West Virginia Democrat Joe Manchin blasted a potential expansion of the electric vehicle (EV) tax credit on Thursday, while also calling for the development of the hydrogen sector to decarbonize the transportation industry.
Manchin, who called a Biden administration proposal to broaden the EV tax credit program “ludicrous,” said the waiting period for EVs right now is already so long that there is no point to offering more money to incentivize consumers to buy a battery-powered car.
“There is a waiting list for EVs right now, with the fuel prices, but they still want us to throw a $5,000, or $7,000 or $12,000 credit for us to buy electric vehicles,” said during a Thursday Senate budget hearing. Manchin added that production volumes of EVs are far away from fulfilling current demand levels, so it would be ridiculous to offer additional funding to the programs.
It is evident that EVs are becoming more popular, and with automakers in nearly all situations relating to EVs still working to produce and sell 1 million electric powertrains a year, demand is outweighing current production metrics. However, companies are funneling incredibly large amounts of money toward EV development, while smaller, EV-dedicated companies are ramping production. Tesla will produce at least 1 million vehicles globally this year after coming just short of the mark in 2021. Many projections have the company producing at least 1.5 million vehicles this year, but some of its cars are still sold out until 2023.
The EV tax credit was set to be introduced with new terms. That is until President Biden’s Build Back Better plan stalled after Manchin refused to support the bill. It would have increased the $7,500 credit to as much as $12,500, granted the vehicle and its battery were built in U.S facilities that were unionized to see the full benefit. It would have also put an end to EV credit caps, which Tesla and General Motors both have as they are disqualified from offering the credit after selling 200,000 EV units.
Manchin added that the money put toward expanding the EV tax credit program should be funneled to other sources, like research into hydrogen powertrains. Manchin is a member of the West Virginia Hydrogen Hub Coalition, which welcomed Speaker of the House Roger Hanshaw, President of the Senate Craig Blair, Senate Minority Leader Stephen Baldwin, and House Minority Leader Doug Skaff to the group yesterday.
Manchin has been openly critical of a full transition to EVs in the past and has openly criticized the “advantages” of an all-EV future.
“I have grave concerns about moving too quickly towards an EV-only future,” Manchin said at a panel hearing earlier this month.
Manchin also believes EVs are not a way to free dependence on oil from other countries. “It is frustrating to hear calls for a swifter transition to electrified transportation to reduce our dependence on foreign oil,” Manchin said in early April. “We cannot replace one unreliable foreign supply chain with another and think it’s going to solve our problems.”
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Elon Musk
Judge clears path for Elon Musk’s OpenAI lawsuit to go before a jury
The decision maintains Musk’s claims that OpenAI’s shift toward a for-profit structure violated early assurances made to him as a co-founder.
A U.S. judge has ruled that Elon Musk’s lawsuit accusing OpenAI of abandoning its founding nonprofit mission can proceed to a jury trial.
The decision maintains Musk’s claims that OpenAI’s shift toward a for-profit structure violated early assurances made to him as a co-founder. These claims are directly opposed by OpenAI.
Judge says disputed facts warrant a trial
At a hearing in Oakland, U.S. District Judge Yvonne Gonzalez Rogers stated that there was “plenty of evidence” suggesting that OpenAI leaders had promised that the organization’s original nonprofit structure would be maintained. She ruled that those disputed facts should be evaluated by a jury at a trial in March rather than decided by the court at this stage, as noted in a Reuters report.
Musk helped co-found OpenAI in 2015 but left the organization in 2018. In his lawsuit, he argued that he contributed roughly $38 million, or about 60% of OpenAI’s early funding, based on assurances that the company would remain a nonprofit dedicated to the public benefit. He is seeking unspecified monetary damages tied to what he describes as “ill-gotten gains.”
OpenAI, however, has repeatedly rejected Musk’s allegations. The company has stated that Musk’s claims were baseless and part of a pattern of harassment.
Rivalries and Microsoft ties
The case unfolds against the backdrop of intensifying competition in generative artificial intelligence. Musk now runs xAI, whose Grok chatbot competes directly with OpenAI’s flagship ChatGPT. OpenAI has argued that Musk is a frustrated commercial rival who is simply attempting to slow down a market leader.
The lawsuit also names Microsoft as a defendant, citing its multibillion-dollar partnerships with OpenAI. Microsoft has urged the court to dismiss the claims against it, arguing there is no evidence it aided or abetted any alleged misconduct. Lawyers for OpenAI have also pushed for the case to be thrown out, claiming that Musk failed to show sufficient factual basis for claims such as fraud and breach of contract.
Judge Gonzalez Rogers, however, declined to end the case at this stage, noting that a jury would also need to consider whether Musk filed the lawsuit within the applicable statute of limitations. Still, the dispute between Elon Musk and OpenAI is now headed for a high-profile jury trial in the coming months.
News
Tesla Giga Shanghai celebrates 5 million electric drive unit milestone
The milestone was celebrated by the company in a post on its official Weibo account.
Tesla China has reached another manufacturing milestone at Gigafactory Shanghai, rolling out the facility’s 5 millionth locally produced drive unit.
The milestone was celebrated by the company in a post on its official Weibo account. In its post, the Giga Shanghai team could be seen posing with the 5 millionth drive unit.
Giga Shanghai’s major benchmark
The milestone drive unit was produced at Gigafactory Shanghai, which produces the Model Y and the Model 3. In a release, Tesla China noted that its three-in-one integrated electric drive system combines the motor, gearbox, and inverter into a single compact assembly. This forms a powerful “heart” for the company’s electric cars.
Tesla China also noted that its drive units’ integrated design improves energy conversion efficiency while reducing overall weight and complexity, benefits that translate into stronger performance, improved handling, and longer service life for its vehicles.
The new milestone builds on earlier achievements at the same site. In July 2024, Tesla announced that its 10 millionth electric drive system globally had rolled off the line at the Shanghai plant, making it the first self-produced Tesla component to reach that volume.
More recently, the factory also produced its 4 millionth China-made vehicle, a Model Y L. The factory has also continued hitting global production milestones, rolling out Tesla’s 9 millionth EV worldwide late last year, with the landmark vehicle being a Tesla Model Y.
Tesla China’s role
Construction of Giga Shanghai began in January 2019, with production starting by the end of that year. This made it the first wholly foreign-owned automotive manufacturing project in China. The facility began delivering Model 3 vehicles locally in early 2020 and added Model Y production in 2021. The plant is now capable of producing about 1 million vehicles annually.
Throughout 2025, Giga Shanghai delivered 851,732 vehicles, representing a 7.08% year-on-year decline, according to data compiled by CNEVPost. Even so, recent months showed renewed momentum.
In December alone, Tesla China recorded wholesale sales of 97,171 vehicles, including domestic deliveries and exports, making it the company’s second-best monthly total on record, per data from the China Passenger Car Association. Retail sales during December reached roughly 94,000 units, up about 13% year over year.
Tesla stock (NASDAQ: TSLA) just got a price target boost from its biggest bear, Gordon Johnson of GLJ Research, who raised his expected trading level to one that is 95 percent lower than its current trading level.
Johnson pushed his Tesla price target from $19.05 to $25.28 on Wednesday, while maintaining the ‘Sell’ rating that has been present on the stock for a long time. GLJ has largely been recognized as the biggest skeptic of Elon Musk’s company, being particularly critical of the automotive side of things.
Tesla has routinely been called out by Johnson for negative delivery growth, what he calls “weakening demand,” and price cuts that have occurred in past years, all pointing to them as desperate measures to sell its cars.
Johnson has also said that Tesla is extremely overvalued and is too reliant on regulatory credits for profitability. Other analysts on the bullish side recognize Tesla as a company that is bigger than just its automotive side.
Many believe it is a leader in autonomous driving, like Dan Ives of Wedbush, who believes Tesla will have a widely successful 2026, especially if it can come through on its targets and schedules for Robotaxi and Cybercab.
Justifying the price target this week, Johnson said that the revised valuation is based on “reality rather than narrative.” Tesla has been noted by other analysts and financial experts as a stock that trades on narrative, something Johnson obviously disagrees with.
Dan Nathan, a notorious skeptic of the stock, turned bullish late last year, recognizing the company’s shares trade on “technicals and sentiment.” He said, “From a trading perspective, it looks very interesting.”
Tesla bear turns bullish for two reasons as stock continues boost
Johnson has remained very consistent with this sentiment regarding Tesla and his beliefs regarding its true valuation, and has never shied away from putting his true thoughts out there.
Tesla shares closed at $431.40 today, about 95 percent above where Johnson’s new price target lies.
Judge clears path for Elon Musk’s OpenAI lawsuit to go before a jury
Tesla Giga Shanghai celebrates 5 million electric drive unit milestone
