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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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Tesla Model 3 gets perfect 5-star Euro NCAP safety rating

Tesla prides itself on producing some of the safest vehicles on the road today.

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Credit: Tesla Singapore/X

Tesla prides itself on producing some of the safest vehicles on the road today. Based on recent findings from the Euro NCAP, the 2025 Model 3 sedan continues this tradition, with the vehicle earning a 5-star overall safety rating from the agency.

Standout Safety Features

As could be seen on the Euro NCAP’s official website, the 2025 Model 3 achieved an overall score of 90% for Adult Occupants, 93% for Child Occupants, 89% for Vulnerable Road Users, and 87% for Safety Assist. This rating, as per the Euro NCAP, applies to the Model 3 Rear Wheel Drive, Long Range Rear Wheel Drive, Long Range All Wheel Drive, and Performance All Wheel Drive.

The Euro NCAP highlighted a number of the Model 3’s safety features, such as its Active Hood, which automatically lifts during collisions to mitigate injury risks to vulnerable road users, and Automatic Emergency Braking System, which now detects motorcycles through an upgraded algorithm. The Euro NCAP also mentioned the Model 3’s feature that prevents initial door opening if someone is approaching the vehicle’s blind spot.

Standout Safety Features

In a post on its official Tesla Europe & Middle East account, Tesla noted that the company is also introducing new features that make the Model 3 even safer than it is today. These include functions like head-on collision avoidance and crossing traffic AEB, as well as Child Left Alone Detection, among other safety features.

“We also introduced new features to improve Safety Assist functionality even further – like head-on collision avoidance & crossing traffic AEB – to detect & respond to potential hazards faster, helping avoid accidents in the first place. 

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“Lastly, we released Child Left Alone Detection – if an unattended child is detected, the vehicle will turn on HVAC & alert caregivers via phone app & the vehicle itself (flashing lights/audible alert). Because we’re using novel in-cabin radar sensing, your Tesla is able to distinguish between adult vs child – reduced annoyance to adults, yet critical safety feature for kids,” Tesla wrote in its post on X.

Below is the Euro NCAP’s safety report on the 2025 Tesla Model 3 sedan.

Euroncap 2025 Tesla Model 3 Datasheet by Simon Alvarez on Scribd

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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.

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Credit: Elon Musk/X

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.

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Tesla posts Optimus’ most impressive video demonstration yet

The humanoid robot was able to complete all the tasks through a single neural network.

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Credit: Tesla Optimus/X

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).

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“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.

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