AD #4236 – First Tesla Cybercab Rolls Off Giga Texas Line; China Auto Sales Drop as Domestic Demand Cools; Scout Motors Production Delayed

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

TESLA FIGHTS GERMAN UNION AS MARCH ELECTIONS LOOM
IG Metall, the giant German industrial union, is putting on a full-court press to get into Tesla. German law requires that all German companies have elected works councils so workers have a voice in establishing things like work rules, working conditions and hiring and firing. That doesn’t mean the works councils have to be run by unions, but workers can elect representatives who belong to a union. And with elections for works councils for the German auto industry coming up in March, IG Metall is running a campaign accusing Tesla of creating a toxic work environment. It wants the automaker to hire more people, give them more shift breaks and more flexible vacation time. Tesla is fighting back and telling its workers they don’t need the union. However, we think the workers are probably more worried about job security because that plant is making about 250,000 cars a year, which is half of what it was tooled to make. Tesla’s sales in most of Europe have cratered as Elon Musk’s political activity has turned off so many potential customers. 

CHINA AUTO SALES DROP AS DOMESTIC DEMAND COOLS
China’s auto industry can look like an unstoppable behemoth, but inside China, automakers are worried. While exports are keeping overall production humming, domestic sales took a nosedive in January and the rest of the year looks pretty weak. Automotive News reports there are a number of reasons for the slow down. The Chinese economy is cooling off, income growth is stalling, government subsidies for new cars are not as generous, and friction over China’s massive export push is raising trade barriers. Chinese automakers will soon be posting their 2025 financial results and we’ll get a much clearer picture of what’s happening once we get the numbers. 

  

FIRST TESLA CYBERCAB ROLLS OFF GIGA TEXAS LINE
Tesla hit a fairly big milestone yesterday. The company revealed in a social media post that the first Cybercab rolled off the line at its plant in Austin, Texas. But that’s all the details the company shared. Earlier this week, Elon Musk said that Cybercab production would start in April, so presumably this is just a pre-production model. And he also previously warned that initial assembly would be “agonizingly slow” due to many new parts and production steps. The purpose-built autonomous vehicle comes without a steering wheel and pedals and seats two people.

SCOUT MOTORS PRODUCTION DELAYED UNTIL SUMMER 2028 REPORT
It looks like Scout Motors’ launch could be delayed. The revived brand from the Volkswagen Group, was planning to begin production of its EV and EREV pickups and SUVs at its plant in South Carolina in 2027. But according to a new report from German newspaper Der Spiegel, the start of production could be pushed back to the summer of 2028 because Scout is experiencing “technical problems.” However, an official at Scout Motors pushed back on that report. While they acknowledge there could be potential delays, they said “everything is moving forward and making good progress” and that there is no update to its timeline.

      

U.S. PROPOSES VIN MARKING TO STOP CONVERTER THEFTS
The U.S. is proposing new legislation that would help crack down on stolen catalytic converters. The act would require the vehicle’s identification number or VIN to be marked on all new catalytic converters and establish a penalty of up to 5 years in prison for people that steal, sell, traffic or buy the stolen exhaust part. It would also establish a grant program for dealers and repair shops to mark the VIN on existing vehicle’s converters at no cost to owners. The act was first introduced in 2022, but this is the first time it’s making its way out of a committee and will go to the House. There’s also a similar bill working its way through the Senate. However, is legislation like this really even needed anymore? It made sense in 2022, when converter thefts hit their peak with an estimated 600,000 stolen. But that fell to 150,000 the next year. In 2024 thefts fell to around 45,000 and they were down another 23% in the first half of 2025. So, it sounds like a lot of work to mark the VIN on every new catalytic converter when thefts are falling so fast. Plus, it sounds like a logistical headache. A vehicle is assigned its VIN as soon as the frame or chassis hits the assembly line, so if this new act passed, the catalytic converter would have to be worked into this process so the right part goes to the right vehicle.    

POLESTAR SLASHES 2026 SALES TARGET AMID VOLATILE DEMAND
EV maker Polestar is forecasting slower sales growth this year. Previously, the automaker was aiming to boost sales 35% this year but now the company has lowered its estimate to the low double-digit range. Last year, Polestar sold more than 60,000 vehicles globally, up 34% from 2024. And while Polestar expects a slow 2026, it’s moving forward with expanding its retail network. The automaker will also launch four new models over the next three years, including a new version of the Polestar 4 this year. The next-gen Polestar 2 launches early next year and the Polestar 7, a compact SUV, is planned for 2028.

STABLE U.S. DEALER ROOFTOPS SIGNAL HEALTHY RETAIL NETWORK
A year-end report from Urban Science shows that U.S. dealers enjoyed a steady business climate in 2025. The number of dealerships, or rooftops, as they’re called in the business, grew slightly. There are now 18,398 rooftops in the U.S. which is 24 more than the year before. New Jersey, Texas, Florida, Georgia and South Carolina saw the biggest growth in dealerships, while Pennsylvania, Missouri and California lost the most. Urban Science says dealerships should be fairly steady this year, but expects sales per dealership to decline slightly.

We think we’ve got a good Autoline After Hours coming up tomorrow. We’ll get into the news of the week with Greg Migliore, host of the AutoGuide podcast, and Henry Payne, the car critic for the Detroit News. But the discussion will really start to liven up when we talk about whether automakers are wasting their time and money on their racing efforts. Don’t forget to tune in at 3PM EST tomorrow.

Also, for our YouTube and Patreon members, John and I will be doing another live Q&A on Monday the 23rd at 2PM EST. So, start sending in your questions now.

But that’s a wrap for this show. Thanks for making Autoline a part of your day.