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Inflation Reduction Act supports dealerships & fossil fueled "clean vehicles" Inflation Reduction Act supports dealerships & fossil fueled "clean vehicles"

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Inflation Reduction Act supports dealerships & fossil fueled “clean vehicles”

Credit: Self Drive Vehicle Hire

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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.

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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

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

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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.”

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“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.

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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

 

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Johnna Crider is a Baton Rouge writer covering Tesla, Elon Musk, EVs, and clean energy & supports Tesla's mission. Johnna also interviewed Elon Musk and you can listen here

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Tesla launches its new branded Supercharger for Business with first active station

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Credit: Tesla

Tesla has officially launched its first branded Supercharger just months after initiating a new program that allows third-party companies to brand their own charging piles.

The site opened in Land O’ Lakes, Florida, and features eight V4 Supercharging stalls offering up to 325 kW of charging speed. It appears it was purchased by a company called Suncoast Credit Union. This particular branch is located Northeast of Tampa, which is on the Gulf of Mexico.

It features graphics of Florida animals, like alligators:

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Tesla launched this program back in September, and it basically was a way to expand its Supercharger presence and also allow companies to pay for the infrastructure. Tesla maintains it. When it announced the “Supercharger for Business,” it said:

“Purchase and install Superchargers at your business. Superchargers are compatible with all electric vehicles, bringing EV drivers to your business by offering convenient, reliable charging.”

The program does a few things. Initially, it expands EV charging infrastructure and makes charging solutions more readily available for drivers. It can also attract people to those businesses specifically.

Tesla launches new Supercharger program that business owners will love

The chargers can also be branded with any logo that the business chooses, which makes them more personalized and also acts as an advertisement.

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The best part is that the customers do not have to maintain anything about the Supercharger. Tesla still takes care of it and resolves any issues:

“We treat your site like we treat our sites. By providing you with a full-service package that includes network operations, preventative maintenance, and driver support, we’re able to guarantee 97% uptime–the highest in the industry.”

It appears the Superchargers will also appear within the in-car nav during routing, so they’ll be publicly available to anyone who needs to use them. They are still available to all EVs that have worked with Tesla to utilize its infrastructure, and they are not restricted to people who are only visiting the business.

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Tesla reveals its Cybertruck light bar installation fix

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u/Kruzat, see page for license, via Wikimedia Commons

Tesla has revealed its Cybertruck light bar installation fix after a recall exposed a serious issue with the accessory.

Tesla and the National Highway Traffic Safety Administration (NHTSA) initiated a recall of 6,197 Cybertrucks back in October to resolve an issue with the Cybertruck light bar accessory. It was an issue with the adhesive that was provided by a Romanian company called Hella Romania S.R.L.

Tesla recalls 6,197 Cybertrucks for light bar adhesive issue

The issue was with the primer quality, as the recall report from the NHTSA had stated the light bar had “inadvertently attached to the windshield using the incorrect surface primer.”

Instead of trying to adhere the light bar to the Cybertruck with an adhesive, Tesla is now going to attach it with a bracketing system, which will physically mount it to the vehicle instead of relying on adhesive strips or glue.

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Tesla outlines this in its new Service Bulletin, labeled SB-25-90-001, (spotted by Not a Tesla App) where it shows the light bar will be remounted more securely:

The entire process will take a few hours, but it can be completed by the Mobile Service techs, so if you have a Cybertruck that needs a light bar adjustment, it can be done without taking the vehicle to the Service Center for repair.

However, the repair will only happen if there is no delamination or damage present; then Tesla could “retrofit the service-installed optional off-road light bar accessory with a positive mechanical attachment.”

The company said it would repair the light bar at no charge to customers. The light bar issue was one that did not result in any accidents or injuries, according to the NHTSA’s report.

This was the third recall on Cybertruck this year, as one was highlighted in March for exterior trim panels detaching during operation. Another had to do with front parking lights being too bright, which was fixed with an Over-the-Air update last month.

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Tesla is already expanding its Rental program aggressively

The program has already launched in a handful of locations, specifically, it has been confined to California for now. However, it does not seem like Tesla has any interest in keeping it restricted to the Golden State.

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Credit: Grok

Tesla is looking to expand its Rental Program aggressively, just weeks after the program was first spotted on its Careers website.

Earlier this month, we reported on Tesla’s intention to launch a crazy new Rental program with cheap daily rates, which would give people in various locations the opportunity to borrow a vehicle in the company’s lineup with some outrageous perks.

Along with the cheap rates that start at about $60 per day, Tesla also provides free Full Self-Driving operation and free Supercharging for the duration of the rental. There are also no limits on mileage or charging, but the terms do not allow the renter to leave the state from which they are renting.

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The program has already launched in a handful of locations, specifically, it has been confined to California for now. However, it does not seem like Tesla has any interest in keeping it restricted to the Golden State.

Job postings from Tesla now show it is planning to launch the Rental program in at least three new states: Texas, Tennessee, and Massachusetts.

The jobs specifically are listed as a Rental Readiness Specialist, which lists the following job description:

“The Tesla Rental Program is looking for a Rental Readiness Specialist to work on one of the most progressive vehicle brands in the world. The Rental Readiness Specialist is a key contributor to the Tesla experience by coordinating the receipt of incoming new and used vehicle inventory. This position is responsible for fleet/lot management, movement of vehicles, vehicle readiness, rental invoicing, and customer hand-off. Candidates must have a high level of accountability, and personal satisfaction in doing a great job.”

It also says that those who take the position will have to charge and clean the cars, work with clients on scheduling pickups and drop-offs, and prepare the paperwork necessary to initiate the rental.

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The establishment of a Rental program is big for Tesla because it not only gives people the opportunity to experience the vehicles, but it is also a new way to rent a car.

Just as the Tesla purchasing process is more streamlined and more efficient than the traditional car-buying experience, it seems this could be less painful and a new way to borrow a car for a trip instead of using your own.

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