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 launches first Virtual Power Plant in UK – get paid to use solar
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.
Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.
Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.
The company states that those who enroll in the program can earn up to £300 per month.
Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.
This is its first in the UK:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.
It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.
Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.
Energy
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.
The Tesla Lathrop Megafactory recently achieved a new milestone. As per the official Tesla Megapack account on X, the Lathrop Megafactory has produced its 15,000th Megapack 2 XL battery.
15,000 Megapack Batteries
Tesla celebrated the milestone with a photo of the Lathrop Megafactory team posing with a freshly produced Megapack battery. To commemorate the event, the team held balloons that spelled out “15,000” as they posed for the photo.
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments. Designed for grid-scale applications, each Megapack offers 3.9 MWh of energy and 1.9 MW of power. The battery is extremely scalable, making it perfect for massive energy storage projects.
More Megafactories
The Lathrop Megafactory is Tesla’s first dedicated facility for its flagship battery storage system. It currently stands as the largest utility-scale battery factory in North America. The facility is capable of producing 10,000 Megapack batteries every year, equal to 40 GWh of clean energy storage.
Thanks to the success of the Megapack, Tesla has expanded its energy business by building and launching the Shanghai Megafactory, which is also expected to produce 40 GWh of energy storage per year. The ramp of the Shanghai Megafactory is quite impressive, with Tesla noting in its Q1 2025 Update Letter that the Shanghai Megafactory managed to produce over 100 Megapack batteries in the first quarter alone.
Tesla Energy’s Potential
During the first quarter earnings call, CEO Elon Musk stated that the Megapack is extremely valuable to the energy industry.
“The Megapack enables utility companies to output far more total energy than would otherwise be the case… This is a massive unlock on total energy output of any given grid over the course of a year. And utility companies are beginning to realize this and are buying in our Megapacks at scale,” Musk said.
Energy
Tesla Megapacks powers the xAI Colossus supercomputer
Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.
Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.
The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.
“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.
xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.
The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.
Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.
As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.
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