Tesla positioned to cash out Biden’s $7.5 billion donation

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electric vehicle manufacturer tesla will change its business model and filling up The stations are open to cars from all manufacturers, not just their own cars, as Congress put the finishing touches on the infrastructure bill this fall.

Platform neutrality is a key requirement of the infrastructure law, which allocates $7.5 billion to begin the construction of a broad platform network. filling up ports. The Biden administration’s goal is to steer the country’s highways away from fossil fuels.

teslaThis move signals hope of having an insider way to raise the bulk of taxpayers’ money.

tesla did not respond to requests for comment.

While planners outline how the $7.5 billion will be spent, analysts speculate on who will take part in the action.

Leading candidates include automakers and utility companies with large pockets. filling up stations.

Green energy advocates say the details matter less than the symbolism of $7.5 billion in taxpayer money. They hope the investment will give the public a lasting sense of commitment to end America’s gas-burning habit.

“It’s like chicken or egg. If there isn’t more, people won’t feel comfortable buying electric cars. filling up stations founder and CEO Michael D. Farkas,” said. Flashing Charge. His company is building places across the country for drivers to charge electric cars.

Thomas J. Pyle, head of the Free-market Energy Research Institute, said the government should let the chickens and eggs go. He said companies hoping to capitalize on the auto industry’s transformation should pick up the tab.

“If it’s truly emerging technology, the market signals need to be there for Teslas to invest in infrastructure,” said Mr. Pyle.

He said government powers could distort the decision-making process by trying to pick winners from the technological options available. He said consumer demand should drive where and what types of chargers are manufactured.

The legislation will provide funding to deploy EV chargers along highway corridors to facilitate long-distance travel and to ensure favorable conditions within communities. filling up A White House memo said it’s where people live, work and shop.

Most of the decisions have not been made yet.

The $7.5 billion was caught in the $1.2 trillion infrastructure bill that President Biden signed last month. The language does not specify when, where and how the network will be set up, except for state funding. filling up stations are public and unregistered.

The Department of Energy, and perhaps the states that manage most of the federal money, will also have to decide on a particular type of station. Level 2 connections take hours to charge a battery, but DC fast chargers can charge a battery in as little as an hour.

The Department of Energy lists about 45,000 publics filling up Stations with over 120,000 ports in the USA

About 41,000 of the stations have Level 2 connections and 5,600 have DC fast chargers.

Carla Bailo, president and CEO of the nonprofit Center for Automotive Research, said more work will be needed to figure out the best way to use the money.

“Don’t rush. Do it right,” he said.

stores such as Whole Foods and Walmart they partner with Blink and other companies will set up points where drivers can charge EVs while shopping.

Most car owners charge their electric vehicles at home overnight. A full battery can drive a car about 200 miles. Owners are likely to use their chargers at home, unless they’re taking long trips.

If fast-filling up The stations built to allow drivers to sit idly by, Farkas said, would make the landscape a “white elephant” for the industry.

Edward Sanchez, senior automotive analyst at global consulting firm Strategy Analytics, said the Department of Energy estimates that 40% of US drivers do not have a garage or other place to install their car at home.

Mr Sanchez and Mr Farkas said it may be more important to subsidize stations that can charge vehicles in between two and six hours.

Mr Farkas said federal and local governments are moving away from paying upfront for construction. filling up stations, and instead they only reimburse companies after installation.

He acknowledged that taxpayers’ dollars could go to companies that would otherwise finance it. filling up but the infrastructure money will allow them to build more.

Ms. Bailo said the US is lagging behind European and Asian countries in electric vehicle development, and companies around the world are investing billions of dollars to meet demand. Almost every automaker is developing electric vehicles and will benefit more from it. filling up stations, he said.

Ms. Bailo said electric vehicles currently cost more to produce, so manufacturers don’t make much profit from them. Production costs are expected to change in the long run as auto companies make the switch.

Ms. Bailo said some gas companies are installing battery chargers and turning into “power stations”.

No matter which companies win government money, critics say it’s the taxpayers who lose out—particularly those on the lower economic tiers who see city buses and subways as more realistic means of transportation than the $45,000 Tesla.

“Democrats are poised to spend billions of dollars on electric vehicles and EV infrastructure, a taxpayer-funded gift to the wealthy,” said Jack Heretik, spokesman for Republicans on the House Energy and Commerce Committee. “The Democrats’ EV agenda is wealth transfer from American workers who can’t afford EVs to the rich.”

Mr. Biden did not let these criticisms crush his dreams.

“We will establish our first national network. filling up stations nationwide – more than 500,000 of them. … so you can travel the whole damn country from the East Coast to the West Coast, just like you are now standing at a gas station,” he said last month.

An analysis by Alix Partners, a global business consulting firm, shows that the president’s dreams are not big enough. Alix found that if the popularity of electric vehicles continues at the same rate, the number of vehicles increases. filling up Points in the country will need to increase to 1.5 million by 2030.

Analysts think that, given the lower price of electricity, the costs of purchasing and owning an electric vehicle could be roughly the same as for a vehicle powered by an internal combustion engine.

Akshay Singh, director of industrial and automotive industries at PricewaterhouseCoopers USA, said Democrats could argue that the $12,500 per vehicle tax credit proposed in the upcoming budget bill should be spent. filling up because electric vehicles will become more affordable.

$7.5 billion isn’t a lot, but it’s a good start, he said.



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