Teslas and other electric cars may very well enter a golden age of sorts in the United States, if a newly-proposed bill makes it through. Dubbed as the Electric CARS Act, the bill aims to update the EV tax credit by extending it for ten years and removing the number of eligible vehicles per manufacturer. The bill also seeks to support the buildout of more electric car charging infrastructure. 

A federal tax credit of up to $7,500 is currently available for customers who purchase an electric vehicle. However, the current system phases out this credit after an automaker sells its first 200,000 electric cars. Tesla and General Motors have both passed this threshold, which means buyers of both companies’ electric vehicles no longer receive their $7,500 tax credit. With this system in place, the United States practically makes incentives for car buyers to purchase imported EVs instead of those from local automakers like GM. 

Tesla, for its part, has been pushing its electric vehicles without the $7,500 tax credit since the end of 2018 (reduced credits were implemented over 2019), when the company passed its 200,000-vehicle threshold. Fortunately, Tesla’s vehicles like the Model 3 and Model Y have stood well on their own merits, garnering critical and consumer support even without tax credits. If the Electric CARS Act passes, companies like Tesla could make an even stronger push into the automotive sector. 

The Electric CARS Act aims to improve the federal tax credit through the following means: 

1. The elimination of the cap for EV makers. The bill would allow consumers access to the tax credit for the next ten years, regardless of the manufacturer they buy their EV from. Under these terms, even Tesla and GM electric car buyers would be able to get their tax credits once more. 
2. A 5-year use period. The bill would allow buyers to use their respective tax credits over a 5-year period, meaning that EV customers could apply the credit either at the point of purchase or later on. Such a system would make the tax credit more applicable to buyers without large tax liabilities. 
3. Charging infrastructure support. The bill would provide a 10-year extension of tax credits for alternative fuel vehicles and charging infrastructure. This incentivizes the buildout of EV charging systems like Tesla’s Supercharger Network and other rapid charging services like Electrify America. 

The Electric CARS Act is sponsored by Jeff Merkley (D-OR) and Rep. Peter Welch (D-VT), both of whom highlighted the importance of the electric vehicle sector in the United States. In a statement to Channel 21 News, Merkley stated that the bill is apt considering the ongoing climate chaos. He also highlighted the importance of supporting EVs made by American workers in American factories. 

“As climate chaos continues to ramp up with record-setting winter storms, violent hurricanes, and catastrophic wildfires, it is imperative that we transition away from gasoline-powered vehicles, which are fanning the flames of the crisis. Consumers are already looking for electric cars, and this bill will help drive adoption faster—and make sure more of those cars are made by American workers in American factories,” Merkley said. 

Welch, for his part, explained that supporting electric cars would be a common-sense win for consumers, especially considering that EVs are practical to own. 

“We need to quickly and aggressively invest in electric vehicles to combat the global climate emergency that threatens all of our local communities. Owning an electric vehicle can be cheaper and offers significant public health and environmental benefits, but for many Americans, they are unaffordable at the dealership. This bill makes the next generation of electric vehicles accessible to more people by allowing them to receive the electric vehicle tax credit right away. Encouraging electric vehicle adoption is a common-sense win for consumers, the environment, and American workers,” Welch noted. 

Led by Tesla and its S3XY line, electric vehicles have disrupted the automotive industry, even without the presence of the $7,500 tax credit. With the Electric CARS Act in effect, companies like Tesla could reach an even bigger consumer market, bringing EVs further into mainstream buyers. Ultimately, the newly-proposed bill has the potential to usher in a golden age of electric cars in the United States. After all, if Tesla could emerge as a competitive automaker even without the country’s primary EV incentive, one could only imagine the heights the company could reach with less handicaps. 

The text of the Electric CARS Act could be viewed below. 

21.02.23 Electric Cars 2021 by Simon Alvarez on Scribd

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SpaceX has reportedly swapped a “suspect” Raptor engine installed on Starship serial number 10 (SN10) in record time, setting the company up for what appeared to be an excellent static fire just 48 hours after the first test.

In a February 24th tweet, CEO Elon Musk told followers that “one of [SN10’s three Raptor] engines is suspect, so we’re swapping it out.” Engine swap-outs have been a regular procedure for SpaceX’s Starship team as the company continually pushes the envelope of both Starship and Raptor prototype fidelity and implement major design changes and upgrades. Of the five Starship prototypes (including Starhopper) with intentional flights under their belts, all required at least one engine replacement before being cleared to launch.

Within ~18 hours of Tuesday’s “suspect” Starship SN10 static fire, SpaceX dispatched a replacement Raptor down the road from a nearby storage site. Within ~12 hours, the faulty engine had been removed and a backup engine installed in its place. Another ~12 hours after that, SpaceX teams cleared the launch pad for Starship SN10 to attempt a second static fire and (hopefully) qualify the rocket for flight.

Starship SN10 – set to be the sixth prototype to fly – is now part of that elite but buggy group of flightworthy test articles. For the most part, that bugginess is all according to plan: SpaceX’s ability to move and react with extreme speed is what allows the company to make such rapid progress and begin test flights as early in the development process as it does. That speed of action includes responding to the inevitable bugs that crop up while testing cutting-edge rocket prototypes.

Case in point, after Tuesday’s 5pm CST static fire, it took SpaceX less than 48 hours to pore through the test’s data, conclude that one of SN10’s three Raptor engines was “suspect,” select a replacement engine, remove the faulty engine, install that replacement, and fire up Starship SN10 a second time. Even SpaceX’s world-class reusable Falcon rockets would have a hard time challenging that engine swap turnaround. Taking a broader look at the lay of the land, NASA’s SLS rocket booster – outfitted with four former Space Shuttle engines – will reportedly require more than three weeks for teams to swap out a faulty valve in one of those four engines.

The first SLS Core Stage suffered an early abort during its first static fire test in mid January. As of publishing, NASA is now working towards a second static fire attempt in mid March – two full months later. By all appearances, SpaceX turned Starship SN10 around in 48 hours, performing what looked like a full-duration, nominal three-engine static fire on February 25th. Unlike February 23rd’s static fire, Starship exhibited no signs of an abort immediately after the test, whereas SN10 began large depressurization venting the second its Raptors shut down on Tuesday.

Unfortunately, everything will remain uncertain until SpaceX official confirms its plans, but Starship SN10 should be fully cleared for a launch attempt as early as Monday, March 1st if a data review of its Thursday static fire raises no red flags. Stay tuned for updates as SpaceX prepares to find out if the third time really is the charm.

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During the Q4 FY 2020 earnings call, Elon Musk remarked that the Tesla Model X refresh would be released a little later than the Model S refresh, which would be delivered sometime in February. If recent sightings around Tesla’s electric vehicle plant in California are any indication, however, it appears that the flagship SUV may be heading for customer deliveries soon as well, perhaps even around the same time as its large sedan sibling. 

A recent drive from electric vehicle advocate The Kilowatts around Tesla’s Fremont Factory has revealed that the electric car maker is already producing some Model X refresh units. While it remains to be seen if the vehicles themselves are release candidates or if they are already greenlit for customer deliveries, the presence of the flagship SUV in the EV plant’s holding lots bodes well for the Model X refresh’s release. 

Like the new Model S sedans sighted around the Fremont Factory recently, the Model X refresh in the facility’s holding lots were fitted with blacked-out trim. The Model X refresh units also seem to be equipped with Tesla’s new 20″ Cyberstream Wheels, which come included with every order of the flagship SUV. 

The fact that Tesla has started building the refreshed Model X is quite interesting, especially considering the vehicle’s complexity. The Model X is notorious among Tesla’s entire lineup as the most difficult EV to produce, with CEO Elon Musk admitting that the premium SUV was the result of hubris. Musk has also called the Model X as the Faberge Egg of cars, in the way that there will probably be no other vehicle like it. 

WE GOT EM!!
Here’s the first known photos of a Plaid/Refresh Model X at the Fremont Factory! #ModelX #Plaid #Refresh #Tesla pic.twitter.com/16i38l0cFO

— The Kilowatts (@klwtts) February 25, 2021

The presence of the Model X refresh units in Fremont’s holding lots potentially highlights a recent point that Elon Musk recently shared in an email to Tesla employees. In his message, Musk noted that the retooling of the Model S and Model X production lines is almost done, with Tesla aiming for maximum production in the second quarter. The CEO added that there is a high demand for the flagship vehicles, likely due to renewed interest resulting from the recently-introduced refresh. 

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A leaked Elon Musk email recently revealed that parts supply issues gave Tesla the opportunity to bring the Fremont Factory’s production down. There were rumors that Tesla shut down production lines in Fremont before the email’s leak, which may have worried people who were closely watching the company.

The recently leaked Elon Musk email provided some much-needed context for the shutdown in Fremont’s production lines. The Tesla CEO didn’t seem too worried about the short pause in production and saw it more as an opportunity rather than a hindrance.

In his email, Musk wrote that Fremont’s momentary pause in production gave Tesla the chance to upgrade equipment and do maintenance work.

“Fremont production is back up and running as of yesterday and will spool up rapidly to full 3/Y production over the next several days,” he wrote.

He also informed Tesla employees that retooling in the Model S and Model X production lines was nearly complete. “…and will be aiming for max production next quarter,” he announced.

He shared that there was high demand for the Model S and Model X refresh. Due to the high demand, Musk aims to have two shifts for the Models S/X production line. He also asked employees to recommend friends for recruiting.

Deliveries for the Plaid Model S are expected to start this quarter. During the last earnings call, Musk estimated that deliveries would start this month. There have been several Plaid Model S vehicles spotted outside Fremont already. Given that there are only a few days left before this month ends, deliveries may start in March instead.

If Tesla can ramp production and start deliveries before the end of March, the company may have excellent first-quarter results to share at the next earnings call and start the second quarter on firm footing.

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