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Tesla supporters protest after IRA incentives shun popular BEVs, support hybrids
Tesla and electric vehicle supporters are responding negatively to the Inflation Reduction Act’s qualified cars for its EV incentive. Based on the list of vehicles that qualify for IRA’s $7,500 tax credit, popular battery-electric cars like some variants of the Tesla Model Y and the Ford Mustang Mach-E will not be getting any incentives from the IRA at all.
However, a number of gas-powered hybrids actually do. These include the Audi Q5E Quattro, a hybrid SUV that has an EPA rating of 61 MPGe and 23 miles of pure electric range; as well as the Jeep Wrangler 4XE, a 5-seat hybrid SUV that gets 20 MPGe and an all-electric range of 21 miles. In comparison, the Tesla Model Y Dual Motor AWD has 330 miles of all-electric range and 122 MPGe, while the Ford Mustang Mach-E California Route 1 with Extended Range battery has 312 miles of all-electric range and 98 MPGe, as per the EPA.

As highlighted by former Tesla Operations Analyst-turned YouTube host Farzad Mesbahi in a recent video, these discrepancies seem to be due to the fact that the IRA’s incentives are divided into two classifications: “SUVs/Trucks/Vans,” and “All Other.” Vehicles in the SUVs/Trucks/Vans category are eligible for the IRA’s tax credit if they are priced at $80,000 or below. Vehicles in the “All Other” category are maxed out at $55,000.
As per Tesla’s online configurator, the Model Y Dual Motor AWD currently starts at $65,990. The Mustang Mach-E California Route 1 with Extended Range battery, on the other hand, has a base MSRP of $63,575, as per Ford’s official website. Thus, the Model Y and the Mustang Mach-E, which also happen to be two of the most popular all-electric crossovers in the United States today, would not be getting any incentives from the IRA.
This is messed up
— Elon Musk (@elonmusk) January 1, 2023
Interestingly enough, the Model Y and Mach-E, while formally classified as “Small Sport Utility Vehicles” by the EPA, are simply not recognized as SUVs when it comes to the IRA. This is a notable discrepancy, of course, and it has the potential to incentivize the purchase of less efficient vehicles over superior options. If a customer ends up purchasing a hybrid Jeep that gets 20 MPGe over a Mustang Mach-E that gets 98 MPGe because of the IRA, after all, then the initiative pretty much fails at its core. Tesla CEO Elon Musk, for his part, has commented on the issue, noting that the situation is “messed up.”
Watch a video about the matter below.
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Tesla Cybercab tests are going on overdrive with production-ready units
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the vehicle being reported across social media this week.
Tesla is ramping its real-world tests of the Cybercab, with multiple sightings of the autonomous two-seater being reported across social media this week. Based on videos of the vehicle that have been shared online, it appears that Cybercab tests are underway across multiple states.
Recent Cybercab sightings
Reports of Cybercab tests have ramped this week, with a vehicle that looked like a production-ready prototype being spotted at Apple’s Visitor Center in California. The vehicle in this sighting was interesting as it was equipped with a steering wheel. The vehicle also featured some changes to the design of its brake lights.
The Cybercab was also filmed testing at the Fremont factory’s test track, which also seemed to involve a vehicle that looked production-ready. This also seemed to be the case for a Cybercab that was spotted in Austin, Texas, which happened to be undergoing real-world tests. Overall, these sightings suggest that Cybercab testing is fully underway, and the vehicle is really moving towards production.
Production design all but finalized?
Recently, a near-production-ready Cybercab was showcased at Tesla’s Santana Row showroom in San Jose. The vehicle was equipped with frameless windows, dual windshield wipers, powered butterfly door struts, an extended front splitter, an updated lightbar, new wheel covers, and a license plate bracket. Interior updates include redesigned dash/door panels, refined seats with center cupholders, updated carpet, and what appeared to be improved legroom.
There seems to be a pretty good chance that the Cybercab’s design has been all but finalized, at least considering Elon Musk’s comments at the 2025 Annual Shareholder Meeting. During the event, Musk confirmed that the vehicle will enter production around April 2026, and its production targets will be quite ambitious.
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Tesla gets a win in Sweden as union withdraws potentially “illegal” blockade
As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Swedish union Vision has withdrawn its sympathy blockade against Tesla’s planned service center and showroom in Kalmar. As per recent reports, the Vision union’s planned anti-Tesla action might have been illegal.
Vision’s decision to pull the blockade
Vision announced the blockade in early December, stating that it was targeting the administrative handling of Tesla’s facility permits in Kalmar municipality. The sympathy measure was expected to start Monday, but was formally withdrawn via documents sent to the Mediation Institute and Kalmar Municipality last week.
As noted in a Daggers Arbete report, plans for the strike were ultimately pulled after employer group SKR highlighted potential illegality under the Public Employment Act. Vision stressed its continued backing for the Swedish labor model, though Deputy negotiation manager Oskar Pettersson explained that the Vision union and IF Metall made the decision to cancel the planned strike together.
“We will not continue to challenge the regulations,” Petterson said. “The objection was of a technical nature. We made the assessment together with IF Metall that we were not in a position to challenge the legal assessment of whether we could take this particular action against Tesla. Therefore, we chose to revoke the notice itself.”
The SKR’s warning
Petterson also stated that SKR’s technical objection to the Vision union’s planned anti-Tesla strike framed the protest as an unauthorized act. “It was a legal assessment of the situation. Both for us and for IF Metall, it is important to be clear that we stand for the Swedish model. But we should not continue to challenge the regulations and risk getting judgments that lead nowhere in the application of the regulations,” he said.
Vision ultimately canceled its planned blockade against Tesla on December 9. With Vision’s withdrawal, few obstacles remain for Tesla’s long-planned Kalmar site. A foreign electrical firm completed work this fall, and Tesla’s Careers page currently lists a full-time service manager position based there, signaling an imminent opening.
News
Tesla Semi program Director teases major improvements
Tesla Semi Program Director Dan Priestly teased the major improvements to the all-electric Class 8 truck on Thursday night, following the company’s decision to overhaul the design earlier this year.
Priestley said he drove the Semi on Thursday, and the improvements appear to be welcomed by one of the minds behind the project. “Our customers are going to love it,” he concluded.
Just drove the redesigned Semi. Our customers are going to love it. https://t.co/KZ88sf1CDL
— Dan Priestley (@danWpriestley) December 19, 2025
The small detail does not seem like much, but it is coming from someone who has been involved in the development of the truck from A to Z. Priestley has been involved in the Semi program since November 2015 and has slowly worked his way through the ranks, and currently stands as the Director of the program.
Tesla Semi undergoes major redesign as dedicated factory preps for deliveries
Tesla made some major changes to the Semi design as it announced at the 2025 Annual Shareholder Meeting that it changed the look and design to welcome improvements in efficiency.
Initially, Tesla adopted the blade-like light bar for the Semi, similar to the one that is present on the Model Y Premium and the Cybertruck.
Additionally, there are some slight aesthetic changes to help with efficiency, including a redesigned bumper with improved aero channels, a smaller wraparound windshield, and a smoother roofline for better aero performance.
All of these changes came as the company’s Semi Factory, which is located on Gigafactory Nevada’s property, was finishing up construction in preparation for initial production phases, as Tesla is planning to ramp up manufacturing next year. CEO Elon Musk has said the Semi has attracted “ridiculous demand.”
The Semi has already gathered many large companies that have signed up to buy units, including Frito-Lay and PepsiCo., which have been helping Tesla test the vehicle in a pilot program to test range, efficiency, and other important metrics that will be a major selling point.
Tesla will be the Semi’s first user, though, and the truck will help solve some of the company’s logistics needs in the coming years.