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Hyundai has been on a roll in the US as the automaker embraces the industry’s transition to electric vehicles. The automaker says EV leases are climbing as buyers take advantage of the tax credit provided by the Inflation Reduction Act (IRA).

After the new IRA guidelines took effect in April, electric models with assembly or battery minerals sourced outside the US or its free trade partners lost eligibility – including Hyundai and Kia models.

After a breakout year led by the best-selling non-American EVs in the IONIQ 5 and EV6, the update threatened Hyundai’s strategy.

Hyundai has been vocal about its opposition to the restrictions after breaking ground on its first dedicated EV plant in the US in October that won’t come online until 2025.

However, a recent update from the IRS allows foreign-assembly models to bypass the law if the vehicles are leased rather than purchased outright. This is because leases are interpreted as commercial business in the law and, as a result, are eligible for the $7,500 tax credit.

Most automakers, including Ford, Hyundai, Kia, Mercedes, and Volkswagen, announced they would pass the lease incentives on to customers to drive down the cost of driving an EV and boost sales.

Hyundai-EV-leases
Hyundai IONIQ 5 (source: Hyundai)

Hyundai sees growth in EV leases

Speaking with Automotive News, the CEO of Hyundai and Genesis North America (and COO of Hyundai Motor Company), Jose Muñoz, explained how the IRA bill was affecting business.

Muñoz said, “First and foremost, we really embrace the US policy of moving to electrification,” adding:

But obviously, we were counting on certain programs when we did our calculations to invest in our battery EV plant in Savannah and in a U.S. battery plant.

Hyundai North America’s leader says the company is “still committed to electrification” with 17 electric models by 2030 (11 from Hyundai and six from Genesis) while doubling down on its investments.

Hyundai-Genesis-US-EV
2023 Genesis Electrified GV70 SUV (Source: Genesis)

Muñoz says the company is “happy to see that the IRA is still allowing consumers to benefit from the lease side of the business” regarding the $7,500 tax credit eligibility. He explained the company is more focused on EV leases and:

Since the year started, we’ve increased from 5 percent to about 30 percent lease.

If the US wants to hit its goal of 67% EV share by 2032, Muñoz explains, “the more accessible we can be to everybody, the better.”

Perhaps more importantly, he added that the US needs other OEMs like Hyundai to reach over 11 million EV sales (67% of a 17 million market) by its target.

Hyundai continues building its US EV supply chain after revealing a new EV battery cell manufacturing plant in Savannah, Georgia, on Friday with LG Energy Solution, where the company’s Metaplant America is being built.

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Wheel-E Podcast: Micromobility Europe 2024, 80 MPH army e-bike, more

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Wheel-E Podcast: Micromobility Europe 2024, 80 MPH army e-bike, more

This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes all the cool stuff we saw at Micromobility Europe 2024, new low-cost Lectric XP Lite 2.0, an 80 MPH military e-bike, how Paris cleaned its air by kicking out cars, and more.

The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the Wheel-E podcast today:

Here’s the live stream for today’s episode starting at 12:00 p.m. ET (or the video after 1:00 p.m. ET):

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BYD cuts prices on its best-selling Atto 3 electric SUV in Australia to rival Tesla

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BYD cuts prices on its best-selling Atto 3 electric SUV in Australia to rival Tesla

A new price war is fueling EV sales in Australia as the competition heats up to gain overseas market share. BYD launched its new Atto 3 electric SUV in Australia with several updates, including lower prices, as it looks to chip away at Tesla’s lead.

Chasing Tesla’s lead

Last month, electric vehicle sales in Australia were boosted by price cuts from leaders like Tesla and BYD.

According to the latest data from the Federal Chamber of Automotive Industries (FCAI), 8,974 fully electric vehicles were sold in Australia last month. That number is up from the 6,194 EVs sold in April 2024 and 8,124 handed over last May.

The growth was enough for EVs to capture 8.1% of all vehicles sold in Australia last month, up from 7.7% in May 2023.

Tesla still leads with Model 3 sales reaching 1,958, surpassing its best-selling Model Y (1,609). Tesla has now sold 8,823 Model 3s and 9,610 Model Ys in Australia year-to-date.

Although Tesla has maintained a market share of over 60%, BYD is chipping away at its lead.

With 3,567 EVs sold in May, Tesla held a 40% share. BYD’s new Seal was the third best-selling EV last month, with 1,002 units sold, while the Atto 3 was fourth with 737. The growth bumped up BYD’s market share to 18%.

BYD-prices-Australia
BYD SEAL (Source: BYD)

BYD launches new Atto 3 with lower prices in Australia

The Atto 3 is still BYD’s best-selling EV in 2024, with 3,366 models sold, while the Seal is a close second at 3,306.

BYD believes 2024 will be a pivotal year as it rolls out new models and aims to take leadership in Australia’s EV market.

Following the new Seal, BYD launched a “major upgrade” for the Atto 3 Friday. BYD’s new Atto 3 features a 15.6″ screen (up from 12.8″). In addition to new features like added camping mode and karaoke, the new Atto 3 features lower prices.

The standard range Atto 3 now starts at AUD 44,449, while the Extended Range costs AUD 47,449 (before on-road costs). BYD’s new Atto 3 prices are down AUD 3,562 and the cheapest they have been so far, according to Australia’s Drive.

Powered by a 50 kWh battery and 150 kW electric motor, the new standard Atto 3 features up to 214 miles (345 km) WLTP range. The Long-Range model, with a 60 kWh battery, can travel up to 261 miles (420 km).

BYD Atto 3 vs Tesla Model Y Price
(AUD)
Range
(WLTP)
BYD Atto 3 Standard Range $44,449 214 miles (345 km)
BYD Atto 3 Long Range $47,449 261 miles (420 km)
Tesla Model Y RWD $55,900 283 miles (455 km)
Tesla Model Y AWD Long Range $69,900 331 miles (533 km)
Tesla Model Y AWD Performance $82,900 319 miles (514 km)
BYD Atto 3 vs Tesla Model Y prices and range in Australia

Meanwhile, Tesla’s RWD Model Y starts at AUD 55,900, with up to 283 miles (455 km) WLTP range. The Long-Range AWD model starts at AUD 69,900 with up to 331 miles (533 km) WLTP range.

Which one are you buying? The new BYD Atto 3? Or the Tesla Model Y? Let us know in the comments below.

Source: Drive, BYD

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Tesla produces 1,300 Cybertrucks per week, moving from Foundations Series next quarter

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Tesla produces 1,300 Cybertrucks per week, moving from Foundations Series next quarter

Tesla confirmed that it managed to produce 1,300 Cybertrucks in a week and it is moving from its Foundations Series production run next quarter.

We haven’t had a lot of updates from Tesla about the Cybertruck production ramp.

Actually, the best one we got was from a recall, which confirmed that Tesla had produced just short of 4,000 Cybertrucks as of April.

Shortly after, Tesla confirmed that it achieved a production of 1,000 Cybertruck in a week in April.

We haven’t seen an update since, but we noted that Tesla seemed to be ramping up production based on sightings at Gigafactory Texas.

Yesterday, at Tesla’s annual shareholder meeting, Tesla released a bit more information about the Cybertruck production ramp:

  • Elon Musk said Tesla recently produced a peak of 1,300 Cybertrucks in a week
  • Elon Musk said Tesla would move away from production Foundation Series Cybertrucks in Q3
  • Tesla said it aims to be at 2,500 Cybertrucks per week by the end of the year

This would currently put Tesla at a capacity of 65,000 Cybertrucks per year and looking to exist the year with an annual capacity of 125,000 units.

Tesla has previously stated that it aims to have a full capacity of 250,000 Cybertrucks, but it plans to achieve that next year.

Moving away from the Foundation Series would presumably mean that Tesla is going to stop bundling all options together for the Dual Motor and Cyberbeast. The automaker might also release new trims – though those weren’t expected until next year.

Electrek’s Take

The Foundation Series bundles push the Cybertruck price to $100,000. Despite the hype around the Cybertruck, there’s a limited market for trucks at over $100,000.

Moving away from the Foundation Series bundles should reduce the price a bit as the dual motor is actually supposed to start at $80,000.

It will also give us more clarity into the option pricing.

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