Tesla is now distinguishing its cars between battery suppliers in order for people who are eligible for the tax credit to get it.

Electric vehicle manufacturers in the US are still adapting to the increasingly more stringent rules of the $7,500 federal tax credit for electric vehicles.

The increased requirements for more battery material and component sourcing have shuffled the eligibility of some vehicles, and for Tesla vehicles, it can change depending on the trim.

We recently noted that Tesla managed to get its Model 3 Long Range to get access to the full tax credit. Prior to that, its generally more expensive Performance variant would cost less due to access to the tax credit.

Now, Tesla has come up with an interesting solution to optimize the use of the cells so that more people can get access to the credit.

On its inventory page, Tesla has now added a new toggle for ‘Tax Credit Eligible Vehicles’:

What this toggle does is distinguish vehicles with Panasonic cells, which are eligible for the tax credit, rather LG cells, which are not.

This makes sense because the vehicle and the buyer need to be eligible. The eligibility criteria for buyers are $150,000 in individual income or $300,000 for dual filers.

If you don’t fit those criteria, it makes sense to get a car that doesn’t have those cells since you won’t get the credit anyway.

Electrek’s Take

This is a great idea to optimize access to the tax credit. However, it leaves people who are not eligible with a choice because, technically, the Panasonic cells are a little more desirable even without the credit.

They are known to charge a little faster than the LG cells.

It’s not a huge difference, but it’s something that people should at least know about before buying.

At its first Investor Day on Thursday, Rivian gave several insights into the EV maker’s future. CEO RJ Scaringe explained how Rivian’s software-defined EVs, built from the ground up, and other in-house tech are evolving for its next-gen vehicles.

Check out the latest from Rivian’s 2024 Investor Day below.

The next growth stage

Rivian held its first Investor Day on Thursday. In a Tesla-like presentation, Scaringe outlined Rivian’s roadmap to profitability.

A Rivian is not just any other vehicle. Rivian’s Adventure Vehicles were built from day one to improve over time. “On day 300, it’s a better vehicle,” Rivian’s CEO said during the event.

Perhaps, more importantly, Rivian is learning to build them at a “significantly” lower cost, passing the savings onto buyers.

After building an authentic luxury EV brand, Rivian is making its vehicles more accessible. Rivian shut down its Normal, IL plant in April to improve efficiency. Scaringe said the updates and supplier negotiations have resulted in “significant cost improvements.”

The company cut out 100 steps from its battery-making process, over 50 components from the body shop, and 500 parts from the design.

Its focus on a scalable, flexible platform, built from the ground up, is paving the way for its future EVs.

Rivian outlines R2, future plans during 2024 Investor Day

Rivian introduced its smaller, cheaper R2 electric vehicle in March. Starting at $45,000, Rivian’s R2 is nearly half the cost of the R1S and R1T models.

After scoring over 68,000 reservations in less than 24 hours, Rivian’s R2 is expected to significantly expand its market.

Rivian’s R1S is already one of the top-selling EVs. Through the first three months of 2024, Rivian’s R1S was the fourth top-selling EV in the US, behind only Tesla’s Model Y, Model 3, and Ford’s Mustang Mach-E.

According to Scaringe, it’s also the top-selling large vehicle in California, electric or gas. The tech and features driving demand will translate to a lower price point in the R2, R3, and beyond.

Rivian is consolidating ECUs, harness length, and electrical parts to cut costs. In addition to supplier negotiations and more efficient manufacturing, Rivian is confident R2 will help drive profits.

Rivian plans to begin R2 production in Normal in early 2026. Although initially Rivian planned to build R2 at its new GA plant, the move will help save $2.25 billion. More importantly, it will help get R2 to market earlier.

The new partnership with Volkswagen shows the flexibility of Rivian’s platform. Rivian’s head of software, Wassym Bensaid, said the platform can be scaled up or down for more variants.

Bensaid explained how Rivian is focused on getting its software and hardware into more EVs globally. With software at the heart, Rivian’s vehicles will continue improving over time.

Since launching, Rivian has rolled out more than 30 OTA updates, adding over 500 features. It continues to take feedback to add new features like Snow Mode and Launch Mode.

Rivian’s platform enables continuous improvement and can be used for new functions, like autonomy. Using AI and machine learning, the software constantly takes in information, analyzes it, and improves via OTA updates.

Scaringe explained how Rivian’s new Enduro and Ascend drive units, built in-house, are driving down costs while improving performance.

The new Ascend motor is paving the way for future improvements for the R2 and further generation vehicles.

Maximus, or “Enduro Gen 2,” the drive R2 and R3 drive units, is focused on cost savings with less labor and parts. The side-mounted inverter optimizes packaging.

Rivian has also significantly reduced the number of parts to support lower costs. For example, the R2 has 65% fewer parts than the R1S.

Despite its cheaper price point, the EV maker promises that R2 will still have the essence of a Rivian.

Check back for more updates from Rivian’s 2024 Investor Day.

A new report states that the European Union has slightly tweaked its proposed tariffs on imported EVs from certain Chinese automakers after those companies divulged more details of their businesses. The tariff cuts are marginal but could offer a shred of hope that the EU is still willing to negotiate said duties before they are imposed next week.

Another week, another chapter in the ongoing bluster of a potential trade war following proposed tariffs by the EU on Chinese-built EVs entering the region.

You probably know the backstory by now. The EU Commission opened an anti-subsidy probe into Chinese EV imports, deeming them unfair in competition, threatened new tariffs, the US imposed tariffs of its own quadrupled to 100%, etc.

Last we reported, Canada had joined the fracas, mulling tariffs on Chinese EVs to align with its US and EU trade partners. Meanwhile, China’s Ministry of Commerce had criticized the EU Commission’s anti-subsidy probing, claiming the requested details from foreign automakers were “unprecedented” and compared the probe to spy-like levels of inquisition.

Earlier this month, China’s Ministry of Commerce met in Beijing with several automakers subject to the EU probe, including state-owned SAIC and BYD. The meeting also included European automakers like BMW, Volkswagen, and Porsche, who have tried to help find a solution to avoid the Chinese government’s threats to “adopt firm countermeasures” and raise a provisional tariff on imported gasoline cars from the EU.

In a recent report, the EU has eased its proposed tariffs for some Chinese EV automakers, but only by mere percentage points.

EU reduces proposed tariffs for SAIC and Geely

According to a recent Bloomberg report, the EU has reduced some tariffs on Chinese EVs after receiving more information from automakers as part of its anti-subsidy probe. The news comes from someone familiar with the matter who spoke under the condition of maintaining anonymity.

Per the report, the following Chinese automakers will see reduced duties on EVs imported into the European market:

• SAIC: 37.6% (Previously 38.1%)
• Geely Automobile Holding: 19.9% (Previously 20%)

As you can see, the reduced tariff percentages are marginal but better than nothing, we suppose. The revised proposed tariffs will add to the existing 10% duty in the EU and apply to the other Chinese automakers—those who cooperated with the anti-subsidy and those who didn’t. Those proposed tariffs are an additional 20.8% (weight average duty) and 37.6% levy, respectively.

Rising EV automaker Build Your Dreams (BYD) was also mentioned in the EU tariff reduction report but will see no change to its proposed duties, which will be 17.4% if and when those tariffs take effect next.

Both China and the EU are reportedly still in talks at the negotiating table, and it appears the former is now settling for a bartered compromise rather than a complete abolishment of the new tariffs. We will keep a close watch on this ongoing story as the EU’s proposed tariffs are scheduled to initially go into effect on July 4 before definitive duties kick in this fall.