Joe Manchin Pushes To Overturn Treasury Exemption, Impacting EV Tax Credits For Ford And Tesla: 'Increasing America's Reliance On...China'
Portfolio Pulse from Navdeep Yadav
Sen. Joe Manchin is pushing to overturn the Treasury's exemption on EV tax credit rules, which he believes could benefit Chinese companies and increase U.S. reliance on China for EV battery and component supply chains. This could impact Ford and Tesla, as some of their EV models may not qualify for tax credits in the coming year. The Treasury's guidance restricts the use of Chinese content in batteries, with new regulations set to decrease U.S. reliance on China starting in 2024 and 2025.
December 19, 2023 | 9:42 am
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Ford may face challenges as some of its EV models could lose eligibility for tax credits due to the Treasury's guidance on restricting Chinese content in batteries, potentially affecting sales and investor sentiment.
Ford's stock may be negatively impacted in the short term due to the potential loss of tax credits for some EV models, which could lead to reduced sales and a competitive disadvantage. The company's reliance on specific battery components that may fall under the new restrictions increases the risk of a negative impact.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tesla could also be adversely affected by the Treasury's EV tax credit rules, as some Tesla models may not qualify for credits, potentially impacting sales and investor confidence.
Tesla's stock may see a short-term negative impact as the eligibility of some of its EV models for tax credits is threatened by the Treasury's guidance. This could lead to decreased demand for affected models and a dampened outlook from investors concerned about growth prospects.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80