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Just over a month ago, I reached out to you, our valued readers, to get your thoughts on how EV sales might change after the $7,500 federal tax credit ended on September 30. Most of you who responded believed that EV sales would drop sharply.
It’s still too soon to draw conclusions, as only a few days have passed since the quarter ended. However, the approaching expiration of the tax credit did prompt a surge in EV purchases, with many buyers hurrying to complete their transactions before the deadline.
Tesla, despite a slowdown in its sales growth, just achieved its highest-ever quarterly delivery number, reaching 497,099 vehicles. That’s a significant 29% rise from the previous quarter, about 7% higher than the same period last year, and the largest quarterly delivery in the company’s history.
Ford Motor, General Motors, and Hyundai all posted their best-ever quarterly EV sales. Rivian also saw its deliveries climb to 13,201 vehicles, up from 10,661 in Q2 and 8,640 in Q1.
The big question now is how automakers will handle a potential slowdown in EV sales now that the tax credit has ended. Rivian has already revised its 2025 outlook downward, and others might do the same.
The main challenge for carmakers is how to clear out existing inventory as 2026 models arrive, without sacrificing profits—or, in some cases, increasing their losses.
A little bird
Image Credits:Bryce Durbin
The Department of Energy canceled 321 clean energy initiatives but did not disclose the specifics to TechCrunch or the public. Fortunately, an anonymous source provided the full list of grants canceled by the Trump administration, revealing some interesting insights.
In total, the canceled grants amounted to $7.56 billion, with California losing the most—$2.2 billion—including a $630 million grid modernization project that could have served as a national model. Colorado, Illinois, Massachusetts, Minnesota, New York, and Oregon were also hit hard, each losing between $300 million and $600 million.
It wasn’t until further down the list that a Republican-leaning state appeared. In fact, most of the affected projects were located in states that supported Kamala Harris in the last presidential election, a fact highlighted by several media outlets after Office of Management and Budget chief Russell Vought tweeted about it.
Yet, even in Democratic states, some grants remained, possibly due to political ties to the Trump administration or shared interests. Regardless, the DOE’s actions suggest that government support may be less dependable for businesses, particularly for smaller startups.
Deals!
Image Credits:Bryce Durbin
Toyota might not be the first name you associate with startups, but maybe it should be.
The Japanese carmaker is investing $1.5 billion in new funding to support startups throughout their entire journey—from the earliest stages of innovation to growth and maturity.
Toyota has launched a strategic investment arm called Toyota Invention Partners Co. with approximately $670 million in capital, and its growth-focused venture fund Woven Capital has introduced a second fund worth $800 million.
I interviewed George Kellerman, general partner at Woven Capital, about Toyota’s investment plans and strategy. He described Toyota Invention Partners as a complement to the company’s other investment groups. Read my article to find out more.
Other deals that stood out to me …
Remember Einride, the Swedish company known for its distinctive electric and autonomous transport pods? The company is still moving forward and has just secured $100 million from both new and existing investors, including its largest backer, EQT Ventures. The round also included an undisclosed strategic investment from quantum computing firm IonQ. While $100 million is substantial, it’s much less than the $500 million in equity and debt the company raised previously.
Electroflow, a company working on more affordable LFP batteries, raised $10 million in seed funding led by Union Square Ventures and Voyager, with Fifty Years and Harpoon Ventures also participating.
Flai, a San Francisco startup using AI for car dealerships, secured $4.5 million in seed funding led by Liz Wessel at First Round Capital. YC, RedBlue Capital, Joe Montana’s Liquid 2 Ventures, and Innovation Endeavors also invested.
This type of unusual deal is becoming more frequent under the Trump administration. The Department of Energy took a 5% equity share in Canadian firm Lithium Americas and a 5% stake in its Nevada mining joint venture with General Motors as part of a renegotiated $2.26 billion federal loan. This follows similar government equity stakes in Intel and MP Materials.
The U.K. government will back a commercial bank loan of £1.5 billion ($2 billion) for automaker Jaguar Land Rover after a cyberattack forced the company to halt production and put its suppliers at risk of bankruptcy.
Early-stage deep tech investor Wave Function Ventures has closed its first fund at $15.1 million. Senior reporter Sean O’Kane profiles founder Jamie Gull and his journey from aerospace engineering to venture capital.
Notable reads and other tidbits
Image Credits:Bryce Durbin
Two Amazon Prime Air drones collided with a crane boom at the company’s same-day facility in Tolleson, Arizona—its only commercial site. Federal authorities are investigating, and after a brief suspension, Amazon has resumed the service.
DoorDash has spent years developing a self-driving delivery robot capable of navigating streets, bike lanes, and sidewalks. Senior AI reporter Max Zeff spent time with “Dot” and Ashu Rege, a former Zoox executive now leading DoorDash’s autonomy efforts.
Faraday Future is still around, as evidenced by one of its electric SUVs catching fire at its Los Angeles headquarters, causing an explosion that damaged part of the building.
The Trump administration’s enforcement actions in Chicago are impacting the gig economy, according to the founder of e-bike subscription company Whizz, who spoke with TechCrunch.
Waymo achieved a regulatory victory in New York City, receiving an extension for its testing permit.
WestJet, Canada’s second-largest airline, reported that a cyberattack and data breach compromised the personal data of 1.2 million passengers.
Zoox will begin mapping the streets of Washington, D.C., as it prepares to start testing its autonomous vehicles in the capital later this year.
One more thing …
TechCrunch Disrupt 2025 is just around the corner. I hope to see you there! We’ll have some prominent transportation leaders on stage, including Waymo co-CEO Tekedra Mawakana, Waabi founder and CEO Raquel Urtasun, Wayve co-founder and CEO Alex Kendall, and Slate CEO Chris Barman.
In the lead-up to the event, we’ve been highlighting some of the Startup Battlefield 200 companies, such as Hance, a startup focused on low-power, on-device processing that has already attracted attention from companies like Intel.
