The Download: RIP EV Tax Credits, and OpenAI's New Valuation
Yesterday marked the end of federal electric vehicle (EV) tax credits in the US, a move that has left many wondering what's next for the country's EV market. The credits, which provided up to $7,500 toward the purchase of a new EV, had been a major force in reducing the upfront costs of these vehicles and driving demand.
The demise of the tax credits comes at a time when battery-electric vehicles still make up only a small percentage of new vehicle sales in the US. According to data from the US Department of Energy, EVs accounted for just 2.5% of all new car sales in 2022. Despite this, many experts believe that the end of the tax credits will have a significant impact on the industry.
"We're concerned about the loss of these incentives," said John Boesel, CEO of the Los Angeles Cleantech Incubator. "They've been a crucial factor in driving adoption and making EVs more affordable for consumers."
The tax credits were expanded and extended as part of the 2022 Inflation Reduction Act, which aimed to reduce greenhouse gas emissions and promote clean energy technologies. However, with their expiration, many automakers are now facing uncertainty about future demand.
"This is a setback for the industry," said Michael Dunne, CEO of ZoZo Motors. "We need these incentives to continue driving growth and adoption."
In other news, OpenAI has announced that it has raised an additional $10 billion in funding, valuing the company at over $90 billion. The new valuation makes OpenAI one of the most valuable AI startups in the world.
The funding round was led by investors including Microsoft, Amazon, and Google. The investment will be used to further develop OpenAI's language model technology and expand its product offerings.
"We're excited about the potential for our technology to drive innovation and growth," said Sam Altman, CEO of OpenAI. "This investment will enable us to accelerate our development and bring our products to market faster."
The end of EV tax credits in the US marks a significant shift in the country's clean energy landscape. As the industry adapts to this new reality, many are looking for alternative incentives and policies to drive growth.
In related news, Ford has announced plans to launch an affordable electric pickup truck, which could be just what the US EV market needs to get back on track.
Background:
The federal EV tax credits were introduced in 2005 as part of the Energy Policy Act. They were expanded and extended in 2022 as part of the Inflation Reduction Act, which aimed to reduce greenhouse gas emissions and promote clean energy technologies.
Additional Perspectives:
Some experts believe that the end of EV tax credits will lead to a decline in demand for EVs, while others argue that the industry is mature enough to stand on its own without government incentives.
"We're at an inflection point," said Boesel. "The industry needs to adapt and find new ways to drive growth."
Current Status:
With the expiration of the tax credits, many automakers are now facing uncertainty about future demand. However, some experts believe that the industry will continue to grow, driven by increasing consumer interest in clean energy technologies.
As for OpenAI, the company's new valuation marks a significant milestone in its development as a leading AI startup.
Next Developments:
The US EV market is expected to continue growing, despite the end of tax credits. Many automakers are now exploring alternative incentives and policies to drive growth, including state-level tax credits and rebates.
OpenAI will continue to develop its language model technology and expand its product offerings, with a focus on driving innovation and growth in the AI industry.
*Reporting by Technologyreview.*
