In the United States, the $7,500 electric vehicle federal tax credit has been a major reason why the fledgling electric car segment is humming along. Well, House Republicans have reportedly removed it from their new House bill.
Enacted in 2010 to help boost sales of plug-in vehicles, the EV tax credit has been $2,500 for a plug-in vehicle with at least 5kWh battery capacity, with every extra kWh raising it by 417 for a maximum of $7,500. It was designed to phase out once an automaker sold 200,000 electric vehicles; however, it will end for all buyers by the end of 2017 if the Republicans get their way.
Electric car sales will undoubtedly decline since the hefty credit is a significant decision-making factor for buyers. Every automaker will be impacted, especially big players like Tesla, General Motors and Nissan.
With the federal tax credit, the Chevy Bolt, Nissan Leaf and Tesla Model 3 cost around $35,000; without it, their prices would jump to about $42,500.
Xavier Mosquet, senior partner at consultant Boston Consulting Group and author of a study on the growth of battery powered vehicles, stated.
“That will stop any electric vehicle market in the U.S., apart from sales of the highly expensive Tesla Model S. There’s no Tesla 3, no Bolt, no Leaf in a market without incentives.”
Let’s just hope they replace it with something more appropriate, because the EV segment needs all the help it can get. Do you agree with the decision to eliminate the EV federal tax credit?
Musk Settles SEC Lawsuit – Pays $20M Fine, No Longer Tesla’s Chairman
He’s no longer chairman but remains CEO.
Tesla founder and CEO Elon Musk has settled the Security and Exchanges Commission lawsuit filed against him, agreeing to pay a $20 million fine as a civil penalty and step down as the chairman of the company’s board, a position he cannot reclaim for at least three years. Musk remains Tesla’s CEO, though.
Additionally, Tesla will pay a $20 million fine, bringing the total fine to $40 million; must appoint two new independent directors to its board; and create a new committee of independent directors to oversee Musk’s communications.
The SEC originally filed a lawsuit against the outspoken executive after his August 2018 tweet about wanting to take the company private, a tweet that specifically stated “Am considering taking Tesla private at $420. Funding secured.”
The regulatory agency alleged that Musk violated protocol and did not in fact have the funds fully vetted at the time of his tweet and originally wanted him banned from any director or officer positions at the company. The $40 million fine will be distributed to harmed investors.
Sikh Motorcyclists Can Soon Ride Without Helmets In Ontario
Canada’s largest province, Ontario, will become the fourth province in the country to allow Sikh motorcyclists to ride without helmets.
Male Sikhs wear turbans for religious purposes. In an August roundtable interview with the Sikh community in Brampton, ON, premier Doug Ford said “It’s going to be one of my agendas, I’ll move forward with it, I’m keeping my promise” when asked about exempting male Sikhs.”
“Promises made, promises kept,” he added.
Alberta became the third province to exempt Sikh riders from helmets in March 2018, following in the footsteps of British Columbia and Manitoba. Bills regarding the matter were introduced in Ontario as far back as 2013 but were shot down and failed to pass.
The helmet law as it pertains to Sikhs was first challenged in Ontario in 2008, when the Ontario Human Rights Commission took up the cause of Baljinder Badesha, who was fighting a $110 ticket for refusing to wear his motorcycle helmet.
Ontario Court Justice James Blacklock ended up ruling against Badesha and the OHRC. In his 35-page decision, he stated that an exemption would render the province’s helmet law unwieldy since anyone violating it could simply claim they were devout, a sound argument, if you ask me, even when not considering for the safety implications.
Let us know, is it fair for only Sikh motorcyclists to be exempt from the helmet law, and is there a solid argument for the exemption? Share your thoughts in the comments below.
Credit: Surjit Singh Flora
Government Tax Credit For Tesla Cars Is Being Eliminated
As predicted last month, has officially sold over 200,000 vehicles in the US, a threshold that triggers the phase out of the $7,500 federal tax credit for electric vehicles.
The tax credit will be cut in half to $3,750 starting in January 1, 2019 so buyers have until the end of 2018 to get the full $7,500 amount.
If the US government doesn’t intervene, the amount will be further halved to $1875 in July 1, 2019, before being eliminated altogether by the end of the year.
To notify buyers of the change, Tesla has updated its website to reflect the revised tax incentives.
Tesla is the first automaker to surpass the 200,000 threshold, but General Motors isn’t far behind and Nissan is well on its way. Act fast if you want an electric car from any of these manufacturers.
On a related note, Ontario, Canada’s largest province, has canceled its generous tax incentives of up to $10,645 ($14,000 Canadian) for electric cars following the election of Conservative Doug Ford as premier.