Buy an EV and “never worry about gas prices again”
Transportation Secretary Pete Buttigieg said earlier today in an interview on MSNBC that those who buy electric vehicles will never have to worry about gasoline prices again, as the fees at the pump have continued to rise over the past year.
Buttigieg told Jonathan Capehart on “The Sunday Show” on MSNBC that electric vehicle owners will essentially get a “$ 12,500 rebate” on the cost of a vehicle. However, this only happens if a consumer ends up buying a Chevrolet Bolt EV, as it is currently the only vehicle to qualify for the full tax credit under the President’s “Build Back Better” plan. Joe Biden. The plan encourages the purchase of electric vehicles. The base amount of the credit remains at $ 7,500, but increases by $ 4,500 if the electric vehicle is manufactured in the United States by a unionized workforce. Another $ 500 will be added if the battery used in the vehicle was manufactured in the United States, as the bill reads. It was recently passed by the House and goes to the Senate.
Most electric vehicle owners will still receive the $ 7,500 credit regardless of what they purchase. Tesla vehicles will only qualify for this amount plus the additional $ 500 for a US-made battery.
However, Buttigieg is right about the lack of concern for gas prices if drivers switch to electric vehicles. According to AAA, the current cost of a regular gallon of unleaded gasoline is $ 3.39. This is an increase of $ 1.27 from prices a year ago, when a gallon of the same gas was $ 2.12.
Electric vehicles take gasoline out of the equation altogether while providing more affordable charging options and even the convenience of home charging. âThe people who benefit most from owning an electric vehicle are often the rural residents who have the most distances to travel, who consume the most gasoline, and underserved city dwellers in areas with low gas prices. gasoline are higher and incomes lower, âButtigieg said. during the interview. âThey would gain the most from having this vehicle. These are the same inhabitants who have not always been connected to electric vehicles considered to be some kind of luxury item. “
Price parity is an issue that all electric vehicle manufacturers have addressed throughout the life of the electric movement. Currently, the widely accepted value of $ 100 per kWh is what most analysts believe will bring electric vehicles at prices comparable to gasoline-powered cars. Bloomberg New Energy Finance said battery prices had fallen to an average of $ 137 per kWh in 2020, and this year’s semiconductor shortage has only pushed up vehicle prices across the board. “If we can make the electric vehicle cheaper for everyone, more people can benefit from it, and we will sell more electric vehicles made in the United States, which means that over time they will become cheaper to manufacture. and to buy for everyone. ” said the transport secretary.
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