What We’re Reading
Tesla warns that the Model 3 is about to lose half of its tax credit in the US (The Verge, December 4, 2023)
The Clean Vehicle Tax Credit, funded through the Inflation Reduction Act (IRA), of up to $7,500 off the price of an electric vehicle is about to fall to $3,750 on January 1st for Tesla’s cheapest model, the Model 3.
It appears that Tesla has not been able to meet sourcing requirements under the IRA, which were revised by the Department of the Treasury just last week. In 2024, “an eligible clean vehicle may not contain any battery components that are manufactured or assembled by a FEOC.” A FEOC, or foreign entity of concern, includes entities under the jurisdiction of the governments of China, Russia, North Korea, and Iran. It is still unknown how this may affect tax credits for Model Ys and Model Xs in the new year.
Cruise Could Face Fines for Allegedly Misleading Regulators (Transport Topics, December 4, 2023)
It appears the fallout from Cruise’s Oct. 2 incident is still not over. According to a ruling filed Dec. 1, the California Public Utilities Commission has ordered Cruise officials to present evidence at a hearing on Feb. 6, 2024, as to why Cruise should not be fined up to $100,000 per incident for “making misleading public comments regarding its interactions with the Commission.” In response to inquiries about the investigation, a Cruise spokesman stated that the company “is committed to rebuilding trust with our regulators and will respond in a timely manner to the CPUC.”
US Labor Groups Seek Greater DOT and NHTSA Oversight of Autonomous Vehicles (The National Law Review, November 30, 2023)
Numerous labor groups, including the International Brotherhood of Teamsters and the United Auto Workers recently went on the offensive by sending a joint letter to the Secretary of Transportation and the Acting Administrator of NHTSA urging federal regulators to dramatically increase oversight of the autonomous vehicle industry.
Citing numerous widely publicized reports of safety related issues with AVs and joining a growing contingent of opponents to unfettered AV expansion, the labor groups specifically requested an overhaul of the U.S. Department of Transportation’s Automated Vehicle Policy, as well as more stringent industry-wide investigation of AV safety failures and increased federal data reporting requirements.
Given the current public outrage over AV related incidents and the recent surge in approval ratings for labor unions, this joint effort is likely to garner the attention of DOT and NHTSA officials who may be more than willing to increase their scrutiny of current AV technology.