Axios What's Next

July 21, 2023
Used electric cars are finally a thing, Joann reports today β good news for budget-conscious buyers and EV adoption more broadly.
Today's newsletter is 1,143 words ... 4Β½ minutes.
1 big thing: Want an EV deal? Check the used lot
Illustration: Sarah Grillo/Axios
With more choices, falling prices and a newly available federal tax credit, there's finally a decent market for affordable, pre-owned electric vehicles (EVs), Joann reports.
Why it matters: People buy more than twice as many used cars as brand new models, so a vibrant secondary market is key to broader EV adoption.
What's happening: Early EV adopters are now trading in their cars for new models, creating a larger pool of pre-owned options.
- Dealers sold an estimated 41,000 used EVs in the second quarter of this year β a 36% jump from a year ago, and 77% higher than during the second quarter of 2021, per Cox Automotive.
- The average sticker price on a new EV is a little over $55,000, down nearly $10,000 since the third quarter of 2022. But used EVs are even cheaper: an average $41,630, down from about $55,000 last year.
For the first time, used EVs are eligible for a federal tax credit of up to 30% of the purchase price (capped at $4,000), which could help make them even more affordable.
- To qualify, cars must be purchased from a licensed dealership for less than $25,000.
- There are income limits on buyers, too: $75,000 for single tax filers, $150,000 for joint filers and $112,500 for heads of household.
That means you're mostly looking at older EVs with limited range, plus plug-in hybrids, according to EV data research firm Recurrent Auto.
- Some examples: The 2011-2017 Nissan Leaf, 2015-2019 VW eGolf or 2014-2019 BMW i3, all with a range of under 100 miles.
- Some longer-range models, like the Chevrolet Bolt EV or Hyundai Kona, could come in below the $25,000 threshold if you negotiate well. (Used Teslas are likely too expensive to qualify.)
The catch: About 45% of used car sales involve private parties, so buying your neighbor's old EV doesn't qualify you for the tax break.
The intrigue: There's a potential workaround involving a new app called Caramel that aims to facilitate used-car transactions for private sellers and independent dealers.
- Caramel doesn't list cars. But once a buyer and seller agree on a deal, it acts as a digital checkout, providing a secure platform for payment, title transfer and registration. Caramel also offers insurance, warranties and financing.
- Because Caramel is registered as a licensed dealer in a handful of states (but can operate in all 50), it can act as the "dealer" in a private sale. That could make purchases completed there eligible for the $4,000 used-car tax credit.
This IRS hack wasn't part of the original business plan when Craig Nehamen and Ed Brojerdi founded the company 18 months ago. But it's a serendipitous bonus that users seem to have discovered.
- While EVs account for less than 1% of all used car sales, according to Cox, they represent about 20% of Caramel transactions.
The big question: Will an electric car's battery last through multiple owners?
- Like your phone, EV batteries degrade over time β generally 2%-3% a year, according to Scott Case, CEO of Recurrent, which tracks battery performance data supplied by a nationwide fleet of EV drivers.
- The rate of degradation depends on how the car is charged and driven, and the kind of weather it experiences.
- There aren't enough older EVs yet for a full analysis. But so far, it appears EV batteries are holding up better than experts predicted, and will last well past the usual eight-year warranty period.
The bottom line: The best place to find an affordable EV may well be on the used car lot.
Disclaimer: Cox Automotive's parent company, Cox Enterprises, also owns Axios.
2. AI-generated "South Park"
A screenshot from a Showrunner AI-created South Park episode featuring Axios' Ina Fried. Image courtesy of Fable Studio
A new app that creates brief episodes of "South Park" from a single prompt highlights the promise and peril of injecting generative AI into creative franchises, Axios AI+'s Ina Fried writes.
Why it matters: Such technology could open the door for fans and viewers to bring their own ideas β but also threatens the standing of the creators behind beloved franchises.
Driving the news: Fable Studio, the creators of the app (called Showrunner AI), is spotlighting its program's seeming ability to create a decent short episode from next to nothing β first in an academic paper, and now this week in press demos.
- Fable Studio asked Axios for our ideas, and we suggested they create a "South Park" episode about an AI that wants to take control of the show from its creators, Trey Parker and Matt Stone.
- You can see the five-minute result here.
Of note: The people behind "South Park" have nothing to do with Showrunner AI and didn't give their blessing for this use.
- Fable Studio says the "South Park" imitations are strictly meant to show off the product's capabilities.
3. πΊοΈ Retail clinics, mapped

The Midwest and Southeast are hot spots for retail health clinics, Alex and Kavya Beheraj report based on Definitive Healthcare data.
Why it matters: Retail clinics β which are located inside retail or convenience stores and offer basic health services like vaccinations and minor injury care βΒ offer an easy-to-access alternative to emergency rooms, urgent care clinics and primary care providers.
By the numbers: "Over the last five years, the use of retail clinics has grown 200% β considerably more than urgent care centers, which grew 70%," per Definitive Healthcare's recent report.
- "Meanwhile, emergency room usage declined by 1% over the same time period, and claims filed by primary care offices declined 13%."
4. In "Pikmin 4," you're the boss
Pikmin 4. Screenshot: Nintendo / Axios
Nintendo's newest game, Pikmin 4, may be full of astronauts, tiny plant-people and giant bugs β but it's ultimately about time management, delegation and how to make the most out of being in charge, Axios Gaming's Stephen Totilo writes.
- Pikmin 4 wouldn't serve as a replacement for a good book on management, but Nintendo itself is promoting it using the word "dandori," Japanese for "planning" (or, as Nintendo puts it, "to think about planning and efficiency in advance to get things done smoothly").
Details: Pikmin 4 involves playing as a space traveler who can command up to 100 bipedal Pikmin creatures.
- The Pikmin are plucked from the ground like plants, follow the player's astronaut as a loyal pack, and can be hurled at giant enemies to attack or haul them away like a swarm of ants.
- The whole game is a fictionalized job: The player is a new recruit who initially has to rescue their co-workers and boss, train in the art of dandori and more.
What they're saying: "I've always wanted to create this kind of gameplay where you manage things," Nintendo designer Shigeru Miyamoto said in a recent Q&A.
- "For example, as a manager in your workplace, you think about who should be given what task to get things done. You have a small project here and a large, resource-heavy project there, and there's this sense of accomplishment when you're able to streamline and manage all of that efficiently."
Big thanks to What's Next copy editor Amy Stern.
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