TN will triple its dumb EV tax for inflation, but its gas tax lags inflation by ~5x
Tennessee has started the process of hiking its EV registration fee from $100 to $274 per year and beyond, aiming to continue hiking the fees in perpetuity, further increasing the disproportionately high taxes paid by EVs in the state as compared to gas cars.
We’ve covered many times before how misguided these taxes are, not least of which because they are the result of a cynical lobbying ploy by the oil industry to disadvantage a better transportation method.
Tennessee’s $100 fee was lower than that of many other states, but it still taxed EVs at a much higher rate than a similarly-efficient gas vehicle. For example, a ~140mpg gas car, if it existed, would pay ~$28 in gas taxes in a year if driven 15k miles, but a 140mpge EV, which there are multiple of, used to pay $100 even if it was low mileage. As a flat fee, it also adds a small disincentive for drivers to remain low mileage, which doesn’t help with congestion or road usage.
This year, Tennessee’s EV fee has doubled to $200 – but it’s not stopping there, with the state claiming that it will continue increasing to $274 in 2026, and then continue increasing beyond that along with inflation. Tennessee lawmakers and the Department of Transportation commissioner had asked to raise the fee to $300, which would have tripled the already-disproportionate fees that EVs pay.
But one big issue here is: inflation was not 100% last year, and won’t be 37% in the next two years. These hikes are well beyond inflation, on top of a fee that was already too high per the calculations above.
Not only that, but the gas tax has not been indexed to inflation in Tennessee. In fact, the gas tax has lagged inflation significantly, getting smaller over time in comparison to the value of a dollar. You can see a history of Tennessee gas taxes here, showing that drivers used to pay 7 cents per gallon in 1931, but only pay 26 cents now (plus a “1.4-cent special petroleum fee“). If gas taxes had kept up with inflation since then, they would be $1.42 per gallon – meaning they’re ~5.4x too low, compared to inflation.
But that’s because gas taxes didn’t go up for 50 years in Tennessee, until there was a measly 2 cent bump in 1981. Starting our calculations from that year, gas taxes are a lot closer to keeping up with inflation, but still should be about 20% higher than they currently are – and that’s without accounting for 2023’s inflation or the next few years’ worth which will be captured by this near-tripling of EV fees.
What’s worse, this year’s tax hikes were not well publicized, and many Tennessee EV drivers were left in shock with a doubling of fees from one year to the next.
If this trend keeps, then the gulf between TN’s gas tax and EV tax would continue to increase, becoming more and more unfair to EV drivers who already pay more than if they were driving a similarly-efficient gas vehicle, and much more than the amount of damage they’re doing.
The rationale for Tennessee’s tax is similar to those in other states – Tennessee is laboring under the misguided notion, propagated by Koch/fossil fuel industry propaganda, that electric vehicles don’t pay for roads. But in fact, the vehicles that are doing damage to roads also don’t pay for the damage they’re causing to roads – gas + license taxes only cover ~60% of Tennessee’s road costs, which means that fossil-powered vehicles are freeloading on at least a third of the road budget anyway.
And in actuality, virtually all road damage is done by diesel semi trucks anyway, not gas or electric cars, so road damage has little to do with passenger vehicles. An average EV does tens of thousands of times less damage to roads than a semi truck over the course of the year, so if a $274 fee is considered fair for an EV, then semi trucks should be paying registration fees in the millions of dollars – and if the latter sounds too high, then simple math means one must also acknowledge that the former is too high, if road damage is the main concern.
On top of this, gas taxes certainly don’t pay for the immense damage that burning gasoline causes, which cost society about $4 per gallon burned. The total cost of subsidies to dirty energy in America, a large portion of which goes to gasoline for motor vehicle use, was $760 billion in 2022. Few states even attempt to correct for this subsidy, with only a few having any sort of pollution pricing scheme. So gas vehicles are freeloading on our lungs even moreso than they’re freeloading on the roads.
The real solution, as ever, is to implement a drivetrain-agnostic road fee that takes into account weight and mileage, and another drivetrain-agnostic pollution fee to correct for the damage that each vehicle causes in pollution (these can be added to energy costs, tire costs, etc.). But instead, Tennessee would rather bow to fossil fuel propaganda and attempt to balance its entire road budget by overtaxing the 22,040 EVs in the state instead of implementing a long-term solution that might make gas cars (and diesel trucks) start paying their fair share.
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Electrify America and Audi of America are expanding their EV charging partnership to cover the new 2025 Audi Q6 e-tron.
The all-new 2025 Q6 e-tron is Audi‘s latest addition to the e-tron model line-up, which currently includes the Q4 e-tron and e-tron GT. The Audi Q6 e-tron is expected to arrive this summer and will include one year of free Electrify America charging with Plug&Charge capabilities.
Audi Q6 e-tron owners have a year from the date of purchase to use the free Electrify America charging. Owners can enroll to activate the charging benefit via the myAudi App. Drivers can use the app or in-vehicle navigation to locate nearby charging stations, verify charger availability, and navigate to the charging stations.
Electrify America is the first open DC fast-charging network to enable Plug&Charge technology at all its charging stations. To activate Plug&Charge, drivers just need to enroll their EV in Electrify America’s charging plan.
Read more: VW finally rolls out Plug&Charge on its 2023 ID.4s
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Rivian (RIVN) is off to a strong start in 2025. The company’s sales surged in February, with the R1S breaking into the top five best-selling EVs in the US. The electric SUV is once again a fan favorite.
Rivian R1S was the fifth top-selling EV in February
Rivian is cementing its status as a true luxury EV brand. After delivering over 51,500 vehicles last year, the company is charging into 2025 with strong momentum.
Although Rivian may not share monthly sales figures, new data from Cox Automotive’s February EV Market Monitor reveals a big win.
According to the report, Rivian’s sales jumped 34% from last February, with over 4,000 vehicles sold. The Rivian R1S was the fifth best-selling EV by sales volume, trailing only the Tesla Model Y, Model 3, Ford Mustang Mach-E, and Honda Prologue.
Tesla’s sales dipped 10%, with the Cybertruck (-32.5%) and Model 3 (-17.5%) seeing the biggest drops from last year. The Model Y held up better, slipping just 3.1%.
In total, 95,692 EVs were sold last month. Although that’s down 5.9% from January, it was the highest volume for the month of February, up 10.5% from last year.
| Rank | Model |
| 1 | Tesla Model Y |
| 2 | Tesla Model 3 |
| 3 | Ford Mustang Mach-E |
| 4 | Honda Prologue |
| 5 | Rivian R1S |
Just this week, the Palo Alto Police Department unveiled the first R1S police cruiser, a big milestone as the electric SUV expands into law enforcement.
Rivian expects deliveries to remain about flat this year at around 46,000 to 51,000. However, it’s not because of less demand. The company is shutting down its Normal, IL manufacturing plant in the second half of the year as it prepares to launch the midsize R2.
The company’s CFO, Claire McDonough, confirmed earlier this month that Rivian is “working around the clock” to prepare the facility for R2 production.
We got a sneak peek of it earlier this week as it nears production after CEO RJ Scaringe posted a photo of the R2 body with production dies.
The R2 will open a new market for Rivian, with prices starting at around $45,000, or about half the cost of its current R1S ($77,700) and R1T ( $71,700). Although it will be significantly cheaper, the company promises it won’t be half the vehicle with the “Rivian essence” still included.
After cutting R1S lease prices by over $200 per month in February, the Rivian’s electric SUV may be an even better deal than the Model Y. Will it continue closing the gap this year?
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![The Kia EV2 is real: Here's our first look at the low-cost EV on the road [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Kia-EV2-4.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
Kia is gearing up to launch its smallest, most affordable EV yet. Despite its small size, Kia promises the EV2 has “a big personality” with its latest tech, features, and sleek new design. Here’s our first look at the Kia EV2 after it was spotted in public testing for the first time.
Kia EV2 spotted testing in Korea for the first time
The EV2 is Kia’s upcoming entry-level electric SUV, slated to sit below the EV3. We got our first look at it last month after Kia unveiled the EV2 concept, a preview of the upcoming production model.
It was showcased alongside the EV4 and PV5 as part of Kia’s rapidly expanding EV lineup. Kia wants to offer “EVs for all,” with prices ranging from under $30,000 to upwards of $80,000.
According to Kia, the EV2 is designed to make “electric vehicles truly accessible for everyone.” It features the brand’s updated styling, including its signature vertical daytime running lights (DRLs) and Star Map lightning.
Although it’s Kia’s smallest electric SUV, the EV2s upright stance, wide wheel arches, and rugged bumpers give it a more premium feel, almost like the three-row EV9.
Kia didn’t stop here. With folding second-row seats, you can slide the front seat back as far as possible, providing a comfortable space when parked. Kia says it’s enough to stretch your legs or even “sit on the vehicle’s flat floor to enjoy a meal.”
The entry-level electric SUV will be loaded with advanced software, connectivity, and other tech, including vehicle-to-load (V2L) capabilities to power up electronics or home appliances. With OTA updates, the EV2 will only get smarter and more functional over time.
Ahead of its official launch, the compact electric SUV was spotted in Korea on the road testing for the first time. The video from HealerTV gives us our closest look at the EV2 as it nears production.
Like its other EV concepts, the EV2 will look almost identical to the concept when it arrives in production form. From the side, it almost looks like the Kia Soul with a boxy silhouette. Despite the camouflage, the rear gives the same impression with similar proportions to the concept.
The EV2 will also likely include Kia’s new ccNC infotainment system, which features dual 12.3″ driver display and navigation screens.
Kia plans to launch the EV2 in Europe “and other regions” in 2026. Although prices and specs will be revealed closer to launch, the electric SUV, based on Hyundai’s E-GMP platform, is expected to feature at least 300 miles (605 km) WLTP range.
Kia’s CEO told Autocar it aims to launch the EV2 at around £25,000 ($32,000) in the UK. However, that was in 2023. With battery advancements and more, prices could be even lower now.
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