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GM refuses Tesla’s tax credit strategy, will adopt dealer-based ‘incentives’ instead

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General Motors (GM) is now the second vehicle manufacturer to sell 200,000 electric cars, triggering a phaseout period for the $7,500 federal tax credit for electric vehicle buyers. To address the tax credit’s phaseout, GM has decided to favor new, non-specified “incentives” to keep its electric vehicles competitive.

“It is easier to react to the market by working with dealers and your marketing team than it is to change sticker prices,” GM spokesman Jim Cain commented on the issue, also noting that GM is “sensitive to affordability” in the electric car market.

GM’s reaction to the phaseout period of the $7,500 stands in stark contrast to that of Tesla. When the electric car maker reached the 200,000 threshold last July, the company quickly made its future buyers aware of the impact the federal tax credit phase out would have on their vehicle prices. The prices of its vehicles were promptly adjusted to buffer some of the increase brought about by the reduced federal tax credit, which was halved to $3,750. As could be seen in GM’s recent statement, it appears that the experienced American carmaker is not prepared to show this type of flexibility just yet. 

Under the existing tax credit system for electric vehicles, buyers must wait until their annual taxes are complete before receiving the incentive. A new federal bill, dubbed the Electric CARS Act of 2018, was proposed last year to both extend the full $7,500 credit until 2028 regardless of the number of vehicles sold.

Under the proposed bill, electric car buyers would receive an immediate discount off of the car’s sticker price at the time of purchase. The bill is currently still being considered by the Ways and Means Committee. In California, a $2,500 local subsidy has backing from lawmakers to increase its amount to $4,500, a move meant to buffer the impact of a reduced federal credit.

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Tesla exhibits its electric cars and energy products at the 2018 LA Auto Show. [Credit: Christian Prenzler/Teslarati]

Tesla’s introduction of the $35,000 Model 3 Standard Range has ushered in a new consumer market for the California-based company focused on affordability, as intended. Absorption of external costs looked to be a move aimed at keeping customers happy while delivery delays and manufacturing setbacks hindered buyers’ ability to take advantage of the tax credit.

Prior to the Model 3 Standard Range release, large auto manufacturers like GM produced the only affordable electric vehicle options. Tesla’s competitive pricing angle makes GM’s “incentive” strategy interesting, especially now that the hybrid Chevy Volt has ceased production following a 23% reduction in sales last year. GM is also ramping up production and sales efforts for the Chevy Bolt and has vowed to launch another 20 electric car models by 2023.

Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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Tesla Full Self-Driving shows stunning maneuver in Europe to silence skeptics

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

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Credit: Tesla

Tesla Full Self-Driving, fresh on the heels of its approval for operation on European roads for the first time, showed off a stunning maneuver that will certainly silence any skeptics on the continent.

Fresh off its approval in the Netherlands, Full Self-Driving is working toward a significant expansion into more parts of Europe.

In a striking demonstration of autonomous driving prowess, Tesla’s Full Self-Driving (FSD) system recently showcased its capabilities on the narrow rural roads of the Netherlands. Captured in two in-car videos, the system encountered scenarios that would challenge even the most experienced human drivers.

In the first clip, a wide tractor occupied more than half the lane on a tight two-way road. Rather than braking abruptly or forcing a collision risk, FSD smoothly edged the vehicle onto the adjacent bike path—using the extra space with precision—before seamlessly returning to the lane once clear.

The second clip was equally demanding: while overtaking a group of cyclists, an oncoming car approached at speed.

FSD maintained a safe, minimal buffer to the cyclists while timing the pass perfectly, avoiding any swerve or hesitation that could unsettle passengers or other road users.

This maneuver highlights FSD’s advanced spatial reasoning and predictive planning. On roads often under three meters wide, with no room for error, the system calculated available clearance in real time, incorporated shoulder and path geometry, and executed a controlled deviation without compromising safety.

It treated the bike path as a legitimate extension of navigable space, something many drivers might hesitate to do, while respecting Dutch road norms and cyclist priority.

Such feats align closely with a growing library of impressive FSD maneuvers documented on camera worldwide.

In urban Amsterdam, for instance, FSD has navigated the world’s densest cyclist environments, weaving through hundreds of unpredictable bike movements on canal-side streets with tram tracks and pedestrians.

One uncut drive showed it yielding smoothly at crossings, overtaking where needed, and even handling a near-perfect auto-park in a tight residential spot, demonstrating the same low-speed precision seen in the rural clips.

Teslas using FSD have tackled turbo roundabouts in the Netherlands, complex multi-lane circles notorious for geometry challenges, merging confidently while yielding to traffic. Similar clips depict smooth handling of construction zones, emergency vehicle pull-overs, and gated parking barriers, where the car stops precisely, waits for clearance, and proceeds without driver input.

Collectively, these examples illustrate FSD’s evolution toward handling the unpredictable.

The rural Netherlands maneuvers aren’t isolated. Instead, they reflect a pattern of spatial awareness, cyclist deference, and traffic anticipation seen from city streets to highways.

As FSD continues refining through real-world data, videos like this one are certainly building a compelling case for its readiness on Europe’s varied roads.

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Tesla utilizes its ‘Rave Cave’ for new awesome safety feature

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

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Credit: Tesla | X

Tesla is utilizing its ‘Rave Cave’ for an awesome new safety feature that will arrive with the upcoming Spring Update for 2026.

Part of the massive interior overhaul of both the Model 3 “Highland” and Model Y “Juniper” was the addition of interior accent lighting to help bring out the mood of the vehicle, increase the customization of the interior, and to create a unique listening experience.

Tesla added a Sync Lights feature that will strobe the accent strips with the beat of the music.

It is one of the most unique and one of the coolest non-functional features of a Tesla, as it does not improve the driving of the vehicle, but makes it a cool and personal addition to the interior.

However, Tesla is going to take it one step further, as the Rave Cave lights will now be used for blind spot recognition. This feature will be added as the Spring 2026 Update starts to roll out.

Tesla writes:

“Accent lights now turn red when an object is in your blind spot and your turn signal is engaged, or when an approaching object is detected while parked.”

This neat new safety feature will now increase the likelihood of a driver, who is operating their Tesla manually, of seeing the blind spot warnings that are currently available on the A pillar and on the center touchscreen.

These new alerts will now warn drivers of cross traffic as they back out of a parking space with little to no visibility of what is coming. It is a great new addition that will only increase the safety of the vehicles, while also utilizing something that is already installed in these specific Model 3 and Model Y units.

The Model 3 and Model Y were the central focus of the Spring 2026 Update, especially considering the fact that the Model S and Model X are basically gone, with only a few hundred units left. Additionally, Tesla included new Immersive Sound and Car Visualization for the Model 3 and Model Y specifically in this new update.

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Tesla parked 50+ Cybercabs outside its Texas Factory with some crash tested

Dozens of Tesla Cybercabs have been spotted at Giga Texas crash testing facility ahead of launch.

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Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)
Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Drone footage captured by longtime Giga Texas observer Joe Tegtmeyer shows over 50 units of Tesla Cybercab at the Austin factory campus, including several units clustered by Tesla’s on-site crash testing facility.

The outbound lot at Gigafactory Texas sits just outside the factory exit and serves as the primary staging area where finished vehicles are held before being loaded onto transport carriers or dispatched for validation testing. On any given day, the lot holds a mix of Model Y and Cybertruck units alongside the growing Tesla Cybercab fleet, as can be seen in the drone footage captured by Joe Tegtmeyer.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas on April 13, 2026 [Credit: Joe Tegtmeyer)

Roughly 50 Cybercab units are visible across the campus, parked in tight organized rows. Most of the units visible still carry steering wheels and pedals, temporary additions Tesla included to satisfy current safety regulations while the vehicles accumulate real-world data ahead of full regulatory approval for a steering wheel-free design.

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab fleet spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla operates dedicated Crash Labs at both its Giga Texas and Fremont facilities that are purpose-built for controlled structural crash tests. Historically, automakers begin intensive crash testing roughly one to two months before volume production kicks off. The Cybertruck followed almost exactly that pattern. The Cybercab appears to be on the same track facility that we first saw back in October 2025.

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

Tesla Cybercab crash test units spotted at Gigafactory Texas [Credit: Joe Tegtmeyer)

The first production Cybercab rolled off the Giga Texas line on February 17, 2026. Volume production is now targeted for April. Musk previously wrote on X that “the early production rate will be agonizingly slow, but eventually end up being insanely fast,” and separately stated Tesla is targeting at least 2 million Cybercab units per year. Commercial robotaxi service in Austin is targeted for late 2026.

 

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