AD #4340 - Tesla Burns Through Cash; Ford and Geely Partner in Europe; U.S. Likely to Modify Bill That Would Ban Mercedes

AD #4340 - Tesla Burns Through Cash; Ford and Geely Partner in Europe; U.S. Likely to Modify Bill That Would Ban Mercedes Autoline Daily · Jul 23, 2026

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Brand

Tesla

Tesla is a company that makes mostly electric cars. Here they’re talking about Tesla’s quarterly results and how money spent on advanced tech affects how much profit the company makes.

Term

They’re talking about advanced computer systems (AI), machines that can automate tasks (robotics), and technology aimed at driving with less human input (autonomy). The point is that Tesla is spending a lot on it, which can reduce profit in the short term.

Term

emission credits

Emission credits are like government-approved “paper allowances” related to pollution limits. If a company doesn’t meet targets, it can buy credits from others, and if it does well, it can sell credits—so changes in enforcement can affect revenue.

Brand

Hundai

Hyundai is a car company. They’re discussing Hyundai’s sales and profits, and how problems getting parts, higher material costs, and stronger competition hurt earnings.

Term

battery electric vehicles

Battery electric vehicles are fully electric cars that run on a battery instead of gasoline. In this report, BEVs are growing fast and make up a big share of Europe’s sales.

Term

plug and hybrid sales

Plug-in hybrids are cars that can run on electricity, but they also have a gas engine. You can charge them like an EV, and the host is saying these sales are rising too.

Company

Intrepid

Intrepid is a tech company that helps car makers test and verify vehicles before they go into production. They use software tools to find problems and confirm cars are ready to be built and sold.

Term

diagnostic trouble codes

Diagnostic trouble codes are error messages a car’s computer saves when something goes wrong. Mechanics and software tools can read them to figure out what system is having trouble.

Term

non-compliant vehicles

Non-compliant vehicles are cars that don’t meet required rules or standards. Here, the idea is that software and testing can flag which cars need to be fixed before they’re cleared for production.

Term

fleet testing

Fleet testing means testing many cars as a group to make sure they all work correctly. The host is saying the approach is becoming more software and data based.

Term

joint venture

A joint venture is when two companies team up to run a project together. The episode says Ford and Geely are partnering to build cars in a shared manufacturing setup.

Term

retooling

Retooling means changing a factory so it can build different cars. The episode says the Valencia plant has to be updated because it will start producing new models, including electric SUVs.

Car

Ford Bronco

The Ford Bronco is an SUV made for off-road driving, like dirt roads and rough trails. The podcast is saying Ford plans to build a new version soon, and it also mentions a new type of crossover that uses multiple energy sources. This is important because it suggests the Bronco lineup will change with newer technology.

Car

Ford Escape

The Ford Escape is a compact SUV meant for everyday driving. The podcast says Europe’s version of it (called the Couga) will still be made, even though other parts of the lineup are changing. That matters because it affects which models you can buy depending on where you live.

Term

platform

A platform is the shared foundation a car is built on. The episode says the new Bronco crossover will use a Geely platform, meaning it shares key parts with other vehicles built on the same base.

Term

connected vehicles

Connected vehicles are cars that can communicate using wireless networks. The episode says a U.S. bill would restrict sales of certain connected cars if the company has enough Chinese ownership.

Term

fifteen percent rule

This is a legal cutoff number: if a company is more than 15% owned by certain Chinese entities, it could be affected by the proposed ban. The episode says Mercedes would fall under that threshold based on ownership stakes.

Car

Volkswagen Gli

The Volkswagen Golf is a compact car that’s been sold for many years for regular everyday use. The podcast is talking about who has ownership stakes in the company and leadership roles. Those details can matter because they can affect how the car is developed and produced.

Car

Nissan Leaf

The Nissan Leaf is an electric car that uses batteries and an electric motor instead of a gas engine. The podcast mentions a Nismo version, which uses the same main battery and motor setup but is set up to feel more sporty. So it’s still an electric Leaf, just with different tuning.

Term

kilowatt hour battery

A kilowatt-hour battery rating tells you how much energy the electric car’s battery can store. The episode mentions two battery sizes (52 kWh and 75 kWh) as options for the Leaf.

Part

upgraded suspension

Suspension upgrades change how the car rides and handles over bumps and during cornering. The episode says the Nismo Leaf gets stiffer/updated suspension parts to make steering feel more responsive.

Part

stabilizers

Stabilizers help keep the car flatter when you turn. The episode says the Nismo Leaf uses stabilizers to improve how the car responds when steering.

Part

bushings

Bushings are the soft mounts that connect suspension parts. If they’re upgraded, the suspension can feel tighter and more precise, which helps steering response.

LIVE

Speaker 1: This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry. Tesla reported its Q two results,

and it sold more cars, which brought in more money, but it also continues to burn through that cash. The

ev maker delivered a little over four hundred and eighty thousand vehicles in the second quarter, a jump of twenty five percent That pushed revenue up twenty six percent to twenty eight billion dollars, but Tesla is spending a lot of that money on AI, robotics and autonomy, which impacted its bottom line. Its Q two net income fell five

percent to one point one billion dollars. Tesla is also

seeing far less income from other automakers buying emission credits now that most fines for missing targets have been rolled back or paused. Revenue from credits was one hundred and

forty six million dollars, down sixty seven percent from the second quarter of last year and even far behind the three high hundred and eighty million it made in Q one.

Hundai also reported its second quarter earnings. The automakers sold

more than nine hundred and ninety thousand vehicles in Q two, down nearly seven percent from last year. While its revenue

was up two percent to thirty three billion dollars, its operating profit of one point nine billion was a drop of twenty one percent, and its net profit slit eleven percent to two billion dollars. Hondai says its profits were

impacted by supplier disruptions, higher raw material costs, and intensifying global competition. Despite its struggles, though, Hondai says it's sticking

to its annual targets and expects an operating margin between six point three and seven point three percent and annual sales of four point one million vehicles. Car sales in

Europe were strong in June thanks to electrified vehicles. According

to the European Automobile Manufacturers Association, automakers sold more than one point four million vehicles across the region last month, which was up thirteen percent compared to last year. That's

the largest year over year gain in Europe since twenty twenty three. Battery electric vehicles soared fifty one percent, plugin

hybrid sales jumped about twenty three percent, and hybrids were up seventeen percent. Electrified vehicles accounted for seventy one percent

of sales in June, with BEVs alone accounting for twenty five percent of the market. Meanwhile, sales of gas powered

cars dropped twelve percent and diesels tumbled by seventeen percent. Overall,

sales are going well so far this year. In Europe,

automakers have sold more than seven point two million vehicles in the first six months of the year, which is up six percent from a year ago.

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Speaker 1: In February, we started seeing reports about a possible tie up between Ford and gly and Spain, and now the two automakers have made it official. They're forming a manufacturing

joint venture in which Ford will own sixty six percent and Gili will own the remaining thirty four percent. It

will require retooling fords Valencia plant, which currently only builds the Couga, so it can make models for both auto makers.

The Couga, which is Europe's version of the Escape, will continue to roll down the line, but the facility will also start building a new version of the Bronco, a new multi energy Ford crossover that's based on a Gli platform, and two electric SUVs from Gili. All the models go

into production in twenty twenty eight and will be sold across Europe. Before this move, the Valencia plant was in trouble.

It was tooled to make four hundred thousand vehicles a year, but sales of the Couga have dropped below one hundred thousand units. However, now it can retain jobs and the

upgrades will allow the companies to use more of the plant, with the potential to make five hundred thousand vehicles a year.

Here's a follow up to Tuesday's report on Mercedes. A

panel in the US Senate did vote to send a bill to the full Senate floor that would ban the sale of connected vehicles by automakers that are more than fifteen percent owned by Chinese entities. That's bad news for

Mercedes because it meets that threshold since BAIC owns ten percent of the company and GLI chairman Lishu Fu also has a ten percent stake. If the bill passes as is,

Mercedes would have until twenty thirty to come under compliance.

But the good news for Mercedes is the legislation will likely be modified before it becomes law. Senator Ted Cruz

criticized the fifteen percent rule and called for more qualitative assessments of national security risks, and Senator Bernie Moreno said companies can seek a waiver if they don't meet the bill's requirements, So it looks like Mercedes can breathe a sigh of relief. We recently reported how the Chinese market

has seen six hundred and fifty new and refreshed Mind models launched so far this year, which works out to four a day, But that's just the average. Gascou reports

that in a span of two and a half hours, seven new models were revealed last Thursday, Leotto japanng Im Wuling, Leap Motor, and Way All introduced new vehicles ranging in price from about thirteen thousand to fifty one thousand, five hundred dollars. However, this is not really a sign of

a healthy market. New car sales are down twenty percent

so far this year in China. Right now, massive amounts

of exports are propping the industry up, but China could be in a real crisis if anything slows those exports down.

Nissan launched a Nismo version of the Leaf in Japan.

It has the same batteries and motors as the standard version, either a fifty two kilowat hour battery with a one hundred and thirty kilowat motor or a seventy five kilowat hour battery with a one hundred and sixty kilowat motor.

While the total puts are the same, the Nismo version's initial acceleration is about twenty percent stronger, and it sustains acceleration longer at higher speeds. In addition to that, the

model gets an upgraded suspension with dedicated springs as well as stabilizers and bushings to improve rigidity and steering response.

Pricing starts at forty six hundred dollars in Japan, which is about six grand more than a standard Leaf. Nissan

also plans to sell the model in the US and Europe, but it didn't say when it will launch in those markets.

Speaker 3: And before we go, just.

Speaker 1: A reminder to tune in to Autoline after hours today at three pm Eastern time. But that's a rap for

this show, so thanks for tuning in.

Speaker 3: Auto Line Daily is brought to you by Alex Partners When it Really Matters CSP, the Composites Solution Partner, Intrepid Control Systems, over the Air Engineering, boost your game and thanks to the following YouTube and Patreon members.

Speaker 4: At CSP, we work with OEM engineers across the country on their journeys to lighter, safer, and more eco friendly vehicles.

Learn more at VCSP dot com. We act, we grow,

we transform, we protect, we rescue in moments that define the future. We are the partner you can trust.

Speaker 3: ALEX Partners When it Really Matters

0:00

8:43

Tesla

AI, robotics and autonomy

emission credits

Hundai

battery electric vehicles

plug and hybrid sales

Intrepid

diagnostic trouble codes

non-compliant vehicles

fleet testing

joint venture

retooling

Ford Bronco

Ford Escape

platform

connected vehicles

fifteen percent rule

Volkswagen Gli

Nissan Leaf

kilowatt hour battery

upgraded suspension

stabilizers

bushings

About this episode

Original notes