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For years, Norway has been the poster child for electric vehicle adoption, a perfect example of how a combination of ambitious goals and robust incentives can transform a nation’s entire automotive industry.

Now, with the country on the cusp of achieving its goal of 100% all-electric new car sales by 2025, the Norwegian government is signaling a new phase in its EV strategy, proposing changes to its incentive program that include the introduction of taxes on electric vehicles.

We have often used Norway’s success in electrifying its vehicle fleet as an example of how quickly the electric transition can impact the automotive market under the right conditions.

They made it happen through a comprehensive package of incentives, including exemptions from purchase taxes and VAT, free access to toll roads and bus lanes, on top of properly taxing internal combustion engine vehicles.

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This resulted in EVs being the preferred choice for a vast majority of new car buyers. In 2024, a staggering 88.9% of new cars sold in Norway were all-electric, a figure that has continued to climb in 2025.

Gasoline and diesel cars are now obsolete in the Norwegian new car market, with a few hundred new cars per month, while EVs represent roughly 95-97%.

Finance Minister Jens Stoltenberg has announced mission accomplished (via Reuters):

“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved.”

With the finish line in sight, the Norwegian government is now fine-tuning its approach.

The current incentive program maintains the crucial VAT exemption for EVs, but only up to a purchase price of 500,000 Norwegian kroner (approximately $49,000 USD). This move is designed to target more expensive, luxury EVs, ensuring that the incentive benefits a broader range of consumers.

However, the latest budget proposal aims to reduce the EV tax exemption to vehicles costing 300,000 Norwegian kroner (~30,000 USD).

This would apply for 2026, and then the tax exemption would completely end in 2027.

Additionally, the government plans to increase taxes on new gasoline and diesel cars, further widening the cost gap between polluting and zero-emission vehicles.

However, the proposal still needs to be adopted by Norway’s government, and there is some opposition.

EV associations are advocating for a more extended phase-out period to ensure that the adoption rate doesn’t decline.

Electrek’s Take

For EV enthusiasts such as myself, Norway’s journey has been a source of inspiration and a powerful argument against the claims of EV detractors. The country has proven that with the right policies, a rapid and comprehensive transition to electric mobility is not just a distant dream but an achievable reality.

That said, I do understand that Norway has a lot going for it. It is wealthy. And therefore, it made the transition easier than in most other markets.

Regarding the policy changes, I wouldn’t interpret them as a sign of retreat from the country’s electrification goals. Instead, they represent a maturation of Norway’s EV policy.

The proposed changes to Norway’s incentive program are a logical next step in this evolution. As the EV market matures, it’s natural for governments to reassess and adjust their policies. The key is to do so in a way that doesn’t derail the progress that has been made.

However, I do agree with the local EV advocates that it would make sense to extend the phase-out to ensure the market maintains its current near-100% EV rate for a few years.

The rest of the world has much to learn from Norway’s experience. The country has provided a blueprint for how to kickstart an EV revolution, and now it is showing us how to manage the transition to a fully electric future.

The message from Norway is clear: the age of the internal combustion engine is over. The future of transportation is electric, and it’s happening now.

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Subaru is jumping into the electric hot hatch craze

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Subaru is jumping into the electric hot hatch craze

Subaru is teasing a new electric hot hatch that will spearhead a new generation of STI. Is it the WRX STI we’ve been waiting for?

Subaru teases new electric hot hatch

In March 2022, fans were disappointed after Subaru announced plans to end production of the gas-powered WRX STI.

Subaru said the move was due to the shift toward electrification and stricter emissions regulations in places like Europe.

Although the Japanese automaker said at the time it was exploring opportunities for a next-gen WRX STI, including an electrified version, Subaru confirmed it will not be produced on the new WRX platform.

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It’s been over three and a half years, but we might finally see the WRX STI return in electric form. After teasing a new electric hot hatch on Wednesday, Subaru said the Performance-E STI concept will spearhead a new generation of vehicles.

The image offers a glimpse of Subaru’s new design with slim, three-line LED lights and a sportier roofline compared to the internal combustion engine (ICE) version that Subaru also previewed.

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Subaru teases new Performance-E STI concept ahead of the Japan Mobility Show (Source: Subaru)

Subaru is keeping most details secret for now, but said the new electric hot hatch offers “a design that evokes the brand’s heritage while providing a driver-friendly layout and a comfortable, spacious interior.” It will be equipped with new tech, offering “intuitive, exhilarating driving experiences,” the company said.

Subaru will unveil the new STI concepts at the Japan Mobility Show later this month. Atsushi Osaki, Subaru’s president, will deliver a press conference at the Subaru booth on October 29 at 12:30 PM (JST).

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Subaru teases two new STI concepts, an EV and an ICE version (Source: Subaru)

The booth will feature the two new STI models, alongside the Trailseeker, Subaru’s second global EV. It will also showcase more rugged Forester Wilderness and Outback Wilderness prototypes, as well as a 1982 Subaru GL Family Huckster.

Subaru is joining Hyundai, Volkswagen, Kia, and a few other automakers planning to introduce new electric hot hatches.

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Tesla is finally running TV ads, but they are not for its electric cars

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Tesla is finally running TV ads, but they are not for its electric cars

Tesla is finally running TV/streaming ads, but they are not to sell electric cars. They are to promote a vote for Tesla shareholders to approve Elon Musk’s next compensation package worth up to $1 trillion.

As a company, under Elon Musk’s leadership, Tesla has famously been against advertising. The CEO is even on the record saying that he “hates advertising” and that “other companies spend money on advertising and manipulating public opinion, Tesla focuses on the product.”

However, that was before he acquired Twitter, now X, which relies heavily on advertising.

After that, he started to push Tesla to do some advertising, but the company quickly stopped or greatly reduced its advertising efforts.

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Last month, we reported that Tesla’s advertising effort picked back up with ads to encourage Tesla shareholders to vote for Musk’s new unprecedented CEO compensation package worth up to $1 trillion.

The renewed advertising effort was limited to Google and social media ads or sponsored posts, which was also the case in Tesla’s previously mentioned advertising efforts.

Now, Tesla is even running TV-like ads on streaming services. Paramount+ watchers were surprised to see this ad running on the streaming service this week:

This is one of the very first TV-style video ads that Tesla is paying to air, but it is not to sell EVs.

While the automaker is struggling to sell its existing vehicles, the ad exclusively features future products that are not yet available for sale, and it serves only to ask shareholders to vote in accordance with the board’s recommendation at the upcoming shareholders’ meeting.

Electrek’s Take

It’s funny because I was talking to a friend of mine who came back on a long rural road trip with his Cybertruck last week.

He was saying that he was surprised how many people in rural areas not only didn’t know about the Cybertruck, but they didn’t even know much about Tesla. Yet, they were curious about it and electric vehicles in general.

We were discussing how these people are not as active on social media, and that Tesla would greatly benefit from advertising its vehicles in more traditional channels, such as TV/streaming ads, with clear messaging that relates to them, such as the cost of ownership and utility.

I joked that Tesla will do TV ads about Elon’s compensation plan before they do about their EVs. It literally took less than a week for Tesla to prove me right.

There is just no reasonable justification for this. It’s as simple as Elon is bigger than Tesla, a company of 100,000+ people.

You can’t make a viable argument against the fact that this would be money better spent advertising Tesla’s available cars when the company is currently operating its production lines at 60% capacity and the compensation package would be better spent on tens of thousands of full-time employees whose contribution to Tesla is much greater than Elon’s at this point.

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Toyota lands $20 million to bring this pint-sized EV with a solar roof to life

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Toyota lands  million to bring this pint-sized EV with a solar roof to life

Toyota’s smallest electric vehicle might actually hit the road. Thanks to new funding from the UK government, Toyota is one step closer to turning this pint-sized EV with a solar roof into a reality.

The Toyota FT-Me is a micro EV with a solar roof

It may be only 2.5 meters (98″) long, but Toyota believes the tiny electric car could be an affordable way to zip around the city.

The FT-Me is “a ground breaking concept” that blends premium design with affordability, Toyota said after unveiling it in March.

After securing a £15 million ($20 million) investment from the UK government’s DRIVE35 program, Toyota is moving closer to actually launching the pint-sized EV.

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The Advanced Propulsion Centre UK, which manages the funding, announced that the £30.3 million ($40,500) project includes a £15 million grant from the Department for Business and Trade. Toyota is expected to fund the other roughly £15 million.

Toyota is working with several partners, including urban delivery specialist ELM Mobility and the University of Derby, to develop a new lightweight battery electric vehicle (BEV) in the L6e category.

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Toyota FT-Me micro EV (Source: Toyota)

Meanwhile, Savcor will design and develop the solar roof, which Toyota claims can extend a vehicle’s range by 20%, or about 20 to 30 km per day.

The pint-sized EV will be manufactured at Toyota Manufacturing UK’s Burnaston site, where it currently builds the Corolla.

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Toyota FT-Me micro EV concept (Source: Toyota)

Although it’s about the size of a golf cart, Toyota promises the micro EV fits two passengers comfortably. The company also claims the FT-Me’s propulsion system uses 3X less energy per km than current high-capacity electric vehicles.

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The interior of the Toyota FT-Me EV concept (Source: Toyota)

Inspired by a jet helmet, Toyota said the vehicle’s compact design makes it perfect for getting around the city. It only takes up about half a parking spot.

Toyota’s pint-sized EV could arrive as a potential rival to the Citroen Ami. The Ami starts at £7,695 ($10,000) OTR, offering a WLTP range of up to 46 miles.

Would you buy Toyota’s micro EV for about $10,000? It could be a fun (and efficient) way to zip around town. It’s basically a futuristic electric golf cart with a solar roof. Unfortunately, it likely will never make it to the US with America’s growing love for big trucks and SUVs.

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