GOP proposes sending US EV jobs to China, giving money to elites instead
US republicans have unveiled their new tax proposal, which kills a slew of tax credits to help working families become more energy efficient, improve US air quality, and boost US manufacturing. The republican proposal instead channels that money to wealthy elites, increasing the deficit by trillions of dollars along the way.
Republicans in Congress released their 389-page proposal today and, as expected, it includes several provisions to eliminate popular clean energy credits which were driving a boost in American manufacturing.
The credits were largely established under President Biden as part of the Inflation Reduction Act, which raised hundreds of billions of dollars through tax enforcement on wealthy individuals and corporations and channeled that into energy efficiency credits for American families.
We’ve covered how families could save thousands of dollars on upgrades to lower their energy costs through these credits.
But these credits aren’t just money-saving for Americans, they also work to boost American manufacturing.
Due to various provisions in the bill, particularly around the $7,500 EV tax credit which was limited to cars that undergo final assembly in North America. While loopholes exist, nevertheless the bill resulted in a massive expansion of American manufacturing, driving hundreds of billions of dollars of investment and creating hundreds of thousands of jobs.
But now, republicans in Congress are trying to roll much of that progress back.
Here’s a life of the bill’s various effects (via the BlueGreen Alliance):
- Attaching restrictions to clean energy and manufacturing tax credits that would make them unusable in practical terms while also “sunsetting” those tax credits early, a move that research suggests will increase costs for American families;
- Repealing the Clean Vehicle Tax Credits;
- Repealing the Clean Hydrogen Tax Credit;
- Clawing back unspent funds for air quality monitoring in schools, clean manufacturing, state and community energy programs, and electric grid upgrades;
- Defunding and delaying the Methane Emissions Reduction Program (MERP), which reduces pollution and protects the health of workers and communities;
- Clawing back all unspent Inflation Reduction Act funds, including many provisions that would have lowered energy bills, created jobs, and reduced pollution; and
- Attacks on many additional Inflation Reduction Act programs and initiatives.
You can perhaps see a pattern in these effects: they’re primarily targeted towards increasing costs for regular American families who were taking advantage of these tax credits, and towards programs that would keep you and your children healthier.
Previous analyses show how repealing these tax credits would lead to increased electricity prices for all Americans.
It should not be any surprise to anyone that has been paying attention that republicans want to poison you and raise your costs, but some people apparently still need more examples, so here we are.
In particular, the new tax proposal eliminates the US EV tax credit which had driven so much of that investment due to its domestic manufacturing provision (though there are some small carveouts). Not only does that inflate the cost of the best vehicles available today for Americans, it also takes away one of the incentives that was driving investment in US manufacturing.
We’ve warned before that a bill like this would just send more EV jobs to China, a country where nobody is “debating” over which direction the auto industry is going. Chinese automakers all know the industry is going electric, and they’re putting all of their effort into it.
This is quite a contrast with Western automakers which keep hemming and hawing, begging their governments to let them go bankrupt with anti-EV policy decisions that will only slow down their transition towards modernizing to the global EV status quo.
We’ve already seen the effects of other poor policy decisions on manufacturing, with several companies pausing or canceling plans to build manufacturing facilities in North America as a result of tariff chaos at the hands of an ignoramus. Republican districts have been hit hardest, as they were where the majority of this investment had been going.
And we’ve seen it made clear that the republicans in government responsible for protecting clean air would rather poison you and raise your fuel costs, as long as it helps the oil industry which bribed them into their position.
But then, the cherry on top of today’s tax proposal is that its cuts of these credits don’t even have a greater budgetary purpose. Not only was the Inflation Reduction Act revenue-positive – which is to say, it raised more money than it spent, thus reducing the deficit – today’s republican tax bill is revenue-negative, which is to say, it will increase the deficit.
The republican proposal raises the debt ceiling by $4 trillion, and it makes use of virtually all of that headroom, as the Joint Committee on Taxation has estimated that it will add $3.7 trillion to US debt. This is largely due to the bill’s significant giveaways to wealthy elites, with the majority of tax cuts targeted at the wealthiest households.
So the government isn’t even getting any savings out of this bill, merely channeling more money from working families to the wealthy elites that the republican party has always tried to benefit (including in other ways than the clean energy credits, like by cutting health care for the poor).
If you have a republican representative, all it takes is 3 republican Congresspeople to oppose this job-killing bill and to stand up for the well-being of their constituents.
Solar industry analysts have identified four republican Congresspeople who might be swayed in this respect, with their contact info below (Find out more about how this will affect the solar tax credit in this article by Electrek’s Michelle Lewis)
But there are many others whose districts have received significant investment, with EV projects being particularly popular in states like Georgia, North Carolina, and others along the burgeoning US “battery belt”. An interactive tool, including the ability to sort by congressional district, is available here.
Otherwise, you can find your representative on Congress’ website, and then search for the contact form on your representative’s website to get in contact with them.
Of course, if you have a Democratic representative, it’s also worth letting them know that you oppose the tax bill, just in case a few of them decide to jump ranks and join the republicans in harming America. We certainly hope they don’t, but it could happen.
Among the proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now.
To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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Wind turbines operate at a wind farm near solar panels on March 6, 2024 near Palm Springs, California.
Mario Tama | Getty Images
President Donald Trump on Wednesday said his administration will not approve solar or wind power projects, even as electricity demand is outpacing the supply in some parts of the U.S.
“We will not approve wind or farmer destroying Solar,” Trump, who has complained in the past that solar takes up too much land, posted on Truth Social. “The days of stupidity are over in the USA!!!”
The president’s comment comes after the administration tightened federal permitting for renewables last month. The permitting process is now centralized in Interior Secretary Doug Burgum’s office.
Renewable companies fear that projects will no longer receive permits that were once normal course of business. The president’s comments Wednesday will likely heighten those concerns.
Trump blamed renewables for rising electricity prices in the U.S. Prices have risen on the nation’s largest grid, PJM Interconnection, as rapidly growing demand from data centers and other industries faces a tight power supply as resources such as coal plants are retired.
PJM Interconnection saw prices for new power capacity rise 22% compared to last year in an auction held last month. PJM covers 13 states across the Mid-Atlantic and parts of the Midwest and South.
But solar and battery storage are the power sources that can ease the supply-and-demand gap the quickest, as they make up an overwhelming majority of the projects in line to connect to the grid, according to data from Lawrence Berkeley National Laboratory.
Trump has launched a sweeping attack on renewables since taking office. His One Big Beautiful Bill Act terminates the investment and production tax credits for wind and solar by the end of 2027. Those credits have played a key role in the expansion of renewable energy in the U.S.
The president’s steel and copper tariffs have also increased the costs of solar and wind projects, renewable companies say.
The U.S. Department of Agriculture on Tuesday ended its support for solar on farmland.
The new electric SUV officially went on sale in the UK on Tuesday. BYD revealed Atto 2 prices will start from £30,850, undercutting much of the competition.
BYD Atto 2 prices and range in the UK
After introducing the Atto 2 at the Brussels Motor Show in January, BYD said it’s “opening a new chapter in green travel” in Europe.
The compact electric SUV will fill the gap in BYD’s lineup between the Dolphin and its larger Atto 3 SUV. It went on sale in China last year and is now available in Europe and the UK.
BYD announced Atto 2 prices start at £30,850 ($41,500) on-the-road (OTR). It’s available in two trims: Boost and Comfort. Upgrading to the more premium Comfort model will cost you £34,950 ($47,000).
The base Boost models are powered by a 51.1 kWh BYD Blade battery, offering a range of up to 214 miles. In the city, BYD said the Atto 2 can drive up to 302 miles on a single charge. Comfort models are equipped with a larger 64.8 kWh battery, delivering up to 261 miles of range.
With a 155 kW DC fast charger, BYD said the electric SUV can recharge from 30% to 80% in as little as 21 minutes.
All Atto 2 models come with a 12.8″ floating touchscreen, wireless smartphone charger, and “Hi BYD” AI voice control. With vehicle-to-load (V2L) capabilities, BYD said the electric SUV can power up a coffee maker or lawnmower.
With prices starting at just £30,850, BYD undercuts rival models, including the Hyundai Kona Electric (£34,995). However, according to Autocar, BYD is not necessarily targeting Hyundai. It’s aiming for more premium models, such as the Volvo EX30, which starts at £33,060.
| BYD Atto 2 trim | Range (combined) | Starting Price (OTR) |
| Comfort | 214 miles | £30,850 ($41,500) |
| Boost | 261 miles | £34,950 ($47,000) |
Measuring 4,310 mm long, 1,830 mm wide, and 1,675 mm tall, the Atto 2 is about the same size as the Volvo EX30. However, BYD’s e-Platform 3.0 enables more interior space with an extended wheelbase.
The Boost trim is available to order now, while the Comfort model will arrive later this year. BYD will begin deliveries in September.
The Atto 2’s arrival in the UK comes after BYD launched it in Hong Kong earlier this month, undercutting Tesla’s cheapest vehicle by about 30%.
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Thousands of Britons have voiced opposition to a request by Tesla to supply electricity to British homes.
And what’s the sole reason for this opposition? It’s because of Tesla CEO Elon Musk.
Last month, Tesla applied for a license to supply electricity to British homes. The application was sent to Ofgem, UK’s government energy regulator.
In addition to Tesla’s business selling EVs, and its CEO’s business making promises about autonomy and robots that never materialize, Tesla is also in the business of selling energy products.
The energy products include solar panels, after Tesla’s controversial acquisition of SolarCity, a company run by Musk’s cousin Lyndon Rive, in 2016. They also include Powerwalls, Tesla’s home battery backup system which can store energy from a home’s solar panels or from the grid, and then use it or sell it back to the grid later during peak hours when electricity is most expensive.
But even more interestingly, Powerwalls can be hooked into a network, called a Virtual Power Plant or VPP, which allows thousands of batteries to simultaneously push energy to the grid when the grid needs it. This can help to end power outages and can also make a significant amount of money for homeowners who participate.
A VPP can also help with overall grid stability. While a single battery doesn’t do much to help the entire grid, thousands of batteries all together can help to shave peaks and shift loads grid-wide, helping to enable the transition to renewable forms of energy generation like wind and solar, which can be intermittent due to weather, clouds, gusts of wind and so on.
And the UK is doing quite well at renewable adoption – the island which started the industrial revolution because it’s literally built on a bed of coal just shut down its last coal plant last year. Clean electricity growth is strong, with over half of its electricity coming from renewables sources last year.
And it has set even more ambitious goals going forward, targeting an 81% emissions cut by 2035.
So, a VPP might be useful in a country with so much wind and solar.
While Tesla’s application does not specify details of its plans (In accordance with UK law), it seems likely that the purpose behind the application would be to set up a VPP system in the UK. Tesla already runs VPPs in Texas and California.
So, all sounds good, right? This is a useful product, and it can help the UK confront a challenge it will need to face as it transitions to a cleaner grid. And, at a time when electricity prices are going up worldwide, more competition and flexibility in energy markets can only be a good thing.
The only problem? Everyone hates Elon Musk. A lot.
As it turns out, Ofgem has been swamped with thousands of comments opposing Tesla’s plan, as a result of a campaign that says Musk shouldn’t be allowed to get anywhere near UK’s electricity supply.
The campaign was launched by the group Best for Britain, which bills itself as “the researchers, data scientists, strategists, and activists, fixing the problems Britain faces after Brexit.”
It set up an action campaign allowing Brits to send a letter to Ofgem stating their opposition to Tesla’s plan.
The letter argues that Musk has proven, through his recent political activity, that he is not interested in the general wellbeing of the populace, but rather in “enriching himself”pushing his own agenda.” It accuses him of “dangerous incompetence or wilful neglect,” and says that these should be “disqualifying qualities for entrance into our energy markets.”
For background, while Musk claimed to be working to reduce US government waste (when he actually increased the deficit), he in fact spent that time advising the US to defund entities investigating his unlawful actions.
The letter also mentions the “rapid spread of misinformation, hatred and conspiracy theories in the UK and across the wider world” on twitter since Musk spent $44 billion to buy the company (that later dropped to a value closer to $15 billion – his recent purchase of it from himself notwithstanding). After Musk purchased the platform, hate speech has flourished there.
None of the points made by the letter focus on Tesla’s business as a whole, but rather solely on its CEO’s harmful actions.
As of yesterday, Best for Britain says 8,462 people had used it to contact Ofgem to voice their opposition to the plan. Public comment remains open until Friday, August 22.
Musk’s actions continue to harm Tesla’s business
This is not the first time Tesla has received local opposition for business deals due to Musk’s poor public persona. In May, Australians voiced opposition to a plan to build a battery factory and Tesla showroom, ~95% of which opposed the plan (with some choice Australian language appearing in the public comments).
And just yesterday, the Austin American-Statesman reported opposition to Tesla’s tax breaks from residents of the county where its Texas Gigafactory is located.
Separately, Musk has received pushback in the UK and elsewhere for his support for extreme rightwing and racist political figures, both in the US where he gave hundreds of millions of dollars in bribes to a treasonous felon who tried to overthrow the US government, and in the UK where he has given both rhetorical and monetary support for a violent racist fraudster who has been imprisoned multiple times.
His unambiguous Nazi salutes, agreeing with a defense of Hitler’s actions in the Holocaust, support for German neo-Nazis, and many other white supremacist statements didn’t help, either.
Beyond his association with racist politics, he has also directly spread misinformation about climate change himself, despite this being a contradiction of Tesla’s mission. Musk has even said that his own recent actions are “not good for America or the world.”
The result of these actions has been to drive protests against the company, embarrass owners and destroy Tesla’s brand reputation.
In the UK specifically, Tesla sales have fallen by 60% year-over-year, according to the most recent July numbers. Tesla sales show similar trends in most territories in which the company sells, with Tesla sales down globally despite a rising global EV market.
Nevertheless, despite Elon Musk demonstrably being the problem with Tesla right now, his friends and family on Tesla’s board recently gave him a ~$29 billion payout, claiming that it would “energize and focus” the company’s bad CEO.
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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