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.
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.
Elon Musk
Tesla expands US LFP battery supply with LG Energy Solution deal: report
The report was initially published by TheElec, citing industry sources.
LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility.
The report was initially published by TheElec, citing industry sources.
LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.
LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.
Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.
Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.
For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.
Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.
News
Tesla begins Grok AI chatbot rollout to Australia and New Zealand fleet
The update follows earlier deployments in the United States and Europe.
Tesla has rolled out its Grok AI assistant to Australia and New Zealand, embedding the conversational chatbot directly into compatible vehicles via an over-the-air update.
The system, developed by Elon Musk’s xAI, is now live on select models, giving drivers access to a voice-based assistant that goes well beyond traditional command-driven controls.
The update follows earlier deployments in the United States and Europe.
Tesla Australia confirmed Grok is available on Model S, Model 3, Model X and Model Y vehicles equipped with an AMD processor and running software version 2025.26 or later.
“Grok is coming to Teslas in Australia and New Zealand. It can answer almost any question using real-time information & also add/edit navigation destinations to become your personal guide. Phased rollout has now begun to eligible vehicles,” Tesla Australia and New Zealand wrote in a post on its official X account.
Drivers can activate Grok using the steering wheel controls once the update is installed. Access requires either a Premium Connectivity subscription or a stable Wi-Fi connection.
Unlike conventional in-car voice assistants that rely on fixed prompts, Grok is designed to respond conversationally. It can adjust navigation mid-trip, locate nearby points of interest, explain dashboard warnings, provide driving guidance and reference the owner’s manual.
Tesla noted that interactions with Grok are processed by xAI and remain anonymous to Tesla, adding that conversations are not linked to a specific driver or vehicle.
Grok has attracted attention overseas for offering multiple interaction modes. In the U.S., users can select personalities such as Assistant, Language Tutor, Therapist, Storyteller and Meditation. Additional optional modes for adult users include settings labeled Unhinged, Motivation, Argumentative, Romantic and even Sexy.
Viral clips shared online have shown Grok adopting sarcastic or playful tones that differ from more neutral digital assistants, with the AI assistant typically catching drivers off-guard with its sharp personality and wit.
News
Ford is charging for a basic EV feature on the Mustang Mach-E
When ordering a new Ford Mustang Mach-E, you’ll now be hit with an additional fee for one basic EV feature: the frunk.
Ford is charging an additional fee for a basic EV feature on its Mustang Mach-E, its most popular electric vehicle offering.
Ford has shuttered its initial Model e program, but is venturing into a more controlled and refined effort, and it is abandoning the F-150 Lightning in favor of a new pickup that is currently under design, but appears to have some favorable features.
However, ordering a new Mustang Mach-E now comes with an additional fee for one basic EV feature: the frunk.
The frunk is the front trunk, and due to the lack of a large engine in the front of an electric vehicle, OEMs are able to offer additional storage space under the hood. There’s one problem, though, and that is that companies appear to be recognizing that they can remove it for free while offering the function for a fee.
Ford is now charging $495 on the Mustang Mach-E frunk (front trunk). What are your thoughts on that? pic.twitter.com/EOzZe3z9ZQ
— Alan of TesCalendar 📆⚡️ (@TesCalendar1) February 24, 2026
Ford is charging $495 for the frunk.
Interestingly, the frunk size varies by vehicle, but the Mustang Mach-E features a 4.7 to 4.8 cubic-foot-sized frunk, which measures approximately 9 inches deep, 26 inches wide, and 14 inches high.
When the vehicle was first released, Ford marketed the frunk as the ultimate tailgating feature, showing it off as a perfect place to store and serve cold shrimp cocktail.
Ford Mach-E frunk is perfect for chowders and chicken wings, and we’re not even joking
It appears the decision to charge for what is a simple advantage of an EV is not going over well, as even Ford loyal customers say the frunk is a “basic expectation” of an EV. Without it, it seems as if fans feel the company is nickel-and-diming its customers.
It will be pretty interesting to see the Mach-E without a frunk, and while it should not be enough to turn people away from potentially buying the vehicle, it seems the decision to add an additional charge to include one will definitely annoy some customers.
Tesla expands US LFP battery supply with LG Energy Solution deal: report
Tesla begins Grok AI chatbot rollout to Australia and New Zealand fleet
