Phaseout of Federal tax credit for GM

[WetEV]

https://insideevs.com/top-6-automakers-200000-federal-tax-credit-limit/

So the phaseout starts. Full Federal Tax Credit of $7,500 (as far as I understand) continues to 1 April 2019, then reduces to $3,750 until 1 October 2019, then reduces to $1,875 until 1 April 2020.

 

[theothertom]

I guess the law is the law, but Chevy's EV sales numbers are "inflated" due to the Volt. The Volt was good at the time, but only offered ~30 miles electric range. I wish the government would change the law so that only BEV's are counted. Oh well...

 

[WetEV]

I guess the law is the law, but Chevy's EV sales numbers are "inflated" due to the Volt. The Volt was good at the time, but only offered ~30 miles electric range. I wish the government would change the law so that only BEV's are counted. Oh well...

Plug in hybrids were a reasonable design choice in 2010. Batteries were far more expensive, and getting the most common commuting and other shorter trips on electric was a win. If gasoline price rose a bit, the Volt might have been a real winner. As it was, it was a gateway EV for a lot of people...

Battery prices below $300 per kWh put the squeeze on PHEVs and on conventional hybrids as well. Battery prices below $150 per kWh put the squeeze on ICEs.

 

[theothertom]

If I read the chart correctly, current US conditions for battery prices are around $200/KWh. Is that correct? IF so, that puts a 60KWh battery at $12K. I don't know what a gasoline engine costs but my thoughts are it's < $12K, which makes ICE a cheaper option. The chart compares EV battery cost to gasoline cost. There must be an assumption of electricity costs in the calculations that I missed. Anyway, I'm more interested in manufacturing costs. I believe when the price of EV's is about equal to ICE cars, people will adopt EV's a lot quicker.

Just as a data point, but a Kia Soul ICE MSRP is around 23K, while the Soul EV is around 33K. The 10K difference seems a bit high to me, but maybe it's because Kia is counting on customers getting the 7500 credit so the sticker shock won't be so bad ?

 

[WetEV]

If I read the chart correctly, current US conditions for battery prices are around $200/KWh. Is that correct?

More like $150 per kWh.
http://www.mychevybolt.com/forum/viewtopic.php?f=11&t=155#p660

Tesla is claiming under $100 per kWh.

The chart compares EV battery cost to gasoline cost. There must be an assumption of electricity costs in the calculations that I missed.

Gasoline costs vary a lot. Electric costs don't from year to year, but can be rather different in different places. Assumption is national average.

I believe when the price of EV's is about equal to ICE cars, people will adopt EV's a lot quicker.

Yes, and this will vary somewhat by size of vehicle, but is going to start happening around 2025 if price trends continue.

Just as a data point, but a Kia Soul ICE MSRP is around 23K, while the Soul EV is around 33K. The 10K difference seems a bit high to me, but maybe it's because Kia is counting on customers getting the 7500 credit so the sticker shock won't be so bad ?

EV production is mostly battery cell supply limited. So why lower the price? Or advertise?

 

[AyeJay]

I guess the law is the law, Oh well...

I urge everyone here to please sign this petition re:

-- Tell the Senate: Don't kill the EV tax credit.

-- Support an extension of the EV tax credit.

https://pluginamerica.salsalabs.org/reformevtaxcredit?wvpId=ef1070fa-5547-45b3-b589-3fddfee81120

"We need continued support to help consumers make the switch to driving electric. The $7,500 federal EV tax credit is a key policy that must be extended to work for more drivers for a longer time frame. The original tax credit has been a successful incentive so far, but the EV market is far from fully mature."

Thank You,

AJ