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Tesla one of few automakers retaining U.S. EV incentives after rule change
Tesla is one of just a few automakers who will offer models that qualify for federal EV incentives in the U.S. following a new rule implementation.
EV incentives in the United States have been a hot topic in Congress since the Inflation Reduction Act was introduced to the House floor last year. Following the incentive’s introduction, there has been a mixed response, both in the U.S. and globally, as foreign automakers were forced to shift production to North America to qualify. Now, new rules are set to cut eligibility even further.
The upcoming rule’s implementation was first reported by Reuters, pointing out that numerous automakers would be losing eligibility on top models. This includes Rivian’s R1S and R1T, Volvo’s S60 PHEV, BMW’s X5 xDrive45e, Volkswagen’s ID.4 and Audi’s Q5 TFSI eQuattro PHEV, Nissan’s Leaf hatchback, and even the freshly released Genesis GV70 Electrified. The new rules will take effect tomorrow, April 18th.
Other automakers, including Tesla, are retaining the majority of the incentives that they qualified for in Q1 of this year. However, even the incredibly popular Tesla Model 3 Standard Range, the automaker’s cheapest model, will no longer qualify for the full incentive.
According to the Federal government, 90% of EVs and electrified vehicles that qualified for incentives earlier this year will qualify for at least half of the incentives now. Though it should be noted that this is after roughly 70% of EVs and electrified vehicles lost incentives due to North American assembly requirements (implemented in August) and pricing limits (implemented in January).
The new rules removing eligibility from countless vehicles, including those assembled in North America, are “battery sourcing requirements.” Under the guidelines, automakers must meet at least one of two requirements on top of the requirement to assemble the vehicle in North America and keep the vehicle’s price below a segment-specific number.
First, 40% of the value of “critical minerals” within the vehicle’s battery must be sourced from the United States or a country with which it has signed a free trade agreement. By meeting this requirement, automakers are eligible for half of the full EV incentive, $3,750. Second, 50% of the value of battery components must be produced or assembled in North America. By meeting this requirement, automakers can also qualify for the $3,750 incentive, but only by meeting both can an automaker qualify for the full $7,500 incentive.
For those currently looking to buy an EV that qualifies for the tax incentives, the IRS provides a complete list of models and automakers, though this site has been slow to update since its initial publishing.
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Tesla makes latest announcement on Model S and Model X
The announcement follows Tesla CEO Elon Musk’s statement on the Q4 2025 earnings call in late January. Musk described the decision as an “honorable discharge” for the two vehicles, noting that production would wind down in Q2 2026.
Tesla has officially begun winding down production of its flagship Model S and Model X in the United States, notifying owners via email that the long-running models will soon reach the end of the line.
The email, sent to U.S. customers on March 27, opens with gratitude. “Model S and Model X marked the beginning of the world’s transition to electric transportation,” it reads. “These vehicles also made it possible for Tesla to develop the technology that would move our world toward autonomy.”
It then delivers the news directly: “As we make way for this autonomous future, Model S and Model X production will be ending. If you’d like to bring home a new Model S or Model X, order yours soon from our limited inventory.”
Tesla just sent out a new email thanking Model S/X owners.
“These vehicles made it possible for Tesla to develop the technology that would move our world toward autonomy. As we make way for this autonomous future, Model S and Model X production will be ending. If you’d like to… pic.twitter.com/IeUhZ3iDnX
— Sawyer Merritt (@SawyerMerritt) March 27, 2026
The message closes with a simple thank-you: “Thank you for being part of our journey.”
The announcement follows Tesla CEO Elon Musk’s statement on the Q4 2025 earnings call in late January. Musk described the decision as an “honorable discharge” for the two vehicles, noting that production would wind down in Q2 2026.
The move frees factory floor space at Fremont, California, for next-generation manufacturing, including Optimus humanoid robots and the upcoming Robotaxi platform.
Introduced in 2012 and 2015, respectively, the Model S and Model X were Tesla’s original halo cars. They proved EVs could outperform gasoline luxury vehicles in acceleration, range, and tech features while pioneering over-the-air updates and early autonomy hardware.
Although they never matched the volume of the Model 3 and Model Y, their engineering breakthroughs laid the foundation for the company’s current lineup and full self-driving development.
Early adopters highlighted how the cars convinced them to invest in Tesla stock and the EV movement. Some U.S. owners who had not yet received the note voiced mild frustration, and international customers confirmed the outreach remains U.S.-only for now.
Tesla has not detailed an exact final production date beyond the Q2 2026 target or confirmed immediate replacements. Speculation continues about a possible Cybertruck-derived SUV, but the company’s public focus has shifted squarely to autonomy and robotics.
For buyers still interested in the S or X, the window is closing. Inventory is described as limited, and Tesla’s Korean division has already set a March 31 cutoff for new orders in that market. The email serves as both a farewell and final sales push, an elegant close to a chapter that helped define modern electric driving.
Elon Musk
Tesla drives drunk owner while he naps, Police still arrest him on DUI
A Vacaville man let his Tesla drive while he napped, but police had other ideas.
A Northern California man found a creative solution to drunk driving this week by letting his Tesla drive him around while he took a booze snooze. Police in Vacaville arrested a man on a DUI charge after he was found, what appears to be, completely passed out behind the wheel of a Tesla Model Y, which was safely self-navigating the owner through busy streets. The man’s passenger seat told the rest of the story, with a four-pack of Sutter Home wine bottles and a box of Round Table pizza clearly visible.
According to the Vacaville Police Department, as posted through their Facebook page, a concerned community member spotted the very relaxed driver, stayed on the line with dispatch, and guided officers to the intersection of Elmira Road and Shasta Drive where they stopped the vehicle. Alcohol and marijuana were confirmed. No medical emergency, and what appears to be just an extremely committed drunken nap.
- Tesla drives drunk owner, Police arrest on DUI [Credit: Vacaville Police via Facebook]
- Tesla drunk driver passenger seat , Police arrest on DUI [Credit: Vacaville Police via Facebook]
The Vacaville Police noted that California permits drivers to use assistive driving features like Tesla’s FSD, but the law still requires them to be “conscious, alert, and not under the influence while operating them.” The post drew some humorous reactions in the comments section, with one commenter piping in, “That time when his vehicle had more situational awareness than he did.” Another commenter chimed in, “Sutter all the way home….”
Tesla Full Self-Driving v14.2.1 texting and driving: we tested it
The incident lands in an interesting moment for Tesla. Elon Musk caused his own stir in December 2025 when he responded to a user question about whether FSD v14.2.1 allowed texting behind the wheel with a simple “Depending on context of surrounding traffic, yes.” He had earlier told investors that drivers turning off autopilot to check texts while steering with their knees was “significantly less safe” than simply letting FSD run, which he called “kind of the killer app.” Neither statement included anything about Sutter Home wine being part of the equation.
News
Tesla Semi is already winning over truck drivers
The consensus among participants is clear: the Semi feels quieter, quicker, and far less physically demanding than diesel rigs while delivering three times the power and dramatically lower operating costs.
Tesla’s all-electric Semi is proving more than just a flashy concept as it is winning converts among the professionals who know trucks best.
As fleets roll out Pilot Programs for Tesla across North America, drivers are raving about the Class 8 electric truck’s unique features, including a centered driver’s seat, massive touchscreen visibility, instant torque, and absence of gear-shifting fatigue.
These features are transforming long days behind the wheel into noticeably easier, less stressful shifts.
Tesla Semi pricing revealed after company uncovers trim levels
In a recent Wall Street Journal profile of early pilots, Dakota Shearer of IMC Logistics described backing out of a tight spot he had mistakenly entered:
“I backed right out of there, no problem. It’s like I’d never done it in the first place. That right there showed me that the technology the Tesla has makes a big difference.”
His colleague Angel Rodriguez of Hight Logistics, who switched from a 13-speed diesel, agreed:
“It’s just easier on your body. It’s less stressful because you’re not really having to engage the clutch and the stick shift.”
Veteran drivers in other tests echo the same enthusiasm. Tom Sterba, a Senior Driver at Saia, spent days testing the Semi and came away impressed with the navigation and overall feel:
“The navigation systems in these trucks are just unbelievable. That’s what I love about it.”
Sterba summed up the experience with a line that has since gone viral among trucking circles:
“I hope I retire in this truck.”
Pilot programs with ArcBest, thyssenkrupp Supply Chain Services, and Mone Transport delivered similar feedback. Drivers consistently praised the center-seat layout for eliminating blind spots, the smooth acceleration, and the overall comfort and safety.
Real-world data backed the hype, as ArcBest logged thousands of miles at efficient consumption rates, even over the challenging routes, like Donner Pass, while other fleets beat Tesla’s own efficiency targets.
The consensus among participants is clear: the Semi feels quieter, quicker, and far less physically demanding than diesel rigs while delivering three times the power and dramatically lower operating costs.
The latest chapter in the Semi’s story arrived just days ago on Jay Leno’s Garage, as Leno became the first outsider to drive the updated long-range production model, joined by Tesla Chief Designer Franz von Holzhausen, and Semi Program Director Dan Priestley.
Tesla reveals various improvements to the Semi in new piece with Jay Leno
The episode revealed major upgrades heading to volume production this year: the truck sheds roughly 1,000 pounds, adopts a 48-volt architecture, switches to fully electric steering with Cybertruck-derived actuators, and uses 4680 battery cells engineered for an over-one-million-mile lifespan.
Aerodynamics improved, enabling a 500-mile range on the long-haul version, and about 325 miles on the shorter-wheelbase standard-range model. Megachargers can now deliver up to 1.2 megawatts, adding roughly 300 miles in about 30 minutes.
Leno hauled heavy loads and marveled at the turning radius and effortless power delivery. “I don’t feel like I’m pulling anything,” he said during the episode.
With hundreds of Semis already accumulating over 13.5 million fleet miles and high uptime, the future of heavy-duty trucking looks electric. Drivers are giving raving reviews, and they’re ready to climb aboard the electric trucking industry for good.
![Tesla drives drunk owner, Police arrest on DUI [Credit: Vacaville Police via Facebook]](https://www.teslarati.com/wp-content/uploads/2026/03/tesla-fsd-drunk-driver-dui-arrest-e1774678014371-300x259.jpg)
