August 15, 2022

Raven Tribune

Complete News World

Elon Musk says it's time to move on from this class of cars, here's why

Elon Musk says it’s time to move on from this class of cars, here’s why

The new electric car tax credit proposals, which are part of the “Inflation Reduction Act of 2022,” although they broadly support the industry, have left some Tesla, inc. TSLA Supporters disappointed.

Tesla supporters shout: Influencer on Tesla and YouTube Rob Maurer Friday on Twitter he shared an open letter to members of Congress to reconsider a ruling that “overly rewards” production of plug-in hybrid electric vehicles (PHEVs).

The proposal recommends that PHEVs, with a battery capacity of less than 7 kWh, receive the maximum credit of $7,500, he noted. This compares to the $3,334 maximum credit allowed for this class of vehicle under current legislation, he added.

His claim was that real-world tests demonstrated that the role of PHEVs in controlling emissions was “significantly exaggerated” and that it would be difficult to justify such a large credit for low-capacity PHEVs.

Related link: What does the new Senate deal mean for Tesla, Toyota and other automakers?

Maurer cited Bloomberg New Energy Finance estimates that showed EV batteries cost $132 per kilowatt-hour, and thus, a 7-kWh battery could cost just $924. In contrast, a low-emissions fully electric vehicle requires a battery capacity of 50 to more than 100 kWh, and costs between $6,600 and $13,200.

He recommended a revision of the proposal to either increase the 7 kWh requirement to align with proportional battery costs or reduce the maximum credit allowed for vehicles with lower battery capacity.

Musk responds: Maurer’s tweet that carried the text of the message as an image, the CEO of Tesla Elon Musk It might be time to move away from PHEVs, he said. “Good point. It’s time to move on from hybrid cars,” he said.

See also  Twitter's response to Elon Musk's attempt to delay trial

Tesla shares closed the Friday session 5.78% higher at $891.45, according to Benzinga Pro data.

Image: Created with Image from Steve Jurvetson on flickr