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Today — 19 July 2025Main stream

Volvo Sued After EV Reportedly Accelerates Without Warning

  • Volvo faces a lawsuit over alleged safety issues in the electric XC40 Recharge SUV.
  • Plaintiffs say the EV surges and lurches during low-speed driving and gear changes.
  • Over 100 drivers joined the suit alleging serious safety flaws and hidden defects.

Volvo can’t seem to catch a break. Hot on the heels of an NHTSA advisory urging owners of various plug-in hybrid and electric models to stop using ‘B mode’ , aka One Pedal Drive, until a software fix is in place, the company is now facing a class action lawsuit over safety concerns in its all-electric XC40 Recharge.

Filed in the United States, the lawsuit alleges that the compact SUV suffers from serious defects, including unintended acceleration, that put both drivers and passengers at risk. More than 100 owners have joined the suit, which demands a jury trial and alleges that Volvo either knew, or should have known, about the problems.

More: Volvo Drivers Warned To Stop Using This Mode Until Urgent Fix Is Installed

At the center of the complaint is lead plaintiff Robert M. Becker, who argues that the XC40 Recharge can unexpectedly surge forward, lurch, or accelerate unintentionally. According to the filing, these incidents are most likely to occur during low-speed driving, when shifting gears, or while using the vehicle’s One Pedal Drive mode.

Becker contends that the defects pose a “substantial risk of accident, injury, or property damage” and that Volvo failed to take appropriate action.

Claims of Prior Knowledge

The lawsuit asserts that Volvo knew, or was reckless for not knowing about, the issue based on pre-release testing, consumer complaints (including for the mechanically-related Polestar 2), dealership service reports, internal engineering assessments, and data from the NHTSA. Despite this, the automaker is accused of downplaying or concealing the full extent of the problem. The complaint further claims that Volvo’s recall efforts were “piecemeal and unduly narrow.”

Lead plaintiff Robert Becker leased a 2024 XC40 Recharge on September 13, 2024 and claims to have experienced multiple instances of the vehicle surging and lurching during normal operation. Less than a month after having the electric SUV, he had to take it to a Volvo dealership to be diagnosed and repaired.

 Volvo Sued After EV Reportedly Accelerates Without Warning

Volvo’s Recalls

The lawsuit points to two recalls issued by Volvo in the US. The first involved a software fault that could lead to a sudden loss of propulsion in XC40 Recharge models, but according to the complaint, it failed to resolve deeper control logic flaws. A second recall targeted 2021–2022 models due to the risk of water entering the accelerator pedal sensor harness. Plaintiffs argue that this recall was too narrow, leaving similar defects in other vehicles unaddressed and failing to correct the core issue.

Review: New Volvo XC40 Recharge P8 Guns For Tesla’s Model Y

Becker is suing Volvo for violations of the Consumers Legal Remedies Act, the Unfair Competition Law, False Advertising Law, fraudulent concealment, and unjust enrichment. Plaintiffs are seeking a mix of compensatory and punitive damages, as well as restitution, disgorgement, and injunctive relief aimed at correcting the reported defects.

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Porsche’s Next Electric SUV Could Be The Most Controversial One Yet

  • Porsche is developing a Cayenne EV with more power than the Turbo E-Hybrid.
  • Prototypes have revealed the SUV will share design similarities with the Macan EV.
  • The new SUV is expected to tow up to 7,716 pounds despite being fully electric.

Building an attractive SUV is no small task. Yet Porsche pulled it off with the first-generation Macan, especially after its mid-cycle refresh. It struck a rare balance, athletic, upscale, and genuinely easy on the eyes.

Unfortunately, the company seems to have taken a different direction with the all-electric Macan. The new EV trades in the sleek, understated styling for something far less elegant. Now, it looks like the larger Cayenne could be next in line for a similar design overhaul.

Read: Porsche’s New Electric SUV Is Smashing Records Before It Even Reaches Showrooms

An all-electric version of the Cayenne is well into development and could break cover by the end of the year. Like the Macan EV, the electric Cayenne will be sold alongside the current ICE-powered model, but will look quite a bit different. As recent spy shots have revealed, it will share design similarities with its smaller siblings and may end up looking a lot like these renderings.

A Familiar Shape, Reimagined

These images, put together by Kolesa, are based on recent prototype sightings, offering a glimpse of the new model. Obviously, as all electric Cayenne prototypes seen up until now have been covered in camouflage, including one recently showcased in the UK, it’s difficult to predict some of the finer styling details accurately.

 Porsche’s Next Electric SUV Could Be The Most Controversial One Yet
Illustration Kolesa
 Porsche’s Next Electric SUV Could Be The Most Controversial One Yet
SHProshots

Nevertheless, these renderings do accurately show the production-ready headlights of the new model, the triangular intakes below the lights, and a large grille towards the base of the bumper, complete with adjustable vertical slats.

And That Rear…

The rear end, much like that of the Macan EV, might prove divisive. It’s expected to adopt narrow LED taillights connected by a full-width light bar, a familiar trait among recent Porsche models. The tailgate design seems fairly plain, and the blacked-out section of the bumper doesn’t do much to elevate the look. Overall, it’s a rear-end that may struggle to win fans.

 Porsche’s Next Electric SUV Could Be The Most Controversial One Yet
SHProshots

Our spies have also given us a look inside the new Cayenne EV, revealing a high-tech cabin where the spotlight falls on a total of four screens. The layout blends familiar Porsche design elements with a few new touches. The dashboard features a curved, non-touch display for the gauges, flanked by two touchscreens, one in the center and one in front of the front passenger, housed under a single glass panel to create the impression of a continuous widescreen.

Unlike the Macan, the Cayenne adds a fourth display on the lower console for climate and seat controls, with only a few physical controls, including temperature toggles and a thumbwheel for volume.

Performance to Match the Badge

 Porsche’s Next Electric SUV Could Be The Most Controversial One Yet
Illustration Kolesa

What the new Cayenne might lack in exterior charm, it’s likely to make up for in performance. Porsche says the Cayenne EV will use an enhanced version of the 800-volt PPE platform, with upgrades that may boost performance and range beyond what’s offered in current models.

Early reports suggest it will surpass the 730 horsepower delivered by the current Cayenne Turbo E-Hybrid. It’s also expected to offer serious towing muscle, with a maximum capacity of 7,716 pounds (3,500 kilograms).

The new Cayenne EV is expected to be officially unveiled later this year, with global sales to follow shortly after.

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John Halas contributed to this story.

This Featherweight Motor Packs More Power Than Most Supercars

  • Yasa’s new axial flux motor weighs 13.1 kg and produces an incredible 738 hp.
  • The British-based company is a wholly owned subsidiary of Mercedes-Benz.
  • It supplies electric motors to brands such as Mercedes, Lamborghini, and Ferrari.

A new chapter in electric motor design may be underway, and it’s being written in the UK. Yasa Motors, based in Britain and owned by Mercedes, has developed a new electric motor that sets a new benchmark for power density. While there’s no official timeline for production yet, it’s a safe bet that upcoming Mercedes-Benz EVs will be among the first to take advantage of the breakthrough.

The numbers read like something out of a science fiction novel. Yasa claims that the electric motor weighs just 13.1 kg (28.8 lbs), yet it produces a remarkable 738 hp, a figure we usually associate with supercars. That easily outperforms the Equipmake HPM-400 motor from Australia, which is considered the most power-dense in the world, delivering 536 hp and weighing in at a much heftier 40 kg (88 lbs).

Read: This Concept EV Will Morph Into An AMG Super Sedan You Can Buy

Yasa’s new motor also makes the Dark Matter electric motor presented by Koenigsegg a couple of years ago seem relatively portly. That motor weighs in at 39 kg (86 lbs) and produces 800 hp and 921 lb-ft (1,250 Nm) of torque. It’s set to debut in the Gemera, but the contrast in weight suggests a shift in how high-performance EV components are engineered.

 This Featherweight Motor Packs More Power Than Most Supercars
Mercedes-AMG GT XX Concept

Speaking with Autocar, Yasa revealed that its new industry-leading motor does not contain any exotic materials like cobalt-iron laminations and litz wire. “What we’ve achieved here is not just a number – it’s a demonstration of scalable, production-ready innovation that raises the bar for electric motor design. And the most exciting part? We’re just getting started,” said Tim Woolmer, Yasa’s CTO and founder.

Yasa Motors Headed for the Road

The most recent car to premiere with Yasa motors is the Mercedes-AMG GT XX concept. It uses three axial flux motors to deliver more than 1,341 hp (1,000 kW) and will soon spawn a production model. Yasa also supplies Lamborghini with electric motors, including the Revuelto and most recently, the Temerario, the successor to the Huracan.

That setup uses two axial flux motors on the front axle, each producing 148 hp (110 kW) and 221 lb-ft (300 Nm), and weighing 17.3 kg (38 lbs) apiece. Impressive, but still overshadowed by the output-to-weight ratio of Yasa’s latest design.

 This Featherweight Motor Packs More Power Than Most Supercars

This Is Who’s Actually Reserving Slate’s New EV

  • The electric startup says it has received 100,000 refundable reservations for the truck.
  • Slate claims the affordable truck appeals to young professionals and older drivers alike.
  • The electric truck is also proving popular among newly licensed teen drivers.

An electric truck priced under $20,000 sounded almost too good to be true. And, as it turns out, it was. When startup Slate Auto initially announced its all-electric pickup, the promise of sub-$20,000 pricing grabbed attention across the U.S. EV market.

But the company may have overlooked a key political shift: President Donald Trump’s campaign pledge to eliminate the so-called EV mandate, which signaled that the federal tax credit was on shaky ground. So, when it was confirmed the credit would be scrapped on September 30, it came as no surprise that Slate walked back its pricing commitment, stating the EV will instead be priced in the “mid-twenties.”

Read: Slate’s Affordable Electric Truck Just Got A Whole Lot More Expensive

Despite the adjustment, Slate isn’t backing away from its optimism. The new automaker still remains confident in the Blank Slate’s appeal. According to chief executive Chris Barman, it appeals to five very-specific groups of buyers. If Slate is to establish itself as a legitimate player in the EV space, then it’d better hope that these five groups do indeed buy it.

Strong Reservations, Cautious Optimism

In a recent interview with Sherwood News, Barman shared that Slate has already racked up 100,000 refundable reservations for the EV. A large portion of those, he said, are from “everyday Americans for whom it’s just an affordable vehicle and a lot of utility and value for the money.”

Additionally, Slate says it’s received plenty of interest from young professionals, who have “either just finished trade school or are just out of college.” According to Barman, they are “looking for value for the money” and love the customization element of the truck.

 This Is Who’s Actually Reserving Slate’s New EV

Who Else Is Buying?

New drivers are also showing the Blank Slate love. Backed by funding from Jeff Bezos, the vehicle is emerging as a practical option for younger drivers looking to buy their first car. According to Barman, parents “like the fact that there are only two passengers, it doesn’t have an infotainment for distraction, and it has really high safety standards.”

An interesting demographic where the Blank Slate is proving itself to be appealing is among “contemporary seniors.” Barman describes these as semiretired or retired individuals interested in an EV, but wanting a simpler driving experience than most other EVs. She added, “the fifth type that we see is a lot of people who are just auto enthusiasts. They want to just be able to trick it out.”

Of course, high reservation numbers don’t always translate into actual sales. Tesla’s experience with the Cybertruck showed how early enthusiasm can taper off. For Slate, the real test will come when production starts and deposits need to turn into deliveries, especially for early birds who were under the impression that prices would start from around $20,000.

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Rivian EVs Just Got Smarter But Apple Users Won’t Be Happy About It

  • The new navigation system combines the best elements of Rivian’s system with Google Maps.
  • This new system includes information about roughly 250 million locations around the world.
  • Rivian’s mapping can curate charging stops and provide real-time data on charging networks.

For years, Rivian has gone it alone with its infotainment system, refusing to add Apple CarPlay and Android Auto connectivity, much like Tesla. However, things are changing. Kind of. As of Tuesday this week, new Rivian models will come with a new and improved in-built navigation system using Google Maps technology.

Read: This CEO Just Called Out The Biggest Threat To EVs And It’s Not Trump

The update is not quite Android Auto, but it’s a step in the right direction. The news is not so good for iPhone users accustomed to using Apple Maps, however, and they’ll just have to get used to using Google.

Google Maps at the Core

Rivian says it has worked directly with Google to create a navigation system specifically designed to support its EVs. Thanks to Google, the new system includes real-time traffic and place information. It also supports reports made by the Google Maps community for updates like lane closures and accidents. Google Places has now also been incorporated, providing Rivian owners with information about roughly 250 million locations around the world, including details like opening hours, contact information, and reviews.

Importantly, the system retains all of Rivian’s in-built navigation features. These include the ‘range on arrival’ function that provides accurate range information depending on an owner’s driving style and whether they are using accessories, like a trailer. All Rivian models can also curate charging stops for the fastest-possible trip and will provide real-time data for compatible charging networks, including Tesla Superchargers and the Rivian Adventure Network.

Updates Beyond the Dashboard

All updates made to the infotainment systems of the R1T and R1S will be incorporated into the Rivian mobile app, making it easier for owners to manage navigation and settings remotely.

This isn’t the first time Rivian has rolled out a new Google feature to its vehicles. Late last year, it announced that it would add Google Cast. It’s unlikely that any kind of Apple CarPlay support will be added in the future, even though Rivian’s system does include Apple Music. By keeping its infotainment software in-house, Rivian says is able to better tailor the experience to suit its customers.

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Yesterday — 18 July 2025Main stream

Subaru Built A 338hp AWD EV That Launches Like A Hot Hatch On Caffeine

  • Subaru’s new Uncharted EV is smaller and more rugged than the Solterra crossover.
  • Three versions are available including Subaru’s first front-wheel drive model in years.
  • Cabin shares layout with the Toyota C-HR and includes a 14-inch touchscreen display.

It’s rare for Subaru to introduce an entirely new model lineup in the U.S., but that’s exactly what’s happening with the arrival of the Uncharted. As expected, it’s essentially Subaru’s take on the electric Toyota C-HR, with a design and feature set that leans more rugged than the Solterra, all in a more compact package.

Read: Subaru Trailseeker EV Is Faster Than A WRX STI But No One Knows If It’s A Wagon Or SUV

The Uncharted rides on Toyota’s e-TNGA platform and is powered by a 74.7 kWh lithium-ion battery across all variants. Subaru has confirmed three versions for the American market: the Premium FWD, Sport, and GT. The base model is notable for being the first front-wheel drive vehicle Subaru has offered in years. In contrast, both the Sport and GT feature the company’s signature Symmetrical All-Wheel Drive system with X-Mode.

A Front-Drive Subaru

The front-wheel drive model will pack 221 hp and, according to Subaru, should be able to travel over 300 miles (492 km) on a charge. Interestingly, the carmaker says it will only be sold in “limited quantities,” so it’s unlikely to be a member of the Uncharted family for long. Considering the EV’s rugged appeal, it’s likely that most buyers will prefer the all-wheel drive Sport and GT models anyway.

 Subaru Built A 338hp AWD EV That Launches Like A Hot Hatch On Caffeine

The AWD Models

The AWD Sport and GT models step things up with 338 horsepower and an estimated range of up to 290 miles (467 km). They can also reach 60 mph (96 km/h) in a remarkable 5.0 seconds, making them quicker than the previous WRX STI and the current WRX TR, which take 5.6 seconds to hit the same mark.

According to the brand, the Uncharted offers “impressive straight-line stability, handling, and grip on loose surfaces such as gravel, dirt, or snow.” Fittingly, it looks a little more trail-ready than the C-HR, sporting more rugged front and rear bumpers, as well as new headlights and taillights. Customers will be able to order the Uncharted with either 18- or 20-inch wheels. There are also low-profile roof rails.

Charging and Tech Details

All Uncharted models come standard with a NACS charging port. They support peak DC charging speeds of 150 kW, while an 11 kW onboard charger has been added for convenient AC home charging. Subaru notes that the EV also includes a battery preconditioning system and that the battery can be charged from 10-80 percent in 30 minutes.

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A Familiar Cabin

The Uncharted’s interior is mostly the same as what you’ll find in the C-HR. That means there’s a large 14-inch infotainment screen, a digital gauge cluster, and a horrendously ugly steering wheel. Key standard features of the Sport include a heated steering wheel, water-repellent upholstery, and a panoramic view monitor. The GT adds a panoramic moonroof, ventilated front seats, a smart rearview mirror, and a Harman Kardon audio system.

Subaru has not announced pricing details for the Uncharted, but it’s reasonable to assume that the front-wheel drive model will start somewhere in the low-to-mid $30,000s.

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This Could Be The Fastest Model Y Ever But Tesla Won’t Tell You

  • The second-generation Tesla Model Y Performance should deliver 510 hp.
  • A prototype was recently filmed lapping the Nurburgring in full camouflage.
  • The high-performance SUV is expected to debut later this year around $55K.

For many drivers accustomed to tame, underpowered daily commuters, even the base version of the Tesla Model Y can feel like a thrilling step up. But for those who want more than just a taste of performance, the standard Model Y doesn’t quite cut it. Fortunately, Tesla has something in the works for that crowd.

Read: New Tesla Model Y Performance Breaks Cover, Plaid Wheels And All

For several months now, the automaker has been developing a new Model Y Performance. It’ll follow the same basic recipe as the first-generation model and likely be equipped with the same powertrain as the current Model 3 Performance.

Testing at the Green Hell

Our spy photographers have snapped it testing multiple times around the world, and recently, a camouflaged prototype was seen out and about on the Nurburgring Nordschleife.

In a recent clip shared to Instagram by Wilcoblok and Teslaplaidtok, the prototype was captured exiting the pit lane and gradually merging onto the famed circuit. It was driven at a relaxed pace, offering no clues about its true performance potential.

Since Tesla hasn’t recorded an official lap time at the track with the current Model 3 Performance, it seems unlikely they’ll attempt one with the Model Y Performance either. If they did, a time somewhere in the eight-minute range seems reasonable.

Powertrain and Performance Specs

Like its sedan sibling, the Model Y Performance will use a pair of electric motors, which should combine to produce the same 510 hp and 554 lb-ft of torque. Due to the added size and weight of the Y, it won’t be quite as quick, but it should still run to 60 mph (96 km/h) in around 3.2 seconds. This would be a slight improvement from the old model’s 3.5-second time, making it the fastest version of the electric crossover ever.

Visually, this prototype looks like it has more aggressive bumpers than the regular Model Y. We can also see a large lip spoiler at the rear. Last month, a Model Y Performance was filmed testing without camouflage, revealing a distinctive rear bumper with two subtle diffusers.

We expect to see the new Model Y Performance premiere before the end of the year. Prices won’t be known until then, but it’s a safe bet that it’ll start at around $55,000.

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Baldauf

Koenigsegg Thinks You Won’t Trade A Rolex For A Fitbit So Why Drive An Electric Hypercar

  • Christian von Koenigsegg says the demand for an electric hypercar is “extremely low.”
  • The CEO compared EVs to “robots” that lack the emotion of high-powered ICEs.
  • The new Jesko-based Sadair’s Spear delivers 1,603 hp and can rev up to 8,500 rpm.

For more than two decades, high-performance car fans have looked to Koenigsegg for proof that extreme engineering and bold ideas still have a place in the modern automotive world. The company has helped shape the hypercar as we know it today, with a focus on intricate craftsmanship, wild designs, and roaring V8 engines.

Read: Koenigsegg’s Latest Hypercar Is A Track Monster Designed To Obliterate Lap Records

And while the rest of the auto industry leans hard into electrification, Koenigsegg remains firmly attached to the combustion engine.

That doesn’t mean the competition is standing still. Other brands are taking their own creative routes, from Cosworth’s high-revving V12s and V16s in the Gordon Murray T.50 to the hybridized muscle of the Bugatti Tourbillon. But Koenigsegg isn’t backing down. Its twin-turbocharged V8 continues to evolve, now tuned to produce 1,603 horsepower for the Jesko-based Sadair’s Spear.

No Plans for EVs Anytime Soon

During a recent interview with Top Gear, Christian von Koenigsegg made it clear that the company has no plans to release an electric vehicle. Thanks to EU regulations that allow small manufacturers to sidestep the upcoming 2035 ban on new internal combustion cars, it doesn’t need to pivot toward EVs just to stay in the game.

“The appetite in the market for this level of car, fully electric, is extremely low,” von Koenigsegg said. “So that’s one aspect. But also, [I’ve] kind of experienced electric cars myself for many years, and loving the responsiveness, the smoothness, how easy it is to live with it and all of this. But, after a while, if you’re a car enthusiast, you want to talk to the beast, right? You want to have a dialogue. It’s an argumentation. You want to hear how it’s feeling and in what mood it is.”

 Koenigsegg Thinks You Won’t Trade A Rolex For A Fitbit So Why Drive An Electric Hypercar

He described the emotional side of driving a combustion-powered car, adding, “You want the throbbing, the pumping, the heat, the sounds, the shifts, all of these aspects that just make it come alive. I would say an electric car is a bit more of a robot. This is a bit more of an animal.”

Koenigseggs Are Like Mechanical Watches

He then went on to compare what’s currently happening in the automotive industry to what happened in the watch industry. When digital watches became commonplace, some thought they would spell the end for mechanical watches. However, people still want and appreciate a hand-built mechanical watch, hence why they’re still so popular.

Koenigsegg’s cars are like mechanical watches. It doesn’t rely on robots to build them, and they are made up of thousands of precise mechanical parts that give each car a unique character, something that an EV cannot replicate. Long may this continue.

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Before yesterdayMain stream

New Model 3+ Isn’t What You Think It Its. It’s Better

  • Tesla is preparing to launch a long-range RWD Model 3+ variant in China.
  • New model combines a single rear motor with a larger LG NMC battery pack.
  • It’s expected to offer up to 497 miles of range on China’s CLTC test cycle.

Nowhere is Tesla facing tougher EV competition than in China, a market that has rapidly evolved into a hotbed of electric innovation. While the company maintains a commanding lead in the US, it finds itself contending with a far more crowded and fast-moving landscape in China.

Dozens of EV-only brands are racing to roll out new models at remarkable speed, constantly pushing the envelope in design, technology, and value. To stay competitive, Tesla is preparing to introduce a new version of the Model 3 in China, known as the Model 3+.

Read: Tesla Model Y And 3 Get Surprising Speed And Range Upgrade In China

Details first emerged when Tesla filed for a local sales license for this upcoming variant. The name might suggest something more performance-focused than the current Model 3 Performance, but that’s not quite the case.

Instead, this new version is expected to offer the longest driving range of any Model 3 to date. Further insight came through China’s Ministry of Industry and Information Technology (MIIT), which recently released data shedding light on what to expect from the Model 3+.

Rear-Wheel Drive, Upgraded Battery

For starters, the new model will be sold exclusively in rear-wheel drive guise. However, whereas the current entry-level RWD model in China has a small 62.5 kWh lithium-iron phosphate (LFP) battery from CATL, the Model 3+ uses a more expensive NMC battery from LG.

 New Model 3+ Isn’t What You Think It Its. It’s Better

Tesla already sells an NMC-powered Model 3 in the country, the Long Range version, but that model is only available with all-wheel drive. It’s equipped with a 78.4 kWh battery pack and delivers a CLTC-rated range of 468 miles (753 km). By combining the energy density of an NMC pack with the efficiency of a single-motor, rear-drive setup, the Model 3+ is expected to stretch its range even further.

It remains to be seen whether the Model 3+ will use the exact same 78.4 kWh battery as the Long Range AWD version, but it’s likely. Notably, Tesla already offers a Long Range Rear-Wheel Drive Model 3 in the US fitted with a slightly larger 79.7 kWh NMC pack, which adds weight to the possibility.

It’s understood that the Model 3+ will offer up as much as 497 miles (800 km) of range on the generous CLTC cycle, matching the longest range version of the Xiaomi SU7. We expect to see it released in the coming months and for more details to be provided then.

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EV Sales Rise, But One American Nation Is Slowing Progress

  • A total of 9.1 million EVs and PHEVs were sold globally in the first half of the year.
  • China continues to lead the charge with an impressive 5.5 million sales.
  • Sales rose just 3 percent in North America, mostly due to a 20 percent drop in Canada.

The global uptick in electric vehicle and plug-in hybrid vehicles continues, but the situation is, understandably, not uniform. Year-to-date sales of EVs and PHEVs have jumped in all major regions and there’s every chance that the momentum will continue through the second half of the year. However, with the US EV tax credit set to expire in just over two months, turbulent times may lie ahead.

It’s been revealed that through the first six months of this year, a total of 9.1 million EVs and PHEVs were sold globally. This represents a massive 28 percent gain from the first six months of 2024 and comes thanks mostly to surging demand for electrified vehicles in China.

Read: EV Sales Just Took A Turn That Should Worry Automakers Everywhere

Rho Motion says that this year, no less than 5.5 million EVs and PHEVs have been sold in the People’s Republic. Unfortunately, the analytics firm does not separate the two categories but bundles them up, so we don’t have a breakup of the mix.

 EV Sales Rise, But One American Nation Is Slowing Progress

What we do know is that it’s not just China where sales have surged this year. Through the first six months of 2025, 26 percent more EVs and PHEVs have been sold across Europe, hitting 2.0 million units. Last year, sales of EVs in Germany fell dramatically after the first full year without incentives, but they’ve rebounded strongly this year, jumping 40 percent year-to-date. New incentives for electric vehicles recently announced in the country could further this momentum.

Year-to-May electrified vehicle sales also rose 72 percent in Spain, 58 percent in Italy, and 32 percent in the UK.

JAN-JUN EV & PHEV SALES
RegionYTD-25Diff. vs 24
China5.5 million+28%
Europe2.0 million+26%
North America0.9 million+3%
Rest of World0.7 million+40%
Global9.1 million+28%
SWIPE

Canada drags down North America

North America is not performing as well. Sales of EVs and PHEVs are up by just 3 percent this year to ~900,000. Despite what you may think, this isn’t because of the US. Instead, sales have dropped roughly 23 percent in Canada after the nation paused EV subsidies earlier this year. By comparison, sales have grown by 4 percent in the US and by 20 percent in Mexico.

As the $7,500 federal EV tax credit will be scrapped in the US on September 30, Rho Motion expects to see an uptick in EV sales over the coming months, followed by a significant decline in the final quarter of the year.

 EV Sales Rise, But One American Nation Is Slowing Progress

You Might Pay More Even For An American-Made EV

  • Lucid acknowledges that all car manufacturers will need to increase prices in the US.
  • While the brand builds its electric vehicles locally, it has a large global supply network.
  • The automaker is strengthening its partnership with Panasonic for battery materials.

Even vehicles built in the United States aren’t immune to global pressures. Although every Lucid vehicle sold domestically is assembled on American soil, interim CEO Marc Winterhoff says that prices are still likely to rise, due in large part to tariffs introduced under President Trump.

While he stopped short of confirming that Lucid’s own lineup will definitely see sticker hikes, the implication was clear: American consumers should brace for costlier new cars.

Read: Lucid SUV Costs 30% More To Lease Than Sedan Despite Being Cheaper

During a recent interview, Winterhoff noted that the American car manufacturer is eager to localize more of its supply chain. One step it has taken is signing a deal with Graphite One to increase its supply of graphite that’s processed in the United States. Despite these efforts, the global nature of its supply chain will make the Air and Gravity more expensive to produce.

Tariffs Push Costs Upward

“For the American consumers, vehicles are going to be more expensive under the tariff regime,” he told Bloomberg Television. “There’s no other way around it. Yes, you can say you just need to localize. But, that still increases the cost as there’s a reason why the supply chain is so global because certain things are either not available here in the US, or are just very expensive, so you import them.”

He went on to point out that even when companies work to reduce dependence on imports, shifting operations to the U.S. often drives costs higher anyway. That leaves automakers with limited choices.

“[Even] if you change that, you still have higher costs here in the United States, which means manufacturers like us, or any manufacturer, have to increase prices. There’s no other way, unless you want everybody to be non-profit organizations, which then would lead to no innovation and no technology leadership. In the current global climate, that’s the last thing we want.”

 You Might Pay More Even For An American-Made EV

Shifting the Supply Chain

In a bid to reduce the impact of the tariffs, Lucid is deepening its relationship with Panasonic so it can source more of the raw materials for its battery cells from the US. Currently, much of the raw materials Lucid uses for its battery cells come from Japan and South Korea, but two and a half years ago, decided it needed to localize, thanks in part to advanced manufacturing production credits which helped to defray costs.

“We are working with Panasonic to further localize the supply chain for the cell,” Winterhoff added. “It doesn’t do you a lot of good if you manufacture here [in the US] but you still import the raw material which then subject to tariffs.”

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This BMW M3 May Be The Heaviest Yet But Also The Quickest Ever

  • BMW’s electric M3 sedan is expected to produce upwards of 700 hp from four motors.
  • The prototype sports wide arches, hinting at serious performance and aggressive styling.
  • Estimated curb weight is over 1,000 pounds heavier than the current ICE-powered M3.

The electric era is coming for just about every corner of the car world, and BMW’s iconic M3 lineup is no exception. An all-electric version of the high-performance sedan is on its way, marking a significant step for BMW as it enters the Neue Klasse generation.

This new model will be sold alongside the familiar gas-powered M3, and while it may have a tough time delivering the same visceral thrills, BMW M seems like the right team to take on the challenge of making an EV that’s genuinely engaging to drive.

Read: BMW’s Electric Super Sedan Could Arrive Sooner Than You Think

Numerous electric M3 prototypes are currently making the rounds across Europe, and this particular one was recently spotted near BMW’s facility at the Nurburgring Nordschleife. Seeing an M3 prototype charging is a little unsettling for purists – a bit like discovering your favorite bouncer knits in his spare time. Good for him, sure, but it does throw off the mental image.

This prototype, fully cloaked in camouflage, appears to lack the bulky body cladding seen on earlier test cars, giving us a much clearer look at the near-production-spec bodywork.

The shape of the nose is vastly different than the current M3 and reflective of BMW’s Neue Klasse design, something that’ll soon spread throughout the brand’s entire range of cars. There is a set of relatively small headlights connected seamlessly to blacked-out kidney grilles. This prototype also has a secondary grille lower down on the bumper for additional cooling.

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SHProshots

It’s the fenders of the electric M3, or the i3M as BMW might end up naming it, that stand out the most. They’re impressively wide, giving the car a broad, aggressive stance. The rear arches are especially muscular, and paired with the shape of the temporary taillights, they bring to mind the current BMW M5 in both proportion and attitude.

The Juicy Details

This tester also has a set of wheels that should make the production model. These wheels are wrapped in Michelin Pilot Sport tires and sit over a set of beefy, cross-drilled steel brakes. Spy shots from last month indicated that the electric M3 will likely weigh at least 465 kg (1,025 lbs) more than the current gas-powered model, so we wouldn’t be surprised if carbon ceramic brakes were available as an option, as they are on the current M3 and M4.

Powertrain details remain a bit of a mystery at this stage. The prevailing expectation is that the iM3 will feature four electric motors delivering a combined output of at least 700 hp. Interestingly, BMW has suggested that the setup could be pushed to over 1,300 hp, though it’s unclear whether that level of performance will make it to production.

Even at the lower estimate, the iM3 would be in the same league as the upcoming M5 and comfortably ahead of the Hyundai Ioniq 6 N, which produces 641 hp. In all likelihood, it will end up being the quickest production car ever to wear an M3 badge.

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SHProshots

Lucid Air Drivers Will Soon Be Passengers In Their Own Cars

  • Lucid’s hands-free driving assist will work on compatible divided highways in the US.
  • The update is arriving on July 30 for the Air and will launch on the Gravity later this year.
  • Vehicles need to be equipped with the DreamDrive Pro technology suite for $2,500.

The Lucid Air is already one of the best EVs on the market, combining luxury with performance in a way that legacy automakers have struggled to compete with. Now, Lucid’s suite of advanced driver assistance systems is getting a major update, bringing with it hands-free driving assist and lane change assist systems.

Read: This $110K EV Refuses To Let Its Owner In And That’s Not Even The Worst Part

For owners of the flagship Air Sapphire, that means they’ll soon be able to hand over the reins to computers to control one of the world’s quickest cars. Now that’s a scary thought.

These updates will be introduced through an over-the-air software update scheduled to roll out on July 30 for all Lucid Air models equipped with the DreamDrive Pro suite. This system makes use of a LiDAR, radar, visible-light cameras, surround-view cameras, and ultrasonic sensors to make driving that little bit easier.

Lucid says drivers will be able to use the hands-free driving feature and hands-free lane changes on compatible divided highways. However, it hasn’t specified what exactly makes a divided highway “compatible” for use with the system. The new features will be rolled out to the Lucid Gravity later in the year.

Several other car manufacturers have introduced hands-free driving modes for their ADAS systems, including Ford, GM, and Mercedes-Benz. Hands-free lane change features are also becoming more commonplace, and in the Lucid Air, drivers simply need to flick on the turn signal before the car itself will determine if it’s safe to change lanes. If it is, the car will smoothly glide into the next lane.  

 Lucid Air Drivers Will Soon Be Passengers In Their Own Cars

“The addition of these features to Lucid’s DreamDrive Pro offers a glimpse into the future that Lucid is building with the impressive capabilities of our software-defined vehicles,” Lucid’s ADAS and AD vice president, Kai Stepper, said. “With our in-house software stack, a comprehensive suite of 32 sensors, and regular OTA updates, we have a roadmap to continue to deliver significantly more functionality to our owners in the future.”

Lucid Air owners who didn’t opt for the DreamDrive Pro system may now regret their decision. Unlike Tesla’s Full Self-Driving system, which has recently cost upwards of $8,000, Lucid’s system is relatively good value at just $2,500.

 Lucid Air Drivers Will Soon Be Passengers In Their Own Cars

This Tiny Hatch Might Be Buick’s Fastest Way Into China’s EV Boom

  • SAIC-GM revealed the Gen-Z Explorer to mark their 28-year partnership.
  • It’s been reported that the EV can travel as far as 745 miles on a single charge.
  • 800-volt system enables 373 miles of range to be added in just 10 minutes.

To mark the 28th anniversary of their partnership, SAIC and GM have opted for a more grounded celebration, setting aside flashy supercars in favor of a concept vehicle called the Gen-Z Explorer, an electric hatchback aimed at the future of mobility in China.

While it may not offer the thrill of a sleek sports car, a production version, rumored to launch under Buick’s newly created Electra sub-brand, could become a significant model for the group in the Chinese market.

Read: Buick’s New Sub-Brand Teases Its First Sedan But It’s Not For Everyone

The concept was created by the Pan Asia Technical Automotive Center (PATAC) Design, a joint operation between the two automakers, and was unveiled earlier this week. It’s believed to be similar in size to Nio’s Firefly and stands apart from anything else in the Buick or GM lineup. That’s not necessarily a bad thing, as its clean, understated design could help it appeal to a broader range of buyers.

Unique Design Cues, Practical Intentions

Though there’s nothing particularly loud about its design, the Gen-Z Explorer does hide some showpiece features. Both the front and rear sections are reportedly embedded with thousands of micro LEDs capable of displaying images and messages. Look past the bright yellow and blue lighting, and you’ll also see that it has a three-door layout, unlike the Firefly’s five-door setup. A production version could easily add rear doors for practicality.

 This Tiny Hatch Might Be Buick’s Fastest Way Into China’s EV Boom
SAIC-GM
 This Tiny Hatch Might Be Buick’s Fastest Way Into China’s EV Boom

Powertrain Packs a Punch

According to Chinese media, the pint-sized SAIC-GM concept is packing some serious punch. It’s reportedly equipped with a new-generation powertrain that includes an electric motor at each axle, combining to produce 644 hp (480 kW).

That’s 3 hp more than the much larger Hyundai Ioniq 5 N and over 100 hp more than Renault’s potent new all-wheel drive 5 Turbo 3E. The Gen-Z Explorer can reportedly do 0-100 km/h (62 mph) in an impressive 3.8 seconds.

That’s not all. Its battery pack is said to have an energy density of 350 Wh/kg, and while we don’t yet know its capacity, the concept can theoretically travel 745 miles (1,200 km) on a single charge. It also has an 800-volt electrical system, allowing for 373 miles (600 km) of range to be added in just 10 minutes, as well as wireless charging.

No immediate plans for the car’s production future have been announced, but if it reaches the public roads, it will likely be sold through Buick’s new all-electric Electra brand in China.

 This Tiny Hatch Might Be Buick’s Fastest Way Into China’s EV Boom
Buick China concepts

Tesla Suddenly Wants You To Buy Now After Years Of Opposing EV Credits

  • Federal EV tax credits worth up to $7,500 will expire for new cars on September 30.
  • Tesla is promoting the deadline with homepage banners and direct marketing emails.
  • Ford adds free home charger and financing perks to boost sales ahead of the cutoff.

If you live in the US and want either a new or even a used electric vehicle, you have less than three months to buy one before things get much more expensive. Come September 30, the $7,500 credit for new EVs and the $4,000 credit for used EVs is set to expire. With President Trump’s One Big Beautiful Bill Act signed into law on July 4, automakers like Tesla and Ford are urging buyers to move quickly before the savings disappear.

Although Tesla boss Elon Musk has previously thrown his support behind the removal of the credits, the carmaker appears eager to ramp up sales as much as it can. The company’s homepage has been updated with a huge banner stating, ‘$7,500 Federal Tax Credit Ending’, and adding that shoppers need to take delivery by September if they want the savings.

Read: Ford Swaps Employee Pricing For A Deal That Might Actually Save You More

In addition, Tesla started sending out emails, telling consumers to ‘order soon to get your $7,500.’ Currently, it’s possible to buy a brand new Tesla Model 3 Long Range Rear-Wheel Drive for $34,990 with the credit, but after the credit is removed, the price will increase to $42,490, unless Tesla starts to discount it from October. Additionally, it’s possible to buy a Model Y Long Range Rear-Wheel Drive for as little as $37,490 with the credit. Exclude the $7,500 saving, and the price is $44,990.

The Cybertruck is included in the incentive as well. The full $7,500 credit currently applies to both the Long Range and All-Wheel Drive versions, dropping their starting prices to $69,990 and $79,990.

Ford Offers Perks to Stay Competitive

 Tesla Suddenly Wants You To Buy Now After Years Of Opposing EV Credits

Ford is also doing what it can to encourage sales. It has extended an offer for a complimentary home EV charger and installation from July 8 through to September 30. Last week, On top of that, Ford has rolled out a new “zero, zero, zero” financing deal: zero down payment, zero payments for the first 90 days, and zero percent interest for 48 months on select models.

“There’s never a better time to buy an EV than now,” said Stacey Ferreira, Ford’s head of US sales strategy, in a recent interview with Business Insider. “There are lots of incentives out on the marketplace, the tax credit is still there for the time being.”

With the tax credits set to expire, the push from automakers feels more urgent than generous. Are these final offers truly great deals, or just marketing wrapped in a deadline? If you’re considering an EV, now’s the time to weigh the savings against the pressure and decide if the timing works for you.

 Tesla Suddenly Wants You To Buy Now After Years Of Opposing EV Credits

EV Sales Just Took A Turn That Should Worry Automakers Everywhere

  • A significant decline in EV registration data has been reported across several carmakers.
  • Tesla’s U.S. EV registrations declined by 12 percent compared to the previous May figures.
  • Cadillac, Nissan, Honda, and Acura reported strong EV sales growth during the same period.

Electric vehicle sales in the U.S. haven’t just hit a plateau – they’ve declined. Despite years of growth and aggressive expansion from automakers, new registration data shows that EV sales in May dropped compared to the same month last year. Specifically, registrations fell by 5.9 percent, marking the second straight month of decline and pushing EV market share down as well.

In total, 99,053 new electric vehicles were registered in the U.S. during May. While some brands continued to post growth, others recorded steep losses. EVs made up 7.1 percent of all light-vehicle sales for the month, a slight decline from 7.5 percent in May 2024.

More: These Are The Best Selling EVs Of 2025

Elon Musk’s company continues to sell far more EVs than any other car manufacturer in the country. In May, 42,861 new Teslas were registered, far ahead of Chevrolet in second place with 8,389. However, whereas Chevy’s sales rose 122 percent, those at Tesla dropped by 12 percent. This perhaps doesn’t come as much of a surprise given how public sentiment about Tesla has cratered this year due, in part, to Musk’s controversial involvement in politics.

Other major car manufacturers reported decreases in EV registrations, too. At Ford, they fell 6 percent to 6,710, while at Hyundai, they were down a considerable 22 percent to 4,730. Registrations at Rivian in May also fell 25 percent, while BMW experienced a 21 percent drop.

 EV Sales Just Took A Turn That Should Worry Automakers Everywhere

Not every brand followed the downward trend. Some showed substantial growth, led by Honda with a dramatic 266 percent rise. Acura jumped 2,911 percent – and although that might seem staggering, it’s admittedly a glitch in the matrix since it’s compared to a much smaller sample. GMC rose 111 percent, while Cadillac and Nissan posted gains of 33 percent and 29 percent, respectively.

More Than Just Pricing

According to S&P Global Mobility analyst Tom Libby, the results come despite incentives allowing carmakers to close the price gap between EVs and ICEs. “The fact that EVs are not selling means they have other issues — the range, the charging infrastructure and the product portfolio,” he told Auto News.

Read: New EV Sales Are Down But Used EVs Are Making A Big Comeback

Sales of EVs surged earlier this year as consumers were worried that President Donald Trump would scrap the $7,500 federal EV tax credit imminently. However, they lulled in April and May. With confirmation that the program will be scrapped from October 1, it’s possible buyers will again rush to buy EVs that are eligible for the rebate.

 EV Sales Just Took A Turn That Should Worry Automakers Everywhere

Mercedes Made An Electrified CLA Wagon With Stars In The Roof

  • Two all-electric versions of the new model have been announced, with mild-hybrids to follow.
  • This new model is slightly larger than the outgoing CLA Shooting Brake and should cost more.
  • Mercedes says the CLA 250+ EQ Shooting Brake is good for up to 473 miles (761 km) on a charge.

As more automakers cram electric and gas-powered setups onto the same platforms, Mercedes has rolled out the latest CLA in both ICE and EV forms. The sedan showed up first, and now the Shooting Brake version joins the lineup. The original CLA Shooting Brake was one of the best-looking cars in the Mercedes-Benz range, but this new model can’t quite match it in the visual stakes. Thankfully, it looks better than the awkward second-gen CLA.

Changes made to the Shooting Brake start from the B-pillar and back. The roof has been extended and includes a full panoramic glass panel, while found at the rear are LED taillights, connected by a light bar. The new shape improves headroom in the second row by 1 inch (26 mm) and also increases cargo space to a generous 45.5 cubic feet (1,290 liters) with the seats folded away.

Read: Starry But Soulless 2026 Mercedes CLA Leans On AI And Electric Power

Compared to the old CLA Shooting Brake, the new one is 1.37 inches (35 mm) longer, 1 inch (25 mm) wider, and stands 1 inch (27 mm) taller with a 2.4-inch (61 mm) longer wheelbase. Like the old model, this new one can tow up to 3,968 lbs (1,800 kg) braked, although we suspect very few owners will ever hitch something onto it.

A Panoramic Roof With Personality

Mercedes is particularly proud of the car’s panoramic roof. It is made of heat-insulating safety glass with an infrared-reflecting and low-emissivity coating on the inside. The glass also includes 158 stars that can be illuminated alongside the cabin’s standard ambient lighting system. Owners can also opt for an electrochromic function that can change the glass from clear to opaque.

 Mercedes Made An Electrified CLA Wagon With Stars In The Roof

Electric Options Take the Lead

The German automaker has so far only detailed two electric versions of the new CLA Shooting Brake, as the 48-volt mild-hybrid ICEs won’t hit the market until next year. Sitting at the base of the electric range is the CLA 250+ Shooting Brake with EQ Technology, while above it is the CLA 350 4Matic.

Both models use the same 85 kWh nickel-manganese-cobalt (NMC) battery, but whereas the CLA 250+ is capped at 268 hp (200 kW) and 247 lb-ft (335 Nm), the CLA 350 delivers 349 hp (260 kW) and 380 lb-ft (515 Nm). Mercedes says the base model can hit 100 km/h (62 mph) in 6.8 seconds while the CLA 350 completes the sprint in 5.0 seconds. Both cars top out at 131 mph (210 km/h). Interestingly, the electric CLA uses a two-speed gearbox, ensuring there’s plenty of power on tap even at higher speeds.

Of more importance than acceleration is range. The CLA 250+ can travel up to 473 miles (761 km) on a charge under the WLTP cycle, while the CLA 350 is good for 454 miles (730 km). Both support DC charging of up to 320 kW, meaning upwards of 310 km of range can be added in just 10 minutes.

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Familiar Interior, for Better or Worse

The cabin of the new Shooting Brake is mostly identical to the sedan, which is a shame. That means it has the same uninspired dashboard that’s dominated by a single flat surface that can house as many as three screens, when optioned with the MBUX Superscreen. This dashboard juxtaposes the elegant lines you’ll find on the outside of the car, but big screens are all the rage nowadays, regardless of how silly they may look.

Mercedes-Benz has not yet shared pricing or a specific launch date for the new CLA Shooting Brake, though it’s expected to arrive in dealerships before the end of the year.

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Tesla’s Biggest Battery Partner Just Hit The Brakes On A Multi Billion Dollar Plan

  • Panasonic wanted to boost production to 30 GWh worth of EV batteries by March 2027.
  • The technology giant has been supplying Tesla with batteries since the first-gen Roadster.
  • Last year, Panasonic canceled plans to establish a third battery plant in the US.

Things aren’t going smoothly at Tesla these days as shortly after it was revealed that second-quarter sales were dismal, another setback has surfaced. Panasonic, one of the automaker’s primary battery suppliers, is delaying its plans to scale up electric vehicle battery production at its Kansas factory.

Read: Tesla Sales Crash Deepens As Rivals Eat Into Market Share

Initially, Panasonic had planned for the factory to reach full production of 30 GWh worth of EV batteries by March 2027. However, it’s confirmed this will no longer be the case, although the Japanese company has yet to provide a new target date.

Investment Slows as Demand Plateaus

Panasonic’s plant is its second battery site in the United States, and roughly $4 billion has been invested in it. Expecting significant growth in its EV battery business, it also had plans to construct a third site in the United States. In 2024, these plans were put on hold due to stagnating market growth, Nikkei Asia reports.

Tesla is likely partly to blame. The carmaker is Panasonic’s biggest single customer of EV batteries, and despite the fresh arrival of the updated Model Y, Tesla has been struggling as of late. Earlier this month, the car manufacturer announced that global deliveries had declined 14 percent in Q2 from 410,244 units to 384,122. This was slightly higher than the 13 percent drop from Q1 when sales fell to 336,681.

 Tesla’s Biggest Battery Partner Just Hit The Brakes On A Multi Billion Dollar Plan

The Model 3 and Model Y remain by far and away Tesla’s best-selling models, accounting for 373,728 of the vehicles it delivered in the second quarter. By comparison, the Model S, Model X, and Cybertruck accounted for just 10,394 combined sales.

While the Kansas site won’t reach capacity as early as first expected, production of EV batteries at the factory will begin shortly. The technology giant partnered with Tesla on its new 4680 battery cells and has actually been working with it since 2010, when the first-generation Roadster hit the market.

 Tesla’s Biggest Battery Partner Just Hit The Brakes On A Multi Billion Dollar Plan

Two Recalls Have Failed To Fix This Polestar Issue

  • The NHTSA has started to receive complaints from owners about ineffective software updates.
  • Polestar has recalled the 2 twice over the past 12 months due to rear-view camera issues.
  • The electric automaker has acknowledged that its recall has failed to resolve the fault.

As Carscoops recently revealed, 181 recalls were issued in the United States for rear-view camera problems, and it seems as though a new car is impacted by such a problem every other week. Earlier this year, Polestar issued two camera-related recalls of its own and as it turns out, one of the campaigns may not have actually fixed the fault.

According to a recall query opened by the NHTSA’s Office of Defects Investigation, Polestar first recalled 2021-2024 Polestar 2 models last year for rear-view cameras that may not engage when reverse is selected. Polestar’s fix was a software update in the infotainment display to free up enough memory for the camera’s image to be displayed.

Read: Brand That Thinks We Don’t Need Rear Windows Is Now Drowning In Reversing Camera Issues

However, the company’s solution wasn’t effective, and in April this year, it issued another recall for the Polestar 2, impacting a total of 27,816 vehicles. In this case, Polestar said a software update would ensure a high-speed signal connection between the Parking Assist Camera and infotainment display would always be maintained, rather than toggling on and off by request.

 Two Recalls Have Failed To Fix This Polestar Issue

It seems that this second update wasn’t enough to address the issue. The NHTSA says that on June 21, it started to receive complaints from owners whose vehicles have been updated as part of the latest recall, but continue to experience rear-view camera issues. In July, the ODI spoke with Polestar, who confirmed that the over-the-air software remedy indeed failed to correct the issue.

The 2 isn’t the only Polestar model impacted by rear-view camera troubles. In May, the carmaker announced that the 2025 Polestar 3 is also facing similar issues and doesn’t display the camera image when the SUV is placed in reverse. At the time, the company did not specify if the 3’s fault was caused by the same issues as the 2, but said it would develop an over-the-air update to remedy it.

 Two Recalls Have Failed To Fix This Polestar Issue

China’s EV Scandal Shows Just How Easy It Was To Cheat The System

  • Chinese audit reveals $121 million in EV subsidies given to companies that didn’t qualify.
  • BYD and Chery allegedly received millions for vehicles that failed to meet requirements.
  • China’s Ministry hasn’t confirmed whether misused funds have been repaid or deducted.

China’s electric vehicle industry has seen explosive growth in recent years, and much of that momentum has been fueled by generous government incentives. While this support has helped establish China as a global EV powerhouse, a closer look reveals that not all of the subsidies have been fairly or properly claimed.

Read: China Has Poured Over $230 Billion Into EV Industry, Study Finds

Even some of the country’s biggest names in the EV space, including BYD and Chery Automobile, have reportedly received funds they weren’t entitled to.

An audit of China’s EV subsidy program covering the years 2016 through 2020 uncovered that around 864 million yuan (roughly $121 million at current exchange rates) was distributed to automakers that didn’t meet the qualifying criteria. Chery, for instance, claimed 240 million yuan (about $33 million) for approximately 8,860 electric and hybrid vehicles that were not eligible for the subsidy.

Big Names, Big Numbers

Additionally, China’s Ministry of Industry and Information Technology has revealed that 143 million yuan (about $20 million) worth of subsidies were provided to BYD for just 4,900 cars. There’s no word on whether these subsidies have had to be returned to the authorities or if the excess amounts were deducted from recent payments, as reported by Bloomberg.

 China’s EV Scandal Shows Just How Easy It Was To Cheat The System

Subsidy System Open to Abuse

China launched its EV subsidy program in the early 2010s and provided as much as 60,000 yuan ($8,400) per car. This rebate was paid in bulk to manufacturers who could then use the discount to slash prices for customers. As it turns out, the program was rife for scams, and in 2016 alone, it’s reported that dozens of companies fraudulently claimed roughly 9.3 billion yuan (approximately $1.3 billion) in subsidies.

Government officials are keeping a watchful eye on the local EV market. Car brands have been urged to stop the ongoing price war and to stop using shady sales targets to boost volumes. It was recently revealed that many companies are providing new dealers to traders and dealers in bulk, who then register them so brands can record them as sales. These vehicles then hit the market as “zero-mileage used cars.”

 China’s EV Scandal Shows Just How Easy It Was To Cheat The System
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