Tesla’s Model Y could fall foul of new EV tax credit eligibility rules

Certain variants of Tesla’s Model Y may not qualify for the $7,500 federal EV tax credit based on the IRS’s latest guidelines, a situation that Elon Musk has called “messed up.” It looks as though the five-seat Long Range version of the hatchback is too expensive as a car and not considered an SUV, so it falls outside the current guidelines. That could change, though, as the rules won’t be finalized until March 2023.

The IRS has divided vehicles into two categories: vans, SUVs and pickup trucks under $80,000, and other vehicles under $55,000. For the first category, the vehicle must have 4-wheel drive or be rated at more than 6,000 pounds of gross weight. It also has to meet four of five other characteristics, most notably front and rear axle clearances of 18 centimeters or higher and a running clearance of at least 20 centimeters (no Model Y meets these specs).

Tesla Model Y tax credits
Internal Revenue Service

According to the IRS, only the 7-seat variants of the Model Y qualify as SUVs in the category up to $80,000, while the 5-seat vehicles (Long Range, AWD and Performance) are in the $55,000 section. The 7-seaters comfortably fall under the $85,000 limit, but all the 5-seaters exceed the $55,000 price, so they don’t qualify.

 Tesla doesn’t have a specific AWD variant of the Model Y in the US (both the Long Range and Performance models are AWD), so it’s not clear which model the IRS is referring to. The 5- and 7-seat versions cost the same, starting at $65,990 for the Long Range version before destination and order charges.  

Critics are pointing out that far more polluting hybrid vehicles qualify for the tax credits, including two Jeeps, the Audi Q5 e Quattro, BMW X5 xDrive45e and Ford’s Escape PHEV. However, if someone buys a Jeep Wrangler with 56 MPGe (23 MPG after the battery is depleted) instead of a Tesla Model Y with 122 MPGe, then the government clearly isn’t doing the most it can to reduce carbon emissions. The IRS has invited consumers to comment on the matter, and Musk encouraged people to do so in a tweet. 

Chrysler’s future car cabins will be built around partial self driving

Chrysler has yet to deliver an electric car or otherwise leap into the future, but it’s at least willing to hint at what that future will look like. The Stellantis brand is debuting a Synthesis cockpit concept at CES that previews what you can expect in next-generation electric vehicles. Most notably, the two-seat demonstrator is built around Level 3 self-driving technology — that is, it assumes you’ll have your hands off the steering wheel in limited conditions.

The 37.2 inches of infotainment display area provides the usual media and navigation controls, but is also designed to be useful when autonomous driving is active. You can participate in video calls, play games, sing karaoke or even create your own music. It’s not clear how this would integrate with a production car (there’s no steering wheel in the concept), but Chrysler is joining Mercedes, Tesla and other automakers offering in-car productivity and entertainment apps to drivers.

Chrysler Synthesis car interior concept
Stellantis

AI unsurprisingly plays a large role. A virtual assistant syncs your schedule, smart home and weather updates with the car. Synthesis can factor your calendar and charge status into your route, or turn the house lights on when you arrive home. The cockpit can learn your preferences, and recommend restaurants with good charging and parking spaces. Over-the-air updates promise easier improvements for both the cabin tech and the self-driving system.

Chrysler is also hopping on the trend of eco-friendly interiors. Both seats have vegetable-tanned covers with “upcycled” trim, while the instrument panel surface is made entirely from recycled plastics. Even the floor uses responsibly-sourced walnut, Chrysler says. The overall look was inspired by last year’s Airflow EV concept.

It’s not certain just when you’ll see elements of Synthesis in Chrysler cars. However, the company previously said it would introduce its first EV in 2025 and provide a full portfolio in 2028. This still leaves Chrysler trailing behind other vehicle badges (including fellow Stellantis marques like Maserati) that are already adopting EVs and advanced infotainment platforms. However, the American firm appears to at least be solidifying its transformation plans — it won’t lean on hybrid minivans for too much longer.

Volkswagen unveils its upcoming ID.7 EV sedan at CES 2023

Volkswagen’s ID family of electric vehicles, which already includes the highly-anticipated ID.Buzz and more sedate ID.4, grew by one on Tuesday. The German automaker unveiled its ID.7 electric sedan ahead of CES 2023, in a eye-crossing orange and black camo scheme that hides an illuminating surprise. Yes, it lights up. 

That camo is is not randomly generated, each aspect is specifically designed to “create light effects on parts of the vehicle,” VW stated in a recent press release. “This is an interactive feature and symbolizes the next step in the digitalization of the future flagship model of Volkswagen’s EV family.” In all, some 22 sections of paint, all of which are comprised of more than 40 individual layers of paint and electronics, will light up at the driver’s command, or in time to the sound system’s beats. The QR codes painted on the hood and doors will allow authorized users to control the paint job (that’s so weird to write) through their smartphones.

ID.7 in full digital camo. looks like if you took a picture of it, it'd trigger the qr code scanner on your phone.
Volkswagen

The ID.7 is based on the Aero3 concept sedan that we first saw revealed earlier this year and is expected to achieve an all-electric range of 700 km. “With the new ID.7, we are extending our electric model range into the upper segments. The sedan will offer top-class technology and quality. The ID.7 is one of 10 new electric models that we are planning to launch by 2026,” Thomas Schäfer, CEO of Volkswagen Passenger Cars, said in a statement.

ID.7 in full digital camo. looks like if you took a picture of it, it'd trigger the qr code scanner on your phone.
Volkswagen

Details are still scarce regarding hard performance numbers but the company plans to release the ID.7 with an augmented reality head-up display, 15-inch central infotainment screen, digitally controlled air vents — which can be personalized to each passenger and which respond to voice commands — and illuminated touch sliders. The company has not stated when production will begin but did confirm that when the ID.7 does go on sale, it will do so in the Chinese, European and North American markets. 

Tesla delivered over 405,000 vehicles in Q4 2022, setting a new company record

Tesla delivered 405,278 electric vehicles over the final three months of 2022, the automaker announced on Monday. That number represents a new record for the company, but it also fell short of Wall Street estimates. As recently as December 30th, the consensus among most analysts was that Tesla would deliver about 418,000 vehicles in Q4. A year earlier, the company delivered 308,600 cars during the same period.

According to Tesla, the Model 3 and Model Y made up most of the company’s deliveries in the fourth quarter of 2022, with 388,131 of those vehicles making their way to consumers before the end of the year. Comparatively, Tesla’s more expensive Model S and Model X cars accounted for a modest 17,147 deliveries over the same time frame. Tesla produced 439,701 vehicles in the fourth quarter, setting another record.

It’s fair to say the end of 2022 could have gone better for Tesla. Even before considering how much Elon Musk’s takeover of Twitter has hurt the company, Tesla was faced with macroeconomic and logistical challenges threatening to slow growth. As they did earlier in the year, COVID-19 restrictions in China forced Tesla to suspend and reduce production at its Shanghai Gigafactory. Tesla also closed the facility during the last week of December, adding to concerns the company has been dealing with weakening demand in the world’s biggest automotive market. In Q4, Tesla also had trouble securing transportation for completed vehicles.

Separately, Elon Musk’s handling of Twitter and repeat Tesla stock selloffs saw the value of the company’s shares drop dramatically. In December, Tesla’s stock fell 33 percent (and 45 percent over the last six months) before rallying in anticipation of the company’s fourth-quarter numbers. Tesla will publish its full Q4 results on January 25th and hold its next annual Investor Day presentation on March 1st.

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Ford F-150 Lightning prices are going up again

Ford F-150 Lightning prices are going up again. The US automaker is raising the electric pickup’s starting cost by $4,000, bringing the new entry price to $55,974. That’s a 40 percent increase over the electric vehicle’s initial starting price in May 2021.

Ford toldCNBC today that it is changing pricing “as a normal course of business due to rising material costs, market factors, and ongoing supply chain constraints.” Raw material costs of nickel, cobalt and lithium — crucial to electric car batteries — have soared alongside EV demand.

Through the end of November, Ford has only sold 13,258 F-150 Lightning units, but that number is a reflection of supply constraints rather than low demand (on the contrary, the truck is still a hot commodity). The company plans to boost production to 150,000 units by next fall — and it said earlier this week that it’s still on track to meet that goal. It recently added a third shift of workers to a Michigan production plant to help meet that goal.

Ford is the second-biggest American seller of electric vehicles (behind Tesla), and the F-150 Lightning is the top-selling electric truck. Considering Ford F-series trucks have been the best-selling vehicles in the US for three decades, that customer loyalty appears to be carrying over to EVs. Earlier this year, Engadget’s Roberto Baldwin rode along for a test drive and commented on how much it felt like a standard F-150.

South Carolina EV battery recycling plant could salvage parts for a million cars a year

The push to recycle electric vehicle batteries just gained some momentum. Redwood Materials has unveiled plans to build an EV battery recycling plant on the outskirts of Charleston, South Carolina. The roughly 600-acre facility (previewed in a render above) will break “end-of-life” batteries down to their raw metals and rebuild them as the anodes and cathodes that are crucial to EVs. The parts should support up to 1 million EVs per year. That could not only reduce waste, but reduce the costs and risks associated with importing those components from overseas.

The plant will reportedly amount to a $3.5 billion investment that includes 1,500 jobs. Like Redwood’s Nevada campus, the Charleston hub will rely solely on clean energy and all-electric operations. The company claims its approach lowers CO2 emissions for producing the battery components by about 80 percent compared to the output from the usual Asian supply chain.

Construction should start for the South Carolina plant in the first quarter of 2023. The first recycling process should be ready by the end of that year, Redwood says. The company plans to scale afterward.

The locale choice is strategic. Redwood says South Carolina is part of a growing “Battery Belt” where EV cell manufacturing will ramp up to “hundreds” of gigawatt-hours of production capacity by 2030. Its seaside port helps, too. The state further hosts factories for car manufacturers that include BMW and Redwood partner Volvo, so a brand could quickly repurpose spent batteries for vehicles rolling off the line.

More importantly, Redwood appears to have broader support from the auto industry. On top of Volvo, it has partners like Ford, Toyota and battery makers that include Panasonic and Envision AESC. Large-scale battery recycling facilities are still relatively rare in the US — Li-Cycle’s new Alabama plant can process batteries for about 20,000 EVs per year. This expansion could make recycling far more commonplace, and make a better case for electric cars as the environmentally conscious options.

Tesla launches Steam integration for the new Model S and X vehicles

Back in February, Tesla chief Elon Musk revealed on Twitter that the automaker is working to bring Steam to its vehicles. Now, the company is officially rolling out Steam integration for the latest versions of its Model S and X cars as part of its holiday update. In its promo video of the feature, you’ll see Tesla’s infotainment system running Steam Beta and even graphically demanding games like Cyberpunk 2077. 

By “new” Model S and X vehicles, Tesla likely means their “Plaid” versions, which started deliveries last year. Both models’ infotainment systems use AMD’s RDNA 2 GPUs, which are also the technology behind PlayStation 5, and AMD’s Ryzen chips. Tesla has been building its library of in-vehicle games over the past few years and has added titles such as Cuphead, PUBG Mobile and Fallout Shelter to its offerings. By bringing Steam to its vehicles, though, Tesla is adding more than just a game or two to the growing list. The automaker said in its announcement that the integration will bring thousands of games to the aforementioned cars. 

Tesla previously got into trouble with the US National Highway Traffic Safety Administration (NHTSA) for allowing people to play games even while driving. It disabled the capability following the agency’s investigation, however, so people most likely can’t play Steam games while the vehicles are in motion. 

In addition to Steam integration, Tesla’s holiday update also gives owners access to Apple Music integration for their infotainment systems. It gives them the ability to schedule Light Shows on multiple vehicles simultaneously, as well, and to view their cabin camera from the Tesla app while in Dog Mode or Sentry Mode.