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.
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.
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Tesla rolls out most aggressive Model Y lease deal in the US yet
With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.
Zero downpayment leases
The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment.
Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.
Premium freebies included
Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.
A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing.
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Tesla is looking to phase out China-made parts at US factories: report
Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.
Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.
The update was initially reported by The Wall Street Journal.
Accelerating North American sourcing
As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.
The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.
Industry-wide reassessments
Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report.
General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration.
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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.
However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.
Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.
After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.
However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.
Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:
Everyone thinks they need it. I would think that too if I didn’t know how good Tesla’s interface was. CarPlay is a crappy layer on top of crappy info-navs, and people think it’s an imperative because it provides a level of consistency from car to car. They have no clue how much…
— Rich Stafford (@r26174_rich) November 14, 2025
How can it not be when the best engineers choose Tesla over Apple and Tesla’s core focus is auto vs Apple being mobile. It’s what Tesla does every day. It’s a side project for Apple. Still Apple is much better than any other auto OEM who attract lesser talent and make digital…
— Emu (@confessedemu) November 14, 2025
Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?
“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.
Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.
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