EV tax credits were a significant item in the news this week as the Affordable Electric Vehicles for America Act was introduced in US Congress. There were also interesting developments in the robotaxi space as major players continued to deploy robotaxi services in US cities. Finally, we discuss the latest downward price trends in the used car market.
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Hot Topics of 11/14/2022
EV Tax Credits
- EU envoy says 'hopeful' about getting changes to U.S. EV tax rules
- House lawmakers join senator in push for delayed phase-in of EV tax credit requirements
- Ford, Toyota Are at Odds With Their Suppliers Over EV Tax Credit
- Automakers, foreign governments seek changes to U.S. EV tax rules
- Almost all electric vehicles would qualify for the US EV tax credit with new Congress bill
My thoughts:
Should EV tax credits be extended to buyers of imports that have committed future investment in US-based EV assembly plants? If the goal of the IRA is to spur investment while accelerating the uptake of EVs, then the proposed Affordable Electric Vehicles for America Act makes sense. Consumers would benefit from a broad offering of EVs beginning in January 2023 that qualify for the tax credit while further US-based manufacturing is incentivized. EV sales will no doubt accelerate when tax credits are more broadly applied. And what about union jobs? The UAW is well informed of investment in the Southeastern US and is working to bring wage equity to a broader workforce.
Robotaxis
- Waymo starts full-fledged robotaxi services in Phoenix
- Streets of San Francisco test mettle of Cruise robotaxis
- Waymo can now charge for fully driverless services in San Francisco
- Nissan sets up a new entity in China, focusing on robotaxi services
- Mercedes To Emphasize Efficiency & Range Over Robotaxis
- XPeng's G9 arrives as first unmodified, mass-produced EV to qualify for autonomous robotaxi testing
The seductive pull of AV continues even as big players such as Ford and VW exit. AVs offer great promise – enhanced mobility, reduced crashes, fewer injuries, and less demand on first responders – but the technology has been challenging to harness. The question remains: "How safe is safe enough"? For the optimists among us, big players like Waymo and Cruise continue robotaxi development and are cautiously expanding deployment in certain cities. AV technology seems to have found a sweet spot in construction/agriculture applications. Other OEMs are tapping the brakes on robotaxi development and instead are focusing on enhancing ADAS systems – approaching Level 3 autonomy. Will AVs be limited to con/ag and delivery rather than passengers? Stay tuned.
Used Car Prices and Online Retailers
- Used car prices keep dropping
- Online Car Retailers Are Struggling; Vroom Reports $50 Million Loss This Quarter
- Carvana shares plunge to record low as used-car prices fall fast
- Carvana, Used-Car Trading and Sustainable Businesses
My thoughts:
Used car prices are falling…finally. Falling prices are great news for buyers but headwinds for online car retailers. It seems the risk associated with retailers purchasing a car sight unseen is higher than expected as profit margins have slimmed. Does this mean the end of easily accessible online retailers? I don't think so. The convenience of buying or selling a used car – transportation, documentation, cash transfer – has never been easier. Even traditional dealerships have added online components. I expect this channel to continue through with more scrutiny in pre-trade inspections.
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Best Regards,
Alan AmiciPresident and CEOCenter for Automotive Research
