Electric Cars

Cheap cars are coming, but really? ARE THEY?



Cheap cars are coming, but really? ARE THEY?

Lowcost competition is coming for Tesla and they’re coming in hot at least according to Fortune Magazine and they are doing a really unfortunate job of it uh I don’t agree but we’ll see why I’m Brian welcome to my Tesla weekend so this article is terrible and

Bad and wrong and I apologize Brooke in advance for coming in so hot but my gosh this is truly awful Tesla’s Next Generation $25,000 model 2 which Elon has said repeatedly it will not be called will face low pric us rival you could just call it a compact you could

Just call it a compact car but let’s get into it NextGen lowcost vehicle is slated to arrive in 25 but expect at least one US competitor to have a nextg lowcost product on the market that’d be great I would love to see it we need more competition in that space hinges on

Uh the next gen manufacturing Tesla 3.0 no so expected to fall somewhere between 25 and 30,000 the vehicle will initially be made at Texas where the Cyber Tru is made keyword stuffing can’t blame you respect the game and later in Mexico and other locations so uh this is kind of a

Big deal but but you guys you guys you guys the bolt already exists General Motors which has been making groundbreaking electric cars for more than a decade before Tesla if you look this links to the ev1 uh yeah that’s a that’s a famous disaster is the is the polite

Word there’s a cluster word I’m thinking of but I’m not going to say it but that’s what it was and and you know the bolt the third bestselling EV in the US the third best selling huh well let’s uh take a look at that claim what have we

Got here there it is oh apparently according to Kelly Blue Book yeah look at that 62,000 puts him in number number three now mind you that’s less than a third of the model 3 and it combines the bolt EU EV and euv which would be like combining the

Three and the Y 62,000 I tried to find out if this vehicle is exported with this 62,000 figure and I found some interesting stuff on this chart uh it looks like if we go here actually if we look at this chart here we will see uh sales by month including Brazil

And Canada and Colombia and Mexico South Korea and the USA USA numbers coming in for the year at 32,000 that suggests to me that this is not uh a US number but a global number and if that is true let’s look at the global numbers here they’re not even in

The top 20 this is just September let’s go to the year I think the year is on here down lower here’s the year model y 900,000 and yeah they do not even make the top 20 models worldwide that’d be great if the US was the entire Market it

Is not the entire Market that ain’t how it works so that’s unfortunate and uh we’ll get to some more crazy crazy stuff soon enough so the bolt has been the rainning bang for the buck EV leader in the US since it was introduced the bolt has

Been the reigning bang for the buck eeve leader in the US since it was introduced in 2016 has it CU people haven’t been buying it it starts around 27 and drops below 20,000 if the point of sale federal tax credit is applied what what so I went ahead and looked uh Brooke did

Say uh instant EV tax credit arrives for model Y and Chevy Bolt was on the 21st I tried to find information on that here’s that article it says it’s there it says it’s there the article does not uh mention where just says that it exists uh so it says

Just talk talk to the dealers uh and get it applied so I went to the irs’s website and would you believe it’s not on here and if you want to breakdown of all the vehicles one by one there’s a a page you can go to so I

Went to that on the uh fueleconomy.gov website where it lists all the vehicles select your dates select your models and well here’s the list Chrysler Ford Jeep Lincoln rivan Tesla and Volkswagen fenito the battery for the bolt is not made in the US it doesn’t qualify um

They are working to get batteries that would work for that but they are not there uh so we’ve got GM is delaying EV production so this means we’ve got some time we don’t know which models are slated for big delays versus small delays and and it’s crazy so let’s go

Back here raining bang for so you can’t call it 27,000 it is uh below 20,000 can’t say that it’s not the case GM plans to introduce its own affordable competitor uh odds are the bolt will scoop up sales long before Tesla launches the new small crossover

Who said it’s going to be a crossover I mean I get that it’s Motor Trend is saying that but that’s something you should push back on you need to fact check your sources if that’s your single Source I famously will not report on something if it is a single Source rumor

I’m not familiar with a specific plan on a specific form factor we just know compact compact crossovers not uh not a big thing means Tesla will gone many years with virtually no new product the cybertruck is the only new name plate in as many as four years except that we did

Refresh the model S the model X and now the model 3 those are substantially different vehicles but I get it I’ll allow it that’s fine they’re still growing their sales While others are struggling so maybe the number of models isn’t isn’t the big way one way GM could save

Cost is by using lithium iron phosphate that’d be great so let’s take a look here uh we’ve got uh Ford Taps into Michigan for new lfp battery plant that could be a thing that could work except that it’s not coming anytime soon um it’s going to be at least mid 26 by the

End of 2026 yeah uh don’t show that yet so that’s going to make it tough there are no lfp batteries in the United States at this time it’s going to be be a little while until that comes up and gets going so uh yeah and it even says right now

They’re still using the nickel Cobalt manganese batteries it’s not time for the lfp battery yet so is General Motors going to beat Tesla to the market with its next lowcost bolt no guarantee uh that it would be an early Market Advantage well we know that because GM had a

Groundbreaking EV a decade before Tesla and it hasn’t necessarily helped them so I’m going to say that that’s probably not not what they need uh and then yeah so if GM can get their sub 30,000 sub2 their $25,000 car out they already have a sub $30,000 car I guess apparently

Will it matter maybe Tesla makes really compelling cards they’re a lot better note that Tesla lowered the cost of its EVS with the model 3 in 2017 but it never broke the $35,000 barrier at least not a on a sustained basis 35,000 in 2017 is today

43799 you can buy a model 3 today for less than 43799 it has longer range than the $35,000 car was supposed to it has better sound it has autopilot included which I think might have cost extra on that original one it is a much better car and it is less than

43799 how much less let’s take a look $35,900 range a couple in inventory and handful so you can already get it for 35 and this is a heck of a car it’s a pretty darn good car so I don’t know exactly how that’s going to work out for

Them and yeah uh a truly lowcost Tesla will come with branding challenges why I mean a $35,000 Tesla already is out and it doesn’t have branding problems well it maybe it won’t be aspirational o okay I guess bit weird I would focus more on folks like Volkswagen they’re hoping to

Have a $26,500 one it may not come to the US if it’s good I don’t know why it wouldn’t but it ain’t then you’ve got other cars that are already quite cheap the bolt under 30 the bolt euv Nissan Leaf Mini Cooper and the Hyundai Kona under 35 boy

That Hyundai Kona for 35 or for 200 bucks more you get a model three I can see why that may not be selling all that well so then we’ve got uh yeah the fact is GM is losing money on every car they sell even the bolt as far as we can tell

GM believes that they will start making money on EVS in 2025 as higher margin models arrive they are already not making money they are already losing money that’s not ideal how are you going to keep going down Market when anywhere down from here is no money at all is

Negative because they’re not eating into the sales of the likes of Tesla and byd they’re eating into the sales of General Motors themselves they’re stopping the sale of high margin internal combustion cars in favor of low margin electric vehicles that’s a tough ask comparatively we’ve got Tesla who profit

Falls after price Cuts in China and other markets yes Tesla has been uh cutting prices famously and it’s been eating into their profit but the profit still exists it’s still real shareholders may be panicked a little and I don’t blame them but that is just kind of how it goes they’re still

Profitable even with a $35,000 model 3 available today so I don’t know what to tell you except that maybe uh the sky is not falling I know I’ve said this before it remains true what is going on over at the motors of the general I do not know the answer

To this question I don’t think anyone does but what I do know is that again apologies Brooke but this article was not good it was not good um I don’t know how you got it past an editor so we’ll see so what did I miss what did I

Misunderstand am I crazy here uh stay tuned stay Ju and I can wa to hear from you clever robots on the next one leave comment subscribe do all that stuff

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Links from today’s show:

Tesla Next-Generation $25,000 ‘Model 2’ Will Face Low-Priced U.S. Rival
https://www.forbes.com/sites/brookecrothers/2024/01/28/tesla-next-generation-25k-model-2-will-face-low-priced-us-rival/
The Bolt comes with an EV credit? (no)
https://www.forbes.com/sites/brookecrothers/2024/01/21/instant-ev-tax-credit-arrives-for-electric-suvs-7500-price-drop-for-tesla-model-y-chevy-bolt-ev/

U.S. Dep—-artment of the Treasury, IRS Release Guidance to Expand Access to Clean Vehicle Tax Credits, Help Car Dealers Grow Businesses
https://home.treasury.gov/news/press-releases/jy1783

List of qualifying EVs
https://fueleconomy.gov/feg/tax2023.shtml

Americans Buy Nearly 1.2 Million Electric Vehicles to Hit Record in 2023, According to Latest Kelley Blue Book Data
https://mediaroom.kbb.com/2024-01-16-Americans-Buy-Nearly-1-2-Million-Electric-Vehicles-to-Hit-Record-in-2023,-According-to-Latest-Kelley-Blue-Book-Data

Bolt doesn’t even make the Top-20 EVs globally

World EV Sales Now Equal 17% Of World Auto Sales

Bolt sales by country
https://gmauthority.com/blog/gm/chevrolet/bolt-ev/chevrolet-bolt-ev-sales-numbers/

GM delays EV production at Michigan plant to 2025
https://gmauthority.com/blog/gm/chevrolet/bolt-ev/chevrolet-bolt-ev-sales-numbers/

Ford Taps Michigan for new LFP battery plant. No word on GM
https://media.ford.com/content/fordmedia/fna/us/en/news/2023/02/13/ford-taps-michigan-for-new-lfp-battery-plant–new-battery-chemis.html

The VW ID.2all is a $26,500 electric car the U.S. might not get
https://www.foxnews.com/auto/vw-id-2all-electric-car-u-s

Cheapest Electric Cars for 2024
https://www.cnet.com/roadshow/news/the-most-affordable-electric-cars/

GM believes it will start making money on electric vehicles in 2025 as higher margin models arrive
https://apnews.com/article/general-motors-path-to-electric-vehicle-profitability-bba3a9cbbd2aad0953cbc113e53d041c

Tesla profit falls 24% in Q1 after price cuts in China, other markets
https://asia.nikkei.com/Business/Automobiles/Tesla-profit-falls-24-in-Q1-after-price-cuts-in-China-other-markets

Edited by: Roshan Khatiwada

#Tesla #TSLA #EVs

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