Energy
U.S. Senate Panel looks to boost EV Tax Credit to $12,500: What we know so far
The United States Senate Finance Committee is looking to boost the possible Electric Vehicle Tax Credit to $12,500 for manufacturers that have assembled union workers within the U.S. Other companies that do not have unionized workers in the U.S. will still qualify for tax credits but will not receive the full amount.
The “Clean Energy for America” Bill would limit tax credits to vehicles with a price tag of less than $80,000. Companies with unionized workers would be able to offer the full $12,500 tax credit: $7,500 for the electric vehicle, an additional $2,500 for vehicles assembled within the United States, and another potential $2,500 for cars built at production facilities whose workers are members of or are represented by a labor union. Michigan Democratic Senator Debbie Stabenow leads the proposal. The Bill advanced after a 14-14 tie vote.
Stabenow’s proposal aims to “level the playing field” for electric car makers as the gas-powered companies have ruled the automotive industry for 100 years. A century ago, there was a choice between electrification or gas-powered cars, and automakers chose to utilize fossil fuels as a power source.
“We picked a winner, and they won – 100 years ago. Now, we’re just trying to level the playing field,” Stabenow said.
Perhaps the biggest addition to the EV Tax Credit, besides the value, is that there will be no cap to how many vehicles a manufacturer can sell before they no longer qualify for the credit. The current EV tax credit only allows OEMs to sell 200,000 electric cars before they no longer qualify for the credit; Tesla and GM are the only two companies that have reached this threshold. The credit would eventually phase out after three years, once 50% of U.S. passenger vehicle sales are composed of electrified models.
The possible $5,000 on top of the $7,500 will only apply to manufacturers that can offer both unionized workers and U.S.-based production efforts. Unfortunately, this will only allow Tesla buyers to qualify for $10,000 credits, still a hefty sum that could take up to 25% off of the base price of a vehicle if the car buyer is purchasing a Standard Range+ Model 3. Volkswagen, Toyota, Nissan, and Honda would also not qualify for the full $12,500 EV credit because they do not have U.S. unionized workers.
The bill is also set to assist the manufacturers with a 30% tax credit to retool or build new EV-focused facilities. The facilities could be used to develop new EV technologies, battery production plants, or new incentives to purchase commercial electric vehicles like the Tesla Semi.
President Joe Biden’s $174 billion EV aid package has $100 billion slotted out for consumer rebates. After a speech at Ford’s Dearborn, Michigan, Plant last week, the President reiterated his support for electrification and unionized automotive workers while getting a sneak peek ride in the F-150 Lightning, Ford’s introductory electric truck. United Auto Workers President Rory Gamble shared support for the possible passing of the Clean Energy for America Bill because it would support unionized workers.
“EV production will directly create the good-paying union jobs of the future President Biden has championed,” Gamble said via Reuters.
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
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