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Last week, the IRS updated the EV tax credit with new battery sourcing requirements set to go into place on April 17, with the effect of lowering purchase credit amounts for many new EVs.

But since the law defines individual and commercial credits differently, those requirements – along with MSRP and income requirements – can be bypassed on consumer-leased vehicles.

The Inflation Reduction Act changed the way EV tax credits are defined, making them simultaneously more complicated and more restrictive but also increasing their availability to more total vehicles in the long run.

There are a lot of new requirements, including maximum MSRP (which differs for cars and trucks/SUVs), income limits for taxpayers, and new battery requirements. Plus, cars need to be assembled in North America to qualify. This means several vehicles no longer get a tax credit after the changes last August.

The tax credit is also nonrefundable, which means that taxpayers need to make enough money to have $7,500 of tax liability to be reduced, but not enough to be above the income limit. Additionally, taxpayers need to wait until they file their taxes in order to take advantage of the credit, which means they have to front the $7,500 and get it back later. But both of these downsides will be fixed next year when the tax credit is due to become available upfront at the point of sale.

“One simple trick” to bypass tax credit restrictions

But all of these complications can seemingly be avoided with one simple trick! – leasing.

Per an IRS note from December, EVs can avoid the foreign-assembly restriction of the law if they are leased, not purchased. This interpretation was originally pushed for by South Korean automakers who felt jilted by the domestic assembly provisions of the Inflation Reduction Act. Hyundai and Kia have been the best-selling non-American EV brands in the US with their excellent Ioniq 5 and EV6 (built on the E-GMP platform), so these changes threatened to take the wind out of their sails (and sales).

The reason for this is due to two different sections of the law: 30D and 45W. Section 30D deals with individual purchase credits, and 45W deals with commercial credits. One is meant to stimulate personal vehicle purchases, while the other is intended to stimulate large commercial EVs like buses and dump trucks but also smaller vehicles for purchase or lease in commercial fleets.

All of the aforementioned restrictions are only present in section 30D of the law, not section 45W. Commercial vehicles can be over 80k MSRP, they can be assembled outside of NA, their battery sourcing isn’t as controlled, and buyers can make more than $150k income.

The “loophole” comes in due to the IRS’ December interpretation of how leases are categorized. IRS states in their fact sheet (topic G, Q5) that businesses that lease vehicles are allowed to claim the commercial EV tax credit for each leased vehicle. This means that as long as the vehicle fulfills the relatively minor requirements of 45W (and is a “bona fide lease” as laid out in Q6 of the same fact sheet), then a lessor (i.e., a dealership) can file for the $7,500 EV tax credit. This applies regardless of whether the lessee is a business or an individual.

Presumably, then, the lessor would be able to pass along those savings in the form of reduced lease payments.

Some brands already offering $7,500 off leases

So far, this particular workaround has not gotten much press. Since these credits are filed for on the back end by dealerships and don’t really require action from the consumer, it’s up to dealers to notice this and offer lease discounts.

But consumers should still know about these deals, as EVs are often cheaper than their MSRP might suggest. For many years, under the old credit, you’d routinely see an EV with around $30k MSRP leasing for approximately $199 per month.

A few manufacturers have already started offering lease discounts. Hyundai is offering significant discounts on the Hyundai Kona EV and the excellent Hyundai Ioniq 5. Polestar has a “Clean Vehicle Lease Rebate” on the Polestar 2 (which it says will expire May 1, though there is nothing in the law suggesting that will happen), and Lucid offers $7,500 off on leases as well. Tesla’s head of policy recently acknowledged that the law allows for this interpretation, but Tesla hasn’t announced any specific lease discount.

As word gets out about this workaround, we would hope to see more companies offer lease discounts and for EV leasing to perhaps become more prominent, especially among those brands that don’t qualify for the full EV tax credit. For example, the Chevy Bolt EV and Bolt EUV, the Ford Mach-E, E-Transit, Escape PHEV, and Corsair PHEV, and the standard range Tesla Model 3 are all expected to have their credit amounts reduced come April 17.

But for all of these cars, due to the way the commercial tax credit works, it looks like leasing could give access to the full $7,500. It’s just on the dealers to file for it and pass it along to the consumer.

However, given that the EV market is still impacted by high demand and low availability, some brands and dealers may think they don’t need to pass along these savings because they’ll be able to sell or lease cars regardless to a populace that ravenously demands the limited available supply. We’re not seeing those “$199 per month” EV lease deals that we used to see (and which we catalog here on Electrek) because EV demand is just so high right now.

Hopefully, if EV demand starts to normalize, this will be reflected in EV lease prices. Then, we might see some big growth in EV leasing as consumers see that better deals are available.

But EV demand might not normalize until ICE cars die out, which is a trend we’re seeing signs of in China right now and which could repeat in other markets as well.

Electrek’s Take

We noticed this “loophole,” if you want to call it that, a little while ago but thought it was too good to be true. If leasing means the foreign assembly provision could be bypassed, as we learned in the IRS note in December, then why can’t other 30D provisions be worked around?

But this isn’t necessarily solely a positive development. On the one hand, it makes the process much simpler for the consumer since you can just lease any car, and the tax credit gets dealt with by someone else. No need for a fancy flowchart; just go in and get a cheaper lease.

But on the other hand, it also undermines the whole point of the law. The IRA was passed to encourage domestic manufacturing, particularly of green vehicles. And it has done so – the Biden Administration says that $45 billion in EV manufacturing investments have been made since the law was passed, and it looks like there’s more to come.

These boosts in manufacturing are important, because as mentioned above, EV supply lags far behind EV demand, and I believe the best way to accelerate EV adoption is to actually start building them. Knowledge of this workaround could jeopardize the strides we’ve made in EV manufacturing commitments.

If companies can easily get around those domestic assembly provisions with a lease, then that could give them less incentive to accelerate their domestic EV manufacturing plans. US Senator Joe Manchin, who was instrumental in crafting the domestic assembly provisions of the IRA and getting the law passed in the first place, has spoken out against this lenient interpretation of the commercial credit, even calling it a “betrayal.”

That said, leasing makes up a small percentage of the car market (less than one-fifth) and an even smaller percentage of the EV market (about one-tenth). Many consumers just would rather not lease. There are plenty of people who could get away with – and even save lots of money from – not owning a car. But part of the psychological draw of owning a car is the idea of freedom that it gives you, and leases take away some of that freedom – it’s not your car, and you’re not allowed to use it exactly how you want: mileage restrictions, worries about penalties for scratches or dings at lease end, etc.

So there’s still some incentive for manufacturers to announce more car and battery factories since it’s unlikely that leasing will make up a majority of EV sales, even with big incentives. Even when lease deals were rampant, they still didn’t make up a majority of EV sales.

Of course, demand is still much higher than supply. So companies should be announcing car factories and battery factories everywhere all the time. Nobody is ramping up fast enough, so they should all take any excuse to ramp up faster, both due to the market and the ever-important threat of climate change.

So even though everything about these tax credits has been somewhat, let’s say, “inartful” in its implementation, I think, on the whole, we’ve gotten close to an end-point of a law that expands the availability of tax credits to more people, while still also encouraging increased domestic manufacturing and a multipolar EV manufacturing environment. This will have beneficial aspects both for US EV adoption and for the industry in general.

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Podcast: Tesla texting and driving, Trump kills mpg, Aptera update, and more

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December 5, 2025

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Podcast: Tesla texting and driving, Trump kills mpg, Aptera update, and more

electrek podcast

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla allowing texting and driving on FSD v14, Trump killing CAFE’s MPG standard, an Aptera update, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:


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Kia EV2 sheds camo, giving us our best look at the new SUV [Image]

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December 5, 2025

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Kia EV2 sheds camo, giving us our best look at the new SUV [Image]

Kia-EV2-spotted-camo

Kia’s most affordable electric SUV will be here in just over a month. Ahead of its debut, the EV2 was spotted with light camo, offering our best look yet.

Kia EV2 looks more like an SUV with less camo

Just days after Kia confirmed the EV2 will debut at the Brussels Motor Show on January 9, 2026, the small electric SUV was spotted in Europe with barely any camo.

The EV2 is a fully electric B-segment SUV set to be Kia’s new entry-level EV. It will sit below the EV3, which is already the UK’s most popular retail electric vehicle and among the top-sellers in Europe.

“With the EV2, we reaffirm our commitment to make electric mobility truly accessible to a broader audience,” Kia Europe president and CEO, Marc Hedrich, said earlier this month.

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Despite its compact size, the EV2 looks and feels much bigger in person. It has a similar high-riding, blocky design as Kia’s latest electric SUVs, such as the EV5 and three-row EV9.

Kia-EV2-teaser-affordable-EV
Kia EV2 teaser (Source: Kia)

In the teaser images Kia posted a few days ago, the EV2 was shown under a drape with a design that looked nearly identical to the EV2 Concept from earlier this year.

Now, we can finally confirm it. The Kia EV2 was recently spotted in Europe in light camo, rocking a tall, SUV-like stance. The latest image from KindelAuto gives us a solid look at its profile, which still resembles a mini EV5 or EV9.

Kia will begin EV2 production alongside the EV4 hatch at its Zilina, Slovakia, plant shortly after its debut at the Brussels Motor Show next month, ramping up output throughout 2026.

Although Kia has yet to reveal specifics, the EV2 is expected to be about 4,000 mm (157″) long, or slightly smaller than the EV3 at 4,300 mm (169.3″). It will be closer in size to the Hyundai Inster EV.

Kia-EV2-most-affordable-EV
The Kia Concept EV2 at IAA Mobility 2025 in Munich (Source: Kia)

Prices are expected to start at around €30,000 ($35,000) in Europe, given that the EV3 starts at about €36,000 ($42,000).

The compact electric SUV is expected to ride on Hyundai’s E-GMP platform, with similar battery pack options as the EV3. The EV3 is available with 58.3 kWh and 81.4 kWh battery options, delivering a WLTP range of 410 km (255 miles) and 560 km (348 miles), respectively.

The EV2 will debut at the Brussels Motor Show on January 9, 2026. Kia will hold a press conference at 10:40 am CET to introduce the new entry-level EV. Check back for updates leading up to the event.


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Segway Christmas Holiday Sale drops EV prices by hundreds to lows from $150, EcoFlow expansion battery flash sale, more

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December 5, 2025

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Segway Christmas Holiday Sale drops EV prices by hundreds to lows from 0, EcoFlow expansion battery flash sale, more


We’re ending this week’s Green Deals with a mix of new holiday events alongside ongoing Black Friday/Cyber Monday deals, headlined by Segway’s Christmas Holiday Sale that gives you hundreds in savings on popular EVs, like the ZT3 Pro All-Terrain Electric Scooter back at its $850 low, among many others. There’s also EcoFlow’s latest Cyber Week flash sale (ending tonight) that gives you up to 62% savings on an expanded DELTA 2 Max Power Station bundle and three battery bundles – at new lows starting from $329, as well as Ride1Up’s extended Cyber Monday Sale (lasting through the weekend) with up to $600 savings on an expanded lineup of e-bikes and extra batteries starting from $195, and much more waiting for you below. And don’t forget about the hangover deals from the holiday event and this week that are collected together in our Black Friday/Cyber Monday Green Deals hub, which we have updated over the week, like yesterday’s EcoFlow RAPID + 25W MagSafe Christmas promotional deals, the new low price on Anker’s SOLIX C300 DC 90,000mAh power station (ending tonight), and more.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Cross Segway e-scooters and e-bikes off gift lists with hundreds of savings for Christmas Holiday Sale – models start from $150

It didn’t take much time at all for Segway to change lanes from its Black Friday event into the now live Christmas Holiday Sale that saves you hundreds on the brand’s EVs, including the returning pricing on the ZT3 Pro All-Terrain Electric Scooter at $849.99 shipped, which matches the pricing over at Amazon. While it may carry a $1,300 MSRP from Segway, you’ll more often find it down around $1,000 instead, especially at other marketplaces like Amazon, with this same low rate having previously appeared during July and October’s Prime Day events, as well as the most recent Black Friday sale. Now, you’re getting a longer period of getting it at this all-time low price, complete with $150 off the going rate (and $450 off the MSRP). Head below to learn more about it and the other models included in the Segway’s Christmas Holiday Sale.

Segway’s ZT3 Pro electric scooter is a solid all-terrain option that can certainly go the distance, as many riders are learning while riding around on them through the streets of NYC, with the full suspension and additional 6 inches of deck clearance from the ground serving urban riders well on more pothole-lined streets. What’s more, in a city so massive and populated, having the included Apple Find My and auto-proximity locking/unlocking functionality definitely adds peace of mind should you ever be leaving it unattended for a set amount of time.

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The whole system – which includes a 1,600W brushless motor as its heart – comes powered by a 597Wh battery, providing up to 43.5 miles of commuting assistance at speeds as high as 24.9 MPH. Another nice feature is the regaining of 6.2 miles for just 30 minutes of charging, allowing you to get moving faster to tackle last-minute plans. Along with everything already mentioned, there’s also 11-inch tubeless tires, a Segride stability enhancement system, a traction control system, six inches of extra clearance from the ground, and more.

Segway’s Christmas Holiday Sale gifts ‘made to wow’

Segway’s commuting Christmas Holiday Sale gifts under $750

  • E2 Plus II Electric Scooter: $280 (Reg. $350) | matched at Amazon
    • 15.5 MPH for up to 16 miles
  • DLX2 Pro Electric Scooter: $380 (Reg. $500)
    • 18.6 MPH for up to 24.9 miles
    • Traction Control System, Apple Find My, more
  • MAX G30LP Electric Scooter: $450 (Reg. $600) | buy used at Amazon
    • 18 MPH for up to 25 miles
  • MAX G30P Electric Scooter: $550 (Reg. $1,000) | not available at Amazon
    • 18 MPH for up to 40 miles
  • E3 Pro Electric Scooter: $600 (Reg. $700)
    • 20 MPH for up to 34 miles
    • Traction Control System, Apple Find My, app/passcode locking, more
  • Max G2 Electric Scooter: $700 (Reg. $1,000) | matched at Amazon
    • 22 MPH for up to 43 miles
    • Traction Control System, Apple Find My, more
  • F3 Electric Scooter: $750 (Reg. $1,000) | matched at Amazon
    • 20 MPH for up to 44 miles
    • Traction Control System, Apple Find My, auto proximity locking, more

Segway’s other Christmas Holiday gift deals

  • ZT3 Pro All-Terrain Electric Scooter: $850 (Reg. $1,000)
    • 25 MPH for up to 43.5 miles
    • Traction Control System, Apple Find My, auto-proximity locking, more
  • MAX G3 Electric Scooter: $1,100 (Reg. $1,300) | matched at Amazon
    • 28 MPH for up to 50 miles
    • Traction Control System, Apple Find My, auto proximity locking, more
  • GT3 SuperScooter: $1,500 (Reg. $1,900) | matches at Amazon
    • 31 MPH for up to 45 miles
    • Traction Control System, Apple Find My, auto proximity locking, more
  • Xafari Electric Bike: $1,800 (Reg. $2,400)
    • 20 MPH for up to 88 miles
    • Traction Control System, Apple Find My, auto proximity locking, and much more
  • Xyber Electric Bike: $2,900 (Reg. $3,300)
    • 35 MPH for up to 112 miles
    • Traction Control System, Apple Find My, auto proximity locking, and much more

And be sure to check out all the hangover November shopping holiday deals while they last through the weekend, which we’ve collected into our Black Friday/Cyber Monday Green Deals hub here.

man reading book while camping with EcoFlow DELTA 2 Max power station and expansion battery

EcoFlow Cyber Week flash sale cuts up to 63% off expanded DELTA 2 Max bundle + batteries at new lows from $329 (ends tonight)

As part of EcoFlow’s ongoing Cyber Week Sale, the first of this new extended event’s flash sales has officially launched with up to 63% savings on three expansion battery bundles and alongside the DELTA 2 Max Portable Power Station bundled with a smart extra (expansion) battery for $1,369 shipped. This flash deal lasting through tomorrow night (Friday, December 5) beats out its Amazon pricing by $130 and its direct Cyber Week pricing by $230 (which does offer a $99 waterproof bag for FREE). While this bundle carries a $3,298 MSRP direct from the brand, you’re more likely to find it down around $2,149 at full price elsewhere, with it having kept between $1,699 and $1,499 since late September, with all the sales. Discounts have previously gone as low as $1,424, but these flash savings are cutting a larger than ever $780 off the going rate (and $1,929 off the MSRP) and landing it at a new all-time low price.

If you want to learn more about this expanded bundle, or the three other flash offers, be sure to check out our original coverage of these deals before they end tonight at midnight.

man riding Ride1Up Revv1 DRT Off-Road e-bike through grass field

Extended Ride1Up Cyber Monday sale continues up to $600 savings on e-bikes and extra batteries from $195

Ride1Up has an ongoing Cyber Monday Sale with up to $600 savings on e-bikes and extra batteries, which doesn’t provide any end dates, but is likely following the trend we’ve seen from several other brands and continuing through the weekend. Among the bunch, one model that is getting more and more attention from riders is the Revv1 DRT Off-Road e-bike that is down at $2,295 shipped. Normally running at $2,595 without discounts, we mostly saw sales bring the cost down to $2,495 or $2,395 over 2025, with more recent events seeing returns to the $2,295 low. That low price circled back around the track for Black Friday and Cyber Monday, with it holding strong for an unknown time longer at the best price tracked, courtesy of the $300 markdown.

You can learn more about this specific e-bike in our hands-on review here, or within our original coverage of this extended sale here, which includes the full lineup of deals.

split image of Allpowers SOLAX P100 mini power station in suitcase and being hand carried
woman making compost with East Oak's compost tumbler
patio lined with Govee S14 Outdoor String Lights 2

Best Fall EV deals!

Best new Green Deals landing this week

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.


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