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Jeep’s $65,000 Recon Is Surprisingly Fast, But Can It Outrun The EV Slowdown?

  • 2026 Recon is fully electric with dual motors, 650 hp and 620 lb-ft.
  • Trail-rated Jeep does zero to 60 mph in 3.6 secs, has 250-mile range.
  • Launches with $65,000 Moab trim: 33-inch tires, 9.1 inches clearance.

Jeep is taking another swing at zero emissions adventure with the 2026 Recon, the first fully electric, Trail Rated Jeep, one that packs sports car-level acceleration, and promises real off-road ability. But the timing might raise eyebrows.

With EV sales slowing, companies like Ram scrapping planned electric utilities and Jeep’s first EV, the Wagoneer S struggling for sales, is this the right moment to launch a $65,000 electric off-roader?

Also: The 2026 Grand Cherokee’s Biggest Surprise Is Hiding Under The Hood

The Recon range will expand in time but for now Jeep is launching with just one trim, the dirt-lovin’ Moab. It comes with a single motor mounted at each end of the 112.9-inch (2,870 mm) wheelbase platform, the pair together pushing out numbers that are strong, even if they don’t set any EV records.

What Powers Jeep’s Electric Trail Machine?

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The Recon delivers 650 hp (659 PS) and 620 lb-ft (841 Nm) of torque, which is 50 hp (51 PS) and 3 lb-ft (4 Nm) more than the priciest version of Jeep’s first US EV, the road-biased Wagoneer S that rides on the same STLA Large platform.

It also hits 60 mph (97 kmh) in a speedy 3.6 seconds and claims a 250-mile (155 km) range from its 100 kWh battery, compared with 3.4 seconds and 294 miles (473 km) for the Launch Edition Wagoneer S. But that inconsequential difference in acceleration, and rather more worrying range gap is the price you pay for genuine off-road chops.

Only the Recon gets Jeep’s Trail Rated stamp of approval, the one you’ll have seen on vehicles like the Wrangler, meaning it’s passed a series of tough tests to prove its ability to ford water and clear obstacles that would make a crossover cry.

Mud or Midtown?

To earn that Trail Rated badge the Moab features 33-inch tires and a 15:1 final drive at the rear for extra torque multiplication when things get messy. It has selectable locking differentials Selec-Terrain driving modes, including a Rock mode that’s exclusive to the Moab, and Selec-Speed Control to make light work of steep inclines or rocks.

The 100-kWh battery is protected by a full set of steel skid plates, and suspension components like large CV joints and half shafts have been beefed up to handle all that torque.

Unlike the solid-axle Wrangler, the Recon’s suspension is independent via short-long arm (SLA) at the front and integral link at the back. And it skips the combustion SUV’s vague recirculating ball steering for a modern rack and pinion setup.

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That bodes well for on-road comfort, where the Recon operates mostly as a RWD vehicle, but what about those all important off-road angles? A 33.8-degree approach, 23.3-degree ramp and 33.1-degree departure angle are no match for the new V8-powered Wrangler Moab 392’s 46.7, 24.5 and 39.8-degree stats.

Some of that can be chalked up to the 193.3-inch (4,911 mm) Recon being almost exactly the same length as a Wrangler, but riding on a 5.5-inch (140 mm) shorter wheelbase, and having far less daylight beneath its floorpan.

The Recon loses the ground clearance battle by a big margin, 9.1 (231 mm) inches playing 11.1 inches (282 mm) in the Wrangler Moab, and up to 12.9 inches/328 mm on other Wranglers.

Classic Jeep Design With a Modern Edge

 Jeep’s $65,000 Recon Is Surprisingly Fast, But Can It Outrun The EV Slowdown?

Still, that’s more trail ability than 99 percent of people will ever need, and at least the Recon looks the part. The design stays true to Jeep’s roots with a boxy stance, upright grille and four-square proportions.

The illuminated grille rings, flush door handles, and contrast roof options give it a modern edge without losing the heritage feel, buyers also getting the option to replace the standard dual-plane sunroof for an optional Sky One-Touch power top.

And yes, you can remove the doors, the swing gate glass and the quarter windows, for those really hardcore adventures without needing any special tools.

Try that in your Rivian R1S. Moab trim brings a few design tricks of its own, including tough-looking black coloring for the front and rear fascias, the fender flares, uniquer badge and an anti-glare hood graphic.

Jeep’s Biggest Screen

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The cabin sticks to the adventure theme, blending durable materials with forward-looking tech and looking nothing like the inside of a Wagoneer S. A horizontal dashboard layout and grab handle nod to classic Jeep interiors, but a 26-inch digital display area stretches across the dash made up of a 12.3-inch digital cluster and 14.5-inch touchscreen – the biggest in any Jeep – running Uconnect 5.

That screen’s generous dimensions should make it easier to see the pitch and roll mapping on the automaker’s Trails App, as well as checking out the camera views. And if you want to bring your own camera, a modular accessory rail is ready for your GoPro.

Related: Stellantis Spends $13 Billion To Revive Jeep And Dodge In America

Audio comes from a standard Alpine system, and Jeep has even relocated the speakers under the seats so the sound doesn’t vanish when you pop the doors off.

How Much Does It Cost?

The 2026 Jeep Recon EV will be built at Jeep’s Toluca Assembly Plant starting early next year, priced at $65,000 for the Moab trim. But expect that price to fall later as other trims, and less powerful motor setups become available – or just through massive discounts if the Recon proves as tricky to sell as the Wagoneer S.

No doubt, Jeep is taking a bold bet on a market that’s still figuring out what it wants. How do you rate the Recon’s chances?

 Jeep’s $65,000 Recon Is Surprisingly Fast, But Can It Outrun The EV Slowdown?

Sure, You Can Replace Ioniq N Brakes, But Only With Hyundai’s $6K Tool Or A $2K Locked Workaround

  • Ioniq 5 and 5 N need official software to replace rear pads safely.
  • Hyundai defends the system, citing safety and secure service access.
  • Right-to-repair advocates say it limits owners’ maintenance rights.

Maintaining your own car has long been a badge of pride for some and a financial necessity for many others. Swapping fluids, filters, or brake pads is part of the standard weekend maintenance ritual for countless drivers.

But for one Hyundai Ioniq 5 N owner, that sense of self-reliance recently hit a wall, or more precisely, a brake caliper. He discovered that replacing the rear pads on his EV wasn’t as simple as it used to be. Now, Hyundai has responded.

More: Apparently You Need Hyundai’s Permission To Change Your Own Brakes

It might seem odd that someone has already burned through their rear pads, especially on an EV, but it happened because the owner drove this car the way Hyundai wants owners to: hard and on the track.

When he tried to replace these pads, he learned that he needed to retract the electronic parking brake. That’s where this easy DIY job took a scary turn.

When Maintenance Gets Complicated

 Sure, You Can Replace Ioniq N Brakes, But Only With Hyundai’s $6K Tool Or A $2K Locked Workaround
Aftermarket J2534 Diagnostic Tool from DG Technologies

One way to retract the brake is to use Hyundai’s Global Dynamic System (GDS). That software and the hardware that goes with it can cost almost $6,000, as we’ve seen online. Don’t worry, though, there’s another option called the J2534 Diagnostic Tool, which Hyundai supports, as seen in an official document discovered by TheDrive.

According to the owner, Redditor u/SoultronicPear, the software costs $60 a week (or less on average for longer time periods) and requires the use of a J2534 adapter that can be found for around $2,000.

Hyundai currently approves only three options for this tool: the CarDAQ Plus 3, Bosch’s MTS 6531 and DG Technologies’ d-briDGe PRO, adding that, “under no circumstances do we recommend the use of a
non-approved J2534 device”. So be warned.

Credentials Required

More importantly, beyond that, using the tool requires special National Automotive Service Task Force (NASTF) authentication and a constant internet connection.

But here’s the kicker. Only certified repair shops or repair businesses are supposed to get access to that software. NASTF told the owner that “NASTF credentials are for use by qualified technicians, mechanics or locksmiths working in businesses providing repair or replacement services.”

Hyundai Speaks Up

Before publishing our first coverage of this issue, we reached out to Hyundai for comment. After the story went live, the automaker responded with the following statement to Carscoops:

“Hyundai is committed to supporting both our dealer network and independent repair facilities with safe, secure, and accessible service solutions. For vehicles equipped with electronic parking brakes, including the Ioniq 5 and Ioniq 5 N, the official repair procedure requires placing the rear calipers in service mode using either our Global Diagnostic System (GDS) or the J2534 application.

This ensures proper functionality and customer safety. Hyundai recently expanded access through an update to our J2534 application, enabling aftermarket users to perform functions previously restricted by the GDS secure gateway.

While authentication through NASTF is required for sensitive operations, this step helps maintain security and accountability. Our official dealer tool (GDS) is also available for purchase by anyone. Hyundai is actively exploring ways to make routine maintenance easier for all customers while upholding safety standards.

We appreciate the interest in DIY repairs and will continue working toward solutions that balance convenience with security.”

 Sure, You Can Replace Ioniq N Brakes, But Only With Hyundai’s $6K Tool Or A $2K Locked Workaround

Seeking more detail, we pushed Hyundai to clarify whether a skilled owner could realistically do the job at home. The company followed up with this explanation:

“DIYers can replace brake pads on the Hyundai Ioniq 5 and Ioniq 5 N, but it requires specific steps and tools. Because these vehicles use electronic parking brakes, the rear calipers must be placed in service mode using either Hyundai’s Global Diagnostic System (GDS) or the J2534 application with a compatible pass-through device.

Both tools are publicly available, though GDS is more expensive and J2534 requires NASTF authentication for secure functions. Without these tools, the job cannot be done safely, as manual retraction could damage components.

Hyundai is not restricting DIY repairs, in fact, recent updates have expanded access, and we continue to explore ways to make routine maintenance easier while maintaining safety and security.”


So, yes, it can be done. But unless you already own the specialized tools or have deep pockets, the process can cost about as much as a tired old hatchback from the classifieds.

For now, at least until a cheaper workaround surfaces (we’re looking into it, so stay tuned), the Ioniq 5 N’s rear brakes may remain one of those maintenance jobs probably best left to the professionals.

 Sure, You Can Replace Ioniq N Brakes, But Only With Hyundai’s $6K Tool Or A $2K Locked Workaround

China Plans To Limit How Fast Your Car Accelerates To 62 MPH At Startup

  • China’s draft rule could require cars to take longer to reach 100 km/h (62 mph).
  • Drivers would need to manually enable faster acceleration after every startup.
  • Regulation targets all passenger cars, but quick EVs would feel the biggest hit.

The electric car age has rewritten the meaning of quick, with even family runabouts now capable of supercar-style launches from a set of lights. What once belonged to exotic badges has become a party trick for mid-range sedans and crossovers alike.

Now China’s latest draft vehicle regulation looks set to spoil the fun, or at least delay it. Under a proposed update to the National Standard, every passenger car would need a default mode in which it takes no less than five seconds to reach 100 km/h (62 mph) at startup, unless the driver manually selects a quicker setting.

The draft title “Technical Specifications for Power-Driven Vehicles Operating on Roads” appears to be part of a broader safety and road behavior initiative in China. It is intended to replace the current GB 7258-2017 standard that didn’t impose such restrictions.

More: China Might Kill Electric Flush Door Handles With These New Rules

Section 10.5.4 of the new proposal states: “After each power-on/ignition of a passenger vehicle (excluding automatic engine start-stop), the vehicle should be in a state where the 100 km/h acceleration time is not less than 5 seconds.”

The default performance-restricting mode at startup could work much like the output-limiting Eco setting found in most EVs, managed entirely through software. Drivers could still switch to a faster mode, though they’d need to repeat the process every time they power on the car.

Europe has a somewhat parallel rule, requiring cars to have speed limit warnings, although those systems only alert rather than restrict.

 China Plans To Limit How Fast Your Car Accelerates To 62 MPH At Startup
Xiaomi SU7 Ultra

If approved, the rule would apply to all passenger cars in China regardless of powertrain, though it would most affect the growing fleet of lightning-fast EVs.

Models like the Xiaomi SU7 Ultra (1.98 seconds to 100 km/h), Zeekr 001 FR (2.02 seconds), Tesla Model S Plaid (2.1 seconds), and BYD Yangwang U9 (2.36 seconds) would all fall under the new restriction, even if only temporarily after startup.

Speed Warnings On Your Limo

A separate draft titled “Safety Specifications for Power-Driven Vehicles Operating on Roads” includes another speed-related rule, this time targeting longer passenger models.

Section 10.5.1 reads: “Passenger vehicles with a length of 6 m or more shall have an overspeed alarm function, capable of triggering an alarm via visual or audible signals when the speed exceeds the maximum permissible speed (the maximum permissible speed shall not exceed 100km/h), except for those with compliant speed limiting functions or devices.”

While most large SUVs and minivans stay below the six-meter mark, the rule could apply to stretched limousines. One such example is the previous-generation Rolls-Royce Phantom VII Extended Wheelbase, which measures 6,092 mm (239.8 in). Its successor, slightly shorter at 5,982 mm (235.5 in), would just avoid triggering the alarm requirement.

 China Plans To Limit How Fast Your Car Accelerates To 62 MPH At Startup
Rolls-Royce Phantom EWB

Kia Suddenly Pulls Its Tesla Model 3 Rival Right Before US Launch

  • The EV4 sedan was scheduled to arrive in the US in early 2026.
  • Kia had confirmed 58.3 kWh and 81.4 kWh battery pack options.
  • Pricing likely would have started at roughly the low $30,000s

The Kia EV4 made its debut at the New York International Auto Show back in April, touted as Kia’s straightest shot yet at the Tesla Model 3. It seemed poised to stir up the affordable EV segment, but that momentum has stalled before it even reached the showroom.

According to the Korean automaker, the EV4’s American launch has been postponed “until further notice,” a decision that leaves would-be buyers of reasonably priced EVs with one less option in an already tightening field.

Read: Kia’s First Electric Sedan Is Here To Beat The Model 3 At Its Own Game

Kia had engineered both sedan and hatchback versions of the EV4 for different markets. The United States was due to receive only the sedan, while Europe and several other regions would get both body styles.

What seemed like a straightforward rollout has since collided with market realities. The American car landscape looks markedly different from when the EV4 was unveiled in April, and even more so from when Kia first mapped out its export plans.

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“Kia’s full range of vehicles offers meaningful value and inspiring performance to customers,” a Kia spokesman told InsideEVs. “However, as market conditions for EVs have changed, the release of the upcoming EV4 electric sedan will be delayed until further notice.”

What Could Have Been

The EV4 sedan had been set to land in local dealerships in the first quarter of 2026. Kia never got to the point of announcing local prices for it, but with the $7,500 federal EV tax credit now a thing of the past, the math likely stopped adding up.

Without that incentive, the EV4 would have faced a steep uphill battle against more established competitors.

As in other regions, the American-spec EV4, built on Kia’s E-GMP platform, would have come with a 58.3 kWh battery and a 201 hp motor powering the front wheels. That setup promises about 235 miles of range, or roughly 378 kilometers.

Above it sit the Wind and GT-Line models, both equipped with an 81.4 kWh pack capable of up to 330 miles (531 km) on a charge. These figures placed the EV4 squarely in Tesla’s neighborhood, at least, that was the plan before the pause.

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Ex-Tesla Engineers Just Built A Speedster Before Elon Finished His Roadster

  • Longbow has completed its first prototype in just six months.
  • The Speedster weighs only 895 kg and hits 62 mph in 3.5 seconds.
  • Deliveries will evidently begin in 2026, with prices starting at £84,995.

Look around the EV landscape, and one thing stands out: these cars are heavy. Even relatively compact models like the Kia EV6 tip the scales at more than 4,000 pounds (1,814 kg).

British startup Longbow, founded by two former Tesla engineers, Daniel Davy and Mark Tapscott, together with the ex-CEO of an electric boat company and a few others who joined later, wants to change that in the name of performance.

Read: Ex-Tesla Alums Debut New Electric Roadster Named To Taunt Elon Musk

Taking guidance from Colin Chapman’s ethos of “simplify and add lightness,” the Longbow Speedster and and its upcoming closed-top sibling that cheekily, and perhaps not coincidentally, called the Roadster, aim to offer blistering performance without being overweight.

Now, just six months after announcing the two cars, the company has developed its first dynamic demonstrator based on the roofless and windowless Speedster.

Pursuing Lightness

 Ex-Tesla Engineers Just Built A Speedster Before Elon Finished His Roadster

Longbow calls this the first-ever “Featherweight Electric Vehicle” (FEV) – a name that’s fully justified as the Speedster weighs just 895 kg (1,973 lbs). The production version will sprint from 0-62 mph (0-100 km/h) in 3.5 seconds and still offer 275 miles of range (per WLTP).

Pricing for the Speedster will start at £84,995, or $111,732 at current exchange rates (incl. VAT), while for those preferring a roof, the upcoming Roadster will follow with a lower £64,995 ($85,438) base price.

Built From Scratch

Those are attractive stats considering that they’re basically unmatched (as a group) in the EV world. The Speedster rides on a unique aluminum chassis with a light, compact electric motor and “module-to-chassis” battery design aimed at maximizing stiffness and minimizing weight.

Longbow states the car was engineered entirely from a clean sheet, representing a “spiritual successor” to icons like the Lotus Elise and Jaguar E-Type.

Co-founder and CEO Daniel Davey said the Speedster “seems to have struck a chord with enthusiasts,” adding that its creation was “no truer illustration of our Speed of Lightness approach.”

 Ex-Tesla Engineers Just Built A Speedster Before Elon Finished His Roadster

The prototype, called an Aesthetic Dynamic Demonstrator, was revealed in London to a crowd of early customers and collaborators, with first deliveries planned for 2026.

Weight is a huge issue for any car with high-performance goals. Longbow highlighted that when it announced that it would build this car. “Weight invites complexity, blunts agility, and dulls the senses,” it said.

More: Ex-McLaren And Alpine Bosses Join Ex-Tesla Alums To Build EV Roadster Before Tesla Does

The dynamic demonstrator will be a major piece of development as the brand aims to deliver production cars next year. If it pulls it off, it could really dampen the part Tesla says it’s throwing for the (extremely delayed) Roadster later this year, especially if the latter doesn’t enter production until 2027.

Adding some extra weight to its ambitions, Longbow hasn’t been shy about stacking its deck with industry veterans. Former McLaren boss Mike Flewitt, ex-Lotus Europe chief Dan Balmer, and Michael van der Sande, whose CV meanders through Lucid Europe, JLR’s skunkworks, and the top job at Alpine, now sit on its advisory board.

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Honda’s New Electric SUV Might Be Small But Its Global Ambitions Are Big

  • Honda 0 α prototype previews a smaller global EV for Japan and India.
  • It shares design cues and platform with the 0 SUV and 0 Saloon.
  • Expected features include an ultra-thin battery and 300-mile range.

The SUV staring back at you here is the Honda 0 α, unveiled in a world premiere at the Japan Mobility Show and already edging toward production within the next two years.

It’s officially labeled a “prototype,” but as we’ve seen in the past, in Honda terms, that means pre-production rather than pure concept. It joins the 0 Saloon and 0 SUV that made their debut earlier this year, rounding out Honda’s latest attempt to reinvent itself for the electric age.

Read: Honda’s 0 Saloon EV Looks Like A Lambo Gallardo Sedan From The Future

Honda refers to the 0 α (Alpha) as a “gateway model” for its 0 Series range of electric vehicles. The production model will hit the market in 2027 and be available in markets around the world, with a particular focus on Japan and India.

 Honda’s New Electric SUV Might Be Small But Its Global Ambitions Are Big

It has a very similar design to the 0 SUV, but is slightly smaller. And, just like the two other 0 Series models, it looks unlike anything in Honda’s current range.

The most obvious points of difference between the 0 α and the 0 SUV are found at the front. This smaller model rocks a set of different LED taillights and DRLs, but retains an illuminated Honda badge. The lower bumper has also been redesigned and looks slightly more aggressive with a pair of body-colored elements.

 Honda’s New Electric SUV Might Be Small But Its Global Ambitions Are Big
Honda 0 α
 Honda’s New Electric SUV Might Be Small But Its Global Ambitions Are Big
Honda 0 SUV

From the side, the 0 α looks almost indiscernible from the larger model. It retains the same odd shape with an incredibly high rear window and thick rear pillars.

It also has the same rocker panels, the same basic doors, and the same flush handles. The most obvious difference is that it’s slightly shorter and lacks the tiny window behind the C-pillars of the larger model.

The similarities continue at the rear. Honda has equipped the 0 α with a U-shaped LED lightbar that stretches up the tailgate. Notably, the 0 α has a larger rear window than the 0 SUV, which should improve rear visibility. A curvaceous bumper also catches the eye.

What About The Tech?

Honda has yet to release any technical specifications about the new prototype. We know that the 0 Saloon and 0 SUV will share a platform with the Afeela EV that Honda co-developed with Sony. Presumably, the 0 α will also use the same architecture.

 Honda’s New Electric SUV Might Be Small But Its Global Ambitions Are Big

The carmaker notes that the 0 α also adopts the same ‘Thin, Light, and Wise’ approach of the other 0 Series models. Honda has previously said this approach will lead to the creation of an “ultra-thin battery pack” and a compact e-Axle.

The thin battery pack will allow Honda to reduce the height of the floors in its EVs and boost cabin space without impacting ground clearance.

As with the other 0 Series models, the 0 α should hit the market with at least 300 miles or 483 km of range. All 0 Series models are also tipped to hit the market with Level 3 self-driving capabilities that include an eyes-off function for highway traffic jams.

We also know the 0 Saloon and 0 SUV will come standard with NACS charging ports, although it’s unclear if the 0 α will as well given that Honda hasn’t mentioned any plans to sell it in North America.

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EV Sales Will Collapse 60% In October, J.D. Power Forecasts

  • J.D. Power predicts a 60% EV sales drop in October from September levels.
  • Decline follows expiration of federal tax credits that boosted affordability.
  • EVs will make up 5.2% of new sales, down from September’s record 12.9%.

There was no getting around the fact that EV sales would take a massive blow without government subsidies. $7,500 is no small amount of cash, and tacking it onto the price of a car will make most vehicles way less appealing.

If J.D. Power is right, the loss of that credit has had an even larger impact on the EV market than many in the industry expected.

How Deep Is The Dip?

The research firm, working with GlobalData, predicts 54,673 EV retail sales for October. If that figure holds, it represents a 43.1 percent decline compared with October 2024, when 96,085 electric vehicles were sold. That would also mean a slide in market share from 8.5 percent to just 5.2 percent.

More: Germany Brings Back EV Incentives To Save Its Auto Industry

That’s a massive drop from the way September went. EVs hit a record 12.9 percent of the market that month, yet if October’s projected 54,673 EV sales come true, it would mark a 59.9 percent drop from September’s 136,211 units.

“The automotive industry is experiencing a significant recalibration in the electric vehicle segment,” said J.D. Power data analyst Tyson Jominy. “The recent EV market correction underscores a critical lesson: Consumers prefer having access to a range of powertrain options.”

Perhaps the wildest bit of this entire thing is that it could’ve been even worse for EVs. Many brands, including Hyundai, GM, and Tesla, rolled out different methods to ease the pain of losing the federal tax credit.

Had they not done those things, like cutting total costs, rolling out new cheaper models, and more… the hit would’ve no doubt been even harder.

Sales & SAAR Comparison
U.S. New VehicleOctober 20251, 2September 2025October 2024
Retail Sales1,051,414 units 
(5.9% lower than October 2024)2
1,055,975 units1,117,265 units
Total Sales1,249,826 units
(6.9% lower than October 2024)2
1,244,416 units1,343,033 units
Retail SAAR12.7 million units14.1 million units13.5 million units
Total SAAR15.1 million units16.3 million units16.2 million units
SWIPE

¹ Figures for Oct 2025 are forecasts based on the first 16 selling days of the month.
² October 2025 has 27 selling days, the same as October 2024.

Automotive executives also believe the EV market will stabilize and continue to grow over time. Both Ford’s current CEO and former CEO agreed on that point recently. Obviously, only time will tell.

Rising Prices, Fewer Discounts

Another interesting find is that average transaction prices are climbing as the EV share drops. The typical new-vehicle sold in October is expected to hit $46,057, about $1,000 higher than last year. Incentive spending has slipped to $2,674 per vehicle, roughly five percent of MSRP.

Analysts say the pullback in incentives largely stems from fewer EV sales. “EVs usually carry far steeper discounts,” noted one researcher. Average EV discounts rose to $13,161 as brands tried to offset lost tax credits, while non-EV discounts fell to $2,423, helping boost overall profitability despite softer EV demand.

 EV Sales Will Collapse 60% In October, J.D. Power Forecasts

California Threatens To Shut Down Tesla’s Insurance After Thousands Of Complaints

  • California accuses Tesla Insurance of systemic violations in handling claims.
  • Complaints soared from 21 in 2022 to nearly 2,000 through September 2025.
  • Tesla and partners risk license suspension and $10,000 fines per violation.

Tesla is an automaker that has its fingers in several other industries. One is insurance, which it has long promised to be the best in the business for its customers. According to authorities in California, not only is it not a leader, it’s actually so bad that it might lose its license to offer insurance altogether.

The California Department of Insurance (CDI) announced on October 3 that it’s taking enforcement action against Tesla Insurance Services, Inc. and Tesla Insurance Company, alongside State National Insurance Company, which underwrites Tesla’s policies in the state.

Regulators say the three companies failed to comply with California’s claims-handling laws over and over again. It accuses all three of “significant harm” to Tesla drivers who held policies with them.

Read: Tesla Owners Brace For Soaring Insurance Costs And Even Bans As EV Attacks Escalate

In plain terms, Tesla Insurance Services acts as the broker selling the policies, while Tesla Insurance Company and State National handle the underwriting and claims.

A Pattern of Misconduct

Together, the CDI says, they’ve developed a pattern of misconduct so severe that the state may suspend or revoke their licenses and impose monetary penalties of up to $10,000 per willful violation.

According to the department, Tesla’s alleged offenses include extensive delays in paying valid claims, unreasonable denials, and failures to conduct “thorough, fair, and objective investigations.”

The department also accuses Tesla of not informing policyholders of their right to have claims denials reviewed by the state.

 California Threatens To Shut Down Tesla’s Insurance After Thousands Of Complaints

Complaints on the Rise

This isn’t an issue that the state just started tracking, either. In 2022, it noted 21 justified complaints against State National Insurance Company, which accounted for 40 regulatory violations.

The next year, those figures grew to 63 and 195, respectively. In 2024, Tesla Insurance Services joined the fray, and together, complaints rose again to 291, along with 835 violations. 

So far in 2025, the department says it has received nearly 2,000 complaints, over 500 of which were justified, with more than 2,000 regulatory violations. Now, Tesla Insurance Services, Tesla Insurance Company, and State National have 15 days to respond to the accusations before they face a potential administrative hearing.

If the department prevails, the companies could be barred from transacting insurance business in California and hit with significant fines.

 California Threatens To Shut Down Tesla’s Insurance After Thousands Of Complaints
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