New energy vehicles (NEVs), as they are known collectively in China, recently surpassed 10 million for the first time. The nation’s methodology takes into account domestically produced fuel cell electric vehicles, plug-in hybrid electric vehicles, and fully electric vehicles, all of which qualify for government subsidies and there are currently 8.1 million of them on the road there. These subsidies, known as the dual-credit scheme, are determined based on the number of NEVs owned by the automaker as well as the average corporate fuel use.
If the corporation chose to exchange them, the credits, which would each be worth around $312 in 2021, might be either positive or negative, depending on where each automaker stood on the scale of transport sustainability. Naturally, the businesses that generate the most electric vehicles stand to benefit the most. Recently, BYD, which is supported by Warren Buffett, overtook Tesla as the largest EV manufacturer in the world.
Tesla supply chain issues and Shanghai Gigafactory production issues caused it to fall to second place.
BYD received the greatest government subsidies from the Chinese government last year, totalling the equivalent of US$516 million, while Tesla came in second with US$437 million in stolen tax dollars.
Tesla revealed in its most recent annual financial report that it has received US$1.5 billion in government credits for 2021, which is a sizable portion of its total US$5.2 billion in net profits at that time. Many of the subsidies came from foreign countries, and it appears that China’s dual-credit system is one of the major sources of income for Tesla in this regard.
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