Tesla Now Lets You Pick the Battery Supplier in the Model 3 and Model Y Long Range Models

June 26, 2024

By Karan Singh

Not a Tesla App

Tesla has begun providing different Model 3 and Model Y Long Range variants for its customers – dividing the two variants between those who are eligible for the $7,500 Federal EV Tax Credit, and those who are not eligible.

Eligible vs Non-Eligible Customers

Tesla is making two versions of their Long Range models of the Model 3 and Model Y available to customers in the U.S. One of them qualifies for the tax rebate, and the other doesn’t. However, there are some underlying differences between the two models customers should know.

Customers who claim they are eligible for the tax credit will be provided a VIN for a vehicle that qualifies for the EV Tax Credit. Vehicles that qualify for the Tax Credit have their battery and its cells manufactured in North America.

Customers who aren’t eligible or don’t opt to use the tax credit will get a VIN that doesn’t qualify for the federal credit. Customers who aren’t eligible for the federal rebate may still be eligible for local or state rebates, and these cars should be eligible for those specific rebates.

Panasonic vs LG Batteries

So what’s the difference between the two variants? It essentially comes down to the batteries and where they’re produced. The Model 3 and Model Y cars that are eligible for the tax credit will contain Panasonic batteries, which are produced in the U.S., while the cars not eligible for the rebate will include LG batteries.

They’re both non-LFP, 2170 cells, and while there isn’t a huge difference on the surface between the battery cells since they offer similar “regular” charging speeds and range, one does tend to be a little better. The LG batteries have been known to not charge as fast at level 3 chargers – which include Superchargers.

We recommend getting the vehicle that qualifies for the rebate that includes Panasonic batteries, even if you’re not planning to take advantage of the federal rebate. Besides getting a better battery, it leaves you open to receiving the tax rebate if circumstances change later in the year. It’s possible Tesla may offer a discount on the LG battery-powered model in the future, but at this time with them being the same cost, the Panasonic version makes more sense.

The Performance variant of the Model 3 and Model Y also comes with the Panasonic batteries. The LFP pack in the Rear-Wheel Drive variants of either vehicle also charge faster than the LG batteries.

The video below shows some of the speed differences between the battery packs.

How to View Cars

To view the vehicles with their specific battery packs, you’ll need to use Tesla’s inventory system. Simply go to the Inventory section of Tesla’s site, and then enable (Panasonic batteries) or disable (LG batteries) the Tax Credit Eligible Vehicles toggle on Tesla’s site.

Tesla Issues Two Physical Recalls for the Cybertruck

June 26, 2024

By Karan Singh

Not a Tesla App

Tesla has issued two voluntary recalls for the Cybertruck, both requiring physical servicing.

Wiper Motor Recall

The first recall is concerning the wiper motor, which has a build defect. Approximately 2% of delivered trucks (11,688 vehicles) have a malfunctioning gate driver component and will require a replacement. The full assembly will be replaced.

We’re expecting this replacement to be fixable by a Mobile Service Technician, as the refit of the motor assembly should be doable by just one individual, as per the Cybertruck Service Manual.

The NHTSA recall can be viewed here.

Sail Trim Recall

The Cybertruck’s unique sails (the triangular panel that connects the top of the truck to the back of the truck bed) have some uniquely attached trim pieces – and some of them are reportedly failing. Tesla has issued a recall for these sail trim pieces as well, which can become detached at speed due to wind catching the front edge of the trim piece, and lifting it away.

Tesla will replace or rework the cosmetic trim piece along the exterior of the sails, to ensure sufficient adhesion. This will include the application of a new adhesion promotor and pressure-sensitive tape.

We’re expecting this replacement to also be fixable by a Mobile Service Technician, as some Cybertruck owners on X have previously had the same issue fixed by mobile service.

This NHTSA recall can be viewed here.

Rivian and Volkswagen to Create Joint Venture as VW Invests $5 Billion in Rivian -- Stock Soars

June 25, 2024

By Karan Singh

Not a Tesla App

According to recent Bloomberg and Businesswire publications, Volkswagen will be investing $5 billion USD to form a joint venture with Rivian. Rivian stock has also rallied an astounding 50% in the hours since the announcement.

$5 Billion Stake

Of the $5 billion being invested, $1 billion will be invested immediately in Rivian, and the remaining $4 billion will be invested over time. That initial $1 billion will be invested in the company by the end of 2024, pending regulatory approval. The remaining $4 billion could be a fair while out, pending the formation of the joint venture in the fourth financial quarter of 2024.

The new joint venture will be “equally controlled and owned”. This is at a critical juncture for Rivian, who has recently debuted their R2 and R3 platforms, as well as bringing a much-appreciated revamp for the R1 platform.

CEO of Volkswagen, Oliver Blume:

“Our customers benefit from the targeted partnership with Rivian to create a leading technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We are also acting in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits seamlessly with our existing software strategy, our products, and partnerships. We are strengthening our technology profile and our competitiveness.”

Joint Venture

Part of the joint venture will be to help Rivian lower the cost per vehicle, while Rivian helps provide Volkswagen with its new Zonal control technology, which optimizes and shortens the circuit paths in a vehicle.

The Rivian platforms are also expected to serve as the foundation for future EV vehicles from Volkswagen. Rivian will be maintaining its intellectual property rights throughout the joint venture, which will provide an ongoing revenue stream for the company, as it settles into a new and faster production rhythm.

Rivian CEO, RJ Scaringe, said:

“We’re very excited to be partnering with Volkswagen Group. Since the earliest days of Rivian, we have been focused on developing highly differentiated technology, and it’s exciting that one of the world’s largest and most respected automotive companies has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership also is expected to help secure our capital needs for substantial growth. Rivian was created to help the world to transition away from fossil fuels through compelling products and services, and this partnership is beautifully aligned with that mission.”

Battery Venture Speculation

There is another opportunity for both companies, as Volkswagen moves to establish a 370-acre battery “giga factory” in Ontario, Canada. This could be an opportunity for Rivian and Volkswagen to continue their cooperation on battery technology, as Volkswagen intends to use the Rivian platforms for their vehicles.

Volkswagen has only recently broken ground at the site and expects the factory to produce about 90 GWh of batteries per year – or enough for roughly 1 million EVs a year. Volkswagen and the Ontario government expect that the factory should be fully functional by 2027. We could expect batteries from this Ontario factory to end up in Rivian vehicles in the future!