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US President Biden’s union-friendly $4,500 EV tax credit buff is facing a big challenge
The Biden administration’s proposed $4,500 EV tax credit buff for electric and electrified vehicles made in a union plant in the United States is meeting a big challenge. The union-friendly proposal is poised to undergo a review from the office of Elizabeth MacDonough, the Senate parliamentarian, who would then determine if the incentive qualifies under the US’ budget rules.
The $4,500 tax credit, which would be given to vehicles produced in the United States using union labor, stands to favor the Detroit Big Three heavily. Due to its overtly pro-union nature, the incentive has attracted a lot of criticism, particularly from automakers who are operating in the United States without union labor. These include Japanese carmakers Toyota and American EV maker Tesla.
Democratic Senator Joe Manchin, whose state of West Virginia hosts Toyota facilities, has expressed his disapproval of the proposed $4,500 tax credit addition for union-made EVs. In an interview with Automotive News last month, Manchin noted that the US government should not use tax dollars to pick winners and losers and that products made by companies should be able to speak for themselves.
“This is wrong. This can’t happen. It’s not who we are as a country. It’s not how we built this country, and the product should speak for itself. We shouldn’t use everyone’s tax dollars to pick winners and losers. If you’re a capitalist economy that we are in society, then you let the product speak for itself, and hopefully, we’ll get that, that’ll be corrected,” Manchin said.
If the Senate parliamentarian’s office concludes that the union-friendly $4,500 EV tax credit does not mesh with budget rules, Democrats may end up going back to the drawing board, or worse, remove the measure altogether, according to a Bloomberg report. Maryland Democratic Senator Ben Cardin, for his part, has noted that changes to the Biden administration’s proposed EV tax credit are already being discussed due to opposition from political figures such as Manchin.
“There have been some suggestions to alternatives by those that opposed it initially, and they are being looked at. It’s an evolving discussion,” Cardin said.
The Biden administration’s proposal would result in the current $7,500 EV tax credit being extended. An additional $500 would also be added to cars whose batteries were manufactured in the United States. These, together with a $4,500 additional credit if EVs were built in a union factory, could result in electric and electrified vehicle prices being lowered by as much as $12,500. Biden has also pushed for the buildout of an EV charging network across the United States.
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Tesla CEO Elon Musk, however, noted during his interview at the Wall Street Journal’s CEO Council Summit that it would be better if the Biden administration’s proposals would not be passed. Musk even noted that he believes government support for the buildout of EV chargers is unnecessary.
“Unnecessary. I mean, do we need support for gas stations? So there’s no need for this support for a charging network. I’d delete it. I’m literally saying get rid of all subsidies. And also for oil and gas… Maybe (Tesla’s competitors) need it. I don’t know. But I think just generally, I’m in favor of deleting subsidies. When we started Tesla, there were no EV subsidies at all, and gasoline was super cheap. We did not anticipate any subsidies. That came later. The $7,500 tax credit came as a result not because of Tesla’s activity but because of General Motors’ lobbying. So I would just say delete them all,” Musk said.
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On Friday, Tesla launched the Outlet Adapter that enabled Vehicle-to-Load (V2L) energy transfer, meaning owners could essentially utilize their cars as a power source for things like laptops, electric grills, or string lights.
However, even owners of some of the newest builds of the Model Y are finding out that their cars are not compatible with the new $80 accessory, stirring up a new complaint among members of the community.
Tesla launches V2L Outlet Adapter for Premium Model Y in the U.S.
Upon the release of the Outlet Adapter on Friday, I signed into my Tesla account to order the accessory. However, I was met with the dreaded “This product is not compatible with your 2026 Model Y” message at the bottom of the screen.
Some said their accounts also displayed the same message, but they ordered anyway. However, they might be surprised to find that this is no mistake; some of the newest Model Ys do not have the appropriate Power Conversion System (PCS). Mine, which was ordered on this day last year and delivered on August 31, has the old 48A, single-phase PCS.
Vehicles with the new, two-piece PCS are able to utilize V2L features on their cars:
🚨 Looks like you can hit the Parts Catalog and enter your VIN and check to see if your Model Y will be able to use the adapter for V2L.https://t.co/QA9zRk7n2k
h/t to @SawyerMerritt for finding this out.
I am sad but this isn’t a huge loss. https://t.co/AYpI12QVV9 pic.twitter.com/LRFSrtRywo
— TESLARATI (@Teslarati) August 16, 2026
Obviously, it’s disappointing. Many owners have taken delivery this year and still can not utilize the Outlet Adapter because their cars feature the old PCS:
Took delivery in February of 2026. I have the older one, so not going to work for me pic.twitter.com/RcOVq8gvvT
— Russell (@QuietTesla) August 16, 2026
It looks like if you have one of these older PCS units, you can upgrade, but the parts alone are $1,750, and that’s before Tesla adds labor for installing. It is honestly more logical to get some kind of portable power supply or power station at that point.
It is great that Tesla has enabled V2L for Model Y vehicles, but it is also unfortunate that vehicles that are less than one year old are not able to take advantage of this awesome new feature.
With that being said, it truly is a first-world problem; can you really complain when Full Self-Driving is available, maintenance is incredibly inexpensive, and the car has been so good through a year of ownership?
Tesla has launched a new Vehicle-to-Load (V2L) Outlet Adapter for Premium Model Y vehicles in the United States, meaning you can now power devices like laptops or light strings with your vehicle’s battery.
It appears the capability will be available for any Model Y Premium trim, including those that were purchased prior to the Adapter being launched. It will also only impact Juniper Model Y vehicles, so the first-gen owners will unfortunately not have access to this capability.
If your Model Y was purchased before Tesla renamed the trim levels to “Premium” and “Standard,” it does not seem to be compatible. My Model Y is technically a Premium build, as it is the Long Range All-Wheel-Drive. However, Tesla says it is not compatible with my vehicle.
🚨 Tesla has launched the Outlet Adapter for Model Y Premium in the U.S., enabling V2L capability for all Premium trims (that’s what it appears to be as it is available for purchase with all Premium trims)
It’s available for $80. 2.4kW max power and rated for 120v, 20A pic.twitter.com/lDxlVIk5s8
— TESLARATI (@Teslarati) August 14, 2026
For $80, you can now utilize your car as a portable charger for small appliances or devices. This is perfect for things like tailgates, concerts, or camping, as you can now plug in devices that you might use. Those string lights for camping? That laptop for the other games that are on at the tailgate?
They’ll both utilize energy from your Tesla’s battery to be powered. This is the first time Tesla has expanded the capability to vehicles outside of the Model Y Performance and Cybertruck. However, this feature has been highly requested by owners for an extended period of time.
Tesla launched the Outlet Adapter in China last year:
Tesla China rolls out Model Y L V2L adapter, and it’s free for early owners
You will need the Mobile Connector to operate the Outlet Adapter: the Outlet Adapter will plug into the main housing of the Mobile Connector, where the appropriate adapter to charge your vehicle will plug in.
It is rated for 120 volts and 20 amps, and has a max power rating of 2.4kW.
You can buy it here from Tesla for $80.
Tesla is nearing its long-awaited unveiling of the all-electric Tesla Roadster, a new report from The Information claims, as the company has said several times this year that the event would take place “soon.”
Now, it appears there is movement on Tesla’s end regarding when it will happen.
The report says that Tesla will unveil the Roadster as soon as this month with a SpaceX version that will utilize cold-gas thrusters to help the vehicle float for a short period of time. This is something CEO Elon Musk has talked about with the Roadster for years.
🚨 The Information is reporting this morning that Tesla is ready to unveil the “flying” Roadster as soon as this month
It’s almost here, folks. pic.twitter.com/IdL4atsucQ
— TESLARATI (@Teslarati) August 14, 2026
Additionally, due to the delays, Tesla explored “a variety of designs” for the Roadster, potentially planning to abandon the design it showed off for the first time in 2017 and adopting an entirely new aesthetic.
According to The Information, Tesla considered utilizing a repurposed Model S Plaid and even wanted to upgrade the look to something like a Lamborghini Countach.
We’ve heard all of these things before, including teases about the date and how “soon” the Roadster will finally be ready to be shown off to the world (for the second time). Musk said that the event would occur in April, then May, then Chief Designer Franz von Holzhausen continued to say it would be coming “soon.”
We do expect to see the Roadster by the end of the year, and now with this new report swirling, it appears it could be sooner rather than later.
The wait has been incredibly long, but there is likely a good reason for it. Tesla’s desire to make the Roadster the craziest vehicle on the road was non-negotiable, and it likely took a lot of time and resources to develop and perfect into something that was safe and suitable for a vehicle like this.
Tesla V2L adapter for Model Y stirs up a new complaint among owners
Tesla launches V2L Outlet Adapter for Premium Model Y in the U.S.
