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Inflation Reduction Act used EV funding mostly applies to PHEVs

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The vast majority of vehicles that qualify for Inflation Reduction Act incentives are PHEVs instead of fully electric vehicles.

One of the most consistent criticisms of electric vehicles is their high upfront cost compared to gas and hybrid alternatives. However, according to market research completed by Recurrent Auto, as more and more new EVs have entered the market, used electric vehicles have finally decreased in price this September. However, Inflation Reduction Act funds created to help make these used electric vehicles more affordable, mainly apply to plug-in hybrid vehicles instead.

In their Q4 Market ReportRecurrent found that the automotive market has generally begun to cool off, with used cars nearing last year’s prices. And while used EV prices have been “more resilient” (remaining more expensive), according to the report, they too have declined in price.

One influential factor regarding used EV prices has been the Inflation Reduction Act (IRA). The IRA stipulates that “EVs” with a battery of at least 7kWh, new or used, are eligible for federal incentives to varying degrees. While this was a significant move in helping buyers purchase vehicles in the price range with the highest demand, between $10-15,000 for electric vehicles, other stipulations in the Act mean that most fully electric vehicle models don’t qualify.

The IRA stipulates that used “EVs” (electrified vehicles) must be sold for under $25,000 to qualify, but this only accounts for what Recurrent says is ~12% of used EVs (fully electric vehicles) on the market. In contrast, countless used PHEVs can be purchased under the price cap.

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Credit: Recurrent Auto

According to the report, “the biggest beneficiaries of the used EV tax credit in 2023 may not be those vehicles that most people think of as EVs. Fifty percent of the cars that meet the price requirement for the used tax credit are plug-in hybrids (PHEVs).” In making more fully electric vehicles qualify under the current standards, Recurrent points out that manufacturers must expand EV options and begin to produce affordable options for the U.S. market.

This is not the only criticism leveled at the Inflation Reduction Act in recent months. Manufacturers and governments worldwide have labeled the new EV funding everything from “contradictory” to “discriminatory,” mainly regarding the Act’s requirement for U.S. assembly of new EVs to receive incentives.

Nonetheless, demand for EVs and used EVs remains high. Recurrent points to the growing percentage of electric vehicles on American roads, particularly in California, as proof of this fact. But buyers are also being pushed more than ever to consider EVs as gas prices remain elevated, following news that OPEC has cut oil production.

It remains unclear how the market will change or if the IRA will be altered as demand shifts to more electrified vehicles in the coming quarter. Still, if Tesla and other manufacturer sales data are to be any indicator, fully electric vehicle sales will likely remain unhampered. Hopefully, with the introduction of more EV models at more price ranges, used electric vehicle prices can work towards price parity with used ICE/hybrid counterparts.

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Elon Musk says Tesla will take Safety Drivers out of Robotaxi: here’s when

“The safety driver is just there for the first few months to be extra safe. Should be no safety driver by end of year.”

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Credit: Joe Tegtmeyer | X

Tesla CEO Elon Musk said today that the company plans to completely eliminate Safety Drivers from its Robotaxi fleet, which differs from the Safety Monitors it uses.

Tesla’s Robotaxi platform utilizes employees in the front passenger seat during city rides in Austin and the driver’s seat of the vehicles during highway operations in Austin, as well as during all rides in the Bay Area.

Tesla adjusts Robotaxi safety monitor strategy in Austin with new service area

Musk said the presence of a Safety Driver “is just there for the first few months to be extra safe,” but there are plans to remove them in an effort to remove the crutches the company uses during the early stages of Robotaxi.

The CEO then outlined a timeframe for when it would remove the presence of an employee in the driver’s seat in both Austin and the Bay Area. He said there “should be no safety driver by end of year.”

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Having a Safety Driver or Monitor has been a major point of criticism from Robotaxi skeptics and Tesla critics.

However, Tesla has maintained that its priority in the early stages is the safety of riders, which will keep things running; even a single negative incident could derail self-driving efforts as a whole, including those outside of the company.

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Tesla executives have said their attitude toward safety is “paranoid,” but for good reason: an accident could set back the progress that it and many other companies, including rivals like Waymo, have made in the past few years.

For now, it might be a point of criticism for some, but it’s smart in the near term. Musk plans for Tesla to have Robotaxi operating for half of the U.S. population by the end of the year as well, so it will be interesting to see if it can maintain these timelines.

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Tesla is already giving Robotaxi privileges hours after opening public app

This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.

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Credit: Tesla

Tesla is already giving Robotaxi privileges to those who downloaded the app and joined its waitlist just hours after it launched in the United States.

As the Robotaxi platform has been operating in Austin for several months, Tesla is now allowing the general public to download its app and call for a driverless ride in the city.

Tesla Robotaxi makes major expansion with official public app launch

The company previously sent invitations to select media outlets and Tesla influencers, seeking initial feedback on the performance of the Robotaxi platform.

There have been positive reviews, but, as with any Beta program, some mishaps have also occurred, although none have been significant.

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As of the writing of this article, the City of Austin only lists one incident involving a Tesla Robotaxi, noting it as a “Safety Concern,” but not an accident or collision.

This morning, Tesla launched the app in the Apple Store, giving iOS users the ability to download and join a waitlist in hopes of gaining access.

Tesla is already granting Robotaxi access to several of those who have downloaded the app and gotten on the waitlist early:

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With the launch of the public app, we were not too sure how soon Tesla would be able to initiate bringing more riders into the Robotaxi program. The immediate admittance for some riders just hours after the launch is a big positive and is surely a sign of strength for Tesla and its Robotaxi program.

What many will look for moving forward is the expansion of the geofence, which does not seem like a problem, as Tesla has already managed to do this on three occasions. The most recent expansion has expanded the service area to approximately 190 square miles.

People will also look for evidence of fleet expansion, a concern that has been a concern for many, especially since Tesla has not been completely transparent about it. They have revealed a recent service fleet growth of 50 percent, but there has been no specific number of vehicles mentioned.

Tesla reveals it has expanded its Robotaxi fleet in Austin

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Tesla explains why Robotaxis now have safety monitors in the driver’s seat

The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media.

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Credit: Tesla

Tesla has provided an explanation about the presence of safety monitors in the driver’s seat of its autonomous Robotaxi units.

The autonomous ride-hailing service is currently being deployed in Austin and the Bay Area, with more cities across the United States expected to gain access to the service later this year.

Safety Monitors

When Tesla launched its initial Robotaxi program in Austin, the company made headlines for operating vehicles without a human in the driver’s seat. Even with this setup, however, Tesla still had safety monitors in the passenger seat of the Robotaxis. The safety monitors, which do not interact with passengers, have been observed to report issues and other behaviors from the autonomous vehicles in real time. 

Safety monitors on the driver’s seat were also employed in the service’s Bay Area rollout, though numerous members of the EV community speculated that this was likely done to meet regulations in California. However, with the expansion of the Austin geofence, riders in Tesla’s Robotaxis observed that the safety monitors in the city have been moved to the driver’s seat as well.

Tesla’s explanation

The update to Austin’s safety monitors became a point of interest among Tesla watchers on social media. Longtime FSD tester Whole Mars Catalog, for one, speculated that the move might be due to Texas’ new regulations for autonomous vehicles, which took effect recently. Interestingly enough, the official Tesla Robotaxi account on X responded to the FSD tester, providing an explanation behind the safety monitor’s move to the driver’s seat. 

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“Safety monitors are only in the driver’s seat for trips that involve highway driving, as a self-imposed cautious first step toward expanding to highways,” the Tesla Robotaxi account noted.

Tesla has been extremely cautious with its autonomous driving program, particularly with the rollout of its Robotaxi service, which use Unsupervised FSD. This is quite understandable considering the negative media slant that Tesla is consistently subjected to, which could very well result in minute incidents or mistakes by Robotaxis being blown out of proportion.

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