Why Tesla, GM and Nissan are working together

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The Chevrolet Bolt Photo credit: REUTERS

WASHINGTON – Tesla Inc. and other car manufacturers who want to lose access to a lucrative tax benefit for electric vehicles are working together on a new lobby to extend the federal incentive.

The EV Drive Coalition, which also includes General Motors and Nissan Motor Co. will launch Tuesday officially with the aim to induce Congress to expand the consumer tax credit of $ 7,500 per vehicle.

The incentive is attributed to helping realize the burgeoning electric car market, but it is starting to decline once a manufacturer sells 200,000 of the vehicles. Tesla reached that limit in July and GM is expected to reach that limit later this year or early next year, said Salim Morsy, an analyst at Bloomberg New Energy Finance. Nissan has sold approximately 125,000 electric vehicles as of September of this year, Morsy said in an e-mail.

Legislation that adjusts the ceiling has been introduced into both congressional chambers and could be included in an expected pressure to extend expiring tax credits during the Congress's lame underside session that starts Tuesday.

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The coalition, which also includes the Arlington, Va., Environmental Group Center for Climate and Energy Solutions and the conservative group the Christian Coalition as members, says that the lifting of the cap would support employment and would benefit the environment.

"A federal tax rebate to make electric vehicles more affordable for all consumers is an integral part of achieving a zero-emission future and establishing the US as a leader in electrification," said Dan Turton, vice president of GM public order. , in a statement. "We believe that the tax credit should be adjusted so that all customers continue to enjoy the full benefits in the future."