The United States is entering another high-stakes battle over vehicle emissions standards, and this time, the pressure is coming directly from the automakers themselves.

Nearly every major manufacturer, represented by the Alliance for Automotive Innovation, has urged the Environmental Protection Agency (EPA) to reconsider strict tailpipe rules set to begin in 2027, warning that the mandates could raise costs, disrupt production, and outpace consumer demand.

The EPA’s upcoming regulations are designed to cut fleetwide passenger-vehicle emissions nearly in half by 2032 compared with 2027 levels. Automakers argue that while they’ve invested billions in electrification, the rapid timeline is no longer realistic given market conditions. With federal EV tax credits expiring and charging infrastructure still lagging behind demand, manufacturers say the rules could add unsustainable costs.

The industry’s position reflects a broader trend of questioning whether the U.S. is moving too fast to overhaul its vehicle mix. A new study has confirmed that EVs are cleaner than gas cars everywhere in the country, but that doesn’t necessarily mean consumers are ready to abandon gasoline overnight. Automakers want more time and flexibility, to make the transition profitable.

Adding to the uncertainty is a controversial move by the EPA to revisit its “endangerment finding”, the scientific basis for regulating greenhouse gas emissions. Without it, the legal foundation for tailpipe rules could collapse, opening the door to years of lawsuits.

California, however, isn’t backing down. State regulators are already drafting their own framework to maintain ambitious targets, outlining how to meet climate goals even if federal policy shifts. That rebuttal plan reflects the state’s long history of leading the nation on vehicle emissions standards. At the same time, the clash is intensifying: four major truckmakers have gone so far as to sue California over stricter rules, citing overreach and economic damage.

Audi

If the EPA softens its approach, automakers could lean more heavily on hybrids and incremental improvements rather than accelerating EV rollouts. That may buy the industry time but risks slowing progress toward national climate goals. However, if the rules stand, manufacturers face ballooning costs, potentially pushing more expensive cars onto buyers already dealing with inflation.

The next few months will reveal whether the EPA stands firm, compromises with industry, or sparks a lengthy legal and political fight. For consumers, the outcome could determine how quickly the cars in their driveways shift from gasoline to electric power.

Bentley has joined Porsche in pushing back its deadline for a fully electric future. Speaking recently, new CEO Frank-Steffen Walliser confirmed that the brand will extend the life of its internal combustion engine (ICE) models well into the 2030s, adjusting its Beyond100+ plan as market realities shift.

Related: Porsche EV Disaster: $6 Billion Wipeout Slams Volkswagen

Originally, Bentley pledged to go fully electric by 2030. That target was later delayed to 2035, and now the company has confirmed that Continental GT, Flying Spur, and Bentayga models will remain available with traditional engines and plug-in hybrids for the foreseeable future. Walliser noted that uneven EV demand across markets and the high costs of scaling electrification require a more flexible approach.

This decision mirrors Porsche’s stance of continuing to refine ICE technology while gradually electrifying its lineup. For Bentley, that balance is also a brand necessity, performance and refinement are central to its identity, and loyal buyers aren’t all ready to embrace full electrification.

Bentley

Bentley is no stranger to finding ways to preserve tradition while innovating. The company has built a reputation for bold exclusivity, whether through engineering or design. Just this month, Bentley turned heads by offering a stunning $68,000 paint fade, an intricate “Ombré” finish that takes nearly 60 hours to complete.

That willingness to push craftsmanship underscores why extending ICE models makes sense, as many Bentley buyers still want visceral engines paired with bespoke artistry.

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The move also reflects how Bentley values heritage alongside forward-looking strategy. Collectors recently had a reminder of the brand’s rarified past when an ultra-rare 1992 Bentley Val D’Isere wagon built for the Sultan of Brunei surfaced for auction, one of just 11 examples ever made. While the new ICE roadmap won’t replicate such coachbuilt oddities, it reinforces that Bentley thrives by blending exclusivity, scarcity, and staying power.

Even more mainstream models have become symbols of time-tested luxury. A 2009 Bentley Azure with just 1,800 miles was recently listed for sale, a reminder of how even “modern” Bentleys are cherished for their craftsmanship and performance. Extending ICE life ensures that more of these machines will join future collector lists.

Walliser emphasized that Bentley isn’t abandoning electrification. The brand still plans to launch its first EV in the coming years, but hybrids and ICE models will continue to play a large role until at least 2035. That gives Bentley time to refine EV tech, manage costs, and match demand in key markets like the U.S., China, and the Middle East.

The broader message is while regulators may push for aggressive EV adoption, Bentley, like Porsche, is betting that luxury buyers want choice. Keeping the ICE alive alongside new EVs lets the brand deliver both tradition and technology, even if it means the road to an all-electric future will take a little longer.

The Hyundai Ioniq 5 N is a brilliant EV, quickly becoming a reference point for electric performance. Its dual-motor all-wheel-drive setup delivers 601 horsepower in standard tune and 641 hp when N Grin Boost is engaged, backed by an 84 kWh battery. The result is a hot hatch/crossover that feels as precise as it is powerful, with a range of driving modes and chassis tuning that even German rivals have had to acknowledge.

In the US, that capability starts at $66,200 for the 2025 model year before incentives – an impressive car but hardly inexpensive. Now Hyundai has introduced a less costly version in its home market, a move that immediately raises the question of when American buyers might get a similar option.

2025 Hyundai

The new Ioniq 5 N Essential keeps the entire high-output powertrain, N-specific hardware, and core performance features of the standard model. The savings come from a careful reduction in non-critical equipment. Hyundai trimmed some comfort and luxury touches, focusing instead on key convenience and safety technology.

The Essential adds a new Parking Assist Lite package, which includes a Surround View Monitor, Blind-Spot View Monitor, Rear Parking Collision-Avoidance Assist, and Side Parking Distance Warning. Advanced driver assistance systems such as Forward Collision-Avoidance Assist, Lane Keeping Assist, Highway Driving Assist, and Navigation-based Smart Cruise Control remain standard.

Hyundai also expanded its Comfort Plus package across the lineup, now featuring second-row remote-folding seats. However, the Essential’s overall feature list remains streamlined by removing features such as the head-up display and intelligent headlamps.

Those changes reduce the sticker price by roughly two million won – about $1,500 – compared with the regular Ioniq 5 N, bringing the starting figure in South Korea to 74.9 million won, or roughly $54,000 to $55,000 after eco-friendly tax benefits.

James Riswick

Whether the Ioniq 5 N Essential reaches American showrooms is an open question. The current US-market Ioniq 5 N is sourced from Korea, so the supply chain would not need major adjustments to accommodate another trim. Still, the Essential is not a budget edition so much as a slightly leaner package. With Korean prices not directly translating to American sticker prices, the current price gap at home amounts to only a modest reduction, and similar savings in America would not significantly alter the car’s positioning.

Hyundai has not confirmed any export plans, but with the federal EV tax credit set to expire soon and competitive pressure in the performance EV space growing, a lower-priced Ioniq 5 N could fit neatly into the brand’s American lineup.

Hyundai

Launched for the 2025 model year, things didn’t go particularly well for the Volvo EX90. Yes, it's handsome, comfortable, and packed with safety kit in classic Volvo tradition, but the electric SUV’s software has proved troublesome. Things got so bad that one owner sued Volvo, and another deeply regretted trading in a Toyota for the new EX90. Various social forums are filled with similar complaints from other irate EX90 owners.

Hoping to put these setbacks in the past, Volvo has come out firing with the 2026 EX90. For such a new vehicle, it has received some significant updates, some of which may address the buggy software in earlier examples.

The new 800V architecture replaces the previous model’s 400V system, offering a number of improvements in the process. Heat generation during charging is reduced, while charging speeds have gone up. Also improving charging performance is Volvo’s own battery management software.

Volvo claims that just 10 minutes of charging adds as much as 155 miles of range. Furthermore, the 800V system delivers more power, improving acceleration. The EX90 already rips to 60 in 4.7 seconds, so it was hardly slow before this update.

“The EX90 now features our most advanced electric system, delivering faster charging and higher efficiency, so you can feel more confident and in control,” says Anders Bell, chief technology and engineering officer at Volvo Cars.

Volvo

The latest EX90 now updates to a dual Nvidia Drive AGX Orin-based core computer, and the SUV now has 500 TOPS (Trillion Operations Per Second) of computing power. Nerdy terms aside, it essentially means that safety and performance enhancements can now more efficiently be processed via data, software, and AI.

For owners of the 2025 EX90, there’s good news: A one-time free upgrade of the 2025 model’s computer will be available at a Volvo workshop.

“The additional computing power enables us to harness the power of AI, data and software to further enhance safety and overall performance of the EX90,” says Anders Bell. “This means we can provide our customers with advanced safety and driver support features, along with continuous improvements to the infotainment and battery management systems – all delivered seamlessly over the air.”

Hopefully, all of this means that the glitchy systems plaguing the original 2025 models will be a distant memory.

The following new features are also offered for the 2026 EX90:

• Connected safety alerts for slippery roads, hazards, or accidents
• Automatic e-call with Emergency Stop Assist (if the driver suddenly becomes unresponsive, for example)
• Expanded automatic emergency steering functionality in dark conditions
• Park Pilot assist for parallel parking
• New electrochromic panoramic roof, with glass transparency adjustment

Volvo didn't explicitly state whether all these features are standard or optional, but that will be confirmed when the 2026 model's configurator goes live.

Related: 2025 Volvo EX90 First Drive: Electric? Three rows? Luxury? Here's your choice

Volvo

The first EX90 model year didn’t turn out as planned, and besides scores of frustrated owners, Volvo will want to remedy any reputational damage as quickly as possible. The comprehensive updates applied to the 2026 EX90 promise to do that, but we’ll only be able to cast a final judgment on that once enough owners take delivery and have lived with the vehicle for a few months.

Despite its software issues, EX90 sales reached over 2,500 units in the USA by the end of August, a healthy increase over the 85 units sold over the same period last year. 

Pricing for the 2026 model is yet to be announced, although order books have opened. The 2025 version started at around the $80,000 mark.

Tesla once again finds itself at the center of controversy. A robotics engineer is suing Elon Musk's company after being hit by a robot and suffering severe injuries. The incident occurred at Tesla's manufacturing plant in Fremont, California. According to the lawsuit document accessed by The Independent, 50-year-old Peter Hinterdobler has filed a $51 million lawsuit against Tesla and FANUC, the robotics firm that makes the robot in question, after a severe workplace injury in the summer of 2023.

According to the complaint, Hinterdobler was rendered unconscious by a robotic arm, while he was helping dismantle the robot, which has since been taken off Tesla's Model 3 assembly line. According to the court filings, “The release involved both the robotic arm's own power and the force of an approximately 8,000-pound counterbalance weight.” This knocked Hinterdobler to the ground, causing major injuries and unconsciousness.

Hinterdobler said his medical treatment has cost more than $1 million, with $6 million more expected in the future. He's now seeking reparations to the tune of $20 million for physical pain, suffering, and daily inconveniences, plus $10 million to cover severe emotional distress, including ongoing psychological trauma, and another $1 million as lost wages. The suit further tallies $8 million for diminished future earning potential and $5 million to cover past and future loss of household services.

Hinterdobler has accused Tesla of not following safety protocols, claiming the robot was not in a designated area and wasn't safely de-energized and secured before allowing him to disassemble it. He further added that the company implemented new safety norms after the incident. The lawsuit claims Tesla was careless with training, supervision, and safety rules, ignoring industry standards meant to prevent such accidents. Hinterdobler also names FANUC in the lawsuit, blaming them for faulty design, poor instructions, and unexpected robot failure. The injured worker further added that despite his several requests to Tesla to share the video footage of the accident, the company denied it.

Tesla's Fremont plant has an annual capacity for up to 650,000 vehicles and builds Model Y, S, 3, and X cars. The factory has faced intense scrutiny. In 2023, the U.S. Equal Employment Opportunity Commission sued Tesla over widespread racism. This spring, Tesla paid out in a case from a Black staffer alleging racism. In August 2025, the former security director filed an explosive suit claiming shuttle-bus rapes, cocaine parties on premises, worker fistfights, and routine bigotry. This latest lawsuit just shows that Tesla's legal troubles are far from over.

Remember when Dodge sent off the Challenger and Charger SRT Hellcats in 2023 with Last Call models? It was a eulogy for Hellcat fans, but a party for dealers, with several markups employed by dealerships across America – a common sight among Dodge dealers.

Two years on, with the all-electric Charger Daytona already in its second model year, you can still find brand-new Hellcats waiting for homes. The recipe is as wild as ever: a 6.2-liter supercharged Hemi V8, well over 700 horsepower, rear-drive antics, and that unmistakable whine that sounds like trouble.

For anyone who isn’t ready to trade gas fumes for battery packs, these leftover cars are starting to look like genuine performance steal – especially the two-door Challenger.

Do a quick search on inventory listings on Cars.com, and you’ll see around 54 new Challenger SRT Hellcats still on dealer lots. The cheapest one is listed at about $75,000 – more than $10,000 below its original sticker price – and plenty of others are hovering around that same mark. A few crack the six-figure range thanks to dealer add-ons, but even those show noticeable discounts.

The Charger side is a rarer catch. Only eight new Charger SRT Hellcats remain, split between six Widebody models and two Widebody Jailbreaks. Most are holding close to MSRP (including options), but one example pops up at $87,759, which is roughly $9,000 under its window price. Considering how few high-horsepower V8 sedans are left in the market, that’s still a tempting number.

Dodge

With the electric version getting lukewarm reception from the Brotherhood of Muscle, Dodge isn’t leaving combustion behind completely. The new Charger already offers a SIXPACK version with the turbo Hurricane six for those who still want a combustion engine in the new-generation muscle car. And if the rumor mill is right, a fresh Hemi option isn’t far off. When that happens, the Hellcat era will officially be a memory.

So here’s the question: grab one of the last brand-new supercharged Hellcats now, or hold out for whatever the next gas-powered Charger brings? If you’ve always wanted a factory muscle car that’s equal parts absurd and iconic, this might be the best – and last – moment to make it happen.

Seyth Miersma

Ford is quietly developing a hybrid version of the S650 Mustang, according to multiple reports citing insider sources. While the Blue Oval hasn’t publicly confirmed the project, the news suggests the company is finally moving closer to electrifying its most iconic coupe after years of speculation.

The program, allegedly codenamed “S650E,” is said to be in active development, with early test mules rumored to be on the road. Whether this means a mild-hybrid system for efficiency or a more performance-oriented setup is still unclear, but the fact that prototypes exist at all is a major shift for a car that has always prided itself on being purely combustion-powered.

Motrolix/YouTube

The challenge for Ford will be balancing tradition with innovation. Just weeks ago, the brand reminded fans that V8 power is alive and well, with insiders confirming a new GT500 is coming in 2026 and the Mustang’s track programs are still central to its identity. At the same time, regulations and consumer demand are pushing automakers to find middle ground between raw power and cleaner tech.

A hybrid Mustang could offer both: lower emissions and fuel savings, while also using electric assistance to sharpen acceleration. It’s a delicate line to walk, but Ford has made it clear that Mustang won’t be sacrificed in its wider EV pivot.

The Mustang has always inspired creativity, from tuners to collectors. Just look at Trick Rides’ latest project: “Scorched,” the world’s first full carbon-fiber widebody 1969 Mustang, limited to only 20 units

Projects like this highlight the car’s enduring appeal across generations, and they show why Ford has to tread carefully. A hybrid S650 will inevitably face scrutiny from purists, but if done right, it could represent the same kind of reinvention that allowed the Mustang Mach-E to carve out a surprising niche in Ford’s lineup.

Ford

For now, the Mustang Hybrid remains unconfirmed by Ford, but the mere existence of development chatter signals how the brand is preparing for a changing market. A hybrid pony car could help Ford meet emissions goals without alienating enthusiasts who still want a V8.

And with Ford rolling out attainable lease deals on the 2025 Mustang this month, the message is clear: the traditional muscle coupe is alive and affordable today, but its future may be shaped by electrification. Whether the S650 Hybrid ultimately launches will depend on timing, costs, and how well Ford believes it can merge its most sacred nameplate with the realities of a new era.

The Jeep Gladiator has been part of the midsize pickup market since 2019, offering a truck bed with Wrangler-inspired styling and off-road ability. Fans and enthusiasts (including us) assumed that it would follow the Wrangler into plug-in territory.

The Gladiator 4xe was intended to share the Wrangler 4xe’s 2.0-liter turbocharged four-cylinder plug-in hybrid setup, combining a 17-kilowatt-hour battery with 375 horsepower and 470 pound-feet of torque. Early reports pointed to a late-2024 arrival, positioning the truck as Jeep’s third plug-in model after the Wrangler and Grand Cherokee.

That plan has now unraveled. According to a report from Automotive News, Jeep’s parent company, Stellantis, has told suppliers it will no longer move forward with the hybrid Gladiator, halting a project that once seemed like a natural extension of Jeep’s electrified lineup.

The supplier letter cited in the report frames the move as part of a broader realignment of Stellantis’ electrification strategy. Executives pointed to changing “propulsion preferences” and slower-than-expected demand for electrified pickups.

Sales figures for the Gladiator itself add context: US deliveries peaked at 89,712 units in 2021 but dropped to 42,123 last year. Stellantis has already canceled the all-electric Ram 1500 REV, opting instead for a range-extended “Ramcharger” variant slated for early 2026. The truck will pair a V6 engine with battery power, offering approximately 170 miles of electric range, and has a towing capacity of up to 14,000 pounds. Similar market concerns and cost pressures also led to the cancellation of plans for the Dodge Charger Daytona R/T EV.

In each case, the company has chosen to focus resources on models and powertrains it believes customers are more likely to buy.

Jeep

Jeep says the Gladiator will stay in the lineup with its current internal-combustion powertrain for now. The truck is powered by a 3.6-liter Pentastar V6 engine, producing 285 horsepower and 260 pound-feet of torque, paired to an eight-speed automatic transmission and part-time four-wheel drive.

Stellantis stated that funding is being redirected to “ensure the long-term growth of the Jeep Gladiator,” promising additional factory-backed customization and new powertrain options. That said, a Gladiator 392 has already been confirmed, with a 6.4-liter Hemi V8 roughly matching the canceled hybrid’s torque while adding nearly 100 extra horsepower. Towing capacity remains up to 7,700 pounds on base trims and about 7,000 pounds on the Rubicon.

GM, whose Chevrolet Colorado and GMC Canyon compete directly with the Gladiator, has not announced any hybrid or plug-in variants of its midsize pickups. For now, the field remains dominated by conventional gasoline power, with Stellantis signaling that its electrification efforts will be more selective than once planned.

Stellantis

At $244,400, the Mercedes-Maybach S680 4Matic is already the most expensive model in the German marque’s portfolio, and the only one to use a V12 engine. But as special as the “normal” Maybach S680 is, Mercedes knows clients shopping for such a car place great emphasis on exclusivity—enter the new Mercedes-Maybach V12 Edition, a celebration of the V12 and limited to only 50 examples for selected markets. Its unveiling at the historic Fort Michelangelo in Civitavecchia, Italy, underlines that this is not just any Mercedes luxury sedan.

Mercedes-Benz

Maybach’s history stretches way back into the early 20th century, and it became closely associated with the V12 engine when the Maybach Zeppelin was launched. This towering luxury car used the first series-produced 12-cylinder engine from Maybach. Both 7.0- and 8.0-liter versions of the V12 were produced for the Zeppelin, producing up to 200 horsepower and achieving a top speed of around 106 mph—both figures were remarkable for the period.

Today’s Maybach S680 still carries the V12 baton today, but everything else has changed. Now a 6.0-liter twin-turbo configuration, it produces 621 hp (over three times the power of the best Zeppelin) and 664 lb-ft of torque. This modern land yacht can reach 60 in 4.3 seconds, and the silky engine is barely audible as it gets there. For the new V12 Edition, the company quotes an output of 603 hp.

“The Mercedes‑Maybach V12 Edition is a limited release of just 50 cars, showcasing the brand's legacy,” said Daniel Lescow, Head of Mercedes-Maybach at Mercedes-Benz Group AG. “With roots tracing back to the early 20th century Maybach Zeppelin models, this edition celebrates our iconic V12 engine. It offers bespoke design through the MANUFAKTUR program, reflecting a tradition of combining advanced technology and exclusive style.”

The V12 Edition features Manufaktur Olive Metallic on the upper body, contrasted with obsidian black metallic lower down. A hightech Silver Metallic pinstripe completes the look, and it must be said that not many cars this side of Rolls-Royce would be able to pull off such a bold color scheme. It takes 10 working days to apply this paint finish, twice as long as the two-tone paint on the normal Maybach.

There is a bespoke Maybach emblem on the C-pillar, with the double-M design getting a chrome and gold medal. This medal proudly displays the number 12, a tribute to the hood ornament found on the Maybach Zeppelin DS 8. The gold medal ring is a 24-carat gold item, complete with diamond engraving. The extraordinary detailing extends to the medal inlay with its fine V-pattern engraving, inspired by the V cylinder layout.

Completing the look are five-hole forged wheels in Manufaktur Olive Metallic. 

Inside, the Edition 12 gets Nappa leather in Saddle Brown, also sourced from the Manufaktur division. High-gloss brown burr walnut trim creates a sense of old-school luxury, but there’s nothing old-school about the Maybach’s crystal clear digital displays.

The handcrafted steering wheel requires “hours” of work to assemble, while other unique touches include a diamond-quilted roof liner, also in Saddle brown. The embroidery is unique to this special edition, and there’s a “1 of 50” badge in the center console. Like the outside “12” badge, there’s an elaborate commemorative medal and “12” number framed by 12 golden circles inside, again paying tribute to the legendary V12. This feature alone requires seven working days of handcraftsmanship.

Robbe & Berking silver-plated champagne flutes with unique engraving, a key gift box, and a trunk mat with edging in Saddle Brown are further changes that are exclusive to this model.

Mercedes has taken a page out of Rolls-Royce’s book, whereby disclosing the price of such a grand vehicle is considered tasteless. We can safely assume that the bespoke finishes and much longer production time will add another $100k or so to the bill, if not more, which would make this a $350,000 car—and one of the most expensive cars in the world.

The select markets for the V12 Edition were not disclosed, so it’s not guaranteed that any of the 50 examples will make it to the United States.

This isn’t even the most exclusive Maybach special edition to be launched in 2025. Just last month, Mercedes unveiled the California-inspired Maybach S680 V12. Known as the Edition Emerald Isle, that one is limited to just 25 examples. 

If you think that these exclusive V12 sedans represent a farewell tour for the V12, think again: Mercedes’ CEO said recently that the V12 will survive into the 2030s.

Related: Mercedes CEO: The V12 Isn’t Dead Yet — It’s Staying “Into the 2030s”

In a surprise announcement, California Governor Gavin Newsom announced that the State is backtracking on an earlier pledge to revive the state's electric vehicle tax credits. The pledge was made in an effort to backfill the $7,500 federal EV tax credits set to expire at the end of this month.

During a news conference and public signing of six climate-related bills in San Francisco on Friday, September 19, Newsom stressed the need for California to counter the Trump administration's “environmental injury” to the state. However, EV credits won't be part of that; instead, they'll be used on beefing up the state's charging infrastructure.

“We can’t make up for federal vandalism of those tax credits,” Newsom said, per SFGATE. “There are billions and billions of dollars through 2045 in the cap-and-trade program that continue to make those infrastructure investments, but not the direct subsidies — that we cannot make up for — that were eliminated under the federal program.”

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According to data from the Alliance for Automotive Innovation, a lobbying group representing most major automakers, California is the leading state in the United States for electric vehicle (EV) adoption. In 2024, California accounted for approximately 27% of all EV sales in the country. This recent development is beneficial for EV manufacturers such as Rivian, Hyundai, and Volkswagen, who have previously urged state leaders to establish a $5,000 EV incentive to help mitigate the impact of the federal rollback affecting the state’s EV buyers.

During his remarks at the California Academy of Sciences in San Francisco, Governor Gavin Newsom criticized Detroit Big Three automakers, particularly singling out General Motors and its CEO, Mary Barra. He accused Barra and GM of “selling out” California by actively working with Congress to oppose the state’s 2035 ban on the sale of new gasoline-powered vehicles. This initiative, known as Advanced Clean Cars II, was previously estimated by the California Air Resources Board (CARB) to reduce greenhouse gas emissions by more than 35%.

Despite this setback, the governor’s office indicated that California might be able to revive its EV subsidy program next year. State officials are considering using funds from the state’s carbon trading initiative, which generates hundreds of millions of dollars annually for environmental programs.

Getty Images

Governor Newsom's September 19 announcement is a complete 180 from the pledge he made last year following the election, as the upcoming Trump administration made its intentions regarding electric vehicles clear. On November 25 last year, Newsom announced that California would reintroduce its former Clean Vehicle Rebate program if the then-President-Elect Trump followed through with plans to eliminate the federal EV tax credit. Previously, the program offered up to $7,500 to eligible state residents who met specific income requirements and wanted to purchase or lease an eligible EV. 

By the time it was phased out in 2023, it provided over 66,000 rebates to low-income consumers at a cost of more than $354 million. According to data from the California Air Resources Board, the program helped fund the purchase of over 594,000 vehicles, saved more than 456 million gallons of fuel, and helped remove more than 3.9 million metric tons of carbon dioxide equivalent (CO2e) from the air.

Hyundai

"Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay," Newsom previously said. "We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California. We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute."

With the federal EV tax credit set to expire on September 30, EV sales are already ramping up. According to the latest data from Cox Automotive's Kelley Blue Book, U.S. electric vehicle (EV) sales reached a new record in August, with 146,332 EVs sold, which indicates that EVs made up 9.9% of all new car sales during August 2025, the highest percentage to date. With the credit coming to an end, analysts believe that the current EV sales growth may be short-lived, and there could be some tough times ahead for fully electric cars in the U.S. 

“We’re going to have a whipsaw effect,” said ISeeCars executive analyst Karl Brauer, as quoted by the Washington Post. “There’s no such thing as a free lunch.”