How Did Tesla Become a Trillion-Dollar Company?
The facts mentioned in the article were carefully collected and waited for their moment to be packed together and amazed with their preciosity.
After Hertz decided to buy 100 thousand Tesla cars for more than $4 billion, Tesla’s capitalization has grown by almost $200 billion. The irrationality of the market hasn’t been surprising for a long time. Still, it was very curious to understand why and for what chichi Hertz, who had recently got out of the bankruptcy procedure, was suddenly going to buy such expensive cars, even though Musk didn’t give any discounts for wholesale purchase. The answer is simple — for taxpayers’ money.
It turns out that the White House recently passed the Budget Reconciliation Bill, which will cost US citizens $1.75 trillion. And there are plenty of clean energy incentives, particularly a 30% tax deduction for qualified commercial electric vehicles. That is, Hertz, having bought Tesla, will receive $1.26 billion in tax cashback. By the way, incentives are also due for installing charging stations, and Hertz announced plans to build thousands of such stations.
It is essential to mention that tax breaks are also available for citizens, and the compensation limit was increased from $7,500 to $12,500. For example, if you have to pay $15,000 in income tax by the end of the year, you can buy a Tesla Model S and bring only $2,500 to the tax office. Consider it a nice bonus from Tesla or a good discount on your electric car purchase. A perfect incentive to leave the ICE, isn’t it?
With all this, Tesla also receives bonuses in ZEV credits and other benefits for its products. Thus, the US government is manually rebuilding the automotive market. But do you know what seemed the most interesting? The text of the new budget legislation was published on October 28, and Hertz announced the purchase of Tesla on October 25, although the decision on the deal, as you all understand, was made much earlier.
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