Kameleon007/iStock through Getty Photos
The calendar rolling to January 1, 2024 signifies that the variety of electrical car fashions eligible for the $7,500 client tax credit score within the U.S. fell to 13 attributable to tighter guidelines round sourcing components from Chinese language suppliers. The variety of EV fashions that certified for the EV tax credit score on December 31 below the outdated standards was 25.
The brand new guidelines particularly exclude from the tax credit score autos that use battery parts made by Chinese language producers. Trying forward, Treasury Division spokeswoman Ashley Schapitl said the federal government will proceed to carefully coordinate with the auto business on the brand new restrictions. ‘Automakers are adjusting their provide chains to make sure patrons proceed to be eligible for the brand new clear car credit score, partnering with allies and bringing jobs and funding again to america,” she said.
In 2025, the restrictions will broaden to incorporate suppliers of key uncooked supplies for batteries, equivalent to nickel and lithium, which might put further strain on automakers to qualify for EV tax credit.
Autos nonetheless eligible for the total $7,500 EV tax credit score embrace variants of the Tesla’s (NASDAQ:TSLA) Mannequin Y, Rivian Automotive’s (NASDAQ:RIVN) R1T pickup , Stellantis N.V. (STLA) Jeep Wrangler 4xe, Basic Motors’ (GM) Chevrolet Bolt, and Ford Motor’s (F) F-150 Lightning pickup truck. Notably, Nissan Leaf (OTCPK:NSANY) and Tesla (TSLA) Cybertruck fell off the listing on the stroke of midnight, however nonetheless qualify for a $3,750 tax credit score with an extended listing of different EV fashions.
Sector watch: Tesla (TSLA) will start 2024 with a market cap larger than the valuations of Toyota Motor (TM), Stellantis (TSLA), Ferrari (RACE), Honda (HMC), Basic Motors (GM) and Ford Motor (F) mixed. Which means a vigorous bull vs. bear debate is more likely to rage on for one more yr. Outdoors of ramping up Gigafactory manufacturing, potential catalysts for the Austin-based firm within the new yr embrace a reveal of the corporate’s subsequent mannequin, developments with FSD, authorities approval for manufacturing in India, sturdy margin reversion, Cybertruck reactions, and an AI Day occasion that might showcase the potential of the Optimus robotic and Tesla’s total AI upside.