To The Moon

With a revamped $7,500 electric vehicle tax credit taking effect 1 Jan 2023, the 🇺🇸 Treasury Department said on 19/12 (Mon), it will delay until March its release of proposed guidance on the required sourcing of EV batteries. It remained unclear whether Treasury will address other questions by 31/12 including if it will allow automakers to take advantage of commercial clean vehicle credits by leasing vehicles to consumers. With this uncertainty looming + recession-fears pushing the Nasdaq to close lower by 1.49% & the S&P 500 by 0.9%, all 🔋🚘 fell amid the recession-fears sell-off. TSLA was the least hit, falling just by 0.24% amid positive polling 📰 that he might step down as 🐦Twitter’s head. XPEV was hit mostly badly, slipping 6.21%, followed by NIO declining 4.66% $Tesla Motors(TSLA)$ Bearish$NIO Inc.(NIO)$ Bearish$XPeng Inc.(XPEV)$ Bearish$NASDAQ(.IXIC)$ Bearish$S&P 500(.SPX)$ Bearish

The $430 billion Inflation Reduction Act (IRA) imposes Complex Restrictions on Tax Credits based on sourcing of battery components & critical minerals🫠 Signed by Biden in Aug, the law limits 🔋🚘 tax credits to vehicles assembled in North America & was partly aimed at weaning the 🇺🇸 off batteries from 🇨🇳, which now make up 70% of global supply.

➡️ Some requirements for tax credits take immediate effect on 1 Jan including new caps on income of buyers & retail prices for qualifying vehicles.

➡️ The Treasury guidance being delayed until sometime in March details requirements that make $3,750 contingent on at least 40% of the value of the critical minerals in the battery having been extracted or processed in the 🇺🇸 or a country with a 🇺🇸 free-trade agreement, or recycled in North America.

➡️ The other $3,750 requires that at least 50% of battery components were manufactured or assembled in North America.

‼️Both percentages rise annually.

🤔💭My Thoughts:

⭐️ Although I’m bullish about 🔋🚘 in the mid to long term, the recession-fears are pushing stock prices lower ➡️ This is good for investors looking to buy the dip like me as the Oct 🐂 rally has pushed their prices above my liking🤭

⭐️ If deliveries for 🔋🚘 fall in Dec, I expect further downward pressure on stock prices📉📉 & will monitor deliveries in Jan 2023 before deciding when to add new positions.

Fellow 🐯🐯🐯 who are interested in the EV space like me, do keep a lookout👀 for Dec & Jan deliveries updates. Please help to click on the “Like” & “Share/Repost” buttons at the bottom right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰

As usual-🤔💭 Consider POV & Actions of investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

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