Tesla's Q3 earnings impressed with strong vehicle sales, revenue growth, and a significant rise in free cash flow, driven by cost-cutting measures. A massive lithium deposit in Arkansas could reshape US supply chains, despite current demand slumps and price drops. Volkswagen delays its ID.7 launch amid shifting US sedan demand, while CATL introduces a new sodium-ion battery optimized for cold climates and PHEVs. Stellantis plans solid-state battery tests in Dodge Chargers by 2026, aiming for higher energy density and better performance. Hyundai and Renault also reported their sales and financial results, highlighting industry trends and challenges.
- Tesla Q3 Earnings Stun Critics - Massive Lithium Deposit Discovered in Arkansas - Argentina Scales Back Lithium Production - VW Delays U.S. Launch of ID.7... Again - GM Delays EV Motor Produciton - CATL Develops Sodium Battery for PHEVs and EREVs - Stellantis Using Solid-State Batteries in Pilot - Stellantis Adds Moving Ground Plane Wind Tunnel - Hyundai and Renault Q3 Earnings - ICE and BEV Ford Transit Have Same Price
"...ven billion euros, up just under two percent. The Ford Transit and E Transit are getting an update for the twent..."
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Speaker 1: This is Autolyned Daily, the show dedicated to enthusiasts of the global automotive industry. Tesla laid down some impressive numbers
for the third quarter that stunned some critics. It sold
almost four hundred and sixty three thousand vehicles, which was up six percent, and its revenue came in just over twenty five billion dollars, which was up eight percent. While
those are ok numbers, everything else was really good. Its
adjusted ebit DA came in at four point six billion dollars, up an impressive twenty four percent, its net income hit two point one billion, up a strong seventeen percent, and its free cash flow soared to two point seven billion dollars, up a whopping two hundred and twenty three percent. Investors
liked what they saw and bid the stock up by fourteen percent in pre market trading, though we'll have to see how it plays out for the rest of the day.
One item worth noting is that Tesla cut its operating expenses by six percent, which it achieved by cutting R and D by ten percent, and it's SGA, or selling general and administrative expenses by five percent. And that's worth
noting because you almost never see an automaker cut its operating expenses when sales and production are growing, could Arkansas become the biggest supplier of lithium in the world. The
US Geological Survey estimates that there's between five and nineteen million tons of lithium under Arkansas, which at the low end, is enough to meet nine times the projected world demand for EVY batteries in twenty thirty. The only issue is
finding a way to get it out that's environmentally friendly and cost effective. But there are some interesting pilot programs
going on elsewhere to extract lithium from brine without depleting the water table. Lithium is found in hard road, in clay,
and in brine, and the Arkansas deposits are in brine, the leftover of an ancient sea. The US currently imports
more than twenty five percent of its lithium, so this could be a game changer for the US supply chain, and while that lithium will be needed to meet future ev growth, currently demand for the metalist slumping due to the slowdown in ev demand. Lithium prices have plunged eighty
percent since the start of last year, and because of that, Writers reports that mining companies in Argentina, which is the fourth largest producer of lithium, are scaling back operations, and it's also spurring more mergers and acquisitions so miners can cut costs. But the scale back in lithium production has
analysts worried that there will be a supply shortfall later in the decade, just when demand is expected to kick back up. Earlier this year, Volkswagen delayed the launch the
ID seven electric sedan in the US indefinitely, and it didn't set a date for when it would go on sale.
But now we have a better idea of when it will launch, well sort of. The head of the VW
Group of America, Pablo Dc, told Automotive News that the ID seven will quote unquote probably launched next year, but also added that the company hasn't decided yet. Officially, no
reason has been given for the delay, but right now, sedans don't sell well in the US and VW isn't alone in delaying EV plans. General Motors is pushing back
EV mootor production at its Saint Catherine's plant in Canada.
According to Canadian Union, Uniform evmotor production will kick off in twenty twenty seven, sixteen months later than originally planned.
Chinese people now buy more new energy vehicles or anyvs than they do ices, diesels or hybrids, and within that group of nyvs, phebs, especially extended range electrics, are growing the fastest, so CTL is going to start catering some of its battery business specifically to that section of the market.
It's coming out with the new Free Voice Super Hybrid battery for PEVs and e revs that offers more than four hundred kilometers or about two hundred and fifty miles of range and four C charging capability, which means it can fully charge in fifteen minutes. Better still, the sodium
ion chemistry is largely unaffected by bitterly cold temperatures. CTL
says it will easily charge at thirty below SE which is minus twenty fahrenheit, and it provides seamless driving at twenty below C, which is minus four fahrenheit. And speaking
of batteries, STILLANTIS is on a path to launch vehicles with solid state batteries before the end of the decade.
In twenty twenty one, it invested seventy five million dollars in solid state battery startup factorial and just announced it will put out a demonstration fleet of Dodge Charger Daytona's with factorial batteries in twenty twenty six. The fleet will
be used to help validate the cells in real world conditions.
Solid state batteries offer advantages like reduced weight, better performance, and the possibility for reduced costs because they have higher energy density, which means a smaller pack could still provide the same amount of range. Specifically, Stillanta says it will
test factorial cells with an energy density over three hundred and ninety watt hours per kill ago. That's a little
hard to quantify in a short amount of time, but really good lithium ion batteries and evs today have about three hundred watt hours per kilogram, while the top lithium iron phosphate or LFP cells are roughly two hundred watt hours per kilogram. Right now, the big hurdles to solid
state batteries seem to be the ability to ramp up to mass production and the cost it will take to get there. To me, that suggests early versions could be
expensive and will probably first come out in premium and performance vehicles. And to make sure all of its evs
achieve their best possible range. Stillants is spending nearly thirty
million bucks to upgrade its wind tunnel in Auburn Hills, Michigan.
The investment was used to install moving ground plane technology, which is essentially a series of belts that spin the tires and simulate the road moving underneath the car, all while stationary in the tunnel. It's an important addition because
the wheels and tires can account for up to ten percent of total drag, and overall it means designers and engineers can more accurately simulate real driving conditions. At the
top of the show, we reported Tesla's blowout Q three numbers, while Renaul and Hyundai reported their numbers two. Hundai sold
a million vehicles globally, up three percent from a year ago.
Revenue hit thirty one point one billion dollars, up nearly five percent. It posted an operating profit of nearly two
point six billion, up six and a half percent, and it put two point three billion on the bottom line, up three percent. But note that Tesla made nearly the
same profit that Hyundai did, even though Tesla sold half as many vehicles. European automakers don't give out much information
in their quarterly reports, they save that for their half year in full year reports. So all we've got from
Renault is that it sold about four hundred and eighty two thousand vehicles globally, down five point six percent, and its revenue came in at ten point seven billion euros, up just under two percent. The Ford Transit and E
Transit are getting an update for the twenty twenty five model year that includes factory installed upfit packages and interior accessory kits. But the most interesting change is that the
gas and electric versions now have the same price. They
both start at fifty one thousand dollars, but when you factor in federal and state incentives for the electric, the E Transit is cheaper. And don't forget to tune into
Autoline after Hours at three pm Eastern Time today. We'll
be talking about the biggest news stories of the week, like tesless earnings, the looming carb ZEV mandate disaster, and what that giant deposit of lithium might actually mean. Thanks
for tuning into this show and I hope to see you later today.
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