Autobayng News Team
The EV world may have become even more tumultuous this year, but several key players are aiming to keep the EV revolution moving forward. After all, the world is going to continue to go electric, with or without the U.S. I hope it’s with us, for the sake of our environment and country, that’s for sure.
Welcome back to Critical Materials, your one-stop shop for all of the most pertinent electric vehicle news across the world.
Starting off, California mulls a way to pick up the torch when the federal EV tax credit dies, at least for California and its residents, while GM and Hyundai’s future electric van tie-up is already getting a little messy. Also, the Tesla Model Y six-seater is not resonating all that well in China.
Let’s hop to it, folks. 
It’s August 20th, which means we are getting ever closer to the end date of the EV tax credit, which will die on September 30. But, we’ve learned in the past, California has signaled that it wants to keep the program going on the state level, even after the federal government kills the program. Of course, the announcement was drenched in political sabre-rattling from the state government, including by Governor Gavin Newsom. Initially, he announced his intention to pick up the torch, while saying that he’d make a carveout to intentionally omit Tesla-branded vehicles from benefiting from the tax credit. If we look back in context, it was a statement dripping with contempt for Musk’s tie-up with Trump.
Well, the Trump and Musk springtime love affair is kind of over, but the end of the tax credit is very real. Governor Newsom’s June 12 executive order to continue the clean vehicle tax credit and reestablish the EPA’s clean cars credit is in play, despite pushback from the Trump administration, but it’s still not quite clear just how this will all work.
A report from the California Air Resources Board has recommended backing up the tax credit incentives, but it also warned that the incentives would be based on available resources. Automotive News reports that although the desire is there, it’s not quite clear where the money will come from, or if they can get the program up and running before the federal version ends on September 30:
“Randolph said that the governor and Legislature will decide whether they want to support the rebate program that would replace the eliminated federal EV tax credits. Then they will have to decide on a funding source.
The incentive could offer a $7,500 credit, or it could be less, she said.
“It also depends on how the program is structured,” Randolph said. “We got a lot of advocacy around supporting an incentive program that has no income limits and no MSRP limits; other advocates felt strongly that the program should be limited to medium- and low-income residents and that there should be an MSRP cap.”
Randolph also said the state is leaving open the possibility of retaining the 100 percent zero-emission new-vehicle sales requirement in the next version of the Advanced Clean Cars policy. That 2035 requirement was a particular area of contention for the auto industry.
“The regulation was adopted before there was a wholesale federal assault on progress and innovation, and so I think we are going to get a lot of advocacy from stakeholders to stick to that timeline,” she said. “I think we’re going to get advocacy from manufacturers, for instance, who are concerned about whether they can meet that timeline, and I think that’s going to be a really robust conversation.”
This won’t be an easy fight, especially as the federal government continues to dismantle clean vehicle incentives and tax credits. Let’s hope this pans out for California’s sake, but there may be a legal fight on the horizon between the state and federal government. Photo by: General Motors
A few weeks ago, GM and Hyundai announced their intentions to develop vehicles together, hybrid and electric vehicles. One of those vehicles would be a commercial van dedicated for North America, made in the United States.
Key location: United States. Initially, there was speculation that the Hyundai/GM tie-up van would be made at General Motors’ CAMI Assembly Plant in Ontario. Currently, the plant produces the Brightdrop electric Step Vans, but sales are slow, leaving the plant one of GM’s most underutilized. Now that it’s confirmed that the van will be made in the U.S., that puts the future of CAMI up in the air, according to reporting from Automotive News Canada:
But demand remains below the level that would sustain steady production. In April, GM said it would idle the assembly plant for five months to “balance inventory and align production schedules with current demand.”
The plant is scheduled to resume output in late October, but it will be down to one shift from two, said Mike Van Boekel, Unifor Local 88 plant chair. The union represented about 1,200 hourly workers at the plant before the five-month idling, but Van Boekel expects the number to fall by at least half once production resumes.
Sentiment among workers, most of whom have spent at least two decades at CAMI, is running low, he told Automotive News Canada.
“It’s a very tough reality. Half, at minimum, aren’t coming back. So, I think it’s about as negative as you can get.”
The automaker has yet to share its production plans for the fall with the union, so exactly how many workers will be needed for one-shift production is still unclear, Van Boekel said.
GM also builds battery modules and packs at the plant that go into vans built locally and vehicles at other GM facilities, but the union has not been told when and at what levels battery production will get back online.
It’s clear that it’s tariffs that are holding the keys to the kingdom for GM and CAMI. CAMI has historically made lots of cars for the conglomerate, including the ICE Chevy Equinox and GMC Terrain. It was upgraded in 2021 to handle the Brightdrop vans, but tariff woes make exporting out of CAMI trickier than it’s ever been. Tesla Model YL Photo by: Tesla
We aren’t sure if the new extended-wheelbase, six-seater Tesla Model Y will come to North America, but it’s already showing up in stores in China. And, well, not all impressions are kind.
See, the Tesla Model Y L is entering a very hot segment of three-row EV or PHEV models. Just this year, there have been at least 5 models introduced from direct competitors, like the Onvo L90, or Li Auto i8. These competitors are vying for the attention of Chinese families with creature comforts, price and interior room.
It doesn’t seem like the new long Model Y is all that competitive, though. According to China-based EVInsights (found via CarNewsChina), some reviewers have complained about the Model Y’s lack of headroom and poor third-row space:
“However, the third-row seats were described as “small benches” by EV Insights, with thighs largely unsupported, making them suitable only for emergency use. Due to the Model Y L’s continued coupe SUV design, headroom was severely limited, with only just over a fist’s distance between the head and the rear window for a 170cm person. This raised concerns about head contact during bumpy rides.
Furthermore, the large rear window, positioned close to the head, raised strong doubts of EV Insights about its ability to filter sunlight and UV rays, potentially leading to a “scalding” sensation for occupants. When all three rows are in use, the basic trunk volume is relatively small, accommodating only about three backpacks. While an additional under-floor compartment (for two bags) and a 116L front trunk help, overall practicality for larger items is limited. One customer candidly described the third-row experience as “like driving a convertible.”
From what I can see from the China-market Model Y six seater, it looks like this car has the same woes as the third-row from the pre-facelift Model Y, a car that China never got. I’ve been in the third row of a Tesla Model Y. Naturally, there’s not much legroom compared to what I’d imagine the new long-wheelbase model would have, but the rear seat’s closeness to the sloped rear window did feel very uncomfortable. By comparison, I have been in several three-row Chinese EVs that would be competitors to the Model Y L, and they’re solidly comfortable in their third row areas.
If Tesla wants a three-row model to capture sales, it may need to put in more work than this. Photo by: Suvrat Kothari
You know, as ubiquitous as the three-row crossover is in the ICE world, it’s a little odd that choices are somewhat limited by comparison in the EV world. Sure, there are luxury models like the Mercedes-Benz EQS, Lucid Gravity, Cadillac Vistiq or Rivian R1S, but those are pricy cars that are kind of out of reach for a lot of families. The Hyundai Ioniq 9 and Kia EV9 are confidently in the mainstream field, but let’s not pretend that they can’t get pricy either.
So, if you’re in the market for a three-row EV, what what that look like for you? What features do you want?
Contact the author: Kevin.Williams@insideevs.com Related Articles
