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Old 05-27-2021, 02:22 PM   #7 (permalink)
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Originally Posted by rmay635703 View Post
Originally there was talk that this rebate would be an up front subsidy not based on tax liability removing income issues.

The article is poorly written with no detail about the mechanics of the bill that matter.

AKA It could have just said $12500 EV rebate passes committee and had no other detail and it would have been just as informative.

The real effects of how this thing functions dramatically change the conversation
Since I’m gonna guess if it comes out as being a payment direct to anyone’s pocket who buys you will be in even more of a rage, right?
The wealthier among us buy new vehicles. Making it an upfront rebate still puts wealthy people who purchase new vehicles at an advantage, because poor people still aren't going to buy a $40k vehicle that has been subsidied down to $28k.

Besides all that, manufacturers and dealerships will simply increase price to balance supply and demand.

EVs are made in limited quantities because battery manufacturing is constrained. Creating subsidies to purchase EVs aren't going to magic more batteries into existence, and it's not going to magic a lower purchase price. Supply and demand sets the price, and nothing else. Artificially increase demand with a subsidy, and the price must go up.

As an example, the Chevy Bolt can be had new for low $20s (somewhere around $24k) with no subsidy. That's lower than the subsidized price back when Chevy still had the full $7,500 federal credit.
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Last edited by redpoint5; 05-27-2021 at 05:11 PM..
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