News
U.S. EV buyers will get the $7,500 tax credit with a few catches
The United States Electric Vehicle Tax Credit is one of the most notable advantages of purchasing a battery-electric car. The $7,500 check sent to buyers by the Federal Government incentivizes the purchase of sustainable passenger vehicles, so long as the company you are buying from has not sold 200,000 electrified units, which disqualifies Tesla and General Motors from the program. However, the reintroduction of the EV Tax Credit is being discussed as the Bipartisan Infrastructure Bill is moving closer to implementation, and there are a few extra stipulations that will disqualify many vehicles and many buyers from receiving the incentive check based on the cost of the car and your annual income.
A new amendment passed by the U.S. Senate on Tuesday will require the cost of the vehicle to be under $40,000. Otherwise, the car will be disqualified from the incentive program. Additionally, consumers who make more than $100,000 annually will have to say goodbye to receiving that check. As Senator Deb Fischer of Nebraska said, “Everyday Americans are living paycheck to paycheck because of the sharp rise in costs due to #Bideninflation. We shouldn’t be subsidizing luxury vehicles for the rich using money from hard-working taxpayers.”
Everyday Americans are living paycheck to paycheck because of the sharp rise in costs due to #Bideninflation. We shouldn’t be subsidizing luxury vehicles for the rich using money from hard-working taxpayers.
— Senator Deb Fischer (@SenatorFischer) August 11, 2021
The Amendment was passed in a vote of 51-48, with the difference being three Democratic Senators who voted in favor of the stipulations: Joe Manchin of West Virginia, as well as Mark Kelly and Kyrsten Sinema of Arizona, according to ArsTechnica.
The rollout of electric vehicles is supported by the current President Joe Biden, who attempted to increase the United States’ EV sales goals of GM, Ford, and Stellantis to 40% by 2030. Instead, each automaker pledged to a 50% margin following Biden’s executive order, supporting the highly-anticipated release of more electrified models from these three legacy automakers.
The future of the auto industry is electric — and made in America.
Today I’m signing an executive order with a goal to make 50% of new vehicles sold by 2030 zero-emission — and unveiling steps to reverse the previous administration’s short-sighted rollback of vehicle standards.
— President Biden (@POTUS) August 5, 2021
The Infrastructure Bill has set aside $7.5 billion for EV charging infrastructure, which many automakers, including Tesla, will qualify for as long as multiple car companies can use the chargers.
Earlier this year, a $12,500 EV tax credit was discussed. The new amount and requirements would have removed the cap limit on how many vehicles could be sold by the manufacturer before the credit would disappear. Apart of the “Clean Energy for America” Bill, the credit would apply to cars that were less than $80,000. The full $12,500 would be earned in increments: $7,500 for the electric vehicle, an additional $2,500 for vehicles assembled within the United States, and another potential $2,500 for cars built at production facilities whose workers are members of or are represented by a labor union.
The sub-$40,000 requirement for the EV tax credit would eliminate many vehicles from the running, including all but one of Tesla’s cars. Only the Model 3 SR+, starting at $39,990, would qualify for this incentive. It is unknown how the $40,000 price point was used to determine what vehicles should and should not qualify for the incentive, but according to Kelley Blue Book, the average cost of a vehicle in the U.S. when brand new is $40,957.
Bipartisan Infrastructure Bill by Joey Klender
What do you think? Let us know in the comments below, or be sure to email me at joey@teslarati.com or on Twitter @KlenderJoey.
Lifestyle
Tesla makes the cut on California’s newest EV Rebate program
California just signed a $270 million EV rebate into law and it starts this summer.
California Governor Gavin Newsom signed SB 168 into law on Monday, July 13, 2026, creating a $270 million EV rebate program that delivers money directly at the dealership rather than as a tax credit applied months later. The program, called MyFirstEV, is funded equally by California’s state budget and participating automakers, with each contributing $135.5 million to make the math work.
The timing is directly tied to the loss of federal support when the $7,500 federal EV tax credit ended, removing the most significant consumer incentive that had driven EV adoption in the U.S. California, which accounts for roughly one-third of all EVs sold nationally, moved to fill that gap with a state-level replacement.
The rebate structure is straightforward. First-time EV buyers can receive $3,500 off any new battery-electric vehicle with an MSRP up to $50,000. Used EVs priced at $25,000 or below qualify for a $1,750 rebate. The credit is applied at the point of sale, which removes the friction of the old federal system where buyers had to wait for tax season to see the benefit. The program goes live later this summer, with the California Air Resources Board expected to release full participation details next month.
California hits Tesla Cybercab and Robotaxi driverless cars with new law
For Tesla buyers, the implications are mixed. The Tesla Model 3 RWD at $42,490 and the Model 3 Long Range at $47,490 both fall under the $50,000 cap and would qualify for the full $3,500 rebate for first-time buyers. The Model Y, which starts at $44,990 after Tesla’s recent price adjustment, also qualifies. The Model X, Model S, and Cybertruck all exceed the cap and receive no benefit. As Teslarati has reported, the program also includes a carve-out exempting California-based automakers like Rivian and Lucid from the price cap entirely, a provision that puts Tesla at a disadvantage since it relocated its headquarters to Texas in 2021.
Other qualifying vehicles include the Chevrolet Equinox EV, Ford Mustang Mach-E, Hyundai Ioniq 5, Kia EV6, and Volkswagen ID.4.
The Tesla Semi is entering a new Pilot Program with Paper Transport, LLC (PTI), a Wisconsin-based transportation provider. The company will test the Semi’s Long Range configuration through “dedicated operations within the Chicago market.”
Chicago presents an interesting challenge for the Semi, as it will be a colder-weather climate that will test the Semi’s ability to operate in lower temperatures and in potentially large accumulations of snow. This is something Tesla has been testing with the Semi in Alaska and even in Northern California during the colder months, but Chicago will present a truly tough midwestern winter.
Tesla Semi spotted on journey home after winter performance testing
PTI says it is using the Semi to evaluate its strategy of reducing transportation emissions while maintaining performance, reliability, and cost efficiency. These are major arguments for the Semi being introduced into new fleets.
CEO of PTI Tyler Ellison said:
“PTI has been a leader in sustainable transportation solutions for over 15 years. We take a consultative approach to helping customers identify and implement the right transportation solution for their network. Our partnership with Tesla expands our portfolio alongside renewable natural gas and intermodal, giving customers more ways to reduce Scope 3 emissions without compromising service or economics.”
PTI is far from the first company to adopt the Semi within a fleet, as Tesla entered strategic agreements with PepsiCo. and its subsidiary Frito-Lay for a Pilot Program that extended throughout the California region.
Tesla has let companies like those utilize the Semi to determine whether it would be suitable for their operations. Additionally, Tesla gets valuable information regarding the Semi’s performance, knowing what to improve and what is ideal for companies that will utilize the all-electric truck for regional and nationwide logistics.
PTI plans to utilize the Long Range configuration, which is priced at $290,000 and features a range of approximately 500 miles, a three-motor powertrain, up to 800 kW of drive power, and consumption of just 1.7 kWh per mile.
Tesla Semi pricing revealed after company uncovers trim levels
VP of Maintenance at PTI, Bryan Ellen, added:
“We are excited to partner with Tesla, leveraging their ever-evolving technology. We are bullish in our estimation of the parallels available between our dedicated model and the efficiency of their fully electric Class 8 tractor. We anticipate a growing synergy between our businesses as we work to facilitate this sustainable solution for our customers.”
PTI has logged more than 87 million miles using sources like compressed and renewable gas, but now is looking to take it a step further with fully electric operations.
Tesla revealed on Monday that it is building a new autonomous vehicle at Gigafactory Texas, its plant just outside of the City of Austin. This particular vehicle will be geared toward those who are in need of a wheelchair-accessible car that would require no human driver for operation.
According to a new report from Wired, Tesla’s Senior Policy Advisor, India Herdman, told members of the Washington D.C. City Council on Monday:
“We are in development for a purpose-built, wheelchair-accessible autonomous vehicle. We know that paratransit can be very difficult, and people who are confined to wheelchairs permanently should still be able to move around freely, so that is an active product being built by Tesla in Texas.”
This builds upon what CEO Elon Musk said last year on X, which confirmed the company was working on accessible rides within its Robotaxi platform, which currently is confined to the Model Y.
Absolutely
— Elon Musk (@elonmusk) September 19, 2025
Tesla is also developing the Cybercab, which started employee rides last week. However, this vehicle is not necessarily geared toward wheelchair accessibility.
That leaves a major gap in the autonomous ride-sharing program that Tesla is attempting to build; the company has been pretty clear that it does not want to complicate its manufacturing lines by bringing in a wide array of body styles.
However, it seems necessary to have something larger that could help transport people to appointments when they cannot drive. For wheelchair accessibility, the Robovan, which was unveiled at the “We, Robot” event in October 2024, seems to be the most ideal solution:
Herdman did not indicate whether she was referring to the Robovan or if Tesla is building yet another body style that is geared toward full autonomy but also caters to the handicapped.
Tesla might need to develop something specifically for the handicapped in order to align with the Americans with Disabilities Act, which prevents discrimination against people with disabilities in transportation services. Uber was hit with a lawsuit late last year for “refusing to reasonably modify its policies, practices, or procedures where necessary to avoid discriminating against riders with disabilities.”
Tesla would obviously like to avoid this.
It will be interesting to see what Tesla will do with this project, and whether it will introduce something new to the market or just continue with the Robovan.
Tesla makes the cut on California’s newest EV Rebate program
Tesla Semi enters new Pilot Program with interesting challenge
