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Electric vehicles are the future. But what if you can’t buy one now?

As unpredictable as world events have been recently, very few people would’ve put money on the humble Toyota Prius getting a stunning makeover for 2023. Somehow, that’s exactly what happened. Now the all-new, fifth-generation Prius hybrid boasts sleek, almost sports-car-like looks to go with its impressive 57 miles per gallon.
The Prius will need every advantage it can muster. Its sales have been down for years, and hybrid cars also feel almost anachronistic compared to the new crop of high-range, high-performance electric vehicles hitting the market. Why go hybrid when you’re about to have more options than ever when it comes to breaking up with gasoline entirely?
Even the Biden Administration’s Inflation Reduction Act seems to be reinforcing this idea. While the act modernized how EV and plug-in hybrid tax credits work, regular hybrids without plugs have been left out in the cold. In other words, if you want an American-made EV like a Ford F-150 Lightning, you now qualify for a $7,500 tax break; but if you want a hybrid F-150 or Maverick pickup truck, you’re out of luck because those don’t have plugs.
Furthermore, the hybrid — long the standard-bearer for eco-friendly driving — seems to have a target on its back. “Hybrid cars are still incredibly popular, but are they good for the environment?,” NPR wondered in February, probably much to the chagrin of listeners, many of whom have enjoyed “All Things Considered" while commuting in their own hybrids.
This is all deeply unfortunate, especially given how quickly we need to reduce emissions to avoid the worst outcomes of climate change. Whether there's a plug or not is also the wrong way to think about hybrids.
There’s still a strong case to be made for hybrids today. But let’s be clear about what that case isn’t: an argument for extending the internal combustion era or to slow-walk EV adoption. Rather, hybrids can and should be seen as an essential tool for reducing vehicle emissions right now, and as cars that still have tremendous advantages EVs don’t have yet.
The auto industry’s move toward zero-emission vehicles is now basically inevitable. But there’s still a long way to go. In the interim, cars that pair electricity and gasoline can play a vital role in making the air cleaner and serving as a gateway drug for widespread EV adoption.
For a long time, the primary appeal of a hybrid car was that it would help you save money on gas. But they do much more than that. The science is clear: Hybrid vehicles generate fewer tailpipe emissions than their all-gasoline counterparts, and obviously none when running only on electricity. In fact, 2021 data from the U.S. Department of Energy indicates hybrids produce about half the carbon dioxide on average that fully internal-combustion cars do. The numbers are even better for plug-in hybrids.
Of course, battery EVs fare the best; the only emissions they’re tied to are related to vehicle and battery production and charging. If your goal with your next car purchase is to cut down on CO2, this is a superb way to do so.
As for plug-in hybrids, those have gotten a bad rap in recent years with various studies (especially out of Europe) claiming they pollute much more than automakers advertise. Certainly, that wouldn’t be the car industry’s first rodeo when it comes to greasing emissions — remember Dieselgate?
One thing that hasn’t made headlines is the fact that in Europe, many corporations took advantage of government subsidies to buy PHEVs for their corporate fleets, but company car owners often didn’t charge them. The result is a heavier car, thanks to its additional batteries, that isn’t being used as intended.
The moral of this story: If you drive a PHEV, make sure to plug it in so that it can be driven in all-electric mode properly. The average PHEV gets between 20 and 40 miles of electric range, and given that most Americans drive around 40 miles a day on average, you may be surprised how much gasoline you don’t end up using.
You have more options than ever before when it comes to EVs, and things will get even better in the years to come. Just about every automaker is planning an aggressive EV rollout across multiple categories — trucks, vans, even convertibles — and multiple price points. Electric range is getting better, and thanks to the IRA, EVs built in North America will come with enticing tax credits. Starting next year, those credits will even be applied at the point of sale at the dealership, so you won’t even need to wait on a tax return to reap the benefits.
But there’s still a lot of daylight between where the EV market is now and where it will go next. America’s public charging network is woefully inadequate and many providers offer an infamously subpar experience. Few good charging solutions exist for city dwellers and those who live in apartments. (In fact, I’ve been seeing more and more EVs here in New York charged by 100-foot extension cords running out of windows, which is suboptimal for countless reasons.) Whether you’re into road trips or not, long distances remain a challenge for many EVs too, thanks to these network issues.
Tesla still has objectively the best charging network and it’s opening up to other EVs, but that’s a ways off. So is the network expansion that will be driven by the IRA’s incentives.
Then there's the fact the best EVs are comparatively hard to buy. Many of the really in-demand new EVs — the Mustang Mach-E, the Hyundai Ioniq 5, and the Kia EV6 — are tough to find and still impacted by supply chain issues. If you want a car with great range, a beautiful interior, and excellent range, get in line. Now, to be fair, supply remains super weird across the whole automotive industry, but the most desirable electric cars still seem to have among the longest lines.
EVs remain expensive as well, even by modern standards; by late last year, the average EV was priced around $65,000, around $20,000 more than a typical new vehicle's price tag. That too should change as batteries get cheaper and more options come to market, but for now, going electric could mean sticker shock, too — especially if your EV does not qualify for the new tax breaks.
In other words, it should get much easier to be an EV owner in the next few years. Until then, if these barriers to entry are too onerous, consider a hybrid instead.
There’s also the unfortunate matter of how “green” our electricity really is. Recently, Polestar and Rivian — two companies with every incentive to get you to buy their EVs — jointly commissioned a study that urged a dramatic increase in renewable energy powering both the automotive supply chain and electricity sources in order for these vehicles to be maximally effective at deterring climate change.
EVs alone will not be enough to reduce the harmful effects of the transportation sector. While it’s hard to say “be patient” when we directly experience climate change, we must realize that making changes that should’ve happened decades ago will be a process.
Until then, there’s great value in doing whatever can be done to reduce CO2 emissions, and driving hybrids — to say nothing of walking, biking, and taking public transit — can be crucial to that too.
Are hybrid cars essentially a stopgap to full EV adoption? At this point, it feels like the definitive answer is yes. Car companies like General Motors, Ford, Volvo, and Volkswagen all say they plan to phase out internal combustion entirely by the middle of the next decade, and even if they try to renege on their promises, governments from Brussels to California are banning the sale of new gasoline cars around the same time.
Between regulations and market forces — especially China’s aggressive EV push — the writing is on the wall for gasoline cars. Reducing emissions will be the single most crucial guiding force for the auto industry over the next few decades. In the meantime, and for that very reason, more and more hybrid options are coming to market.
Sure, the Prius’ sales figures don’t look great, but the venerable Toyota Tacoma truck is heavily expected to offer a hybrid option soon. The Toyota Sienna minivan is now only offered as a hybrid, as is the quirky new Toyota Crown sedan. Honda brought back the Accord Hybrid for 2023 and the all-new CR-V Hybrid looks promising as well. Mazda is finally dipping its toes into that market with the new CX-90 plug-in hybrid. Even the beloved Mazda Miata, the gold standard for affordable sports cars, is heavily rumored to have some kind of electrification when an all-new one arrives in the next few years. And as of this year, every new Volvo you can buy is a hybrid if it’s not a full EV.
The point is, while EVs are getting the splashy headlines, car companies aren’t yet done with hybrids. Not by a long shot. In fact, electrification is likely to become even more common as we start to approach the end of the internal combustion era, particularly as battery costs start to go down.
Think of it this way: If the Chevy Corvette can go hybrid, so can you.
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We knew the revived Chevrolet Bolt might have a limited run. Nobody knew it would be this limited.
General Motors began manufacturing the updated version of its small electric car late last year to begin deliveries this month. Already the news of its potential demise is here. GM says the Kansas factory that’s churning out Bolts will be repurposed to make combustion cars, including a Buick, of all things. Now, just as the arrival of the sub-$30,000 Bolt heralded a new age of more affordable electric cars, Chevy is dropping out of the race and putting its beloved little electric car on the backburner. Again.
The culprits in this case are clear. With the federal tax credit for buying EVs dead and gone, and with weakened emissions rules removing the incentive for car companies to pursue an aggressive electrification strategy, automakers are running back to the familiar embrace of fossil fuels. GM has already said it expects to lose billions as it adjusts its business strategy, curbing its EV push to meet the new reality under President Trump, where gas-burning cars remain much more profitable to build and sell.
The Bolt’s fate is the immediate fallout from that move. The Buick Envision, part of America’s army of indistinguishable gas-powered crossovers, had been built at a GM plant in China. Trump’s tariffs, however, incentivized the company to move production back to the U.S. The fact that GM repatriated the Envision at the expense of the Bolt tells you what you need to know about this moment in the U.S. auto market.
GM never promised that the Bolt would be back for good, and its return to limbo is par for the course when it comes to this plucky little car. The original Bolt EV had its problems, including a battery recall and glacial charging speeds by today’s standards. But the Bolt established GM’s place in the new EV age and found a flock of fans. At the time it was discontinued in 2023, it was the top-selling non-Tesla EV in America, selling more than 60,000 cars that year.
Fans clamored to get the car back. GM listened, and built a new version on the Ultium platform that forms the basis of its current generation of EVs. When I attended Chevy’s big reveal party for the new Bolt last year, it handed out merch reading “back by popular demand.” Yet GM always referred to the vehicle’s revival as a special run, as if not to get anyone’s hopes up that the Bolt would become a mainstay in the Chevy lineup.
Things could have been different, of course. GM has hinted at the possibility of expanding upon the Bolt with more models if the car succeeded in helping the company win the affordable EV race. Instead, the Kansas factory will turn back to combustion next year as Chevy builds some gas-powered Equinox SUVs there, moving production from Mexico after getting hammered by new tariffs. The Buick Envision, which GM has been making in China for nearly a decade, will begin Kansas production in 2028.
The Bolt’s second sudden death is a big blow to American EV lovers. Without a $7,500 tax break for buying an electric vehicle, Americans badly need more affordable options. Bolt, which starts around $29,000 in its most basic form, was set to lead a pack that would include other 2026 arrivals such as the customizable, Jeff Bezos-backed Slate truck and the reimagined third-generation Nissan Leaf. Now, you’d better act fast if you want to get behind the wheel of a Bolt.
Practically every week brings a flood of climate tech funding news and announcements — startups raising a new round, a venture capital firm closing a fresh fund, and big projects hitting (and missing) milestones. Going forward, I’ll close out each week with a roundup of some of the biggest stories that I didn’t get a chance to cover in full.
This week, we’ve got money for electric ships, next-gen geothermal, and residential electrification in Europe. Yay!
Many say battery-powered cargo ships will never make sense — that batteries are too heavy, too bulky, and would take up too much valuable space. FleetZero says it can make it work. Last Friday, the electric shipping startup raised a $43 million Series A round led by Obvious Ventures, with participation from other firms including Maersk Growth, the shipping giant’s corporate venture arm, and Breakthrough Energy Ventures. The funding will support production of the company’s hybrid and electric propulsion systems, as well as new manufacturing and R&D operations in Houston.
Ships’ bunker fuel is extremely polluting. It accounts for roughly 3% of global CO2 emissions and dirties the air with other pollutants such as sulfur and nitrogen oxides. Most players in the shipping decarbonization space want to shift to liquid fuels such as e-ammonia or e-methanol — a move that would require mulit-million-dollar engine overhauls and retrofits. FleetZero says that battery electrification will prove to be cheaper and simpler. The company is building batteries large enough to hybridize — and potentially one day fully electrify — large container ships.
As FleetZero’s CEO and co-founder Steven Henderson told my colleague Robinson Meyer on a 2024 episode of Heatmap’s Shift Key podcast, batteries are a relatively simple maritime decarbonization solution because “you can use existing infrastructure and build on it. You don’t need a new fundamental technology to do this.” And while the company has yet to provide any cost estimates for electrifying commercial shipping, as Henderson put it, “the numbers to do this are not outside the realm of possibility.”
The next-generation geothermal startup Sage Geosystems announced on Wednesday that it raised a $97 million Series B round, co-led by the renewable energy company Ormat Technologies and the growth equity firm Carbon Direct Capital. This came atop a hot week for geothermal overall. As I wrote already, the artificial intelligence-powered geothermal developer Zanskar announced a $115 million Series C round for its pursuit of AI-driven conventional geothermal, while Axios reported that the geothermal unicorn Fervo Energy has filed for an IPO.
Like Fervo, Sage uses drilling technology adapted from the oil and gas industry to create its own artificial reservoirs in hot, dry rock. The startup then pumps these fractures full of water, where it absorbs heat from the surrounding rocks before being brought to the surface as steam that’s used to generate electricity. Sage’s CEO, Cindy Taff — a former Shell executive — told Bloomberg that this latest investment will accelerate the company’s project timeline by a full year or two, allowing the company to put power on Nevada’s grid sometime in 2027.
This latest funding follows Sage’s strategic partnership with Ormat, announced last year, and could help the startup make good on its agreement with Meta to deliver up to 150 megawatts of clean electricity for the tech giant’s data centers starting in 2027.
Berlin-based startup Cloover — which helps Europeans finance home electrification upgrades — announced a $22 million Series A round on Wednesday, alongside a $1.2 billion debt facility from an unnamed “leading European bank” that it can draw on. The company, which describes itself as both the “operating system for energy independence” and the “Shopify of Energy,” aims to help homeowners ditch fossil fuels by facilitating loans to cover the upfront cost of, say, buying and installing heat pumps, rooftop solar, or home batteries — something traditional banks struggle to finance.
Cloover’s a fintech platform allows home energy installers to manage complex projects while offering loans for green upgrades to customers at the point of sale. The software’s AI-driven credit underwriting evaluates not just a customer’s credit score, but also the projected energy savings and performance of the upgrade itself, helping align the price and terms of borrowing with the anticipated economic value of the asset.
Forbes reports that Cloover has already financed roughly 2,500 home energy installations. The company says it’s profitable, generating nearly $100 million in sales last year. With this new funding, the startup plans to expand across Europe and is projecting $500 million in sales this year, anticipating an explosion in demand for distributed energy resources.
One of the oldest players in the race to commercialize fusion energy, General Fusion, has been candid about its recent funding struggles, laying off 25% of its staff last spring while publicly pleading for more cash. This Thursday, it announced a lifeline: a SPAC merger that will provide the company with up to $335 million, if all goes according to plan. Read more about the deal in our Heatmap AM newsletter.
Current conditions: The monster snow storm headed eastward could dump more than a foot of snow on New York City this weekend • An extreme heat wave in Australia is driving temperatures past 104 degrees Fahrenheit • In northwest India, Jammu and Kashmir are bracing for up to 8 inches of snow.
Last month, Fervo Energy raised another $462 million in a Series E round to finance construction of the next-generation geothermal startup’s first major power plant. Pretty soon, retail investors will be able to get in on the hype. On Thursday, Axios reported that the company had filed confidential papers with the Securities and Exchange Commission in preparation for an initial public offering. Fervo’s IPO will be a milestone for the geothermal industry. For years, the business of tapping the Earth’s molten heat for energy has remained relatively small, geographically isolated, and dominated by incumbent players such as Ormat Technologies. But Fervo set off a startup boom when it demonstrated that it could use fracking technology to access hot rocks in places that don’t have the underground reservoirs that conventional geothermal companies rely upon. In yesterday’s newsletter, I told you about how Zanskar, a startup using artificial intelligence to find more conventional resources, and Sage Geosystems, a rival next-generation company to Fervo, had raised a combined $212 million. But as my colleague Matthew Zeitlin wrote in December when Fervo raised its most recent financing round, it’s not yet clear whether the company’s “enhanced” geothermal approach is price competitive. With how quickly things are progressing, we will soon find out.
Fervo isn’t the only big IPO news. General Fusion, the Canadian fusion energy startup TechCrunch describes as “struggling,” announced plans for a $1 billion reverse merger deal to go public on the Nasdaq. The move comes almost exactly a month after President Donald Trump’s social media company, the parent firm of Truth Social, inked a deal to merge with the fusion startup TAE Technologies and create the first publicly-traded fusion company in the U.S. Analysts I spoke to about the deal called it “flabberghasting,” and warned that TAE’s technology represented a more complex and dubious approach to commercializing fusion than that taken by rival companies such as Commonwealth Fusion Systems. Still, the IPO deals highlight the growing excitement over progress on generating power from a technology long mocked as the energy source of tomorrow that always will be. As Heatmap’s Katie Brigham artfully put it in 2024, “it is finally, possibly, almost time for fusion.”
General Motors plans to move manufacturing of the next generation of its Buick Envision SUV from China to the U.S. in two years and end production of the all-electric Chevrolet Bolt. The Detroit auto giant makes just one of its four SUV models in the U.S., leaving the cars vulnerable to Trump’s tariffs. The worst hit was the Envision, which is currently built in China. Starting in 2028, the latest version of the Envision will be produced in Kansas, taking over the assembly line that is currently churning out the Bolt.
It's a blow to GM's electric vehicle line. Chevy just brought back the Bolt in response to high demand after initially canceling production in 2023, because as Andrew Moseman put it in Heatmap, it's “the cheap EV we've needed all along.” While Chevy had always framed the return as a limited run, it was not previously clear how limited that would be.
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The Department of Energy said Thursday its newly rebranded Office of Energy Dominance Finance, formerly the Loan Programs Office, is “restructuring, revising, or eliminating more than $83 billion in Green New Scam loans and conditional commitments.” The move comes after “an exhaustive first-year review” of the $104 billion in principal loan obligations the Biden administration shelled out, including $85 billion the Trump administration accused of being “rushed out the door in the final months after Election Day.” In a statement, Secretary of Energy Chris Wright said the changes are meant to “ensure the responsible investment of taxpayer dollars.” While it’s not yet clear which projects are affected, the agency said the EDF eliminated about $9.5 billion in support for wind and solar projects and redirected that funding to natural gas and nuclear energy. But as Heatmap’s Emily Pontecorvo noted last night, the Energy Department hasn’t yet said which loans are set to be canceled as part of the latest cuts. The announcement may include loans that have already been canceled or restructured.
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If you know anything about surging electricity demand, you’re likely to finger a single culprit: data centers. But worldwide, air conditioning dwarfs data centers as a demand driver. And in California, electric vehicles are on pace to edge out data centers as a bigger driver of peak demand on the grid. That’s according to a new report from the California Energy Commission. Just look at this chart:

As the Golden State tries to get a grip on its electricity system, Representative Ro Khanna, the progressive Silicon Valley congressman often discussed as a potential 2028 presidential candidate, has doubled down on his calls to break up the state’s largest utility. On Thursday, Khanna posted on X that PG&E “should be broken up and owned by customers, not shareholders. They are ripping off Californians by buying off politicians in Sacramento.” The Democrat has been calling for PG&E’s demise since at least 2019, when the utility was on the hook for billions of dollars in damages from a wildfire sparked by its equipment. But the idea hasn’t exactly caught on.
New energy technologies such as batteries, solar panels, and wind turbines are driving demand for minerals and spurring a controversial push for new mines on virgin lands. But a new study by researchers at the University of Queensland’s Sustainable Minerals Institute found that a production boom is already underway at existing mines. The peer-reviewed paper, which is the first comprehensive global analysis of brownfield mining expansion, found that existing mines are growing in size and scale. Just because the mines are already there doesn’t mean the new production doesn’t come with some social cost. Nearly 78% of the 366 mines analyzed in the study “are located in areas facing multiple high-risk socioeconomic conditions, including weak governance, poor corruption control, and limited press freedom,” the study found.
The Department of the Interior has a new coal mascot. On Thursday, the agency posted an animated picture of a cartoonish, rosy-cheeked, chicken nugget-shaped lump of coal clad in a yellow hardhat and construction gear. His name? Coalie. The idea isn’t original. Australia’s coal-mining trade group rolled out an almost identical mascot a few years ago — same anthropomorphic lump of coal, same yellow attire. The only difference? His name was Hector, and he wore glasses.