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EV Canada Newsletter: Canada Post goes electric, Tesla factory in Canada? Chevy Blazer SS, & more!

Weekly Recap Issue #22 - Tuesday, June 14th, 2022

Hello, thank you for joining me for this weeks EV Canada Newsletter. Next week I will be away, so it won’t be your traditional email that you have learned to love popping into your inbox on Tuesday - so keep an eye out for it!

Let’s dive in:

Canada

Let’s start with a quick video of the assembly of Tesla’s 4680 battery cell.

The Government of Canada’s postal service is looking to go electric.

Canada Post has shared its goals regarding how it will reach net-zero emissions. Canada Post has committed to purchasing approximately 14,000 fully-electric vehicles by 2040, and reaching net-zero emissions by 2050, according to a recent press release.

In the press release, Canada Post also committed to $1 billion in investments to cut emissions and electrify its fleet. They plan to have 50% electrification of their fleet by 2030.

In a statement, Canada Post President and CEO Doug Ettinger said, “We have a responsibility to Canadians, and to their children and grandchildren, to help lead the way to a more sustainable future.”

Ettinger continued, “Canada Post has one of the biggest fleets in the country, over 68,000 employees, a significant real estate portfolio, and an extensive supply chain. The challenge ahead is great, and we know the greening of our transportation is critical.”

The Canada Post also unveiled a net-zero parcel sorting facility in May, called the Albert Jackson Processing Centre.

While Canada’s postal service commits to go all-electric with the environment top of mind, the United States Postal Service recently moved forward with a $6 billion gas truck order, despite a plea from the Biden administration to reconsider - which seems completely irresponsible in my opinion. There are too many arguments to list as reasons to adopt electric mail vehicles - so not sure what is going on with the USPS in this case.

Tesla is considering sites for new factory, potential locations include Canada, Mexico and the US.

As Tesla is looking at future sites for another manufacturing plant Elon Musk is considering all of North America as potential opportunities.

Tesla CEO Elon Musk recently held a company-wide meeting with employees. Electrek obtained a recording of the meeting, which included a Q&A with Tesla workers. During the Q&A,Musk was asked where Tesla’s next factory is going to be located.

Musk said that Tesla hasn’t decided yet, but he did specify that it might not be in the US: “We are looking at sites, but we are considering some sites options more broadly in North America, so including Canada and Mexico, and the US as well.”

Musk seemed to indicate that Tesla is actively looking at sites, but he stressed that the main priority in North America right now is to ramp up Gigafactory Texas to volume production.

We are expecting an announcement for Tesla’s next North American factory by the end of 2022. If a location in Canada is selected, it would add jobs and hopefully reduce wait times for Canadians to receive their Tesla.

If you like this rundown/summary of what’s going on with EVs in Canada please share it with someone (or people) that you think might enjoy it as well!

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Also, if you would like to contribute, have any feedback or comments please email me:

EV Around the World 🌏

Chevrolet Blazer SS: First Look.

GM CEO Mary Barra has shared a sneak peak at the Chevy Blazer EV that will launch in Spring 2023 as a 2024 model. More details on the Chey Blazer are expected to be shared on July 18, 2022.

The Chevy Blazer was first announced in October 2021 but this is the first official photo of the all-electric SUV.

The Chevy Blazer is added to GM’s EV lineup along with the Chevy Equinox (details coming at a future date), Bolt EV and EUV, Hummer EV and the luxury Cadillac Lyriq. For EV buyers looking for an alternative to a gas-powered SUV, the new Chevy Blazer EV may fit the bill.

The Blazer EV will be built on GM's Ultium EV platform, and the SS version is expected to have an approximate range of 500 kms with decent power with an all-wheel drive dual motor arrangement.

GM, Ford and Toyota would like remove cap on EV tax credit.

With rising inflation in the U.S. and Canada (and the world) some of the world's biggest automakers are dealing with rising costs of raw materials, especially for nickel and cobalt which are used in electric vehicle batteries. Automakers have invested billions into electrifying their models and are asking congress to lift the 200,000 vehicle cap on the federal EV tax credit of $7,500 to help boost sales of new fully-electric models.

As reported by Reuters, Ford Motor Co, General Motors, Stellantis and Toyota Motor Corp urged Congress on to lift a cap on the $7,500 electric vehicle tax credit, citing higher vehicle production costs of zero emissions electric vehicles.

These companies have collectively pledged to invest over $170 billion through 2030 to increase electric vehicle development, production and sale. They are requesting that the tax credit cap be lifted to help boost sales as part of President Biden's goal of having 50% of all new care sales be electric by 2030.

The current EV $7,500 credit on a fully-electric vehicle tax credit is no longer applicable after a manufacturer sells 200,000 qualifying vehicles. As an EV-only automaker, Tesla reached sales of 200,000 qualifying vehicles in Dec 2019. GM reached the 200,000 vehicle cap in the final quarter of 2018.

As a result, Both GM and Tesla are no longer eligible for the consumer tax credits, while Ford and Toyota still are. However Toyota has indicated that they expect its credits would expire by the end of 2022 after it hits the cap. 

While Ford sold nearly 160,000 electric vehicles through the end of 2021 with brisk sales of the fully-electric F-150 Lightning and Mustang Mach E. The automaker could hit the cap by the end of 2022 as well.

Senator Joe Manchin, a key Democrat, questioned the need to extend electric vehicle tax credits at all as demand increases for EVs.

"There's a waiting list for EVs right now with the fuel price at $4. But they still want us to throw $5,000 or $7,000 or $12,000 in credit to buy electric vehicles," said Manchin. "It makes no sense to me whatsoever."

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