News
EV tax credit rule adjustment provides short-term win, but long-term warning
There are broader implications of the credit’s new rules, which could be viewed as an “extension,” although, fundamentally, the credit could mask the true issue that many EV makers will face: generally speaking, electric cars are still too expensive.
The IRS adjusted the EV tax credit rule last week, which was a big win for consumers. It now allows car buyers to lock up an agreement to buy a vehicle instead of having to take delivery before the deadline of September 30.
This has tremendous advantages for both consumers and companies. For consumers, they are no longer rushed to take delivery of a car that might not be their exact pick just to qualify for the tax credit. Instead, they can build the car they want, make a marginal down payment on it, and still take delivery, even after September 30, and still get the $7,500 off.
For carmakers, they are no longer restricted by production capacity or supply bottlenecks, and can get a vehicle to a buyer after the deadline instead of delivering bad news. The consumer just needs to commit monetarily first.
However, there are broader implications of the credit’s new rules, which could be viewed as an “extension,” although, fundamentally, the credit could mask the true issue that many EV makers will face: generally speaking, electric cars are still too expensive.
Consumer Behavior and Market Dynamics
Everyone is expecting EV makers’ Q3 sales to be slightly higher than normal, as this is the final quarter when the $7,500 EV credit will be available. Buyers are rushing to take advantage of the credit before it expires.
The urgency of car buyers to take advantage of the credit seems to be a positive in the short term. However, there are some indications that this could lead to a “boom-and-bust” cycle, and how EVs sell in subsequent quarters could be a very disappointing reality.
If EVs were at a price point where they were more affordable and people did not need $7,500 off to buy one, we would not be seeing this influx of orders. The fundamental issue with the tax credit is the fact that it is a bit of a crutch for automakers, and that crutch is about to be removed — abruptly.
Sustained incentives for EVs are something that was never going to be available under the Trump Administration. The true demand of EVs will be revealed in Q4, and likely over the first two quarters of 2026.
Policy Instability is a Barrier for Consumers…and Automakers
With the One Big Beautiful Bill that the Trump Administration rolled out, the tax credit’s sunset came abruptly.
Previously, the credit’s termination was set for 2032, but the change, which is absolutely justified in terms of the White House’s powers, sets a tough precedent moving forward: different administrations and different planning for how government funds are spent could dramatically alter plans.
For consumers, their confidence in the stability of these types of programs will be decreased. If a Democrat gets elected in 2028, will the credit return? It’s likely that the credit could become an “On for 4, Off for 4” type of arrangement, depending on the party in the White House, as well as the concentration of that party in the House and Senate.
For automakers, the long-term planning of their supply chains, including whether domestic manufacturing is prioritized and how much capital to allocate toward EVs, becomes a significant question.
If it needs volume to bring down EV prices, the absence of a credit will impact that drastically. Fewer people being able to afford EVs because of their premium prices could put companies in a very strange predicament.
Their roadmaps for their future lineups will be impacted, and they may have to go back to the drawing board for future plans.
Environmental and Economic Stakes
It is important to remember that the EV tax credit was not just a way to make cars more affordable. It was a tool to reduce emissions from passenger transportation. This is the largest source of greenhouse gases in the United States.
Ending the credit risks slowing progress toward climate goals and ceding ground to global competitors, especially China, a global tech hub that has a large population willing to embrace new tech.
Xiaomi CEO congratulates Tesla on first FSD delivery: “We have to continue learning!”
The U.S. needs a stable, long-term strategy to incentivize both consumers and manufacturers to reach climate goals. Short-term band-aids are not going to drive innovation or adoption forward.
Call to Action
To secure a thriving and equitable future for the EV industry, Congress could consider a variety of alternatives that benefit buyers who could use assistance. A tiered incentive program that prioritizes affordability and American innovation would benefit buyers who prefer an EV while making them accessible to lower and middle-income families and buyers.
Higher credits for EVs priced under $40,000 to reach these income levels would be ideal. Additionally, bonuses for vehicles and batteries that are domestically sourced would also encourage car companies to bring manufacturing to the United States, while also helping car buyers lean toward vehicles built here.
The rush to secure credits by consumers proves that incentives work. The United States should be working toward a long-lasting framework that makes EVs accessible to all, while giving the country a competitive edge to compete against powerhouses like China.
Tesla analysts are expecting big things from the stock (NASDAQ: TSLA) after many firms made price target adjustments following the Q3 Earnings Call.
Last Wednesday, Tesla reported earnings with record revenue but missed EPS estimates.
It blew delivery expectations out of the water with its strongest quarter in company history, but Tesla’s future relies on the development of autonomous vehicles, robotics, and AI, which many bullish firms highlight as major strengths.
The earnings call reiterated those points, along with the belief that Tesla CEO Elon Musk should be rewarded with a newly proposed pay package that would enable him to gain $1 trillion in wealth if he comes through on a lengthy list of performance tranches.
Nine Wall Street firms made adjustments to their outlook on Tesla shares in the form of price target increases since last Wednesday’s call, all of which are indications of big expectations for the stock moving forward.
Here are the nine firms that made moves:
- Truist – $280 to $406, reiterated Hold rating
- Roth MKM – $395 to $404, reiterated Buy rating
- Cantor Fitzgerald – $355 to $510, reiterated Overweight rating
- Deutsche Bank – $435 to $440, reiterated Buy rating
- Mizhuo – $450 to $485, reiterated Outperform rating
- New Street Research – $465 to $520, reiterated Buy rating
- Evercore ISI – $235 to $300, reiterated In Line rating
- Freedom Capital Markets – $338 to $406, upgraded to Hold rating
- China Renaissance – $349 to $380, reiterated Hold rating
The boosts in price target are largely due to Tesla’s future projects, as Roth MKM, Cantor Fitzgerald, Mizuho, New Street Research, and Evercore ISI all explicitly mention Tesla’s autonomy, robotics, and AI potential as the main factors for its price target boosts.
Cantor Fitzgerald raises Tesla PT To $510, citing Cybercab, Semi, and AI momentum
It is no surprise that many firms are adjusting their outlook on Tesla shares considerably in an effort to prepare for the company’s transition to even more of a tech company than a car company.
The issue with many analysts is that they treat the company’s vehicle deliveries as the main indicator of value.
However, Tesla has a robust energy division, which was a major contributor to the company’s strong margins and gross profit in Q3, as well as its prowess in robotics and AI.
Additionally, the company is seen as a key player in the autonomy field, especially after launching driverless rides on a Robotaxi platform in Austin and expanding a similar program in the Bay Area.
Tesla shares were up over 5 percent at 12:18 p.m. on the East Coast.
News
Tesla exec provides key update on Optimus’ improving dexterity
As per the executive, the humanoid robot is now able to perform more deliberate tasks such as folding laundry.
Tesla Board Chair Robyn Denholm has provided a rather compelling update on Optimus’ improving dexterity. As per the executive, the humanoid robot, which is expected to enter initial production next year, is now able to perform more deliberate tasks, such as folding laundry.
Optimus’ dexterity
During an interview with CNBC, Denholm was asked how close Optimus was to true dexterity. Achieving human-like dexterity is a key goal for Optimus as the robot is designed to be able to perform tasks that are traditionally performed by humans. This means that Optimus should be able to move its hands in a very delicate manner. During the segment, one of CNBC’s hosts mentioned that humanoid robots today are not able to fold laundry just yet.
Denholm responded that Tesla’s robot is now able to perform the task. “Optimus can fold laundry. I’ve been in the lab with Optimus. He can fold laundry. He can wipe the table really well. He can hand things to you. You can actually shake hands with him. The tactile nature of his hand is actually really very good,” the Tesla Board Chair stated.
Redefining robotics
The executive reiterated that Optimus is already operating in Tesla’s Palo Alto offices today. “We’re redefining what transportation is, but we’re also redefining robotics and what AI brings to robotics and how versatile the robots will be in the future,” Denholm noted.
Elon Musk has reiterated the importance of Optima’s hands during the Q3 2025 earnings call. While discussing the humanoid robot’s capabilities, Musk stated that Optimus, in its production form in the future, should be able to perform incredibly delicate tasks such as surgery. This, the CEO noted, would be pivotal in Tesla’s efforts to push the world towards sustainable abundance.
“Going beyond sustainable energy to say, sustainable abundance is the mission, where we believe with Optimus and self-driving, we can actually create a world where there is no poverty, where everyone has access to the finest medical care. Optimus will be an incredible surgeon, for example. Imagine if everyone had access to an incredible surgeon,” Musk said.
News
Tesla comes through on huge promise for Bay Area ride-hailing service
Tesla’s ride-hailing service in the California Bay Area is somewhat similar to what the company is doing with Robotaxi in Austin, Texas.
Tesla has come through on a huge promise for its Bay Area ride-hailing service just two months after aiming to expand to a new territory.
Tesla’s ride-hailing service in the California Bay Area is somewhat similar to what the company is doing with Robotaxi in Austin, Texas.
However, regulatory rules and the fact that the company is operating with someone in the driver’s seat —a stark difference from the operation in Austin —have kept the business categorized as a ride-hailing application in California.
But Tesla is still breaking barriers down with its service, which operates entirely using the Full Self-Driving (Supervised) platform, as the “Safety Monitors” are only there to ensure safety and take over in the most necessary circumstances.
In September, Tesla filed to begin operating its ride-hailing service at various airports in the Bay Area, including San Francisco International Airport, San Jose Mineta International Airport, and Oakland International Airport.
Tesla targets Bay Area airports as next step for Robotaxi rollout
It officially came through on that promise last night, as it announced its Bay Area ride-hailing service would now go to San Jose Mineta International Airport:
Our Bay Area ride-hailing service now goes to SJC airport ✈️
— Tesla AI (@Tesla_AI) October 27, 2025
The expansion signals a key approval for Tesla to travel to one of the more popular places where people would need or simply want a drop-off. Airports are expensive to park in, so many people utilize ride-hailing services to enable a more economical experience from start to finish.
With this approval for SJC, Tesla will likely gain even more approvals for other airports in the Bay Area in the coming weeks or months.
While Tesla believes at least half of the U.S. population will have access to the company’s Robotaxi program or its ride-hailing service by the end of the year, the first step will be gaining approval in more metropolitan areas.
Tesla is looking to expand to other states, including Nevada, Florida, and Arizona, with its Robotaxi platform in the near future.
Tesla analysts are expecting big things from the stock
Tesla exec provides key update on Optimus’ improving dexterity
Tesla comes through on huge promise for Bay Area ride-hailing service
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