Electric Cars

General Motors has announced a significant shift in its approach to supporting electric vehicle affordability. Initially, the company intended to extend the federal $7,500 EV tax credit through a leasing program for its Chevrolet, GMC, and Cadillac models, particularly for vehicles in transit before the September 30 cutoff. However, GM has now reversed this plan. Instead of relying on the federal incentive, the automaker will directly invest its own funds, offering approximately $6,000 in savings to customers who lease its electric vehicles. This new, internally funded initiative aims to maintain competitive pricing and continued accessibility for consumers in the EV market, albeit for a limited duration.

This change in strategy by General Motors comes shortly after the expiration of the federal $7,500 EV tax credit at the end of September. Many automakers, including GM, had explored methods to prolong this incentive, with leasing emerging as a viable option. The plan involved automakers purchasing EVs through their financing divisions, thereby qualifying for the tax credit, and then passing those savings on to consumers through lease agreements. However, GM's recent announcement indicates a departure from this approach, as the company has decided against claiming the tax credit themselves.

A spokesperson for General Motors confirmed that the company had initially worked on an extended offer to benefit both customers and dealers. However, after careful consideration, the decision was made not to pursue the federal tax credit for these lease programs. Instead, GM will independently cover the incentive lease terms through the end of the current month, October. This move allows the company to directly manage the savings offered to its customers, bypassing the complexities and potential political scrutiny associated with the federal incentive loophole.

Reports suggest that this reversal may be linked to pressure from political figures. A source close to the matter indicated that GM's decision to discontinue its participation in the extended tax credit program followed an appeal from Republican Senator Bernie Moren. Senator Moren had reportedly urged for the closure of the loophole that permitted the $7,500 credit to be transferred to consumers via leasing arrangements. This political intervention appears to have influenced GM's pivot towards a self-funded incentive structure.

Despite this shift in incentive strategy, General Motors has been experiencing strong performance in the electric vehicle sector. The company recently reported a record delivery of over 66,500 electric vehicles in the third quarter alone. Year-to-date through September, GM has sold an impressive 144,668 EVs, more than double the volume achieved during the same period in the previous year. Notably, the Chevy Equinox EV has emerged as the best-selling non-Tesla electric vehicle in the United States, and Cadillac has secured its position as the leading luxury electric vehicle brand in Q3.

While GM has altered its plan, other major automotive players like Ford, Stellantis (parent company of Jeep), and BMW are reportedly continuing with their programs to extend the EV tax credit for leases for several more months. GM had initially been expected to maintain its extended offer until the year's end. Furthermore, GM is actively focusing on making electric vehicles more accessible, exemplified by the Chevy Equinox EV, which starts at under $35,000, making it one of the most affordable EVs in the US. Looking ahead, the company is preparing for the arrival of new, lower-priced EV models, including the 2027 Chevy Bolt, as part of its strategy to capture a larger share of the evolving electric vehicle market.

General Motors has opted to independently fund customer incentives for electric vehicle leases, rather than extending the federal $7,500 tax credit through its previous program. This strategic adjustment sees GM providing approximately $6,000 in savings directly to consumers for a limited period this month. The decision to forgo the federal tax credit follows internal review and comes amid political discussions regarding the leasing loophole. Despite this change, GM continues to demonstrate robust growth in its EV sales, with models like the Chevy Equinox EV leading market segments. The company remains committed to expanding its electric vehicle offerings and making them more affordable in the coming years.

Tesla has begun offering a retrofit kit to reinstate the conventional turn signal stalk on its updated Model 3 electric vehicles in the United States. This move follows criticism from both owners and critics regarding the absence of the stalk in recent models, where its functions were relocated to the steering wheel and central screen. The $595 package includes the necessary components—a traditional stalk, a new steering wheel, a steering column module, and installation—indicating a more complex integration than a simple add-on. This offering presents a disparity for American buyers, as their European and Chinese counterparts receive the turn signal stalk as a standard feature without additional cost, and in China, the retrofit was initially available at a lower price.

Tesla Model 3 Turn Signal Stalk Reinstatement for US Market

In a significant development for American Tesla Model 3 owners, the automaker has announced the availability of a retrofit option to reintroduce the traditional turn signal stalk. This comes after the redesigned Model 3, launched in the US early last year, omitted physical stalks, moving their controls to the steering wheel and central display. This design choice was met with considerable disapproval from consumers and reviewers. The retrofit kit, priced at $595, can be purchased through Tesla's online store and is compatible exclusively with Model 3 vehicles manufactured in 2024 and 2025. The package includes a conventional turn signal stalk, a replacement steering wheel, a new steering column module, and the associated installation services. This decision highlights a notable difference in market offerings; while customers in Europe and China now receive a Model 3 with the traditional stalk as a standard inclusion, American buyers must pay an extra fee for this feature. Furthermore, when the retrofit was first introduced in China earlier this year, it was available for approximately $350, underscoring the price discrepancy for US consumers. Concurrently, Shanghai-produced Model 3s are also benefiting from enhanced battery technology, leading to extended driving ranges, though European pricing has remained stable despite these upgrades.

The reintroduction of the turn signal stalk, albeit at an extra cost for US consumers, signals Tesla's acknowledgment of a design misstep. While the initial concept of integrating controls onto the steering wheel might have aimed for a futuristic, race-car like experience, it ultimately compromised user practicality and safety for everyday driving. This move towards restoring a familiar, intuitive control element is a positive step, demonstrating the company's responsiveness to customer feedback. However, the price difference and the standard inclusion in other markets raise questions about fairness to the American customer base. Moving forward, it emphasizes the importance of balancing innovation with established ergonomic principles and user expectations in automotive design.