The Senate Passes Inflation Reduction Act, Including Electric Vehicle Tax Credit

Trending News ☀️

The Senate’s Inflation Reduction Act, which includes the electric vehicle tax credit, is a major victory for the US auto industry. The $7,500 electric vehicle tax credit will be renewed in January of 2023 and last until the end of 2032. A striking new requirement is that qualifying cars must be assembled in North America and that materials and critical minerals in the battery must come from the US or a country with a free trade agreement with the US. This is good news for Tesla ($NASDAQ:TSLA), as the company is one of the leading manufacturers of electric vehicles. The tax credit will help to make Tesla’s cars more affordable for consumers, and the requirement that cars be assembled in North America will create jobs in the United States.

Market Reaction

TESLA stock opened at $885.0 and closed at $871.3, up by 0.8% from previous closing price of 864.5. The electric vehicle tax credit is a positive step for the company, and investors are bullish on the stock.

VI Analysis

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Summary

This is good news for Tesla, as it means that the company’s products will become more affordable. This, in turn, is likely to boost demand for Tesla’s products and help the company’s stock price.