Your Credit is Expiring
Issue #6 The end of charging credits, Tax incentive breakdown, Gali from Hyperchange...
Hey Shakers, another issue here and another great week with more feedback from you all! In this issue we will be looking at how you can save $$ when making an EV investment, whether it's a new car or a charging system. Oh... And Look for the new section added towards the bottom of this issue, this one is full again!
The End of EV Charging Credits in 2020
Thinking about installing an EV charger at your home or your office? Don't wait till the tax incentive expires December 31'st 2020. Here's why you should do it now:
Tax credits apply to EV chargers, hardware, and installation costs.
You can receive a 30% tax credit of up to $1000 for residential or $30,000 for commercial uses by filing an IRS 8911 form.
You can also claim credit for any charging equipment installed after January 1st 2017.
Although it is a little late in the year it may be a good time to jump on this opportunity, the charging unit is least expensive with labor costs being the bigger part of the bill.
Choosing Your Charging Station
When considering a charging station there are 3 types to think about, a Level 1 EVSE which is a traditional 3 prong connector that plugs into your standard 120V (charges 2-5 miles per hour of charge). A Level 2 EVSE uses a 240V AC plug (charges 10-60 miles per hour of charge) but requires professional installation, both Level 1 and 2 are for residential use. The third option is for commercial charging, like the Tesla Super Charger which we consider a Level 3 EVSE charger. This type is optimized for fully charging a vehicle in as little as 30 minutes.
US EV Tax Incentives?
Looking at the pros and cons of buying a new EV versus a pre-owned model? A question often asked is "Isn't there a tax credit for buying an EV?" The simple answer is "yes", but with stipulations. First to receive credit, an EV purchased within tax credit qualifications must be filed under an IRS form 8936 with your tax return. How it works:
This federal incentive is $7500.00, but is only worth the complete value if your annual tax bill comes to a minimum of $7500.00. Let's say you owe $6000 in taxes, then your credit will only be $6000, the IRS will not cut you a check for the $1500 difference.
EV must be recognized by tax program (make sure you check the list before buying).
This tax credit can only be used on the purchase of NEW eligible EV's.
In the case where the car is on lease, the manufacturer receives the tax credit, not the consumer.
This credit phases out for manufacturers after they sell 200,000 qualifying EV's, tax credit is reduced by 50% for next 2 quarters, and reduced a second time to 25% for the subsequent 2 quarters where it finally expires.
Check out what cars qualify for this credit according to IRS section 30D
On The Tube 📺
This week I'm digging this personalized breakdown from Gali at Hyperchange on why he is investing in Tesla and choosing to hold his shares longterm.
What Caught my Attention
Gali, talks about how he got started investing in Tesla in 2012 and how he's witnessed exponential growth over the years.
One thing he speculates is that Tesla could 10X again within the next decade. We could be looking at a multi-trillion dollar company in a shorter time span than Apple or Amazon reached those points.
Gali asked Elon Musk at a 2018 shareholder meeting "How are we supposed to believe your targets?" He talks about how he lost some trust and faith in Tesla's execution and follows that with how Tesla was playing the Wall St game, overpromising, and underdelivering. He does an excellent job articulating their recent improvement in this area and why he continues to believe in Tesla's mission.
What I'm Reading This Week
Reddit's r/electricvehicles subreddit is always full of new stuff. This week I'm checking out how VW replaced Tesla as the best selling car in Norway. VW states that EV's will make up 90% of Norway's sales by 2021. I found the thread full of perspective and opinions from various EV enthusiasts.
Amazon unveils a new EV delivery van to be built by Rivian, they plan to have 10,000 on the road by 2022 and 100,000 by 2030. Check out the video and this well written article by transportation reporter Andrew Hawkins for The Verge.
William Li, founder of NIO (an electric car startup on the rise) has quite the story of his journey from primitive village to billionaire. One of my readers sent me a video documentary on this guy better known as the "Elon Musk of China" and found his story a real inspiration. Check out the video and this detailed article by Peter Smith found on The Tradeable.
👁 Eye on the Market
I believe we are on the cusp of the next market boom (like the dot com boom) but this time in the EV world.This new section will cover a weekly recap on EV share prices... why not have a weekly look at what's going on in the markets?
Here are a few companies I'm watching closely:
In the spreadsheet above I've included all numbers as of Friday last week. For most of these last week, it was a good week, most of these markets continue to climb and we saw a few take a small dip. In a later issue I will discuss why I'm choosing to invest in these opportunities.
I am currently studying these markets, observing trends, looking at technologies on the rise, and also keeping an eye auto manufacturer's suppliers. Staying keen on deals and agreements between suppliers and manufactures is important if I want to own shares in the whole symbiosis of this financial machine.
That's a wrap for this week Shakers! Thanks for reading this issue, if you found it valuable please share it with others. EV Shakeout's community is growing and it has been amazing to connect with each of you personally. Remember that you can reach me anytime by email at josh@localwebmaker.com or on Twitter @tech_jdc.