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Tesla supporters protest after IRA incentives shun popular BEVs, support hybrids

Credit: Jamie Lipman for Top Gear

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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

Credit: US Department of Energy

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. 

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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. 

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

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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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Elon Musk

Elon Musk commends Tesla team on successful Robotaxi launch

Tesla CEO Elon Musk commended the company on the successful launch of Robotaxi.

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NORAD and USNORTHCOM Public Affairs, Public domain, via Wikimedia Commons

Tesla CEO Elon Musk commented on the company’s launch of the Robotaxi platform, which officially went live to a small group on Sunday in Austin, Texas.

It is the first time Tesla has offered driverless rides through the ride-hailing platform it has worked to activate for several years, and it was overwhelmingly successful based on early reviews.

The launch was coupled with the release of the first-ever looks at the Tesla Robotaxi app, which does more than allow riders to summon vehicles for transportation. It also allows the rider to adjust climate settings in the car before it arrives for a comfortable ride, and it will sync entertainment and streaming settings to keep occupants entertained.

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

The first rides are being performed with a safety monitor in the passenger’s seat. These monitors have no control over the vehicle, and are there just to ensure smooth operation.

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The first reviews called rides “smooth” and “comfortable,” and commended Tesla for its hard work over the past few years to make this happen. Many were impressed with the cars’ ability to keep pedestrians safe, avoid congested parking lots, and the efficiency of the rides, as the time from the ride request to the Robotaxi accepting the ride was extremely fast.

Musk has been at the forefront of this operation for a decade, as Tesla has been working to release a version of the Robotaxi through the development of Full Self-Driving. This has been an effort that included seeking top-tier engineering talent and taking incredible leaps of faith, including switching to a Vision-only approach for Full Self-Driving.

Musk commended the Tesla team for its hard work:

It’s truly an incredible accomplishment, as many considered Robotaxi a “failure” despite it not even being rolled out. In May, we reported on media outlets calling the Robotaxi rollout a total failure, despite Tesla always maintaining the launch would happen in June:

Tesla Robotaxi deemed a total failure by media — even though it hasn’t been released

Hundreds of rides have already been taken, and there have not been many complaints. It’s an incredible jump forward for Tesla.

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Elon Musk

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

The first reviews of Tesla Robotaxi are in, and those riders are impressed and astounded with the smooth and comfortable nature of the service.

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Credit: Joe Tegtmeyer | X

Tesla Robotaxi riders are touting their awesome experiences in their first rides using the automaker’s new driverless ride-hailing service, which launched to a limited number of people yesterday for the first time.

On Sunday, Tesla officially launched Robotaxi, its driverless ride-hailing service, in downtown Austin. A select group of people were chosen to receive early access to the program, as well as the new Robotaxi app, which is used to request a ride and will sync everything from climate preferences to streaming settings with each pickup.

Tesla officially launches Robotaxi service with no driver

Teslarati gained access to the Early Access riders program and the Robotaxi app, giving us a first-hand look at the experience. We will be in Austin soon to test out the Robotaxi fleet for ourselves.

However, those who were there for the initial rides on Sunday had nothing but great things to say. Hundreds of rides were taken during the first hours of the Robotaxi program, and neither the company nor the riders reported any issues.

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Here’s what people said about their experiences:

  • “Extremely smooth stops,” and great awareness of road conditions, including pedestrians, speed bumps, and busy parking lots, were all handled with ease:

  • Safe navigation around pedestrians who walked just off the sidewalk into the road:

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  • “Just as good as it is during the daytime” at night. There were no changes to report by riders who took rides during the day and evening:

  • Avoided expensive and stressful parking at local tourist hotspots like Terry Black’s Barbeque:

  • “Comfortable and similar to existing Tesla cars with FSD,” intuitive and “surreal” experience:

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  • The app is quicker than other ride-sharing services. When a destination is chosen, Robotaxi is already on the way to your location:

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Tesla Robotaxi rollout proves that Elon Musk still delivers, even if it’s late

Tesla is also still the company that makes the impossible feel late.

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Credit: Tesla

It took a long time, but Tesla has finally successfully rolled out its dedicated Robotaxi service in Austin this weekend. The initial rollout only involved a small fleet of cars operating in a small geofenced area in Texas, but it is still significant. 

It does, if any, prove that Elon Musk is still capable of delivering on his promises, even if they are late. Tesla is also still the company that makes the impossible feel late.

Finally, a Rollout

Elon Musk has been predicting a Robotaxi rollout for years, so much so that even avid Tesla supporters have grown quite wary of his constant predictions. After a while, Elon Musk himself admitted that he has become the boy who cried FSD, though he still maintained that self-driving was really just around the corner.

This past weekend, Musk’s predictions finally came true. Actual paying customers used Tesla’s dedicated Robotaxi service for a small flat fee of $4.20 per ride. Elon Musk seemed quite happy with the Robotaxi’s initial launch, as evidenced by his congratulatory message to the Tesla AI team on X.

https://twitter.com/elonmusk/status/1936876178356490546
https://twitter.com/aelluswamy/status/1936865682810946035

No More Tesla Vision Debates

One thing that is evident in Tesla’s initial Robotaxi rollout in Austin was the fact that the debate surrounding Tesla’s vision-only approach is completely gone now. With actual Robotaxis operating around Austin, there are no more questions about whether cars can navigate city streets on their own using only AI and cameras. They can, and safely too, at least based on Tesla’s initial fleet of Robotaxis.

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https://twitter.com/ItsKimJava/status/1936927640268484909
https://twitter.com/SawyerMerritt/status/1936997202880081950

The Beauty of Normalcy

The Robotaxi rides from Tesla owners who were fortunate enough to experience the first driverless rides from the EV maker’s fleet were quite uneventful. Comments on social media platforms such as X observed that the Robotaxis operated safely and cautiously, and their driving was actually smoother than some human drivers. 

That may not sound very exciting at all, but that’s the beauty of it. Tesla’s Robotaxi service is designed to look and feel natural to people. And so far, it appears that Tesla is accomplishing this with its Robotaxi rollout.

https://twitter.com/DrKnowItAll16/status/1936992009685700663
https://twitter.com/DirtyTesLa/status/1936999390100496443
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