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Trade group says EV tax incentive helps U.S. industry compete versus China

By Nick Godt Published November 17, 2024

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The Zero Emission Transportation Association (ZETA), a trade group with members including the likes of Tesla, Waymo, Rivian, and Uber, is coming out in support of tax incentives for both the production and sale of electric vehicles (EVs).

Domestic manufacturers of EVs and their components, such as batteries, have received tax incentives that have driven job opportunities in states like Ohio, Kentucky, Michigan, and Georgia, the group says.

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“If the United States is going to continue to fight to bring those jobs here and actually compete to win against China, there needs to be a demand signal — like the New Clean Vehicle Tax Credit — aligned with that goal. Otherwise, we would be undercutting those investments and hurting American job growth,” ZETA executive director Albert Gore said in a statement.

The statement of support comes in response to reports that the incoming Trump administration plans to end the current $7,500 federal tax credit on the purchase or lease of an EV. Under Biden’s Inflation Reduction Act (IRA), an EV with key components, including batteries, made in the U.S. is eligible for the incentive upon purchase or lease of the vehicle.

According to some estimates, the share of EVs is expected to grow to 33% of the U.S. market in 2030. But repealing tax incentives on the production and sales of EVs is expected to reduce that share by at least 5%.

Despite the expected hit to EV sales, Trump’s plan to end the incentive has received the blessings of representatives from Tesla, the bestselling EV maker in the U.S. Tesla CEO Elon Musk was recently appointed by the incoming administration to lead a newly created Department of Government Efficiency.

While campaigning, Trump has promised to impose massive tariffs on imports, especially those from China. Earlier this year, the Biden administration already imposed 100% tariffs on Chinese-made electric vehicles.

China’s BYD, widely recognized as a global leader in the production of affordable EVs, recently backtracked from plans to reach the North American market.

Freelance reporter

Nick Godt has covered global business news on three continents for over 25 years.

Topics

Cars

The UK’s Wayve brings its AI automated driving software to U.S. shores

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It might seem that the autonomous driving trend is moving at full speed and on its own accord, especially if you live in California.Wayve, a UK startup that has received over $1 billion in funding, is now joining the crowded party by launching on-road testing of its AI learning system on the streets of San Francisco and the Bay Area.The announcement comes just weeks after Tesla unveiled its Robotaxi at the Warner Bros Studios in Burbank, California. It was also in San Francisco that an accident last year forced General Motors’ robotaxi service Cruise to stop its operations. And it’s mostly in California that Waymo, the only functioning robotaxi service in the U.S., first deployed its fleet of self-driving cars. As part of its move, Wayve opened a new office in Silicon Valley to support its U.S. expansion and AI development. Similarly to Tesla’s Full-Self Driving (FSD) software, the company says it’s using AI to provide automakers with a full range of driver assistance and automation features.“We are now testing our AI software in real-world environments across two continents,” said Alex Kendall, Wayve co-founder and CEO.The company has already conducted tests on UK roads since 2018. It received a huge boost earlier this year when it raised over $1 billion in a move led by Softbank and joined by Microsoft and Nvidia. In August, Uber also said it would invest to help the development of Wayve’s technology.Just like Tesla’s FSD, Wayve’s software provides an advanced driver assistance system that still requires driver supervision.Before driverless vehicles can legally hit the road, they must first pass strict safety tests.So far, Waymo’s technology, which relies on pre-mapped roads, sensors, cameras, radar, and lidar (a laser-light radar), is the only of its kind to have received the nod from U.S. regulators.

Cars

Costco partners with Electric Era to bring back EV charging in the U.S.

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Costco, known for its discount gas stations, has left EV drivers in need of juicing up out in the cold for the past 12 years. But that seems about to change now that the big-box retailer is putting its brand name on a DC fast-charging station in Ridgefield, Washington.
After being one of the early pioneers of EV charging in the 1990s, Costco abandoned the offering in 2012 in the U.S.
While opening just one station may seem like a timid move, the speed at which the station was installed -- just seven weeks -- could indicate big plans going forward.
Besides lightening-speed installation, Electric Era, the Seattle-based company making and installing the charging station, promises to offer “hyper-reliable, battery-backed fast charging technology in grid-constrained locations.”
Its stalls can deliver up to 200 kilowatts and come with built-in battery storage, allowing for lower electricity rates and the ability to remain operational even when power grids go down.
If that sounds like it could very well rival Tesla’s SuperCharger network, it’s no coincidence: Quincy Lee, its CEO, is a former SpaceX engineer.
Costco also seems confident enough in the company to have put its brand name on the EV-charging station. Last year, the wholesaler did open a pilot station in Denver, this time partnering with Electrify America, the largest charging network in the U.S. However, Costco did not put its brand name on it.
In an interview with Green Car Reports, Electric Era said it was still in talks with Costco about the opening of new locations. Last year, Costco said it was planning to install fast chargers at 20 locations, without providing further details. It has maintained EV-charging operations in Canada, the UK, Spain, and South Korea.
Meanwhile, the wholesaler’s U.S. EV-charging plans might very well resemble those of rival Walmart, which last year announced it was building its own EV fast-charging network in addition to the arrangements it already had with Electrify America.

Computing

U.S. restricts trade with China’s largest chipmaker due to alleged military ties

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The U.S. government has placed trade restrictions on Semiconductor Manufacturing International Corp., China's largest chipmaker, on allegations of connections to the Asian country's military.