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Inflation Reduction Act supports dealerships & fossil fueled “clean vehicles”
Today, the Senate passed the Inflation Reduction Act which seems like a good thing for EVs and clean energy at first. However, a look at the bill itself takes us into a rabbit hole that smells of fossil fuels and dealership lobbying.
By changing the very definition of electric vehicles of clean vehicles, the Inflation Reduction Act is showing its support for fossil fuels. Let’s take a look at a thread shared by @WholeMarsBlog who took a deep dive into the Inflation Reduction Act.
How Dealerships benefit from the Inflation Reduction Act
As @WholeMarsBlog pointed out in his thread, the Inflation Reduction Act will allow dealerships to benefit from a subsidy. If a consumer purchases an EV from a dealership, they will be able to transfer that tax credit to a dealership.
This will be the only way they can benefit from that tax credit as direct-to-consumer doesn’t qualify.
This gives dealerships an edge over direct-to-consumer sales by allowing consumers to receive a lower monthly payment than ordering directly from a manufacturer such as Tesla or Rivian.
However, it doesn’t make sense to subsidize an industry that is known for dishonest tactics and treating American consumers badly.
Allowing fossil-fueled vehicles to be “clean vehicles”
A vehicle with an internal combustion engine and a small battery is now considered a “clean vehicle” by this bill. Plug-in hybrid EVs have been touted as a cleaner version of the ICE vehicle because it has a battery and can be charged.
However, these are still fossil-fueled powered vehicles and discourage the sales of actual clean vehicles. As @WholeMarsBlog said, “Why buy an F-150 Lightning when an F-150 hybrid qualifies, too?” He also pointed out that hydrogen cars are also now subsidized.
Battery Minerals need to be sourced domestically
This is done in a very tricky way to make it look like the EV tax credit is being extended, but in reality fossil fuel powered hybrids will qualify while electric vehicles will not.
this is so wrong. if people don't plug in these cars they generate MORE emissions due to weight
— Whole Mars Catalog (@WholeMarsBlog) August 7, 2022
Rivian and Lucid along with other automakers will lose their $7,500 tax credit next year due to these battery sourcing requirements making it impossible for any full EV to qualify.
This is why it’s so important for automakers to partner with their domestic suppliers. Talon Metals’ Chief External Affairs Officer & Head of Climate Strategy, Todd Malan spoke with me at length on this topic and you read his thoughts here.
Benchmark Minerals’ take on the Inflation Reduction Act
Interesting commentary on the Inflation Reduction Act from @sdmoores https://t.co/Ma5fFElNjv pic.twitter.com/ePZMHVSX5a
— The Limiting Factor (@LimitingThe) August 7, 2022
Benchmark Minerals published an article on what the Inflation Reduction act means for the EV battery supply chain and I think it’s important to consider some of the points they’ve made.
Simon Mores, CEO of Benchmark said that it’s almost impossible that any of the Fair Trade Alliance countries are able to fill China’s raw material gap for our EV demand between now and 2024.
“The presently proposed $7,500 credit for those EVs that do not contain any critical minerals from China or Russia will effectively be made redundant, considering the proposal ends in 2024 just when a domestic supply chain is beginning to gain momentum.”
“It is almost impossible that any Fair Trade Alliance countries – of which Australia and Chile are the stand out – could fill China’s raw material gap for the USA’s EV demand between now and 2024.”
“This is considering the basic lack of raw material supply in many markets and the fact that most future raw material has already been contracted and accounted for.”
“If the US wants the incentive to really work, it needs to extend this by 4 years to 2028 so the battery supply chain builds into the incentive.”
With this thought in mind, @WholeMarsBlog pointed out that smaller batteries could meet the percentage requirements while larger batteries powering the entire vehicle can not. In other words, this opens the door for plug-in hybrid EVs to meet the rising demand for clean vehicles.
My 2.5¢
I think it’s important to note these flaws in the bill, but I also think that we do need a stronger U.S. battery supply chain. However, we shouldn’t sacrifice EVs for fossil fuels to get that stronger supply chain.
I’ve always thought that it was silly to include plug-in hybrid vehicles as a “clean vehciel” when they use both batteries and fossil fuels. Hybrids are great for those who want both options. I’ve also heard the arguments that they are more affordable than a Tesla, but it’s 2022 and if someone is in the market for a new car, there are options for a variety of EVs.
I think @WholeMarsBlog made an excellent point. I think Todd Malan made excellent points as well. At the end of the day, however, politricksters will politrick. The fact that they all agreed on this bill is, I think, kind of shocking.
Disclaimer: Johnna is long Tesla.
I’d love to hear from you! If you have any comments, concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter @JohnnaCrider1
In a notable intersection of Big Tech powerhouses, Meta, led by Mark Zuckerberg, has partnered with Canadian energy infrastructure giant Enbridge on a significant renewable energy initiative that will rely on battery technology from Elon Musk’s Tesla.
The project, which was announced this week, marks another step in Meta’s aggressive push to power its expanding data center operations with clean energy, dispelling many of the complaints people have about them.
This new development is located near Cheyenne, Wyoming, and will feature a 365-megawatt (MW) solar farm paired with a 200 MW/1,600 megawatt-hour (MWh) battery energy storage system, also known as BESS. Tesla is providing the batteries for the project, valued at roughly $200 million.
The story was originally reported by Utility Dive.
This Wyoming project represents the first phase of Enbridge and Meta’s joint “Cowboy Project.” Once operational, it will deliver power to Meta’s regional data centers through Cheyenne Light, Fuel, and Power under Wyoming’s Large Power Contract Service tariff.
This tariff, originally developed in collaboration with Microsoft and Black Hills Energy, is designed specifically for large loads like data centers. It ensures that the renewable supply serves hyperscale customers without impacting retail electricity rates for other users.
The battery system will operate under a long-term tolling agreement, providing dispatchable capacity that enhances grid reliability. During periods of high demand, the utility can access the backup generation, addressing one of the key challenges of integrating large-scale renewables with the explosive growth of data center electricity demand driven by artificial intelligence.
This latest collaboration builds on prior joint efforts between Enbridge and Meta in Texas, including the 600 MW Clear Fork Solar, 152 MW Easter Wind, and 300 MW Cone Wind projects. Together with the Wyoming initiative, the companies have now partnered on roughly 1.6 gigawatts (GW) of combined solar, wind, and storage capacity.
The deal highlights the intensifying demand for reliable, low-carbon power from technology giants. Meta has committed to supporting its data center growth with renewable energy, joining peers like Microsoft and Google in seeking large-scale solutions. Enbridge’s Allen Capps described the project as “one of the larger utility-scale battery installations supporting U.S. data center operations and growth.”
The involvement of Tesla’s battery technology adds an intriguing layer, linking two of the world’s most prominent tech leaders—Zuckerberg and Musk—in the clean energy transition.
As data centers continue to drive unprecedented electricity load growth across the United States, projects like this one illustrate how hyperscalers are turning to strategic partnerships with traditional energy players and innovative storage solutions to meet both sustainability goals and reliability needs.
SpaceX has decided to stand down from what was supposed to be the first test launch of Starship’s v3 rocket tonight after a minor issue with a hydraulic pin delayed the flight once more.
The company scrubbed its first test flight of the upgraded Starship v3 on May 21 in the final minutes of the countdown. SpaceX CEO Elon Musk quickly took to social media platform X, explaining that a hydraulic pin on the launch tower’s “chopsticks” arm failed to retract properly.
Musk added that the company would fix the issue this evening. SpaceX will attempt another launch tomorrow night at 5:30 p.m. CT, 6:30 p.m. ET, and 3:30 p.m. PT.
The hydraulic pin holding the tower arm in place did not retract.
If that can be fixed tonight, there will be another launch attempt tomorrow at 5:30 CT. https://t.co/DJAdvDYQpH
— Elon Musk (@elonmusk) May 21, 2026
The countdown for Starship Flight 12 — featuring the taller and more capable V3 stack with Booster 19 and Ship 39 — had been progressing smoothly until the late-stage issue surfaced. The Mechazilla tower arm, designed to secure the vehicle on the pad and eventually catch returning boosters, could not complete its retraction sequence.
SpaceX teams immediately began troubleshooting the hydraulic system for an overnight repair.
Starship V3 introduces several significant upgrades over earlier versions. These include greater propellant capacity, more powerful Raptor 3 engines, larger grid fins, enhanced heat shielding, and an improved fuel transfer system.
We covered the changes that were announced just days ago by SpaceX:
SpaceX unveils sweeping Starship V3 upgrades ahead of May 19 launch
The changes are intended to increase payload performance, support higher flight rates, and advance the vehicle toward operational missions, including Starlink deployments, NASA Artemis lunar landings, and future crewed Mars flights. The debut flight from Starbase’s new Launch Pad 2 marked an important milestone in scaling up the fully reusable Starship system.
This stand-down highlights the intricate challenges of preparing the world’s most powerful rocket for flight. Despite extensive pre-launch checks, a single component in the ground support equipment can force a scrub.
The incident aligns with Starship’s proven iterative development approach. Previous test flights have encountered both successes and setbacks, each providing critical data that refines hardware and procedures. Some outlets may call some of these flights “failures,” when in reality, they are all opportunities for SpaceX to learn for the next attempt.
With V3, SpaceX aims to reduce ground-system dependencies and increase launch cadence to meet ambitious long-term goals.
The Tesla Model Y became the first-ever car to reach a legendary Norwegian milestone, surpassing 100,000 new registrations after gaining a reputation as one of the most popular vehicles in the country and the world.
As of May 20, Norwegian authorities have registered 100,224 units of the electric SUV, according to data from local outlet Opplysningsrådet for veitrafikken (OFV).
By population, roughly one in every 29 passenger cars on Norwegian roads is now a Model Y, underscoring its rapid rise as a national favorite.
Since the first deliveries in August 2021, the Model Y has transformed from a newcomer to a staple in Norwegian traffic.
Tesla back on top as Norway’s EV market surges to 98% share in February
Geir Inge Stokke, the Managing Director of OFV, described the achievement as “remarkable,” noting that few single models have gained such traction so quickly. “Tesla Model Y has hit the Norwegian market spot on, and the numbers illustrate how fast the EV market has developed here,” Stokke said.
The Model Y’s success reflects Norway’s aggressive push toward electrification. Nearly nine out of ten units, 87.6 percent, to be exact, are privately registered, with the remaining 12.4 percent on company plates. Owners span the country, from major cities to smaller municipalities, proving it is no longer just an urban or niche vehicle but a true “people’s car.
Who is Buying Tesla Model Ys in Norway?
Typical Model Y drivers are men in their early 40s. The average registered user age is 44, with 83 percent male and 17 percent female. Stokke noted that household usage often extends beyond the primary registrant, broadening the vehicle’s real-world appeal.
Geographically, adoption concentrates in urban centers with strong charging infrastructure. Oslo leads with 16,861 registrations (16.82 percent of the national total), followed by Bergen (7,450), Bærum (4,313), and Trondheim (4,240).
The top five municipalities—Oslo, Bergen, Bærum, Trondheim, and Asker—account for 35,463 units, or about 35 percent of all Model Ys. Yet the vehicle’s presence outside big cities highlights its broad acceptance.
Growth Trajectory and Popularity
Tesla built a lot of sales momentum in a short amount of time. In 2021, registrations closed out at 8,267, but more than doubled to more than 17,000 units in 2022 and more than 23,000 units in 2023. 2025 was the company’s strongest year yet, as Tesla managed to record 27,621 registrations.
Through 2026, Tesla already has 7,036 registrations.
Tesla’s Global Success with the Model Y
Tesla has tasted so much success with the Model Y; it has been the best-selling car in the world three times, it has dominated EV sales in numerous countries, and contributed to a mass adoption of electric vehicles across the planet.
As Stokke emphasized, the Model Y’s journey from newcomer to icon mirrors Norway’s broader success story. With robust incentives that push sales, excellent infrastructure, and consumer eagerness to transition to sustainable powertrains, the country continues setting global benchmarks in sustainable mobility.
The Tesla Model Y stands as a shining example of how quickly change can happen when conditions align.
Zuckerberg’s Meta taps Musk’s Tesla for massive clean energy project
SpaceX reveals reason for Starship v3 stand down, announces next launch date
