The new EV tax credit will only apply to some Teslas
The Inflation Reduction Act (a sweeping $750 billion health care, tax and climate bill) was signed into law by President Joe Biden.
Included in the package are some incentives that will make buying electric cars in the US more affordable. The caveat is some of the most popular EVs being sold won’t see any difference.
A tax credit of up to $7,500 will be offered to purchasers of new all-electric vehicles and hybrid plug-in vehicles through 2032. For used versions of these vehicles, the plan would also establish a supplementary tax credit worth a maximum of $4,000.
However, the legislation also introduces additional restrictions on who can be eligible for the credit and which vehicles are eligible for it.
For brand-new cars, the manufacturer's suggested retail price for sedans must be less than $55,000 in order to qualify for the tax credit. For SUVs, trucks and vans, the maximum price would be $80,000.
That price cap effectively leaves out the Tesla Model X and Model S, which start at over $100,000, alongside other premium vehicles like the Mercedes EQS, Porsche Taycan, and GMC Hummer. Some of the more expensive configurations of the Tesla Model 3 won't qualify either.
Which Tesla Models Qualify
The only Model 3 that would currently qualify is the entry-level, rear-wheel drive model, which costs around $47,000. This model would be able to take full advantage of the federal tax credit.
Tesla recently discontinued orders for the all-wheel drive Model 3 Long Range model, which could have made the $55,000 cutoff if it received a small price reduction. It'll be interesting to see if Tesla begins to offer that model again in the near future.
The Model 3 rear-wheel drive is the only Tesla that is currently sold for under $55,000. Luckily Tesla's Model Y vehicles are classified as SUVs and will also classify under the truck, vans and SUV portion of the tax credit.
Since SUVs can cost up to $80,000 USD and still qualify for the full tax credit, both Model Ys will qualify as well, including the Performance model which currently comes in at just under $70,000.
Model 3 RWD
Model 3 Performance
Model Y Long Range (AWD)
Model Y Performance
Model S Plaid
Model X Plaid
This is significant, given that the Model Y and Model 3 are currently the most popular EVs in the United States. In the first half of 2022, more Model Y and Model 3s were sold in the United States than the combined sales of the next ten most popular EVs.
Used electric vehicles must be at least two model years old in order to qualify. The price cap would be $25,000 and the credit would be limited to the lesser of $4,000 or 30% of the cost of the vehicle.
Other hurdles include a requirement for the final assembly needs to be in North America. That should exclude EVs manufactured by Hyundai Motor, Kia, Audi, and Polestar Automotive. Those firms assemble EVs sold in the U.S. in Asia and Europe.
Additionally, the criteria for the EV purchase credit will alter. For instance, there are specifications for the locations of battery pack assembly and the sourcing of battery components. Those specifications appear to be intended to strengthen the American EV supply chain. Around 2024, these new complexities go into effect. The list of approved automobiles is maintained by the Treasury Department.
It's important to note that the existing $7,500 tax credit, which was established in 2008 and 2009 in order to encourage the adoption of electric cars, included a phase-out provision that would apply if a manufacturer sold 200,000 of the vehicles.
Tesla reached that mark in 2018, and as of right now, its electric vehicles are not eligible for the tax credit. The same applies to General Motors and Toyota (including its Lexus brand). But thanks to the revised bill's removal of the 200,000 sales cap, their electric cars would once again be eligible for the credit.
Additionally, single taxpayers with modified adjusted gross income beyond $150,000 would not be eligible for the credit. This income cap would be $300,000 for married couples filing jointly and $225,000 for single people filing as heads of household.
It might seem like a smart idea to purchase an electric vehicle right now given all the changes to the EV tax credit. However, bear in mind that several benefits, such as the removal of manufacturer limitations and the application of the credit at the time of sale, won't take effect until 2024 or the next year.
Even though this modification to the tax incentives will make the already difficult to navigate EV market much more complicated in the immediate term, in the long term it will be great news for customers, especially middle-class mainstream consumers who later on can purchase more affordable EVs.
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A glance at X at any moment reveals a continuous stream of fresh, intriguing, and sometimes eccentric content revolving around the Cybertruck. Since its production debut in December 2023, Tesla's latest sensation has commanded attention. Cybertruck's presence grows with each new owner, spawning a flurry of YouTube videos, social media posts on X, and articles across news outlets.
Bullet Test: Adin Ross's Impact
YouTuber Adin Ross recently subjected the vehicle to gunfire, testing its ability to withstand ballistic impacts. Ross's video, which gained significant traction online, captured the Cybertruck enduring 9mm ammunition without sustaining critical damage, further validating Tesla's claims of creating an apocalypse-proof vehicle. While such extreme tests may seem unconventional, they underscore Cybertruck's reputation for toughness and resilience in challenging environments.
Thwarting Break-In Attempts
Beyond its celebrity allure, the Cybertruck has proven its practicality in real-world scenarios, demonstrating its resilience against break-in attempts. Recent incidents have highlighted the vehicle's robust construction, with its stainless steel exterior and shatter-resistant windows effectively deterring vandalism. Despite attempts to breach the vehicle's security, the Cybertruck emerged relatively unscathed, reaffirming its status as a reliable choice for safety-conscious consumers.
Snow Trax Modification
One of the most captivating developments surrounding Cybertruck is the innovative CyberTrax modification, spearheaded by automotive modification luminary Dave Sparks. With an eye for adventure and a penchant for pushing boundaries, Sparks has embarked on a project that promises to transform the Cybertruck into a snow-conquering beast. The CyberTrax modification, aimed at enhancing the vehicle's off-road capabilities, has garnered widespread attention and support, even earning recognition from Tesla itself.
I was trying to hold off on posting any videos of the CyberTrax until we had the full YouTube video ready to go but I’m impatient and really just wanna share it with you right now, so here ya go….enjoy 😎
The Cybertruck's durability extends beyond security features, as evidenced by its performance in road accidents. In instances of rear-end collisions, the vehicle's stainless steel exoskeleton has shown remarkable resilience, minimizing damage and ensuring occupant safety. While concerns persist regarding the lack of a traditional crumple zone, Cybertruck's design philosophy prioritizes structural integrity, providing peace of mind for drivers in unforeseen circumstances.
Celebrity Ownership Expands
The list of celebrities acquiring a Cybertruck continues to grow. Music icon, Jay-Z and Beyoncé's recent purchase of a Cybertruck, styled in a sleek matte black finish reminiscent of a Batmobile, made the roads on social media. The power couple's endorsement of the Cybertruck reinforces its status as a symbol of luxury and innovation in the automotive world. Their Cybertruck delivery came just days after Kim Kardashian lit up social media with her “Cool Car Pool Mom” post.
Jay-Z and Beyoncé have been Tesla owners and fans for many years. That's why I am more than happy that they got the Cybertruck before everybody else ❤️ pic.twitter.com/Hc61ILKMIZ
Edmunds put the Cybertruck to the test, equipped with all-terrain tires. The vehicle surpassed initial estimates by covering 334 miles (537km) on a single charge, outperforming advertised figures and showcasing its efficiency on the road. For more range, Tesla has a range extender available.
Ramping Up Production and Expansion
As Tesla continues to ramp up production of the Cybertruck, anticipation grows for its availability in international markets. With early units already sold in the U.S., Tesla's Vice President of Public Policy and Business Development has confirmed plans for expansion into Canada, signaling further growth opportunities for the electric pickup. Despite regulatory challenges in certain regions, Tesla remains committed to delivering the Cybertruck's innovative design to a global audience.
In conclusion, Tesla's Cybertruck continues to captivate audiences with its groundbreaking performance, celebrity endorsements, and ongoing advancements. From surpassing range expectations to withstanding gunfire, the Cybertruck has proven its mettle in various real-world scenarios, reaffirming its status as a revolutionary addition to the automotive landscape.
Tesla has added a new menu to its app that organizes various settings
Today, Tesla has updated its app to introduce a new menu that reorganizes vehicle, home energy, and account settings in a more logical and more discoverable manner.
Tesla updated its app to version 4.30 back on February 15th for iOS and followed suit with an Android update shortly thereafter. The app update included some significant changes such as a new Home Energy demo, Wall Connector charging charts, and a better view of your last Supercharger session.
However, the addition of the new menu arrived today thanks to under-the-hood changes Tesla had already made.
Tesla has added a presumably AI-based chat assistant to help out with common customer queries. The assistant button can be found in the support section of the app, which is now accessed by tapping on the new menu at the top right corner of the app. Once the menu is open, tap the question mark icon to open the support section. At the bottom of the screen, you should see a chat bubble that will bring up the chat assistant.
Tesla added a chat assistant to its app
The assistant starts by asking you which product you need help with. Afterward, you can ask it any question. Right now the assistant appears to bring up mostly relevant parts of the owner’s manual or Tesla’s support pages, without necessarily answering the question directly. For example, asking it a specific question such as ‘Until what state of charge will Sentry Mode remain activated?’ will bring up a section about Sentry Mode, and not immediately reveal that Sentry Mode will automatically turn off when the vehicle reaches 20% state of charge.
It’s not immediately clear whether Tesla is using AI for this feature, but providing an assistant is a great idea and one that will likely ease the burden on Tesla service. Hopefully, Tesla will continue to build upon the feature so that it becomes more useful and can answer customer questions directly.
The changes in the latest Tesla app don't require an app update
The main change in the app is the new menu which replaces the user's profile picture.
Since this area was already used to change Tesla account and app settings and Tesla product preferences, the menu icon is more intuitive than an avatar.
However, after tapping into the menu, the user is greeted with a completely reorganized section. Instead of featuring horizontally scrolling tiles for different products and features, which was getting fairly long, Tesla has consolidated the features and now presents them vertically.
In the new profile section, Tesla has grouped lumped in account information and app settings. This includes personal information, order history as well as app settings, including calendar sync and app notifications.
Charging is now a top-level feature instead of being buried in the Account section. This section highlights your most recent Supercharger charging session which was redesigned during the 4.30 app update. It also lets you manage your payment method and view your Supercharger history.
My Products is the new way to add or remove Tesla products from your account. It now nicely displays all of your existing Tesla products and lets you dig into each one. By diving into each product, you're able to give access to another user, remove the product from your Tesla account if applicable, rename the product, or jump into the product view.
Vehicle and Home Screens
If you have a Tesla vehicle and a Home product, such as Solar or a Wall Connector, the way to switch between products is to swipe to the side. However, this wasn't very intuitive and Tesla has now added a dropdown next to the Home or Vehicle name that brings up a quick menu that lets you jump to other products.
If you already have app version 4.30, there's no need to update your app, just open the existing app and you should see the new menu in the top right. However, if you're still on Tesla app 4.29.5 or earlier, head over to the app store and upgrade to the latest Tesla app to see these new features.
TeslaFi logs your drives and charging sessions, letting you keep a log of your vehice's activity. We highly recommend checking them out if you use your car for business trips and would like to keep track of reimbursements, if you like to see how much you spend on charging or if you just love statistics. Visit their site and see everything they have to offer!
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Tesla Android Project enables you to run Android apps in your Tesla. The platform is Open Source and you can deploy it on your own Raspberry Pi 4. Consider supporting the initiative by donating or purchasing the Compute Module 4 Bundle that delivers the best experience. Get $20 off by using the code: NotATeslaApp
The official Tesla app only notifies you if your car is broken into. By installing Sentry Pro on your phone, you will be notified for all Sentry Mode events. Stay connected and avoid potential surprises by receiving notifications. Stop constantly checking the cameras to ensure safety. Check only when necessary, save battery and get peace of mind. Get a 7 day free trial here!