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

By Nick Godt Published November 17, 2024

ev group support tax incentive 201 seer credit eligibility — Image used with permission by copyright holder

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.

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Freelance reporter

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

Cars

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

costco ev charging us electricera fast station 1260x945

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

Trump stylized image

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.

Cars

Toyota shifts gears: 15 New EVs and a million cars by 2027

Front three quarter view of the 2023 Toyota bZ4X.

After years of cautiously navigating the electric vehicle (EV) market, Toyota is finally ramping up its commitment to fully electric vehicles.
The Japanese automaker, which has long relied on hybrids, is now planning to develop about 15 fully electric models by 2027, up from five currently. These models will include vehicles under the Toyota and Lexus brands, with production expected to reach 1 million units annually by that year, according to a report from Nikkei.
This strategy marks a significant shift for Toyota, which has thus far remained conservative in its approach to electric cars. The company sold just 140,000 EVs globally in 2024—representing less than 2% of its total global sales. Despite this, Toyota is aiming for a much larger presence in the EV market, targeting approximately 35% of its global production to be electric by the end of the decade.
The Nikkei report suggests the company plans to diversify its production footprint beyond Japan and China and expanding into the U.S., Thailand, and Argentina. This would help mitigate the impact of President Donald Trump’s 25% tariffs on all car imports, as well as reduce delivery times. Toyota is also building a battery plant in North Carolina.
For now, Toyota has only two fully electric vehicles on the U.S. market: The bZ4X and the Lexus RZ models. The Japanese automaker is expected to introduce new models like the bZ5X and a potential electric version of the popular Tacoma pickup.
Separately, Toyota and Honda, along with South Korea’s Hyundai, all announced on April 4 that they would not be raising prices, at least over the next couple of months, following the imposition of U.S. tariffs. According to a separate Nikkei report, Toyota’s North American division has told its suppliers that it will absorb the extra costs of parts imported from Mexico and Canada. Another 25% for automotive parts imported to the U.S. is slated to come into effect on May 3.

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