News
Tesla set to benefit as Congress considers EV tax credit extension
Tesla, General Motors and other automakers are pushing Washington for tax extenders that would extend the federal incentive for electric vehicle purchases.
Talks in the U.S. Congress over the weekend focused on the reinstatement of tax extenders that will not only benefit electric car manufacturers but those involved in biofuel and short-line railroad industries. If the Growing Renewable Energy and Efficiency Now (GREEN) Act gets the thumbs up, the cap for EV sales for manufacturers will be raised to 600,000 from 200,000 units and also reduce the tax credit from $7,500 to $7,000.
There will also be tax credits for the purchase of used electric vehicles with certain limitations such as the vehicle was used and registered in the U.S., will be sold for less than $25,000, tax credit can’t exceed 30 percent of the selling price, among others.
“Thanks to bipartisan, broad-based support, we believe the EV tax-credit extension is very well-positioned for enactment. “A large and diverse set of stakeholders — including environmentalists, public health groups, automakers and utilities — are urging Congress to act given its consequences for American global competitiveness, clean air and climate change,” said Mike Carr of the EV Drive Coalition that consists of Tesla, GM, and other electric vehicles and equipment giants.
The current tax credit is phased out when a manufacturer such as Tesla hits 200,000 vehicle sales, a cap already reached by Tesla and GM in Q3 2018 and Q4 2018, respectively. This means that those who will buy Tesla electric vehicles starting January 1, 2020 are no longer eligible for tax credits. Under the current rules, Tesla vehicles delivered on or before Dec. 31, 2018 enjoyed $7,500 federal tax credit while those delivered between Jan. 1 to June 30 this year received incentives reduced by half. Those who got their Teslas July 1 through the end of this year only received $1,875 tax credits.
Originally, the tax credit for electric vehicles was enacted by Congress in 2008 to give the EV market a boost. The tax credit is a big factor in the purchase decision of car buyers when considering electric vehicles. Aside from benefiting consumers directly by making electric vehicles — such as the upcoming Tesla Cybertruck — more affordable, a proper reform levels the playing field for vehicle manufacturers while giving consumers more options to choose from.
The GREEN Act discussion draft was initiated in November by House Ways and Means Subcommittee on Select Revenue Measures Chairman Mike Thompson and Committee Democrats.
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“This bill will build on existing tax incentives that promote renewable energy and increase efficiency and create new models for technology and activity to reduce our carbon footprint. I’ve long said that if we don’t address climate change, nothing else matters as we won’t have a planet to pass on to our next generation. The GREEN Act is a critical step forward in our fight to tackle climate change head on,” Chairman Thompson said.
Of course, the lobbying of Tesla and other EV manufacturers does not go unopposed. In June, a trade association representing fuel and petrochemical manufacturers and refiners met with members of Congress to insist on how tax breaks may cost the government as much as $15.7 billion over 10 years. Meanwhile, proponents and supporters of the GREEN Act that would provide tax extenders emphasized the benefits of more electric vehicles on the road in terms of sustainability, how the industry creates American jobs, and how it helps the U.S. ensure energy independence and security.
As 2019 draws to a close, Tesla adjusted the price of the Model 3 and also sent out an email to encourage consumers to place their orders to still be eligible for the federal tax credit.
Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.
Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.
Powerwall Lease is now available with Tesla Electric in Texas
Whole-home backup for $35/month, with a low fixed electricity rate
– Two Powerwalls, $0 installation
– Storm Watch outage protection
– One app to manage it all pic.twitter.com/oTzqc6K3aF— Tesla Energy (@teslaenergy) August 13, 2026
This credit lowers the effective cost to roughly $35 per month plus applicable tax.
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Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.
The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.
Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.
The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.
Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.
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Elon Musk continues to tease the unveiling event for the Tesla Roadster, a continuing trend that has grown into a bigger game of “When” for fans who have been waiting years for the car to finally enter production.
A video shared on X of the Joe Rogan Experience podcast that Musk appeared on last year, teasing the Roadster unveiling, was shared once again on the social media platform. The poster said the Roadster event will be “unforgettable.”
Musk agreed:
Yes
— Elon Musk (@elonmusk) August 12, 2026
The timing is interesting because just yesterday, Musk said that we will be getting flying cars, and for years, Tesla has hinted that it could develop a SpaceX cold gas thruster package that would help the car float or fly for a short period of time.
It would be reasonable to assume Tesla’s major delays with this unveiling event are likely caused by the company’s need to break the rules and push the envelope on nearly everything. Last July, Lars Moravy, Tesla’s VP of Vehicle Engineering, said:
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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind blowing. We showed Elon some cool demos last week of the tech we’ve been working on and he got a little excited.”
The latest updates that Tesla has given us are that the Roadster is in design development, and it did have several potential dates for an unveiling event this year, including April. It was then pushed to August.
However, there are no clues as to when Tesla will be ready, and fans are certainly getting frustrated with the delays.
For what it is worth, Franz von Holzhausen told Jay Leno this week that the event would be “very soon.”
We sure hope.
Lifestyle
Tesla’s driverless Cybercab just passed a big test with State Governor
Florida’s governor rode Tesla’s Cybercab at a closed test track and called the experience impressive.
Florida Governor Ron DeSantis rode in a Tesla Cybercab on a closed test track this week and came away impressed, posting on X that the vehicle “successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.” He called the ride “impressive.”
The stop was part of a broader event Monday at SunTrax, a 775 acre state owned proving ground in Auburndale that Florida built specifically to test autonomous and connected vehicles before they reach public roads. Standing next to a gold Cybercab, DeSantis described the car in plain terms: “You go in there and you just sit. You have a screen. There’s no steering wheel, no pedals. Clearly these things could be very beneficial.”
We took a ride on a robotaxi on the Suntrax course and it successfully navigated all hazards — a kid running into the street, a crash with police stopping traffic, a Model S cutting us off, etc.
Impressive! https://t.co/FVAkzFLz3r
— Ron DeSantis (@RonDeSantis) August 11, 2026
DeSantis paired the praise with a caveat that has followed autonomous vehicles since the category existed. “You don’t want to be in an autonomous vehicle and it drives you into a ditch. That would not be good,” he said, framing safety validation as the gate before wider deployment.
SunTrax, the 2.25 mile oval which the state calls the only high speed autonomous vehicle test track in the Southeast, can simulate rain, pedestrian crossings, hills and crowded urban conditions at highway speeds, letting companies push a car past what an early public rollout would risk. Tesla, Waymo and Beep all use the facility, and Florida’s regulatory approach, among the most permissive for autonomous vehicles in the country, doesn’t require a human operator inside a fully autonomous car.
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Tesla has reason to want the blessing of Florida and states beyond, as the Cybercab entered volume production at Gigafactory Texas this spring and has since self certified as SAE Level 4 under Texas law. Public road testing so far has kept a safety monitor in the passenger seat, and Florida is where Tesla has been expanding its existing Model Y based Robotaxi service instead, adding Miami in July and then Orlando and Tampa two weeks later. A closed track endorsement from a sitting governor doesn’t change any of that, but it does put Tesla’s newest hardware in front of a state that has already shown it will move fast on rules.
Tesla launches Powerwall Lease for affordable home backup
Elon Musk teases Tesla Roadster unveiling once again
