Consequences of the UAW strike and EV tax credits on SUI can't blame Lawisfun for posting what is basically a meaningless headline to support his confirmation bias because that is what the media does. It is much easier to grab a punchy headline than to dig into a topic to find out the facts. MSM (Main Stream Media) is notorious for tossing out sensational headlines as click bait without doing the background work. The practice is destroying the industry. Elon wrote recently that he has basically stopped following main stream media because it reports what they read on X yesterday. That is a self seriving comment from Elon but it is not far from reality.
When consumers finally realize that EV's cost less to buy and cost a fraction to operate than ICE vehicles, the transition to EV's will accelerate along the steep verticle section of the S curve. The fact that EV's are much safer and more fun to drive will also enter the buying equation, but the math with be the dominant factor in the selection process for the majority of buyers.
The American EV credit comes in two parts consisting of where the battery is assembled and where the minerals in the battery are extracted or assembled. In addition, the requirements to qualify get tougher each year as the program ramps over time.
"The tax credit is broken down into two parts, each worth $3,750: a battery requirement and a critical minerals requirement. To be eligible for the battery requirement in 2023, 50% of the vehicle’s battery must be assembled or manufactured within North America. Next year, that percentage jumps to 60%. To meet the critical minerals requirement in 2023, 40% of the critical minerals in a car’s battery must be extracted from or processed within the U.S., or from a country with whom the U.S. has a free trade agreement. By 2024, that percentage will be 50%. Additionally, in 2024, vehicles can’t source battery parts from a foreign country of concern (e.g., China), and in 2025, EVs can’t contain any critical minerals sourced from China or other countries of concern, if they want to keep their credits."
The Biden adminstration "Biden" has previously modified the EV tax credit guidelines and deadlines a number of times to facilitate the auto makers. In addition, "Biden" recently loaned Ford $9.2 billion to construct 3 battery factories which Ford of course is leveraging in its negotiations with the UAW. Does anyone expect the Feds to pull the rug out from under Ford by eliminating useful EV tax credits after making the loan?
What has my attention these days is the UAW strike. If the Big 3 automakers capitulate to the UAW demands, that will only hasten the demise of ICE vehicle as the cost increases will make ICE even less compelling and compeitive. I expect the Big 3 to give in before the union gives in but IF the automakers continue to keep the EV and battery plants out of the settlement, I can only assume that Ford intends to shutter its Ford Blue (ICE car) division sooner than later.
What does the UAW strike and the US EV tax credits have to do with Suncor? Everything.