Saturday, October 1, 2022

Other Billions for Tesla in the New US EV Bill $TSLA

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It is commonly known that the recent Inflation Reduction Act bill” will provide $7500 tax credits for buyer of EVs in the United States. This will enable EV makers who mostly make their EVs in the US to get billions in increased profits if they were to make and sell a lot of EVs. Tesla making and selling 500,000 EVs would see about $3.3 billion per year in benefits split between the company and its customers.

There is also $35-45 per kWh for makers of batteries made in the US.

Tesla has half of the nearly 40 GWH/year battery factory in Nevada and all of the soon to produce 10 GWH/year factory on Kato Road in Fremont California and the Austin Texas battery factory which should make 10 GWH by the end of the year and 50-100 GWH in 2023.

The batteries produced should provide another $1-2 billion in tax benefit to Tesla in 2023 and $3-5 billion in benefit in 2024.

If Tesla masters scaling 4680 battery production in Kato road and Texas then any new battery factory making over 110 GWH would be completely paid for by the US government.

This would be the same for other EV battery makers that have or build battery factories in the US.

EDIT: $35 off per kWh, that would equate to over $5B in valued subsidies, per year! Keep in mind, this does not even include the benefits Tesla will receive from the $7,500 vehicle credit (e.g. being able to keep prices higher due to increased consumer demand)…

— Dedafima (@dedafima) August 27, 2022

Yup, even the $1.3B $TSLA will likely get in 2023 would make a big dent in the price of a new gigafactory. Assuming each new gigafactory costs $5B, $TSLA would need closer to ~110GWh of U.S. production for gigas to essentially start paying for themselves. Should happen by 2024/25

— Dedafima (@dedafima) August 28, 2022

Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.

Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.

A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts.  He is open to public speaking and advising engagements.

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