US Treasury: Rivian, Nissan LEAF, others lose full $7,500 EV tax credit, Tesla base Model 3 cut in half [Update]

Published

2 years ago

April 19, 2023

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Following its delayed but long-anticipated battery guidance pertaining to federal EV tax credits, the US Treasury Department’s requirements are about to kick in, and it’s not great news for all prospective EV buyers. Beginning tomorrow, EVs from major automakers like Volkswagen, Rivian, BMW, and more will no longer qualify for any tax credits at the federal level, while Tesla’s base Model 3 is cut in half.

Update April 19: As alluded to earlier this week, Volkswagen Group has submitted the necessary paperwork with the US Government and the following 2023 ID.4 models now qualify for up to $7,500 in credits:

ID.4 and ID.4 S
ID.4 Pro, ID.4 Pro S, ID.4 Pro S Plus
AWD ID.4 Pro, AWD ID.4 Pro S, AWD ID.4 Pro S Plus

Following a nearly four-month delay, the US Treasury Department shared its guidance earlier this month, outlining what parameters automakers must comply with in terms of battery component assembly and respective materials in order for their EVs to qualify for federal tax credits.

Beginning April 18, EV manufacturers must ensure that battery-critical minerals used in vehicles assembled in North America are also “extracted or processed in the US or any country with which the US has a free trade agreement” or recycled in North America. Like the EV themselves, battery components must also be “manufactured or assembled in North America.”

Each of the two newly enforced qualifying factors account for $3,750 in EV tax credits, combining for the total $7,500. Even before the battery guidance was revealed, several global automakers began scrambling to erect or repurpose US manufacturing facilities to enable local EV production.

Some of those automakers (like Rivian, for instance) are already American-made, while others, like Volkswagen, have had local plants for years. In that sense, we thought it was safe to assume those automaker’s EVs would continue to qualify for federal tax credits.

However, according to the US government, a slew of previously qualifying EVs are about to be cut (at least for now) because of the battery guidance going into effect. Here’s the latest.

Battery guidance puts huge hit on EV tax credits in US

We’ve been aware of the battery guidance from the US Treasury for a few weeks now and have known those requirements will take effect on April 18. However, automakers aren’t generally super open about how and where they source all their materials, so it remained unclear which EVs may or may not still qualify for the tax credit.

Some automakers like GM, for example, have come out publicly and shared that all their EVs will still qualify for the full $7,500 EV tax credit. Others have remained quiet, leaving us guessing. Today, the government has made things a lot clearer… and more disheartening for those consumers looking to purchase a new Rivian or Nissan LEAF with hopes of getting a $7,500 kickback.

This morning, the US Treasury stated the following models will lose their EV tax credit status beginning tomorrow. Here’s the latest wave of EVs being cut:

Audi (VW Group)
BMW
Genesis (Hyundai Motor Group)
Rivian
Volkswagen
Volvo

Additionally, the US government states that the Standard Range RWD Tesla Model 3 will now only qualify for up to $3,750 in federal EV tax credits. Other trims of the Model 3 and the Tesla Model Y will still qualify for up to the full $7,500 EV tax credit.

Now that they have been cut, that isn’t to say those EVs can’t once again qualify for federal EV tax credits. Volkswagen Group has already come out and said it is “fairly optimistic” that the ID.4 will qualify. The automaker is merely awaiting the proper documentation from a supplier.

Additional automakers like Stellantis expect their electric models to qualify for at least half of the tax credit, and the Treasury has confirmed as much.

Hyundai Motor Group expressed commitment to long term EV plans as it is currently constructing a new US production facility to eventually produce vehicles that will once again qualify for EV tax credits.

This story is ongoing and the list of qualifying EVs should continue to evolve in the coming weeks as the battery guidance kicks in and automakers submit the necessary paperwork (or not) to try and requalify. As always, we will continue to keep this list up to date for you.

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Commercial financing for EVs is way different than you think | Quick Charge

Published

1 hour ago

April 22, 2025

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Commercial financing for EVs is way different than you think | Quick Charge

No matter how badly a fleet wants to electrify their operations and take advantage of reduced fuel costs and TCO, the fact remains that there are substantial up-front obstacles to commercial EV adoption … or are there? We’ve got fleet financing expert Guy O’Brien here to help walk us through it on today’s fiscally responsible episode of Quick Charge!

This conversation was motivated by the recent uncertainty surrounding EVs and EV infrastructure at the Federal level, and how that turmoil is leading some to believe they should wait to electrify. The truth? There’s never been a better time to make the switch!

Source Links

Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple Podcasts, Spotify, TuneIn, and our RSS feed for Overcast and other podcast players.

New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.

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Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.

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Vermont sees an explosive 41% rise in EV adoption in just a year

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2 hours ago

April 22, 2025

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Vermont sees an explosive 41% rise in EV adoption in just a year

Vermont EV adoption — Photo: Drive Electric Vermont

Vermont’s EV adoption has surged by an impressive 41% over the past year, with nearly 18,000 EVs now registered statewide.

According to data from Drive Electric Vermont and the Vermont Agency of Natural Resources, 17,939 EVs were registered as of January 2025, increasing by 5,185 vehicles. Notably, over 12% of all new cars registered last year in Vermont had a plug. Additionally, used EVs are gaining popularity, accounting for about 15% of new EV registrations.

To put it in perspective, Vermont took six years to register its first 5,000 EVs – and the last 5,000 were added in just the previous year.

Rapid growth, expanding infrastructure

In just two years, Vermont has doubled its fleet of EVs, underscoring residents’ enthusiasm for electric driving. To support this surge, the state now boasts 459 public EV chargers, including 92 DC fast chargers.

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The EV mix in Vermont is leaning increasingly toward BEVs, which represent 60% of the state’s EV fleet. The remaining 40% consists of PHEVs, offering flexible fuel options for drivers.

Top EV models in Vermont

Vermont’s favorite EVs in late 2024 included the Hyundai Ioniq 5, Nissan Ariya, Toyota RAV4 Prime PHEV, Tesla Model Y, and the Ford F-150 Lightning. These vehicles have appealed to Vermont drivers looking for reliability, performance, and practical features that work well in Vermont’s climate.

Leading the US in reducing emissions

This strong adoption of EVs earned Vermont the top ranking from the Natural Resources Defense Council for reducing greenhouse gas emissions in transportation in 2023. “It’s only getting easier for Vermonters to drive electric,” noted Michele Boomhower, Vermont’s Department of Transportation director. She emphasized the growing variety of EV models, including electric trucks and SUVs with essential features like all-wheel drive, crucial for Vermont’s climate and terrain.

Local dealerships boost EV accessibility

Nucar Automall, an auto dealer in St. Albans, is a great example of local support driving this trend. With help from Efficiency Vermont’s EV dealer incentives – receiving $25,000 through the EV Readiness Incentive program – it recently installed 15 EV chargers for new buyers and existing drivers to use.

“Having these chargers on the lot makes it easier for customers to see just how simple charging an EV can be,” said Ryan Ortiz, general manager at Nucar Automall. Ortiz also pointed out the growing affordability of EVs, thanks to more models becoming available and an increase in pre-owned EVs coming off leases.

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Here are all the crazy claims Elon Musk made about Tesla self-driving today

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2 hours ago

April 22, 2025

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Here are all the crazy claims Elon Musk made about Tesla self-driving today

Elon Musk said Tesla’s self-driving will start contributing to the company’s profits… wait for it… “next year” with “millions of Tesla robotaxis in operation during the second half of the year.”

The claim has become a running joke, as he has made it for the last decade.

During Tesla’s conference call following the release of its Q1 2025 financial results, Musk updated shareholders about Tesla’s self-driving plans, which he again presented as critical to the company’s future.

He made a series of claims, mainly updating timelines about Tesla’s self-driving efforts.

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Here are the main comments:

The CEO reiterated that Tesla will launch its paid autonomous ride-sharing service in Austin in June.
- He did clarify that the fleet will consist of Model Y vehicles and not the new Cybercab.
- Musk also confirmed that Tesla is currently training a fleet specifically for Austin.
- As we previously reported, this internal ride-hailing fleet operating in a geo-fenced with teleoperation assist is a big change from Tesla’s approach.
- Musk said “10 to 20 vehicles” on day one.
Musk said that Tesla’s self-driving will start contributing positively to the company financially in the middle of next year, and “There will be millions of Teslas operating autonomously in the second half of next year.”
- Musk has literally said something similar every year for the past decade and therefore, it’s hard to take him seriously.
The CEO claimed that Tesla would get “a 90-something percentage market share” in the autonomous market.
- Musk again claimed that no one else is getting close to Tesla’s capacity, and he criticized Waymo for being too expensive.
Musk is “confident” that the first Model Y will drive itself from the factory to a customer’s home later this year.
The CEO said that he is confident that Tesla will deliver “unsupervised full self-driving” in consumer vehicles by the end of the year.

Despite Tesla missing earnings expectations by a wide margin, the company’s stock rose 4% in after-hours trading following Musk’s comments, indicating that shareholders still believe Musk’s self-driving predictions, despite his predictions having been incorrect for almost a decade.

Electrek’s Take

The first point I believe will happen. Tesla needs it to happen. It badly needs a win on the self-driving front.

However, as we previously explained, while Tesla will claim a win in June, it will be with a limited geo-fenced and teleoperation-assisted system that won’t scale to customer vehicles, which is what has been promised for years.

Tesla was even asked how it plans to launch this in Austin in June, when FSD in consumer vehicles currently requires frequent interventions from drivers, and Ashok, Tesla’s head of autonomous driving, admitted his team is currently focused on solving the intervention specifically related to driving in Austin.

With training on specific Austin routes and using teleoperations, Tesla can make that happen, but the road between that and unsupervised self-driving in consumer vehicles and “million of Tesla robotaxis” in the second of next year is a long one.

Basically, other than the first point, I believe Tesla will not achieve any of the other on anything close to the timelines announced by Musk today.

I’m willing to take bets on that.

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