AD #4150 - Tesla Q3 Sales Stun Critics; Sub-Prime Car Loans Send Warning Signs; S. Korean Workers Return to U.S. Battery Plant

Speaker 1: This is Outoline Daily, the show dedicated to enthusiasts of the global automotive industry. Tesla surprised its critics with a

strong sales surge in the third quarter. They came in

just under half a million units, up seven point four percent from a year ago, but up an even stronger twenty nine percent from the second quarter of this year.

We think that's an important comparison. A year ago, Elon

Musk hadn't hit its peak involvement in conservative politics, which turned off many of Tesla's potential customers.

Speaker 2: So the strong sales.

Speaker 1: Of the last three months could suggest that Tesla has turned the corner and is bringing buyers back into the fold.

But Tesla's numbers also show that the company sold almost fifty thousand vehicles more than it built in the third quarter.

That means it had an awful lot of cars in inventory, and Tesla doesn't break out sales of the cyber truck, but it's to say that sales and production are only a fraction of what the company tooled up for, so it's looking for other markets outside of the US. We

got confirmation earlier this week that the truck cannot be sold in Europe. Because of its lack of pedestrian safety features.

But the Middle East seems to be welcoming the truck with open arms. Tesla already sells the cyber truck in

Saudi Arabia and the United Arab Emirates, and now Katar just joined that list. Big American SUVs sell well in

the Middle East. For example, it's one of the biggest

export markets for the Cadillac Escalade and the Chevrolet Suburban.

And here's a reason Tesla needs to boost its sales even higher. Despite its third quarter surge, BYD easily sold

more beevs while Tesla sold over four hundred and ninety seven thousand units. Globally, BYD sold more than five hundred

and eighty two thousand, giving it a lead of more than eighty five thousand cars. And so for now at least,

BYD is the number one EV company in the world, and it's planning on selling a lot more cars around the world as it's working on becoming less reliant on its home market. BYD just added its eighth cargo ship

to its fleet, which now gives it an annual transport capacity of a million vehicles. But at the same time

BYD is boosting export capacity. It's facing increased terrace from

the EU Brazil in Mexico. That's why it's opening plants

in Brazil, Europe and other areas to avoid those tariffs.

BYD is also now shipping vehicles to Europe from its plant in Thailand because the terrafs on them are only ten percent compared to thirty seven percent for its Chinese made evs, and we think it's very likely the EU will try and close that loophole. There's a troubling development

in the US credit industry that we all really need to keep our eye on. Subprime delinquencies on loans are

now higher than they were in two thousand and.

Speaker 2: Eight, just before the Great Recession.

Speaker 1: Subprime borrowers are people with low credit scores, and they're starting to default on car loans, especially used cars, at higher rates. One company that specialized in subprime car loans,

Tricolor Holdings, filed for bankruptcy just weeks ago. Analysts points

out that there's always volatility in the subprime market and they're not alarmed about what's happening so far, but they also admit they're keeping a close eye on this.

Speaker 3: Hi.

Speaker 4: I'm Don Hatfield from traffic control systems, and I'm presenting the wireless BEMS solution from Intrepid Control Systems.

Speaker 3: Come and to see us.

Speaker 1: In this demo at Booth forty six hundred at the Battery Show, and also analog devices will either as well.

Speaker 4: Be happy to talk to you and help you with your solution.

Speaker 1: Now that the federal tax credits for purchasing an EV have been eliminated, analysts expect a big drop in sales, and a new Harris poll found that will likely be the case. Nearly a third of customers who are likely

to purchase an EV are now much less likely to consider or won't buy an EV at all without the incentives, And of that same group, sixty percent said they would need an incentive of at least five thousand dollars to consider an EV, and about thirty percent said they would need an incentive between twenty five hundred and five thousand bucks.

Speaker 2: But we'd point.

Speaker 1: Out that while the federal credits are gone, the deals aren't going away. Automakers like GM, Ford, Stilantis, BMW, Hyundai,

and Rivian are offering discounts for EV's and phebs that are currently an inventory. Nissan plans to launch a robotaxi

service very similar to Weimo during its twenty twenty seven fiscal year, which runs from early twenty twenty seven until early twenty twenty eight. In an effort to reach that goal,

it's kicking off a pilot using Serenum in Evans in a section of Yokohama. Nissan says a fleet of five

of these vehicles, which can hold up to three people, will operate in a geo fenced area of the city.

It plans to recruit up to three hundred members of the public to give it feedback on the service, and.

Speaker 2: Is offering free rides as one of their perks.

Speaker 1: Nissan and its partners have also established a dedicated remote monitoring center nearby to oversee the entire pilot program, which runs from the end of November until the end of January of next year. And In other av news, the

president of the European Union things self driving cars should be a reality in Europe like they are in China.

In the US, so Ursula Vanderleyan is calling for a continent wide push into autonomy. She says the EU should

adopt an AI first strategy with a focus on mobility.

Vonderland thinks this could help boost up Europe's struggling auto industry while also improving safety. Did you know that Wouling

is not owned by SAIC and GM. That's something that

we just learned. The brand is actually the subsidiary of

another company called Guangxi Automobile Group.

Speaker 2: But don't confuse.

Speaker 1: This GAC with the other GAC that you sometimes hear us refer to, which is a state owned Chinese automaker called Guangzhou Automobile Group.

Speaker 2: But now back to Wooling.

Speaker 1: It formed its joint venture with SAIC and GM in two thousand and two because it was struggling with funds and technology. However, it still has standalone projects outside of

its joint venture, including a new sub brand called is Shung that's aimed at younger buyers.

Speaker 2: It's for vehicle.

Speaker 1: The A one hundred C is a small, two door electric model that's supposed to go on sale sometime this month.

I'm sure you've noted the resemblance to the Mini EV that Wooling produces under its partnership with SAIC and GM.

It's unclear if the models are similar under the skin in any way, but Carnu's China notes that the A one hundred C is longer, wider, and lower than the mini ev. LG Energy Solution says it will start sending

workers from South Korea back to the US. Nearly three

hundred employees were detained at Hyundai and LG's plant in Georgia last month during a raid by US Immigration and Customs Enforcement or IC. South Korea had to negotiate for

the release of some of those workers, who were eventually flown back home. Now, the US and Korea have reached

an agreement that will allow workers back into the country to perform things like equipment installation, inspection, and maintenance at the battery plant.

Speaker 2: Well G Energy Solution points.

Speaker 1: Out that all those workers had passports, entered the US legally, had work visas, and had return flights already booked. It

says this proves they were only in the country temporarily to help set up that plant, and we're not taking jobs away from American workers, and that wraps.

Speaker 2: Up today's show. Thanks for watching and have a great weekend.

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AD #4150 - Tesla Q3 Sales Stun Critics; Sub-Prime Car Loans Send Warning Signs; S. Korean Workers Return to U.S. Battery Plant

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