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Runtime: 11:08
0:00 Tesla’s Q1 Net Profit Slumps 71%
2:26 Auto Groups Ask Trump for Tariff Relief
3:20 Xiaomi Delays Launch of YU7 SUV
5:29 California Dealers Sue VW & Scout Over Direct Sales
6:18 BYD Resets Strategy in Europe
7:21 Nissan Reveals 1st Electrified Pickup
8:25 Honda Unveils Two EV Models in Shanghai
8:59 Lexus Reveals All-New ES Sedan
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This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.
TESLA’S Q1 NET PROFIT SLUMPS 71%
Elon Musk is cutting the time he spends as head of the Trump Administration’s Department of Government Efficiency down to one or two days a week so he can devote more effort to Tesla. Musk made the announcement during the company’s Q1 earnings call, but he is still expected to remain an advisor to the president for the rest of his term. Based on Tesla’s performance we can understand why the CEO would want to spend more time with the company. It delivered roughly 337,000 vehicles in the first quarter, a drop of 13% compared to last year. Tesla says part of that has to do with the changeover to the new Model Y. But combined with falling vehicle selling prices and increased operating expenses, the company’s revenue from its automotive business dropped 20%. However, a 67% increase in Tesla’s energy storage products resulted in its total revenue going down by 9% to a little over $19.3 billion. But that growth might not be sustainable because Tesla says the Trump Administration’s tariffs will have a bigger impact on its energy storage business than it will its automotive operations. The company’s Q1 EBITDA came in at about $2.8 billion, down 17% and thanks to selling nearly $600 million in regulatory credits to other automakers, Tesla posted a net profit of $409 million, but that was still down 71% compared to last year. The company laid out some of its plans to help turn these results around. That includes more affordable versions of the Model 3 and Y, which should help Tesla get more capacity utilization out of its plants and are said to be on track to start rolling down the line in the first half of this year. The company says it’s also on track to launch a pilot robotaxi service in Austin, Texas in June. And it’s already started pilot production of the Optimus robot in California and it says volume production of the Cybercab starts sometime next year. However, due to uncertainty in the market, Tesla may not provide an outlook for the rest of the year until the end of next quarter.
AUTO GROUPS ASK TRUMP FOR TARIFF RELIEF
Six car lobbying groups that represent automakers, dealers and suppliers are pleading with President Trump to back off parts tariffs that are set to go into effect next month. They jointly sent a letter to the White House warning that the tariffs on imported car parts will disrupt the global supply chain which will result in higher car prices and lower sales as well as make it harder and more expensive to repair vehicles. They also say the tariffs will hurt production and lead to job losses. On May 3, a 25% tariff will be slapped on engines, transmissions, and other car parts imported to the U.S. from countries other than Canada and Mexico. Last week, Trump said he was considering some sort of relief for the auto industry and the auto groups say that relief would be a “positive development.”
XIAOMI DELAYS LAUNCH OF YU7 SUV
Chinese EV startup Xiaomi’s surging growth is being threatened by a high-profile accident that killed three people. Bloomberg reports that it’s delaying the launch of its YU7 crossover, which was supposed to go on sale in June or July. And no new launch date has been set. The model was also scheduled to be unveiled at the Shanghai Auto Show this week but Xiaomi scrapped those plans too. The company is under pressure following the crash in one of its vehicles that was operating in its assisted driving mode. The accident led to the Chinese government cracking down on how automakers test and market self-driving systems. Xiaomi has already sold more than 200,000 vehicles, even though it only started selling vehicles a little over a year ago and only sells one model, the SU7 sedan. Last month, it raised its sales forecast to 350,000 units because it expected a boost from the YU7 but that growth now looks to be in jeopardy.
CALIFORNIA DEALERS SUE VW & SCOUT OVER DIRECT SALES
The California New Car Dealers Association is stepping up its fight against Scout Motors’ direct sales model. At the end of last year, it sent a cease and desist order to parent company Volkswagen, but now it’s ramped that up to a full-blown lawsuit against VW and Scout over their plans to sell direct. U.S. franchise dealer laws say that any automaker that has sold vehicles through a dealer in the past, can’t drop them completely to sell direct. And the new California lawsuit also points to a new amendment in the state that requires affiliated brands to use franchise dealers. And on top of California, we’ve also seen pushback from VW dealers and their lobbying groups in Florida and South Carolina, which is where Scout Motors is building its brand-new manufacturing plant.
BYD RESETS STRATEGY IN EUROPE
With total sales not changing much in China over the last decade, most automakers have looked to expand overseas. But that transition hasn’t gone as smoothly as expected. Last year BYD controlled 2.8% of Europe’s EV market, selling about 57,000 vehicles, which was roughly half of its initial forecast. Part of the problem is that BYD didn’t even study any part of Europe before entering the market, according to Reuters. But it says the Chinese automaker was open to input from outside sources and it has been quick to try and turn that around. BYD hired a number of European automotive executives, especially from Stellantis, it worked to expand its number of sales centers and BYD is bringing more plug-in hybrids to the market, which aren’t subject to the same tariffs as Chinese-made EVs. And in the first quarter of this year BYD sold 37,000 vehicles in Europe, which is more than triple last year’s results.
NISSAN REVEALS 1ST ELECTRIFIED PICKUP
We’ve got more reveals from the Shanghai Auto Show to check out. First up, Nissan unveiled a plug-in hybrid version of the Frontier pickup, which is the automaker’s first electrified truck. It’s powered by a 1.5L four-cylinder engine but Nissan didn’t reveal the size of its electric motor or battery pack. But combined the system produces 300-kW of power and 800 newton meters of torque. And it has an EV only range of 135 kilometers or 83 miles. The plug-in Frontier goes on sale in China later this year. Nissan also revealed an all-electric sedan called the N7 that it developed with Dongfeng. Two battery options are available, a 58-kWh pack that delivers 510-km or 316 miles of range and a 73-kWh pack that provides up to 635-km or 394 miles of range. The N7 will go on sale in China in 2027.
HONDA UNVEILS TWO EV MODELS IN SHANGHAI
Next up is Honda, which revealed two electric models developed with its joint-venture partners, the GAC Honda GT and the Dongfeng Honda GT. Both models are based on its Ye Series, which are EVs designed and developed exclusively for the Chinese market. Honda didn’t share any specs for the vehicles but it did say the models and other future EVs will feature Momenta’s automated driving technology, DeepSeek AI technology and LFP batteries from CATL.
LEXUS REVEALS ALL-NEW ES SEDAN
Toyota took the wraps off a new electric sedan called the bZ7, which it developed with GAC. Toyota didn’t provide any specifics about the model but it says the flagship sedan will feature the “latest intelligent technology.” And lastly, Lexus revealed the all-new ES sedan, which features both hybrid and pure-electric powertrains. Two hybrids are available, a 2.0L inline four-cylinder or a 2.5L inline four-cylinder that are both paired to an electronic CVT. And the BEV comes in front or all-wheel-drive. Based on the Chinese test cycle, the front-drive model has a range of 685-km or 425 miles, while the AWD provides 610-km or 379 miles of range. The new ES will start rolling out to global markets next year.
But that wraps up today’s show, thanks for watching.
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This is a public service primarily for the benefit of BOB WILSON, who, really cluelessly, advised somebody, China or other, a few days ago, to emulate the Horrendous catastrophe (which dwarfs even the Holocaust) of Mao’s infamous “Great Leap Forward”.
I will make it real easy for him. Here is the “reader’s digest” version of a recent serious book, written by a serious scholar, on this horror story, “the greatest case of man-made disaster in all of human history”!!!!:
https://www.youtube.com/watch?v=DqFBa9ePWpo
Pay careful attention, Bob Wilson, and you may actually learn a lot. Although I am not very optimistic.
time to ban Regulus again?
COnsidering
1. The current unfavorable environment for EVs in the US,
2. The lack of new models (with the exception of the silly Cybertruck) in 8 years,
3. The Anti-Musk hate of the green goons,
Tesla’s sales in Q1 were actually surprisingly strong, off a mere 13%. Of course, Sean chose to highlight the worst aspect, profits down 71%, but there were still over $400 mill of actual profits, many other companies would actually show losses instead.
I will stay tuned for the Q2 results. As for Musk returning to Tesla, I am not sure what he can do, with no new models, no Cheapo Model 2, and all that.
You can’t handle the truth, Kevin a? No wonder…
You should be happier in North Korea, where you would not have to tolerate facts, or even opinions different than yours.
Unfortunately, the USA is still a FREE COUNTRY, Kevin A.
Xiaomi Delays Launch of YU7 SUV: looking at the vehicle it seems like top management has to told the design staff: “We love the TESLA Model S, the Porsche Panamera and Macan, and the Aston Martin DBX Crossover. Can you design a blend of those?”
Consumers have a long memory. Tesla has seen its best days. The Robotaxi is late and may never come to market. The single door makes rear seat access difficult. Aren’t they paying attention to Waymo?
Apparently some MAGAts who hated EVs a year or two ago are now buying Teslas, because sales to now-former prospects would be down a lot more than 13%. Tesla sales are down a lot more than 13% in Europe, where Elon has done campaigning for neo-Nazi parties. First quarter sales were down 62% in Germany, and 55% in Sweden and Denmark. The best thing Elon could do would be to spin off and remove himself from the car portion of Tesla, or at least give the appearance of having done that.
EREV /PHEV seems to be the perfect compromise for the US. Wonder if Nissan will launch that Frontier here. I’m on my second PHEV, this idea works great, I never use public chargers and still drive 90% of my days as an EV only (and maybe 70-80% of my miles).
Toyota vehicle looks very nice, lexus version not so much (to my eyes)
Tesla results are better than I expected, EV tax credits figure ($600M) is greater than their net profits, huge help. I suspect their approach to “decontented” models 3 and Y are to match pricing being exercised today, I figure they’ll deploy those as cost-savings measures, that way they can stop discounting the current versions. I think people have very short memory, unless all this DOGE controversy continues, it’s starting to look like they will be ok. Personally, I think robotaxi will be a disappointment from revenues generation (see Waymo), especially if they decide to go without partnering with Uber / Lyft. This may be their second in a row new product flop. Don’t believe in their robot so much (tons of competition, many ahead), but I do believe in the energy storage business they have.
I just passed the nearby Tesla store, and they have probably 20 Cybertrucks, and not many more of everything else combined. Maybe the store should pre-wrap one or two of them. That might help bring in lookers.
I’m sure Elon’s making Tesla a “toxic” brand is hurting Cybertruck sales, but I can’t imagine it would have lived up to the hype, even without that.
If I had home charging, my Prius would have been the PHEV version. Unlike some PHEVs, the Prius gets fairly close to the mpg of the non plug-in when running on gas.
The refreshed Model 3 (and soon the Y) are already affordable, as the Model 3 sells for less than the average vehicle in the US market.
A ‘decontented’ Model 3 can cost $10k even less than the above, by not sacrificing anything except battery size. This may drop the 300 mile range to 200 (or 150 in winter), which would make it perfect for daily commuter use, even a very long commute, but not, if you value your time, a car to take on long trips.
EVs were not ‘ready for prime time” but were forced on us by a combination of government handouts and Musk’s innovative genius, which achieved what no other automaker (except maybe some in China with slave labor) has, to make EVs AT A PROFIT.
I agree with Roger that a PHEV or even an EREV is a better choice for now, but if you don’t do that many miles, as in my case, with each one of your cars, you do not even need a simple hybrid.
The Cybertruck, by Musk’s own admission back then was developed as a joke. There is some practicality to some apparently weird aspects of its design, but it has flopped sales-wise and they can’t give them away.
I still find it amazing that, with the other automakers investing cumulatively hundreds of billions of $ on their BEVs, all of them together, hundreds of different models, barely sell what Tesla’s two aging designs, the Y and the 3, sell. An utter failure of the legacy makers IMO.
Even without the Elon factor, I doubt that I would buy a Tesla, given what is now available. I don’t want to use a touch screen to operate the HVAC, open the glove box, etc. At least the refreshed Model Y will have a turn signal stalk, and you can get the wipers moving without using the touch screen. In the end, Teslas have better powertrain efficiency than most of the competition, but they have few other advantages over some H/K products, like Kia EV6, and even the Mach-E..
Going up to “near luxury” EVs, I saw a Lucid Air for the first time a few days ago, and was impressed. To me, the interior is much nicer than the Model S it nominally competes with. The S has one big advantage, though, being a hatchback. I guess I’d still be concerned about a Lucid becoming an orphan, though.
No one seems interesting in selling them in the US, but if I had home charging, an EV with 150 mile range would work for 95 percent of my driving, except for the twice a year 1100 mile road trips.
While Tesla has near 45% BEV market share in the US, they have only ~18% globally. Tesla and BYD, together, have about a third of global share.
Kit, you can probably get a smoking deal on a luxurious and sporty Porsche Taycan. I think they have suffered the worst depreciation of any EV (of a non-bankrupt company.)
Daily, yep, I know someone who tends to buy one of about every Porsche model, and is not happy with the Taycan depreciation. He mostly likes the car and has kept it, but apparently a lot of people have sold them, running down the used value.
Yes, Taycans, surprisingly for a Porsche, have depreciated like hell. A $200k Taycan so called Turbo can be found for $50k. But as both I and auto reviewers have observed, if you expect a $200K Taycan to have even a $75K interior, you will be sorely disappointed. It is even less luxurious than a 911.
The exterior and interior of the Lexus ES EV, looks too much like the Toyota model. With only a little different design of the front lights and a few creases on the hood, they are nearly identical. Outside of the power, performance and a superior experience at the dealership, it’s hard to see why one would purchase the Lexus over the Toyota.
I did my weekly shopping this morning, and saw two EV taxis, the first ones I ever saw here. One was a Model Y and the other a VW ID4. They were about 22 miles from downtown, where EVs have a bigger advantage than on longer trips. They must be much less than 1% of the taxi fleet. Diesel Mercs and Skodas and a few Toyotas make up their vast majority, and there were already a few Prii (just hybrids, not plug-ins). Some taxis do 100k km a year (60k miles), or about 333 km/200 miles a day. I doubt the ID4 could do that on a single charge, even in the summer.
A Camry hybrid should be a great taxi, if the trunk is big enough. All current Camrys are hybrid. The current Prius traded some utility for appearance, and the rear seat is less roomy and harder to get in and out of than with earlier Prii. It would not be a good taxi.