Post by Barry Kresch

Beware the Disappearing Incentives

There are 35 EVs (BEV and PHEV) listed as incentive-eligible by the Federal Department of Energy as of October 1, 2023. It is really fewer than that as the website breaks out the different trim levels. For example, there are 8 variations of the Volkswagen ID.4. The DoE website is here. It includes the ability to filter vehicles.

Tesla is publishing incentive alerts on its website, seen in the photo above, warning that some of its vehicles may lose full or partial incentive eligibility. Tesla is more public about it, but it is not alone in bumping up against the moving target of escalating in-sourcing requirements, the looming Foreign Entities of Concern rule, and ongoing IRS rule-making. From what we are hearing, most EV manufacturers could be affected, mostly because it is difficult to quit China as quickly as the legislation requires.

Battery Requirement Changes

These are the changes in the battery requirements that begin in January.

• Critical Mineral Sourcing/Refining increases from 40% to 50%. This minimum percentage must come from either a domestic supplier or free trade partner.
• Battery Assembly – the percentage of battery components that must be assembled in North America increases from 50% – 60%.

Foreign Entities of Concern

The rule that the manufacturers have voiced the most consternation about is the Foreign Entities of Concern (FEoC). This phases in beginning in 2024, followed by part two in 2025. The FEoC mirrors the battery regulations in that half of it applies to critical minerals and the other half to battery assembly. It is the latter half that starts in 2024 with the mineral portion following one year later.

Beginning in 2024, eligible vehicles cannot contain any battery components manufactured in a country so designated. The way to think about it is if you reference the 60% battery assembly requirement noted above, a manufacturer can source 40% of battery components from outside of North America in 2024. However, the FEoC rule specifies that none of that 40% can come from a FE0C. This is obviously about China, but other countries will fall into this designation.

We expect a number of vehicles to lose all or 50% incentive eligibility in 2024. Over time that will likely change, but the next two years are sure to be the most challenging as requirements tighten and new plants have not yet come online.

Ongoing IRS Rule-Making

A large rule-making task was quite literally dumped on the IRS in August of 2022. The wide-ranging IRA legislation, which encompasses much more than EVs, was passed in rather skeletal form, with the implementing agency, The Department of the Treasury, responsible for developing the specific rules. Sometimes this rule-making has run counter to the spirit of the legislation according to some of the legislators who voted for it. For example, the “leasing loophole,” which allows consumers to obtain incentives on vehicles that would otherwise not meet the requirements if purchased, came about because the IRS interpreted a lease as a commercial transaction. The vehicle is sold by the dealer or manufacturer to a captive finance company. This was defined as commercial. The fact that the finance company subsequently executes a lease with a consumer is beside the point from the perspective of the incentive. Commercial transactions fall under a different set of rules that do not include the restrictions that apply to consumer purchases.

Due to the short lead time, the ink has barely been dry on the rules at the time they are due to be implemented. Sometimes the IRS blows through the deadline. The first-year set of battery rules was postponed from January 1 to April 18th of this year for that reason.

The FEoC remains a moving target in this regard. The IRS has advised that the final list will be available before the end of the year, so potentially as little as 24 hours before it is due to go into effect. Maybe there will be an FEoC postponement, similar to what happened with the batteries.

How to Define FEoC

One of the big areas of contention involves not so much designating what countries fall under this rule, but how it is defined. For example, what if a Chinese company opens a plant in North America? What if it is a joint venture with a domestic manufacturer? What if a domestic company builds a factory but licenses technology from a Chinese company? The latter is the most minimalistic footprint and an example is the battery plant that Ford has begun building in Marshall, Michigan. The plant will be producing Lithium Iron Phosphate (LFP) batteries. Ford will own the factory. The workers will be Ford employees. The LFP battery chemistry IP is being licensed from CATL, the big Chinese battery company.

Last week, Ford announced it is pausing construction on this plant. Of course, the company is in the midst of contentious negotiations with the UAW, which is trying to include battery plants owned by the companies in which it has representation at parity wages. But Ford has also commented publicly that it is waiting for IRS determination regarding whether the IRA manufacturing and consumer tax credits are applicable to this plant. It has threatened to greatly downsize the plant if that is not the case.

VIN

While we hope that dealerships are able to offer consumers accurate information regarding whether an EV is incentive eligible, and in our experience Tesla has been pretty on top of incentives, the definitive way to know is to input a Vehicle Identification Number on this federal page. Of course, it would be better to know about eligibility further upstream, but that is what the government has provided.

Lobbying

There are lots of reports of furious lobbying behind the scenes, which occasionally spills into public view, such as the Ford battery plant. But there is more than that. Manufacturers would like to change the determination of vehicle eligibility from the “placed in service date” to the date of manufacture. They obviously have more control over the latter, and it buys them a bit of a grace period since it is earlier.

It has also been reported that manufacturers would like to get Vietnam designated as a free-trade partner for the purposes of battery critical minerals.

The Transfer Provision – Another Big Deal

Tax credits are not the most consumer-friendly form of incentive. You have to wait for it. And not everyone has enough tax liability to be able to use it. The transfer provision is the legislation’s way of turning the tax credit into a rebate. The buyer transfers the credit to the seller. The seller takes the credit and gets reimbursed by Treasury. Also, non-taxable entities can use the transfer provision.

My biggest concern is that the process won’t work smoothly when it is initially introduced. The IRS has been working on the process. It is yet another aspect of rule-making that will likely come down to the wire. Will the dealers and manufacturers be on top of it and not afraid to use it?

Fisker Deliveries Commence

Fisker is the latest automaker using the direct sales model to begin deliveries. And like with Tesla, Rivian, and Lucid, they aren’t allowed to open stores in CT. They also seem to be in the middle of working through their processes.

On its website, Fisker lists only 1 store location in the USA, Los Angeles, with planned future planned locations in New York, Arizona, Maryland, and Tennessee. There are a limited number of Tesla stores in New York but there are still franchise law related restrictions there, so it is not a given that this could happen quickly.

No word on whether they are contemplating the tribal land route.

We have been in touch with Fisker. They are making arrangements to deliver vehicles from nearby states, but we don’t have a lot of specifics at this time. They offer the option to pick up your Fisker Ocean at your nearest Fisker Center Plus or Delivery Center. A Google Maps search did not reveal any nearby locations. Alternatively, concierge delivery is an option for an extra cost.

Fisker states that they will work closely with their customers to ensure a smooth experience in delivering and registering a vehicle. They have a Vehicle Admin team to help with these details. Temporary plates can be obtained if needed. New owners pay CT sales tax.

There have been no announcements to this point regarding a CT service center. They are offering mobile service.

The Fiskers are attractive looking vehicles and the pricing of the Ocean begins at $37,499.

For readers of this blog who are taking deliveries of a Fisker vehicle in the near term, we ask that you reach out to us to let us know what the process was and how well it worked.

Fiskers are assembled in Austria and as such are not eligible for the Inflation Reduction Act EV incentive.

The photo at the top is from the Fisker press kit and, yes, that is a solar roof (SolarSky is the branded term), that can obtain an estimated 1500 miles of charge over the course of a year.

Currently, Fisker is not offering a lease, though they have a brand for it: the Fisker Flexee Lease. Details will be made available in the coming months.

This is a developing story and we hope to have more details and delivery experience reports over the next several months.

Photo at top taken under one of the solar canopies at the Hotel Marcel with the building in the background, from left to right: Daphne Dixon – Live Green CT, Paul Wessel – Greater New Haven Clean Cities, and Analiese Mione, Barry Kresch, Bruce Becker, and Paul Braren from the EV Club who organized the symposium.

“Sold-out” Conference

Well, it was free, but there was more interest than we were able to accommodate and we had to close registration. Early feedback has been extremely positive. such as this message:

“I attended the NEEVS yesterday and had a fantastic time. What a great lineup of speakers/presentations and lots of fun at the car show as well! I’m looking forward to future symposiums in the coming years. …. Again, I had a great time at the symposium (and the lunch was incredible).”

We would like to thank our sponsors: Live Green CT, Greater New Haven Clean Cities Coalition, EVConnect, Maxwell Vehicles, and ChargePoint, without whom we would have been munching on stale pretzels.

Of course, we also thank our attendees for joining us and being an engaged and interactive audience.

The Hotel Marcel provided excellent, eco-friendly hospitality. For anyone who may be nervous about switching from a gas to an induction cooktop, the quality of the food attested to how good induction cooking can be. Even the chafing dishes were induction.

We’ve had some comments about how a small committee was able to put together a jam-packed agenda in a short period of time. If anything, the challenge is less about finding content than winnowing it down to fit within our time parameters. As it was, our 3-hour speaker agenda took 4 hours with too little time for Q&A.

We want to give a shout-out to Rich Jordan, president of the CT Tesla Owners Club, for his help with the car show, to the Westport Police Department and their Model Y patrol car, and to Tesla for bringing vehicles for test drives.

Converted EV Van

Hotel Marcel architect and developer, Bruce Becker, talked about how Maxwell Vehicles converted an ICE van to electric, using a salvaged Model 3 battery and drive train. This van gets a lot of use shuttling guests to downtown New Haven, Yale, Union Station, Tweed Airport, and other destinations.

Out of Spec Dave

YouTube and X (Twitter) personality, Out of Spec Dave from Greenwich, CT, talked about his adventures as a road warrior, having driven lots of different EVs and experienced the many faces of public charging. Not all of them are happy faces. Part of the charging experience is knowing before you get to a charger whether the charger is in service and how fast it is charging. There is a gap in the eco-system here. He has launched the “Rate Your Charge” newsletter. Take a video or photo of your charge, describe your experience, and tag @outofspecdave on Twitter. These are being compiled in a weekly report posted to Twitter. For those not on Twitter, use this Google Doc: https://docs.google.com/forms/d/e/1FAIpQLSd9nE1JOulqidJNacpL230TdswfnnaWBTjdGIaky3ffkHF6EA/viewform?pli=1

PACE

Mark Scully from People’s Action for Clean Energy (PACE) spoke about their program to help municipalities decarbonize and save money in the process. This slide illustrates the cost savings projected in a transition to renewables.

United Illuminating

We get many questions regarding whether widespread EV adoption will crash the grid. While the grid does need to be modernized (and the Public Utilities Regulatory Authority has a grid modernization docket), Rick Rosa from Avangrid/UI discussed using EVs to optimize the grid. This slide is an example of optimization vs curtailment. EVs will be beneficial to the grid for the foreseeable future and, as such, there are incentives for EV owners to participate. See our incentives page for a more detailed description of the program with links to sign up for the residential or commercial incentives. This program is also offered by Eversource and it can offset the costs of buying and installing a 240 volt charger, as well as pay an ongoing incentive to participate in their managed charging programs.

Zoning for EV Readiness

Daphne Dixon of Live Green CT, who has done a lot of work with municipalities, gave a presentation that illustrated the complexity of zoning for EVs but also highlighted the significant benefits as noted in the example below.

All Electric, Zero Emission Home

Paul Braren provided a detailed description of his journey to create an all-electric home (solar roof seen in the photo, powerwall/VPP, 2 EVs, insulation for home and windows, heat pumps, smart panel, electric garden tools) and capture the available incentives. It has been a complicated road. This links to his full presentation.

IRA Transfer Provision

In his update on incentives, EV Club President, Barry Kresch, discussed the implementation of the transfer provision in 2024, and how it changes a tax credit into a point of sale rebate.

Advanced Clean Cars II

CT is a participant in the California Air Resources Board emissions requirements. It is now in the process of implementing the second phase of these regulations, commencing in 2027 through 2035. The rules require manufacturers to sell increasing amounts of zero emission light-duty vehicles, reaching 100% in 2035.  There is a separate set of regulations that would significantly lower emissions for medium and heavy-duty vehicles during this same period. Charles Rothenberger, Climate Attorney for Save the Sound, explained these regulations. The legislature has authorized CT DEEP to proceed with the required multi-step process. The slide below shows where we are and the remaining steps.

There is some concern that when the rules go back to the legislature, in which a bi-partisan review committee is supposed to examine them for legal sufficiency, that there may be an effort by opponents to short-circuit the approvals process. More on that to come.

We hope you see you next time!!!

The Symposium is Sold Out – People Can Still Come for the Car Show

Get charged up at NEEVS, the ultimate gathering for EV enthusiasts, policy wonks, and all who seek cutting edge guidance on decarbonization.

Please join us at the first annual Northeast Electric Vehicle Symposium (NEEVS) at Hotel Marcel in New Haven on September 9, 2023. EV enthusiasts, electrification and decarbonization advocates, sustainability volunteers and professionals, municipal employees, real estate owners and developers and policy wonks are invited to join us.

Bruce Becker is the lead architect and owner/developer of Hotel Marcel in New Haven, the country’s first zero emissions and Passive House hotel, and Chairman of the EV Club of CT. Bruce will welcome guests as they enjoy a light buffet lunch, and briefly share his approach to hotel e-mobility at Hotel Marcel. Guests have access to Tesla Superchargers, Level 2 chargers under a solar canopy and a custom electric shuttle van.

You will learn firsthand from expert guest speakers about:

1. Hotel Marcel’s guest experience in e-mobility,
2. The state of public EV charging and opportunities for improving it,
3. The latest updates in state and federal EV/EVSE incentives and V2G,
4. Best practices for transitioning vehicles and homes to all-electric,
5. How to move municipalities to 100% clean, renewable energy,
6. The societal and environmental benefits that proposed regulations for light, medium and heavy-duty vehicles under Advanced Clean Cars II (ACC II) provide for Connecticut.
7. Zoning for EV readiness

Date: September 9, 2023

Hours: 12:00-4:30

Host: Hotel Marcel, 500 Sargent Drive, New Haven, CT 06511

Organizer: EV Club of CT

Partner: Tesla Owners Club of CT

Thank You to Our Generous Sponsors: Hotel Marcel, Live Green CT, EV Connect, Chargepoint, Maxwell Vehicles, and the Greater New Haven Clean Cities Coalition.

Speaker Schedule:

2:05-2:30: Charles Rothenberger, Climate & Energy Attorney, Save the Sound will present highlights of the Regulations for Light, Medium and Heavy-Duty Vehicles under Advanced Clean Cars II (ACC II). In July 2023, Connecticut became the latest state to initiate adoption of the Advanced Clean Cars II rule, which will benefit society by requiring manufacturers to increase sales of electric and other zero-emission models within the state over time, culminating with 100% of new sales being ZEV in 2035.

2:30 – 3:00: Daphne Dixon, Co-founder and Executive Director, Live Green Connecticut and Director, Connecticut SWA Clean Cities Coalition, will present about Zoning for EV Readiness, a must attend for municipal decision makers.

Networking and Car Show 3:00-4:30: Enjoy beverages and food at the hotel bar while networking with other guests, and head outdoors to the lot adjacent to Hotel Marcel’s Superchargers to enjoy the car show while networking with EV owners that are members of Tesla Owners Club of CT, the EV Club of CT and the Westport Police Department.

CT Hits 36K Registered EVs As Of July 1

We have not yet received a file from the DMV in response to our Freedom of Information Act Request. This information is pulled off the public web.

There are 2 numbers out there. One is from DEEP and it is 36,269 registered EVs. Atlas Public Policy has updated its dashboard and cite the number of registered EVs as 35,884. Both DEEP and Atlas source the information from DMV. It looks to me like DEEP is including electric motorcycles and the handful of fuel-cell vehicles that are registered here. Atlas clearly is not.

Please keep in mind that the data are net registrations, not sales. Net registrations include new registrations over the past 6 months (including people moving into the state who already own an EV), plus previously registered vehicles, less vehicles that have turned over (sold, donated, junked, or owners left the state). Consequently, you will see examples of discontinued vehicles in these charts, a few of which have a fair number of lingering registrations.

Fuel Type

The market continues trending toward fully electric Battery Electric Vehicles (BEV). The shift appears gradual in a trend line, which is because each new number is on top of an existing base. BEVs now account for 63% of EV registrations, up from 60% one year ago.

EVs by Make

The number of registered EVs by make are in the photo at the top of the post. Make is not the same as parent company (e.g. Chevrolet vs GM, Jeep vs Stellantis).

Tesla still retains a commanding lead with 14,408 or 40% of all EVs and 64% of BEVs. Tesla share of overall EVs is right at where it has been for years, while its share of BEVs is a little lower reflecting increased competition.

The second most widely registered moniker is Toyota with 4301, followed by Chevrolet (2204), Jeep (2078), Ford (1822), Hyundai (1817), BMW (1664), and Volvo (1393). All other makes are under 1000 and there is quite a long tail.

Model

There are a total of 111 different models in the dataset. This is summarized to the model level and does not separately break out different trim levels within model. Due to this large number, the graphic below is just an excerpt. Below are some of the manufacturers displayed separately.

Tesla

The Model Y is the fastest-selling EV out there by a mile and it has almost caught up to the Model 3 in terms of net registrations. The Y and the 3 have clearly taken share from S and X sales. There are still a few Roadsters hanging on.

Toyota

Toyota surpassed Chevrolet, following the cancellation of the Volt and the introduction of the RAV4 Prime, to be the second most widely registered marque. Toyota’s new BZ4X has yet to make much of an impact. The chart separately shows the Prius Prime and its progenitor, the Plug-in Prius, which was Toyota’s first plug-in vehicle. It looked like the original Prius and was a very low-range PHEV. The 2 units labeled RAV4 are the all-electric RAV4 that was built about 10 years ago as a compliance car (using a Tesla powertrain). There weren’t that many built and very few of them made it out of California. There are also 21 Prius vehicles in the file where the model isn’t noted. That is just life with these files.

Chevrolet

Chevy, at one time the most widely registered make, has slipped to number 3 with 2240 registered EVs, barely above Jeep. The Bolt finally overtook the Volt which was canceled in 2019. GM had a hit with the recently introduced EUV version of the Bolt. The Bolt was recently canceled by GM, but in the face of consumer outcry, it was announced that the model will be coming back using the new Ultium platform. No date is yet announced. Chevy has upcoming BEV versions of the Silverado pickup (fall 2023), Equinox SUV (spring 2024), and Blazer SUV (spring 2024).

Jeep

Jeep places fourth with 2078 registrations. Most of these are the Wrangler PHEV. The Grand Cherokee is also a PHEV. Stellantis has developed a new EV platform for future vehicles.

Ford

Ford, and its highly visible CEO Jim Farley, has been aggressive in pivoting toward EVs, as well as open about the challenges it presents for a legacy automobile manufacturer. He has made some big moves, such as the controversial Ford-e program to push dealerships to focus on EV sales and inking a deal with Tesla to access its Supercharger network as well as moving toward NACS connectors for Ford vehicles beginning in 2025. Ford’s recent vehicle efforts have been the launches of the high profile Mustang Mach-E and F-150 Lightning BEVs, extending 2 of the company’s iconic brands into electric propulsion. Ford has also recently refreshed its Escape PHEV, though the vehicle has not caught on and only registers 131 registrations after 4 years.

Hyundai

The Ioniq 5, a well-received recent entry, has quickly climbed to the top of the Hyundai registrations. Its newest entry, the Ioniq 6, has only recently begun shipping.

BMW

BMW was one of he earliest of the legacy manufacturers to build EVs, starting with the somewhat stubby i3 and its REx range extender variant with a small gasoline engine. The REx is not a true PHEV. The feature is intended to enable you to get to a plug. Since then, BMW introduced PHEV versions of some of its popular models, with the X5 having gotten the most positive reception. More recently, the company has debuted BEVs with ~300 miles of range, the i4, i5, i7, and iX.

Volvo

Volvo entered the EV space by making PHEV versions of some its popular ICE vehicles but has since begun manufacturing BEVs. The XC40 and C40 are the first of the BEVs. Since then, it has announced the EX30 compact SUV and EX90 SUV. The other models below are PHEVs.

Polestar

Polestar is Volvo’s corporate sibling, both owned by the Chinese company Geely, dedicated to manufacturing only electric vehicles. The company’s main entrant to date is the Polestar 2, an upscale sedan. The Polestar 1 is a high-performance PHEV sportscar that was discontinued in 2022. It was very expensive and never intended as a mass market entry. To the best of our knowledge, it had the longest electric range of any PHEV ever manufactured at 58 miles. The company has now introduced the Polestar 3, an SUV that will begin deliveries in the second quarter of 2024.

Nissan

Nissan was an early EV-mover with its Leaf. The numbers for that vehicle haven’t moved much in years. Now the company has introduced only its second EV, the SUV Ariya.

Rivian and Lucid

These 2 companies are the first of a new wave of EV-exclusive manufacturers that are using a direct sales model like Tesla. Deliveries began last year. The R1T is a pickup. The R1S is an SUV that uses the same frame as the R1T. The EDV with only 2 vehicles is the Electric Delivery Van the company is producing for Amazon, which is a part owner of Rivian. Lucid makes a very expensive sedan that in its longest-range trim level exceeds 500 miles.

Volkswagen

This is the final manufacturer that I am breaking out. The E-Golf is a discontinued model. The ID.4 was VW’s pivot to its new platform. The ID.3 was a success in Europe. This small vehicle was not offered in the USA. VW has had struggles with software and CEO turnover. The ID.4 hasn’t generated a lot of momentum since deliveries began at the end of 2020.

Tesla Store to Open on Tribal Land in CT

Tesla, frustrated for years by the legislature in its attempts to obtain permission to open stores in Connecticut, is now opening an outlet where the state rules don’t apply: the Mohegan Tribal land. Tribal land exists outside state jurisdiction and is subject only to federal law.

This tactic has been previously used by Tesla in New Mexico, where it has opened 2 outlets on tribal land, and in New York, where it has announced an agreement to build on Oneida Nation land about 20 miles east of Syracuse. New York has a limited number of Tesla stores, but this came about via a negotiation with the dealerships. The franchise laws there are still in place. This limited exception arrangement applies only to Tesla (i.e. not Rivian or Lucid) and caps the store count. Tesla has been chafing at this limit for a long time. Every Tesla store or gallery in NY is in New York City, Westchester County, or Long Island. The entire upstate region has been unserved.

The new Tesla facility, to be located at a former Victoria’s Secret outlet at the Mohegan Sun Casino, will sell and deliver vehicles. Test drives will be available. Renovation of the space is set to commence imminently and should be finished at some point this fall. Deliveries will begin before the facility is completed, and we will publish an update when that information is finalized. It is not a service-center.

Mohegan Sun is located about 44 miles from Hartford, 54 miles from New Haven, and 93 miles from Stamford. Stamford is the heart of Fairfield County, which is Tesla Central. And that is the limitation of opening on tribal land – it is not near the big population centers. Nonetheless, it will make a material difference for residents of the eastern part of the state. It is our expectation that Mount Kisco will remain a delivery option for customers in western CT. We are also waiting to hear the word on whether deliveries to CT customers will be enabled at the forthcoming Chicopee, MA location (10 miles over the state line off I-91. It will be a while before that large facility is built.)

A sales and delivery facility on tribal land does not mean that the company will stop its efforts to win the right to open stores in CT (a.k.a. direct sales). This could be viewed as planting a flag by Tesla, as the legislature has not acted in the interests of its constituents, over 80% of whom support allowing direct sales. On the other hand, the facility will open and the dealers will see that the world isn’t coming to an end. (A lengthier discussion of direct sales, following the Transportation Committee’s failure to raise the direct sales bill in the 2023 legislative session, can be found here.)

The obvious follow-on question is whether Rivian and Lucid will do the same thing. A lot of people come to these tribal casinos. It is good business for both parties.

According to the Mohegan Sun press release, Tesla will work with Mohegan to incorporate Tribal members and Mohegan Sun Team Members into its workforce development program.

We look forward to a future post about the new sales center when they have the grand opening in the fall.

Photo credit: Paul Braren

Post by Barry Kresch

Tesla Patrol Car Purchase Price Now Lower Than Ford Explorer ICE Police Vehicle

In 2019, when the Westport Police purchased a Model 3 for use as a patrol car for $52,000 vs. $37,000 for the incumbent gasoline-powered Ford Explorer, it was a good deal. But it had to be proven, as some were skeptical that the savings would be significant enough to overcome the $15,000 purchase premium. In our analysis, we found that when factoring in savings in fuel, maintenance, customization, and expected vehicle life, the Model 3 is projected to save over $50,000 over a 4-year period. The purchase price differential was recouped in the first year. That detailed analysis is here. Fast forward a few years, however, and things have really changed.

The law-enforcement version of the Ford Explorer, which comes with a few augmentations, such as a heavy-duty alternator, to be able to support the customization needs of the police, is now $47,000. The Westport Police expect delivery next month of their third Tesla and second Model Y, purchased this year, for which they paid $53,000. This new Tesla is eligible for Inflation Reduction Act incentives of $7500, making the acquisition price lower than the Ford.

The IRS code section 45W, clean vehicles for fleet incentives, applies to this vehicle. In 2023, obtaining the credit is a little cumbersome because an entity that does not pay taxes must file for “direct pay” to get the funds from the Treasury. This will become easier in January when the transfer provision goes into effect. The buyer transfers the tax credit to the seller and the seller gives the incentive as a rebate, deducted off the invoice price. This article describes the process for non-taxable entities.

The department buys the same Tesla vehicles that consumers buy. The Model Y that the police bought is the lowest-priced trim level – dual motor (AWD), standard range (279 miles). With continuing price-cutting by Tesla, that model, if bought today, goes for $47,740. At that price, it would also be eligible for a CHEAPR rebate of $2250. (CHEAPR rebates for fleet purchases are expected to be implemented within the next couple of months of this writing on 6/27/23.) The net purchase price for a Model Y will be $37,990, or $9000 less than the Explorer.

The Model Y now seems to be the EV of choice for the Westport Police, rather than the Model 3 due to the extra space. At the time the Model 3 was purchased, the Model Y did not yet exist. (The only other police department in the state with an electric patrol car is Wethersfield, which has a Ford Mach-E. The Westport PD also has other EVs for non-patrol duty uses, including these new additions.) A video walk through of a fully customized Model Y and the Mach-E can be found on the Club’s YouTube channel.

Increased Expectations for Vehicle Service Life

When we did the financial analysis in 2021, after the Model 3 had been in service for a year, we built an amortization schedule based on a projected 6-year service life for the Tesla compared to the historical 4 years for the Explorers. (After 4 years, the maintenance costs for the Explorers make it not cost-effective to continue using them as patrol cars.) Three years into the use of the Model 3, the police feel it is quite possible that the 6-year projection may be too conservative. The vehicle is holding up well. Maintenance costs are as low as forecast. The battery is in good shape (and they are monitoring it with Tesla-Fi). They intend to run with it as long as they can. Let’s say, and this may also be conservative, that the 6 years turns into 8 years. That means the capital cost of acquiring patrol cars gets cut in half.

How Is This Not a No-Brainer?

• Lower acquisition cost
• Lower fuel costs
• Lower maintenance costs
• Double the service life
• Better performance

Westport Police Add Electric Utility Vehicle and Electric Motorcycle to Fleet

Both vehicles were on display at the Westport Sunrise Rotary Duck Race fund raiser on June 24th as the department display the ongoing results of its efforts to reduce carbon emissions, as well as benefit from lower EV operating costs.

The photo at the top is the all-terrain utility vehicle. It looks rather like a golf cart, though designed for heavier-duty applications, including the winch on the seen on the front. This vehicle has the life we would all like to have, spending its days at Compo Beach, where it can be used on the sand if needed.

The vehicle is powered by 6 12-volt batteries. These are not lithium-ion. A charge lasts between 8-12 hours.

Vehicle interior.

Zero Electric Motorcycle

Photo is Westport Police Chief Foti Koskinas sporting the new Zero Electric Motorcycle (before he had a chance to change into his uniform). The Zero is a recent arrival and still has to be outfitted with decals and police lights. It will be used for parking and traffic enforcement. It replaces a Harley that was retired.

This stealthy bike has a 17.3 kWh battery, rated for a range of 183 miles city and 85 miles highway. Chief Foti states that those numbers are so far achieved in real world experience.

Besides these two new vehicles, the department has 2 Tesla patrol cars with a third on order, 2 Toyota Prius Prime Plug-in Hybrid, Honda Clarity PHEV, and a BMW i3 Battery Electric Vehicle – seven plug-in vehicles in all plus a Ford Interceptor conventional hybrid patrol car.

Court Rules in Favor of Rivian’s Motion to Dismiss; Plaintiffs File Motion to Reargue

Note: For those following this case, the docket number is AAN CV 22-6049137 in Superior Court, J/D of Ansonia, Milford. This is the link.

Update: Hearing scheduled for June 20 regarding plaintiffs motion.

June 20 Update: Court denies plaintiff motion for re-argument and sustains Rivian’s objection to plaintiff’s motion.

Rivian needs a license from DMV. Should they get that, and if there are no further appeals, they should then be in a position to begin renovating the site. The plaintiff has 20 days from June 20 to file an appeal if they so choose.

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Rivian seeks to open a service center in Shelton, though they also want to deliver new vehicles at the location. There would be no showroom and no sales activity. Shelton granted an approval for a facility to be located at 2 Mountain View Drive. Mario D’Addario Buick, along with TD Properties, the owner of the D’Addario property, filed a lawsuit to force the Town to rescind the approval.

On May 16, the court ruled in favor of a motion filed by Rivian to have the lawsuit dismissed. The court ruled that the plaintiffs lacked standing due to their arguments not being a zoning issue but rather a licensing issue, which is the province of the Department of Motor Vehicles. Zoning regulations are meant to protect the public interest and are not intended to address business competition. Furthermore, Rivian acknowledged that it cannot carry out any activities that may require a license until it obtains such a license.

On June 5, the plaintiffs filed a Motion for Reconsideration and Reargument. They contend that since D’Addario has a new car dealer license and Rivian does not, they are a protected class of business in this licentiate, and this amounts to illegal competition.

This is not a legal blog and we don’t know whether DMV will get involved or where this will go. This is an earlier post from when the initial lawsuit was filed. Our opinion, in general, is that the dealerships are trying to make it as difficult as possible for direct sales companies to open servicing facilities. We have seen this with Tesla in East Hartford and South Windsor, and now this episode with Rivian.

Tesla Leasing Customers Can Now Pick Up Their Vehicles in Milford

A shout out to Rich from the Tesla Owners Club for announcing this update. Customers who lease a new Tesla will be picking up their vehicle at Milford. To be clear, this does not apply to customers purchasing a vehicle.

This is franchise law related. The franchise laws that are being used by dealers to prevent Tesla and other direct sales manufacturers from selling directly were written so long ago that they don’t apply to leases. Way back when, leasing was not a thing, and the law does not address it.

Tesla has been doing leasing paperwork at Milford for several years now, but hasn’t delivered vehicles there. It sounds like there were some logistical hurdles, which have now been worked out with the Department of Motor Vehicles. No more temporary plates! Permanent plates will be on the new car.