AD #3392 – Used EV Prices Soaring; Got a Tesla Share? Now You Have 3; California Bans ICEs in 2035
August 25th, 2022 at 12:03pm
Listen to “AD #3392 – Used EV Prices Soaring; Got a Tesla Share? Now You Have 3; California Bans ICEs in 2035″ on Spreaker.
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Runtime: 11:04
0:07 Got a Tesla Share? Now You Have 3
0:50 California Bans ICEs in 2035
1:55 And Hainan Bans ICEs in 2030
2:25 South Korea & EU Oppose U.S. EV Incentives
4:01 Hyundai Invests in Chip Maker
4:24 The Opel Van That Opel Never Knew Existed
5:14 Mercedes EQE Rolling Down the Line in China
5:38 Brabus Aero Kit Gives EQS More Range
7:01 Used EV Prices Soaring
7:54 Wey PHEV Goes Full Retro
8:51 Toyota’s Hitchless Towing
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GOT A TESLA SHARE? NOW YOU HAVE 3
Yesterday Tesla’s stock closed at $891 a share. Today it opened at $301. And investors are loving it. That’s because they got two shares for every share they owned. It’s what they call a 3 for 1 split. If you had one share now you have three. Elon Musk has said in the past that Tesla stock was too expensive for many retail investors. But the split also gives him a lot more shares. If past history is any indication, Tesla stock will probably go back up near its pre-split levels. But not immediately. Analysts say investors tend to back off buying shares for weeks after a stock split.
CALIFORNIA BANS ICEs IN 2035…
California is getting serious about slamming on the brakes for internal combustion engines. The California Air Resources Board announced new rules banning sales of new ICE vehicles by 2035. And it actually starts sooner than that. In 2026, 35% of sales must be zero-emission. That ramps up to 68% by 2030 and 100% in 2035. BEVs, plug-in hybrids and fuel cell vehicles qualify as zero-emission, however hybrids can only account for 20% of an automaker’s lineup. EVs currently account for 15% of the Californian market. There are some exceptions, ICE vehicles won’t be banned from roads, you can still buy used ICE vehicles, and the state won’t prevent residents from buying a new ICE out of state and bringing it into California. The state estimates that the new regulations will cut CO2 emissions in half by 2040.
… AND HAINAN BANS ICEs IN 2030
And it’s not just California. The Chinese province of Hainan Island also announced an ICE ban starting in 2030. It’s the first province in China to ban ICE vehicle sales. It’s aiming for EVs to account for 45% of its overall vehicles by that time and it will offer tax breaks to get there. Cities in the province will also implement “zero-emission zones” where ICE vehicles will be banned from driving.
SOUTH KOREA & EU OPPOSE U.S. EV INCENTIVES
South Korea and Europe are really mad over the U.S.’s new Inflation Reduction Act, which excludes EVs built outside North America from receiving tax credits. South Korea wants to cooperate with the EU to fight the rules but it hasn’t revealed any concrete plans yet. The Korean Automobile Manufacturers Association said it will release a joint statement with the European Automobile Manufacturers Association next month. Korea said that the new U.S. law could impact as many as 100,000 EV exports annually. Here’s our Autoline Insight. South Korea and the EU have a legitimate beef and could likely win in court. But it will take years for that to happen.
HYUNDAI INVESTS IN CHIP MAKER
Hyundai isn’t messing around to make sure it never faces a chip shortage again. It’s investing in a chip startup called BOS Semiconductors, which is based in Korea. We don’t have a lot of details yet. BOS was only formed this year and Hyundai doesn’t say when it will start getting chips. But it says it will continue to make more investments like this.
THE OPEL VAN THAT OPEL NEVER KNEW EXISTED
Automakers keep extensive archives detailing their history, but photos recently came up for auction of an Opel van that the company had no idea ever existed. The prototype was designed in the mid-1930s and scribbled on the back in pencil was 1.5-23 COE. The 1.5 stood for the engine size, 23 was for the approximate wheelbase and COE stands for cab-over-engine. It looks to be a fully developed and running prototype with rearward hinging front doors. But Opel suspects it never went into production because of preparations for World War II. And had it gone into production, Opel would have been forced to stop building them after Germany lost the war.
MERCEDES EQE ROLLING DOWN THE LINE IN CHINA
Sales of the Mercedes EQE officially kicked off in China. It’s the first made-in-China model that rides on Mercedes’ electric architecture and will feature up to 10 exclusive upgrades, including Tencent’s video streaming service and optimized rear seats. Pricing ranges from about $77,000 up to over $85,000.
BRABUS AERO KIT GIVES EQS MORE RANGE
Speaking of Mercedes’ electric sedans, tuning company Brabus worked its magic on the EQS, but maybe not in the way you were expecting. Rather than go after power upgrades, it mainly went after aero. The exposed carbon fiber package reduces aerodynamic lift by 40% and lowers the vehicle’s overall coefficient of drag by over 7%. Between 60 and 85 MPH range is increased by about the same amount, 7%. The Brabus package also includes unique 22-inch wheels and an active suspension system that can lower the ride height for better handling. Pricing for the car starts at nearly $174,000, which is about $70,000 over the base car.
USED EV PRICES SOARING
This is a really good sign for EV adoption. Prices for used EVs are soaring in the U.S. iSeeCars reports that used EV prices were up a staggering 54% in July compared to a year ago, while used ICE vehicles were up just 10%. One reason used EVs demand is so high is because of soaring gas prices, better public charging, and a lack of inventory of new EVs. Somewhat surprisingly, the Nissan Leaf saw the biggest price increase, up 45%. A used Leaf now costs about $28,800 on average. But in terms of pure dollars, the Tesla Model S spiked the most, with its price jumping nearly $18,000 to $83,000 on average.
WEY PHEV GOES FULL PT RETRO
The newest PHEV from China sure looks like it took its inspiration from Chrysler’s PT Cruiser, with maybe a bit of the coffin-nosed Cord 810 and a 1953 Buick Roadmaster mixed into the front end grille. In fact, a lot of the design elements look like they were lifted right out of an old J.C. Whitney catalog. Even so, it sure is a head turner. This is the Wey Yuanmeng. Wey is one of the brands from Great Wall Motors. This PHEV is powered by a turbo 1.5 liter and an electric motor with a combined 238 horsepower. It reportedly can go an impressive 125 miles in pure electric mode. No word yet on what it’s going to cost but the car makes its official public debut tomorrow and when we get that info we’ll let you know.
TOYOTA’S HITCHLESS TOWING
Yesterday, Toyota demonstrated what it calls hitchless towing, where one car connects electronically with another car and follows it wherever it goes. For the demo, Toyota used two Sienna minivans going through turns and simulating lane changes. It can even do a slalom course. Toyota says this would be perfect for a small group of cars going to a cottage or a football game. The following driver can take control at any time, and the system will only allow turns and lane changes that are safe for the following cars. But once the cars are connected, it doesn’t even need a driver in the following car. Impressively, hitchless towing only requires minimal hardware and software, and a wireless connection between the cars. Conceptually, hitchless towing is a lot like truck platooning. But platooning is for limited access highways, while hitchless towing is meant to be used anywhere. This is still a technology that’s under development, but we wanted you to be some of the first people to see it.
AFTER HOURS & COMMERCIAL EVS
We’ve got a different Autoline After Hours coming up this afternoon. We actually recorded it Saturday morning at the Dream Cruise in Detroit. But it’s not about the Dream Cruise, it’s about how electric trucks, vans and buses are catching on faster than electric cars. We’ve got a couple of execs from Navistar and a sustainability expert weighing in on why the commercial truck market is so receptive to electric vehicles. And you can catch that show at its regularly scheduled time at 3 pm eastern time on our Autoline website and YouTube channel.
But that’s a wrap for today.
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Comments (30)
August 25th, 2022 at 12:18 pm
The California Air Resources Board (CARB) has tried numerous times over the years to set overly ambitious rules for the percentage of Zero emissions vehicles which have failed miserably. Deloitte 2022 Global Automotive Study found more than two-thirds (69%) of Americans said their next vehicle won’t have any kind of electrification. Most auto analysts are saying that by 2030 EV sales will only be somewhere in the 20′s percent range.
August 25th, 2022 at 12:20 pm
Anyone want to guess what will happen to the used ICE market in Cali over the next 10 years? Those that do not want EVs will hold onto their gas cars and those that need a car are going to be faced with used ICEs that cost as much as a new EV. But I suppose that’s what they want to happen. Either way they will pay much more for a vehicle in the coming years.
So can you buy a ICE out of state and still register it in Cali after 2035?
August 25th, 2022 at 12:23 pm
The Wye PHEV looks more like one of those old VW bug based kit cars. Just needs a fake Rolls Royce grill!
August 25th, 2022 at 12:24 pm
The WEY car looks to me like a love child between a HHR & vintage Volkswagen Bug.
August 25th, 2022 at 12:25 pm
Another reason of thousands to avoid California and it’s spread to free America
August 25th, 2022 at 12:28 pm
@2 In his report, Sean said that California would still allow new ICE vehicles purchased out of state to be registered there.
Finally, a car company is selling vehicles with unique styling. Thanks WEY! It may not be everyone’s cup of tea, but it may spur other automakers to sacrifice a little efficiency in the name of attractive styling.
I think the term towing isn’t really appropriate for this new technology. The platooning label seems more accurate. And, who says platooning is only for trucks on limited access highways? That is just the first example of the concept.
August 25th, 2022 at 12:30 pm
No Wey , for me!
August 25th, 2022 at 12:54 pm
@3, 4, 7 WEY. The vehicle for people who do not want to make anybody envious.
August 25th, 2022 at 12:57 pm
Tesla’s growth story is about to hit a brick wall. Europe is in a recession and China is quickly deteriorating. I predict that Tesla stock will be double digit in the next 8 months. That explains why Elon Musk has already dumped over 30B in stock and continues selling. HGe knows…
August 25th, 2022 at 1:37 pm
6 Thanks must have missed that comment. So do you suppose California dealers might have an issue with people flocking to Oregon, Nevada and Arizona to buy their new cars while their hands are tied to only selling EVs? I mean if California is actually serious about banning ICE why would they allow residents to even buy out-of-state ice’s? Cali has the 6th largest economy in the world. Doesn’t seem like this is a smart move. Pretty sure they’ll back peddle this mandate once those sales all go out of state. Sure Cali still gets the sales tax but any profit goes to the dealership in the surrounding states.
The WEY is very reminiscent of the 1970′s VW square back wagon and the beetle. Either way not much of an original design. Typical Chinese knock off/ripoff designs.
August 25th, 2022 at 2:04 pm
The WEY looks great! No, I’m not serious, but it’s a lot more interesting than the ~200 CUVs in the US market that all look alike.
10 I’m guessing CA might allow only used ICErs from out of state, and not new ones. That comes to mind with the selling of my 2004 Jetta TDI wagon. It went from Florida to California. That vintage of 1.9 TDIs did not meet California emissions rules to be sold there new, but could be imported into the state used. I don’t know what the rules were, but mine was about two years old with ~30K miles.
August 25th, 2022 at 2:14 pm
Is anyone really naive enough to think if Cali is going ban brand new ICE which are and will be more efficient than older engines ever were that they won’t ban those also? just going to slip the noose over you and then give it yank. This pie in the sky BS will have us looking like Venezuela soon . The only green these politicians care about is money , yours. Unless you are holding EVERY country (looking at you China and India) to the same standards this is nothing more than a theft of wealth.
August 25th, 2022 at 2:18 pm
3 I remember the Rolls-Royce grilles on bugs, and also ’32 Ford looking front ends. WEY probably didn’t use a Rolls grille, because that would be too pretentious, or more likely, they’re saving that for a future, larger car.
August 25th, 2022 at 2:18 pm
Lambo , what has California done that has actually been smart since Newsom has been in office?
August 25th, 2022 at 2:27 pm
9 The rate of growth seemed unlikely to go on forever with new competition, but yeah, a near-global recession, would greatly slow the growth.
How do you find out about Elon’s stock dealings? Is that published somewhere, or do you have access to info as a stock holder?
August 25th, 2022 at 2:55 pm
14 Something Newsom hasn’t done is to inject culture wars and book bans into the public schools, as in Florida.
August 25th, 2022 at 3:00 pm
14 True! Its just sad because other states see what Cali is doing and think “we too should also be foolishly green”. They somehow think California is the brainchild of great ideas.
I guess they can set a high expectation and roll it back when they realize the error of their ways. Just sad that it will likely come at a cost to the working man.
August 25th, 2022 at 3:07 pm
11 I’m not appalled by the design that much other than its a copy. I saw somewhere some plans for a 4 door retro bug and after looking at it again that’s real similar. Really surprised it still has chrome plated steel bumpers. That’s unheard of anymore and really makes the design look dated. Not like it was even a freshened up throwback. It looks like its right out of the 1960-70s.
August 25th, 2022 at 3:34 pm
Tesla is in the news almost everyday for something either with stock news,space news or any manner of things and the amount of money involved. Amazing what Mr Musk has been able to do.
August 25th, 2022 at 3:52 pm
19 A non-SpaceX rocket should be making the news. The first test flight of the Artemis rocket to the moon is to go Monday morning, with a launch window of 8:33-10:33 AM EDT.
August 25th, 2022 at 4:01 pm
The Toyota hitchless tow – what happens when someone cuts in between? Don’t see this being deployed without a driver in each car
August 25th, 2022 at 4:13 pm
20 yes that has been getting big press around here. Can you see it from where you are?
August 25th, 2022 at 4:58 pm
22 Where are you?
I’m in Indiana for the summer, so I can’t see it from here, but I could see it from my place in Florida, about 18 miles from the launch site.
https://www.google.com/maps/place/Kennedy+Space+Center+Launch+Complex+39b/@28.5040857,-80.8690551,11z/data=!4m22!1m16!4m15!1m6!1m2!1s0x88e0a7956705bdd5:0x83ffa3c9473b2ed1!2s5803+North+Banana+River+Boulevard,+Cape+Canaveral,+FL+32920,+USA!2m2!1d-80.608971!2d28.371547!1m6!1m2!1s0x88e0bbb3caf4ea65:0x5b7fc6372378346d!2sKennedy+Space+Center+Launch+Complex+39b,+Kennedy+Space+Center,+FL!2m2!1d-80.6204703!2d28.6263826!3e0!3m4!1s0x88e0bbb3caf4ea65:0x5b7fc6372378346d!8m2!3d28.6263826!4d-80.6204703
I’ll watch TV news in the next day or two and see if they mention it.
August 25th, 2022 at 5:32 pm
22 i knew you had a place in Florida, I’m on the West coast of Canada,but the news feeds around here are keeping up on the launch.
August 25th, 2022 at 6:10 pm
24 It looks like you’ll need to be up early, 5:33 am to follow it live.
August 25th, 2022 at 6:29 pm
Sean, with all due respect, I have to disagree with you on foreign OEMs stance of the federal tax credit. As I understand it, what they seem to be saying is that, the US government has no right to require US citizen derived tax money, can be given to US citizens, to only be used on vehicles built, in whole or in part, in US! What right does any our nation, or national interest, have to dictate how another country uses their tax funds on their citizenship?! It’s like if parents invite the neighborhood children over to enjoy the birthday party they are throwing for their child. Not only do the other parents and children not have to bring gifts, but they can play and enjoy all the games, food, balloons, face painting, candy and fun that their child will enjoy. The only exception, will be a small personal birthday cake, that they had specially prepared JUST FOR HIM! What right do the other children and their parents having, to attempt to force these parents to give a special cake to their children as well??? It’s not their home, they’re not paying for the party in any way and it’s not like all the other children are being excluded from any of the other activities at the party! More importantly, they can do the same thing with their own children, in their own homes, if they care to. It would be like a group of kids that come over to play video games, at their friends house. While they’re playing, the father of the child whose house are there over, brings his child a new video game that he purchased. Then the child’s friends get mad at the father, for he did not bringing each one of them a similar video game. This is what I’m getting at, with the protests of the foreign OEMs and their country’s leaders. While there may be a free trade agreement in place, no one is saying that they can’t sell their vehicles in the US. As far as I know (and I don’t know much), no where in that agreement, is there anything saying that a government in that agreement, can’t reward OEMs that build there vehicles locally. Matter of fact, most of what is built here by the Big Three, doesn’t qualify to receive the tax credit either. From what I have seen and herd about the new/proposed law, it seems to level the playing field, with a bend toward those (anyone!) who build locally, to get the tax credit! Not to get all geo-political, but when you consider the trade deficit that exist between US and some of the countries that are up in arms about the tax credit, it becomes a little bet of a head scratcher. For it seems, if you look at it side ways, that the US is only doing, what their governments have been doing to benefit those foreign automakers in their home markets, for years! Consider this too, while these vehicles may not qualify for the ‘federal’ tax credit, there are a number of individual states and municipalities, who are giving tax relief for buying an EV! I get it that they feel that the incentives, will give vehicles made here and advantage, but they can fix this buy building their vehicles here! The thing is, how is it fair that they get to build a vehicle in a off shore plant at a much lower wage then those built locally (to save the OEM money), then get mad when the local federal government gives incentives to buyer who purchase a vehicle that was made locally?! Unless there is more to the law that I am unaware of (and there probably is), I don’t see where the consternation lies, or where the US is wrong for taking their citizens tax money and using it to give them a tax break, for buying something that was built here!
August 25th, 2022 at 7:10 pm
26 It may be up to the WTO to decide what international law says.
To us, it’s partly philosophical. The credits are, ostensibly, to encourage purchase of EVs, but in the current form, also to produce US employment. Also, the credits favor huge vehicles over more luxurious smaller ones, and they favor farly wealthy people over less wealthy. I don’t like those last two aspects.
In the scheme of things, the tax credits don’t cost much. Even if a few million people use the full $7500 credit, it will cost a fraction of what that rocket launch Monday will cost.
August 26th, 2022 at 8:04 am
9) The recession is going to hurt all OEMs and it will not be limited to Europe/China although those countries will be hit the hardest. The USA is going to feel some serious pain in this recession as well. It will effect manufacturers that make vehicles in the 60-100K range the most as consumers switch to cheaper vehicles. Rich people can afford cars during a recession, but most truly rich people focus all their cash on appreciating assets that they can buy cheap. Cars don’t make the cut and they will simply drive their 2 year old Mercedes another 3 years instead of replacing it.
August 26th, 2022 at 8:17 am
28. The truly rich continue to buy Rolls-Royces, Ferraris, and Lamborghinis, as they bought Duesenbergs during the great depression.
August 26th, 2022 at 9:03 am
26 I agree with what your saying and that the incentives do not leave out any foreign automaker just as it does not specifically include domestic manufacturers. The requirements are the same for everyone and I see it as no violation to free trade. We are placing a tariff on anything and we are not favoring one manufacturer over another. They all need to meet the same guildlines. Have US content and have a % of US manufacturing. All OEMs can easily take advantage of these stipulations just like back when China required anyone opening a plant in China had to have a partnership with a Chinese firm. They required % content on labor and parts and everyone wanted in on the Chinese market and rushed to agree to the terms to hesitation. Yet when the US wants to offer (NOT A REBATE, NOT CASH) but a tax break to any American that buys a vehicle that meets the criteria they have a problem with it. Id say too bad and if that means breaking the free trade agreement then so be it.