AD #4150 – Tesla Q3 Sales Stun Critics; Sub-Prime Car Loans Send Warning Signs; S. Korean Workers Return to U.S. Battery Plant

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

TESLA Q3 SALES STUN CRITICS
Tesla surprised its critics with a strong sales surge in the third quarter. They came in just under half a million units, up 7.4% from a year ago, but up a strong 29% from the second quarter of 2025. We think that’s an important comparison. A year ago Elon Musk hadn’t hit his peak involvement in conservative politics, which turned off many of Tesla’s potential customers. So the strong sales of the last three months could suggest that Tesla has turned the corner and is bringing buyers back into the fold. But Tesla’s numbers also show that the company sold almost 50,000 vehicles more than it built in the third quarter. That means it had an awful lot of cars in inventory.

TESLA GLOBAL SALES
Q3, 2025	497,099
Q3, 2024	462,890
Q2, 2025	384,122
Source: Tesla

CYBERTRUCK SELLING IN MIDDLE EAST
Tesla doesn’t break out sales of the Cybertruck, but it’s safe to say that sales and production are only a fraction of what the company tooled up for. So it’s looking for other markets outside of the U.S. We got confirmation earlier this week that the truck cannot be sold in Europe because of its lack of pedestrian safety features. But the Middle East seems to be welcoming the truck with open arms. Tesla already sells the Cybertruck in Saudi Arabia and the United Arab Emirates, and now Qatar just joined the list. Big American SUVs sell well in the Middle East. For example, it’s one of the biggest export markets for the Cadillac Escalade and Chevrolet Suburban.

BYD OUTSELLS TESLA IN BEVs
And here’s a reason Tesla needs to boost its sales even higher. Despite its third quarter surge, BYD has easily sold more BEVs. While Tesla sold over 497,000 units globally, BYD sold more than 582,000, giving it a lead of more than 85,000 cars. And so, for now at least, BYD is the #1 EV company in the world. 

    

BYD FLEET CAPABLE OF 1 MILLION EXPORTS/YEAR
And it’s planning on selling a lot more cars around the world, as it’s working on becoming less reliant on its home market. BYD just added its 8th cargo ship to its fleet, which now gives it an annual transport capacity of 1 million vehicles. But at the same time BYD is boosting export capacity, it’s facing increased tariffs from the EU, Brazil and Mexico. That’s why it’s opening plants in Brazil, Europe and other areas to avoid tariffs. BYD is now shipping vehicles to Europe from its plant in Thailand because the tariffs on them are only 10% compared to 37% for its Chinese-made EVs. We think it’s very likely the EU will try and close that loophole.

SUB-PRIME CAR LOANS SEND WARNING SIGNS 
There’s a troubling development in the U.S. credit industry that we all really need to keep our eye on. Sub-prime delinquencies on loans are now higher than they were in 2008 just before the Great Recession. Sub-prime borrowers are people with low credit scores, and they’re starting to default on car loans, especially used cars, at higher rates. One company that specialized in sub-prime car loans, Tricolor Holdings, filed for bankruptcy just weeks ago. Analysts point out that there’s always volatility in the sub-prime market and they’re not alarmed about what’s happening so far. But they also admit they’re keeping a close eye on this.

  

AMERICAN CAR BUYERS WANT $5,000 DISCOUNTS ON EVs
Now that the federal tax credits for purchasing an EV have been eliminated, analysts expect a big drop in sales. And a new Harris Poll found that will likely be the case. Nearly a third of consumers who were likely to purchase an EV are now much less likely to consider or won’t buy an EV at all without the incentives. And of that same group, 60% said they would need an incentive of at least $5,000 to consider an EV and about 30% said they would need an incentive between $2,500 and $5,000. But we’d point out that while the federal credits are gone, the deals aren’t going away. Automakers like GM, Ford, Stellantis, BMW, Hyundai and Rivian, are offering discounts for EVs and PHEVs that are currently in inventory.

NISSAN TO LAUNCH ROBOTAXIS IN JAPAN
Nissan plans to launch a robotaxi service, very similar to Waymo, during its 2027 fiscal year, which runs from early 2027 until early 2028. In an effort to reach that goal, it’s kicking off a pilot using Serena minivans in a section of Yokohama. Nissan says a fleet of 5 of these vehicles, which can hold up to 3 people, will operate in a geo-fenced area of the city. It plans to recruit up to 300 members of the public to give it feedback on the service and is offering free rides as one of their perks. Nissan and its partners have also established a dedicated remote monitoring center nearby to oversee the pilot program, which runs from the end of November until the end of January of next year. 

EU CALLS FOR AV STRATEGY
And in other AV news, the President of the European Union thinks self-driving cars should be a reality in Europe, like they are in China and the U.S. So, Ursula von der Leyen is calling for a continent-wide push into autonomy. She says the EU should adopt an AI first strategy with a focus on mobility. von der Leyen thinks this could help boost up Europe’s struggling auto industry, while also improving safety.

WULING LAUNCHES NEW BRAND, MOVES UPSCALE
Did you know that Wuling is not owned by SAIC and GM? That’s something we just learned. The brand is actually the subsidiary of another company, called Guangxi Automobile Group. But don’t confuse this GAC with the other GAC that you sometimes hear us refer to, which is a state-owned Chinese automaker called Guangzhou Automobile Group. Now back to Wuling. It formed its joint venture with SAIC and GM in 2002 because it was struggling with funds and technology. However, it still has stand-alone projects outside of its joint venture, including a new sub-brand, called Aishang that’s aimed at younger buyers. Its first vehicle, the A100C, is a small two-door electric model that’s supposed to go on sale sometime this month. I’m sure you’ve noted the resemblance to the Mini EV that Wuling produces under its partnership with SAIC and GM. It’s unclear if the models are similar under the skin in any way, but CarNewsChina notes the A100C is longer, wider and lower than the Mini EV. 

S. KOREAN WORKERS RETURN TO U.S. BATTERY PLANT
LG Energy Solution says it will start sending workers from South Korea back to the U.S. Nearly 300 employees were detained at Hyundai and LG’s plant in Georgia last month during a raid by U.S. Immigration and Customs Enforcement or ICE. South Korea had to negotiate for the release of some of those workers, who were eventually flown back home. Now the U.S. and Korea have reached an agreement that will allow workers back into the country to perform things like equipment installation, inspection and maintenance at the battery plant. LG Energy Solutions points out that all those workers had passports, entered the U.S. legally, had work visas, and had return flights already booked. It says this proves they were only in the country temporarily to help set up that plant and were not taking jobs away from American workers. 

And that wraps up today’s show, thanks for watching and have a great weekend.