Tesla has warned customers that the electric vehicle tax incentive may be cut. The company predicted the government would reduce it by half, but now the incentive is completely off the table for several EVs, including some Teslas.
Model 3 Variants and Tax Credit Eligibility
Tesla updated its configuration page, reflecting the impact on its popular Model 3 line. Notably, the Model 3 Rear-Wheel Drive (RWD) and Long Range variants, priced at $38,990 and $45,990, qualify for the $7,500 IRA tax credit only until December 31, 2023. On January 1, 2024, the $7,500 disappears. The Model 3 Performance variant, starting at $50,990, remains eligible for the full credit, and at current prices, will be cheaper than the AWD variant.
Under the Biden Administration, the U.S. government increasingly focuses on reducing reliance on foreign entities, particularly from countries like China, Russia, North Korea, and Iran. This focus influences the eligibility for the IRA tax credit, as the government seeks to limit EV battery materials and components sourced from these countries.
Broader Impacts and Challenges
The EV industry, including Tesla, faces challenges due to these new regulations. The rules necessitate a shift in the supply chain, particularly concerning battery materials and components, to meet the IRA's stringent requirements. This shift demands significant time and resources, potentially creating a gap between the regulations' implementation and the availability of compliant materials.
The electric car tax credit system is undergoing substantial changes, with specific requirements for battery components and critical minerals. For example, to be eligible for a $3,750 credit, a significant percentage of the battery components must be manufactured or assembled in North America. These percentages will increase progressively each year, reaching 100% by 2029. The critical mineral requirement follows a similar trajectory.
Qualifying Models
For consumers, this means adjusting expectations and possibly accelerating purchase decisions. The changes emphasize the importance of staying informed about evolving regulations and understanding how they impact the total cost of EV ownership.
According to the Street, the new regulations leave only 10 EVs eligible for the full $7,500 tax credit.
Tesla Model 3 Performance – $50,990
Tesla Model Y Performance – $52,490
Tesla Model X – $79,990
Cadillac LYRIQ – $58,590
Chevrolet Bolt EV – $26,500
Chevrolet Equinox EV – $48,995
Chevrolet Silverado – $51,895
Chevrolet Blazer EV – $60,215
Chrysler Pacifica PHEV – $53,425
Ford F-150 Lightning – $49,995
The IRA represents a significant shift in the U.S. government's approach to promoting EV adoption. While it aims to strengthen the domestic supply chain and reduce foreign dependencies, it also introduces complexities for manufacturers and consumers. Tesla's adaptation to these changes, consumer awareness, and strategic planning will be crucial in navigating this new era of electric mobility.
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The Cybertruck has now celebrated its first Halloween, and owners did not disappoint in coming up with clever and unique decorations for their stainless steel trunk. Make sure you’ve got whatever is left of your candy nearby cause we’re going in.
Aliens
Up in the hero image to get us started - the Cybertruck is really a piece of alien technology. At least, that’s how it appears when it first arrives in town. So, why not celebrate the alien-ness of the Cybertruck to North American roads? We love it.
Spooky
@jayvee10x over on X put together this fantastic display for Halloween and included their Cybertruck! The Cybertruck would definitely be a good vehicle of choice to take on zombies and walking skeletons.
By @jayvee10x.
@jayvee10x
Halo
TeslaKen over on the Cybertruck Owner’s Club forums put together this outstanding Cosplay of Master Chief from Halo, and wrapped up his Cybertruck to look like a Warthog. Probably one of the coolest costumes we’ve seen so far.
By TeslaKen on the CT Owners Club
TeslaKen
Jaws
Sometimes, all you need to do to get a scare is to show some nice sharp teeth. The smoke machine just completes the look with the red glow.
Fangs!
Not a Tesla App
More Aliens
Terry Stach and Robert Martin captured some aliens in their trucks. Best to keep an eye on these ones, lest they whisk you away in their Cyber-UFO. Just watch out though, because @brandtsla over on X is being chased by that UFO!
The Cyberbeast’s logo is the three-headed hound that guards the gates of hell - Cereberus. Turns out that S.E. Robinson let the dogs out. Our favorite, all things said. Maybe a smoke machine and some red lights to complete the look though! Oh wait, he’s got that too!
The Cybertruck makes an incredible canvas for Halloween decorations, and we’re eager to see even more creative ideas emerge as it heads into its second Halloween season next year.
While this isn’t exactly a feature most users will see often, Tesla has added some features that should help technicians know more about a vehicle’s history. Best of all, while Service History is aimed at technicians, it’s also accessible by any Tesla owner.
So, grab your wrench, and let’s take a detailed look at Tesla’s new Service History.
Service History
Service History is a new feature in Tesla’s Service Mode that tracks all the maintenance a vehicle has received. Technicians are prompted to use Tesla’s Correction Codes, which define the repair that took place and then provide an optional timestamp for the repair being completed. In short, it’s a way to keep track of repairs and services within the vehicle. This should make it easier for technicians to solve issues by being aware of the vehicle’s history.
Service History is accessible directly on the main panel of Service Mode. While Tesla already has internal tools to access a vehicle’s history, the real benefit will be when the vehicle is serviced by different technicians. For example, a local tech could now be services that Tesla serviced performed and vice-versa.
Service history is also permanent and stays with the vehicle. Once entries are added, they cannot be edited or removed, so there’s no tampering with a vehicle’s service history.
You can see the new Service History option on the bottom right.
Mahtava
These timestamped history logs are permanently saved to your vehicle and are accessible by Tesla and anyone else who can put their car into Service Mode. If you want to take a peek and are on 2024.38 or higher, you can follow our Guide on Service Mode here.
Entering a Service Item
When entering a new Service History entry, you’re given a few options, including a Correction Code. Tesla maintains a list of Correction Codes for pretty much everything under the sun, from a full-out swap of the battery pack or one of the motors to things as simple as replacing the wiper blades or adding windshield washer fluid.
Technicians servicing Tesla vehicles will have the option to indicate whether they’re a first-party doing the work (Tesla Service), a qualified third-party independent repairer, or an unknown—like the vehicle owner themselves.
The pop-up that displays when you open Service History.
Mahtava
If you’d like to add an entry yourself, you can give it a try, as it’s pretty straightforward. You can select a Correction Code for something you’d normally DIY, like adding washer fluid. You can then select a timestamp, which is optional, and then select what type of repairer you are - first party, qualified third party, or other.
The Record Service Menu.
Mahtava
Expanding Service History
Tesla’s new Service History is a really interesting idea. It puts third-party technicians and vehicle owners on equal ground, with everyone having access to a vehicle’s history. It’s also going to be useful for owners to keep track of simple tasks like tire rotations, wiper blade replacements, low-voltage battery replacements, and more.
Service History also helps solve the issue of Tesla not being able to effectively track vehicle services done by qualified third-party repair shops, who often won’t push the vehicle correction codes via Toolbox 3.
Instead, this allows even unfamiliar repair technicians an easy-to-see and easy-to-use solution to log and diagnose potential issues quickly.
We’d love for Tesla to make Service History even more accessible, potentially moving it out of Service Mode, which only a small percentage of owners will ever go into.
It’d be useful if Tesla moved certain options into the main Controls > Service area, allowing vehicle owners to add simple things like adding windshield wiper fluid. For more complex changes, Tesla could ask owners to enter Service Mode, and remind them that all entries are permanent and can not be changed or removed, even by Tesla.