Hyundai IONIQ 5 to lead US production at new EV plant with $7,500 tax credit in sight
The top-selling Hyundai EV is about to become even more attractive. Hyundai says the IONIQ 5 will be the first EV built at its new $7.6 billion EV and battery plant in Georgia, unlocking access to the $7,500 federal tax credit.
After selling nearly 34,000 IONIQ 5 models last year (+48% YOY) in the US, Hyundai’s top-selling EV has not slowed down this year.
Hyundai sold 3,361 IONIQ 5 models in March, a new record. Through the first three months of 2024, 6,822 IONIQ 5 models have been handed over to customers (+18% YOY), also a new record.
Although Hyundai’s second EV, the IONIQ 6, launched in the US last January, IONIQ 5 sales are still nearly double that of the electric sedan. Meanwhile, the electric SUV is still imported from Korea.
Hyundai’s global chief operating officer, Jose Munoz, said it’s a “no-brainer” for the IONIQ 5 to be the first EV built at its new EV and battery Metaplant in Georgia.
In an interview with Automotive News, Munoz said the IONIQ 5 “absolutely is the bestseller.” Munoz added, “So I think it is a no-brainer that it needs to be that one,” referring to Hyundai’s first EV to roll out of the Metaplant.
Hyundai IONIQ 5 to gain $7,500 EV tax credit eligibility
The EV production line will be ready in October when Hyundai will begin assembling the IONIQ 5 in the US.
Although the battery unit will open about a year later, Munoz said the expectation is that the IONIQ 5 will gain eligibility for the $7,500 EV tax credit once assembly begins.
While Hyundai waits for the battery portion to come online, it will source IONIQ 5 batteries from a factory in Hungary. “We needed the critical components of the battery, the materials of the battery and also the assembly with the proper sourcing,” Munoz explained.
Hyundai, like several automakers, is passing the $7,500 tax credit on for those leasing through a loophole in the Inflation Reduction Act.
|
2024 Hyundai IONIQ 5 trim |
Starting Price (excluding destination fee) |
Price after potential $7,500 EV tax credit (excluding destination fee) |
Range (EPA est miles) |
| SE Standard Range | $41,800 | $34,300 | 220 |
| SE | $45,850 | $38,350 | RWD: 303 AWD: 260 |
| SEL | $47,400 | $39,900 | RWD: 303 AWD: 260 |
| Limited | $53,500 | $46,000 | RWD: 303 AWD: 260 |
| D100 | $59,400 | $51,900 | 260 |
However, that’s about to change this fall. “As of October, we’ll be able to do so as well with retail customers who pay cash or finance. That’s going to be good news,” Munoz said.
The news comes after Kia announced its first three-row EV9 electric SUV rolled off the assembly line at its West Point, GA plant Thursday. Kia’s EV9 made history as the first EV assembled from start to finish in the Peach State.
Electrek’s Take
Hyundai already has some of the most affordable and fuel-efficient EVs. Hyundai’s electric models account for six of the top ten most fuel-efficient EVs in the US this year.
Starting at $41,800, the IONIQ 5 is one of the best deals on the market. With a $7,500 tax credit, the IONIQ 5 could be bought for as low as $34,300. That would be one of the most affordable electric options in the US.
It will be interesting to see how US production impacts Hyundai’s EV sales. In an exclusive interview with Electrek, Hyundai’s North American CEO told us the automaker is “humble and hungry” to separate itself from the competition (read the full interview here).
If you’re ready to see why Hyundai’s IONIQ 5 is already outpacing the competition, we can help you get started. You can use our link to find deals on the Hyundai IONIQ 5 at a dealer near you.
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Elon wants the US military to start buying Tesla Cybertrucks – and now they are! The Air Force has ordered two Cybertruck testers for target practice to determine how easy they are to blow up, while Jo makes up a whole new conspiracy theory on today’s explosive episode of Quick Charge!
Today’s episode is brought to you by retrospec—makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure. Electrek listeners can get 10% off their next ride until August 14 with the exclusive code ELECTREK10 only at retrospec.com.
An it doesn’t stop there. We’ve also got exciting new home battery backup and V2X options for Tesla owners, and one Texas EV driver that decided to conquer the Texas floodwaters by harnessing the awesome combined powers of electrons and stupidity (it’s pretty awesome).
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Tesla’s Dojo supercomputer project is reportedly over. Bloomberg reports that CEO Elon Musk is killing the project after a mass exodus of talent from the Dojo team to a competing startup.
Dojo was the name of Tesla’s in-house AI chip development to create supercomputers to train its AI models for self-driving.
Tesla hired a bunch of top chip architects and tried to develop better AI accelerator chips to rely less on companies like NVIDIA, AMD, and others.
It has been running into delays for years.
We previously reported on significant setbacks. In 2018, Jim Keller, the famed chip architect who was first hired to lead Tesla’s chip-making effort, left the company.
Ganesh Venkataramanan succeeded him, but he left Tesla in 2023.
For the last few years, Peter Bannon, who worked with Keller for years, has been leading Tesla’s chip-making programs, but he is now reportedly also leaving the automaker.
Bloomberg reports that Musk has “ordered the effort to be shut down.”:
Peter Bannon, who was heading up Dojo, is leaving and Chief Executive Officer Elon Musk has ordered the effort to be shut down, according to the people, who asked not to be identified discussing internal matters. The team has lost about 20 workers recently to newly formed DensityAI, and remaining Dojo workers are being reassigned to other data center and compute projects within Tesla, the people said.
DensityAI is a new startup currently in stealth mode, founded by several former Tesla employees, including Venkataramanan.
It reportedly plans to build chips for AI data centers and robots, much like the Dojo program.
The company recently hired 20 former Tesla employees who worked on Dojo.
While the program appeared to be lagging behind for years as Tesla increasingly bought more compute power from NVIDIA, Musk has been claiming progress.
The CEO said in June:
Tesla Dojo AI training computer making progress. We start bringing Dojo 2 online later this year. It takes three major iterations for a new technology to be great. Dojo 2 is good, but Dojo 3 will be great.
During Tesla’s quarterly conference call in late July, the CEO claimed that Dojo 2 will be “operating at scale sometime next year.”
Electrek’s Take
It’s unclear whether the report is accurate or if it’s an extrapolation from the talent exodus to Elon killing Dojo, or if Elon was lying just a few weeks ago.
Alternatively, this development may be so recent that Elon went from being confident in Dojo a few weeks ago to disbanding the team working on it now.
Either way, I think it’s clear that the project has been lagging, and Tesla has been extremely dependent on chip suppliers rather than making its own.
I think Dojo being likely dead is not a big loss for Tesla.
When it comes to chip making, developing its own inference compute for onboard “AI computers” was always the more important project.
TSMC is set to produce Tesla’s new AI5 chip, which is coming soon, and we have recently learned that Samsung will be manufacturing its AI6 chip.
I think the bigger concern from this report is that it’s the latest example of an ongoing exodus of talent at Tesla.
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Jack Dorsey, co-founder and chief executive officer of Twitter Inc. and Square Inc., listens during the Bitcoin 2021 conference in Miami, Florida, on Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
Block shares jumped in extended trading on Thursday after the fintech company increased its forecast for the year.
Here is how the company did, compared to analysts’ consensus estimates from LSEG.
- Earnings per share: 62 cents adjusted vs. 69 cents expected
Block doesn’t report a revenue figure, but said gross profit rose 14% from a year earlier to $2.54 billion, beating analysts’ estimates of $2.46 billion for the quarter. Gross payment volume increased 10% to $64.25 billion.
Block raised its guidance for full-year gross profit to $10.17 billion, representing 14% growth from a year earlier. In its prior earnings report, Block said gross profit for the year would come in at $9.96 billion.
The company expects full-year adjusted operating income of $2.03 billion, or a 20% margin. For the third quarter, the company expects gross profit to grow 16% from a year ago to $2.6 billion, with an operating margin of 18%.
Square payment volume in the quarter grew 10% from a year earlier.
Block faces growing competition from rivals such as Toast and Fiserv‘s Clover, though its Square business still gained share during the quarter in areas such as retail and food and beverage.
Block shares were down 10% this year as of Thursday’s close, while the Nasdaq is up 10%. Last month, Block was added to the S&P 500.
— CNBC’s Robert Hum contributed to this report.
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