Elon Musk Is Angry About a New Bill for EV Incentives

Tesla is outperforming their competitors in driving range, charging times, and sales with electric vehicles. As an article in the Wall Street Journal highlights, the company is introducing some of the highest tech cars on the road. The environmentally friendly is a huge bonus too. However, this new bill for EV incentives is making Telsa’s CEO, Elon Musk, angry.

Elon Musk dressed all in black with a black and white handkerchief around his neck with industrial pipes in the background.
Elon Musk | Getty Images

The new EV tax credit bill

Electric car tax credits are on the verge of receiving a $4500 tax boost based on eligibility. Following a proposed bill in Congress, you may now get $12500 on your taxes upon purchasing an EV. The $4500 credit will only be awarded for EVs manufactured in a unionized United States facility. This would exclude Tesla because the company has restricted the unionization of its workers.

Elon Musk is angry about the new EV bill

While the proposal seems to introduce a worthwhile boost for EV incentives, there is a catch to it. To qualify for the maximum incentives, several requirements must be met.  A $500 incentive will be directed toward electric vehicles manufactured using locally sourced electric batteries. The other controversial provision is a maximum of $4500 awarded for the purchase of vehicles built by unionized workers.

According to an article on Business Insider, Tesla CEO Elon Musk is a huge skeptic of the bill. Musk took to Twitter to say that the legislation had been designed by lobbyists for the United Auto Workers union and Ford. “This is written by Ford/UAW lobbyists, as they made their electric cars in Mexico. Not obvious how this serves American taxpayers,” Musk tweeted. The $4500 tax credit comes as an advantage to US-based automakers like Stellantis, Ford, and GM. Tesla, which has for a long time opposed unionization, could be left out.

The Tesla billionaire did not stop there. He tagged Biden’s official Twitter account when replying to a Twitter user who was of the mind that Biden should prioritize American-made cars in the country.  How Musk captioned the Tweet? “Ahem.”

Business Insider reported that there were already high tensions between the Biden administration and Tesla over the company’s objections to unions. A notable example was when Biden put together an event to celebrate American electric vehicles back in August, and surprisingly, Tesla was not present. At the time, Musk tweeted that it was “odd that Tesla wasn’t invited.”

Furthermore, foreign companies that are not members of US unions would not benefit from the bill. Toyota and Honda expressed strong sentiments about the bill, as Reuters reported. Toyota said the bill discriminated against American-based automakers based on their stand on unionization.

Tesla will still win big

Elon Musk failed to mention that the proposed bill will also come as a great advantage to Tesla lovers. One of the provisions of the proposed bill does away with the initial credit legislation’s phase-out at 200,000 EVs, something Tesla has surpassed. According to CarsDirect, this would automatically make Tesla’s electric vehicles eligible for $7500 credits.

The adoption of electric vehicles is on the rise. Whereas tax credits may accelerate this process, large automakers have already made commitments to move toward EVs in the long run. In the meantime, we wait to see how the wrangling among the lawmakers plays out. Either way, the long-term effect of the proposed bill on Tesla, GM, and other big players will not be very significant.

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