News
Teslas and other EVs could enter a golden decade with newly-introduced US bill
Teslas and other electric cars may very well enter a golden age of sorts in the United States, if a newly-proposed bill makes it through. Dubbed as the Electric CARS Act, the bill aims to update the EV tax credit by extending it for ten years and removing the number of eligible vehicles per manufacturer. The bill also seeks to support the buildout of more electric car charging infrastructure.
A federal tax credit of up to $7,500 is currently available for customers who purchase an electric vehicle. However, the current system phases out this credit after an automaker sells its first 200,000 electric cars. Tesla and General Motors have both passed this threshold, which means buyers of both companies’ electric vehicles no longer receive their $7,500 tax credit. With this system in place, the United States practically makes incentives for car buyers to purchase imported EVs instead of those from local automakers like GM.
Tesla, for its part, has been pushing its electric vehicles without the $7,500 tax credit since the end of 2018 (reduced credits were implemented over 2019), when the company passed its 200,000-vehicle threshold. Fortunately, Tesla’s vehicles like the Model 3 and Model Y have stood well on their own merits, garnering critical and consumer support even without tax credits. If the Electric CARS Act passes, companies like Tesla could make an even stronger push into the automotive sector.
The Electric CARS Act aims to improve the federal tax credit through the following means:
- The elimination of the cap for EV makers. The bill would allow consumers access to the tax credit for the next ten years, regardless of the manufacturer they buy their EV from. Under these terms, even Tesla and GM electric car buyers would be able to get their tax credits once more.
- A 5-year use period. The bill would allow buyers to use their respective tax credits over a 5-year period, meaning that EV customers could apply the credit either at the point of purchase or later on. Such a system would make the tax credit more applicable to buyers without large tax liabilities.
- Charging infrastructure support. The bill would provide a 10-year extension of tax credits for alternative fuel vehicles and charging infrastructure. This incentivizes the buildout of EV charging systems like Tesla’s Supercharger Network and other rapid charging services like Electrify America.
The Electric CARS Act is sponsored by Jeff Merkley (D-OR) and Rep. Peter Welch (D-VT), both of whom highlighted the importance of the electric vehicle sector in the United States. In a statement to Channel 21 News, Merkley stated that the bill is apt considering the ongoing climate chaos. He also highlighted the importance of supporting EVs made by American workers in American factories.
“As climate chaos continues to ramp up with record-setting winter storms, violent hurricanes, and catastrophic wildfires, it is imperative that we transition away from gasoline-powered vehicles, which are fanning the flames of the crisis. Consumers are already looking for electric cars, and this bill will help drive adoption faster—and make sure more of those cars are made by American workers in American factories,” Merkley said.
Welch, for his part, explained that supporting electric cars would be a common-sense win for consumers, especially considering that EVs are practical to own.
“We need to quickly and aggressively invest in electric vehicles to combat the global climate emergency that threatens all of our local communities. Owning an electric vehicle can be cheaper and offers significant public health and environmental benefits, but for many Americans, they are unaffordable at the dealership. This bill makes the next generation of electric vehicles accessible to more people by allowing them to receive the electric vehicle tax credit right away. Encouraging electric vehicle adoption is a common-sense win for consumers, the environment, and American workers,” Welch noted.
Led by Tesla and its S3XY line, electric vehicles have disrupted the automotive industry, even without the presence of the $7,500 tax credit. With the Electric CARS Act in effect, companies like Tesla could reach an even bigger consumer market, bringing EVs further into mainstream buyers. Ultimately, the newly-proposed bill has the potential to usher in a golden age of electric cars in the United States. After all, if Tesla could emerge as a competitive automaker even without the country’s primary EV incentive, one could only imagine the heights the company could reach with less handicaps.
The text of the Electric CARS Act could be viewed below.
21.02.23 Electric Cars 2021 by Simon Alvarez on Scribd
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Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
