Everything changes for EVs and Hybrids: Here's what to know

Issue #118

We hope you had a meaningful Memorial Day and a chance to remember those who have sacrificed their lives for the country.

Market News

• Volvo is cutting 3,000 jobs to stay alive.

• Toyota's massive recall had a simple issue but risky implications.

• Three cars fail post-race inspections after the Indy 500, leading to costly penalties.

• Nissan might be homeless, all to survive. Here's what we mean.

• Speaking of Nissan, the new Sentra proves cheap cars don't suck,

• AMG was once the epitome of car tuning, but now it's in limbo. So, what's going on? Its CEO explains.

• This brilliant move is how Ferrari keeps its cars valuable.

• RAM teases something big for June. Is it what we've all been waiting for?

• The Chevy Silverado EV Trail Boss is a serious but expensive performer.

• Four VW executives have been sentenced to jail for the Dieselgate scandal.

Safety and Recalls

• Ford recalls 280,000 of these models over brake and steering issues. 

• Yes, it’s Ford again. This time, it issued another recall for faulty child locks in Bronco SUVs.

Car Culture

• These are the most commonly stolen car parts and how you can protect yourself. 

• What are the 20 best car accessories you need? Here they are.

• The merger that didn't happen could have produced a great vehicle. 

• Europe rejected this Corvette concept, and we don't understand why.

• What cars stood out from this fancy car show? Here they are.

• These cars will age terribly. Do you agree?

• What are the best sleeper sedans out there? Here's a fascinating list.

• Here's an interesting tribute to an ordinary car: the Ford Expedition.

• BMW will produce this concept car, which is a beautiful station wagon.

• Here's one of the most important Porsches ever made.

Video Of The Week

Let's settle it once and for all. This video pits GM vs. Ford vs. Toyota vs. a Mystery Brand. Which one wins the drag race?

Power On The Go

The 2nd Best Gift I’ve Ever Given My Dad (Hands Down)

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That’s why I joined Bluetti’s affiliate program. Their lineup of solar generators is incredibly solid—and they’ve got models for everything from emergency home backup to road trip charging stations.

Personally, I have the EB3A. It’s compact, perfect for camping or tossing in the car to charge phones and laptops. But if you want to power bigger stuff—like a fridge during an outage—you’ll want one of their larger units.

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Yes, that’s an affiliate link. No, it doesn’t cost you anything extra. But every click helps support this newsletter and keeps the content coming. Win-win.

In The Know

Everything changes for EVs and Hybrids: Here's what to know. 

A couple of issues ago, we had a debate here at FWT centered around the Slate truck, the Bezos-backed startup that brought the small pickup back to life.

Our conclusion was that it wouldn't work for many reasons (ahem, the lack of a 4-cylinder engine), and you can read our piece here. 

However, there was a big electric elephant in the room: pricing. The Slate truck could cost less than $20,000, but that's under very specific conditions.

These conditions will change as a new tax bill changes the EV and hybrid market. 

The "One Big Beautiful Bill Act" (that you can read here) aims to phase out the Clean Vehicle Credit, which first came into effect under President Barack Obama. 

In short, the new bill would officially end all benefits for cleaner vehicles (such as hybrids and EVs) by December 31st of 2025, so, yeah, soon. That's not the only change; you can read more about it here. 

So, what does this new bill mean if you want a hybrid or EV?

Let's summarize it, and it's important to clarify that these conditions could change even before the new bill comes into play.

Some vehicles are still eligible for the full $7,500 credit. These include the Acura ZDX, Cadillac Lyriq and Optiq, Chevrolet Blazer EV, and Ford F-150 Lightning. 

You can check out the entire list here.

One thing you'll notice is that the MSRP limit is $80,000, and that's crucial.  

You'll also notice that not every EV is on the list. Eligibility depends on the vehicle, not the model.

This is a smart move because, as this Consumer Reports article explains, one vehicle could have more American-made components than another in the same model line.

The idea is to incentivize the brands and the "more American" vehicles. 

One downside is that it could make the process much more labor-intensive. 

However, there's another aspect that might have caught your attention. The changes don't end with eliminating the tax benefits.

A new tax of $250 for EVs and $100 for hybrids will be imposed. 

This tax aims to equalize gas taxes and will depend on each state, so it's hard to estimate how it will affect each individual.

There's solid reasoning behind these taxes. After all, EVs rely on public infrastructure, but some argue that it could be too expensive. Here's an explanation of why.

However, as you can read here, states like California and Washington are already charging additional EV registration fees. 

So, what does this mean for EVs in the US?

One conservative, logical reasoning is that sales will drop considerably, especially in those states that don't yet have registration fees, such as Florida. 

However, EVs won't disappear entirely. Forcing people to buy EVs has never worked, but the choice remains, and some want EVs.

For example, 80% of Cadillac EV owners are new and have turned in their Teslas. So, the interest is still there, and the option will remain. 

Speaking of Tesla, Musk had already said that these tax reforms benefited the company in the long run.

After all, it had managed to optimize production within the US. However, that was before his political antics got in the way. 

Meanwhile, other companies are rushing to increase production in the US, but that's where the hybrid comes into play.

Given the presence of a gasoline engine but with improved fuel economy, the hybrid car will gain strength, even with the changed pricing. 

For example, the new Toyota RAV4 gives the best of both worlds.

We’d love to know: are you interested in an EV?