Tue. Sep 27th, 2022

Democratic House legislators introduced legislation that would provide a $4,500 tax credit to consumers who purchase electric vehicles built in United States facilities that have a union. Musk claimed that the law was crafted by Ford as well as the United Auto Workers (UAW) union lobbyists.

“Because Ford/UAW makes its electric car in Mexico, this is authored by Ford/UAW lobbyists. It’s not clear how this benefits American taxpayers. “The Tesla billionaire tweeted a link to a Bloomberg piece on Ford’s Mustang Mach-E automobiles being manufactured in Mexico. The $4,500 incentive might benefit unionized US automakers like Chrysler, GM, and Ford, while Tesla, which has resisted unionization in the past, could lose out.

Musk did not present any evidence of Ford and UAW lobbying. When asked about Musk’s comments, a UAW spokesperson did not answer, but he did emphasize a statement from Ray Curry, the UAW President endorsing the law. Ford did not respond to Insider’s seeking comment right away. The plan also includes a base consumer incentive valued at $7,500 for new electric vehicles sold in the United States, which would be valid for five years for foreign-made vehicles. This clause would apply to Ford vehicles built in Mexico.

Musk responded “ahem” and mentioned the president’s official account in a follow-up tweet in response to a Twitter user who claimed President Joe Biden should make American-made cars a priority. Tesla, as well as the Biden administration, had already shown signs of discord over the firm’s anti-union position. In August, Biden hosted an event honoring American electric automobiles, but Tesla was conspicuously absent. Musk said at the moment that it was “strange that Tesla wasn’t invited” and that foreign firms without US unions would be disadvantaged as a result of the incentive. According to Reuters, Toyota and Honda issued comments on opposing the law. The law, according to Toyota, discriminates against “American autoworkers who have chosen not to unionize.” The Committee of House Ways and Means is expected to vote on the bill, according to Reuters.

Tesla, Inc., headquartered in Palo Alto, California, is an electric vehicle and green power firm. Tesla creates electric vehicles, battery energy storage from the home to the solar panels, grid, solar roof tiles, and other products and services. Tesla sold the most battery-electric and plug-in electric cars in 2020, accounting for 16 percent of the plug-in market (which comprises plug-in hybrids) and 23 percent of the battery-electric (fully electric) market. The company produces and installs solar systems in the U.S. via its subsidiary Tesla Energy. With three gigawatt-hours (GWh) deployed in 2020, Tesla Energy is among the largest worldwide battery energy storage systems suppliers.

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