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‘Average Americans’ can’t afford EVs: Former White House official, others rip Buttigieg

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The all-too-common myth that electric vehicles are not affordable to the average American is now being reignited by former Trump White House Communications Official Mercedes Schlapp, among others, who ripped Transportation Secretary Pete Buttigieg for suggesting that the answer to rising gas prices was to buy an electric car.

Sec. Buttigieg appeared on MSNBC on Sunday to suggest that American consumers can avoid soaring gas prices by purchasing an electric vehicle. Buttigieg said to Jonathan Capehart in an interview on “The Sunday Show” that EV owners will have a “$12,500 discount” thanks to the new EV incentive plan that was included in the House-passed “Build Back Better” plan from President Joe Biden. While only the Chevrolet Bolt EV will qualify for the full $12,500 amount, nearly every EV built in the United States will qualify for a $7,500 tax credit.

Buttigieg also went on to say that those in rural areas would be most likely to benefit from the purchase of an EV. “The people who stand to benefit most from owning an EV are often rural residents who have the most distances to drive, who burn the most gas, and underserved urban residents in areas where there are higher gas prices and lower-income,” Buttigieg claimed. “They would gain the most by having that vehicle. These are the very residents who have not always been connected to electric vehicles that are viewed as kind of a luxury item.”

Transportation Sec. Buttigieg: Buy an EV and ‘never worry about gas prices again’

However, not everyone was a fan of Buttigieg’s suggestion to transition to EVs. Former White House Director of Strategic Communications Mercedes Schlapp said that EVs are not widely affordable, and only people “in the world that Pete Buttigieg lives in” can afford them. “Average Americans struggling with record-high gas prices? Not so much,” she added.

“Let me assure you there is very little overlap between ‘families that can afford to buy a $50,000 electric car,” Amy Swearer of the Heritage Foundation said. “And ‘families that are worried about gas prices because an extra $50 a month is actually a week’s worth of groceries.’ Do you know what a lot of families could do with that extra $50 a month/$1300 a year?” Swearer added according to the New York Post.

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Kelley Blue Book lists the average transaction price in October 2021 for a new vehicle at $46,036, with Tesla offering an average price of $54,560. It should be noted that Tesla has two Model 3 variants under the average $54,560 price. The Model Y’s Long Range variant is available for slightly more at $58,990. However, these prices are before factoring in federal incentives, gas savings, and money saved through lack of maintenance. If the minimum $7,500 EV tax credit were available right now, all but one of Tesla’s five mass-market vehicle variants would fall under the average cost of a Tesla vehicle. The Model 3’s Rear Wheel Drive and Long Range All-Wheel Drive configurations would cost less than the national average for a new car. Tesla vehicles would qualify for $8,000 in incentives: $7,500 for being built in the U.S. and an additional $500 for equipping a U.S.-made battery.

Now, if we factor in other vehicles in the United States, the Chevrolet Bolt, which has had production suspended until 2022 due to battery malfunctions, has several sub-$30,000 variants available. Ford’s Mustang Mach-E starts at $42,895 and can go as low as $35,395 after incentives. Three of Ford’s four Mach-E variants would fall under KBB’s $46,036 average price after incentives.

Unfortunately, politicians with widespread media coverage are able to spread misinformation regarding the price of electric vehicles. Many EVs are available on the market today are actually extremely affordable. Even if the price of an EV is slightly higher than a gas car, owners can expect savings through missed trips to the gas pump and a lack of oil changes. But, after all, we’ve learned that the White House, at nearly any time and under nearly any administration, has missed the mark regarding EVs, and it has not been uncommon for politicians to spread information that is not necessarily accurate.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Energy

Tesla Model 3 and Model Y can now do what only Cybertruck could

Tesla Model 3 and Model Y can power your home with Powerwall 3 during outages.

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Tesla has turned its two top sellers into backup batteries for the house.

Tesla Energy announced on Tuesday that Powershare Home Backup is now available for new Model 3 and Model Y vehicles paired with a Powerwall 3, saying the car can “extend your home backup by over 2 days.” Minutes later, Tesla’s main account quoted the post with a broader pitch: “With Powerwall 3, every Tesla can now serve as your home’s backup battery.”

Until this week, the Cybertruck was the only Tesla that could send power back into a home, and that capability only began working alongside Powerwall 3 last month, after years of ambitious targets.

Tesla’s updated Powershare page says every Model 3 and Model Y ordered in the U.S. or Puerto Rico on or after October 1, 2026 can use the feature. Some, but not all, earlier cars also qualify. Owners can check on the touchscreen under Software, then Additional Vehicle Information, where a capable car shows “Powershare Support: Enabled.” As Electrek reported, bidirectional power on the two cars runs through an inverter Tesla calls PCS2 Lite, and the company has not said when that part entered production on each trim.

The home side is simpler. A house that already has a Powerwall 3 and either a Wall Connector 3 or Universal Wall Connector needs no additional equipment, and Tesla says compatibility is enabled through a software update. When the grid drops, the Powerwall and the car work together, with up to 11.52 kW of continuous power available. Tesla’s “over two days” estimate assumes a home using 30 kWh per day and a car starting at a 90 percent charge. Standard trims are rated for up to two days, while the Cybertruck adds more than three.

There are limits. Powerwall 2 and Powerwall+ support is listed as “coming soon.” Model S and Model X are not included, and Grid Support, the program that lets Cybertruck owners in Texas send power back to the grid during demand spikes for bill credits, is not available for Model 3 or Model Y.

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The rollout also lines up with something Elon Musk said more than three years ago. At Tesla’s March 2023 Investor Day, Musk said, “I don’t think very many people are going to want to use bidirectional charging, unless you have a Powerwall.” Tesla has now shipped the feature for its volume cars with exactly that requirement attached.

The Powerwall pairing was the hard part on Cybertruck. Tesla told owners in December 2025 that Powershare with Powerwall had been pushed to mid 2026, and lead engineer Wes Morrill explained that two devices capable of forming a home’s grid have to negotiate which one leads during an outage, across multiple generations of hardware. With that work done for the truck, Tesla was able to extend it to the Model 3 and Model Y within a month.

Ford and GM have offered home backup from their EVs for several years, but both require a separate inverter and backup hardware. Tesla’s version leans on equipment many Powerwall 3 owners already have on the wall. Powershare for the two cars also ships as part of software update 2026.38.3, the same release that began delivering Halloween Mode on Tuesday.

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Tesla ships ‘spooky’ Halloween Mode with creepy and fun features

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Credit: Tesla

Tesla is now starting to ship a “Halloween Mode” that is filled with some creepy and fun features; the company says, “This spooky update turns your Tesla into a haunted house on wheels.”

The update is just the latest in a series of updates that Tesla typically ships out in a seasonal fashion. The Spring and Summer Updates provided some fun novelty items while also packing some cool features that are actually useful for the ownership experience.

This one seems to be more fun-forward, and there are not any updates to the Full Self-Driving suite or overall operation of the vehicle. Instead, these novelty features are geared toward getting you in the mood for the Fall and Halloween.

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New Ghost Costume on Car Avatar

Driver Visualization will now show your vehicle as a ghost, as an all-white sheet is draped over the vehicle. Pedestrians are turned into mummies or skeletons, and other vehicles are all a spooky green:

Credit: Tesla

Additionally, the Park Scene with your Tesla now displays that ghost costume draped over your vehicle in the foreground of a scary backdrop with Jack-o-Lanterns and a haunted house:

Credit: Tesla

Trick or Treat Mode

Trick or Treat Mode will enable the vehicle to play spooky sounds and flicker the lights as visitors approach. This might be a nice touch for when you’re handing out candy to kids on Halloween Night.

Other Features

Tesla is also adding a new Light Show, new Wrap Options, and a new Lock Sound with this update.

Credit: Tesla

Additionally, Photobooth has a new Halloween option:

Credit: Tesla

You will also be able to speak remotely through the app and transmit your voice to people outside, which is not a new feature, but the car will say it in a voice of its own, which is a new feature with that bullhorn-like feature.

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Investor's Corner

SpaceX reveals how its 1 Million AI satellite network will work and prevent space collisions

SpaceX reveals plans for one million Starmind AI satellites and calls out operators hiding maneuvers.

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Concept rendering of SpaceX Starmind constellation via Grok
Concept rendering of SpaceX Starmind constellation via Grok

SpaceX has put the largest satellite count it has ever published into writing, and it says that plan only works if every other operator in orbit starts sharing what it knows.

In a new Space Safety page highlighted Tuesday morning by Sawyer Merritt on X, SpaceX said it “plans to operate up to 100,000 Starlink satellites and up to 1 million Starmind AI satellites to meet the growing demand for broadband and supercompute.” Starlink has a little over 11,000 satellites in orbit today, so the target alone implies roughly a ninefold expansion of the broadband network.

Starmind is SpaceX’s orbital AI compute constellation. Elon Musk confirmed the Starmind name in June after an xAI trademark filing surfaced, and in August SpaceX said it was working with Nvidia on the compute payload. The FCC accepted the filing for up to one million satellites back in February.

FCC accepts SpaceX filing for 1 million orbital data center plan

SpaceX also released a new render of what a full Starmind constellation could look like. Alongside it, SpaceX VP Michael Nicolls explained why the satellites will not operate on their own. “We need to operate clusters of satellites in tight formation to get enough coherent compute to run AI models efficiently,” Nicolls said. “A cluster will be 10-ish satellites connected with 10 terabits or so of bandwidth between them, and interconnected to the broader constellation.”

That is the most specific detail SpaceX has given on how Starmind will be built. Instead of a million independent servers, the network would work as tightly packed groups of about 10 satellites acting as one compute unit, with Starlink’s laser links carrying results back to Earth.

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Packing satellites that close together, at that scale, makes collision avoidance the central problem, and most of the Space Safety page is aimed at other operators. SpaceX said Starlink encountered collision risks with about 650 unique maneuvering third party satellites in 2026, and only about half of them shared data. Over six months, Starlink recorded roughly 164,000 more collision risks where the closest approach came within four hours of an unannounced maneuver.

Some operators keep maneuver plans private over proprietary concerns, while others cannot get government permission to share them. SpaceX called those policies “counterproductive,” saying they “largely only serve to create preventable collision risk between satellites.” Starlink is also offering a free ephemeris sharing and screening platform that returns risk results within a minute, backed by its Stargaze network of 30,000 optical sensors.

The push comes as the Starmind application draws opposition from astronomers and environmental groups. In a September filing with the FCC, SpaceX said each Starmind satellite could weigh up to 4,000 kg, nearly seven times the mass of a Starlink V2 Mini. Musk has brushed off crowding concerns before, telling viewers in June that “space is enormous” and that SpaceX already knows how to run very large constellations safely.

SpaceX’s Starmind page says its Gigasat factory in Bastrop, Texas, is designed to produce AI satellites at scale, with deployment of thousands of units starting as soon as late 2027.

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