The Model 3, which starts in the low $40K range, costs an average of $2,830 a year for full coverage. The Model Y isn’t far behind at $2,658. “Insurance for the Model 3 and other Tesla vehicles is so expensive because as a luxury car, Teslas are more expensive to repair and are a more enticing target for thieves,” the website noted.
Vehicles with powerful engines are typically more expensive to insure as they “more likely to be in damaging high-speed crashes than most other types of vehicles.” The cost to repair a vehicle also plays into how much an owner is charged for insurance.
Volkswagen of America said Thursday that it had committed $20 million to ongoing efforts to prepare its U.S. retail network to sell battery-electric vehicles, including underwriting upgrades at franchised dealerships for charging infrastructure and fixed ops.
U.S. dealers began selling the VW ID4 compact crossover in March. The automaker will begin local production in early 2022 at its assembly complex in Chattanooga.
VW said that its subsidy program, which is scheduled to continue through June, has resulted so far in dealers adding 23,490 kilowatts of charging capacity and training more than 1,260 service technicians across the country. More than 99 percent of VW dealers in the U.S. signed up for improvements needed to sell EVs.
Most large U.S. cities have yet to institute strong policies to reduce greenhouse gas emissions from transportation, and they are not on track to meet their climate goals for the sector—or have yet to set any—according to the 2021 City Clean Energy Scorecard. The report, released Wednesday by the American Council for an Energy-Efficient Economy (ACEEE), ranks 100 major U.S. cities on efforts including reducing energy waste in homes and buildings and moving toward a cleaner power grid—and doing so equitably. It identifies the leading cities, the most improved, and those with ample room for progress, citing opportunities for each to advance.
San Francisco took top honors for the first time in this sixth edition of the Scorecard, followed by Seattle (#2), Washington, DC (#3), Minneapolis (#4), and Boston and New York (tied for #5). San Francisco launched a new program that provides free home energy-saving kits to residents in areas that are disproportionately burdened by multiple sources of pollution and are economically disadvantaged. The city also updated its energy code for new residential and commercial buildings with requirements that will reduce their greenhouse gas emissions, and it was the top scorer on transportation policies.
President Joe Biden says his Build Back Better plan aims to confront the “existential threat of climate change.” So it’s unfortunate that in privileging union jobs over just about any other goal, a crucial element of the legislation would do just the opposite.
Included in Section 136401 of the House version of the BBB proposal is what looks like a harmless effort to promote electric vehicles. The bill offers a $7,500 refundable tax credit for most EVs. Consumers can then claim additional credits of up to $5,000 — but there’s a catch. To qualify for the full write-off, an EV must be manufactured by union workers, assembled in the U.S. and made with American batteries. Even the base credit phases out for all but American-made cars in five years.
Where to start with this misguided idea?
Canadian Prime Minister Justin Trudeau said Monday he has proposed harmonizing rebates with the United States for electric vehicles to avoid a trade conflict over Washington’s go-it-alone plan that risks gutting Canada’s auto sector.
His remarks followed threatened retaliatory tariffs on American goods and Ottawa’s suspension of parts of the landmark North American free trade agreement if Washington went ahead with electric vehicle tax credits for EVs made in US union shops.
“Canada and the United States have been making cars together for over 50 years now. Our supply chains are deeply integrated,” Trudeau told a news conference.
“That is why we are working very hard with the United States on getting them to understand that this proposed EV rebate for American-built cars only is not good obviously for Canada, but also not good for the United States,” he said.
The Biden Administration intends to put electric vehicles on track for 50 percent market share in the United States by 2030, and the recently-passed $1 trillion infrastructure bill will play a key role in achieving that vision. EV adoption has been hindered by two main obstacles: the cost to consumers, and the woefully inadequate patchwork of charging networks in this country. For the former, tweaks to the current electric vehicle tax credit system are being debated in the US Senate right now. On the latter, the White House released a plan on Monday that calls for a new joint office from the Departments of Energy and Transportation that will be tasked with spending $7.5 billion to effectively quintuple the American public charger network to 500,000 stalls and develop a universal charging standard.
In a release from the White House on its EV Charging Action Plan, the Biden Administration declared the joint office will begin by meeting with stakeholders at every level, from state and local governments to automakers to labor unions to environmental groups. It will then take all that information and produce both federal standards for chargers and formalized guidance to states on how to best roll them out. Concurrently, the office will also work with car companies and charger manufacturers to ensure the industry is prepared to meet these demands while still prioritizing American-made components.
Congress is getting an earful these days from America’s trade partners about the tax credits it is proposing on electric vehicles (EVs).
The complaint is that these tax credits, as written, are biased against imports, and run afoul of global trade rules. Canada and Mexico, for example, are talking about challenging the tax credits at the U.S.-Mexico-Canada Agreement (USMCA). Others, including Korea and Japan, say they might file disputes at the World Trade Organization (WTO). Last week, the European Union (EU) wrote to Senate leadership that, unless rewritten, the EV tax credits “will result in unjustified discrimination” against European cars and car parts. This letter is a game-changer, because the EU is credibly poised to retaliate.
First things first. As I’ve recently written, the tax credits come in at $12,500 per vehicle, but with protectionist fine print. The House’s Build Back Better proposes that $4,500 of this be contingent on the car being made by unionized labor, and that another $500 go to EVs with at least 50 percent U.S. content by value and have a U.S. battery. The full $12,500 tax credit would require both by 2027. The Senate’s version ties $2,500 to final assembly being done by unionized labor, and another $2,500 if the manufacturing facility is located in the US. By 2026, however, the full tax credit would require that both boxes be checked.