vehicles in Mexico. "It's unclear how this will benefit American taxpayers," the billionaire remarked.

Tesla CEO is not alone in his displeasure: Toyota and Honda, both Japanese automakers, have harshly condemned the Democrats' draft in the US House of Representatives, according to the news portal Yahoo.

Toyota stated in a statement that the planned strategy is discriminatory against "American auto employees due to their decision not to unionize." Honda referred to the bill as "It is "unfair" and "makes a distinction between electric automobiles manufactured by dedicated American auto employees depending on whether or not they are unionized," according to the company. [...] The Honda assembly employees in Alabama, Indiana, and Ohio, who will assemble our electric vehicles, deserve fair and equitable treatment from Congress."

If the law is passed and executed, additional production costs are expected to range between $ 33 billion and $ 34 billion over ten years.