The EV world lit up with speculation yesterday after reports emerged from China stating that Tesla, and specifically its Head of Investor Relations, Travis Axelrod, had confirmed plans for a new lower-cost EV set to debut next year during a Deutsche Bank meeting in NYC on Monday.

Predictably, the rumor mill began grinding away. To separate fact from fiction, we obtained a copy of Deutsche Bank’s report summarizing the meeting. While the report offers some clarity on Tesla’s ambitions, it stops short of providing concrete details, leaving plenty of room for speculation about what’s to come.

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According to the Deutsche Bank report, Axelrod participated in the bank’s Autonomous Driving Day in New York, where discussions centered around Tesla’s Full Self-Driving (FSD) technology, robotaxi development, and the Optimus humanoid robot. Somewhere in this high-tech mix, Tesla’s product plans for 2025 emerged, though the details were far from comprehensive.

Product Roadmap

The Deutsche Bank report offers a broad overview of the meeting, albeit without attributing direct quotes to Axelrod. However, the context strongly suggests that the new lower-cost model was a key topic of discussion. If true, this marks a significant shift in Tesla’s product strategy for the coming years.

The report outlines Tesla’s strategy to unveil several new vehicles in 2025:

New models and 2025 volume growth

• A new, entry-level EV referred to as “Model Q” is set to launch in the first half of 2025. It will reportedly be priced under $30K with subsidies (or $37,499 without).
• In the second half of 2025, Tesla is expected to release additional models aimed at expanding its total addressable market (TAM). One of these is believed to be a 3-row, longer-wheelbase Model Y variant, likely exclusive to China.
• Tesla plans to build all new models on existing production lines, emphasizing efficient use of capacity to achieve its targeted 20–30% volume growth in 2025.
• While management remains confident in scaling up the China supply chain, the high end of Tesla’s volume target will require flawless execution, particularly in North America.
• The company’s plans for its Mexico plant remain dependent on geopolitical developments and tariff policies under the new Trump administration.

A Budget (Driveable) Tesla

Now, let’s dissect the key points regarding the model presentations. Arguably, the most noteworthy aspect here is the introduction of a more affordable model, tentatively named “Model Q” by Deutsche Bank rather than Axelrod himself. Notably, the report made no mention of specifications or the rumored “Redwood” codename circulating online.

Elon Musk has been skeptical of low-cost models in the past, not out of dislike, but because of the significant challenges in achieving profitability, maintaining quality, and overcoming high development and production costs.

Back in October, during an investor call, he stated, “Having a regular (aka driveable) $25K model is pointless. It’d be silly.” That said, the projected $30K price point for the Model Q doesn’t contradict Musk’s remarks. If anything, it suggests Tesla is threading the needle by offering a lower price point without completely compromising its profitability.

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Currently, Tesla’s least expensive vehicle in North America is the RWD, single-motor Model 3, priced at $34,990 with the $7,500 federal tax credit (or $42,490 without). This makes the introduction of a sub-$30K Tesla a significant move – assuming it’s more than just a smaller, stripped-down version of the Model 3.

What Form Could The Model Q Take?

If the Model Q materializes, it begs the question: will it be an entirely new, compact offering or a derivative of existing models like the Model 3 or Y? Perhaps it could take shape as a smaller hatchback with crossover-like proportions, as shown in our rendering. A more far-fetched, albeit intriguing, possibility might involve a driveable version of the Cybercab. But I digress. It’s anyone’s guess at this point, but the report points to a reveal in the first half of 2025, meaning we won’t have to wait long for answers.

Stretched Model Y For China

The Deutsche Bank report also confirms recent rumors from China about a stretched, three-row version of the Model Y. This longer-wheelbase variant is designed specifically for Chinese buyers and is expected to build upon the refreshed Model Y, codenamed “Juniper,” which is set to debut next year. The addition is logical in a market where larger/longer family vehicles are highly appealing, enabling Tesla to better compete with local rivals.

What Else Is Coming?

As for the “other new models” mentioned in the report, details remain vague. However, Tesla’s focus on expanding its Total Addressable Market (TAM) indicates the company is aiming to capture new customer segments – whether through pricing strategies, diverse body styles, or regional exclusivity.

More: Musk Predicts Tesla’s 2025 Sales Will Surge 30%, Gives A Nice Boost To Share Prices

Additional points in the report highlight Tesla’s confidence in scaling its supply chain, particularly in China, while also emphasizing the challenge of flawless execution in North America. Regarding Tesla’s much-discussed Mexico plant, its future hinges on geopolitical factors and tariff policies under the new Trump administration, which is an unpredictable variable, to say the least.

A Critical Year Ahead

While the Deutsche Bank document offers an intriguing glimpse into Tesla’s roadmap, it stops short of providing concrete details. What we do know is that 2025 is shaping up to be a pivotal year for the EV maker, with affordability and versatility taking center stage.

Looming over all of this, however, is the potential for a seismic shift in America’s EV policy. If the upcoming Trump administration scraps the $7,500 federal tax credit – arguably the key driver of EV sales – Tesla and the broader industry could face serious headwinds. Germany serves as a cautionary tale; after subsidies were cut in December 2023, Tesla’s sales there plummeted by over 43% this year.

Obviously, the stakes couldn’t be higher. Yet, as always with Tesla, the answers remain as unpredictable as the company itself.

Puts and takes for 2025 margins

• Tesla explained that 2025 will be a year of product launches, and whenever that happens, there will be disruption to profitability as it will be in the early days of building a product and have more inefficient fixed cost absorption.
• But this could be offset by a lower cost of goods sold from the more affordable products.
• 2025 margins will also hinge upon where ASP (Average Selling Prices) lands based on the demand curve.
• The main goal is to focus on growing volume and garnering incremental gross profit (as opposed to targeting a certain gross margin %), delivering at least overall FCF (Free Cash Flow) breakeven. The auto business is basically funding more ambitious future projects.

The German automotive industry is facing difficult times, caught in a storm of strikes, internal tensions at the Volkswagen Group, cost-cutting measures at Mercedes, Ford and BMW, and shifting market dynamics putting pressure on all brands. While the new vehicle market managed to hold its ground in November with 244,544 passenger car sales—a slight 0.5% dip compared to the previous year—the real drama is unfolding in the EV sector, where sales have taken another hit.

EVs Struggle in Germany’s Post-Subsidy World

The numbers don’t lie: EVs are in deep trouble in Europe’s largest market. According to figures released by the country’s Federal Motor Transport Authority (Kraftfahrt-Bundesamt – KBA), November didn’t bring any relief, with EV sales plunging by 22% year-over-year. A total of 35,167 new electric vehicles were registered that month, accounting for 14.4% of all new registrations. While that’s still a decent share, it looks like they’ll struggle to meet the ambitious targets set just a few years ago.

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Much of the current slump can be traced back to the German government’s decision to end subsidies for electric cars at the end of 2023. At the time, Transport Minister Volker Wissing argued that the EV market should be able to stand on its own without public aid, claiming that permanent subsidies aren’t a sustainable solution. It seems, however, the market isn’t quite ready to walk unaided. As Germany grapples with its EV slowdown, eyes will turn to other major European markets, like France and Spain, where similar subsidy cuts are on the horizon for 2025. Will they see the same fate?

Hybrids Keep the Flame Alive

If EVs are sputtering, hybrids are thriving in Germany. In November, 94,554 hybrid vehicles found new homes, marking an impressive 20.3% increase from the same month last year. Of these, 20,604 were plug-in hybrids, showing a 13.7% uptick. Hybrids now account for a solid 38.7% of all new registrations, proving that consumers are still drawn to greener options, but perhaps with a foot in both worlds.

More: America’s Best-Selling EVs In 2024

Meanwhile, traditional fuel-powered cars are showing mixed results. Gasoline-powered vehicles dipped by 5.4%, while diesel saw a sharper decline of 7.5%. LPG-powered cars, despite their niche appeal, recorded a modest 3.2% gain, though they still occupy a negligible share of the market.

Tesla and Polestar: The EV Struggles Continue

It’s not just the overall market that’s feeling the pressure; EV makers themselves are getting hit hard. Tesla, the top dog in the electric revolution, posted a dramatic 55.1% drop in sales in November, delivering just 2,103 units in Germany. Year-to-date, Tesla’s German sales have fallen by 43.6%, with only 33,669 units sold so far. And it’s not just Tesla that’s in trouble. Polestar, another EV-only manufacturer, saw its November sales plummet by 26%, with a massive 52.6% drop in total sales for the year.

Rising Stars and Declining Imports

While EV makers are in a pinch this year, some traditional and import brands are seeing a turnaround. Toyota, the poster child of hybrids, for instance, had a spectacular November, with sales up 104.5%, securing 4.2% of the market share. Peugeot (+78.5%), Citroen (+16.9%), and Skoda (+16.5%) also posted impressive gains. On the flip side, several high-volume import brands are heading in the opposite direction. Fiat saw a steep 39.1% decline, while Kia (-16.9%), Mazda (-14.3%), Hyundai (-11.8%), and Renault (-0.9%) all delivered negative growth in new registrations.

The Outlook for Germany’s Auto Industry

In sum, Germany’s automotive market remains a study in contrasts: steady sales overall, but with a marked shift away from pure electric vehicles. With the government scrapping subsidies and EV makers stumbling, the future of electric mobility in Germany appears less certain than ever. Meanwhile, hybrids are enjoying a surge, proving that the internal combustion engine still has life left in it. No doubt, it’s a confusing time for the auto industry, one that might require more than just a policy shift to right the ship. What’s more, it brings the EU’s ban on ICE-powered cars that’s set for 2035 into question, as buyers may not be ready yet for such a huge change.

PASSENGER CAR SALES GERMANY

November’s performance for the Honda Group was a tale of contrasts, most notably the continued decline in sales of Acura’s two remaining sedans, the Integra and TLX. But in the midst of these disappointing numbers, there are a few bright spots, including the Honda Prologue. Let’s dive into the details.

Prologue Breaks Records

In November, Honda delivered 6,823 units of its electric Prologue SUV, setting a new monthly sales record. Since its launch in April this year, the Prologue has moved a total of 25,132 units, a respectable figure for a vehicle still finding its place in the competitive electric SUV market. Developed in collaboration with General Motors, the Prologue is built on the same Ultium battery architecture and BEV3 platform as the Chevrolet Blazer EV, Acura ZDX, and Cadillac Lyriq, and is manufactured by GM.

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What makes the Prologue particularly impressive is its ability to outpace GM’s own offerings based on the same platform. In the third quarter of 2024, the Prologue sold 12,644 units, easily surpassing the Chevy Blazer EV (7,998 units) and the Cadillac Lyriq (7,224 units). Ouch. It’ll be interesting to see how the Prologue fares at the end of Q4, especially when GM’s results come in, given that the company has stopped releasing monthly sales reports.

Sales Snapshot: Honda vs. Acura

Overall, Honda and Acura saw an uptick of 14.5% in November, with total sales reaching 121,419 units. Year-to-date, they’re up 8.7%, tallying 1,288,260 units. Breaking it down, Honda had a solid November, with sales increasing 15.9% (110,020 units) and an 11.1% rise year-to-date (1,168,890 units). On the flip side, Acura took a hit, with sales dropping 10.1% in November. Year-to-date, however, Acura is still up a modest 2.6%.

Accord, Integra, and TLX: Supply Chain Struggles

Honda has been quick to blame the struggles of some of its key models, like the Accord, Integra, and TLX, on supply chain constraints. Specifically, the retooling of the Marysville Auto Plant to establish Honda’s EV Hub in Ohio has caused production delays. While this might explain some of the shortfall, it doesn’t do much for the dealerships facing disappointed customers looking for the latest sedans.

Honda Pilot Soars, Acura Stumbles

The biggest success story from Honda and Acura in November was the Honda Pilot, which saw sales soar by 38.5%, reaching 12,652 units. Other popular Honda models like the CR-V (+9.5%), Civic (+9.1%), Odyssey (+12.2%), and HR-V (+18.3%) also posted solid gains.

Acura, on the other hand, had a rough month, with only the MDX SUV (+6.2%) managing to show a positive sales trend in November, moving 3,386 units. The rest of the lineup didn’t fare well, with the Integra and RDX falling 18.5% and 8.3%, respectively. Looks like Acura’s luxury ambitions are facing a rather painful reality check.

“The Times They Are A-Changin’,” sang Bob Dylan. But sometimes, the more things change, the more they stay the same. Porsche, like many automakers, is recalibrating its strategy in response to shifting political and consumer winds. Once steadfast in its commitment to an electric future, the sports carmaker is adjusting its course – at least temporarily. Central to this adjustment is the Macan, one of Porsche’s best-sellers, which could follow a different path than originally planned.

As we’ve learned, Porsche is now exploring how to integrate more combustion engines into its lineup, driven in part by sluggish Taycan sales and a surge in demand for hybrid and combustion models. This change comes on top of potential policy shifts in the US once the new Trump administration takes over next year.

More: Porsche Changes EV Plan, Will Give Electric Models ICE Powertrains Too

Although the details remain in flux, Porsche CFO Lutz Meschke confirmed during the company’s Q3 results that “We will refresh our combustion engine cars, including the Panamera and the Cayenne, and of course, we will continue to rely on plug-in hybrids.”

What About The Macan?

Earlier this year, Porsche officials had indicated that production of the combustion Macan would end by 2026, leaving the electric version as their sole luxury compact SUV. “The platform has reached the end of its cycle,” Porsche executive board member Albrecht Reimold said back in July.

The ICE Macan has already been pulled from European markets not due to lack of demand, but because its platform no longer meets the latest EU cybersecurity regulations. Bringing it into compliance would be prohibitively expensive for such an old platform. However, the combustion version remains available in key markets like North America, where regulatory standards are apparently less stringent.

The ICE Version Isn’t Done Yet

We reached out to Porsche USA to clarify whether these latest developments would affect the ICE Macan’s availability in North America and whether there are any plans to extend the model’s lifecycle.

“The current ICE Macan will continue to be offered in the U.S. in its current form for the foreseeable future, and will be sold alongside the new all-electric Macan,” a Porsche spokesperson told Carscoops. “The length of this parallel offering will also be determined by customer demand and regulatory requirements.”

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While this doesn’t necessarily contradict Porsche’s earlier statement about halting production by 2026, the phrasing suggests that the ICE Macan could have a longer lifespan than previously expected if demand remains strong. How long that might be is anyone’s guess, but keep an eye on the sales split between the ICE and EV Macans.

A Third Facelift?

The reality, however, is that the ICE Macan is long in the tooth, made even more apparent by the presence of the mechanically unrelated EV model. In production since 2014, it has undergone two facelifts in 2019 and 2021, along with numerous smaller updates in between. Despite these efforts to keep it fresh and competitive, the SUV remains tethered to an aging platform, with some inherent limitations that you simply can’t fix, such as tighter cargo space and a more cramped passenger cabin compared to its rivals.

On the other hand, the Macan remains a standout in its segment, delivering some of the best driving dynamics you’ll find in an SUV. Add to that a high-quality, endlessly customizable interior—though its premium price tag makes sure you don’t forget it—and it’s easy to see why it’s still a favorite.

However, competitors are advancing rapidly with newer platforms, roomier designs, and far better tech features, placing mounting pressure on the Macan to keep up. If it were to go beyond 2026 in its current form, Porsche would no doubt have to work some serious facelift magic to keep it from feeling outdated.

Porsche’s Long-Term Plans

We also asked Porsche about the future of its broader portfolio following the recent comments from the CFO during the Q3 results.

More: Porsche Macan EV Gains RWD, 4S Variants, And Off-Road Design Package

“Generally speaking, Porsche customers will still be able to choose between efficient combustion engines, powerful plug-in hybrids, and all-electric models in the 2030s,” the spokesperson told us. “In recent years, the product strategy has aimed to offer all three powertrain variants across every available Porsche segment – sports cars, sports sedans, and SUVs. Our strategy is designed to allow more than 80 percent of our new cars to be fully electrified by 2030, depending on customer demand and the development of electromobility in different regions.”

So, for now, Porsche’s long-term plans remain largely intact. The brand still aims for over 80% of its new cars to be fully electrified by (or possibly after) 2030 – assuming that customer preferences and global trends align.

It feels like every other week there’s a new Chinese automaker rolling into Europe, undeterred by the looming threat of EU tariffs. This time, it’s Leapmotor, with some serious backing from one of Europe’s automotive heavyweights, Stellantis. Debuting at the Paris Motor Show, Leapmotor’s B10 compact SUV is looking to compete against the likes of the Kia EV3, Jeep Avenger, and Hyundai Kona, offering the usual pitch of high-tech features at relatively affordable prices.

This latest world premiere throws a spotlight on Leapmotor’s aggressive expansion in Europe, with over 200 dealers already set up across 13 markets, with ambitions to reach 500 sales points by 2025.

More: All The World Premieres At The 2024 Paris Auto Show

The B10 rides on Leapmotor’s latest LEAP 3.5 platform, packed with the usual tech buzzwords: advanced driver assistance systems, a customizable digital cockpit, and smart connectivity. There’s an all-electric version as well as a range-extended model with a 1.5-liter engine to keep the EV vibes alive without the fear of running out of juice.

However, we’re still waiting on the actual specs, including range, power, or anything that might make the B10 stand out in an already crowded field of electrified sub-compact and compact SUVs.

Familiar Design Cues

On the design front, it’s all about sleek, simplified lines and details like the flush door handles and thin light bars at both ends, all borrowing heavily from its bigger sibling, the C10. It looks good, but it’s hard to shake the feeling we’ve seen this before—there’s even a hint of Cayenne in the profile and rear. Leapmotor kept the interior hidden behind blacked-out windows, but it’s likely to mirror the C10’s minimalist cabin, with large screens dominating an otherwise simple dashboard.

Pricing and Availability

Pricing is still under wraps, but when the B10 arrives in Europe late next year, it’s expected to come in just under €30,000, positioning it right in the thick of an already crowded segment dominated by well-established rivals. With competition this fierce, Leapmotor will need more than buzzwords to truly stand out.

Stellantis Powers Leapmotor’s European Push

Leapmotor’s European push is only happening thanks to Stellantis’ distribution and service network, which means the Chinese brand is leaning heavily on its partner’s resources to make this happen. Tianshu Xin, CEO of Leapmotor International, admitted as much, calling Stellantis’ infrastructure their “unmatched advantage.” In other words, this might be less about Leapmotor breaking into new markets and more about Stellantis adding another brand to its crowded lineup.

With plans to release one new model every year for the next three years, Leapmotor clearly has ambitions. But whether the B10 will stand out or simply fade into the mix remains to be seen. There’s no U.S. release in the cards, so for now, Europe is Leapmotor’s proving ground. Let’s see if Stellantis’ backing can turn this partnership into more than just another checkbox on the EV trend sheet.