Tesla is partially built into government regulations and incentives, from the Department of Energy’s loan guarantee in 2009 to the regulatory unit that sells to other automakers that have driven a third of their $32 billion profit since 2012.
Currently, the company’s energy business – a rare, bright spot amid growing demand for EVs – is under assault.
House Republicans last week passed a settlement bill that revoked many of the inflation reduction laws, including tax credits for residential solar and clean energy projects. The bill is currently in front of the Senate.
If the Senate passes it on with their repeal, it could have a devastating impact on Tesla’s energy sector, which would generate revenue of $2.7 billion in the first quarter, up 67% year-on-year.
Tesla lobbyed lawmakers at X, claiming that CEO Elon Musk has finished his time with the government. So Tesla Energy appealed to Senate Republicans.
“A sudden end to the energy tax credit threatens the independence of America’s energy and the reliability of the grid. Posted on X, Tesla urges the Senate to enact wise 25D and 48E laws.
Today, homeowners are eligible for a 30% tax credit for new solar power generation, but clean energy developers can generally argue the same thing. These provisions are currently scheduled for sunset at the end of 2032, but House Republicans hope to request a project that would close the credit four years ago and begin construction within 60 days of the bill’s passage.
Reducing these parts of the law could potentially risk rolling out 60 gigawatts of capacity each year “to support AI and domestic manufacturing support,” Tesla said.
The Trump administration puts “energy domination” as a key priority and slows down the deployment of renewable and clean energy, putting that goal in danger.
Last year, 93% of all new generation capabilities in the US were clean energy, mostly solar and grid-scale storage. In the first quarter of this year, renewables added 7.4 gigawatts. The queues of new natural gas turbines have grown for years, but solar farms can generally be completed in 18 months.
Like many residential solar installers, Tesla’s energy business relies heavily on tax incentives. American solar power has been assaulted as Republicans prioritize repealing the Inflation Reduction Act. This year, Enphase has dropped by 45%, Sunrun has lost a quarter of its stock price, and First Solar is down by 15%.
Source link
