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Runtime: 10:11
0:00 New Tesla Y Gets 200,000 Orders in China
1:10 Repeal of California’s EV Rules Blocked
1:56 Mexican BMWs Not USMCA Compliant
3:07 NADA Tells VW To Drop Scout’s Direct Sales
4:22 Toyota Intros $15,000 EV In China
5:37 Honda Reveals New EV Developed with Dongfeng
6:30 Electrify America Sees Big Growth In 2024
7:07 Xiaomi SU7 Ultra Owners Immediately Flip Vehicle
7:47 Autoline Poll on Tesla Sales
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
NEW TESLA Y GETS 200,000 ORDERS IN CHINA
We’ve been reporting all week about how Tesla’s sales are plummeting in Germany, France, Australia, China and a number of other markets. Some people say it’s all because of Elon Musk’s politics and his role in the Trump Administration. While others say it’s because customers have been waiting for the refreshed version of the Model Y. And it looks like that’s certainly the case in China. A media report from 36kr, which is described as the Tech Crunch of China, reports that Tesla has 200,000 pre-orders for the new Y, which went on sale last week. That would be a nice boost for the company if it can turn a good amount of those orders into sales. 36kr also says Tesla will launch the Cybertruck in China this year. Even though pickups don’t sell well as passenger vehicles in the country, Tesla believes it will attract younger buyers to the brand.
REPEAL OF CALIFORNIA’S EV RULES BLOCKED
The Trump Administration’s effort to revoke California’s ability to set its own emission standards just hit a setback. Last month, the EPA submitted three waivers issued to California for review by Congress and said that it considered those waivers eligible for repeal by Congress. And with Republicans controlling Congress, it looked like California’s waiver would be revoked. But yesterday, the Government Accountability Office ruled that California’s exemption to set its own standards should be considered an order and is not subject to review or repeal by Congress. Eleven other states have adopted California’s standards. But this looks like this could be turning into a big legal battle.
MEXICAN BMWs NOT USMCA COMPLIANT
As we reported yesterday, President Trump paused 25% tariffs on vehicles from Mexico and Canada for a month, as long as they comply with the USMCA. Volkswagen, which relies heavily on Mexican-made cars sold in the U.S., said all of its cars are compliant. But BMW told Reuters that it’s cars are not compliant. BMW exports the 2-Series coupe, the M2 and the 3-Series from Mexico to the U.S. To be compliant, 70% of the steel and aluminum in a car have to be made in North America; so does 75% of the content; and at least 40% of the vehicle’s labor content has to be done with jobs that average $16 an hour. Also, the core components, like the engine and transmission, have to be made in the U.S., Canada or Mexico. But right now, if an automaker’s car is not compliant, they only have to pay a 2.5% import tariff, and BMW obviously decided it was just easier to eat that cost. We think Trump’s end goal is to raise the amount of North American content required, raise the average wage, and raise the tariff on vehicles that are not compliant.
NADA TELLS VW TO DROP SCOUT’S DIRECT SALES
The war of words between the Volkswagen Group and the National Auto Dealers Association over Scout’s direct sales strategy just went up another notch. Last July, the NADA sent VW CEO Oliver Blume a letter voicing their displeasure but he ignored it. So the NADA has now sent a letter directly to Blume and other key executives, telling them that by-passing VW dealers to sell direct was misguided, that it violated U.S. dealer franchise laws and promised legal fights in all 50 states. VW says Scout is an independent startup that has never used a dealer network and so it doesn’t have to. The NADA says Scout is part of VW, and so it has to use dealers. There is one thing that we can say for certain, the lawyers are going to make a lot of money before this gets settled.
TOYOTA INTROS $15,000 EV IN CHINA
It looks like Toyota is starting to have some success with its EVs in China, but only with the models that it didn’t develop itself. The lone EV the brand did develop, the bZ4X, performed so poorly that the company stopped all deliveries in China. But the bZ3 sedan, which was developed with BYD and features BYD motors and batteries, saw sales go up 45% in January to over 3,500 units. And the newly released bZ3X, which is largely based on an electric SUV made by its joint venture partner GAC, got so many orders within the first hour of its launch that it crashed the company’s servers. The model rides on a 400-volt architecture that’s front-wheel drive with either a 150 kW or 160 kW electric motor and features new-to-the-platform LFP batteries, the biggest being nearly 68 kWh, and providing ranges between 520-610 kilometers or about 323-380 miles. Base price starts just over $15,000, but there will be higher spec versions that have lidar and ADAS tech from autonomous startup Momenta.
HONDA REVEALS NEW EV DEVELOPED WITH DONGFENG
Speaking of new Chinese EVs from a Japanese automaker, Honda is launching a new SUV, called the S7, that it developed with its joint venture partner Dongfeng. The model is slightly shorter than a Tesla Model Y and is based on a 400-volt architecture. It comes standard with a nearly 270 horsepower electric motor that drives the rear wheels as well as a nearly 90 kWh battery pack that provides 650 kilometers or just over 400 miles of range on the Chinese test cycle. There’s also a dual motor AWD version that keeps the same battery, but it makes almost 470 horsepower and will do 0-100 km/h in 4.6 seconds. The S7 is capable of Level 2+ hands-free driving and will start right around $36,000 in China.
ELECTRIFY AMERICA SEES BIG GROWTH IN 2024
EV charging network Electrify America saw big growth last year. At the end of 2024, it had more than 4,800 DC fast chargers, at more than 1,000 stations located in 47 states and 7 provinces. Due to its expanding network, consumer demand increased 50% to more than 16 million charging sessions. And its stations delivered 600-GWh of energy last year, which was up 65%. Electrify America expects the growth to continue this year and is planning to expand its network by 30%
XIAOMI SU7 ULTRA OWNERS IMMEDIATELY FLIP VEHICLE
Xiaomi’s first performance EV, the SU7 Ultra, only recently launched in China, but it’s already showing up on second-hand sites with some people possibly looking to cash in on the car’s popularity. Not surprisingly, CarNewsChina reports that models are being listed for over the original asking price of about $73,000. It seems like some could be overcharging between about $2,000 to a little over $16,000 more for the vehicle. But it’s hard to tell if these are all base models and compared to what some U.S. dealers overcharged for Hellcats and Demons, the Xiaomi prices don’t seem too ridiculous.
AUTOLINE POLL ON TESLA SALES
Before we go, we’ve got another poll where we’d like to get your insight.
Why do you think that Tesla has seen a big drop in sales around the world?
1. Car buyers are running away because of Elon Musk’s politics.
2. Customers have been waiting for the new Model Y.
3. Tesla’s sales are always low until the end of each quarter.
4. #2 and #3.
You can vote by going to the Post tab on the Autoline Network home page, and we’ll post it in the comments section for today’s show on the Autoline website. And on Monday we’ll review the results.
But that brings us to the end of today’s show and this week. Thanks for making Autoline a part of your day and I hope that you have a great weekend.
Thanks to our partner for embedding Autoline Daily on its website: WardsAuto.com
The refreshes of the 3 and the Y were long overdue. I have not bothered to look at their substance, but I am referring to the huge improvement of their front ends. The original designs looked like a pig’s nose. For many buyers, that alone is a reason not to buy the ugly thing. The new designs or refreshes fully correct this glaring fault.
I do not know where I can find your poll it was not under today’s show video or comments) but I can state my two cents here.
Most makers spit our brand new models every 4 years, for mass produced cars like the 3 and the Y, but they have been the same since 2017 for the 3 and maybe 2018 for Y. That makes them 8 and 7 year old designs today. The refresh was mild and does not count as a new model. THis explains part of the sales decline.
Another part is the extreme lefties who buy BEVs ‘to clean up the environment” now hate Musk because of his support for Trump
One thing that is not a problem is price, both the 3 and the Y, after repeated discounts, are very affordable, and the 3 is sure below the AVERAGE price of a new mass produced US car sold.
It also seems the Cybertruck was a silly failure. Musk said right at the beginning that they developed it as a joke, and it has been a painfully silly joke. The truck has a few smart design features that explain its weird looks, but overall it is not a serious vehicle.
On the contrary, the Semi seems far more serious, and it is a pity Musk foolishly wasted Tesla’s time and $ on the “Star Trek” (Or Conehead mobile) CT instead of developing and producing the Semi.
Stepping down from my box.
#2, Inventory was at 16 days in December, China new year, must combine January and February as it changes from month to month.
Here’s the Autoline Poll:
Why do you think that Tesla has seen a big drop in sales around the world?
1. Car buyers are running away because of Elon Musk’s politics.
2. Customers have been waiting for the new Model Y.
3. Tesla’s sales are always low until the end of each quarter.
4. #2 and #3.
#1 you can’t market a vehicle to eco-hippies, then switch your personal politics to something else.
Also, did you ever explain how many people use the California rules versus the non-California rules? I want to know how close to 50/50 it is.
My favorite BMW now sold in the US, the 2 Series coupe, doesn’t comply with New NAFTA. I hope they eat the cost of tariffs, or spread it out over high volume products like X5, rather than pricing the 2 out of the market, or discontinuing it in the US.
I’m mostly #1 on the poll, at least in the US and Western Europe, but a little of #2.
Autoline Poll – While admitting that Tesla has not been on my shopping list in the past, it is much further off it due to Elon Musk actions. In essence, my vote is for #1.
After Twitter/X, it was clear the CEO of Tesla had become distracted. I never faulted his private companies but I sold all my TSLA stock because poor management leads to corporate disasters: (1) capital wasted on products where there are too few customers, and; (2) lost technical advantage.
I sold my TSLA stock in 2024 and moved that capital into a solar roof system. An independent contractor offered more performance. With a weather and utility company delay, I even “short sold” some TSLA stock instead of parking the final funds in an inflation taxed, savings account.
I have a 2019 Model 3 with 150,000 miles and ~85% battery degradation but even Tesla offered only $8,500 trade-in. I can’t afford to let it go so I’ll continue my customization and driving until the wheels fall off.
I vote #5, all of the above. In addition, the increasing quality and variety of EVs from competitors are giving shoppers more viable non-Tesla choices.
Before the poll I was in the number 2 camp. With this poll however I am on board with the number 4 camp.
With all that said, it is not going to get easier for Tesla as things move forward. They are basically where GM was back in the day and there is only 1 way to go as more competition enters the market. Maybe they will make product that can hold peoples interest and keep them on top, but that is not looking too likely at the moment. They are just not interesting things to look at both exterior and interior. Hopefully something more engaging/exciting is in the works for a later release.
The best thing that could happen to Tesla would be for Elon to completely remove himself from the company. As long as he continues with his crusade of firing the most knowledgeable employees in the US government, and campaigning for neo-Nazis in Europe, Tesla sales will suffer in most of the world. He might be able to do well in Russia, if there is a market for EVs there.
Regulus, the poll is on the autoline network youtube page at https://www.youtube.com/@AutolineDetroit/community
I really believe it is mostly #1, as I had even mentioned that in the comments a few days ago. “All of the above” is probably the complete answer, but if you are looking for the main reason I would say #1.
#1
1
I think all the questions in the poll are correct, but it depends, as someone else said, what part of the world you live in.
The think that is crazy about Tesla, is that it arguably still the tip of the arrow in battery and motor technology, as well as software, but they have done so little with the styling that, seemingly, they are being left behind. If and when solid-state batteries come to market, other OEMs may be closer on range and faster charging
#1. I believe that business and politics needs to be separate and especially in the current USA political environment. The risk is to alienate those who have different views and that in turn can hurt businesses. Pretty obvious
Tesla is near “tip of the arrow” in powertrain efficiency, but they are the feathers of the arrow in operator interface friendliness. Does styling a few years old matter much? I once bought a VW with 20-some year old styling, and didn’t mind.
They’ve saturated the market for Tesla style vehicles at Tesla prices and the competitors are starting to offer reasonable electric alternatives. Start offering bigger more traditional looking cars and trucks or better yet a couple cheaper models. Otherwise the’yre topped out for now…….
Kit —
That is my point. The text under the skin is still leader of the pack, but the part the customer sees and interacts with, less so. While the new physical updates on the S, Y and 3 are great, one could argue that they’re not remarkable. Not to say that those vehicles need remarkable transformations, yet, the slew of incoming new product, who are closing the gap between them, something eye popping would be welcome. That said, other OEMs have GOT to make big moves against automakers like Tesla, but it appears that slack hand is letting them.
wmb, you seem to over-estimate the wonderfulness of Tesla cars. Yes, a Model 3 is a little more efficient than, say, an Ioniq 6, but the 3 has lots of road noise, at least the one I drove a couple years ago, unfriendly controls, and the difference in energy cost would be about $120 a year, with home charging. From what I see in CR’s tests, the Model Y and Ioniq 5 would have similar plusses and minuses, but the difference in energy use is even smaller. Then, the Hyundais have 3 regen levels and coast mode, while the Teslas do not. The Ioniq 5 has the Tesla advantage, for those who use EVs for road trips, of having the Tesla charge connector.
Tesla Sales slump:
For Germany and the US —- A. Mr BlackEye is doing it to his company with polarizing extracurriculars. Perhaps the BOD will speak with Elon in the language he speaks, falling stock compensation in proportion to share price fall.
Outside US and Germany, D
I’d been considering a M3 given it’s improved efficiency and refreshed looks, but with his tactics to try everything short of hacking US Treasury mainframes, hell will freeze over first before I buy an Elon product.
Talking with my daughters and neighbors, Musk is now reviled and I suspect that will be playing a major role going forward for the next year or more, especially in Europe.
In China, the Chinese are understandably excited about their home grown products. That is here to stay.
And while Tesla has made impressive under the skin engineering and manufacturing advances to decrease cost, their styling has remained underwhelming (to be kind).
I personally considered a Tesla in the past, but did not like the center console centric UI, no HUD, and the lack of dedicated controls.
And yeah, I know Tesla sales are end of the quarter driven, but I don’t think that is really the story here.
I like the question but one needs to separate 3 from Y sales. 3 sales are flat while Y sales are in steep decline with Tesla ramping production at all 4 factories at the same time. We will see shortly in just a few months the result of ramping and brand loyalty at Tesla. GM for instance is bringing in some Chinese cars that sell quite nicely, even though heavy tariffs already and most Americans are resistant to buy yet it is fast changing. I still remember people saying about that cheap Japanese stuff in the late 60s then the choice of Pintos or Vegas. Mr. Market will soon pronounce victory to the ultimate winner perhaps robots, robotaxis, maybe even a portal hole to travel at the speed of light like Star Trek in the 60s as well.
Kit —
When I say tip of arrow, I mean technology surrounding the powertrain. Batteries, motors and the operating software systems that run the them. Their 48 volt tech and gigacastings, most of which are things the customers will never see or feel and few complaints about. Not the build and or perceived quality that has been pointed out by many. While Tesla has done a number of updated behind the metal, a lot goes unappreciated, because to look at their products, there has been so little change to that metal. How can you tell the difference between the Tesla’s with their fairly new heat pump and those that do not have it? The model with the new heat pump is better and it would be worth it to get the new model, but at the end of the day, no one would ever know the difference! Yet, that new EV from Brand X looks just as good as the Tesla, has range that is closer and it has a heat pump too!
There’s a lot of talk here about Teslas being the most efficient, but Lucid has had them beat since they first came out. They are more efficient, longer range, faster (check out the Sapphire), and most advanced technology. Unfortunately, they are also priced accordingly. I know Kit said he wouldn’t buy one because they may go out of business, but I am sure they will stick around; Saudi Arabia has not only promised Billions to Lucid over the next few years, but the Saudis are now the majority shareholder along with The Vanguard Group, BlackRock, and State Street Corporation. They have also signed a long term contract with Aston Martin to supply motors, powertrains, and battery systems. I have driven them, and I’m impressed, but I haven’t invested yet!
Next year, they are supposed to release the first of 3 more affordable vehicles. Based in California and built in Arizona, I think Lucid is a viable option that will “out-Tesla” Elon’s Tesla.
Ukendoit —
The original comment had to do with Tesla, whike still having class leading drivetrains and the software and other tech to manage them, has done little to keep there vehicles sheet metal fresh, as others have gained on them regarding EV efficiency. One of those is the aforementioned Lucid, but that is not to say that OEMs like Volvo, Mercedes and BMW will soon be selling products that will not only have modern and contemporary styling, but promise competitive range/efficiency, as well as fit, finish and preceived quality that are miles ahead of that of Tesla. Sure, it seems that Lucid may, arguably, have Tesla beat on efficiency, with other automakers bringing new(er) products to market, not being the most efficiency may still be good enough for the average consumer. I have seen so many Equinox and Blazer EVs here on the westside of southeast Michigan. While it has been said that GMs current EV motors are not the most efficient, the right price and newer styling has certainly made the difference for many in this area!
….that is the Westside on Metro Detroit, in southeast Michigan.
It looks like a very mainstream car brand, with real dealers which work on them, has the most efficient EV now in the US market.
https://www.cars.com/articles/top-10-most-efficient-electric-cars-447501/#:~:text=The%20list%20below%20is%20ranked,Electric:%2029%20kWh%20(tie)
wmb,
You bring up a topic about TESLA vehicles that may have been unintended. TESLA was viewed by many to be a “luxury” car based solely on its price. It never once was a luxury car, but it has always been priced as a luxury car. So now you see mainstream cars come in such as the Blazer/Equinox which have the same level of “luxury” of a Tesla, updated styling, and the price of a mainstream vehicle. So why buy the more expensive vehicle that offers the same thing as the cheaper model? That puts TESLA into a bit of a pickle. Do you lower the price of the TESLA to mainstream brand levels and crush the existing owners resale value? Do you finally spend some cash and enter the true luxury realm but not raise your price? Do you stay where you are at an accept lower volume? Do you try your hand at luxury features and increase the price? There are no good roads where they are at. They are going to lose volume whichever road they take.
Does Tesla have better tech under the skin than a Blazer/Equinox? They do but in very subtle ways that a non-tech focused buyer is going to notice or care about. When was the last time someone bought a Chevrolet Malibu over a Toyota Camry because the Malibu had a fancy subframe manufacturing process? So while Tesla bleats on about Giga this and Mega that, People don’t care about that stuff. They care that the car drives, has heat/AC, host of standard tech features like Carplay/Andriod Auto, reliability, low insurance premiums, and high resale value. Giga this and Mega that isn’t moving the needle with buyers unless you are part of the small subset of buyers that geek out over that kind of thing. It can move the needle if Giga this and Mega that is connected with some tangible benefit such as price, resale value, insurance premiums, or reliability as compared to the competition. But it just doesn’t give any tangible benefit to a buyer. It only makes it cheaper for TESLA to produce and increases their profit per vehicle while offering no real benefit to the consumer. It was always a weird bragging point to me when TESLA started with the Giga this and Mega that talk.
Kit, it is interesting that the report you showed states the Kia and the Lucid tied, since they used the same energy to drive the same distance, but they listed the Kia first because it was lighter and cheaper. I get that its better because its cheaper for driving the same distance, but just me nit-picking, wouldn’t the Lucid still be mere “efficient” if it weighs more but still uses the same amount of energy to drive 100 miles? I have no ties to Lucid, so I’m glad a cheaper vehicle matches their efficiency and I’m excited to see what the competition brings!
What provinces is Electrofy American in