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I'm not sure you understand how the BEV tax credit works. First of all, it's the customer that gets the refund NOT Tesla.

Second, the buyer has to owe enough in liabilities to be even be eligible for it.




I absolutely do understand that. But there are economic principles at play here too. A $7,500 rebate is effectively a lower price without costing the manufacturer anything.

While it is true that the buy has to meet the $7,500 threshold for that to work (which is not insignificant) for much of the lifespan of rebate availability, the cars were averaging >60k. Hopefully most people buying cars in that price range have incomes that make $7,500 in tax rebates possible.

By the time that the prices had dropped to 50k, the rebates where closer to $3,700. How many were sold at each range and what percentage of the rebate was accessible? Hard to say... thus the range of possible subsidies.

Either way, though, this was effectively a big help to the business.


It is now a hindrance as every other EV maker (except soon GM) gets the subsidy to compete against Tesla which no longer does.


Yeah, definitely... and it looks like Ford might actually enter the phaseout next, making it purely a subsidy for foreign automakers.




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