REE’s P7-C electric truck receives CARB credits, eligible for over $100k in incentives
EV technology startup REE Automotive announced its latest milestone today, having been awarded two separate CARB certifications for its P7-C chassis cab. Now sales eligible in California, “Powered by REE” EVs are eligible for huge incentives, with other CARB-friendly states expected to follow suit.
Today’s news confirms expected results from REE Automotive ($REE) as its “x by wire” P7-C EV continues its journey toward scaled commercial deployment.
A mere two years ago at CES, the EV startup first introduced its modular P7 platform, designed with fleets in mind – particularly delivery operators in the US. Since then, we’ve seen REE unveil two all-electric variants – a novel Class 3 box truck called the P7-B and an additional chassis cab called the P7-C (seen above).
Ahead of production, REE has reported tens of millions in binding orders from commercial customers. It recently wooed more potential suitors when it showcased a demo EV during Work Truck Week earlier this month.
In January, we reported that REE’s P7-C had achieved certification from both the Federal Motor Vehicle Safety Standards (FMVSS) and EPA ahead of initial deliveries, the first full steer-by-wire, brake-by-wire, and drive-by-wire vehicle in the US to do so.
At the time, REE shared that the electric chassis cab is eligible for the IRS’ Commercial Clean Vehicle Tax Credit in the US, enabling a tax credit of up to $40,000 per vehicle. Furthermore, REE said it was in the process of obtaining eligibility for various state incentives, including the California Air Resources Board (CARB), offering the potential to bolster those incentives upwards of $100,000 per vehicle.
Today, REE has confirmed that the P7-C has been awarded eligibility for two separate CARB certifications, further incentivizing commercial fleets to purchase.
REE now qualifies for CARB credits in CA, more to come
Per REE, its Class 4 P7-C EV has officially been made eligible for two certifications from CARB – a Phase 2 Greenhouse Gas (GHG) certification covering the complete vehicle and the Zero Emission Powertrain (ZEP) certification.
CARB certification is a vital factor in enabling state incentives to commercial customers. Although the certificates originate and are awarded in California, several other states follow The Golden State’s lead in policy and honor the same incentives to promote electrification and sustainability. REE co-founder and CEO Daniel Barel spoke about the P7-C’s latest milestone:
Being CARB certified unlocks many doors for us and for our customers as we can now sell in California, and I am excited for our California dealers as they start to receive their Powered by REE trucks. This is an important milestone since now Powered by REE vehicles can receive more than $100,000 incentive funding which makes it even easier for fleets to electrify. We believe that this cost savings, combined with our REEcorner and x-by-wire technology’s ability to lower total cost of ownership, will boost even further the strong demand we see for our P7 lineup.
Combined with incentives in place at the federal level, CARB certification now gives REE EVs the potential to over $100,000 per vehicle – a huge selling point for fleets who are looking to purchase several commercial EVs at a time as they transition to zero emissions.
Looking ahead, REE says several other states have indicated plans to follow California’s lead in adopting CARB’s Advanced Clean Truck Regulation, a sales requirement, alongside ZEP certification to sell the EVs locally and offer such large incentives.
REE says it will continue to deliver initial EV builds to early customers through its growing dealer network while continuing to take its all-electric show on the road with its demo trucks.
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EV sales kept up their momentum in December 2024, with incentives playing a big role, according to the latest Cox Automotive’s Kelley Blue Book report.
December’s strong EV sales saw an average transaction price (ATP) of $55,544, which helped push the industry-wide ATP higher, according to Kelley Blue Book. The December ATP for an EV was higher year-over-year by 0.8%, slightly below the industry average, and higher month-over-month by 1.1%. Tesla ATPs were higher year-over-year by 10.5%.
Incentives for EVs remained elevated in December, although they were slightly lower month-over-month at 14.3% of ATP, down from 14.7% in November.
EV incentives were higher by an impressive 41% year-over-year and have been above 12% of ATP for six consecutive months. Strong sales incentives, which averaged more than $6,700 per sale in 2024, were one reason EV sales surpassed 1.3 million units last year, according to Cox Automotive, a new record for volume and share.
(My colleague Jameson Dow reported yesterday, “In 2024, the world sold 3.5 million more EVs than it did in the previous year … This increase is larger than the 3.2 million increase in EV sales from the previous year – meaning that EV sales aren’t just up, but that the rate of growth is itself increasing.”)
Kelley Blue Book estimated that in December, approximately 84,000 vehicles – or 5.6% of total sales – transacted at prices higher than $80,000 – the highest volume ever. KBB lumps gas cars and EVs together into this luxury vehicle category, so this is where Tesla Cybertruck is slotted.
However, Tesla bundles sales figures of Cybertruck with Model S, Model X, and Tesla Semi(!) into a category it calls “other models,” so we don’t know for sure exactly how many Cybertrucks Tesla sold in Q4, much less in December. However, Electrek‘s Fred Lambert estimates between 9,000 and 12,000 Cybertrucks were sold in Q4, and that’s not a stellar sales figure.
What will January bring when it comes to EV ATPs? What about tax credits? Check back in a month and I’ll fill you in.
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Tesla is now claiming that Cybertruck was the ‘best-selling electric pickup in US’ last year despite not even reporting the number of deliveries.
There’s a lot of context needed here.
As we often highlighted, Tesla is sadly one of, if not the most, opaque automakers regarding sales reports.
Tesla doesn’t break down sales per model or even region.
For comparison, here’s Ford’s Q4 2024 sales report compared to Tesla’s:
You could argue that Tesla has fewer models than Ford, and that’s true, but Tesla’s report literally has two lines despite having six different models.
There’s no reason not to offer a complete breakdown like all other automakers other than trying to make it hard to verify the health of each vehicle program.
This has been the case with the Cybertruck. Tesla is bundling its Cybertruck deliveries with Model S, Model X, and Tesla Semi deliveries.
Despite this lack of disclosure, Tesla has been able to claim that the Cybertruck has become “the best-selling electric pickup truck” in the US in 2024:
It very well might be true. Ford disclosed 33,510 F-150 Lightning truck deliveries in the US in 2024 while most estimates are putting Cybertruck deliveries at around 40,000 units.
Those are global deliveries, but Tesla only delivered the Cybertruck in the US, Canada, and Mexico in 2024, and most of the deliveries are believed to be in the US.
However, there’s essential context needed here, as we highlighted in our recent ‘Tesla Cybertruck sales are disastrous‘ article.
First off, Tesla had a backlog of over 1 million reservations for the Cybertruck that it has been building since 2019. This led many to believe Tesla already had years of demand baked in for the truck and that production would be the constraint.
However, based on estimates, again, because Tesla refuses to disclose the data, Cybertruck deliveries were either flat or down in Q4 versus Q3 despite Tesla introducing cheaper versions of the vehicle and ramping up production.
Again, that’s after just about 40,000 deliveries.
Furthermore, with almost 11,000 deliveries in Q4 in the US, Ford more likely than not outsold Cybertruck with the F-150 Lightning in Q4.
Electrek’s Take
Tesla is in damage control here. There’s no doubt that it is having issues selling the Cybertruck.
Inventory is full of Cybertrucks and Tesla is now discounting them and offering free lifetime Supercharging.
Tesla is great at ramping up production, and it’s clear the Cybertruck is not production-constrained anymore. It is demand-constrained despite having over 1 million reservations.
Again, those reservations were made before Tesla unveiled the production version, which happened to have less range and cost significantly more.
The upcoming cheaper single motor version should help with demand, but I have serious doubts Tesla can ramp this program up to more than 100,000 units in the US.
As a reminder, Tesla installed a production capacity of 250,000 units annually and Musk said he could see Tesla selling 500,000 Cybertrucks per year.
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