2016 Tesla Model X 90d on 2040-cars

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VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

Tesla 'Model E' to likely get steel construction, sane price tag

Tesla may have made major inroads with its Model S, and it's poised to enter new territory when it finally starts selling its Model X, an iconoclastic gullwing crossover. Neither of those may be as important as the model thereafter, which is expected to be its make-or-break sedan. It won't be called the Model E (thanks a lot, Ford), but the BMW 3 Series-challenging EV will be the litmus test that will determine if Tesla's EV future is palatable to the masses.
Part of that means proving that Tesla can be an affordable alternative to conventional internal-combustion-powered vehicles. According to the company's VP of engineering, Chris Porritt, the new sedan will do just that, thanks in no small part to the company's forthcoming gigafactory battery operations. But beyond that project, there are other things about this new EV that will make it a more alluring option to the average consumer.
Porritt mentioned "appropriate materials," to the UK's Autocar, which is likely another way of saying it's ditching the aluminum-intensive architecture of its big brother.

New Jersey votes against Tesla, stores may close April 1

Doesn't New Jersey Gov. Chris Christie have enough people mad at him already? Apparently not, since more than a few folks who like Tesla Motors are ready to get riled up. The governor is already embattled via his office's alleged role in a scandal involving politically-motivated lane shut-downs to the George Washington Bridge. And with him now deciding to let the state's motor-vehicle commission rule on allowing for Tesla to own its dealers, Tesla has likely lost that battle and may have to shutter its two New Jersey factory-owned stores by April 1, Automotive News says. Earlier this week, Tesla accused the governor on going back on his word after the company said it believed that the ruling would go before state legislature. Of course, the governor's office disagreed with that characterization. Kevin Roberts, a spokesman for Gov. Christie, sent a statement to AutoblogGreen that said: Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation and Tesla has been aware of this position since the beginning. Tesla strenuously disagrees with that characterization, and Diarmuid O'Connell, Tesla's vice president of business development, told Bloomberg that, "any suggestion that Tesla was told 'since the beginning' about any problem with its ability to be licensed there is false." Representatives for New Jersey auto dealers say the ruling merely upholds current regulations and forces everyone to operate under the same mandate. Tesla first received approval to operate in New Jersey in the fall of 2012. Tesla has won court decisions regarding dealer allowances in Massachusetts and New York, though most notably lost one in Texas (the company also can't sell cars direct to customers in Arizona). In the past, Tesla CEO Elon Musk has said he'd take the matter to the federal government, and we wouldn't be surprised to hear that sort of rallying cry come up again soon.