The current base version of the Tesla Cybertruck is now eligible for a $7,500 federal tax credit in the US.
It should help Tesla move some units amid the electric truck’s demand issues, but not for long as both CEO Elon Musk and President Donald Trump aim to kill the electric vehicle incentive.
When Tesla launched the production version of the Cybertruck in late 2023, it was much more expensive than initially announced. However, Tesla still managed to price the dual motor version just short of $80,000, which happens to be the price limit for an electric SUV or pickup truck to be eligible for the $7,500 federal tax credit.
The automaker first started to deliver the Foundation Series version of the Cybertruck, which starts at $20,000 more, and therefore, buyers didn’t have access to the credit.
With an update to the IRS website today, the Cybertruck Dual Motor and Single Motor, the latter is not in production yet, now can qualify for the $7,500 federal tax credit for electric vehicles:
It’s not clear why the Cybertruck wasn’t eligible until now. The government has requirements for a vehicle to be eligible beyond pricing, especially regarding the sourcing of parts and materials.
Cybertruck is the only Tesla vehicle using the automaker’s in-house manufactured battery cells. It’s possible that Tesla needed time to have to get approval for those cells.
Regardless, the tax credit should now help Tesla move more Cybertrucks, which was becoming more difficult, as we previously noted.
However, it’s unclear how much the tax credit will help.
The eligibility requirements are not just for the vehicles, but there are also some for the buyers. Single tax filers can’t earn more than $150,000, and $300,000 for dual filers, and higher income people tend to be the ones to buy luxury vehicles like these.
Also, there’s the question of how long the tax credit will be available.
The incoming Trump administration, which is backed by Tesla CEO Elon Musk, has made clear that they want to remove the EV tax credit. However, they will need Congress’ approval, and it’s unclear how fast that can happen and if there will be a phase-out period or not.
Electrek’s Take
While I am seriously against removing EV incentives while the US is still far behind the rest of the world in EV adoption, I do believe that the sentiment of urgency should help Tesla here.
I am sure that some people were waiting for Cybertruck’s eligibility for the tax credit, but it’s hard to estimate how significant this buyer group is currently.
I could see some eligible people waiting for the base version preferring to buy a dual motor with tax credit rather than risk not having access to the tax credit by the time the single motor version becomes available.
Between the referral credit and the tax credit, the Cybertruck now starts really close to $70,000.
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What would you get if you created the illegitimate love child of a Mercedes G-Wagon and a Brinks armored truck (and perhaps if the Mercedes chain-smoked through the pregnancy)? I think you’d wind up with something like the wacky-looking electric cart that has earned the dubious honor of being named this week’s Awesomely Weird Alibaba Electric Vehicle of the Week!
I’m not sure this is exactly an armored golf cart, so I wouldn’t invite any unnecessary potshots while cruising your hood, but I’m at a loss of how else to describe it.
It’s definitely not a “real” car, as evidenced by its US $6,999 price tag and the 30 km/h (18 mph) top speed. If you ask me though, that speed goes in the ‘advantages’ column. When you drive something that looks this good, you want to be going slow enough to give people a good, long look.
A vehicle like this is designed to send a statement. Unfortunately, I think that statement might be, “I wanted a Jeep but my spouse wanted to remodel the kitchen.”
So if it’s not a real car, then what is it?
Measuring a stubby 306 cm long (an entire half inch over 10 feet), this four-seater mini-SUV is less G-Wagon and more “Oh, gee” wagon. It can supposedly carry up to 370 kg (815 lb) in passengers or cargo, but there’s no telling how much of a dent that puts in the already challenged top speed.
Safety might also be a passing concern. It doesn’t have any seatbelts, but the tires look like they just about extend out past the front and rear, so at least you’ve got some nice shock-absorbent bumpers built into the design.
The advertisement claims a maximum range of up to 80 km (50 miles) per charge, which seems like several more miles than anyone needs from something like this.
There’s no word on battery technology, which means I’m assuming either features older lead acid tech or there’s a frunk full of lemons and a bunch of loose wires running through the firewall.
I’m glad to see that the roof rack is at least equipped with enough LED lights to make an airport runway jealous, just in case I find myself stuck in the wilds of my backyard after dark. And that roof rack even looks pretty heavy-duty, though since the cart is considerably taller than it is wide, tight turns with a heavily-loaded roof rack should probably be avoided.
As much as I love this thing, I don’t think I’ll be whipping out my credit card any time soon.
Don’t get me wrong, I’ve bought plenty of bad ideas on Alibaba before. But since my $2,000 electric truck ending up costing me nearly 4x that much by the time it landed in the US, I’m a bit worried what the final price tag on a $6,999 Mini-MegaOverlander would become.
I don’t recommend anyone actually try buying this cute little TinyTrailblazer either, and I’m certainly not vouching for the vendor, who I discovered by chance while scrolling through Alibaba to procrastinate real work. Keep in mind that this is all part of a tongue-in-cheek column I write, diving into the depths of Alibaba’s weird and funny collection of awesome electric vehicles.
But hey, if someone does go that route, it wouldn’t be the first time my advice has been ignored and some awesome photos have landed in inbox several months later. Just don’t say I didn’t warn you if it turns out some Nigerian prince has your last paycheck and you’re up a creek with no MicroMudder to come bail you out!
When your local HOA finally gets its own tactical response unit
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Yup, Mullen Automotive [Nasdaq: MULN] is still here! And the EV company is defying the naysayers, reporting progress in EV sales, and reducing its monthly burn rate. Following Mullen Automotive’s significant strides in expanding its EV presence and improving its financial health in the last few weeks, Electrek caught up with David Michery, CEO and chairman of Mullen Automotive, who told us what trends he thinks 2025 will see for EV owners and others in the EV market.
After 2024 saw breakthroughs in tech, affordability, and adoption, Michery predicts this year will see even more disruption, transforming transportation and logistics on a massive scale. Here’s what to watch for this year.
EV total cost of ownership falls sharply
“Even if the federal EV tax credit from the Inflation Reduction Act is repealed, EVs will become more affordable through state-level incentives, manufacturer subsidies, and private partnerships. The investment case for electrification is simply too strong for the private sector to ignore.
“Reduced battery costs, cheaper maintenance, and lower energy expenses will make EVs increasingly attractive to businesses and consumers. Charging infrastructure programs and fleet retrofitting will also help organizations navigate the upfront costs with the goal of long-term savings.
“The result is a financial tipping point: EVs will no longer just be environmentally compelling – they will also be the most cost-effective choice.”
Commercial EVs expand their use cases
“If 2024 was any indication, 2025 will bring new use cases for EVs. Transportation and delivery will likely continue to reign supreme, but the customizable nature of EVs means that we can expect more specialized use cases such as airport shuttles, university campus logistics, home services, and refrigerated delivery.
“Airports will adopt EV cargo vans for quieter, cleaner transit and delivery between terminals, while universities will electrify campus logistics to align with sustainability goals. Innovations in temperature-controlled EVs will expand the reach of refrigerated deliveries, cutting emissions in cold-chain logistics. And this is cause for celebration.
“New use cases mean more widespread adoption – and recognition that electrification is the best way forward.”
(Editor’s note: This is the business that Mullen Automotive is in, and he’s not wrong.)
2025 will be the year of the battery
“EV batteries are poised for immense improvement in the coming year. Solid-state polymer batteries – an innovation that significantly expands battery lifespan and thus widens range – are currently in road testing.
“Offering higher energy density and faster charging, these new batteries will make EVs more reliable and competitive with internal combustion vehicles as compared to other electric alternatives.
“Plus, better range and more efficient energy consumption will undoubtedly translate to lower maintenance costs for fleet owners.”
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Although Toyota bZ4X sales nearly doubled last year, the auto giant is still falling behind in the US EV market. Overseas rivals like Hyundai and Kia are lapping Toyota. Even other Japanese automakers, including Honda and Nissan, are selling more EVs in the US than Toyota.
Toyota bZ4X sales lagged behind US EV rivals in 2024
Toyota boasted that its 2024 electrified vehicle sales reached over 1 million in the US in 2024. However, that’s primarily thanks to its hybrid models.
With just 1,854 bZ4X models sold in December, Toyota’s 2024 total reached 18,570. Although that number is up 99% from the 9,329 sold in 2023, it’s still far behind the competition.
To put it in perspective, Honda, which began delivering its electric Prologue last March, sold over 33,000 models last year. In December, Honda sold nearly 7,900 Prologues alone. During the second half of 2024, Honda sold an average of over 5,000 electric SUVs per month.
Nissan also outsold Toyota with nearly 19,800 Ariya electric SUVs sold last year. Nissan’s decade-old LEAF secured another 11,226 sales in the US in 2024, up 57% year-over-year.
2025 Toyota bZ4X Limited AWD (Source: Toyota)
Kia’s first three-row electric SUV, the EV9, outsold the bZ4X last year despite a +$10,000 higher MSRP. After deliveries began in late 2023, Kia sold over 22,000 EV9 models in the US last year.
After setting new US sales records last year, Hyundai and Kia are aggressively aiming for more EV market share in 2025. Hyundai began production at its massive new EV plant in Georgia, where it will produce new EVs like the upgraded 2025 IONIQ 5 and three-row IONIQ 9.
2025 Toyota bZ4X Nightshade edition (Source: Toyota)
With Kia building EV9 models at its West Point plant and the Genesis Electrified GV70 built in Alabama, Hyundai Motor has five EV models that qualify for the $7,500 federal tax credit for the first time, which should boost demand further.
2025 Toyota bZ4X Limited AWD interior (Source: Toyota)
Toyota slashed 2025 bZ4X prices by $6,000 to make it more competitive. Starting at $37,070, the 2025 bZ4X undercuts the 2025 Hyundai IONIQ 5 ($42,500) and Nissan Ariya ($39,770).
Although Honda has yet to release 2025 Prologue prices, it’s expected to start much higher. The 2024 Honda Prologue starts at $47,400.
Electrek’s Take
Like several others, Toyota pushed back major EV projects, including its first three-row electric SUV. The delay gave overseas rivals, like Hyundai and Kia, an opportunity, which they gladly took advantage of.
Toyota also scrapped plans to build new Lexus electric SUVs in North America. Instead, the new Lexus EV models will be imported from Japan.
The company is preparing to start battery production at its new $13.9 billion facility in NC, which should help ramp up EV sales. In the first half of 2026, it will also begin building the larger electric SUV at its Georgetown, Kentucky, plant.
The Japanese auto giant is still promising advanced new EV batteries are coming soon with significantly more range and faster charging at a lower cost. But when will they actually hit the market?
Toyota has been vowing to launch new EV battery technology for years. By 2027, the company plans to launch a pair of new Performance and Popularized batteries, which will enable a nearly 500-mile (800-km) WLTP range. In 2028, Toyota plans to launch solid-state EV batteries with mass production in 2030.
Will it be enough? Or is Toyota already too late to the party? Let us know what you think in the comments below.
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