U.S. Senate Democrat Manchin opposes $4,500 EV union tax credit

U.S. Senate Democrat Manchin opposes $4,500 EV union tax credit

Toyota Motor (NYSE:TM) Corp is trading up 2.39% at 2078.5       

Democratic Senator Joe Manchin said on Thursday he opposes a proposal in President Joe Biden’s $1.75 trillion social spending and climate legislation that would give union-made U.S. electric vehicles a $4,500 tax incentive.

Manchin’s comments came at an event where Toyota Motor (NYSE:TM) Corp said it would invest $240 million in its West Virginia engine and transmission plant to build hybrid transaxles. Manchin represents the state.

His opposition was first reported by Automotive News, which quoted him as saying that the union-made vehicle incentive was “wrong” and “not American.” He told the publication: “We shouldn’t use everyone’s tax dollars to pick winners and losers.”

Toyota has been heavily lobbying against the proposed $4,500 electric vehicle tax credit for union-made vehicles.

The social spending and climate bill being considered in Congress includes up to $12,500 in tax credits for U.S.-made EVs, including the $4,500 union provision. The bill is a key pillar of Biden’s domestic agenda.

Vehicles would have to be made in the United States starting in 2027 to qualify for any of the $12,500 credit.

On technical fronts Toyota Motor (NYSE:TM) Corp RSI stood at 67.13 and currently stock is trading above all MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : Toyota Motor (NYSE:TM) Corp – BUY: 2077.99, TARGET: 2082.00, STOP LOSS : 2075.50

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