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Ford loses half of its state factory incentives on slowed EV plans

Credit: Ford

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The state of Michigan has cut Ford factory incentives by over half, after the company announced plans to significantly downsize its electric vehicle (EV) and battery production plans in the state in recent months.

Michigan has cut Ford’s tax incentives to $409.1 million, down from the previous agreement of $1.03 billion, according to an updated incentives package detailed by the Michigan Economic Development Corp. (MEDC) on Tuesday (via Automotive News). The budget cut comes after the automaker reduced spending plans for its EV battery factory in Marshall from a target of $3.5 billion and 2,500 jobs, to a range of $2.5 to $3 billion and between 1,700 and 2,100 jobs.

The MEDC is also revoking $772.8 million for a 15-year Renaissance Zone tax break, along with another $100.8 million in grant money for not meeting job creation goals at the Ford Rouge Electric Vehicle Center (REV-C), where it significantly cut production capacity.

Ford pauses all F-150 Lightning shipments as gas deliveries begin

“The restructured incentive package will appropriately and necessarily address the project’s rightsizing, balancing the company’s investment and growth in Michigan,” said the MEDC.

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Although Ford reached its initial goal of job creation and investment commitments made in 2022, in which it said it aimed for $2 billion in spending and 3,260 jobs, it did not do so at the REV-C. Instead, the EV plant that builds the F-150 Lightning only employs around 700 workers, while the Michigan Assembly Plant acquired an additional 700 from the REV-C, and another 900 new hires to keep up with Bronco and Ranger demand.

Ford still expects to begin production of its lithium iron phosphate (LFP) batteries in 2026 at the Marshall facility, construction for which is roughly 20 percent completed.

In Q2, Ford EV sales jumped 61 percent year over year, making the automaker the nation’s second-largest seller of EVs, only behind Tesla. Ford has also been encouraging consumers and dealers to continue buying and selling EVs, despite having slowed some of its own plans for EV production in the past several months.

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla FSD successfully completes full coast-to-coast drive with zero interventions

Tesla community members celebrated the milestone on X, and the feat earned praise from some of the electric vehicle maker’s executives.

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Credit: Grok Imagine

A Tesla owner has successfully completed a full coast-to-coast drive across the United States on Full Self-Driving (FSD) Supervised. The trip was accomplished with zero interventions.

Tesla community members celebrated the milestone on X, and the feat earned praise from some of the electric vehicle maker’s executives. 

FSD Coast-to-Coast

The coast-to-coast feat was accomplished by Tesla owner Davis Moss, who drives a stealth gray Model 3 with AI4 hardware. Based on data from the FSD database and a community tracker, the last 10,638.8 miles Moss drove in his Model 3 were completed using FSD 100% of the time. His vehicle is equipped with FSD v14.2.1.25, which was installed 12 days ago.

As per Moss in a celebratory post on X, his Model 3 was able to complete a full coast-to-coast drive across the United States in 2 days and 20 hours. His trip started at the Tesla Diner in Los Angeles, CA, and it ended in Myrtle Beach, SC. Overall, his trip spanned 2,732.4 miles. 

“This was accomplished with Tesla FSD V14.2 with absolutely 0 disengagements of any kind even for all parking including at Tesla Superchargers,” Moss stated in his post. He also added in later comments that there were zero close calls during the trip.

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Tesla community celebrates 

The FSD milestone trip was widely lauded by members of the Tesla community, especially since a coast-to-coast drive with zero interventions has been cited by Elon Musk as a target since October 2016, when Autopilot 2.0 was unveiled. At the time, Musk initially estimated that a coast-to-coast drive across the United States should be possible by the end of 2017. Considering Moss’ feat in his Model 3, it appears that Elon Musk’s estimate was not impossible at all. It was just late.

Musk himself celebrated the milestone on X, and so did Tesla VP of AI Software Ashok Elluswamy, who wrote “World’s first fully autonomous coast-to-coast drive, done with Tesla self-driving v14. Congrats and thank you @DavidMoss!” in a post on X. The official Tesla North America account also celebrated the feat, writing “First Tesla to drive itself from coast to coast w/ FSD Supervised. 0 interventions, all FSD” on X.

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Elon Musk: Tesla Model Y is world’s best-selling car for 3rd year in a row

The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla. 

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Credit: Grok Imagine

Elon Musk has announced that the Tesla Model Y has become the world’s best-selling car by volume for the third consecutive year, capping 2025 with another dominant performance. 

The Model Y has now established an impressive streak that would otherwise have been impossible before Tesla. 

Three years in a row

Musk posted on X: “Tesla Model Y is now officially the world’s best-selling car for the third year in a row!” The CEO’s comment echoed an update that Tesla included in its 2025 recap, which highlighted, among other things, the Model Y’s incredible streak. 

The Model Y has held the title since 2023, outperforming traditional leaders like the Toyota RAV4 and Corolla thanks to its bang-for-the-buck nature and its stellar combination of practicality, performance, and tech. The Model Y is also lauded as one of the safest vehicles on the road, making it an ideal choice for families in key markets such as China. 

An impressive 2025

The Model Y’s sales feat in 2025 is especially impressive considering the introduction of the vehicle’s new variant. Tesla’s changeover to the new Model Y across its global factories resulted in sales being paused for some time in the first quarter. As per Tesla’s Q1 2025 vehicle delivery and production report, “the changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1.” 

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This suggests that the Model Y’s sales remained strong in 2025 to the point where it could still claim the title of the world’s best-selling vehicle by volume, even with its sales being throttled during the first quarter of the year. It would then be interesting to see just how far the Model Y can go in 2026, especially considering the rollout of new variants like the six-seat extended wheelbase Model Y L, the affordable Model Y Standard, and the top-tier Model Y Performance. 

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Tesla shares epic 2025 recap video, confirms start of Cybercab production

The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development.

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Credit: Tesla

Tesla has released an epic year-in-review video for 2025, recapping some of its major achievements from refreshed models to autonomy breakthroughs and production ramps. 

The cinematic montage, posted by the official Tesla account on X, celebrated the company’s progress in EVs, energy, and Robotaxi development while looking ahead to an even bigger 2026.

Tesla’s 2025 highlights recap

Tesla has had a busy 2025, as highlighted in the recap video. The video opened with Elon Musk explaining the company’s pursuit of sustainable abundance. A number of milestones were then highlighted, such as the rollout of FSD v14, Optimus’ numerous demos, the opening of the Tesla Diner in Hollywood, LA, the completion of the world’s first autonomous car delivery, and the launch of the Robotaxi network in Austin and the San Francisco Bay Area.

Tesla also highlighted several of its accomplishments over the year. As per the company, the Model Y was the year’s best-selling vehicle globally again, and Teslas became more affordable than ever thanks to the Model 3 and Model Y Standard. Other key models were also rolled out, such as the refreshed Model S and X, as well as the new Model Y, the new Model Y Performance, and the six-seat, extended wheelbase Model Y L. 

The Megablock was also unveiled during the year, and the Supercharger Network grew by 18%. Over 1 million Powerwalls were also installed during the year, and the Cybertruck became the first EV truck to get both an IIHS Top Safety Pick+ award and an NHTSA 5-Star safety rating. 

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Cybercab production confirmed

Interestingly enough, Tesla also confirmed in its 2025 recap video that the production of the Cybercab has started. This bodes well for the vehicle, as it could result in the vehicle really being mass-produced in the first half of 2026. Elon Musk confirmed during the 2025 Annual Shareholder Meeting that Cybercab production should earnestly start around April 2026

Musk has also noted that the Cybercab will be Tesla’s highest-volume vehicle yet, with the company aiming for an annual production rate of about 2 million units. “If you’ve seen the design of the Cybercab line, it doesn’t look like a normal car manufacturing line,” Musk said earlier this year. “It looks like a really high-speed consumer electronics line. In fact, the line will move so fast that actually people can’t even get close to it.”

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