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Ford reportedly eliminates lease-to-buy option on electric vehicles

Credit: Emma Berg/Twitter

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As of June 15, 2022, Ford will no longer offer the opportunity to purchase its three all-electric vehicles, the F-150 Lightning, Mustang Mach-E, and E-Transit Van, for new leases.

Ford informed dealers in a letter that it was discontinuing the end-of-lease purchase option for the E-Transit van, Mustang Mach-E, and F-150 Lightning. Ford says, “you do not have the option to purchase the vehicle at the end of the lease term.” This change happened on June 15 in 37 states; the remaining 14 states and the District of Columbia will follow suit by the fourth quarter of this year.

Ford confirmed to CarsDirect that its communication was legitimate.

The States where Ford’s end-of-lease purchasing options will expire are Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Idaho, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montan, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Islan, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, and Wyoming.

Ford’s action is only the most recent illustration of how automakers are incorporating more and more restrictive clauses into their leasing agreements. With used vehicles selling at prices sometimes as much as or higher than brand new models due to parts shortages and semiconductor constraints, Ford may be looking to take used EVs and make another profit on them after an initial lease is up.

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Ford said in its letter that the goal is primarily focused on alleviating additional carbon emissions. “The purchase of the BEV Lease is to aid in our goal of delivering carbon neutrality by 2050 by controlling the vehicle battery through its life, keeping it in the Ford network.”

Ford, GM, Stellantis, Toyota push for Congress to eliminate EV tax credit limits

Consumers who choose lease purchase options have the opportunity to purchase their vehicle for a predetermined sum of money that is partially based on a residual value at the end of the lease. Ford looks to be emulating Tesla, which has limited lease buyouts on a few of its models. In April, Tesla eliminated their lease buyout options completely, never allowing them on the Model 3 or Model Y, to begin with. The electric automaker updated its website earlier this year to reflect its updated leasing policy, stating:

“All Tesla vehicles delivered on or after April 15, 2022 are not eligible for purchase.”

The company is dedicated to the battery supply chain network so that Battery Electric Vehicles (BEVs) are more sustainable and economical for our consumers. “Ford Motor Company is committed to making Battery Electric Vehicles (BEVs) more sustainable and affordable for our customers by localizing the complex battery supply chain network, creating recycling options for end-of-life vehicles, and increasing U.S. battery production.”

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WATCH: SpaceX Starship Flight 10 launch

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Credit: SpaceX

SpaceX is set to launch its tenth test flight of the Starship program, with a launch window that will open at 6:44 p.m. local time, or 7:44 p.m. on the East Coast.

Starship’s tenth test flight was originally scheduled for launch yesterday with a one-hour window that opened at 7:30 p.m. ET, but it was called off 17 minutes before that window even had a chance to open.

Starship Flight 10 rescheduled as SpaceX targets Monday launch

SpaceX moved the flight to tonight. It was also originally scheduled to have a launch window at the same time as Sunday, but it was pushed back 14 minutes to around 6:30 p.m. ET. There are storms in the area, as well as clouds over Starbase, so there is the off chance for another launch delay.

There are several big objectives for this launch, including the expansion of the operating envelope for the Super Heavy booster. SpaceX says there are “multiple landing burn tests planned.”

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The booster will also be performing a few in-flight experiments to help with data collection. Specifically, real-world performance data on future flight profiles and off-nominal scenarios will be on the list of things SpaceX will be looking for.

Starship itself will have a few in-flight objectives that include the deployment of eight Starlink simulators that are similar in size to the next-gen satellites for the internet service. SpaceX was set to test this with Starship’s seventh test flight, which occurred in January 2025. However, the task was abandoned as the vehicle was destroyed before deployment could occur.

Liftoff conditions are currently looking favorable, and SpaceX will be eager to improve upon its Starship launch program as CEO Elon Musk has big plans for it in the coming years.

You can watch the launch below via SpaceX:

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Tesla looks to expand Robotaxi geofence once again with testing in new area

It looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.

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Credit: Joe Tegtmeyer | X

Tesla looks to be preparing for the potential expansion of the Robotaxi geofence once again, as the company was spotted testing the suite in an area well outside of the Austin service area.

After it first launched the Robotaxi platform on June 22, Tesla has managed to expand its geofence twice, essentially doubling the travel area both times.

The most recent expansion took the size of the geofence from 42 square miles to about 80 square miles, bringing new neighborhoods and regions of the city into the realm of where the driverless vehicles could take passengers.

However, it looks as if Tesla is preparing for its next expansion of the geofence, potentially moving toward a much larger service area that could eclipse 150 square miles.

Over the weekend, one fan noticed a Robotaxi validation vehicle testing in Bee Cave, Texas, which is roughly 25 minutes from the edge of the current geofence:

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Tesla has been testing vehicles in the western suburbs of Austin for some time, and it seems the company is laying some groundwork to push its geofence expansion into Plaid Mode as competition with Waymo continues to be at the forefront of the conversation.

Waymo has been expanding with Tesla for some time, as the pace of expansion for the two companies has been relatively accelerated for the past couple of months.

Tesla’s expansions of the geofence sent a clear message to competitors and doubters, but it is still aiming to keep things safe and not push the envelope too quickly.

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The geofence expansion is impressive, but Tesla is also focusing on expanding its vehicle fleet in both Austin and the Bay Area, where it launched a ride-hailing service in July.

Tesla Bay Area autonomous fleet to grow to over 100 units: Elon Musk

Still, safety is the priority at the current time.

“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.

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Tesla considers making a big move with Model Y pricing as demand is skyrocketing

“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.”

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Credit: Tesla

Tesla is considering making a big move with Model Y pricing as demand is skyrocketing due to the EV tax credit expiring in just over a month.

With the $7,500 EV tax credit set to be removed on September 30, Tesla is experiencing increased demand for its Model 3 and Model Y. Customers are doing whatever they can to take delivery of the car they ordered as soon as possible.

The IRS recently adjusted the EV tax credit’s rules slightly.

Tesla set to win big after IRS adjusts EV tax credit rules

Previously, the vehicle had to be delivered by September 30, but a slight tweak the agency made last week will now allow customers to enter a legally binding contract along with a marginal down payment by that date. The delivery can occur after September 30, and the car can still qualify for the credit.

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However, demand is getting so crazy for the Model Y that Tesla is considering a price increase on the all-electric crossover, as well as a potential boost in production output to keep up with orders.

Inventory is dwindling in several markets across the United States, a good sign for the company, as it could have one of its best quarters in recent history in terms of deliveries.

However, Tesla is thinking of bumping the price slightly, Raj Jegannathan, the company’s VP of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, said on X:

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The price adjustment would come as a response to increasing production output, Jegannathan’s response seems to indicate.

The bump would help Tesla’s margins, but the idea that the company could adjust pricing by increasing it would not be popular with potential car buyers. It might encourage some buyers to put their orders in sooner, hoping to avoid a new, higher price.

However, it could also steer some buyers away from putting an order in on a vehicle, especially if the price increase is more than a few hundred dollars.

Tesla boosted the price of the Model S, Model X, and Cybertruck recently, but brought in a “Luxe Package” to help justify it.

It comes with Free Full Self-Driving, Free lifetime Supercharging, four years of premium service, and lifetime Premium Connectivity.

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