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Your weekly intelligence on EVs and Transportation Decarbonization
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This week’s NetZero Insider transportation decarbonization news was led by a story by Henrik Nilsson about a federal suit filed by 17 states alleging that the Trump administration has unlawfully withheld $5 billion in funding for electric vehicle charging infrastructure. 


The coalition of states, led by California, Washington and Colorado, argues that the Federal Highway Administration has refused to distribute the funds despite clear direction from Congress to do so. California officials say the funding freeze could cost the state more than $300 million and risk thousands of jobs. 


In other news from D.C., House Speaker Mike Johnson confirmed that Republicans will likely try to kill the $7,500 federal tax credit for EVs. Republicans are looking to free up funding to support tax cuts proposed by the Trump administration. 


Losing the tax credit, coupled with the effects of the Trump administration’s tariffs on vehicles and car parts, would be a major hit to EV affordability in the U.S. Rivian and Lucid both warned of rising EV costs as a result of the tariffs. The CEO of Rivian recently said he expects the tariffs to increase EV costs by “a couple of thousand dollars,” while Lucid anticipates that the tariffs will increase costs by 8 to 15%. 


Rivian also announced its plan to build a $120 million supplier park next to its manufacturing facility in Illinois as it works toward the launch of a cheaper SUV in 2026. Meanwhile, Tesla recently launched a cheaper version of its Model Y in the U.S., which is priced at $44,990, $4,000 below the more expensive version. 


Looking to avoid the Trump administration’s tariffs, Audi is considering moving some production to the U.S. The company has yet to announce final details but told shareholders that it aims to launch 10 EV models in the U.S. and plans to lock in production locations by the end of 2025.  


All that and more in this week’s Intelligence Report: 


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Electric Vehicles
Heavy-duty Vehicles
Medium-duty Vehicles

 
 

Electric Vehicles

California

Why Democrats Joined Republicans to Block a California Climate Policy

Some said they worried that California's planned ban on gas-powered vehicles would raise the price of cars. Another cited "intense and misleading lobbying" by the oil industry. The New York Times


Illinois

Rivian to build $120M supplier park in Illinois

This development aims to streamline material supply processes for Rivian's EV production. Global Data


International

Audi may build EVs in the US to dodge Trump's new tariffs

Audi is looking to dodge new U.S. tariffs by manufacturing its electric vehicles on American soil. Right now, the automaker imports most of its U.S.-sold vehicles from Europe and Mexico, but that's now a lot more expensive. Electrek


International

Foxconn to develop and build electric car for Mitsubishi

Foxconn and Mitsubishi Motors have signed a memorandum of understanding that provides for the development of an electric car model for the Japanese company by Foxconn and its production in Thailand. The model is due to be launched on the Australian and New Zealand markets in the second half of 2026. Electrek


International

Geely Submits Bid to Take US-Listed EV Brand Zeekr Private

Billionaire Li Shufu is ramping up a push to streamline his sprawling business empire, with his Hong Kong-listed Geely Automobile Holdings offering to take premium electric-car maker Zeekr private. Bloomberg


International

Rivian and Lucid brace for higher costs as tariffs hit EV makers

Electric vehicle makers Rivian and Lucid warned of higher costs from U.S. tariffs on imported vehicles and auto parts, even as automakers scramble to rework sourcing of critical supplies and minimize disruption. Reuters


International

Want Your EV Market to Take Off? Then Let Chinese Carmakers In

There's a clear factor dividing which countries are seeing faster electric vehicle adoption and which are going slower. Bloomberg


Oregon

Oregon prepares to reopen popular EV rebate program

The Oregon Department of Environmental Quality's Oregon Clean Vehicle Rebate program is to reopen on May 22, with a focus on helping low to moderate-income households purchase or lease new or used EVs. Oregon Public Broadcasting


U.S.

Both Biden's and Trump's Policies Are Making EVs More Expensive

President Trump is not the only one whose policies make it difficult for EV companies to innovate. In fact, former President Biden's signature law is having a very similar effect. A new bare-bones entry into the market provides a perfect illustration. Reason


U.S.

GOP leader confirms plan to kill $7,500 EV tax credit in budget

Republican House Speaker Mike Johnson confirmed that current discussions about the $7,500 federal tax credit for electric vehicles in the budget would "more likely than not" result in killing the EV incentive. Electrek


U.S.

OPINION: The Politics of EVs Have Changed

Thirty-five Democrats joined the GOP to repeal California's EV mandate. The Wall Street Journal


U.S.

Republicans say EVs don't pay their fair share. We did the math.

House Republicans want to impose an annual $250 fee on electric vehicle drivers, who don't pay the gas tax. Critics say the fee is too high. The Washington Post


U.S.

Rivian cuts 2025 delivery target, ups expected spending amid tariff pressures

Rivian's new guidance includes deliveries of between 40,000 units and 46,000 units, and expenditures of between $1.8 billion and $1.9 billion. CNBC


U.S.

Tesla launches cheaper Model Y vehicle in the US

Tesla has launched a cheaper version of its Model Y vehicle in the United States. The new long range rear-wheel drive version costs about $44,990, before a $7,500 federal tax credit, the electric vehicle maker's website showed. Including the tax credit, the new vehicle will cost $37,490. Reuters


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Heavy-duty Vehicles

California

Coalition of GOP attorneys general celebrate win against California's clean-truck rule

"This is not only a victory for the trucking industry -- it is also a victory for consumers and common sense," West Virginia Attorney General JB McCuskey said in a statement. The Hill


U.S.

Demand Surges for RNG-Powered Trucks

The announcement on the opening day of the recent 2025 Advanced Clean Transportation Expo in Anaheim, Calif., provided a focal point for a show floor abuzz with talk of a surge in demand for renewable natural gas and RNG-powered trucks. Transport Topics


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Medium-duty Vehicles

Illinois

Once an Illinois darling, electric school bus maker Lion faces likely liquidation

The bad news about Lion Electric, which has been building for months, just got worse, with a court-appointed monitor saying there is a "very high" likelihood that the company will be liquidated, according to the Globe and Mail and other outlets. Chicago Tribune


U.S.

Blue Bird diversifies from schoolbuses, enters electric medium duty truck market

For the first time since the company started building its own chassis in 1952 (minus a few small projects here and there), Blue Bird is making a serious effort to move out to other types of vehicles. Electrek


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