Why Munster thinks Tesla is the biggest beneficiary of the climate bill

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After months of wrangling and negotiation, the Senate finally authorized the Biden the Sunday Administration’s Inflation Reduction Act of 2022, and Tesla, Inc. TSLA could be its biggest beneficiary, according to a leading analyst.

What happened: Wolf Fund co-founder Gene Munster said on Sunday that the Elon Musk-led EV maker is the biggest beneficiary of the climate bill.

The electric vehicle tax credit proposals, which are part of the broader bill, call for keeping the upper cap on getting the benefit at $7,500, Munster noted. Since the credit is not capped, Tesla vehicles become eligible for the rebate again, he added.

See also: Bill Gates’ Thoughts on the Climate Bill

The bill also provides a 30% refund for those who do solar installations for the next 10 years, Munster noted. This contrasts with the currently applicable provision of a 26% redemption, which was due to drop to 22% in 2023, the fund manager said.

Munster estimates that the average Tesla solar installation costs $150,000, suggesting consumers should recoup $45,000.

He also noted that the payback period on a Tesla roof with the 30% credit will be around 15 to 20 years.

“It’s a long time, but they claim they will last 50 years,” he added.

price action: Tesla closed Friday’s session down 6.63% at $864.51, according to data from Benzinga Pro.

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