Last April 10, 2019, a bipartisan group of lawmakers in the United States recently planned to introduce a new bill. The new act could potentially affect and expand the electric car tax credits in the country, covering around 400,000 automobiles per manufacturing agency.
Following this news, Reuters reports that Tesla Inc. and General Motors Co. would improve stock ratings.
About the Bill
Reuters reports that the proposal is sponsored by bipartisan senators. These include the Democratic party senators Debbie Stabenow and Gary Peters, the Democrative Representative Dan Kildee, and Republican senators Lamar Alexander and Susan Collins.
According to Reuters, the proposed bill could possibly improve car sales as well as boost shares from the affected companies. In hindsight, this proposal would help reward automakers such as Tesla and General Motors for having shelled billions of dollars to help meet the global emissions requirements.
The bill is called the “Driving America Forward Act.” Under this, automakers would be given the chance to get $7,000 in tax credits for every 400,000 eligible cars. Bear in mind that this big a number is an additional amount to the already existing 200,000 vehicles which are already eligible for $7,500 in tax credits.
In addition, the bill also plans to cover hydrogen fuel cell credit by 2028. The total cost for the act is expected to amount to $11.4 billion, reports Reuters.
Following the report from Reuters, stocks from Tesla rose by 1.4 percent. Should the proposal pass, the automaker, who already specializes in electric vehicles, could expect a demand not only in its vehicle sales but also in its company investors.
With shares being down by 18 percent in 2019, Tesla is expecting that through this proposal, positive returns and outcomes would help demands look up for the company.