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

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

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The new EV tax credit proposals, part of the Inflation Reduction Act of 2022, while broadly supportive of the industry, left some behind Tesla, Inc. TSLA followers disappointed.

Tesla supporters cry foul: Tesla influencers and YouTubers Rob Mason shared an open letter to members of Congress on Twitter on Friday to reconsider the provision making production of plug-in hybrid EVs (PHEVs) “too rewarding.”

The proposal recommends that PHEVs with a battery capacity of just 7 kilowatt hours get the maximum $7,500 credit, he noted. This compares to the $3,334 maximum credit allowed for this vehicle category under current legislation, he added.

His claim was that real-world testing proved that the role of PHEVs in emissions control has been “dramatically overestimated” and it’s difficult to justify such huge credit for small-capacity PHEVs.

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

Maurer cited estimates from Bloomberg New Energy Finance that showed EV batteries cost $132 per kWh, and by extension a 7 kWh battery could cost as little as $924. In contrast, a lower-emission all-electric vehicle battery requires 50 to over 100 kWh of battery capacity and costs around $6,600 to $13,200, he added.

He recommended revising the proposal to either increase the 7kWh requirement to align with related battery costs, or reduce the maximum credit allowed for vehicles with low battery capacity.

Musk replies: Quote-tweeting Maurer’s tweet, which included the text of the letter as an image, Tesla CEO Elon Musk said it might be time to move away from PHEVs. “Good point. Time to move away from hybrid cars. That was a phase,” he said.

Tesla shares ended Friday’s trading session up 5.78% at $891.45 Benzinga Pro data.

Photo: Created with an image by Steve…



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