Tesla and other automakers are set to cash in on economic incentives signed into law in 2022.
The law encourages companies to manufacture both cars and batteries domestically.
Tesla, with several factories already operating stateside, is on track to get the most tax breaks, one estimate found.
Tesla's years of scaling up its manufacturing presence in the United States are set to pay dividends as incentives from President Joe Biden's package of economic laws go into effect.
According to estimates from Benchmark Mineral Intelligence, as reported by Bloomberg, Tesla and Panasonic, which is Tesla's partner in battery manufacturing, are set to receive some $41 billion in tax credits over the next decade. That's way more than domestic competitors like Ford, for example, which won't be getting any of the incentives until at least 2025, according to the report.
The Inflation Reduction Act, which was passed in August, incentivizes automakers to not only assemble vehicles in the United States but also to manufacture above a certain percentage of battery packs' materials domestically. Tesla, with several automotive and battery factories already in use stateside, had a massive headstart on many other automakers.
Only about 10% of EVs in the world are assembled in the United States, according to the Bipartisan Policy Center, with an even smaller share of battery manufacturing.
On the consumer side, the law also gives a two-pronged benefit for buying electric cars. A $3,750 tax benefit for a car manufactured in the United States, and another $3,750 if its batteries meet similar requirements. There are also stipulations about a vehicle's maximum sticker price.
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