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Tesla incentives: Extra $4,500 bonus tax credit for union-made EVs scrapped

(Credit: Tesla)

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US Senator Joe Manchin noted during an interview at the Capitol on Tuesday that the proposed and controversial $4,500 bonus tax credit for electric vehicles made with domestic union labor has effectively been scrapped. Discussions are still ongoing if the 200,000-vehicle cap for the United States’ EV tax credit should be lifted.

While widely promoted by its proponents, the bonus $4,500 EV tax credit for union-made electric cars faced a lot of criticism on various fronts. Apart from politicians like Manchin, the proposal was also sternly criticized by carmakers like Tesla, Toyota, and Honda, which do not utilize union labor.

In his recent comments, Manchin noted that the controversial proposal is now dead in the water. “It’s gone,” he said.

With the extra $4,500 bonus tax credit, the Biden administration’s Build Back Better initiative would have increased consumer tax credits for the purchase of electric cars to as much as $12,500 — but only if the cars they bought were made by union labor. Without the union-friendly credit, what is practically left is a proposal to extend the current $7,500 EV tax credit, as well as a $500 bonus credit for cars whose batteries were produced in the United States.

Joe Britton, the head of the Zero Emission Transportation Association, a trade group that represents non-union companies like Tesla and Rivian, described the recent developments in the country’s EV tax credit discussions. “At this point, what we are left with is the base credit,” he said.

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In recent weeks, Manchin has expressed his displeasure at the state of the United States’ EV tax credit structure today. Due to the system’s 200,000-vehicle cap, customers who purchase cars from American companies like Tesla and General Motors no longer receive a $7,500 tax credit. EVs from foreign automakers, however, are still offered the incentive.

“Any foreign vehicle that is an electric vehicle is going to be able to claim a $7,500 credit (under existing law). I don’t think that’s our intent,” the Senator said.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Musk sets a date for Starship trip to Mars with Optimus on board

Optimus could be the first humanoid to make it to Mars, and Musk has set a date for when he thinks it’ll happen.

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Credit: SpaceX

Elon Musk has shared when he expects to take Starship to Mars for its first uncrewed mission, and he also says Tesla’s Optimus humanoid robot will be on board for the flight.

On Friday, Musk wrote on X that SpaceX’s reusable Starship rocket will take Optimus to Mars at the end of 2026, with human landings expected to commence a few years later.

“Starship departs for Mars at the end of next year, carrying Optimus,” Musk said. “If those landings go well, then human landings may start as soon as 2029, although 2031 is more likely.”

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Last year, the SpaceX and Tesla head also expectations that SpaceX would be able to begin uncrewed launches in 2016, with early launches including both Optimus and a Cybertruck unit.

Musk also followed up the announcement with a post on X on Saturday morning, noting that he expects SpaceX to launch more than 90 percent of Earth’s payload mass to orbit this year. Meanwhile, he says China will make up just around 5 percent, while the rest of the world, including other parts of America, would also make up just 5 percent.

He also predicted that that number would go up even further to nearly 100 percent, once SpaceX’s reusable rocket is being launched more frequently.

“When Starship is launching at high rate, SpaceX will probably carry >99 percent of Earth’s payload mass to orbit. This is necessary to make Mars a self-sustaining civilization,” Musk added.

READ MORE ABOUT SPACEX’S STARSHIP: Texas awards SpaceX $17.3M grant to expand Bastrop tech hub

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To be sure, Musk has been known to make ambitious claims about when his companies’ products would achieve certain milestones. For example, Musk predicted in 2018 that SpaceX could launch a rocket to Mars with humans aboard by 2024, though SpaceX only began testing the company’s reusable Starship in 2023.

Still, the company has been routinely testing Starship since then, and with increasing frequency, and in October, SpaceX performed the first catch of the Starship’s Super Heavy booster after liftoff to demonstrate the concept that a reusable rocket could be possible. In a launch earlier this month, SpaceX again successfully caught the Super Heavy Booster, though it lost the upper stage to a “rapid unscheduled disassembly,” effectively meaning that it had exploded in air and showered surrounding areas with rocket parts.

The explosion was the second consecutive launch in which debris from Starship reigned down, highlighting the continued importance of testing as SpaceX aims to make the rocket a viable product for reusable space travel.

On Friday, SpaceX also launched its Starliner spacecraft to the International Space Station (ISS) to rescue astronauts that have been stuck on the orbital craft, after a Boeing launch was originally intended to bring them back to Earth. While SpaceX attempted to rescue the two astronauts in September, issues with the Starliner craft’s thrusters discovered upon arrival made NASA hold off on approving the return mission.

SpaceX completes a new first with recent Falcon 9 launch

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U.S. AG Pam Bondi: Tesla Molotov attack suspect facing up to 20 years in prison

The U.S. Attorney General confirmed that a Tesla attacker, who threw Molotov cocktails at a store, is now facing up to 20 years in prison.

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The White House, Public domain, via Wikimedia Commons
President Donald J. Trump purchases a Tesla on the South Lawn, Tuesday, March 11, 2025. (Official White House Photo by Molly Riley)

It appears that an anti-Tesla activist who is suspected of throwing Molotov cocktails at one of the electric vehicle maker’s stores is now looking at a potentially long prison sentence. 

This is, at least, as per United States Attorney General Pam Bondi, who recently shared her insights in a FOX News segment.

Tesla Attacks and Trump Warning

Tesla locations and vehicles have been subjected to numerous attacks as of late, from stores being shot up to vehicles being vandalized and set on fire in suspected arson incidents. In one case, a Tesla store in Salem, Oregon, was attacked with Molotov cocktails.

President Donald Trump has issued a stern warning to people attacking Teslas, stating that he considers such actions as domestic terrorism. While addressing the issue, Trump warned that anyone caught deliberately harming Tesla will be going through “hell.”

Attorney General’s Update

During a recent FOX News segment, US Attorney General Pam Bondi reiterated that anyone targeting others over political beliefs would be caught and punished accordingly. She highlighted that investigations are underway to find out who is behind the violent actions, and she also confirmed that a Tesla attacker, who threw Molotov cocktails at a store, is now facing up to 20 years in prison.

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“If you targeted someone, if you went after someone because of their political affiliation, we will be investigating you. We will be looking at you, because that’s the weaponization, and it has to stop. For instance, look what they’re continuing to do to Elon Musk. They are targeting Tesla dealerships, the stations where you charge a Tesla. They’re vandalizing cars. I have already directed an investigation be opened to see how this is being funded. Who is behind this? 

“We have people we’re locking up on that. We have someone in jail right now from one of the dealerships. They threw a Molotov cocktail through a dealership. They’re looking at up to 20 years in prison. So, if you’re going to touch a Tesla, go to a dealership, or do anything, you better watch out, because we’re coming after you. And if you’re funding this, we’re coming after you. We’re going to find out who you are,” Bondi stated.

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SpaceX readies to rescue astronauts from International Space Station

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Credit: SpaceX

SpaceX is readying to launch the Crew-10 mission this evening, which will bring home U.S. astronauts Butch Wilmore and Suni Williams, who have been stuck on the International Space Station for nine months.

SpaceX is working alongside NASA to bring the two astronauts home, and all systems and weather conditions are looking ideal to launch the mission this evening from the Kennedy Space Center in Florida.

Boeing was originally tasked with the rescue mission.

The company sent a Starliner aircraft to the ISS in late September in an effort to bring Williams and Wilmore home. However, malfunctioning thrusters and other issues on the Starliner aircraft prevented NASA from giving the green light to the astronauts to board and come home.

SpaceX was then tasked with bringing the two home, and it appears they will be on their way shortly.

The launch was intended to occur on Wednesday, but a last-minute problem with the rocket’s ground systems forced SpaceX and NASA to delay until at least Friday. Things are looking more ideal for a launch this evening.

The launch is targeted for 7:03 p.m. ET, but another backup opportunity is available tomorrow, March 15, at 6:41 p.m.

SpaceX writes about the Dragon spacecraft that will be used for the mission:

“The Dragon spacecraft supporting this mission previously flew NASA’s Crew-3Crew-5, and Crew-7 missions to and from the space station. This will be the second flight for the first stage booster supporting this mission, which previously launched the SES 03b mPOWER-e mission. Following stage separation, Falcon 9’s first stage will land on Landing Zone 1 (LZ-1) at Cape Canaveral Space Force Station.”

The mission will not only aim to bring the two astronauts who have been stranded for nine months home, but it will also conduct new research to prepare for human exploration beyond low-Earth orbit.

If Crew-10 launches at the planned time this evening, it will dock to the ISS at 11:30 p.m. ET on Saturday night.

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