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Auto lobby group worries that most U.S. EVs disqualified for EV tax credit
Automaker lobby group Alliance for Automotive Innovation says that if additional sourcing requirements go into effect, U.S. automakers won’t qualify for the full credit.
According to Reuters, these automakers have been privately expressing their worries about the proposal’s increasing requirements regarding batteries and critical mineral contents being sourced from the U.S.
John Bozzella, head of the Alliance for Automotive Innovation, is calling for a “more gradual phase-in” of the requirements.
The lobby group represents General Motors, Toyota, and Ford Motor as well as a few other automakers. The group said that the proposal by Senators Schumer and Manchin would make 70% of 72 U.S. electric, plug-in hybrid, and fuel-cell EVs ineligible for the $7,500 tax credit if the bill is passed.
“A more gradual phase-in of the battery component, critical mineral and final assembly requirements – that better reflect current geopolitical, sourcing and mineral extraction realities – will preserve the credit for millions of Americans,” Bozzella told Reuters.
“None would qualify for the full credit…”
According to Bozzella,
“None would qualify for the full credit when additional sourcing requirements go into effect.”
The automakers represented by the lobby group have expressed their feelings about this bill previously and I wrote about this here. Senator Manchin pointed out that the U.S. needs to step away from its dependence on foreign supply chains.
Not All U.S. Automakers will have this problem as the lobby group fears.
There is one other U.S. automaker that isn’t represented by this lobby group and that’s Tesla. Yesterday, I spoke with Todd Malan, the Chief External Affairs Officer & Head of Climate Strategy at Talon Metals.
Talon Metals is a key partner of Tesla’s key nickel and battery mineral supplier of Tesla’s and it’s also based here in the U.S. The nickel mine is in Tamarack, Minnesota. Todd noted that other automotive lobby groups, such as the Zero Emissions Transportation Association (ZETA), had a more nuanced view of Manchin’s proposal.
He also pointed out that Tesla is a lead member of ZETA which is in favor of Manchin’s EV incentives. Todd also emphasized that these other automakers need to work together with their suppliers.
“We need everyone working together to meet these ambitious goals in the Manchin bill.
Mining is the front end of the supply chain and it takes enormous knowhow, capital, and risk tolerance to discover, delineate, permit, construct and then safely operate a mine to supply battery minerals.”
Todd also shared a bit of what it was like to have the off-take agreement with Tesla.
“Having a Tesla off-take agreement in place has changed the perception of our project in the community. It’s very credentializing and our employees are proud of the partnership. People clearly understand that our proposed mine has a purpose: to supply nickel for the EV battery supply chain and contribute to the energy transition. This has helped shape how people perceive the project. It has a purpose and an important one.”
“Many of the large automakers are helping supply partners apply for some of the significant new funding opportunities being made available through the Bipartisan Infrastructure Bill. The Department of Energy is expected to give out over $1.8 billion in funding from that legislation this fall. This is another example of how the end-users can help the front end of the supply chain for battery materials.”
You can read my full interview with Todd Malan here.
Disclaimer: Johnna is long Tesla.
I’d love to hear from you! If you have any comments, concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
News
Tesla Diner to transition to full-service restaurant as Chef heads for new venture
“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”
Tesla Diner, the all-in-one Supercharging and dining experience located in Los Angeles, will transition to a full-service restaurant in January, staff said, as Chef Eric Greenspan said he would take on a new project.
A report from the Los Angeles Times says Greenspan confirmed through a text that he would leave the Diner and focus on the opening of his new Jewish deli, Mish.
Greenspan confirmed to the paper:
“I am leaving the Tesla Diner project to focus on the opening of Mish, my long-desired Jewish deli. Projects like Mish and the Tesla Diner require a sharpness of focus and attention, and my focus and attention is now squarely on Mish.”
Greenspan took on the job at the Tesla Diner and curated the menu back in March, focusing on locally-sourced ingredients and items that would play on various company products, like Cybertruck-shaped boxes that hold burgers.
Tesla Cybertruck leftovers are the main course at the Supercharger Diner
The Tesla Diner has operated as somewhat of a self-serve establishment, where Tesla owners can order directly from their vehicles through the center touchscreen. It was not exclusive to Tesla owners. Guests could also enter and order at a counter, and pick up their food, before sitting at a booth or table.
However, the report indicates Tesla is planning to push it toward a sit-down restaurant, full of waiters, waitresses, and servers, all of which will come to a table after you are seated, take your order, and serve your food.
It will be more of a full-featured restaurant experience moving forward, which is an interesting move from the company, but it also sounds as if it could be testing for an expansion.
We know that Tesla is already considering expanding locations, as it will be heading to new areas of the country. CEO Elon Musk has said that Tesla will be considering locations in Palo Alto near the company’s Engineering HQ, and in Austin, where its HQ and Gigafactory Texas are located.
Musk said that the Diner has been very successful in its first few months of operation.
News
Tesla adds new surprising fee to Robotaxi program
“Additional cleaning was required for the vehicle after your trip. A fee has been added to your final cost to cover this service. Please contact us if you have any questions.”
Tesla has added a new and somewhat surprising fee to the Robotaxi program. It’s only surprising because it was never there before.
Tesla shocked everyone when it launched its Robotaxi platform and offered riders the opportunity to tip, only to tell them they do not accept tips. It was one of the company’s attempts at being humorous as it rolled out its driverless platform to people in Austin.
As it has expanded to new cities and been opened to more people, as it was yesterday to iOS users, Tesla has had to tweak some of the minor details of the Robotaxi and ride-hailing platforms it operates.
First Look at Tesla’s Robotaxi App: features, design, and more
With more riders, more vehicles, and more operational jurisdictions, the company has to adjust as things become busier.
Now, it is adjusting the platform by adding “Cleaning Fees” to the Robotaxi platform, but it seems it is only charged if the vehicle requires some additional attention after your ride.
The app will communicate with the rider with the following message (via Not a Tesla App):
“Additional cleaning was required for the vehicle after your trip. A fee has been added to your final cost to cover this service. Please contact us if you have any questions.”
The cost of the cleaning will likely depend on how severe the mess is. If you spill a soda, it will likely cost less than if you lose your lunch in the back of the car because you had a few too many drinks.
This is an expected change, and it seems to be one that is needed, especially considering Tesla is operating a small-scale ride-hailing service at the current time. As it expands to more states and cities and eventually is available everywhere, there will be more situations that will arise.
The messes in vehicles are not a new situation, especially in a rideshare setting. It will be interesting to see if Tesla will enable other fees, like ones for riders who request a ride and do not show up for it.
News
Tesla Model Y sold out in China for 2025
Customers who wish to get their cars by the end of the year would likely need to get an inventory unit.
It appears that the Model Y has been sold out for 2025 in China. This seems to be true for the four variants of the vehicle that are currently offered in the country.
Tesla China’s order page update
A look at Tesla China’s order page for the Model Y shows a message informing customers that those who wish to guarantee delivery by the end of the year should purchase an inventory unit. This was despite the Model Y RWD and Model Y L showing an estimated delivery timeline of 4-8 weeks, and the Model Y Long Range RWD and Model Y Long Range AWD showing 4-13 weeks.
As per industry watchers, these updates on the Model Y’s order page suggest that Tesla China’s sales capacity for the remainder of 2025 has been sold out. The fact that estimated delivery timeframes for the Model Y Long Range RWD and AWD extend up to 13 weeks also bodes well for demand for the vehicle, especially given strong rivals like the Xiaomi YU7, which undercuts the Model Y in price.
Tesla China’s upcoming big updates
What is quite interesting is that Tesla China is still competing in the country with one hand partly tied behind its back. So far, Tesla has only been able to secure partial approval for its flagship self-driving software, FSD, in China. This has resulted in V14 not being rolled out to the country yet. Despite this, Tesla China’s “Autopilot automatic assisted driving on urban roads,” as the system is called locally, has earned positive reviews from users.
As per Elon Musk during the 2025 Annual Shareholder Meeting, however, Tesla is expecting to secure full approval for FSD in China in early 2026. “We have partial approval in China, and we hopefully will have full approval in China around February or March or so. That’s what they’ve told us,” Musk said.
Tesla Diner to transition to full-service restaurant as Chef heads for new venture
Tesla adds new surprising fee to Robotaxi program
