Senate approves 'Big Beautiful Bill': Eliminates electric vehicle tax incentives in the US

The US Senate has passed a bill that aims to provide tax certainty for the trucking industry and potentially reshape the automotive landscape. The bill, which is expected to be signed into law before July 4, has sparked a heated debate among various sectors of the automotive industry and clean energy advocates.

The bill, which reduces fines for non-compliance with Corporate Average Fuel Economy (CAFE) standards to zero, has raised concerns among EV manufacturers and the clean energy sector. Tesla, led by CEO Elon Musk, has strongly condemned the bill, with Musk calling it a "disgusting abomination." Musk has also promised to unseat lawmakers who approve the bill.

The clean energy sector and EV manufacturers are concerned about the potential impact of the bill on their investments. The American Clean Power Association believes the bill could strand billions in investments, while Tesla has expressed a strong opposition to the bill. The automotive industry in the US has rallied against the early ending of EV consumer tax credits, a provision included in the bill that ends the credits by September 30.

On the other hand, the trucking industry, which employs over 8.5 million Americans, and some associations in the automotive logistics industry, such as road logistics and truckers, back the bill. They argue that the bill will help trucking companies better plan for the future, invest in their workforce, and equipment. The American Trucking Association supports the bill, stating it guarantees tax certainty for trucking companies.

The National Automobile Dealers Association has previously requested more time to get rid of their EV inventory, and OEMs may still be required to continue tracking CAFE standards, despite the bill. The bill multiplies fines for non-compliance with CAFE standards, making them inconsequential. However, the lack of specific information regarding any company that opposed the bill remains unclear.

The passage of this bill has certainly stirred up a storm in the automotive industry, with strong reactions from both supporters and opponents. As the bill awaits the President's signature, the future of the automotive industry and the clean energy sector hangs in the balance.