

News
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
Elon Musk
USDOT Secretary visits Tesla Giga Texas, hints at national autonomous vehicle standards
The Transportation Secretary also toured the factory’s production lines and spoke with CEO Elon Musk.

United States Department of Transportation (USDOT) Secretary Sean Duffy recently visited Tesla’s Gigafactory Texas complex, where he toured the factory’s production lines and spoke with CEO Elon Musk. In a video posted following his Giga Texas visit, Duffy noted that he believes there should be a national standard for autonomous vehicles in the United States.
Duffy’s Giga Texas Visit
As could be seen in videos of his Giga Texas visit, the Transportation Secretary seemed to appreciate the work Tesla has been doing to put the United States in the forefront of innovation. “Tesla is one of the many companies helping our country reach new heights. USDOT will be right there all the way to make sure Americans stay safe,” Duffy wrote in a post on X.
He also praised Tesla for its autonomous vehicle program, highlighting that “We need American companies to keep innovating so we can outcompete the rest of the world.”
National Standard
While speaking with Tesla CEO Elon Musk, the Transportation Secretary stated that other autonomous ride-hailing companies have been lobbying for a national standard for self-driving cars. Musk shared the sentiment, stating that “It’d be wonderful for the United States to have a national set of rules for autonomous driving as opposed to 50 independent sets of rules on a state-by-state rules basis.”
Duffy agreed with the CEO’s point, stating that, “You can’t have 50 different rules for 50 different states. You need one standard.” He also noted that the Transportation Department has asked autonomous vehicle companies to submit data. By doing so, the USDOT could develop a standard for the entire United States, allowing self-driving cars to operate in a manner that is natural and safe.
News
Tesla posts Optimus’ most impressive video demonstration yet
The humanoid robot was able to complete all the tasks through a single neural network.

When Elon Musk spoke with CNBC’s David Faber in an interview at Giga Texas, he reiterated the idea that Optimus will be one of Tesla’s biggest products. Seemingly to highlight the CEO’s point, the official Tesla Optimus account on social media platform X shared what could very well be the most impressive demonstration of the humanoid robot’s capabilities to date.
Optimus’ Newest Demonstration
In its recent video demonstration, the Tesla Optimus team featured the humanoid robot performing a variety of tasks. These include household chores such as throwing the trash, using a broom and a vacuum cleaner, tearing a paper towel, stirring a pot of food, opening a cabinet, and closing a curtain, among others. The video also featured Optimus picking up a Model X fore link and placing it on a dolly.
What was most notable in the Tesla Optimus team’s demonstration was the fact that the humanoid robot was able to complete all the tasks through a single neural network. The robot’s actions were also learned directly from Optimus being fed data from first-person videos of humans performing similar tasks. This system should pave the way for Optimus to learn and refine new skills quickly and reliably.
Tesla VP for Optimus Shares Insight
In a follow-up post on X, Tesla Vice President of Optimus (Tesla Bot) Milan Kovac stated that one of the team’s goals is to have Optimus learn straight from internet videos of humans performing tasks, including footage captured in third person or by random cameras.
“We recently had a significant breakthrough along that journey, and can now transfer a big chunk of the learning directly from human videos to the bots (1st person views for now). This allows us to bootstrap new tasks much faster compared to teleoperated bot data alone (heavier operationally).
“Many new skills are emerging through this process, are called for via natural language (voice/text), and are run by a single neural network on the bot (multi-tasking). Next: expand to 3rd person video transfer (aka random internet), and push reliability via self-play (RL) in the real-, and/or synthetic- (sim / world models) world,” Kovac wrote in his post on X.
News
Starship Flight 9 nears as SpaceX’s Starbase becomes a Texan City
SpaceX’s launch site is officially incorporated as Starbase, TX. Starship Flight 9 could launch on May 27, 2025.

SpaceX’s Starbase is officially incorporated as a city in Texas, aligning with preparations for Starship Flight 9. The newly formed city in Cameron County serves as the heart of SpaceX’s Starship program.
Starbase City spans 1.5 square miles, encompassing SpaceX’s launch facility and company-owned land. A near-unanimous vote by residents, who were mostly SpaceX employees, led to its incorporation. SpaceX’s Vice President of Test and Launch, Bobby Peden, was elected mayor of Starbase. The new Texas city also has two SpaceX employees as commissioners. All Starbase officials will serve two-year terms unless extended to four by voters.
As the new city takes shape, SpaceX is preparing for the Starship Flight 9 launch, which is tentatively scheduled for May 27, 2025, at 6:30 PM CDT from Starbase, Texas.
SpaceX secured Federal Aviation Administration (FAA) approval for up to 25 annual Starship and Super Heavy launches from the site. However, the FAA emphasized that “there are other licensing requirements still to be completed,” including policy, safety, and environmental reviews.
On May 15, the FAA noted SpaceX updated its launch license for Flight 9, but added: “SpaceX may not launch until the FAA either closes the Starship Flight 8 mishap investigation or makes a return to flight determination. The FAA is reviewing the mishap report SpaceX submitted on May 14.”
Proposed Texas legislation could empower Starbase officials to close local highways and restrict Boca Chica Beach access during launches. Cameron County Judge Eddie Trevino, Jr., opposes the Texas legislation, insisting beach access remain under county control. This tension highlights the balance between SpaceX’s ambitions and local interests.
Starbase’s incorporation strengthens SpaceX’s operational base as it gears up for Starship Flight 9, a critical step in its mission to revolutionize space travel. With growing infrastructure and regulatory hurdles in focus, Starbase is poised to become a cornerstone of SpaceX’s vision, blending community development with cutting-edge aerospace innovation.
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