EV tax credit could reshape supply chain

Photo of an electric car being robotically assembled in a factory.

photo, David Hecker/AFP ,Getty Images,

The latest round of tax breaks for electric vehicles could change where our cars are assembled, the electric semi-truck Manufacturers struggling to be the first on the road, And flight delays to pre-pandemic peak levels. in all that and more morning shift For 15 August 2022.

1st gear: Tax credits could reshape supply chains

Last week, lawmakers here in the US passed A bill that would bring in a raft of new tax credits For electric vehicle buyers. But, those handouts for upgrading to a shiny new EV don’t come without their caveats, and those caveats could affect the way automakers build their cars.

New tax break removed for EVs The sales limit on such products brings the handout back to $7,500 for many manufacturers. But in return, the government is demanding that any electric vehicle worthy of the credit be made in the US. and now, Automotive News Reports That this demand could affect the way we build our cars. According to the site:

The old $7,500 tax credit – with no limit on price, income or battery content – will be in effect through the end of 2022. However, industry experts said it would immediately be modified to apply to vehicles assembled in North America.

Manufacturers of EVs — battery-electric, plug-in hybrid and fuel cell — must now decide whether they will pursue all, some or none of the new tax credits. Depending on their strategies, this could mean quickly reshaping their supply chains to rely more on credit-friendly countries and potentially looking into alternative battery chemistry to rely less on credit-outdated ones. .

Currently, about 70 percent of electric vehicles that currently qualify for the tax credit will be ineligible after the new law comes into force, Analysts estimate that it may take several years for manufacturers to move their sourcing and production to the US to qualify for the incentive.

With the next round of credits due to expire in 2032, one analyst told Automotive News that in a “worst-case scenario” automakers could spend the next five years shifting their supply chains and selling just four or more EVs. will be released for five years. which complies with the new incentives.

2nd Gear: Fisker Eyes US Factory

And just like that, one EV startup is already suggesting it may be able to move some of its US production to qualify For these new tax breaks.

Reuters reports that electric-vehicle startup Fisker was “exploring options to manufacture in the United States in 2024.” If the company can do that, its next model, the Ocean, will be eligible for the next round of EV tax credits.

Currently located in California Fisker to assemble its Ocean Electric SUV At a plant in Austria. The production of this model is expected to start in November. As new tax credits are thought to be signed into law this Friday, Fisker Ocean buyers are about to miss out on a tax break. according to Reuters,

Over the weekend, Fisker said it has reached out to U.S. customers who have pre-ordered to ensure they have the opportunity to remain eligible for the $7,500 federal tax credit for EVs, mitigating inflation. The act must be signed into law.

What’s more, if you want to sneak in and buy Fisker before the tax credit changes, you can’t. Fisker says it’s sold out Sport and Ultra variants of Ocean SUV who were to come to America

3rd Gear: Electric Semi Trucks Might Be Here Soon

If that wasn’t enough tax credit news for Monday, here’s one final nugget to kickstart your week. The new bill also includes allowances for electric haulage vehicles, including “about $374 billion in climate and energy spending for clean commercial vehicles.”

It should come as no surprise, then, that the two fastest parties in the race to build a fleet of electric semis have increased again. Shortly after the Senate passed the Inflation Reduction Act, Elon Musk tweeted that the Tesla Semi was coming this year, and Nikola announced that the automotive giant Michael Lochshaler will be promoted to CEOIndicates your newfound desire to succeed in space.

according to bloomberg,

As would be the case with passenger cars, trucks would need to meet tough requirements to be eligible for the incentive. Battery material should come from countries with which the US has free trade agreements, not countries of concern such as China. While it’s not clear how many will meet the criteria, bigger battery-powered rigs are certainly coming.

In March, shipping giant Maersk said it would buy 110 electric Class 8 rigs from Volvo Trucks. Nikola plans to deliver at least 300 trucks this year, and Daimler Trucks has electric models on the road as well.

Under the new tax break, every electric truck sold will receive a $40,000 exemption. But despite this huge stimulus, Musk has previously said that he was “not thinking at all about the economic package Biden signed.” i think his Sudden acceleration of half timeline So is it all just a happy coincidence?

4th Gear: Usain Bolt Left HWhat Electric Scooter All above

If It’s Not Getting Electric Cars and Trucks on Our Roads, It Is New approaches to electric personal mobility. things like electric bikes, skateboards, And scooters are filling the city streets as commuters look for new ways to get around the city. But despite their growing popularity, one electric scooter company is struggling in America

Founded by Olympic gold medalist Usain Bolt, Bolt Mobility has made cities across America littered with non-working electric scooters and e-bikes. The company was forced to cut back on its scooter rental business in several US markets as funding dried up. According to Automotive News,

Bolt Mobility said in an August 3 statement on its website that investors had failed to meet commitments to the company, forcing it to “substantially reduce operations”. It said franchisees continued to operate in 25 markets, but it had to leave eight that were under corporate control.

TechCrunch reports that the markets left out by Bolt include Portland, Ore. Burlington, South Burlington and Winoski, Vt.; Richmond, Calif.; and St. Augustine, Fla. Officials in several cities said the company disappeared without warning or explanation.

The company, founded by an eight-time Olympic gold medalist, has reportedly left hundreds of bikes and scooters in US cities. Bolt Mobility says it is working with local franchisees to collect discarded bikes from markets it no longer operates in.

in a statement, Bolt Mobility said That 25 of its 33 markets were now operated by independent owners. For the remaining eight markets, the company is hoping that “upcoming, agreed-upon investments,” will keep the services running.

5th Gear: US Flight Delay Top pre-pandemic level

If you want a sign that things are returning to normal after two years of Covid-19, look at airports. They started rising again earlier this year as such measures were eased, after the number of travel dwindled due to lockdowns and restrictions. But now, as passengers head back to airports, the sector is struggling to keep up with demand, bringing flight delays and cancellations back to pre-pandemic levels.

That’s correct, Reuters report That in the first seven months of this year, more flights were delayed or canceled in the US than in the same period in 2019. According to Reuters:

US-based carriers canceled 128,934 flights from January to July, about 11% more than pre-pandemic levels, according to data from flight-tracking website FlightAware. Flight delays this year have also reached close to one lakh.

American Airlines Group Inc. canceled 19,717 flights, the largest US carrier, followed by Southwest Airlines Company with 17,381 cancellations. Delta Air Lines Inc. reported the fewest cancellations at nearly 10,000 flights.

Everything from unpredictable weather to a lack of pilots and other essential airline staff has led to delays and cancellations. There is a surge in cancellations as passenger numbers once again hit pre-pandemic levels.

And it is not only in the US where such issues are taking hold. in recent months, London’s Heathrow Airport is struggling Despite previously being one of the busiest airports in the world, the number of passengers to maintain.

Upside: I Found a Shortcut

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