Tesla stock takes a hit as GOP unveils tax plan that eliminates electric car subsidy (LATimes)
By Russ Mitchell
The shift toward electric vehicles took a big hit Thursday when Republicans officially proposed wiping out the $7,500 federal tax credit for buyers of electric cars as part of a sweeping tax overhaul.
Tesla would be the hardest-hit company should the plan pass Congress and be signed into law by President Trump. Although Chief Executive Elon Musk has said the company’s business plan does not depend on such subsidies, the credit would be cut beginning in 2018, just when Tesla plans to scale up production of its new Model 3 sedan, with a current price of about $45,000 before subsidies.
Tesla stock slid 6.8% on Thursday to $299.26.
The automaker had no immediate comment.
It isn’t the first time Tesla’s clean-energy focus has conflicted with the Republican agenda. Musk had served on a business advisory committee assembled by Trump, but quit over Trump’s opposition to the Paris climate change accord.
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more: http://www.latimes.com/business/la-fi-hy-tesla-tax-subsidy-20171102-story.html
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