The Republicans in Congress have voted for Trump’s ‘Big Beautiful Bill’, which are going to greatly slow down electric vehicles and renewable energy in the US.
Here’s how the new bill is going to affect Tesla.
Solar stocks are all crashing today. Solar Edge is down 20%, and First Solar is down 5%.
EV stocks, like Rivian and Lucid, are also down ~2.5%.
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Tesla is operating in both of those markets, and yet, the stock is up 2.5% a the time of the writing.
This could lead people to believe that the new budget bill passed by the US Congress yesterday is actually positive for Tesla, but this is far from the case.
$7,500 EV Tax Credit is going away
As we have extensively reported in the last few weeks, the bill kills the EV tax credit in the US.
By the end of 2025, all automakers who have delivered more than 200,000 electric vehicles in the US will lose access to the tax credit.
Impact on Tesla:
This should result in a boost in demand for Tesla at the end of 2025 as buyers try to take advantage of the tax credit, but it will result in a serious drop in demand starting in 2026.
Some competitors will still have access to the tax credit in 2026, while Tesla will not, which could disadvantage it.
$250 annual fee for electric vehicles
On top of removing the tax credit, the bill introduces a $250 annual fee for electric vehicles and a $100 fee for hybrids, which they claim is to fund road repairs traditionally supported by gas taxes.
Impact on Tesla:
Obviously, this is negatively impacting Tesla by increasing the annual cost of ownership by $250 as it does for every other EV owner.
The fee is seen as directly targeting EV owners and buyers, who might also turn away from the Tesla brand due to its CEO, Elon Musk, having supported the GOP, which pushed this legislation.
The sale of regulatory credits is a significant part of Tesla’s profits. In fact, Tesla’s sales of regulatory credits were higher than its net income in the first quarter of 2025. It means that Tesla would have lost money without regulatory credit.
The only positive thing here is that the federal government will likely not be able to eliminate the CARB credits.
Elimination of Solar and Energy Storage Incentives
The bill kills the Investment Tax Credit (ITC) for solar and energy storage systems, effective January 1, 2026. The ITC previously provided a 30% credit for qualifying solar and battery storage installations.
Impact on Tesla
Tesla deploys both solar and energy storage in the US and therefore it will be negatively affected as demand is expected to drop significantly in 2026 without the tax credit.
Solar is not a significant business for Tesla anymore, but energy storage deployment is currently Tesla’s only growing business since EV deliveries are down. As a leader in energy storage in the US, Tesla is likely going to feel the impact of the end of ITC more than anyone.
Electrek’s Take
These are all pretty terrible impacts on Tesla’s business mid to long term. The US was Tesla’s safest market, but now it is only for the next 6 months or so.
My theory as to why all other solar and EV stocks are appropriately reacting to the bill passing, but not Tesla’s, is due to the fact that this bill is actually going to help Tesla’s demand in the short term – and Tesla needs it the most in the short term.
Tesla investors are delusional, and they believe that Tesla is going to solve self-driving within the next year and become unstoppable. In the meantime, they can’t (unlike Musk) deny that demand is terrible, but this will help Tesla in 2025.
In 2026, though, good luck. And good luck to the entire EV market in the US, which is already behind the rest of the world. It’s a real bummer, and the fact that Tesla’s CEO is a big part of how this happened is truly mindboggling.
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Hop on Rad Power’s RadExpand 5 Plus or RadExpand 5 folding e-bikes at their lowest prices starting from $999
Rad Power’s Back to School Sale may be over, but that doesn’t mean you can’t still pick up two of the brand’s space-saving folding e-bikes at their lowest prices. Now through August 20, alongside the ongoing RadExpand 5 e-bike’s $999 low, you can grab the RadExpand 5 Plus Folding e-bike at $1,699 shipped. This model released last year but has been keeping posted at its full $1,899 rate for most of the time since, with only a free accessory package and one discount to this same rate on the books in 2025. The low price we first saw during Memorial Day sales is coming back around to save you $200 on this newer model that will also save you on storage space at home, in your dorm, or anywhere else.
The Rad Power RadExpand 5 Plus comes as the latest iteration of the space-saving series, able to condense down to 29 inches high by 25 inches wide by 41 inches long to fit inside closets, car trunks, on RVs, and more. The 750W rear hub motor is paired with a 720Wh battery to carry you for up to 60+ miles with its five PAS levels activated at up to 20 MPH top speeds (supported by a torque sensor). Among its updated features, you’ll be getting a hydraulic suspension fork alongside hydraulic disc brakes for smoother rides and greater stopping power. There’s also the puncture-resistant tires, fenders to go over top of them, a rear cargo rack for added versatility, an LED headlight, a brake-activated taillight, a Shimano 7-speed derailleur, a color display with a USB-C port, and more.
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If you’re looking to still save space while paying less, the brand’s predecessor RadExpand 5 Folding e-bike is remaining at its $999 low for as long as supplies last. It has a similar combination of a 750W motor with a smaller 672Wh battery that provides up to 45+ miles of pedal-assisted travel at up to 20 MPH top speeds, and also comes with a foldable design for more convenient storage options. It’s a tried-and-true legacy model that offers a nice array of features, including a rear cargo rack, an auto-on LED headlight, an auto-on taillight with brake lighting, a 7-speed MicroShift derailleur, an LED display, and more.
Bluetti’s August solar generator sale drops Elite 100 V2 bundle with 200W panel to $799 low, more from $169
Jackery cuts power station and accessory prices by up to 50% alongside bonus 5% and 7% savings starting from $89
Jackery is having an August home backup sale running through August 13, which is taking up to 50% off its power station lineup, complete with member-only pricing on top of an extra 5% and 7% savings on orders over $1,300. Among the lineup, we’re seeing continued Prime Day pricing on the brand’s new HomePower 3000 Portable Power Station for members (free to sign up) starting from $1,614.05 shipped, after using the code BACKUP5 at checkout for an additional 5% off, matching the price on Amazon. This new unit hit the scene back in May at $2,499, and is now matching the Prime Day low. You’re getting a third-ever drop to this all-time low price here, cutting $885 off the tag.
You can cut in tighter quarters with Greenworks’ 24V 6-inch cordless mini chainsaw at $95
Amazon is offering the Greenworks 24V 6-inch Cordless Mini Chainsaw with a 2.0Ah battery for $94.99 shipped, which is matching in price directly from the brand’s website. This model normally fetches $130 at full price, which we saw spending the first four months of 2025 keeping to $100, before rising back in price and dropping to the $90 low in June and during July’s Prime Day event. If you missed out on those all-time lows, you can pick it up now at the second-best price we have tracked, cutting $35 off the tag and landing it just $5 above the low.
Get 17 miles of budget-friendly campus commuting on Hiboy’s S2 SE e-scooter at a new $270 low (Today only)
As part of its Deals of the Day, Best Buy is offering the best pricing yet on the newer Hiboy S2 SE Electric Scooter for $269.99 shipped just ahead of students going back to classes. This model hit the market back at the top of 2025 carrying a $550 price tag, with Best Buy instead regularly offering it these days at $330 without discounts. Among the previous discounts this year, the lowest we’ve seen the price go before today was $294 during Prime Day last month, with the deal here cutting $60 off the going rate ($280 off the MSRP) at the best price we have tracked. It’s even beating out Amazon’s pricing by $60 and Hiboy’s direct pricing by $27.
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
The Inster EV is currently Hyundai’s most affordable electric SUV. With starting prices under $30,000, the compact EV is already making inroads in overseas markets.
Hyundai’s most affordable electric SUV invades Germany
After launching earlier this year, the Inster EV quickly became one of the top-selling electric cars in the heart of Europe.
In the first half of the year, Hyundai’s electric SUV was the best-selling electric small car in Germany. The Inster has now ranked among the top 10 best-selling EVs in the region for the third straight month with over 1,000 registrations.
With another 1,130 registrations in July, Hyundai’s most affordable electric SUV has now secured 6,300 registrations through the first seven months of 2025.
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“We’re delighted that Germany’s best-selling electric small car is a Hyundai,” said Ulrich Mechau, President & CEO of Hyundai Motor Germany.
Hyundai’s regional boss added that “With the Hyundai INSTER, we’re hitting the right note – because even in electric mobility, there must be affordable cars with an excellent price-performance ratio.”
Hyundai Inster EV (Source: Hyundai UK)
Led by strong demand for EVs, Hyundai placed third among importers in Germany. Through July, electric vehicles account for 28% of Hyundai’s registrations in Europe’s largest auto market, a 10% increase compared to the same period last year.
Hyundai pointed out that it’s significantly outpacing the German electric vehicle market, which accounts for about 17.5% of registrations.
Hyundai Inster EV (Source: Hyundai UK)
The Inster EV is Hyundai’s most affordable electric SUV in Germany, starting at 23,900 euros ($28,000). It features a driving range of up to 370 km (230 miles) on the WLTP cycle, fast charging (10% to 80% in 30 minutes), and advanced features such as vehicle-to-load (V2L).
Hyundai’s EV lineup in Germany includes the Inster EV, Kona Electric, IONIQ 5, and soon the refreshed IONIQ 6 and new IONIQ 9 will be launched.
Hyundai Inster EV (Source: Hyundai Germany)
In the overall European market, the Inster EV was the 19th best-selling EV in June. With 3,322 registrations, it outsold the Dacia Spring (3,264) and the Toyota bZ4X (2,848).
Hyundai sells the Inster EV under the name Casper Electric in its home market of South Korea. Unfortunately, the low-cost electric SUV is not set to launch in the US.
For those of you in the US, the Hyundai IONIQ 5 remains one of the most affordable EVs on the market. With leases starting at just $179 per month, it may just be the best EV deal available. The IONIQ 5 is coming off its best sales month in the US yet, with 5,818 units sold in July.
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Tesla used car prices continue to plummet, while the average used car price is increasing. Despite being considered a premium brand, used Tesla vehicles are now cheaper than the used car sale price.
However, when the market started to recover in March 2025, Tesla’s used car prices didn’t. It continued to drop.
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In fact, it has now dropped so much that the average used Tesla vehicle costs less than the average used car on Car Gurus:
This is unprecedented. Although the brand has taken a significant hit over the last year, Tesla is still regarded as a premium brand in the industry. The fact that its average used car sale price would dip below the industry average, which includes inexpensive mass-market vehicles, is quite exceptional.
Used Tesla car prices are now down 4.59% year-over-year, compared to the market average being up 1.22%:
Make/Model
Avg Price
Last 30 days
Last 90 days
Year over Year
CarGurus Index
$28,039
+0.19%
+1.22%
+1.22%
Tesla
$27,814
-1.75%
-4.59%
-4.59%
All Tesla vehicles are down year-over-year, with the Cybertruck unsurprisingly leading the charge.
However, Cybertruck has started to recover in the last few months, along with Model 3.
The Model Y, which is by far Tesla’s most popular model by volume, is dragging the average down as it continues to fall:
Make/Model
Avg Price
Last 30 days
Last 90 days
Year over Year
Cybertruck
$83,963
+0.88%
+0.3%
-30.44%
Model 3
$23,318
+0.2%
+0.75%
-8.04%
Model S
$26,534
-5.48%
-9.53%
-22.61%
Model X
$37,747
-2.33%
-9.24%
-16.8%
Model Y
$29,216
-0.49%
-0.68%
-11.97%
Electrek’s Take
Many Tesla owners have been selling their used vehicles and switching to new brands, increasing the supply and putting pressure on prices.
I expected this, but I didn’t expect the pressure to be so great that prices would dip below the average used prices.
This is significant.
It’s proof that the Tesla brand has taken a massive reputational hit and there’s no clear recovery in sight.
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