Tesla Inc TSLA shares are trading higher by 4.30% to $196.36 Friday morning following an increase in China sales. The Treasury also announced it is raising the price cap for EV tax credits to $80,000.
What Happened With China Sales?
Tesla delivered 66,051 cars in January, preliminary data released by the China Passenger Car Association showed. The tally, which includes both exports and domestic sales, marked a 10.4% year-over-year increase from the 59,845 vehicles the company sold in January of 2022.
On a month-over-month basis, Tesla’s sales rose 18.38% to 55,796 cars it sold in China in December...Read More
Treasury Price Cap For EV Tax Credits
The U.S. Treasury Department updated the vehicle classification standard used to determine the applicable Manufacturer Suggested Retail Price (MSRP) limitation for clean vehicle tax credits available under the Inflation Reduction Act.
On December 29, 2022, the Treasury says it published a notice of intent to propose regulations containing information for consumers and manufacturers in advance of the January 1, 2023, effective date of changes to the clean vehicle credit under section 30D of the tax code.
The notice of intent provided an expected vehicle classification standard, based on existing EPA CAFE standards, for the purpose of determining whether the vehicle is a sedan, SUV, or other type of vehicle and subject to the $55,000 or $80,000 MSRP limitation.
The Treasury says this change will allow crossover vehicles that share similar features to be treated consistently.
The Treasury also says all vehicles that were eligible under the MSRP limitations prior to today's notice remain eligible under the updated standard.
According to data from Benzinga Pro, TSLA has a 52-week high of $384.29 and a 52-week low of $101.81.
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