Weekly News

Tesla Launches Revamped Model 3 in the US

Tesla has officially launched the refreshed version of its Model 3 sedan in the United States, following its debut in China and Europe four months earlier. This revamp marks the first major overhaul of the Model 3, the electric vehicle that propelled Tesla into mass-market prominence. 

The new Model 3 boasts several interior enhancements, including a subtle ambient light bar encircling the cabin, a revamped touchscreen display, and an additional screen for rear-seat passengers. The car also features improved sound dampening and upgraded materials. Externally, the Model 3 now sports new headlights and taillights, along with a sleeker front design.

Available in two variants, the rear-wheel drive Model 3 starts at $38,990, offering a range of approximately 272 miles. The Long Range version, priced at $45,990, boasts an increased range of about 341 miles, surpassing the previous model's 333-mile capability.

Tesla's refreshed Model 3 has already demonstrated success overseas, particularly in China, contributing to a record-breaking fourth quarter in 2023. With its launch in the U.S., Tesla completes the update of three out of its four core models, following the introduction of new versions of the Model S and Model X in 2021 (a Model Y refresh is expected later this year). 

Dodge Unveils First Look at New Electric Charger

Dodge is set for its upcoming electric Charger, slated for launch later this year. Recently released photos showcase a robust design. Despite announcing the retirement of the iconic Charger in 2021, Dodge is trying to continue its legacy in the electric era and bring more people towards electrification.

In 2022, Dodge introduced the world to its vision with the Dodge Charger Daytona SRT “Banshee” concept. This concept was not just a glimpse into the future of muscle cars but also a commitment to preserving their soul in the EV transition. It aims to join the ranks of Dodge's Hemi, Hellcat, and Redeye brands, featuring the eRupt transmission system designed to simulate the experience of gear shifting and even a faux exhaust for added authenticity.

The upcoming Charger EV is based on the STLA Large platform and is expected to come in three base models. Two of these will sport a 400V system with an output of 455 horsepower, upgradeable to 535 horsepower with a Direction Connection Kit. A higher-tier model will start at 590 horsepower, with potential enhancement up to 670 horsepower. Details on the top-tier 800V model remain under wraps, but Dodge promises groundbreaking performance.

This move by Dodge signifies not just the evolution of the Charger but also the muscle car's transition into the electric age, combining classic aesthetics with electrification.

Point-of-Sale EV Tax Credit Kicks Off

The electric vehicle tax credit officially transitioned to a point-of-sale system on January 1st. Previously, the EV tax credit functioned as a post-purchase benefit, aimed at reducing federal tax liability for buyers. However, starting from the beginning of this year, the incentive has been transformed into an instant discount, directly lowering the purchase price at dealers. Now, qualifying new EV buyers can get $7,500 off, while those purchasing used EVs can enjoy benefits of up to $4,000 off. The government is set to reimburse these discounts to the licensed dealers through its IRS portal, which is up and running despite some hiccups at the start of the year.

Despite the adjustments made in 2024, which resulted in the exclusion of some popular models, like the Ford Mustang Mach-E and certain Tesla Model 3s, due to new battery sourcing restrictions, many in-demand vehicles, including the Tesla Model Y and Chevrolet Bolt, continue to be eligible. In the used EV market, the criteria include models from 2022 or earlier, priced at or below $25,000. Recent price reductions have broadened the range of models that qualify, offering some of the most budget-friendly EV options on the market. This significant change in the EV tax credit system is anticipated to greatly enhance EV adoption, making these vehicles more attractive and economically accessible.

Recharged promptly began offering the point-of-sale credit from January 1st, and Tesla started providing the credit last week.

Hertz Selling Off EV Fleet

Hertz recently began restructuring its electric vehicle fleet, predominantly made up of Teslas, and has opted to sell off a third of these vehicles. The company attributes this decision to lower demand for EV rentals and unexpectedly high repair costs.

The sell-off, initiated last month and expected to continue through 2024, has led to the recognition of approximately $245 million in depreciation expenses. The extensive price cuts by Tesla over 2023 significantly impacted Hertz's fleet, primarily composed of Model 3s.

While Hertz's current strategy includes a partial shift back to gasoline vehicles, it's crucial to acknowledge that EVs typically incur lower long-term maintenance costs, despite individual repairs being more expensive. The challenges Hertz faced with its fleet, including depreciating inventory, limited focus on educating rental customers about EVs, and a high percentage of rentals by Uber drivers, are not entirely surprising. Hertz plans to continue offering EVs in its fleet and is likely to enhance its strategies for driving EV profitability over time. 

Biden Administration Allocates $623 Million for EV Charging Expansion

The Biden administration announced on Thursday an allocation of $623 million in grants to 22 states and Puerto Rico, marking a significant milestone in the federal government's $7.5 billion initiative to create a national EV charging network. This funding aims to establish approximately 7,500 EV charging ports and hydrogen fueling stations. This move aligns with President Biden's 2021 Infrastructure Investment and Jobs Act and supports the ambitious goal of having half of all new passenger vehicles in the U.S. be electric by 2030.

U.S. Transportation Secretary Pete Buttigieg emphasized the nation's opportunity to lead the EV revolution, noting the significant growth in EV sales in the U.S., with 1.2 million units sold last year. Among the major projects are a $56 million electric freight corridor in California's San Joaquin Valley, a $51 million alternative charging infrastructure development in Puerto Rico, and a $70 million Texas Hydrogen and Electric Freight Infrastructure project.