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Republicans have introduced a bill to eliminate the US EV tax credit in the Inflation Reduction Act, with the effect of slowing US progress on EV manufacturing, thus handing the lead in EV manufacturing to China.

How the Inflation Reduction Act helps American health, economy & manufacturing

The Inflation Reduction Act included hundreds of billions of dollars of climate spending, much of which was allocated to EV tax credits, both for personal and commercial vehicles. These credits were an extension and expansion of the $7,500 EV tax credit first introduced in 2008.

But those credits were limited to 200,000 cars per manufacturer, a cap which some manufacturers had hit and more were going to hit. So the Inflation Reduction Act improved access to those credits, removing the cap and setting up a way for the credits to be available upfront at the point of sale, meaning that lower-income buyers can qualify for the credits and get them immediately instead of waiting to file their taxes.

However, it limited the credits in some important ways as well – namely, by ensuring domestic production of electric vehicles in order to qualify, and setting limits on high-income buyers so the credits go to people who need them rather than those who don’t.

It also added a $4,000 used EV tax credit, which is limited to even lower income groups.

There are ways around some of these limitations and some restrictions have been loosened to allow industry to catch up. But these restrictions have nevertheless fueled a renaissance in American auto manufacturing, with many manufacturers announcing new factory investments in the US.

In fact, since President Biden started his EV push, oer $210 billion has been invested in new or expanded factory projects, which will create EV 250,000 jobs, with more to come.

These commitments stand to make the US into an EV manufacturing powerhouse – we’re already doing pretty well in EV production, largely led by Tesla. But Chinese EV production and demand are rising rapidly and automakers are waffling in the face of it – so government must be clear that we are committed to building this industry long-term.

The IRA also represents the largest climate commitment made by any country in the world, ever, by dollar value. The hundreds of billions of dollars allocated, largely to EV-related tax credits but also to many other climate programs, are a commitment still unmatched by any other country. As an added bonus, the bill actually brings in more revenue than it costs due to tax reforms targeting wealthy corporate and individual tax cheats.

Republicans are lying about their bill’s effects

So, no wonder that republicans, a party that seems to actively oppose anything that would benefit American manufacturing or the environment that Americans live in, would introduce an act to eliminate much of the benefit from the Inflation Reduction Act.

The new act, fittingly called the “ELITE” Vehicles Act (surely named for republicans’ elite fossil fuel donors which it aims to benefit at the expense of everyone else), aims to eliminate the clean vehicle credit for new, used, and commercial electric vehicles.

The act was introduced by John Barrasso, a republican senator from Wyoming who has received $526,425 from the oil & gas industry in this senate election cycle. Not only that, but Wyoming’s main industries are all tied to oil, putting the lie to the assertion that this act is intended to do anything more than benefit an industry which is responsible for millions of deaths per year.

The act’s advocates say that IRA credits – which are limited to lower-income buyers, particularly the used EV credit – are a giveaway to the wealthy (who don’t qualify for them), and that the credits allow Chinese EVs into the US (which they in fact explicitly disallow through the domestic manufacturing provisions mentioned above).

Notably, the act doesn’t do anything to get rid of the $760 billion in subsidies received by polluting industry each year in the US. This could be done through making polluters pay for the pollution they cause. If subsidy elimination were the act’s main concern, then that’s a rather big target that the act ignores – because, of course, the fossil fuel industry wouldn’t like it if their free license to harm the health of Americans were revoked.

The actual effect of rolling back these credits would be to make EVs less affordable for Americans, to ensure that those same Americans have more misery forced on them by pollution from the industry that bribes Barrasso, and to discourage American EV manufacturing and consumer uptake which would have the effect of handing over the lead in global EV manufacturing to China.

How Chinese auto benefits and the US is harmed by repealing the EV credit

Chinese EV manufacturing and consumer demand are both currently skyrocketing, and China is rapidly increasing exports of EVs to overseas markets – particularly Europe at the moment.

But Chinese companies would love to sell EVs in the US, and would likely love to see the government tack $7,500 onto the price of US-built EVs, which would only make Chinese-built EVs much more competitive to the pocketbooks of the American consumer. Barrasso’s bill would do exactly that – make Chinese EVs more competitive, and the US auto industry less so.

And since EVs provide local air quality benefits, which stands to reason and which we’ve already seen in areas with high penetration, reducing EV adoption would also make Americans sicker and fill up American hospitals more.

While Barrasso claims that the bill would do the opposite of the things that it would actually do, it’s hard to believe that anyone would be ignorant enough to believe it would actually have the effects he claims. We don’t think that even he thinks that – we think he’s just playing politics, and saying whatever will make his fossil overlords happy.

In short, John Barrasso, author of the act, is lying to protect the industry that bribes him.

So far, the act has only been introduced in the Senate, and has not made it through committee or to a vote. It is sponsored by 19 republican senators, many of whom come from states with significant oil industry presence. If somehow passed, it would almost certainly be vetoed by President Biden, so it is not likely to make it into law under the current government (though that could change in November, which is something to keep in mind when filling out your ballots).

But even if it doesn’t make it into law, it still functions as a way for republicans to show their intent – to cost you money, to harm your health, and to hand the keys of the future of the auto industry over to the country which the US considers its main geopolitical rival.

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Honda’s super low-cost electric motorcycle revealed in new patent images

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Honda's super low-cost electric motorcycle revealed in new patent images

Honda’s patent filings offer a clear glimpse into the company’s plans for an ultra-affordable electric motorcycle, integrating a proven chassis with a simple electric powertrain. It’s a clear glimpse into how the world’s most prolific motorcycle maker plans to challenge the nascent electric motorcycle market.

The filings in Honda’s new patent show a bike built around the familiar platform of the Honda Shine 100, a best-selling commuter in India, reimagined in electric form for a cost-effective future of urban mobility.

According to Cycle World’s Ben Purvis, Honda’s patent sketches outline a design that repurposes the Shine’s sturdy frame and chassis mounting points to house an electric motor and compact battery setup. Positioned where the engine once sat, a mid-motor drives the rear wheel via a single-speed reduction gear and chain – mirroring the essentials of the original gasoline-powered commuter bike.

Instead of a traditional fuel tank, the design features two lithium-ion battery packs, angled forward on either side of the spine frame and fitting neatly into the existing geometry.

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What makes the bike revealed in this patent even more interesting isn’t just its clever packaging, but rather the platform. By leveraging the proven Shine chassis, Honda can significantly cut development costs, manufacturing complexity, and market price. That’s a big statement given that surviving in price-sensitive markets like India demands simplicity and reliability. And by piggybacking off a proven platform, Honda can dramatically reduce the time to market from the time the boardroom bigwigs give the project the final green light.

Honda’s patent images show an electric motorcycle built on the same platform as the Honda Shine 100

The design still seems to feature styling that would be fairly consistent with the Shine 100, even down to a gas cap-like circular protrusion likely on top of a faux-tank. Some electric motorcycles in the past have used this location to hide a charging port, keeping similar form and function to outdated fuel tanks and fill ports, though it’s not clear if that is Honda’s intention.

It’s not clear what power level Honda could be targeting, but the Shine bike from which Honda’s creation draws its design inspiration could provide some clues. The Honda Shine 100 features a 99cc engine that provides around 7.3 horsepower (around 5.5 kW) and has a top speed of 85 km/h (53 mph), solidly planting it in the commuter segment of motorcycles.

The electric motorcycle in Honda’s design would be unlikely to target much higher performance as it would drastically increase the required battery capacity, and thus similar speeds of around 80-85 km/h (50-53 mph) would seem likely.

There also appears to be no active cooling, which would also limit the amount of power that Honda would be likely to draw continuously. The patent describes a channel formed by the two battery packs, leading to the speed controller and creating ducted cooling that pulls heat out of the batteries and electronics without drawing extra power.

Honda hasn’t released a final design, but I ask AI to create one based on the patent images. I’d ride that!

This emerging design is just one piece of Honda’s broader electric two-wheeler strategy. Their entry-level EM1 e: and Activa e: scooters launched with mobile battery packs and budget-friendly pricing. Meanwhile, high-tech concepts continually push the envelope. But this Shine-based bike aims squarely at the heart of mainstream affordability – a move likely to resonate with millions of new electric riders in developing regions like India where traditionally-styled small-dsiplacement motorcycles reign supreme.

Honda hasn’t revealed a timeline or pricing yet, but Honda’s patents offer real hope to fans of the brand’s electric efforts. If scaled effectively, this could be the first truly mass-market electric motorcycle from a major OEM, with a sticker price likely far below the $5,000 mark usually seen as a floor for commuter electric motorcycles from major manufacturers. That would also dramatically undercut models from brands like Zero or Harley-Davidson’s LiveWire, even as those brands rush to bring their own lower-cost models to market.

Electrek’s Take

Honda’s patent reveals a clever, no-frills EV designed to democratize electric two-wheeling, especially in developing markets that are even more price-sensitive than Western electric motorcycle customers.

Using a trusted frame, simple electric drive, and passive cooling, I’d say it definitely prioritizes cost over complexity, which is exactly what urban commuters need. If Honda can bring this to market, it would not just add another electric bike to the mix… it could create a new baseline for affordability in affordable electric mobility. Now we’re just waiting for the rubber to hit the road!

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Musk will ask Tesla shareholders to vote on bailout for twitter/xAI

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Musk will ask Tesla shareholders to vote on bailout for twitter/xAI

Tesla shareholders will vote on whether to invest into xAI, Tesla CEO Elon Musk’s private company, according to a post by Musk on twitter today.

Elon Musk is not just the CEO of Tesla, the electric car company that you may have heard about from time to time in Electrek’s coverage, but several other companies as well. And, famously, Musk companies often share resources – there has been much talk of incorporating SpaceX technology into Tesla vehicles, and putting xAI/twitter’s “MechaHitler”…. er, I mean, “Grok”…. feature into Tesla cars, among other collaborations that have happened over his various companies’ histories.

And today, Musk made it official that he will seek greater collaboration between three of his companies: Tesla, xAI, and twitter, in the form of an investment into xAI by Tesla.

The situation is a little more complicated than that, though.

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Tesla is a public company, owned by shareholders. Musk is the largest shareholder, but only owns around 12% of the company himself.

This is a different situation than xAI, which is a private company, owned by Musk. While there are other investors, he can exercise much more direct control over the company, and doesn’t have to put big decisions up to a vote.

One of the recent decisions he made with xAI was to purchase twitter in March. You may say, “wait, I thought he bought twitter back in 2022?,” and you’d be correct. Musk purchased twitter for $44 billion in 2022, which was widely agreed to be far too high a price, and then rapidly saw the company’s valuation drop to under $10 billion.

Then, in March 2025, Musk had xAI purchase twitter in an all-stock deal, valuing twitter company at $45 billion – again, far too high of a valuation, but considering he purchased the company from himself, he could set the price at whatever he wanted.

The move was widely considered to be a bailout of twitter, and the numbers involved considered arbitrary, perhaps partially to help save face for Musk after he made one of the worst business deals of all time.

Now the two are the same entity, and it seems clear that he would like to bring Tesla into the fold, in some way or another.

Musk has already improperly used resources from Tesla, a public company, to boost xAI and twitter, his private companies. Last year, he gave up Tesla’s priority position for highly sought-after NVIDIA H100 GPUs, instead shipping those GPUs to xAI and twitter. Tesla could have used these GPUs for training its FSD/Robotaxi systems, which Musk has claimed is the most important thing to Tesla’s future, but instead graciously sent them to his other company that used them to, uh, train a bot to say Nazi stuff apparently.

xAI has also poached talent from Tesla, multiple times, showing how Musk is using Tesla as a farm team for his private company.

So it hasn’t been a secret that Musk would like to use public money to bail out his private companies, as he’s been setting the stage for for a while now.

Musk has previously “discussed” getting Tesla to invest in xAI in the past, but the idea was never made official until today, when Musk said that he will put the idea to a shareholder vote.

In response to one of his superfans asking for the the opportunity to waste money on an overvalued social media app (which would mark the third time it has been overpaid for in as many years), and the backend fueling “MechaHitler,” Musk said this:

Tesla traditionally holds its annual shareholder meeting around the middle of the year, so if it were a normal year, this shareholder vote might be imminent.

But it’s not a normal year, as just last week Tesla announced an exceptionally late shareholder meeting, pushing it back to November, the latest it has ever held the meeting.

This means that Musk will have around four months to campaign for this idea – something that he’ll perhaps have more time to do, now that he’s no longer cosplaying as a government official.

We don’t know what the structure of the deal might look like yet, but Musk has been clear in the past that he wants more shares in Tesla. After selling many of his shares in order to buy twitter, he later complained that he doesn’t feel comfortable having less than 25% of Tesla. Given that his recent xAI/twitter deal was an all-stock deal, Musk could attempt to fund any investment of Tesla into xAI via shares, giving himself more Tesla shares in exchange for the company gaining a portion of xAI. Though to get him to 25% voting shares in Tesla, that would require either an enormous valuation for xAI, a small valuation for Tesla, or purchasing a large percentage of xAI (or, perhaps, all three, given how much higher TSLA’s valuation is than xAI’s).

We may however have a hint as to how that vote will go, because the last time Musk campaigned for a clearly terrible idea, Tesla shareholders ate it up.

In mid-2024, Musk ended his yearslong absenteeism at Tesla in a flurry of activity, hoping to persuade enough shareholders to vote for his illegal $55B pay package.

That flurry involved firing 10% of the company (supposedly in order to save money – though Tesla’s earnings have dropped drastically since), including important leadership and successful teams, which caused chaos with Tesla’s projects. He also pushed back an all-important affordable car project (which we’ve still heard nothing about) and held Tesla’s AI projects hostage while shifting both resources and staff from Tesla to his private AI company, even as he claims that AI is the future of Tesla.

In the end, these bad decisions worked, and shareholders voted to give their bad CEO his $55B pay package, even though it was later ruled to still be illegal.

So it looks like we’ve got another campaign coming up, and if last time was any indication, expect some really bad decisions along the way. It worked last time, didn’t it?


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E-quipment highlight: Perkins TracStar battery electric power unit

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E-quipment highlight: Perkins TracStar battery electric power unit

The off-highway equipment experts at Perkins and McElroy have teamed up to develop a plug-and-play battery electric power unit designed to help equipment OEMs and upfitters to seamlessly transition from diesel to battery electric power.

Designed to occupy the same space as the companies’ diesel-engined power units, Perkins dropped its new battery power unit into the similarly new McElroy TracStar 900i pipe fusion machine (specialized equipment used to join thermoplastic pipes like HDPE or polypropylene by heat-welding them end-to-end to form a continuous length pf pipe).

Perkins’ battery electric power unit replaces the company’s proprietary 134 hp, 3.6 liter 904 Series Tier V diesel engine, enabling units that are already deployed to be quickly upgraded to electric power – and helping trade allies and development partners to easily retrofit existing equipment in order to add zero-emission options to their operational fleet.

“We’re actively helping customers navigate the shift in power system requirements, with a range of advanced power systems including electric, diesel-electric and alternative fuel compatible engines,” says Jaz Gill, vice president, global sales, marketing at Perkins. “When it comes to the innovative fully integrated battery electric power unit, it can be ‘dropped in’ to a machine to replace a diesel engine. The system consists of a Perkins battery along with inverters, motors and on-board chargers – all packaged up into a compact drop-in system to support seamless transition from diesel to electric for our customers looking to make that move.”

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McElroy believes that an electric, emissions-free power unit like this one will open new opportunities and applications for its customers.

“Their team has done a phenomenal job of integrating their battery electric system into our TracStar 900i,” explains McElroy President and CEO Chip McElroy. “We’re really excited to see what the market thinks about this concept.”

Development of the battery electric powered pipe fusion machine was completed in about nine months. Future Perkins-powered electric equipment running the 904 diesel (small excavators, telehandlers, pumps, and gensets) could be developed even more quickly. You can find out more in the company’s promo video, below.

Perkins electric power unit


SOURCE | IMAGES: McElroy, Perkins.

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