Low Cost EVs on the Horizon?

The Chinese are still subsidizing their production of EVs.

An estimated $29B USD has been provided to sponsor growth and development in EVs since 2009 with no end in sight. (other countries are doing so, also)

The Lesson From BYD’s EV Takeover: Don’t Discount China | TIME

Life after subsidies for China’s EVs (chinadialogue.net)

From industries I work directly in (which directly supply EVs), I will reinforce that subsidy ending in the last 2 years or continuing at the current time will impact all models sold today and for the lifecycle for the next 1-3 generations of vehicles.

These subsidies in China are offset by tariffs on US import, anti-dumping regulations

Together, this effect of subsidy, tariff and market dynamics is in a constant state of flux. It is safe to say that China is the most aggressive at subsidizing products and technology vs any other nation (by up to a factor of more than 10x!) based on direct data that I cannot share here (apologies).

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Chinese subsidy. We must remember that in the pastTesla was a beneficiary of the subsidy.

Tesla may be operating a wholly-owned factory in China, but the company became the most heavily subsidized electric vehicle maker in the country in 2020 nonetheless. Last year, Tesla China received CNY 2.1 billion ($325 million) in government subsidies for new energy vehicles, the highest amount granted to a carmaker in the country.

China has opened a WTO action protest US subsidy to non-China EV makers.

China has initiated dispute settlement proceedings against the United States at the World Trade Organization to safeguard its interests in the electric vehicle industry, the Chinese mission said on Tuesday and the WTO confirmed.

China said it was contesting “discriminatory subsidies” under the U.S. Inflation Reduction Act (IRA) that it said resulted in the exclusion of goods from China and other WTO countries.

“Under the disguise of responding to climate change, reducing carbon emission and protecting environment, (these subsidies) are in fact contingent upon the purchase and use of goods from the United States, or imported from certain particular regions,” the Chinese mission said.

And so the US-China economic war continues.