AD #4040 - Tesla’s Q1 Net Profit Slumps 71%; Shanghai Auto Show Reveals; Xiaomi Delays Launch of YU7 SUV

Speaker 1: This is Autolye Daily, the show dedicated to enthusiasts of the global automotive industry. Elon Musk is cutting the time

he spends as head of the Trump Administration's Department of Government Efficiency down to one or two days a week so he can devote more effort to Tesla. Musk made

the announcement during the company's Q one earnings call, but he is still expected to remain an advisor to the president for the rest of his term. Based on Tesla's performance,

we can understand why the CEO would want to spend more time with the company. It delivered roughly three hundred

and thirty seven thousand vehicles in the first quarter, a drop of thirteen percent compared to last year. Tesla says

part of that has to do with a changeover to the new model Why, but combined with falling vehicle selling prices and increased operating expenses, the company's revenue from its automotive business dropped twenty percent. However, a sixty seven seven

percent increase in Tesla's energy storage products resulted in its total revenue going down by nine percent to a little over nineteen point three billion dollars, but that growth might not be sustainable because Tesla says the Trump Administration's tariffs will have a bigger impact on its energy storage business than it will its automotive operations. The company's Q one

ebit du came in at about two point eight billion dollars, down seventeen percent, and thanks to selling nearly six hundred million dollars in regulatory credits to other automakers, Tesla posted a net profit of four hundred and nine million, but that was still down seventy one percent compared to last year.

The company laid out some of its plans to help turn these results around. That includes more affordable versions of

the Model three and Y, which should help Tesla get more capacity utilization out of its plants, and are said to be on track to start rolling down the line in the first half of this year. The company says

it's also on track to launch a pilot robotaxi service in Austin, Texas in June, and it's already started pilot production of the Optimus robot in California, and it says volume production of the cybercab start sometime next year. However,

due to uncertainty in the market, Tesla may not provide an outlook for the rest of the year until the end of next quarter. Six car lobbying groups that represent automakers, dealers,

and suppliers are pleading with President Trump to back off parts tariffs that are set to go into effect next month.

They jointly sent a letter to the White House warning that the terraffs on imported car parts will disrupt the global supply chain, which will result in higher car prices and lower sales, as well as make it harder and more expensive to repair vehicles. They also say the terraffs

will hurt production and lead to job losses. On May third,

a twenty five percent tariff will be slapped on engines, transmissions, and other car parts imported to the US from countries other than Canada and Mexico. Last week, Trump said he

was considering some sort of relief for the auto industry, and the Auto Group say that relief would be a quote unquote positive development. Chinese evy startup Shaomi's surging growth

is being threatened by a high profile accident that killed three people. Bloomberg reports that it's delaying the launch of

its Yu seven crossover, which was supposed to go on sale in June or July, and no new launch date has been set. The model was also scheduled to be

unveiled at the Shanghai Auto Show this week, but shall me scrap those plans too. The company is under pressure

following the crash in one of its vehicles that was operating in its assisted driving mode. That accident led to

the Chinese government cracking down on how automaker's test and market.

Self driving systems has already sold more than two hundred thousand vehicles, even though it only started selling vehicles a little over a year ago and it only sells one model, the Su seven sedan. Last month, it raised its sales

forecast to three hundred and fifty thousand units because it expected a boost from the Yu seven, but that growth now looks to be in jeopardy.

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Speaker 1: The California New Car Dealers Association is stepping up its fight against Scout Motors direct sales model. At the end

of last year, it sent a seasoned assist order to parent company Volkswagon, but now it's ramped that up to a full blown lawsuit against VW and Scout over their plans to sell direct. US franchise dealer laws say that

any automaker that has sold vehicles through a dealer in the past can't drop them completely to sell direct, and the new California lawsuit also points to a new amendment in the state that requires affiliated brands to use franchise dealers.

And on top of California, we've also seen pushback from VW dealers and their lobbying groups in Florida and in South Carolina, which is where Scout Motors is building its brand new manufacturing plant, with total sales not changing much.

In China over the last decade, most automakers have looked to expand overseas, but that transition hasn't gone as smoothly as expected. Last year, BYD controlled two point eight percent

of Europe's EVY market, selling about fifty seven thousand vehicles, which was roughly half of its initial forecast. Part of

the problem is that BYD didn't even study any part of Europe before entering the market, according to Reuters, but it says that Chinese automaker was open to input from outside sources and it's been quick to try and turn that around. BYD hired a number of European automotive executives,

especially from Stalantis. It worked to expand its number of

sales centers, and BYD is bringing more plug and hybrids to the market, which aren't subject to the same terrace as Chinese made evs, and in the first quarter of this year, BYD sold thirty seven thousand vehicles in Europe, which is more than triple last year's results. We've got

more reveals from the Shanghai Auto Show to check out, and first up, Nissan unveiled a plug in hybrid version of the Frontier pickup, which is the automaker's first electrified truck.

It's powered by a one and a half liter four cylinder engine, but Nissan didn't reveal the size of its electric motor or battery pack, but combined, the system produces three hundred kilowatts of power and eight hundred newton meters of torque, and it has an EV only range of one hundred and thirty five kilometers or eighty three miles.

The plug in Frontier goes on sale in China later this year. Nissan also revealed in all electric city and

called the N seven that it developed with dong Fong.

Two battery options are available, a fifty eight kilowad hour pack that delivers five hundred and ten kilometers or three hundred and sixteen miles of range, and a seventy three kilowad hour pack that provides up to six hundred and thirty five kilometers or three hundred and ninety four miles of range. The N seven will go on sale in

China in twenty twenty seven. Next up is Honda, which

revealed two electric models developed with its joint venture partners, the GAC Honda GT and the dong Fung Honda GT.

Both models are based on its E series, which are evs that are designed and developed exclusively for the Chinese market.

Honda didn't share any specs for the vehicles, but it did say that the models and other future evs will feature Momenta's automated driving technology, Deep Seek AI tech, and LFP batteries from CATL. Toyota took the r APPS off

a new electric sedan called the BZ seven, which it developed with GAC. Toyota didn't provide any specifics about the model,

but it says the flagship sedan will feature the quote latest intelligent technology. And lastly, Lexus revealed the all new

ES sedan, which features both hybrid and pure electric power trains.

Two hybrids are available, a two liter inline four cylinder or a two and a half liter inline four cylinder that are both paired to an Electronics CVT, and the BEEV comes in front or all wheel drive. Based on

the Chinese test cycle, the front drive model has a range of six hundred and eighty five kilometers or four hundred and twenty five miles, while the all wheel drive provides six hundred and ten kilometers or three hundred and seventy nine miles of range. The new ES will start

rolling out to global markets next year, but that wraps up today's show. Thanks for watching.

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Tesla Cybercab

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