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Tag: Electric vehicles

  • GM to take a $1.6 billion hit as tax incentives for EVs are cut and emission rules ease

    General Motors will record a negative impact of $1.6 billon in its next quarter after tax incentives for electric vehicles were slashed by the U.S. and rules governing emissions are relaxed.

    Shares dipped 3% before the opening bell Tuesday.

    The EV tax credit ended last month. The clean vehicle tax credit was worth $7,500 for new EVs and up to $4,000 for used ones.

    General Motors, which had led the way among U.S. automakers with plans to convert production to an electric fleet of vehicles, said in a regulatory filing on Tuesday that it will have to book charges include non-cash impairment and other charges of $1.2 billion due to EV capacity adjustments. There’s also $400 million in charges mostly related to contract cancellation fees and commercial settlements associated with EV-related investments.

    GM warned that it may take additional hits as it adjusts production, with non-cash charges potentially impacting operations and cash flow in the future.

    The company said that its EV capacity realignment doesn’t impact its retail portfolio of Chevrolet, GMC and Cadillac EVs currently in production, and that it expects those models to remain available to consumers.

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  • New Rules Could Force Tesla to Redesign Its Door Handles. That’s Harder Than It Sounds

    The issues could cascade beyond the design. The auto manufacturing industry operates on strict production schedules. Though it builds in time to validate and test whatever new features come in each new model, the sudden intro of a design change late in the process could throw off the delicate timetable.

    In this decade, China’s auto industry has shocked the world by racing ahead of legacy automakers, quickly developing, with government support, ever newer, cheaper, and more technologically advanced vehicles on shorter production schedules. The country is the world’s largest automotive market; it’s expected to manufacture a full third of the world’s cars by 2030. Still, quickly complying with new design regulations won’t be easy for domestic Chinese automakers either, says Broglin-Peterson. “Mechncial release requires a mechanical assembly,” she says. “It’s not just, you write some code.”

    Automaker’s door handle trouble likely won’t end in China. The new rules could lead to cascading responses from other global regulators. It’s a now-familiar pattern: China, once a place with lax protections, has forged ahead of the rest of the world in setting guidelines for electric vehicle battery safety and recycling, and autonomous vehicle tech. “This is a classic example of China setting the guardrails early: protecting consumers while quietly shaping global design standards,” Bill Russo, the CEO of Automobility, a Shanghai-based advisory firm, wrote in an email.

    A Handle on Design

    For many years, says Raphael Zammit, the chair of the transportation design department at the College for Creative Studies in Detroit, flush electronic door handles were the stuff of futuristic concept cars. “The fact that Elon Musk and Tesla put it into production was, frankly, pretty amazing,” he says. Their rise was linked with the increasing popularity of electric vehicles; tucking door handles into the doors of cars was meant to reduce their drag coefficient, leading to increased battery efficiency. Or so the theory went: Back-of-the-envelope math suggests the tweak maybe adds a mile of range. Maybe. Either way, the handles became a “demarcation of luxury,” Zammit says.

    Indeed, electronic door handles can be found on many luxury vehicles, including some made by Volkswagen, General Motors, Ford, and Mercedes-Benz. Jake Fisher, the senior director of the Consumer Reports’ Auto Test Center, tested several of those vehicles’ electronic handles. While all had emergency mechanical releases, as the Chinese regulations mandate, some were in places that could be difficult to find in an emergency—on the floor, in shadow, or, as in the rear seats of the 2021 Model Y under investigation by NHTSA, under a slot at the bottom of the rear door pocket. The best emergency mechanical releases, Consumer Reports found, were those that simply needed to be pulled a bit harder than usual to open, an intuitive reaction in an emergency.

    Aarian Marshall

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  • Ferrari’s First EV Arrives, But Its Electric Drive Slows Down

    A view of the production line inside the Ferrari factory in Maranello, Italy, on Oct. 9, 2025. TAIMAZ SZIRNIKS/AFP via Getty Image

    Yesterday (Oct. 8) in Maranello, Italy, luxury automaker Ferrari lifted the hood on its first all-electric vehicle, the Elettrica, after five years in development—while simultaneously halving its electric ambitions. The new car marks Ferrari’s long-awaited entry into the EV market, but also underscores the company’s reluctance to fully embrace an electric future at a time when the EV boom has lost some of its early luster.

    The Elettrica, in development since 2020, is expected to officially launch in October 2026 with a price tag estimated to exceed $540,000. Ferrari revealed only the powertrain, confirming that the Elettrica will feature a quad-motor setup—one motor per wheel—powered by a 122 kWh battery pack. Built on an 800-volt architecture for faster charging, the vehicle will reportedly reach a top speed of 193 mph, deliver up to 1,000 horsepower, and achieve about 330 miles of range under the European WLTP cycle.

    The new all-electric supercar will be built on a platform developed in-house and produced at Ferrari’s “e-building” in Maranello, where the company is headquartered. The facility will manufacture electric motors, battery packs and inverters for Ferrari’s future EVs.

    Though those plans are now less certain. Soon after the Elettrica’s debut, Ferrari released quarterly earnings with disappointing guidance that sent its stock tumbling, marking what could become its worst trading day since listing on the Milan stock exchange in 2016.

    Despite raising its long-term revenue target to around €9 billion ($10.4 billion) by 2030, Ferrari said only 20 percent of its lineup will be fully electric by then—down from its previous goal of 40 percent. Hybrids are expected to make up another 40 percent, with the remaining 40 percent continuing to use internal combustion engines. The company added that it does not plan to release a second EV until at least 2028, citing weak demand for high-performance electric cars.

    While Ferrari framed the scaled-back targets as a response to customer preferences, broader trends tell a different story. Global EV demand has cooled, even as 2025 is shaping up to be one of the strongest years for U.S. EV sales, boosted in part by now-expired federal tax incentives.

    Ferrari’s late entry into the EV race isn’t necessarily a problem, according to Stephanie Brinley, associate director of AutoIntelligence at S&P Global. “The transition to an EV-dominant market is a long-term process,” Brinley told Observer via email. “It is about being able to come to market with a compelling product at the right time. Finding that sweet spot has always been a product challenge. The twists and turns of electrification and EV adoption have only complicated the process of finding that position.”

    For Ferrari, she added, the key is staying true to the brand’s DNA. “Ferrari buyers will want a Ferrari first, an EV second,” Brinley said. “For Ferrari buyers, it’s not primary transportation. If they are interested in EVs, they can or will also have EVs in the stable. That can work for or against Ferrari’s EV ambitions.”

    Ferrari isn’t alone in pulling back. Other luxury automakers—including Volvo, Mercedes, Porsche and Bentley—have also slowed their electrification plans amid softer demand, tariffs, and global uncertainty. All-electric brands like Tesla, which just announced cheaper Model Y and Model 3 versions, and Lucid have cut prices to move inventory. While Ferrari buyers aren’t motivated by tax credits or savings, they do value exclusivity—and the brand’s identity has long been tied to the sound and spirit of its internal combustion engines.

    As Brinley noted, “Consumer demand has not kept up with the demands of regulatory change, but it has not vanished and will continue to grow. Timing entry and ensuring profitability are difficult.”

    The Elettrica’s success will likely depend less on its range or price than on whether it can deliver the emotional rush Ferrari owners expect. If the car can replicate the visceral thrill of a Ferrari through software, vibration and sheer performance, it could redefine what it means to be a supercar maker. If not, the company risks alienating its wealthy loyalists—customers who prize Ferrari’s sound, speed and unmistakable signal of status as much as its engineering prowess.

    Ferrari’s First EV Arrives, But Its Electric Drive Slows Down

    Abigail Bassett

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  • Ferrari reveals features of first fully electric vehicle

    MILAN — MILAN (AP) — Italian luxury sports carmaker Ferrari raised its 2025 guidance on Thursday, despite global 15% tariffs on foreign car imports to the United States, as the company unveiled the new powertrain and chassis of its first fully electric production vehicle.

    Ferrari CEO Benedetto Vigna declined to give target production numbers or a price for the Ferrari Elettrica, which will be delivered beginning late next year, with the design to be revealed in the spring.

    Under the carmaker’s new five-year plan, 40% of the product lineup will be the brand’s core internal combustion engines, 40% will be hybrid and 20% will be electric by 2030, with an average of four new launches a year in the period. The new business plan calls for more models with lower volumes of each.

    The fully electric vehicle Ferrari Elettrica represents a new segment that Vigna said would bring new buyers to Ferrari. It builds on 15 years of electrification research at Ferrari, starting with Formula 1 technology that was first incorporated into the limited edition La Ferrari hybrid supercar that debuted in 2013.

    To maintain the sports car feel and emotions integral to the Ferrari experience, the Elettrica will capture powertrain vibration through accelerometers on the rear axle that will be amplified to create a sports car roar. Drivers also can select five power levels using steering panels to create the sensation of continuous acceleration.

    Ferrari also is manufacturing most critical components internally, including the battery system and software. The chassis and body shell will be made out of 75% recycled aluminum, saving 6.7 tons of carbon dioxide per vehicle.

    In raising its forecast, Ferrari said that revenues this year would top 7.1 billion euros ($8.2 billion), up from more than 7 billion euros in the previous guideline. Ferrari also targets earnings before interest, taxes, depreciation and amortization, or EBITDA, of 2.7 billion euros with a margin of more than 38.3%.

    Presenting its five-year plan, the Formula 1 racing team and sports carmaker that has expanded into luxury goods is projecting net revenues of 9 billion euros by 2030 with and EBITDA of at least 3.6 billion euros on 40% margins.

    Chief Financial Officer Antonio Picca Piccon said that the confirmation of 15% tariffs on European car imports to the U.S. removed “an important element of uncertainty.” The targets were raised based on solid business performance and increased revenues from the sports car business.

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  • Ferrari reveals features of first fully electric vehicle

    MILAN — MILAN (AP) — Italian luxury sports carmaker Ferrari raised its 2025 guidance on Thursday, despite global 15% tariffs on foreign car imports to the United States, as the company unveiled the new powertrain and chassis of its first fully electric production vehicle.

    Ferrari CEO Benedetto Vigna declined to give target production numbers or a price for the Ferrari Elettrica, which will be delivered beginning late next year, with the design to be revealed in the spring.

    Under the carmaker’s new five-year plan, 40% of the product lineup will be the brand’s core internal combustion engines, 40% will be hybrid and 20% will be electric by 2030, with an average of four new launches a year in the period. The new business plan calls for more models with lower volumes of each.

    The fully electric vehicle Ferrari Elettrica represents a new segment that Vigna said would bring new buyers to Ferrari. It builds on 15 years of electrification research at Ferrari, starting with Formula 1 technology that was first incorporated into the limited edition La Ferrari hybrid supercar that debuted in 2013.

    To maintain the sports car feel and emotions integral to the Ferrari experience, the Elettrica will capture powertrain vibration through accelerometers on the rear axle that will be amplified to create a sports car roar. Drivers also can select five power levels using steering panels to create the sensation of continuous acceleration.

    Ferrari also is manufacturing most critical components internally, including the battery system and software. The chassis and body shell will be made out of 75% recycled aluminum, saving 6.7 tons of carbon dioxide per vehicle.

    In raising its forecast, Ferrari said that revenues this year would top 7.1 billion euros ($8.2 billion), up from more than 7 billion euros in the previous guideline. Ferrari also targets earnings before interest, taxes, depreciation and amortization, or EBITDA, of 2.7 billion euros with a margin of more than 38.3%.

    Presenting its five-year plan, the Formula 1 racing team and sports carmaker that has expanded into luxury goods is projecting net revenues of 9 billion euros by 2030 with and EBITDA of at least 3.6 billion euros on 40% margins.

    Chief Financial Officer Antonio Picca Piccon said that the confirmation of 15% tariffs on European car imports to the U.S. removed “an important element of uncertainty.” The targets were raised based on solid business performance and increased revenues from the sports car business.

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  • Ferrari Reveals Its Electric Powerhouse, and What Could Finally Be Real EV Sound

    Palermo says the sound can be reduced when cruising, then amplified during more dynamic driving. Allegedly, it’s even possible to sense when a rear wheel breaks traction, since the rise in revs of that motor would be detected by the accelerometer. He also says how latency—the time between a change in motor revs and the sound reaching the driver’s ear—is “below the threshold of human perception… instantaneous.”

    The sound will also adjust depending on how the driver engages with the steering wheel paddles for regenerative braking and the Torque Shift Engagement system. But, for now, Ferrari refuses to comment on exactly how motor sound is broadcast in the cabin—be it through the car’s sound system, or some other means—and how external sound will be created. Underscoring Ferrari’s commitment to using an authentic drivetrain sound, Palermo adds: “It’s an instrument, not a ringtone.”

    Individually Controlled Wheels

    Remarkably, for a company whose cars are synonymous with theatrical histrionics, Ferrari says during normal driving “silence is preferred to maximize acoustic comfort.” To that end, it has worked hard to illuminate noise, vibration, and harshness (known in the industry as NVH), since there’s no longer a loud engine to drown it all out.

    The Elettrica’s suspension is an evolution of the active system used by Ferrari’s Purosangue SUV and F80 hypercar, which employs 48-volt motors to apply torque to each shock absorber, actively working to eliminate pitch and roll.

    As with other electric cars, a heavy battery pack in the floor helps to lower the center of gravity; in this case, by 80 mm compared to an equivalent non-EV. Although it can’t defy physics, Ferrari claims its suspension trickery and quad-motor setup makes the Elettrica handle as if it were almost 1,000 lbs lighter.

    The result is a car where each wheel has its own individually controlled power, braking, suspension, and steering—with the rear wheels even able to be steered independently of each other, by up to 2.15 degrees in either direction. Each of the four motors can also operate their own regenerative braking, with up to 0.68G of deceleration possible with the most aggressive level of regen. That’s more than half the braking force experienced during an emergency stop in a regular car.

    Alistair Charlton

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  • Tesla offers cheaper versions of 2 electric vehicles in bid to win back market share in tough year

    NEW YORK — NEW YORK (AP) — Tesla rolled out new, cheaper versions of two of its electric car models on Tuesday in hopes the offerings will help revive flagging sales.

    The new Model Y, costing just under $40,000 with a stripped-down interior, follows a slump in Tesla sales covering most of the past year due to anti-Elon Musk boycotts targeting the company. The company is also offering a cheaper version of its Model 3 for under $35,000.

    The company is under intense pressure to lift sales but is facing big challenges. In addition to anti-Musk backlash, it is contending with a likely hit to demand after a federal tax credit worth as $7,500 for EV purchases expired at the end of September.

    Tesla stock fell more than 2.5% to $441.08 in late afternoon trading Tuesday. It had closed Monday up more than 5% after the company teased fans with cryptic postings on social media about an imminent product announcement.

    The stock has been trading near all-time highs even though both sales and profits have plunged in recent quarters.

    Compared to previous models, the new Model Y comes with a shorter 321-mile driving range, fewer audio speakers and a fabric interior, not microsuede. The model also lacks a panoramic glass roof and a touchscreen in the second row.

    The new Model 3 has also cut down on the driving range, ambient lighting and other features.

    The new Model Y faces stiff competition in the $40,000 range for EVs from vehicles including Ford’s Mustang Mach-E, Chevrolet’s Equinox EQ and Hyundai’s Ioniq 5.

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  • Lucid Motors sets record as Gravity sales pick up and tax credit expires | TechCrunch

    Lucid Motors delivered a record 4,078 vehicles in the third quarter, likely buoyed by a combination of more Gravity SUVs hitting the road and a rush of customers taking advantage of the expiring federal EV tax credit.

    The Saudi-owned luxury EV startup is still way off the projections it used to go public in 2021 — a transaction that netted it $4 billion. But Lucid Motors has seen deliveries steadily climb over the last two years. The third-quarter delivery figures announced Monday mark the seventh consecutive quarter that Lucid Motors has seen sales increase.

    Lucid Motors was not alone in seeing a big third-quarter bump in EV sales. Tesla recorded its best quarter in company history, and legacy automakers like Ford and General Motors saw big increases as well. Even Rivian, which is forecasting a worse overall year for total EV deliveries than 2024 or 2023, saw a boost in the third quarter.

    Like Rivian, only customers who leased Lucid Motors vehicles were eligible for the federal EV tax credit, meaning the impact of its expiration is hard to quantify. It’s also unclear how many Gravity SUVs were delivered compared to the company’s first model, the Air sedan. Lucid Motors will reveal full financial results for the quarter on November 5.

    Lucid Motors has struggled to generate interest for its luxury EVs since going public in 2021, with former CEO Peter Rawlinson openly admitting the company needed to beef up its marketing operations. Earlier this year, the company announced it signed actor Timothée Chalamet to be its first “global ambassador.” The company has also benefited from rental sales and company leases in some quarters, as TechCrunch previously reported.

    The company is also increasingly looking to Saudi Arabia — which owns around 60% of the publicly traded company through its sovereign wealth fund — as a market for its vehicles. On Monday, Lucid Motors said it built more than 1,000 vehicles specifically for the Saudi market. (The company currently operates an assembly facility in the Kingdom and plans to open a full-fledged factory there.)

    Lucid has also locked in future demand from an unlikely customer: Uber.

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    Uber announced last month plans to buy at least 20,000 Gravity SUVs over the next six years and use them as robotaxis on its network. For that deal, Lucid Motors will work to integrate autonomous vehicle company Nuro’s technology into the vehicles.

    Sean O’Kane

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  • We’ve Been Using Lithium-Ion Batteries for Decades. Now We Know More About How They Work

    In science, there is a surprisingly long list of things we still haven’t exactly figured out yet but still use because they work. This unexpectedly has been the case for lithium-ion batteries—a power source for electric vehicles and various portable electronics—where scientists knew what the mechanism was but weren’t sure exactly how it worked.

    Fortunately, MIT scientists have found the answer. For a Science paper published October 2, researchers describe a model that illustrates how coupled ion-electron transfer (CIET), a process in which an electron travels to the electrode with an ion, in this case a lithium ion, may explain the life source of a lithium-ion battery. The insight could “guide the design of more powerful and faster charging lithium-ion batteries,” according to the researchers.

    A cascade of molecules

    A typical lithium-ion battery works via a chemical mechanism called intercalation. Essentially, during battery discharge, lithium ions dissolved in an electrolyte solution insert themselves inside of a solid electrode. When the ions “de-intercalate” and return to the electrolyte, the battery charges.

    The rate of intercalation governs everything from a battery’s net power to its charging speed—the reason the researchers found it imperative to better understand the underlying mechanisms, the paper explained.

    Previously, scientists believed that lithium intercalation in a battery electrode was driven by a model describing how quickly lithium ions could diffuse between the electrolyte and the electrode. However, actual experiments hadn’t quite matched what that model predicted, suggesting to researchers that there may be another option.

    A traveling pair

    For the new study, the researchers prepared more than 50 combinations of electrolytes and electrodes to straighten things out once and for all. Like previous experiments, they found sizable inconsistencies between actual data and the model. So instead, the team came up with several alternatives that could explain what they were seeing.

    Finally, they decided on a model based on the assumption that a lithium ion could only enter an electrode if it travels with an electron from an electrolyte solution—coupled ion-electron transfer. This electrochemical pairing makes it easier for intercalation to occur, the researchers explained, and the mathematics behind CIET fits the data well.

    “The electrochemical step is not lithium insertion, which you might think is the main thing, but it’s actually electron transfer to reduce the solid material that is hosting the lithium,” Martin Bazant, study co-author and a mathematician at MIT, told MIT News. “Lithium is intercalated at the same time that the electron is transferred, and they facilitate one another.”

    Not only that, but the researchers also accidentally discovered that switching up the composition of electrolytes influenced intercalation rates. Follow-up investigations could uncover more efficient ways for creating stronger, faster batteries, they explained.

    “What we hope is enabled by this work is to get the reactions to be faster and more controlled, which can speed up charging and discharging,” Bazant said.

    Gayoung Lee

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  • China Is Leading the World in the Clean Energy Transition. Here’s What That Looks Like

    Speaking by video at the UN Climate Summit in New York last week, China’s president Xi Jinping laid out his country’s climate ambitions. While the stated goals may not have been aggressive as some environmentalists would like, Xi at least reaffirmed China’s green commitment.

    “Despite some countries going against the trend, the international community should stay on the right track, maintain unwavering confidence, unwavering action, and undiminished efforts,” he said. Any reference to Donald Trump and the United States was surely intended (though not explicit).

    The march of the energy transition is a long one, but it has to start somewhere. And with this approach, China has already taken quite a few steps.

    Beijing Stands (Mostly) Alone

    Today, there is no race to be a climate leader. The world is a far fry from the COP26 conference in November 2021, when tackling the threat of climate change seemed like a global priority. A few months later, Russia invaded Ukraine; the ensuing energy crisis and inflation kicked climate off of many political agendas.

    While Joe Biden and the United States responded to soaring prices with the Inflation Reduction Act, which prioritized investment in renewable energy, Donald Trump subsequently withdrew the US from the Paris Agreement—an international accord to limit global warming—for the second time. The European Union has also stuttered: Too internally divided, it did not go beyond a drab declaration of intent at the UN Climate Summit. There hasn’t been much movement from India, a country of nearly 1.5 billion people. And other nations’ emissions are simply too small to matter.

    Given this background, it becomes easy to understand how, in this scenario, China has become a global leader in the clean energy transition. Xi’s speech did not go into much detail, but it did mention all the main points of China’s strategy.

    Cut Emissions Between 7 Percent and 10 Percent by 2035

    In New York, Xi acknowledged the importance of the transition, and for the first time, agreed to reduce greenhouse gas emissions rather than simply promise to slow them down. China’s stated goal is between 7 percent and 10 percent reduction by 2035.

    How do you evaluate these pledges? While the commitment is vague, it’s still significant; previously the regime had merely promised to reach peak emissions by 2030, tying the cuts to economic growth. In Xi’s speech you can seen China transition from a developing country approach to a role more akin to that of industrialized countries, whose emissions have been declining for decades.

    Slow Going?

    It should be pointed out that reducing emissions at the pace promised by Beijing means a decline of about 1 percent a year. According to an analysis by William Lamb of the Potsdam Institute for Climate Impact Research, this is a slower pace than that held by most industrialized nations. Italy, for example, has reduced them by an average of 3.2 percent every 12 months since their peak in 2006; the United Kingdom by an average of 2.8 percent since 2004; France by 2.3 percent.

    “China has often promised little and achieved much,” notes Andreas Sieber, associate director for policy and campaigns for the global climate nonprofit 350.org, suggesting that China might overdeliver. The country’s lack of democracy also means its policies are not at risk of reversal every election cycle.

    On Renewables

    Xi Jinping’s speech included a commitment to reach 3,600 gigawatts (GW) of installed wind and solar capacity by 2035, six times the country’s 2020 figures. This is already the leading country in terms of installed renewable power, and a giant on the technology front as well, with universities churning out environmental and climate tech research at full speed, and attracting scientists from abroad across numerous fields. He also announced a commitment to an energy mix with more than 30 percent renewables.

    On Electric Vehicles

    Mobility has long been an issue for China, which has moved from bicycles, ubiquitous until the 1990s, to the mass automobile. The images of the 2008 Beijing Olympics are unforgettable: A blanket of smog buried the city. The government has in recent years given a strong boost to electric mobility: At the Climate Summit it announced plans to make EVs “mainstream,” that is, prevalent in sales. It helps that it has ready access to rare earth minerals that are essential for building batteries. And for that matter, the country hosts giant automotive companies like BYD and Catl, which supplies batteries to some 50 global brands including Tesla and Volkswagen.

    On the carbon market

    Xi has declared his intention to expand the national carbon emission trading market to more emission-intensive sectors than today.

    On forests

    China made additional commitments on forests, which it says will reach an extent of 34 billion cubic meters.

    China has reshaped the market for green technologies.

    To skeptics expecting broader measures and the mantle of true global leadership from China, well, that’s not a particularly coveted title these days—especially if the US continues to reverse course on climate science. As senior advisor Bernice Lee of the think tank Chatham House notes, China invested $625 billion in the clean energy transition last year alone; that’s nearly a third of the gobal total.

    Not only that: Research and massive adoption of renewable technologies have led to the dramatic drop in prices, and China’s very large domestic market is a formidable driver in this regard. “The rise of Chinese renewables is reshaping the global economy and replacing coal in the domestic market,” Lee says.

    The hope is that other countries, reassured by that commitment, will follow China’s example rather than America’s.

    Antonio Piemontese

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  • Why Are Car Software Updates Still So Bad?

    Despite years of effort and the outlay of billions of dollars, none of the world’s automakers have yet to match Tesla’s prowess in delivering over-the-air (OTA) software updates. Just like with your phone and laptop, these operating system refreshes allow owners to upgrade their cars remotely.

    Tesla introduced OTAs in 2012, but now Elon Musk’s company pumps out these updates like no other automaker. “Tesla once issued 42 updates within six months,” Jean-Marie Lapeyre, Capgemini’s CTO for automotive, tells WIRED. But for many other automakers, says Lapeyre, OTAs ship “maybe once a year.”

    For traditional car companies, software remains, or has been until very recently, merely one bolt-on component among many. In contrast, for Tesla and other digital-native automakers—among them Rivian, Lucid, Polestar, and Chinese brands such as BYD, Xpeng, and Xiaomi—it’s almost the whole shebang.

    Interestingly, GM was actually the first automaker to introduce OTA functionality, two years ahead of Tesla, but it was limited to the OnStar telematics system. OTAs from traditional automakers often add just infotainment tweaks, while OTAs from the digital-first brands can be shape-shifters, increasing range and boosting speed. They often also gift features from the puerile to the genuinely performative: fart noises on demand from Tesla, plusher suspension for Rivian owners, and car unlocking by phone from Polestar.

    Cars have had onboard microprocessors since the 1970s, but until relatively recently traditional automakers made their cars with software designed to remain largely unchanged throughout a vehicle’s 20-year lifespan. Since 2021, the complexity of the latest vehicle software platforms has increased by about 40 percent per year, estimates McKinsey. There are now 69 million OTA-capable vehicles in the US, reckons S&P Global.

    Such software-defined vehicles, or SDVs, would boost car sales, automakers hoped. According to two scorecards measuring SDV progress, Tesla leads the pack. Gartner’s Digital Automaker Index for 2025 places Chinese EV manufacturers Nio and Xiaomi in second and third positions, respectively. Wards Intelligence agrees these are the three to beat. On the other end of the scale, and similar to the Wards analysis, Nissan, Toyota, Mazda, and Jaguar Land Rover wallow at the bottom.

    Saving and Selling

    Done right, OTAs not only freshen a car’s user experience, they can also slash the cost of recalls for automakers. More than 13 million vehicles were recalled in 2024 due to software-related issues, a 35 percent increase over the prior year. Before OTAs, the average cost of an auto recall was about $500 per vehicle. OTAs may be delivered wirelessly, but they are not cost-free, either for the environment or for automakers—Harman Automotive, a supplier of OTA software, estimates that it costs an automaker $66.50 per vehicle to deliver a 1 GB update.

    But it’s usually only the digital natives sending out huge update files, because generally only they are capable of firmware over-the-air (FOTA) updates. These can update powertrains, battery management, and braking systems. FOTA capabilities require cars—usually EVs—to have good, persistent connectivity and significant computing power, much of it left latent for future updates. Lucid’s Gravity electric SUV, for instance, is equipped with the latest Nvidia Orin-X processor, with 512 GB of onboard storage, yet the vehicle’s OS fits on just 100 GB, leaving oodles of room for later OTA refreshes.

    As Western car company revenues fall, automakers are looking to make money from OTA-enabled subscriptions. Give Tesla $2,000 and, with the optional Acceleration Boost, your EV can be unlocked over-the-air to become a tire squeal quicker off the mark. For another $10 a month, Tesla’s “premium connectivity” package adds streaming data, live sentry cams, and other goodies. Want what critics claim is the misleadingly named Full Self Driving (FSD) Supervised feature? It’s yours for an additional $99 a month.

    Carlton Reid

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  • Tesla vehicle sales made a comeback last quarter. Will a lost EV tax credit end the rebound? | Fortune

    During a rough week for electric-vehicle makers in the U.S., Tesla investors got at least one piece of good news on Thursday. The EV maker reported a pronounced increase in sales—better numbers than Wall Street had predicted, and a respite from the lagging deliveries Tesla has been reporting over the last two quarters.

    While analysts had expected Tesla to sell around 450,000 EVs over the three months ending in September, Tesla ended up delivering more than 497,000—about 100,000 more than the previous quarter, and a 7.5% increase from this time last year. Dan Ives, one of Tesla’s most notorious bulls, blasted out an analyst note that same morning, describing the numbers as a “massive bounceback” for Tesla—a turnaround for a company that has been battered over the first half of this year in several key markets as CEO Elon Musk tried his hand in a brief yet chaotic stint in American politics.

    The key question is this: Will it last? 

    After all, Tesla’s short-term sales surge was closely related to its looming longer-term challenge. One of the key reasons for Tesla’s strong sales figures, investors and analysts noted, was the temporary rush of consumers purchasing an EV right before the elimination of the $7,500 electric vehicle tax credit. That incentive—which officially ended on Tuesday—had been in place for 17 years and had helped narrow the price gap between electric and gas vehicles for U.S. buyers. Tesla on Wednesday went ahead and increased the cost of leasing its vehicles, as its first move reflecting the change.

    With the tax credits no longer available, the change is expected to take a significant toll on consumer demand—at least in the near term. 

    Tesla is well aware of this. It added risk disclosures in its latest quarterly filings about the potential impact of the loss of the consumer incentive as well as another now-non-existent sales booster, carbon offset incentives for manufacturers. The EV maker acknowledged the possibility that their removal could harm both demand from Tesla customers and the company’s future financial returns. 

    Musk himself has opined on the topic, too. “Yeah, we probably could have a few rough quarters,” he said in July on Tesla’s last earnings call, in response to an analyst’s question. “I’m not saying we will, but we could. Q4, Q1, maybe Q2.”

    Andrew Rocco, a stock strategist with Zacks Investment Research and an investor in Tesla shares, said in an interview that he’s anticipating a drop off in sales for the next two quarters or so. 

    But the long-term impact may be contingent on several other factors: whether Tesla can absorb some of the lost credit in order to keep prices down; whether it can continue to regain market share in markets like Europe and China where its reputation has suffered over the last eight months; and whether the EV maker can deliver on the timelines it has furnished for a more-affordable Model Y.

    “If they can come out with that cheaper model Y… That would be a huge catalyst to help them offset that EV tax credit sunsetting,” Rocco says.

    Last time around

    It’s worth doing a quick history lesson when considering how Tesla may respond to the elimination of the $7,500 tax credit. After all, this isn’t the first time it’s had to do so.

    If you recall, when the incentive was first put in place via bipartisan legislation in the late 2000s, there was a cap: After a vehicle manufacturer sold a total of 200,000 eligible vehicles, the tax credit would slowly phase out until it was eliminated altogether. Both Tesla and General Motors ended up hitting that threshold, and their tax credits were halved twice before dissolving completely. The cap was removed under the Inflation Reduction Act of 2022, allowing Tesla and GM to take advantage of it again.

    Back in 2018, Tesla sold 200,000 EVs, becoming the first EV maker to hit said cap. As a result, in January 2019, Tesla customers had their rebates cut in half to $3,750. To respond to the change, Tesla rolled out a $2,000 price cut for the Model S, Model X, and Model 3 the very next day, absorbing a large chunk of the lost incentive.

    Because of Tesla’s strong margins, Rocco pointed out that Tesla could be in a position to do the same today if it chooses.

    So far, Tesla hasn’t committed one way or another. The company has committed to releasing a lower-cost Tesla Y model later this year, however. Musk said that the new vehicle would be “available to everyone” before the end of 2025. 

    That model has been rumored to cost somewhere around $39,990—which would be approximately $5,000 cheaper than the most affordable Model Y currently available. But there hasn’t been a firm price announcement. Rocco said that it will be “critical” for Tesla to meet Musk’s fourth-quarter deadline. 

    Cost savings

    It seems that all EV-makers are on the hunt for potential cost savings right now that they can ultimately pass down to the customer in lieu of the bygone tax credit. 

    Chris Barman, CEO of Slate Auto, the startup that plans to start selling its low-cost customizable trucks to customers next year, told Fortune in an interview on Tuesday that there’s at least one upside to the loss of the tax credit. Because the company is no longer subject to all the supplier restrictions required under the Inflation Reduction Act to secure customers the tax credit, Slate has more options for battery suppliers that it can work with. “It would give us the opportunity to pass lower costs along to the consumer in a different way,” Barman said.

    That being said, don’t expect those cost savings to add up to $7,500. While Barman wouldn’t provide a specific figure, she acknowledged, “It’ll be a significant cost reduction, but it won’t offset the full amount of credit itself.”

    Another thing to keep in mind: There are still state-level incentives, too, as Barman pointed out—with the potential for more. A handful of states, including California, Colorado, Vermont, and Connecticut, currently offer their residents an EV tax credit. And states including Pennsylvania, Minnesota, and Texas are looking at incorporating their own incentives, too.

    Tesla, meanwhile, is hoping that its impending autonomous capabilities will give the company an edge, even as its vehicles suddenly become more expensive for customers. Tesla is expected to roll out the 14th iteration of its “full self-driving” software shortly, and has already started doing so with select influencers this week.

    “Once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I think the—I would be surprised if Tesla’s economics are not very compelling,” Musk said during the Q2 earnings call.

    Wall Street thus far doesn’t seem quite as optimistic. On Thursday, even after Tesla reported its strong sales figures, shares fell more than 5%.

    Jessica Mathews

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  • EV Credit Rush Gave Tesla a Much-Needed Boost—But Challenges Loom

    The Elon Musk-helmed company saw its delivery numbers soar after a shaky few quarters. Photo by Katherine KY Cheng/Getty Images

    The end of U.S. electric vehicle tax credits is expected to pose long-term challenges for industry leaders like Tesla. But the policy’s looming expiration fueled a surge in sales in the latest quarter. Tesla delivered 497,099 vehicles in the July-September quarter, a record high and up 7 percent from the same quarter last year. The strong quarter marks a turnaround for the carmaker, which has struggled with intensifying EV competition and growing backlash over CEO Elon Musk’s political activity. Its previous quarterly results showed deliveries of 384,122, a 13.5 percent year-over-year drop and the company’s second consecutive decline.

    The rush in sales was driven in large part by the September 30 termination of federal EV tax credits, which offered up to $7,500 per purchase. The policy change, enacted earlier this year by President Donald Trump, spurred buyers to close deals before the deadline. Tesla wasn’t the only beneficiary—Cox Automotive projects total U.S. EV sales in the third quarter will reach 410,000, a 21 percent increase over last year.

    “This was a great bounce back quarter for [Tesla] to lay the groundwork for deliveries moving forward,” said Dan Ives, a Wedbush Securities analyst, in a client note. Nevertheless, “EV demand is expected to fall with the EV tax credit expiration,” he warned. Tesla shares are down by more than 4 percent today (Oct. 2).

    Whether Tesla can sustain this momentum remains uncertain. Musk has increasingly positioned his company around a future dominated by self-driving cars and robotics, rolling out autonomous cars in Austin this summer. But for now, the bulk of Tesla’s revenue continues to come from EV sales, accounting for nearly three-quarters of its $22.5 billion in revenue last quarter.

    The company faces particular headwinds in Europe, where political backlash has weighed heavily on sales. In the first eight months of 2025, Tesla registrations in European Union countries fell 43 percent compared to the same period last year, according to data from the European Automobile Manufacturers’ Association. August alone saw a 36 percent year-over-year drop. Overall, however, EV adoption in the EU continues to climb, with market share rising to 15.8 percent from last year’s 12.6 percent.

    In China, Tesla is also losing ground. Shipments from its Shanghai Gigafactory reportedly fell 4 percent year-over-year in August, marking declines in seven of the past eight months. In an effort to combat local EV rivals, Tesla recently introduced its Model Y L to the region.

    One bright spot for the company is its energy storage unit. The unit deployed 12.5 GWh of storage products over the past three months, up more than 80 percent from last year. The business, which includes Megapack and Powerwall battery systems, is gaining traction with utilities and companies expanding their A.I. infrastructure. Musk’s own A.I. startup, xAI, was among its clients, contributing nearly 2 percent of Tesla’s $10 billion in energy revenue last year.

    EV Credit Rush Gave Tesla a Much-Needed Boost—But Challenges Loom

    Alexandra Tremayne-Pengelly

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  • Rivian’s best-case guess for 2025 sales is a 16% drop from last year

    Rivian electric vehicles are parked at the Rivian Venice Hub on November 13, 2024 in Venice, California. The California-based electric vehicle manufacturer Rivian’s joint venture with German automaker Volkswagen is being expanded to $5.8 billion. | Image Credits:Mario Tama / Getty Images

    Rivian now expects to deliver no more than 43,500 electric vehicles by the end of 2025, which would represent a nearly 16% drop from last year’s sales.

    The company announced the new guidance for investors on Thursday alongside production and delivery figures for the third quarter of this year. Rivian saw deliveries jump to 13,201 vehicles, up from 10,661 and 8,640 in the second and first quarters, respectively. The company also built 10,720 EVs in the quarter.

    That’s a good recovery from a slow start to the year. But the company has now all but confirmed that this year will see fewer Rivian vehicles delivered than in 2024 and in 2023, when it moved just over 50,000 electric vehicles.

    Rivian’s struggle to grow sales comes at a critical time for the company. It’s in the midst of preparing to launch what is supposed to be its most affordable — and most popular — vehicle next year, the R2 SUV. The company expects to build and sell hundreds of thousands of these, and has poured capital into expanding its Normal, Illinois factory to build them. Rivian has also broken ground on a brand new factory in Georgia where it will build the R2 and its hatchback sibling, the R3.

    Rivian came into this year optimistic it could match 2024’s sales, telling investors that it expected to deliver between 46,000 and 51,000 vehicles. Rivian sold 51,579 vehicles in 2024.

    But by May, as President Trump implemented sweeping and often-changing tariffs, the company lowered its estimate, saying it would deliver between 40,000 and 46,000. Rivian said, at the time, that the reason for the drop was the “evolving trade regulation, policies, tariffs and the overall impact these items may have on consumer sentiment and demand.”

    The company again “narrowed” that range on Thursday to between 41,500 and 43,500 vehicles.

    Electric vehicles are going through a challenging time in the U.S., especially as the Trump administration becomes increasingly hostile to electric vehicles and renewable energy. Major automakers are playing along. Most have delayed or outright canceled plans for new EVs, and they’ve also expressed support for the administration’s attempt to roll back emissions regulations.

    Despite all that, most of those same automakers saw a huge boost in EV sales during the third quarter of this year as customers rushed to take advantage of the expiring $7,500 federal EV tax credit. The credit’s demise was such a strong motivator that it helped Tesla deliver a record number of vehicles.

    Rivian may not have enjoyed the same credit phase-out shopping rush as other automakers since the company’s vehicles were only eligible for the subsidy if they were leased.

    Still, Rivian CEO RJ Scaringe has expressed optimism about his company’s chances in a post-credit world. Speaking to InsideEVs in August, Scaringe said he believes some automakers were skewing the market with money-losing EVs in order to reap regulatory credits they could sell to the competition. Without the federal subsidy, that game becomes a losing proposition he said.

    “What I think will happen as we play out the rest of the 2020s, like through 2029, 2030, is you’re going to have sort of a vacuum of competition, and the pure-play EV-focused companies — Rivian, Tesla, there’s not very many — because they’re completely and fully focused on electrification, will have the advantage of a pretty thin competitive playing field,” he said.

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  • BMW Unveils iX3 in U.S., Betting on Luxury EV Appeal Amid Slowing Demand

    German Chancellor Friedrich Merz (L) is introduced to a BMW iX3 car by BMW CEO Oliver Zipse (C) , watched by Bavaria’s State Premier Markus Soeder (R) at the German car manufacturers booth on the opening day of the International Motor Show IAA, Sept. 9, 2025, in Munich, Germany. TOBIAS SCHWARZ/AFP via Getty Images

    At Climate Week NYC, BMW unveiled its new all-electric flagship, the BMW iX3, marking the U.S. debut of its Neue Klasse platform and reaffirming the automaker’s pledge to electrify more than 40 models in the coming years. The launch comes at a time when EV demand appears to be slowing and many automakers are rethinking their electric strategies.

    BMW CTO Joachim Post emphasized that the iX3 is more than just another crossover. “It’s a new era for us,” Post told a small group of media, including Observer, ahead of the event this week. He explained that BMW engineers have merged technology, design and computing power into a single platform adaptable across the lineup, from sports cars to SUVs.

    The iX3 promises about 400 miles of range and can add roughly 175 miles of charge in just ten minutes on a 400kW charger. Inside, it features a panoramic head-up display stretching from pillar to pillar across the windshield and four “superbrain” computers managing everything from vehicle dynamics to navigation and climate control.

    Such advances come as competition in the EV space heats up. Tesla, Hyundai and BYD are rolling out efficient, long-range, fast-charging models at competitive prices. BMW is betting that it can combine performance and luxury while insulating itself from the geopolitical turbulence shaping the global auto industry.

    Part of that strategy is what BMW calls its “local-for-local” footprint, with factories in Hungary, Munich, and Spartanburg, S.C. “Production follows the market and supply chain follows production,” Post said, noting the company’s $1.7 billion investment in U.S. battery and vehicle assembly plants. That approach, he added, allows BMW to adapt regardless of shifting incentives or political headwinds.

    At the same time, BMW is pursuing a “technology open” philosophy. Post stressed that combustion engines and hybrids won’t disappear from the lineup, even as EVs like the iX3 and upcoming electric X5 roll out. “The customer decides which car they are buying,” he said. “Government can make regulations, but the customer will decide what they want.”

    A blue BMW iX3 on stageA blue BMW iX3 on stage
    The BMW iX3 is inspired by the classic BMW 2002 kidney grilles. Sven Hoppe/picture alliance via Getty Images

    The iX3’s look has been met with mixed, but largely positive reviews here in the States. The new design moves away from the oversized “chipmunk” grille, with cues inspired by the classic BMW 2002 kidney grilles. Post dismissed the idea that BMW’s previous bold designs were driven by Chinese demand. “BMW makes designs that work all over the world,” he said, noting that market-specific adjustments, like longer wheelbases in China and sport packages in the U.S., have always been part of the strategy.

    Inside, BMW’s new Panoramic iDrive system aims to restore its driver-centric reputation. Augmented reality projected on the windshield reimagines how drivers engage with their surroundings, addressing criticism that BMW had strayed too far from its performance roots.

    Beyond luxury and design, BMW is sharpening its focus on sustainability. It has partnered with SK On and Redwood Materials (Tesla co-founder JB Straubel’s EV battery company) in the U.S. to develop closed-loop battery recycling. While large-scale recycling is still years away due to the limited supply of used batteries, BMW executives stressed its importance. “EVs are mines on wheels,” said Glenn Schmidt, BMW’s vice president of sustainability. “We need to treat vehicles as resources, where a bumper doesn’t end up as a bottle, but rather a high-value component in a future car.”

    Executives also highlighted BMW’s push toward circularity as a hedge against geopolitical risk. The company is using A.I. to track the lifecycle of vehicle components, and has already mapped the complete carbon footprint of its kidney grilles.

    The iX3’s debut underscores BMW’s commitment to the U.S. market, EVs and the Paris Accords—even as adoption in the U.S. lags behind Europe and China. Post acknowledged American skepticism about EVs but noted that “most customers don’t go back to combustion engines once they’ve tried an EV.” He also pointed to BMW’s sixth-generation battery technology as a path toward affordability without reliance on fading government subsidies.

    In the end, the iX3 is both BMW’s calling card and a test case in an uncertain U.S. EV market. The real question is whether BMW’s strategy of flexibility—in design, powertrains and supply chains—will be enough to win over consumers who remain undecided about electric cars.

    BMW Unveils iX3 in U.S., Betting on Luxury EV Appeal Amid Slowing Demand

    Abigail Bassett

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  • China tightens rules for electric vehicle exports

    TAIPEI, Taiwan — China will tighten the rules for exporting electric vehicles by requiring automakers to obtain export permits from next year, the Commerce Ministry said Friday.

    The export licenses, required from Jan. 1, are intended to “promote the healthy development of the new energy vehicle trade,” the ministry said in a statement.

    The controls come as Beijing is trying to rein in the electric vehicle sector in the world’s largest auto market.

    China is also the largest car exporter, selling about 5.5 million vehicles abroad last year, of which nearly 40% were EVs.

    The United States and European Union members are among countries to have imposed tariffs on made-in-China electric vehicles, saying that government subsidies have given them an unfair advantage.

    In recent months, Beijing has been trying to address concerns about oversupply and a debilitating price war between its EV makers. Critics say the EV market is plagued by “involution,” a term to describe companies and industries engaged in meaningless competition that leads nowhere.

    In particular, market leader BYD came under criticism earlier this year when it launched a new round of price cuts, and several competitors followed suit. Wei Jianjun, the chairman of Great Wall Motors, warned the industry could come under threat if it continues on the same trajectory.

    Nevertheless, China’s domestic EV sector saw record sales in the first half of 2025, with EVs making up more than 50% of total passenger vehicle sales.

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  • Uber CEO Dara Khosrowshahi Bets on Autonomous Cars to Revive Slowing EV Market

    Uber CEO Dara Khosrowshahi says autonomous cars will act as a “catalyst” for EV adoption as Uber expands its global self-driving footprint. Photo by Riccardo Savi/Getty Images for Concordia Annual Summit

    The once-booming U.S. market for electric vehicles is slowing, but Uber CEO Dara Khosrowshahi isn’t fazed. Speaking today (Sept. 23) at the Concordia Summit in New York, he said Uber’s push into self-driving cars could act as a “catalyst” for EV adoption.

    Beyond safety and affordability, autonomous vehicles (AVs) offer another key advantage: sustainability. “The other really positive factor with AVs is that AVs are, by nature, also electric,” said Khosrowshahi, who pointed to Uber’s growing autonomous footprint in the U.S. as a way to help revive the country’s flailing EV transition.

    Uber, led by Khosrowshahi since 2017, currently offers AV rides in Austin, Atlanta and Phoenix through a partnership with Alphabet’s Waymo. Abroad, the company has teamed up with China-based WeRide to provide autonomous rides overseen by human safety drivers in Middle Eastern cities like Dubai and Abu Dhabi.

    That footprint is set to expand. Later this year, Uber plans to launch in Germany and unveil new projects across Asia, Khosrowshahi said, noting the company now works with about 20 AV partners worldwide. “Autonomous is happening now, and it’s expanding all over the world.”

    A supportive regulatory framework is crucial when selecting AV markets, according to Khosrowshahi, who emphasized that robot drivers are five times safer than humans. “They don’t get distracted, they’re not texting, and most of these AV models will have driven over 1,000 times the miles that you and I will ever drive,” he said.

    Launching in regions where Uber has a strong presence is another advantage. Adding AV services to an existing network makes operations more efficient and helps offset high costs—self-driving cars can run well over $100,000 each. “You want these vehicles as highly utilized as possible,” noted Khosrowshahi.

    Over time, AVs are expected to lower fares, which could fuel demand. To avoid worsening congestion, Khosrowshahi envisions a future dominated by shared autonomous rides carrying multiple passengers, which he called a “newer development” in the field. That’s why Uber has been investing in services like UberX Share, which lets riders split trips and costs, he said.

    While AVs have been in development for decades, advances in A.I. have pushed the technology into new territory. Earlier generations of self-driving cars were largely deterministic. With the advent of large language models, modern systems can now handle complex real-world driving by learning through observation in more human-like ways. After years of research, they are “finally ready for prime time,” Khosrowshahi said. “The rate of acceleration in terms of the development of the technology, the safety of the technology, is pretty extraordinary.”

    Uber CEO Dara Khosrowshahi Bets on Autonomous Cars to Revive Slowing EV Market

    Alexandra Tremayne-Pengelly

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  • Car buyers rush to capitalize on federal EV tax credits ahead of expiration next week

    For car buyers interested in electric vehicles, the clock is ticking to take advantage of federal tax credits on new and used EVs before they expire on Sept. 30.

    Introduced in 2022 under the Inflation Reduction Act signed, the federal tax credits — $7,500 for new and $4,000 for used — are being phased out due to President Trump’s One Big Beautiful Bill Act, which is also ending a series  of other clean energy credits over the next several months. 

    With just one week to go until the expiration date of the Biden-era EV credit, customers are flocking to dealerships to cash in. EV sales reached a record high in August, with new EV sales up 17.7% year over year and used EV sales up 59% for the same period, data from Cox Automotive shows. 

    “As we approach the sunset of the IRA tax credit, we expect September to mirror August’s elevated sales activity, driven by time-sensitive purchase and lease offers,” Cox Automotive said in its report.

    The findings jibe with data from Cars Commerce — whose holdings include Cars.com — that shows  a 33% surge in EV demand since last year as shoppers rush to take advantage of the credits. The automotive tech company also found that used EVs are on dealers’ lots for 46 days on average, a nearly 30% decrease from last last year that indicates the sector of the EV market is rising in popularity.

    Deals to be had

    Anxious to clear out EV inventory before the arrival of new models in November, dealerships have been offering their own incentives, such as monthly lease rates that are are as little as 1% of the car’s sticker price. 

    The Emich Volkswagen dealership in Denver has lowered EV lease rates to $40 a month. “This deal is absurd and it’s never gonna happen again,” Philip De Jong, the marketing director at Emich, told CBS MoneyWatch.

    One customer at the Denver dealership, Stephen Hynes, told CBS News’ senior transportation correspondent Kris Van Cleave that that he would save as much as $400 a month compared with his last car payment.

    “I’m getting an electric vehicle now; it’s because of this tax credit,” said Hynes.

    A chart below from Cars.com shows which vehicles are still eligible for the federal tax credit, based on information from Environmental Protection Agency.

    What will happen after the tax credit ends? 

    September 2025 could end up being the “single biggest EV month in history,” Tim Horvick, owner of the San Tan Ford dealership outside of Phoenix, told CBS’ Van Cleave. But come October, when the EV credit is no longer in effect, the sales landscape could shift.

    “It is the concern,” Horvick said. “It could be challenging.”

    As a result of the coming end of the tax credit, along with other policy changes introduced by the Trump administration, automakers have already slowed their production of electric vehicles, shifting their attention to more popular gas and hybrid models, CBS News reported. 

    But not all experts believe the expiration of the tax credit will have a huge effect on future EV sales, and that’s simply because sales were low to begin with.

    EV sales “can’t fall off a cliff because they’re not very high,” Patrick Anderson, CEO of Anderson Economic Group, a Michigan-based economic consultancy, told CBS News’ Van Cleave. “They’re gonna fall off a small hill because that’s as high as they got.”

    Electric vehicles make up about 7% of new car sales, according to Anderson Economic Group. A recent analysis from Kelley Blue Book shows EV sales in August accounted for a record 9.9% of total car sales, up from 9.1% in July.

    Mary Cunningham

    Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.

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  • Electric vehicle motorist responds to viral video showing Minnesota trooper citing him

    Electric cars are known for being quiet, almost silent.   

    For those who miss the roar of a muscle car, speakers can be used for effect. The sound from the speakers allegedly got Mike, an electric vehicle motorist, in trouble.

    Mike and his car club friends were in downtown Stillwater earlier this year, on their way back home to the cities.

    “We were thinking about stopping to get a bite to eat at one of the various pizza places in town,” Mike said. 

    A group of six cars stopped at the traffic light right across from a gas station. The light turned green.

    “Here I am, at the back of the line. I make my way to the front. The light turns red. I stop,” Mike said.

    A Minnesota State Patrol trooper, driving in the opposite direction, was also stopped at the light.

    “The State Trooper looks at me. I look at him. As he drives by, we make eye contact. He continues, flips, pulls me over,” Mike said.

    The car he was driving was a 2025 Dodge Daytona, an electric vehicle. It has a fratzonic chambered sound mechanism.

    “You can rev it, but you have to be in park to rev it,” Mike said.

    The car is equipped with three modes. The sport mode gives motorists the visceral feeling of an eight-cylinder Muscle car.

    “Speakers on the outside and speakers on the rear,” Mike said.

    Mike tried to explain the speakers to the trooper, but he wouldn’t listen and issued the citations.

    “I didn’t want to argue with him, so I said, ‘I’ll see you in court,’” he said.

    Mike has been waiting for a court date since June. The ticket still isn’t in the Washington County court system. In the meantime, a video of the interaction that was posted online has gone viral.

    “We didn’t really expect it to blow up overnight. I was heading out to Chicago the very next day … and, like, my phone is blowing up,” he said. “I would hope the trooper realized his mistake and didn’t submit or write up the ticket.”

    WCCO has reached out to the Minnesota State Patrol.

    Mike says he’s been cited for loud mufflers when he was driving cars with gas engines.

    Tony Peterson

    Tony Peterson is a multi-skilled journalist at WCCO-TV.

    Tony Peterson

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  • Looking to Buy an Electric Vehicle? You Should Do It Before October

    For more than a decade now, climate-friendly policy has protected and boosted the American electric vehicle industry. In the past two years, that has been in the form of the electric vehicle tax credit that was a part of former President Joe Biden’s Inflation Reduction Act.

    Now, all of that is due to expire on September 30.

    Trump began his attack on the EV tax credit as his first order of business as President. The final blow came when the “big beautiful bill” passed and was signed into law this summer, officially tolling the death knell for the tax credit that could have saved consumers up to $7,500 per EV purchase.

    Electric vehicles are increasingly preferred for being climate-friendly, especially as governments around the world try to hit carbon neutrality targets to reduce the risks of climate change.

    “Transportation is the largest source of global warming pollution in the country, and passenger vehicles are the largest source within transportation,” David Reichmuth, senior scientist at the Union of Concerned Scientists’ Clean Transportation Program, told Gizmodo. “There’s really no way to make the reductions we need to make to avoid the worst damages from climate change without switching from fossil fuels to cleaner electric vehicles powered by renewable energy.”

    A tax credit helps consumers to opt for climate-friendly cars without it being a financial burden, as the industry advances the technology on the road to affordability. It also helps the American electric vehicle industry grow amid heavy competition around the world. Electric vehicle demand is booming globally, and the American industry is squarely behind Chinese and European competitors.

    “Taking away the federal tax credit won’t kill EVs, they’re already here and it’s going to happen,” Reichmuth said, adding that it will instead only slow momentum in the U.S. while contributing to worse air pollution.

    Now, ahead of the credits’ demise, the American auto industry has seen a surge in EV sales as people rush to take advantage of the credit before it’s gone.

    As long as you acquire the car before September 30, you are good to take advantage of the tax credit. Acquiring does not have to mean getting the car physically delivered by September 30; it can mean entering into a contract, making a down payment, or trading in an old vehicle, but likely no refundable deposits.

    “You have to sign the contract and buy the vehicle, even if it’s not delivered until after the end of the month, but you can’t just get on the waiting list and put in $100 and then get the vehicle in six months,” Reichmuth said.

    How to claim the EV tax credit

    There are three parts to the tax credit. One is the new car sales tax credit, an up to $7,500 bonus that the consumer can get on their tax return.

    It doesn’t apply to all cars, though: your EV should be primarily sourced and assembled in North America, and you should not exceed a certain level of income. For married couples filing jointly, that’s $300,000; for heads of households, it’s $225,000; and for all other filers, it’s $150,000. There are other qualifiers that it must fit, and you can check to see if a vehicle you are thinking of purchasing is eligible via an official government website.

    There is also a used EV tax credit of up to $4,000. The requirements for that are similar. There is an income ceiling you can’t exceed, the car’s sale price should be less than $25,000, and the car should be at least two years old.

    Once you buy a car that fits the requirements, all you have to do is file IRS Form 8936 when tax season comes. To complete that form, you’ll need your vehicle’s vehicle identification number, a unique 17-character code that you can find on your car’s registration card.

    The final and most commonly used EV tax credit, Reichmuth says, is the leasing tax credit, also worth up to $7,500, and has looser restrictions on what cars qualify for it. This one is actually a commercial clean vehicle credit that is claimed by the leasing company, not the consumer. Instead, it’s translated to lower costs for consumers. So you get the financial benefit without having to worry about tax returns. There are many dealerships still leasing electric vehicles at cheap prices as they try to get empty stock before the credit goes into place and demand drops, Reichmuth said.

    There are still state-level incentives

    The federal tax credit may be going away, but there are a variety of state and regional incentives that can make electric vehicle purchases easier. There are online databases you can use to search for which incentives are offered in your state.

    Reichmuth also believes that we will see more state-level incentives pop up now that the federal government takes a step back. For example, prior to the federal EV tax credit, California had its own state-level tax incentive for EV customers. Reichmuth foresees that program coming back in some form.

    Ece Yildirim

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