Shulou(Shulou.com)11/24 Report--

CTOnews.com, March 23 (Xinhua)-- Tesla told employees that his cheapest electric car is expected to lose all $7500 in federal tax breaks because it uses batteries from China, according to Electrek.

According to CTOnews.com, in August 2022, the US government announced that from January 1, 2023, the US government would provide a tax credit of up to US $7500 per newly sold electric vehicle, provided that the vehicle's battery components must be manufactured or assembled in North America, and that the battery must also contain key minerals mined, processed or recycled in the United States or countries with free trade agreements with the United States. The final assembly of the vehicle must also take place in North America.

However, when the new tax breaks came into effect in January, officials did not issue guidelines on how these requirements would work in time, so they were postponed to the second quarter. By then, the Internal Revenue Service (IRS) is expected to issue detailed guidelines on how these requirements are accounted for.

Demand from some electric car manufacturers has surged since January as a new federal tax credit scheme for electric vehicles began. Tesla was the biggest winner because its buyers completely lost the opportunity to get tax breaks years ago after the carmaker delivered 200000 vehicles in the US.

Over the past three months, eligible buyers of Tesla's Model 3 and Model Y models in the US, the cheapest and most popular models of the carmaker, have received a $7500 tax credit.

However, the situation will change by the end of March. At that time, the new tax credit program will be announced, which includes requirements for the production of batteries in North America and the procurement of battery materials in countries with free trade agreements with the United States.

Now Electrek has learned from people familiar with the matter that Tesla has communicated to employees that IRS is expected to release guidelines in the near future, and the company expects to lose the full tax credit for the standard life version of its cheapest model, Model 3.

The standard continued version of Model 3 was built in Fremont, California, USA, but its battery pack uses LFP battery units made in China.

Tesla is expected to receive a full tax credit for other Model Y and Model 3 models in the United States because they use battery units made by Tesla or Panasonic in Nevada, California or Texas.

Battery material procurement is also a problem, but Tesla seems to believe it will not be a problem, as most of its battery materials come from countries with free trade agreements such as Australia and Canada.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.