Benzinga | Sep 14, 2021 04:17PM EDT

Why Tesla, Toyota, Honda Are Against EV Tax Incentive Bill?

* Toyota Motor Corp (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC) urged Congress to scrap a bill that would expand tax incentives for union-made electric vehicles built in the U.S., TechCrunch reports.

* The bill would expand the federal tax incentives from $7,500 to $12,500 for union and domestically manufactured cars. Vehicles with batteries manufactured in the U.S. would be eligible for an additional $500.

* The bill embraced General Motors Co (NYSE:GM), Ford Motor Co (NYSE:F), and Stellantis NV (NYSE:STLA) with workforces represented by the United Auto Workers union and excluded Toyota, Honda, and Tesla Inc (NASDAQ:TSLA) from the expanded credit.

* Toyota alleged the bill of discriminating against American autoworkers based on their choice not to unionize and favored the rich.

* Tesla CEO Elon Musk alleged that Ford/UAW lobbyists charted the bill and questioned its relevance to American taxpayers.

* Price Action: F shares closed lower by 0.96% at $12.86 on Tuesday.