That's far more what General Motors and Ford are expected to receive.
, Tesla and Panasonic are expected to receive about $1.8 billion in production tax credits this year under the Inflation Reduction Act, compared to $480 million for General Motors and LG Energy Solution.
Mind you, Tesla estimates made public by CFO Zach Kirkhorn in January showed the company expects manufacturing tax credits of $150 million to $250 million per quarter in 2023, or up to $1 billion for the year – that's without Panasonic. Meanwhile, Ford won't even be getting incentives at least until 2025.
Tesla said it expects to use the money from the credit to continue cutting prices for customers as part of its strategy to sacrifice short-term profit margins to boost sales volumes as inflation and competition rise. Tesla's EV price war creates pressure for automakers like GM and Ford to slash prices, which is problematic because legacy automakers already face extraordinary profitability challenges in electrifying their lineups.incentivizes carmakers to not only assemble vehicles in the United States but also to manufacture battery pack materials domestically.
The law is designed to increase domestic electric vehicle and battery production as currently only about 10 percent of EVs in the world are assembled in the United States, according to the Bipartisan Policy Center cited byMore stories on Tesla and incentives
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