U.S. Hits EV Record As Global Electric Car Sales Rise 30 Percent
Good morning! It’s Tuesday, October 15, 2024, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
Tesla’s Cybertruck Has Finally Arrived
1st Gear: America Just Set An EV Sales Record
In recent months, automakers around the world have pledged to shift attention to hybrid models, delay new electric cars and push back production targets for battery-powered vehicles. That might make you think sales of electric vehicles are in dire straits, but they aren’t. In fact, global sales of EVs are on the up and America just set a new record for EV sales in the third quarter of 2024.
Global sales of electric cars were up by almost a third in September, reports Reuters. The boost came as strong demand for EVs swept China, and Europe saw increased interest in electrification after a few months of stagnation, as the site reports:
EVs – whether fully electric (BEV) or plug-in hybrids (PHEVs) – sold worldwide reached 1.69 million in September, Rho Motion data showed.
Sales in China jumped 47.9% in September and reached 1.12 million vehicles, while in the United States and Canada they were up 4.3% to 0.15 million.
In Europe, EV sales rose 4.2% to 0.3 million units, thanks to a 24% jump in the United Kingdom and gains in Italy, Germany and Denmark, Lester said.
The growth here in America seems to be more long-lived, as sales for the three-month period to the end of September 2024 set a new record in EV deliveries, adds Kelley Blue Book. The rate at which EV sales are growing in America is slowing, but things like discounts and incentives available on some models are helping sales reach new heights.
In total, Americans purchased more than 346,000 EVs during the third quarter of 2024, reports KBB. The figure marks an 11 percent increase on the same period in 2023 and now means that EVs make up almost nine percent of all cars sold in the U.S., as KBB adds:
“While year-over-year growth has slowed, EV sales in the U.S. continue to march higher,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. “The growth is being fueled in part by Incentives and discounts, but as more affordable EVs enter the market and infrastructure improves, we can expect even greater adoption in the coming years.”
Discounts helped more Americans get into EVs. Incentives made up 12% of the average EV transaction price last quarter, compared to 7% of the average new car sale.
Tesla currently markets the top selling EVs in America, with the Cybertruck becoming the third best-selling EV in America, just behind the company’s Model 3 and Y cars. Ford makes the best-selling non-Tesla EV with the Mustang Mach E.
2nd Gear: Slowing The EV Transition Will ‘Trap’ Automakers
This EV growth is something automakers around the world have been preparing for over the past few years, with companies like Ford and Hyundai promising huge investments in EV infrastructure across America. Earlier this year, some companies were spooked by the slower rate of growth across the sector and even went so far as to backtrack on their targets. This could be a risky move, warns Stellantis boss Carlos Tavares, who believes automakers could be trapped if they backtrack on EV targets now.
Tavares, who last week announced he would retire as Stellantis CEO, was speaking at the Paris Auto Show this week where he warned the world’s automakers that slowing the transition to EVs was a “trap,” reports Business Insider. Delaying the electric revolution could leave car makers footing the bill for development of hybrid powertrains and battery tech, which could quickly get expensive, as BI explains:
“Making a transition for EVs longer is a big trap,” Tavares said.
This is because automakers will have to wrestle with higher costs as they have to invest in both electric and combustion-engine vehicles, Tavares told the Financial Times.
“When you make a longer transition, in fact, you don’t replace the old world by the new one. You add up the new world to the old,” he said.
Despite his stark warning for rival automakers, Tavares and Stellantis have invested heavily in a variety of powertrain options for its models. The company has a system that it calls the “multi-energy platform,” which it says can work on gas-powered cars as well as plug-in hybrids, EVs and even hydrogen cars.
3rd Gear: German Unions Slam Tesla’s Union Busting
Tesla is having a rough time of things these days, with the company repeatedly missing delivery targets, wiping $15 billion off its boss’ net worth with a lackluster product launch and fielding questions about its true focus from all angles. Now, the automaker is facing issues at its German plant, where workers are hoping to unionize.
Workers at the German Tesla plant working on unionization attempts have now hit out at the American EV maker after it fired one of its representatives on the works council, reports Reuters. As a result of the dismissal, German union IG Metall has accused Tesla bosses of “aggressive tactics,” as Reuters reports:
Tesla management dismissed a worker affiliated with IG Metall without notice at the gigafactory plant in Gruenheide, the union said in a statement.
“This dismissal is yet another attempt to intimidate IG Metall workers at the plant,” the IG Metall faction at Gruenheide said in the statement, decrying “aggressive tactics against all those in the plant who are working together for humane and fair working conditions”.
The faction said plant management has threatened every IG Metall works council member with dismissal.
Tesla previously made headlines for home visits that were being carried out in Germany to check on employees who were off sick. Now, it’s facing a battle against trade unions in the country, which are hoping to gain greater influence over pay and working conditions at the facility on the outskirts of Berlin.
4th Gear: Tesla’s Cybercab Launch Was Great For Uber
Fighting unions in Germany is just one headache Tesla has right now, the other is the fallout from its Cybercab reveal last week. The event, which took place on Thursday, included the unveiling of an autonomous taxi, a self-driving van and the news that the Optimus robot is almost ready to go on sale. Sure Elon, whatever you say.
The event was full of big promises, but lacked clarity on when these products could launch, how much Tesla would make on them and what kind of return shareholders could expect on their investment. This hasn’t sat well with the company’s backers and now it looks as if Tesla’s misfortune could be good news for Uber and Lyft, reports Futurism.
Following the event, Tesla’s shares were down around seven percent, which wiped more than $15 billion of Musk’s worth as it is tied to the company’s value. At the same time, Lyft and Uber were on the up, with both companies seeing their values rise around eight percent following the Cybercab reveal:
As of Friday, both Uber and Lyft shares are up by around ten percent, while Tesla’s has stooped down by about eight percent. If Elon Musk’s “Cybercab” reveal was meant to herald a new age of fully autonomous transportation, it appears that Wall Street’s faith currently rests on having humans at the wheel.
“We consider the event a best-case outcome for Uber,” John Colantuoni, an equity analyst at Jefferies, wrote in a note on Friday, as quoted by Quartz. “We expect Uber to react positively now that investors can focus on fundamentals.”
Much of that blame is being laid on Musk, who could only make vague promises about the Cybercab. In his own words, the robotaxi would “probably” enter production by 2026 or “before” 2027, which he undercut by admitting he tends to be optimistic.
The vague details surrounding the Cybercab, Robovan and Optimus rollout have experts concerned. It’s echoing the Cybertruck reveal, which ended up running way behind schedule, and the launch of the second-generation Tesla Roadster. Since that car was unveiled back in November 2017, little has been heard in the way of progress towards its launch, which was originally due in 2020.
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On The Radio: B. B. King – The Thrill Is Gone
The Thrill Is Gone
