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Runtime: 8:44
0:00 EV Buyers Can Now Earn Credit at The Point of Sale
1:49 Tesla Range Estimates Drop After EPA Changes Rules
2:36 VW Delays Mass Production of ID.2all
3:32 VW Cuts EV Prices in Europe
4:05 Tesla to Remain Ahead of BYD In EV Sales Through 2030
5:03 Lucid Accused of Firing UAW Supporting Workers
5:47 Honda May Build EVs In Canada
6:11 Continental & Aurora Hit AV Truck Milestone
6:42 Continental Reveals Swarovski Crystal Center Display
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EV BUYERS CAN NOW EARN CREDIT AT THE POINT OF SALE
EV buyers no longer have to wait until tax time to get their EV tax credit. Under new rules, the buyer can hand over rights to the credit to a dealership, which allows the dealer to apply the credit as a discount at the point-of-sale. And then the dealer is later reimbursed by the IRS. The amount is based on whatever that particular EV is eligible for, which is up to $7,500 for a new car or $4,000 for used. So, it no longer matters how much taxes you pay on your income and you can still get the full credit even if you owe on your taxes. But buyers that make over $150,000 a year on their own or $300,000 as a married couple are not eligible for the credit. It may also take some time to find an eligible dealer to buy an EV from. Dealers have had since September of last year to sign up with the IRS and according to the Treasury Department, as of last Friday 8,700 dealers filled out the paperwork. But there’s estimated to be more than 18,000 franchised dealers in the U.S. However, with the new rules kicking into effect on January 1st, the number of dealers that signed up jumped 1,300 in only one week. So, the rollout could be quick. It will also help that the IRS just announced that it’s giving dealers more time to get adjusted. It says dealers have until January 19th to submit reports of eligible EV sales that took place between January 1st and January 16th.
TESLA RANGE ESTIMATES DROP AFTER EPA CHANGES RULES
EV range estimates should start getting a little closer to their real-world numbers. The EPA changed its rules to clarify how it defines a vehicle’s drive modes (for example eco, normal and sport) and it forces an automaker to test all those drive modes. The automaker will then post the estimated range based on the average of the results. And it’s already having an impact. Tesla released updated range estimates for the Model S, X and Y that are about 6% lower on average. We expect to see more range updates, but it’s likely to have less of an impact on legacy automakers because they’ve been more conservative with their ranges.
VW DELAYS MASS PRODUCTION OF ID.2ALL
Volkswagen is delaying mass production of its small affordable EV because of weaker emission regulations in Europe will allow it to sell cheaper ICE models longer than expected. The EV, based on the ID.2all concept, was supposed to go into mass production in 2025, now that will happen in 2026 instead according to German media. The original Euro 7 emission rules would have made it difficult to make a profit on small ICE vehicles because they would require new components to meet the standards. But the auto industry successfully lobbied to weaken the rules, so they could continue to sell small ICE models profitably through the end of the decade. That’s why VW decided to delay volume production of the ID.2all for a year but it will still make the model in low numbers in 2025 before ramping up production.
VW CUTS EV PRICES IN EUROPE
And sticking with VW, the automaker is reversing course on its EV pricing strategy in Europe. Last year, CEO Oliver Blume said the company would not cut the prices of its EVs to better compete with Tesla in Europe. But due to slowing demand, VW is cutting prices of its ID models in several countries in Europe. Some of the cuts are significant, an ID.5 in France now starts just over 50,000 euros, or 8,000 euros less than when it launched.
TESLA TO REMAIN AHEAD OF BYD IN EV SALES THROUGH 2030
We’ll have to wait and see if these price cuts help boost sales but Bloomberg is no longer bullish on the Volkswagen Group’s EV efforts. Back in June 2022, a Bloomberg Intelligence analyst predicted that the VW Group would pass Tesla in EV sales this year. But now, Bloomberg is forecasting that Tesla and BYD will lead the EV race for the next several years. And interestingly, even though BYD passed Tesla in EV sales in the fourth quarter of 2023, Bloomberg expects Tesla to remain ahead of BYD in sales not just this year but through the end of the decade.
LUCID ACCUSED OF FIRING UAW SUPPORTING WORKERS
Last week, a group of 33 U.S. Senators sent letters to non-union car companies, urging them to stay neutral with the UAW’s organizing efforts. And now the National Labor Relations Board is alleging that Lucid illegally fired two employees because they joined and supported the UAW. According to a filing last week, the company also allegedly confiscated union literature and created the impression that the worker’s activities were being monitored. Lucid denied the allegations and says it respects worker’s right to organize. While the NLRB can reinstate the workers, it doesn’t have the authority to issue fines or penalize executives.
HONDA MAY BUILD EVs IN CANADA
Honda plans to start building EVs in North America in Ohio starting 2026 but it might also build them in Canada. According to Japan’s Nikkei newspaper, the automaker is considering investing $14 billion to build a new EV and battery plant in Canada. It wants to make a decision by the end of the year and kick off production in 2028.
CONTINENTAL & AURORA HIT AV TRUCK MILESTONE
Autonomous trucking just took another step forward. Continental and Aurora say they have finalized the design and architecture of their Level 4 AV systems kit for heavy-duty trucks. The two companies first entered into a partnership last April and will now start building prototype versions of the hardware at a new site in Texas as well as other parts of the world. By 2027, they plan to start producing the AV kits as well as build up a service and maintenance network.
CONTINENTAL REVEALS SWAROVSKI CRYSTAL CENTER DISPLAY
Speaking of Continental, it’s taking luxury display screens up a notch. Instead of being housed in some sort of bezel or having no frame at all, Continental is debuting the first automotive display fully embedded in Swarovski crystal. The 10-inch display features microLED technology that makes the content on the screen look like it’s floating as well as facets cut around the border to give it a more premium feel. And premium is the kind of interior you could expect see this screen in.
And don’t miss our coverage of CES, which just kicked off this week in Las Vegas. We’ll be bringing you interviews and insights from experts and executives about the latest automotive tech the world has to offer.
But that brings us to the end of today’s show. Thanks for making Autoline a part of your day.
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The crystal facets are interesting, but I would not pay extra for them. And, it still looks like a tacked-on afterthought.
With the incredible sales momentum that BYD has with their BEVs, it seems inevitable that they will surpass Tesla in sales in 2024. However, they may not hold that lead for long. They may face headwinds in trying to initiate sales in some new markets that Tesla won’t. Being a Chinese company, its just a reality they will have to deal with. Teslas is already sold in more markets than BYD, so they have an opportunity to continue to press that advantage. BYD, on the other hand, has several models that sell for much less than Tesla models do, so they have the advantage of a bigger product line to offer. It will be interesting to see how this plays out.
It looks like some correction has been made for Tesla’s over-promised range, compared to nearly everyone else. We’ll see how the EPA “rules change” affects other EVs on the market.
It seems like VW hasn’t built much “appeal” into their EVs, and from what I’ve read, the operator interface/infotainment system is not very good/user friendly.
BYD is going to face more tariffs around the world than Tesla, unless they start building transplant factories for their consumer products as Tesla has done. Maybe they’ve done some of that, but I don’t know. They have a bus factory in the US.
Yes we’ll have to see how Tesla’s new manufacturing of the “unboxed” method unfolds in their next generation vehicle and drops their costs. It reminds me of the module system that several of the OEMs tried in the 80s but the UAW seemed to stop that concept dead in its tracks or dead on the line. But we’ll soon see later this year.
Subsidizing car purchases for any reason is wrong period
Tesla should be concerned as they’re available just about everywhere in the world. While BYD is only sold in 19 countries currently. As they expand their market, they could easily surpass Tesla. BYD is already selling the Dolphin in NA in Mexico.
When will Tesla be honest without being force to be honest. As you probably guess, I’ve never been fond of Tesla….. a company that tries to make customers think they are the best at what they do when in fact they are not. Many customers eat the BS they put out or hide. From what I hear, they do not want to count OTA as a recall, although it is a recall for the rest of the other auto companies. Tesla is the King of recalls. Quality still remains to be a big issue with Tesla among many other concerns. Just think, if another company had all the issues that they have, they’d be headed for bankruptcy in a hurry.
I’ll buy an EV at the end of 2024 and I will not consider a Tesla. It will be American made like Tesla and more than likely, it will be a GM. GM should have four battery factories online and prices are expected to drop a considerably. I own two Chevys. One is a truck that five years old and the other is a car and both never never had any slight problems. Keep up the good work GM!
Joe- I agree that Tesla certainly embellishes a bit. The whole Self-Driving was certainly a stretch and launches have been optimistic, but maybe the range has been overstated due to no real standard being established. For an up-and-coming automaker they need to take advantage of every opportunity they can to influence public perception. One of the things they have had going in their favor has been this appearance that they are miles ahead when it comes to new technology. They operate differently and are willing to expand the envelope of how things have been traditionally done. Some of which I can appreciate. Traditional automakers have done similar things as I’m sure you have heard people state things like, “yeah, my car get the EPA stated MPG downhill with a good tailwind”. It’s been done before regardless if it was on purpose or by accident.
No doubt the perception Tesla has with the public has been favorable and granted them grace not given to the other automakers. However, to that point the other automakers over the many more years in existence have had their bad years and models where they’ve screwed over the public with poor manufacturing, quality, recalls, Things that should have been recalls, bankruptcies, bailouts and labor issues.
As the newness wears off Tesla will soon be viewed just like all the other auto manufacturers. I’m not in the market for an EV from Tesla, GM or anyone else currently so by time I’m ready to buy I’m not so sure there will be much of a gap between any of them.
@Lambo, dave It is remarkable with what TESLA gets away with. With “Auto Pilot” but also vehicle quality. I have a friend who spent $110,000 on a Model X. He loves it. When I was riding with him I noticed that the passenger door does not fit well in the frame. I asked him about it and his answer was: “Yeah, I know. I brought it back to the service center but they told me they can’t fix it.” I: “Do you accept that?” He: “Yeah, they will get it right on my next TESLA when I buy it.” I don’t think that any other OEM would get away with this.
Tesla has the best charging infrastructure, but iffy build quality, awful operator interface, BS names for their driver aid systems, and exaggerated range claims.
Tesla is “miles ahead when it comes to new technology” but not in any way that matters? They have slightly better efficiency than most, but the published numbers may be exaggerated. They have awful operator interface in Models 3 and Y, just to be different. The 48 volt low voltage system will allow smaller wire, but without weird stuff like steer by wire, does it make much difference? You can use 22 gauge wire for the led tail lights instead of 18 or 20 gauge. So what? There will probably be a $1000 low voltage battery to replace instead of a $100 low voltage battery.
Kit,
Exactly my thoughts on Tesla also. Haven driven all of them, none of them impress me at all. It is all hype no substance. It is fine though, people have proven, by buying stupid pink cups, that hype sells. Normally I would say it is their money so they can buy whatever they want to, but it is not their money. It is tax payers subsidizing their purchases and that is infuriating. Subsidies need to end now and then I will be happy to see anyone buy anything that they want to buy for any reason.