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Oregon’s EV incentive program that brought Tesla prices below $30k is running out of money

Credit: Reddit | u/BattMastard

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Oregon’s electric vehicle incentive program that was widely publicized for bringing the price of a Tesla Model 3 well below $30,000 is being suspended for a year starting in May because it is running out of money.

According to a new report from Oregon Live, so many people have applied for the program because of the hefty incentives that the program is being paused for 12 months in May.

The Clean Vehicle Rebate Program is reportedly running out of money as it has paid out over $71 million to help buy or lease roughly 25,000 EVs in the past five years.

In February, we reported that the incentives had pushed Model 3 prices from nearly $44,000 to between $26,990-$28,390, making the Tesla mass-market sedan extremely affordable and bringing it within the territory of the Toyota Corolla in terms of pricing.

Tesla Model 3 can be acquired for less than $27,000 in Oregon: estimate

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The incentive program allowed vehicles to be stacked with the $7,500 federal tax credit. The Oregon Department of Environmental Quality’s Oregon Clean Vehicle and Charge Ahead Rebate also was $7,500, but the savings didn’t stop there.

Local Oregon residents could also receive $2,500 extra, and low and moderate-income residents were given an additional $5,000 rebate that could have been used on new or used electric cars.

According to Fox Business, Oregon expects 1.5 million people to be driving EVs in the state by 2035. While the state has not committed to a ban on gas vehicle sales by that time, other states, like California and Maryland, have already taken steps to make it a reality.

Incentives are a big part of the EV buying experience as the price of the vehicle and where its materials are sourced can all contribute to whether or not it qualifies for incentives.

In an attempt to get more EVs on the road, states have offered their own incentive programs, and they vary from location to location. However, most EVs can be purchased by stacking state and local rebates with federal incentives.

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The $7,500 credit is in effect for deliveries taken no later than March 31, 2023.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla will open two new Diners after raging success at LA location

It took several years to get the Diner developed, built, and opened. On July 21, Tesla launched the Diner to the public at 4:20 p.m. local time (of course), after years of development. Musk first offered the idea of a drive-in Supercharger Diner back in December 2018.

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tesla diner in los angeles during daytime
Credit: Matt Hartman

Tesla will open two new Diner locations in the United States after its first location in Los Angeles has been a raging success, as it is constantly packed and serving food for 24 hours a day, every day.

Tesla CEO Elon Musk said that the initial Diner location on Santa Monica Boulevard is “going well,” and based on reviews and its constant out-the-door lines, it is safe to say it has been a major outlet of interest for people in the area.

It features two massive movie screens, a menu that is locally sourced and has been created by a world-class chef, and Supercharging for EVs. It truly is the perfect stop for those who are hungry, need entertainment, or need a quick charge.

tesla diner

Credit: Tesla

So far, Tesla has not released too many details on the success of the restaurant, but it did state in a graphic for its Q3 Supercharging stats that it sold roughly 50,000 burgers at the Diner in Q3, roughly 715 each day. Burgers are not the only thing on the menu, either.

With how well it has gone, Musk is now considering the possibility of new locations that are notable to Tesla, including Austin and Palo Alto.

On Friday, Musk revealed he believes it “probably makes sense to open one” near Gigafactory Texas and Engineering HQ in Palo Alto:”

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It took several years to get the Diner developed, built, and opened. On July 21, Tesla launched the Diner to the public at 4:20 p.m. local time (of course), after years of development. Musk first offered the idea of a drive-in Supercharger Diner back in December 2018.

By 2023, Tesla had secured building permits and broken ground on the site in September of that year.

Since its launch, it has been a popular hotspot for Tesla fans and others to visit, although it has attracted unwanted attention from protestors as well.

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They look hungry. If they walked inside and ordered some food, maybe they’d stop yelling into microphones and threatening Musk.

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Elon Musk’s AI empire grows as xAI leases Palo Alto space near Tesla

The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area.

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Credit: xAI/X

Elon Musk’s artificial intelligence startup, xAI, is expanding its Silicon Valley footprint, leasing roughly 105,000 square feet of office space at Palo Alto’s Page Mill Center, just blocks away from Tesla’s engineering complex.

Musk’s deepening Silicon Valley footprint

People familiar with the matter have informed the San Francisco Business Times that xAI’s lease at Page Mill Center may already have been finalized, adding to the company’s existing headquarters at 1450 Page Mill Road. The two offices share a parking lot, reflecting Musk’s strategy of consolidating his ventures. Tesla’s engineering hub is also just a few blocks away.

The new offices form a growing cluster of Musk-led companies in the heart of the Valley and come as xAI has listed over 250 job openings. These include listings for engineers, designers, and technical staff, among others. 

xAI’s aggressive hiring push hints at rapid scaling, which makes quite a lot of sense considering the company’s ambitious projects. xAI oversees the large language model Grok and other AI initiatives such as the newly launched Grokipedia, and the startup has also acquired the social media platform X. Real estate owner Hudson Pacific Properties, the owners of Page Mill Center, have so far declined to comment.

AI demand and Silicon Valley’s office rebound

Silicon Valley’s office market, long subdued by remote work trends, is seeing renewed activity from AI firms. Hudson Pacific told investors this summer that tenant demand has reached a three-year high, with over half of new leases driven by artificial intelligence companies. Vacancy rates have now fallen for four straight quarters to 16.6% as well, CBRE reported.

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The expanding footprint of Elon Musk’s companies in Palo Alto bodes well for the CEO’s plans in the area. Musk, after all, has previously butted heads with officials, resulting in his two biggest ventures, electric vehicle maker Tesla and private space company SpaceX, officially relocating their headquarters to Texas.

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Starship lunar update shows SpaceX will not give up the Moon without a fight

SpaceX stated that the revised concept aims to “result in a faster return to the moon while simultaneously improving crew safety.”

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Credit: SpaceX

SpaceX is reassessing its Starship mission plan for NASA’s Artemis 3 program, exploring what it calls a “simplified” architecture that could accelerate the first crewed lunar landing of the 21st century. 

The private space company stated that the revised concept aims to “result in a faster return to the moon while simultaneously improving crew safety,” following NASA’s decision to reopen the lunar mission contract to new competition.

SpaceX outlines HLS progress

In a blog post titled To the Moon and Beyond, SpaceX detailed recent Starship milestones and reaffirmed its role as a “core enabler” of NASA’s lunar ambitions. As per SpaceX, its efforts are not just aimed at returning to the Moon. It is aimed at establishing a permanent, sustainable presence on the lunar surface. 

“Since the contract was awarded, we have been consistently responsive to NASA as requirements for Artemis III have changed and have shared ideas on how to simplify the mission to align with national priorities. In response to the latest calls, we’ve shared and are formally assessing a simplified mission architecture and concept of operations that we believe will result in a faster return to the Moon while simultaneously improving crew safety,” SpaceX wrote in its post.

The post described Starship’s vast potential for lunar operations, noting that a single vehicle provides over 600 cubic meters of pressurized habitable volume, roughly two-thirds that of pressurized volume of the entire International Space Station, and is “complete with a cabin that can be scaled for large numbers of explorers and dual airlocks for surface exploration.” 

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SpaceX also mentioned its fixed-price NASA contract, which ensures taxpayer protection while incentivizing milestone-based progress. As part of its preparations for a Moon mission, SpaceX plans to conduct a key in-space refueling demonstration in 2026, as noted in a Space.com report. Regerdless, SpaceX is still continuing the parallel development of its “core” Starship for Mars and deep-space exploration.

SpaceX’s update followed NASA concerns

NASA Acting Administrator Sean Duffy recently voiced frustration over Starship’s pace, noting on CNBC that SpaceX “pushed their timelines out” while the U.S. remains in a race against rivals. In a comment, Duffy stated that NASA will not wait for one company as it pushes forward with its Artemis program.

“I love SpaceX. It’s an amazing company. The problem is, they’re behind. They’ve pushed their timelines out, and we’re in a race against China. The president and I want to get to the Moon in this president’s term, so I’m going to open up the contracts. I’m going to let other space companies compete with SpaceX, like Blue Origin,” Duffy said.

Elon Musk publicly criticized Duffy over his remarks, but SpaceX’s latest update has shifted the focus back to technical progress and mission readiness. While SpaceX did not elaborate on the details of its simplified architecture, Musk hinted that Starship could eventually accomplish “the whole moon mission” on its own. “Starship will build Moonbase Alpha,” Musk wrote in a recent post on X. 

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