Tesla releases self-serving warning about ‘likely’ reduced tax credit on its EVs next year
Tesla released a vague warning about the potential for the $7,500 tax credit to be reduced on some of its electric vehicles starting next year.
Earlier this year, Tesla buyers regained access to the $7,500 federal tax credit for electric vehicles after losing it for years due to the 200,000-delivery limit per manufacturer.
It was due to a reform of the tax credit that removed the limit, but it also added new price limit and material sourcing restriction on the electric vehicles to be eligible.
All Model Ys have been eligible, all Model 3s except for the base version because it had Chinese battery cells, which makes it eligible to only half the credit, and Model S and Model X have been ineligible because of their high starting price.
Last month, Tesla surprised us by announcing that even the base Model 3 would now get the full tax credit.
Now Tesla warns that some models will “likely” see their federal tax credit reduced starting next year.
Tesla wrote in an email to owners today:
The $7,500 federal tax credit will likely decrease after December 31, 2023 for some models. New Model 3 and Model Y vehicles delivered by December 31, 2023 still qualify for the full credit.
The automaker also added this notice on its website:
Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500. Reductions likely after Dec 31.
In 2024, there are a few things that change for the electric vehicle federal tax credit. It is going to be available at the dealership rather than through a tax rebate.
The requirement for critical minerals in the battery having to been either recycled in the U.S. or extracted or processed there (or in any country that has a free trade agreement with the US) will go up from 40% to 50% of the materials.
Similarly, the battery component requirement goes up from 50 to 60% of components needing to be manufactured in the US or in any country that has a free trade agreement with the US.
If an electric vehicle doesn’t fulfill one of those requirements, buyers only have access to half of the credit ($3,750).
Electrek’s Take
Tesla seems to be intentionally vague here and that’s self-serving. As far as buyers know, it could be any Tesla model that could lose the full credit, and that creates some urgency to buy.
We can’t help with clarity here since we don’t even know how Tesla gained the full tax credit on the base Model 3.
My guess would be that whatever happened there is going to be reversed and likely only the base Model 3 is going to be affected, but that’s just a guess.
Your guesses are welcomed in the comment section below.
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Subaru today launched its compact AWD SUV at an event in New York City. With 300 miles of range, NACS charge port, a speedy 0-60 time of under 5 seconds, you could say that this is Subaru’s first modern EV, no offense to the rebadged Toyota BZ/Solterra…
The exterior looks a bit like a $100K Lotus Eletre with an off road flair. Uncharted will compete with Volvo’s EX30 Rivian’s R2S and other AWD EVs that might not be as rugged like the VW ID.4, Hyundai Kona and even the Chevy Equinox. Subaru’s lighting signature, shared with the 2026 Solterra and Trailseeker, along with its aggressive, rugged off-road styling will set it apart from the crowd.
It features new 18- or 20-inch wheel designs, as well as a high-contrast, available two-tone roof on Uncharted GT for enhanced curb appeal. At the rear, the sleek combination lamps, black badging, high beltline, and seamless rear design, complemented by a silver-painted lower rear fascia, add to the visual presence of the Uncharted. Low-profile roof rails on all-wheel-drive models add more options for carrying gear.
A NACS charge port with speeds up to 150 kW ensures convenient and fast charging options at more than 15,000 Tesla Supercharger stations nationwide. Even in cold weather conditions, the Uncharted can recharge its battery from 10% to 80% in nearly 30 minutes thanks to an onboard battery preconditioning system. At home, you can charge up to 11KW level 2 charging.
The interior is modern Subaru with rugged textile around a big 14-inch CarPlay/Android Auto screen experience (pictured below). There are 2 wireless phone chargers up front and 2 USB-C chargers in the rear.
All trim levels of the Subaru Uncharted are equipped with an All-Weather Package, including heated front seats, heated exterior mirrors, and windshield wiper de-icer; power rear gate; interior ambient lighting; and DriverFocus® Distraction Mitigation System. The Uncharted Sport adds X-MODE® Dual-Mode with Grip Control, heated steering wheel, StarTex® water-repellent upholstery, panoramic view monitor, and more. Uncharted GT will include a panoramic moonroof with motorized shade, 20-inch wheels, ventilated front seats, Harman Kardon® premium audio system, smart rearview mirror, and more.
The Uncharted battery is just under 75kWh, around the same size as a long range Tesla Model Y and it will get close to 300 miles in its FWD model (boo). Uncharted Sport and GT models are equipped with standard Subaru Symmetrical All-Wheel Drive with X-MODE, an anticipated range of up to 290 miles, and 338 horsepower which will appeal to more Subaru customers.
Full gallery below:
Electrek’s take
While Subaru maintains its close relationship with Toyota in EVs, and this is a C-HR rebadge, the Uncharted breaks some new ground. I love the NACS port, I love the range and the acceleration. Subaru’s fans might finally have an EV they can upgrade their ICE vehicle for.
That’s one thing that might be concerning for Subaru in the EV age: In ICE vehicles, Subaru makes one of the best, complicated AWD systems. However with EVs, AWD is almost table stakes at this point. Subaru will have to continue to innovate in the off road capable small SUV segment if it hopes to compete with all of the EV encombants. At this point, Subaru is a suspension and branding mod for Toyota.
The Uncharted certainly seems to be a good start.
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Environment
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Lucid Motors’ (LCID) shares soared over 50% after the company secured a multi-hundred-million dollar investment from Uber to deploy robotaxis. So, why did Lucid just announce plans for a reverse stock split?
Why did Lucid announce a reverse stock split?
Lucid and Uber announced a new alliance on Thursday to deploy 20,000 electric robotaxis over the next six years.
The new robotaxi service, set to launch next year, will combine Lucid’s advanced software-defined EV platform with Nuro’s Level 4 self-driving tech.
As part of the new alliance, Uber plans to make “multi-hundred-million-dollar investments” in Lucid and Nuro. The first autonomous prototype is already in operation on a closed track at Nuro’s facility in Las Vegas.
Lucid’s interim CEO, Marc Winterhoff, said, “This investment from Uber further validates Lucid’s fully redundant zonal architecture and highly capable platform as ideal for autonomous vehicles.” Winteroff claimed that the new alliance “is the start of our path to extend our innovation and technology leadership into this multi-trillion-dollar market.”
The Lucid Gravity boasts an impressive EPA-estimated range of 450 miles. Its electric sedan, the Lucid Air, just broke a Guinness World Record after traveling 749 miles (1,205 km) on a single charge.
Lucid’s partnership with Uber sent share prices surging over 50% during trading hours on Thursday. In a separate filing with the SEC today, Lucid announced plans to initiate a 1-for-10 reverse stock split.
The split won’t affect shareholder ownership, except in cases where fractional shares are created. In that case, shareholders will receive a cash payment.
Lucid said it believes the reverse stock split “will allow the company’s common stock to be more attractive to a broader range of investors and other market participants.”
A vote of confidence
During an interview with Bloomberg on Thursday, Winterhoff explained that a portion of the $300 million investment from Uber will be used to develop the self-driving tech with Nuro. Winterhoff added that Lucid’s surging share price was “a vote of confidence.”
According to Winterhoff, the reverse stock split is not due to Lucid’s fear of being delisted, but rather to attract larger investors.
It was also more of a “technical” strategy to reduce volatility and help Lucid participate in the broader stock market.
Many institutional investors avoid stocks priced below $5 due to the higher risk and price swings. The proposed stock split still requires shareholder approval, which will be voted on at an upcoming special stockholders’ meeting.
After that, Lucid’s Board of Directors will determine whether it’s still in the best interest of the company and its stockholders to proceed.
Lucid’s stock rose over 36% on Thursday, closing at $3.12 per share. Although shares of LCID are up just slightly (+2%), they are now up year-to-date. However, they are still down 18% over the past year and nearly 95% from their all-time high of over $58 a share in February 2021.
Last week, after meeting with Lucid’s CFO, Taoufiq Boussaid, Benchmark analyst Mickey Legg set a target share price of $5.00, which was subsequently raised to $7.00 following the announcement of the Uber partnership.
Legg wrote a note to investors, “After meeting with LCID’s CFO Taoufiq Boussaid on Tuesday and reviewing 2Q production and deliveries, we remain confident in the company’s path to scale.”
Lucid delivered a record 3,309 vehicles in Q2, its seventh straight quarter with higher deliveries. The company aims to produce 20,000 vehicles this year, more than double the roughly 9,000 it made in 2024.
After ending the first quarter with $5.76 billion in liquidity, Lucid said that it has sufficient funding to last until the second half of 2026, when it plans to launch its more affordable midsize EV platform. The first two models will be a midsize SUV and sedan, starting at about $50,000.
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