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Sparks

It Was a Big Week for Weird Little EVs

Think the Cybertruck is strange? The Morgan XP-1 would like a word.

Fiat and Morgan EVs.
Heatmap Illustration/Morgan Motor Company, Stellantis

The Americanization of electric cars is in full swing, with every U.S. automaker doing what it does best: building ever larger, heavier, and more spacious vehicles. So it's refreshing to see Stellantis, the parent company of Fiat, bringing its first new EV to the States in the form of a reborn 500e.

Fiat 500eFiat

The 500e was beloved when it first landed a decade ago, providing a quick, ultra-compact hatchback that fit the needs of most city and suburban drivers. And given there weren't exactly a lot of small, inexpensive EV options at the time (and incentives were plentiful), you still see them on the road today.

For the new model, Fiat addressed this week some of the issues of its predecessor, with a boost in both power and range thanks to a 42 kWh battery pack that wrings out 149 miles on a charge. The $34,000 price tag may not make it the bargain it used to be, particularly compared to more spacious and long-range options like the Tesla Model 3, which, unlike the 500e, is also eligible for a federal tax credit. But Fiat includes a free Level 2 home charger in the deal, and its 3,000-pound weight and diminutive size make a compelling case for the average commuter.

Plus, when it’s trundling along at low speeds, the 500e's Acoustic Vehicle Alert System (that low hum you hear that's required on EVs) plays a little Italian concerto, "The Sound of 500."

If that's not enough personality for you, one of the most storied British sports car brands, Morgan, unveiled Wednesday an electric update to its iconic three-wheeler. With a 33kWh battery pack mounted in the front and an electric motor putting out 134 horsepower to the rear wheel — singular — the XP-1 is a glimpse of the ultimate electric urban runabout.

Meet XP-1, Morgan's Electric Experimental Prototypeyoutu.be

Completely developed in house by Morgan, it's the company's first serious foray into electric motoring, with an aim to get about 100 miles on a charge. At just over 1,500 pounds, the XP-1 is a scant 130 pounds heavier than its internal combustion counterpart, providing the kind of performance and raw driving experience Morgan is known for. Granted, the lack of a roof limits its four-season functionality, but no one has ever accused a Morgan of being sensible.

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Sparks

The Mad Dash to Lock Down Biden’s Final Climate Dollars

Companies are racing to finish the paperwork on their Department of Energy loans.

A clock and money.
Heatmap Illustration/Getty Images

Of the over $13 billion in loans and loan guarantees that the Energy Department’s Loan Programs Office has made under Biden, nearly a third of that funding has been doled out in the month since the presidential election. And of the $41 billion in conditional commitments — agreements to provide a loan once the borrower satisfies certain preconditions — that proportion rises to nearly half. That includes some of the largest funding announcements in the office’s history: more than $7.5 billion to StarPlus Energy for battery manufacturing, $4.9 billion to Grain Belt Express for a transmission project, and nearly $6.6 billion to the electric vehicle company Rivian to support its new manufacturing facility in Georgia.

The acceleration represents a clear push by the outgoing Biden administration to get money out the door before President-elect Donald Trump, who has threatened to hollow out much of the Department of Energy, takes office. Still, there’s a good chance these recent conditional commitments won’t become final before the new administration takes office, as that process involves checking a series of nontrivial boxes that include performing due diligence, addressing or mitigating various project risks, and negotiating financing terms. And if the deals aren’t finalized before Trump takes office, they’re at risk of being paused or cancelled altogether, something the DOE considers unwise, to put it lightly.

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Sparks

Treasury Finalizes Another IRA Tax Credit Before You Know What

The expanded investment tax credit rules are out.

The Treasury Department building.
Heatmap Illustration/Getty Images

In the waning days of the Biden administration, the Treasury Department is dotting the i’s and crossing the t’s on the tax rules that form the heart of the Inflation Reduction Act and its climate strategy. Today, Treasury has released final rules for the Section 48 Investment Tax Credit, which gives project owners (and/or their tax equity partners) 30% back on their investments in clean energy production.

The IRA-amended investment tax credit, plus its sibling production tax credit, are updates and expansion on tax policies that have been in place for decades supporting largely the solar and wind industries. To be clear, today’s announcement does not contain the final rules for the so-called “technology-neutral” clean electricity tax credits established under the IRA, which will supercede the existing investment and production tax credits beginning next year and for which all non-carbon emitting sources of energy can qualify.

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Sparks

Trump’s OMB Pick Wants to Purge the Government of ‘Climate Fanaticism’

Re-meet the once and future director of the Office of Management and Budget, Russell Vought.

Russ Vought.
Heatmap Illustration/Getty Images, Library of Congress

President-elect Donald Trump spent the Friday evening before Thanksgiving filling out nearly the rest of his Cabinet. He plans for his Treasury secretary to be a hedge fund manager who’s called the Inflation Reduction Act “the Doomsday machine for the deficit”; he’s named a vaccine safety skeptic to lead the Centers for Disease Control and Prevention; and his pick to head the Department of Labor is a Republican congresswoman who may want to ease the enforcement of child labor rules if confirmed.

And — in one of the most consequential moves yet for America’s standing in the fight to mitigate climate change — Trump also named Russ Vought to lead the Office of Management and Budget. The decision comes as no surprise — Vought served as deputy director of the OMB under Trump in 2018 and took over the top job in 2019, serving until the end of Trump’s first presidency. The strategic communications group Climate Power had been sounding the alarm on his potential return to the office since this spring, which included sharing their research on him with me.

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