The number of consumers taking on new-vehicle loans with monthly payments of $1,000 or more hit a record high last quarter, underscoring just how expensive it’s becoming to get behind the wheel. With the cost of financing skyrocketing, analysts are advising potential buyers to consider alternatives, such as used cars or new EV leases, to keep their budgets in check.

During the final quarter of 2024, the average amount financed for new vehicle purchases in the US climbed to $42,113, up from $40,713 in Q3 and significantly higher than the $39,977 average from Q4 2023. Among those locked into new-car loans, a striking 18.9% are now grappling with payments of $1,000 or more – a far cry from what most would consider affordable.

Read: 92% Of EV Owners Will Never Go Back To ICE-Only, New Study Finds

Data published by Edmunds reveals that the average loan term in Q4 2024 reached 68.8 months, a slight uptick from the 67.8-month average in the same quarter last year, but holding steady from Q3 2024. It’s not just the proportion of shoppers with hefty $1,000+ loans that have gone up, as the average monthly payment across the board has jumped from $739 twelve months ago to $754 at the end of the year. Interestingly, despite rising costs, the average down payment for new vehicles dropped from $7,074 to $6,856 over the same period.

Interest rates, while still high, are showing signs of easing. The average annual percentage rate (APR) on new vehicle loans fell to 6.8% last quarter, down from 7.1% in Q3 and 7.4% in Q4 2023, a small consolation for those financing record-high amounts.

New Car Finance Data (Averages)

Jessica Caldwell, head of insights at Edmunds, noted that rising vehicle prices and financing costs are putting significant pressure on the average car buyer’s budget.

“It’s getting more and more difficult for the average shopper to walk into a new-car dealership and leave with a set of keys without feeling like they are forced to create extra room in their budget from some other aspect of life,” said Caldwell. “The one bright spot is that interest rates seem to finally be on a downward trajectory, so buyers are at least getting more car for their buck rather than allocating their payments to interest.”

Used Cars: The Practical Choice (With a Catch)

For many consumers, getting a used car is often a smarter financial move. Last quarter, the average amount financed for a used vehicle was a more manageable $28,675, requiring an average monthly payment of $533, substantially lower than the figures for new vehicles. The downside of going used is that APRs are generally higher and in Q4, averaged a brutal 11%.

“For longstanding new-car buyers coming back to the market for the first time in years, used purchases and new EV leases are your best bets to keep your monthly payment in line with what you were accustomed to in pre-pandemic times,” noted Ivan Drury, another Edmunds analyst.

In a market where affordability feels increasingly out of reach, alternatives like used cars and heavily factory-discounted EV leases offer some breathing room for budget-conscious shoppers. But even those options come with their own challenges, because apparently, owning a car without financial acrobatics is so 2019.

Used Car Finance Data (Averages)

If you’ve ever dreamed of owning a rare electric Mustang with a Shelby badge, Hertz might just have a deal for you—well, “deal” might be a stretch. The rental car giant has quietly cut prices on its exclusive Shelby-tuned Ford Mustang Mach-E GTs, making it possible to snag one with very low mileage for $60,000. That’s assuming you’re ready to fork over that much cash for a former rental car.

Compared to some of the other EVs Hertz has been off-loading in recent months, that’s a hefty chunk of change, especially considering that a brand-new Mustang Mach-E GT starts at $54,490. But the Shelby version does come with one key ingredient its standard sibling can’t offer: exclusivity.

Read: Hertz Selling Its Shelby Mustang Mach-E Fleet For A Price That’ll Short-Circuit Your Wallet

Hertz partnered with Shelby to create this special-edition Mustang Mach-E GT, producing just 100 units. Of those, 63 are now up for sale through Hertz Car Sales. Most are scattered across Texas, Arizona, California, Nevada, and Florida. All but 10 of these Shelby Mach-Es are listed at the same $60,000 price point.

For reference, just two months ago, the cheapest one of these EVs cost $65,000, despite mileage ranging anywhere from 10,000 to over 63,000 miles. Now, you can grab one with as few as 3,048 miles on the clock for $60,000, suggesting that Hertz may have been struggling to move inventory and decided to sweeten the pot with lower prices. At the time of writing, we found over 10 examples with fewer than 4,000 miles and another 10 with less than 5,000 miles.

What Makes the Shelby Mach-E GT Special?

Let’s be honest, you’re not buying this car just for the specs; it’s all about the badge and the exclusivity. But the Shelby version does come with a few visual and performance-oriented tweaks to set it apart from the regular GT. Visually, it has a special vented hood, matte gold accents, carbon fiber on the rocker panels, and special black wheels.

It also rocks an Active Performance Exhaust Sound System from Borla, which attempts to mimic the rumble of internal combustion engines. If you’ve always wanted a fake-V8 soundtrack for your EV, this one’s got you covered.

More: Hertz Employees Abandon Post, So Customers, Including Denver’s Mayor, Drive Off In Anything With Keys

Most of the examples up for sale by Hertz have less than 10,000 miles on the odometer. They all look in good condition, and buying one could be a chance to get into the driver’s seat of something pretty exclusive. Of course, you could buy a brand-new Tesla Model 3 Performance for the same price or even significantly less if you opt for the base grey color to qualify for the $7,500 federal tax credit, but that car doesn’t have the Shelby nameplate. Most EVs also don’t have the same level of exclusivity as the Shelby Mach-E GT.

With just 100 units produced, it’s possible that these Mach-Es could become quite the collector items in the years to come, but they’re also EVs, so any debate about their collector status is still premature.

Photos Hertz

No other production car on the planet can accelerate as quickly as the Rimac Nevera, but it’s not the car’s straight-line performance that had to be put to the test to avoid a collision in Germany recently. Instead, the electric hypercar’s brakes and the driver’s quick reactions were the deciding factors in preventing the Nevera from rear-ending a reckless Renault driver.

The short video shows the dark Nevera traveling towards an exit off a German highway near Dusseldorf. All seems fine until a silver Renault begins to slowly move across the lane next to the Nevera. While just feet away from hitting a series of bollards separating the highway from the turn-off, the driver flicks on their turn signal and turns to the right, cutting off the Rimac.

Read: 1,989 HP Rimac Nevera R Is Harder, Faster, Lighter And Limited To 40 Units

In an instant, the driver of the hypercar slams on the brakes, and the air brake pops into action. While it’s hard to see how close the two came to colliding, the Rimac could have easily hit the Renault had the driver not been paying attention. That could have left the Renault driver with a hefty repair bill likely big enough to make them consider selling a kidney.

Several other hypercars have air brakes like the Nevera and while they do provide some extra braking, their primary function is to increase force over the rear tires, allowing the rear brakes to work more effectively. The results are most apparent at higher speeds, but even at lower speeds, as seen here, air brakes like this add a bit of theater, and in a hypercar, you can never have too much theater.

The Nevera also has a fierce set of friction brakes, which played a pivotal role in setting new 0-100-0 km/h, 0-200-0 km/h, 0-300-0 km/h, and 0-400-0 km/h world records in 2023.

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The Hyundai Ioniq 5 N has proven to the world that it’s possible to have a fun and exciting EV that tickles the senses, just like a combustion-powered car. However, this test shows that it does struggle to compete against one of the finest sports sedans on the market; the BMW M3 CS.

Soon after we saw the Hyundai go head-to-head in a U-Drag Race test against a Tesla Model 3 Performance, Edmunds lined it up alongside an M3 CS to see how the EV would compare. It is worth pointing out that these two are not direct rivals. Whereas the M3 CS is a hardcore sedan, the Ioniq 5 N is a much larger electric SUV and, as such, weighs a lot more than its German foe.

Read: Cornering Power Wins Over Speed In This Performance EV Battle

Off the line, one may think the Ioniq 5 N would have the advantage thanks to its extra power and the instantaneous torque provided by its two electric motors. However, the BMW is roughly 1,000 lbs lighter and has a better weight-to-power ratio of 7.14 lb/hp compared to the 8.08 lb/hp of the Hyundai.

As such, it rockets away from the starting line at a frightening pace, almost immediately opening up a car length advantage over the Ioniq 5 N. As the speeds build, the Hyundai keeps the M3 CS in its sights, but when it comes to doing the high-speed U-turn, the rear end of it gets loose, and it can’t keep pace with the sedan.

The second race is quite similar. This time, the driver of the M3 slightly jumped the start, and the Beemer accelerated into the lead. It held onto its lead until the end of the race.

While the BMW M3 CS claimed the win, it didn’t do so by a huge margin. In fact, it was only 0.1 seconds quicker, completing the U-Drag race in 32.7 seconds at 136.9 mph compared to the 32.8 seconds needed for the Ioniq 5 N. Both cars are in elite company and are quicker than an Acura NSX Type S, with a best time of 33.0 seconds at 136.5 mph. The M3 CS also matched the much more powerful Mercedes-AMG GT 63.

If you need any more proof of just how innovative Chinese car manufacturers have become in recent years, look no further than Xpeng and its new AeroHT. The dramatic six-wheeled road-going “land aircraft carrier” was on display at CES and is the type of creation that’s inconceivable for a legacy carmaker even to envisage, let alone bring to production.

The Chinese company has been working on the AeroHT for the past couple of years and previewed it in production guise last September. It will be built at a new state-of-the-art manufacturing facility in Guangzhou, China, that spans 180,000 square meters and will produce up to 10,000 units annually. Xpeng says it’s locked in over 3,000 orders for the AeroHT and plans to kick off deliveries in 2026.

Read: Xpeng’s Cybertruck-Like 6-Wheeler Costs $280,000 But Comes With Its Own Helicopter

Xpeng’s futuristic creation consists of two vehicles; the ground-based “mothership” and an electric verticle take-off and landing (eVTOL) aircraft. The “mothership” is a massive six-wheeler van with obvious design similarities to the Tesla Cybertruck. It’s approximately 5.5m (18 feet) long, 2m (6.6 feet) wide, and 2m tall. It has some weird and wacky design features, none more evident than the digital side mirrors that can retract into the front fenders when not used.

Looking at the AeroHT from the side, it looks like a lengthened minivan that’s taken a few too many growth hormones. There are no second-row side windows as the entire rear half of the six-wheeler is used as a loading bay for the eVTOL. In terms of power, it rocks an 800-volt electrical architecture and is an extender-range EV.

Xpeng hasn’t provided details about the combustion engine, the electric motors, or the battery pack, but does say it has a combined driving range of over 620 miles (1,000 km). It also serves as a module supercharging station for the eVTOL.

As for the aircraft, it features a small cockpit made from lightweight carbon fiber and has a six-rotor design with foldable propellers and arms. It can be driven manually or autonomously, and more than 200 units are currently being tested. Last year, the eVTOL received airworthiness certification from the Civil Aviation Administration of Central and Southern China.

Prices for the AeroHT are expected to start at around 2 million yuan (~$272,000) in China. The carmaker hasn’t said if there are any plans to offer it in other markets.

Most electric vehicles on the market have electric motors located between the wheels but a company named Donut Labs has just unveiled an in-wheel motor that could shake up future EVs. This intriguing motor, now in its second generation, can be used by any type of vehicle and can be produced in a variety of different sizes. Donut Labs also says its solution can significantly speed up the development cycle of electric vehicles.

The flagship motor presented at CES fits into a 21-inch loop and packs some serious punch, churning out up to 845 hp and 3,171 lb-ft (4,300 Nm). That’s not a typical torque figure, however, and is likely calculated at the wheels rather than at the crankshaft like an ICE. Nevertheless, the motor still packs a serious punch, which is made all the more impressive because it weighs just 40 kg (88 lbs).

Read: BMW Tests Revolutionary Electric Motors That Could Power Mysterious Coupe

Vehicles using these in-wheel motors would need one at each corner, and Donut could eliminate the need for traditional half-shafts, CV joints, and other components typically used by cars. While this all sounds rather wonderful, it’s worth noting that in-wheel motors add a significant amount of unsprung mass to a vehicle, and it’s no different here.

Four other in-wheel motors have also been presented by Donut Labs, each in different sizes. One is catered towards semi-trucks and delivers 268 hp and 2,212 lb-ft, another is a 12-inch unit for electric scooters with 20 hp, there’s a tiny 4.7-inch motor for drones with 4 hp, and a 17-inch motor designed for motorcycles and producing 201 hp.

Donut Labs believes the global electric transportation market could grow from $550 billion to $4.4 trillion by 2032, and its motors are already used by several vehicles. For example, its parent company – Verge Motorcycles – produces an electric motorcycle, and a Latvian company dubbed Oruga also manufactures EVs designed for off-roading with its motors. Australian firm Hyper Q Aerospace also uses these trick motors in its electric aircraft.

When combined with Donut’s in-house platform, the innovative new motors can apparently “reduce the resource requirements for vehicle development by up to 95% compared to the current level.”

It’s becoming harder and harder to resist leasing a new EV in the US, thanks to a growing number of competitive deals offered by automakers. The latest deal comes from VW and it’s for the outgoing 2024 ID.4. While this isn’t the current model year, the ID.4 has plenty going for it and can be quite the bargain.

Buyers can lease the ID.4 for just $149 per month for 24 months, with $999 due at signing. Factor in that $999, and leasing an ID.4 for the equivalent of just $190 per month is possible. It’s generally not advisable to put cash down on a lease because GAP insurance will only cover the remaining balance and not the downpayment if the car is totaled or stolen. Admittedly, the $999 downpayment for the ID.4 is relatively small, particularly compared to a recent leasing deal for the Nissan Ariya that had an exorbitant $3,329 downpayment.

Read: Colorado Shoppers Can Drive Away In A New Fiat 500e For Just $62 Per Month

The cheapest ID.4 to lease is the base Standard trim, carrying an MSRP of $39,735 and capped at 10,000 miles per year. To put this leasing deal into perspective, the entry-level Tesla Model Y Long Range Rear-Wheel Drive can be leased for $199 per month for 36 months with a $2,999 downpayment, equating to $282 per month.

Other compelling deals are on offer, Cars Direct notes. For example, the ID.4 Pro is being offered with $13,350 in lease cash and the lease rate has been cut from 4.4% to 0%. The good news doesn’t stop there for shoppers.

All 2024 ID.4 models have 0% APR for 72 months. Previously, the APR had only been 0% for the Standard and S RWD models. Thanks to this cut from the old 6.9% APR / 72-month financing deal on the ID.4 S Plus to this new 0% APR could represent a saving of up to $12,300.

VW has also announced it’s offering a $10,500 customer bonus for those who lease or purchase a new and unused 2024 ID.4. All current deals are valid until March 3, 2025. If you’d like to get behind the wheel of the electric SUV without breaking the bank, head to the VW website and type your postcode into the ‘Your Local Offers’ section to see which deals you may be eligible for.

BYD’s ongoing troubles in Brazil show no signs of abating after a labor inspector revealed the carmaker brought in hundreds of Chinese workers to build a factory using irregular visas. This news comes shortly after an investigation led by labor authorities indicated workers were living in “slavery-like conditions,” promoting fierce rebukes from BYD and Jinjiang, the contractor at the center of the stir.

According to Liane Durao, a labor inspector for Brazil’s Ministry of Labor, the 163 workers hired by Jinjiang for the local BYD factory and rescued from living in indecent conditions, are leaving or have already left Brazil. She added that BYD would be fined for each employee found to have worked in the “irregular” arrangement, but didn’t say what the fines would amount to.

Read: Brazil Halts BYD Visas Over Alleged Slave-Like Conditions At Construction Site

Speaking with Reuters, Durao said that BYD has agreed to change the conditions of its employees working on building the factory. Approximately 500 workers were brought from China to Brazil. According to a source close to BYD, the carmaker was under the impression that work visas had been issued properly and that all employees had come to work voluntarily.

Soon after the scandal broke, BYD said it severed ties with Jinjiang. Representatives of the carmaker recently met with local labor authorities and contractors to speak about how to protect the rights of workers at the plant.

Labor inspectors found that 163 staff were housed in tightly packed dorms, did not have mattresses, and had to share just one toilet between 31 workers. They also had limited access to cooking facilities, and pots of prepared food were left in the open without refrigeration.

When asked about the situation in Brazil, China‘s foreign ministry spokesperson Guo Jiakun said the government requires Chinese-funded enterprises to operate in accordance with local laws and regulations.

BYD and Jinjiang denied the accusations and published a video that showed construction workers stating they “cherish” the work and wanted to stay at the site. No less than $620 million has been invested in the Brazilian factory. It will have the capacity to build 150,000 vehicles annually and is supposed to be up and running this year.

The Hyundai Staria family will soon welcome a new all-electric member. Hyundai already offers passenger and panel-van versions of the model, in ICE and a hybrid form, but now it’s the time to add an all-electric derivative into the mix.

This particular prototype was snapped at a parking lot in South Korea without an inch of camouflage, providing us with an unimpeded look at its design. Unsurprisingly, it looks mostly identical to existing models in the Staria range but does have a distinctive front end.

Read: 2024 Hyundai Staria Gains Hybrid Option With 242 HP

The Staria Electric does not need a front grille that stretches across almost its entire width. Instead, the EV gets a tiny grille in the middle of the bumper that’s no bigger than a license plate. Positioned next to this grille is the charging port while located towards the base of the bumper are two additional – and equally small – air vents. The main headlamps used by the Staria Hybrid appear identical to those found on the hybrid model, meaning they’re a little larger than the ICE models.

These photos from Clien also show the prototype’s two-tone paint scheme, with a silver lower half and a black upper half and top. The all-electric Hyundai ST1 and the related Iveco eMoovy LCVs, both based on the Staria, that were unveiled last year may provide us with some insight about the upcoming Staria Electric.

More: Hyundai Staria-Load Premium Is For The Tradesman Who Wants Creature Comforts

No technical details about the electric minivan have been confirmed at this stage, but it could feature a single electric motor putting out 215 hp (160 kW / 218 PS) and 350 Nm (258 lb-ft) of torque, just like the ST1 and eMoovy. Moreover, the LCVs’ 800V architecture supports ultra-fast charging and V2L functions. Chances are it will also be equipped with Hyundai’s fourth-generation battery pack. This is an 84 kWh unit that debuted in the Ioniq 5 N and has subsequently been added to the facelifted Ioniq 5 and Kia EV6.

Although we have no images of the interior, we expect it to be largely carried over from the rest of the lineup. If it takes after the 2024 Staria Hybrid, available features should include a digital instrument cluster and a 10.25-inch infotainment display, likely with version-specific graphics, automatic climate control, heated and ventilated seats, and an array of ADAS systems.

Hyundai is believed to be designing the Staria Electric with European markets in mind, but will also sell it in countries including Australia and Thailand. Production will reportedly start in mid-2026, with customer deliveries commencing later that year.

Photos: CLIEN

Tesla is deep into developing the thoroughly updated Model Y, and this new version of the world’s best-selling EV is shaping to be a significant upgrade over the current model. Several prototypes have been spotted in recent months, and earlier this week, a bright red model was filmed up close in Palo Alto, California. This prototype is particularly interesting because it could be the new Performance variant.

Several spy videos shared to X show the new Model Y under wraps with a Tesla engineer behind the wheel. As with other recent sightings, the car has no camouflage across the sides and instead, only some black covering up the front and rear fascias. Much like the refreshed Model 3, the new Model Y will be differentiated from the model it replaces with these new fascias rather than different door skins.

Read: Tesla Model Y Juniper Caught With Split Headlights And Rear Light Bar

Although the front of the car is hidden by black cladding, some small but intriguing details are visible. For example, the front bumper looks different than any of the regular prototypes we’ve seen testing in the past. It appears to have sharper air vents on the sides, similar in shape to those found on the new Model 3 Performance. The rear fascia may also be hiding a small enlarged lip spoiler, adding to the SUV’s edgier look.

Tesla has also equipped this Model Y tester with some rudimentary aero covers. It’s hard to say exactly why it’s done this, as other prototypes have had their wheels exposed, and in all likelihood, the wheel options for the new Model Y will be identical to the Model 3. Indeed, these rims look like the same 19-inch ‘Nova’ wheels offered on the sedan, prompting Drive Tesla Canada to suggest the marque may be hiding them to shield the enlarged brakes and calipers of the Model Y Performance.

Check this out, Tesla Model Y (Juniper) Performance 🔥🔥🔥#Tesla #Juniper #ModelY #Performance pic.twitter.com/n29ZHduddK

— Yann Masoch (@yannmasoch) January 8, 2025

Although it’s unclear whether this prototype is the new Performance version of the the Model Y Juniper, one thing is certain: Tesla will introduce a new flagship variant of the SUV. The rollout strategy for the updated Model Y will likely mirror that of the revamped Model 3, where the standard version debuted first, followed by the Performance model a few months later. While nothing has been officially confirmed, this staggered timeline seems logical, giving Tesla time to perfect the Performance specs.

In terms of grunt, the new EV should rock the same powertrain as its lower sibling, meaning it should also deliver 510 hp and 546 lb-ft (740 Nm).

As promised, here is the mobile video of the ultra red Model Y Juniper that I saw yesterday.

The video is not the best because my window has washer fluid on it and I closed it while trying to open it all the way. The video was shot in 4k 60fps but X max upload size is 1080p. But… pic.twitter.com/eoGd4E6PT5

— Yann Masoch (@yannmasoch) January 8, 2025

Photo Yann Masoch/X

The automotive industry is in the midst of a revolution, with electric powertrains and autonomous driving systems now more commonplace than ever. While automakers battle to perfect self-driving cars and electric SUVs, industries like agriculture and landscaping are quietly deploying their own fleet of cutting-edge tech. At CES 2025, John Deere rolled out a range of autonomous and electric machines that might not just lighten workloads but could redefine how certain jobs get done.

Meet John Deere’s Robot Mower: The Quiet Giant

One of the most intriguing new products unveiled by John Deere is an electric robot lawnmower. Looking a little bit like a robot designed for a battlefield in a Hollywood movie, the lawnmower is powered by a 21.4 kWh battery. This should give it enough charge to be able to operate for up to 10 hours, making it perfect for large commercial-grade lawns.

Read: Kamaz “Robocop” Is An Autonomous Dump Truck For The Russian Coal Mines

The robot uses four pairs of stereo cameras to give it a 360-degree view of the world. Beyond the lawnmower being able to operate autonomously, the electric powertrain has its own advantages over traditional gas-powered mowers. For example, because it’s much quieter, workers could start jobs earlier in the morning.

While it seems unlikely that driverless cars will replace human-operated ones in the foreseeable future as full autonomy is still making baby steps that are often troubling, mowers like this could become commonplace much sooner. John Deere cites a recent study revealing that 84% of landscape business owners struggle to find and retain qualified labor.

Robots to the Rescue, Says John Deere

“Our agriculture, construction, and commercial landscaping customers all have work that must get done at certain times of the day and year, yet there is not enough available and skilled labor to do the work,” said John Deere Chief Technology Officer Jahmy Hindman.

“Autonomy can help address this challenge. That’s why we’re extending our technology stack to enable more machines to operate safely and autonomously in unique and complex environments. This will not only benefit our customers, but all of us who rely on them to provide the food, fuel, fiber, infrastructure, and landscaping care that we depend on every day” Hindman added.

Beyond the Lawn: Deere’s High-Tech Fleet

Three other self-driving vehicles have been presented by John Deere in Las Vegas. The first is the second generation of its autonomous tractor, complete with 16 cameras and a Nvidia GPU. John Deere is also looking to bring its autonomous vehicles to construction sites, unveiling an articulated dump truck that can carry over 92,000 lbs of materials. Vehicles like these are becoming more common in quarries and mine sites around the world, promising to improve productivity.

The second high-tech tractor presented by John Deere is specifically designed with orchards in mind. It’s diesel-powered and pulls sprayers through nut orchards. These typically need to be sprayed six to eight times per year, and John Deere added a LiDAR to ensure the truck doesn’t get lost or confused in densely packed orchards where GPS signals may be blocked.

Maybe you can’t stop progress, and things right now point to fully autonomous vehicles becoming, at some point, the new norm. While companies like John Deere claim that they will help business owners who need more skilled labor, we can’t help but wonder if they’ll eventually also cost all workers their jobs…

Elon Musk spent more than $270 million to help get Donald Trump into office, likely believing that a Trump-run administration would help his companies, including Tesla and SpaceX. Musk’s personal wealth has soared by over $200 billion since the election, thanks primarily to the surging price of Tesla shares. However, according to one analyst, Tesla profits could fall by as much as 40% this year when Trump steps into the White House.

Ryan Brinkman from JPMorgan believes if the incoming President eliminates the $7,500 federal EV tax credit, which he is widely expected to do, it “poses a significant earnings risk for Tesla”. The EV maker had a strong Q4 but overall 2024 global sales weren’t as strong as expected, with 1,789,226 vehicles delivered, slightly fewer than in 2023. This marked the first time in over a decade that Tesla didn’t increase its annual sales.

Read: Is Time Running Out For $7,500 EV Tax Credits? Experts Advise Buyers To Hurry

According to Brinkman, “the slowing of deliveries even ahead of a likely subsidy removal we think has the potential to refocus investors on the deterioration in deliveries, revenue, gross profit, EBIT, EPS, and FCF estimates across all periods.” He added that Tesla could have the most to lose from the shifting regulatory backdrop and may see its profits fall by roughly $3.2 billion, or 40%.

The analyst added that during the Trump administration, shares of BEVs sales could fall in “nearly every geography,” and suggested that Tesla “does not appear to us on track to dominate the global auto industry amidst the electrification transition, which we view as only the starting point for present valuation,” as quoted by Business Insider. JPMorgan also estimates that in 2024, Tesla’s global share of BEV sales fell from ~15.5% to ~13.7%.

Curiously, Elon Musk has publicly supported the abolishment of the EV tax credit. He believes scrapping the credit will hurt rival brands, including GM, Ford, and Hyundai, which rely heavily on the subsidies to make their EVs more affordable. As Tesla has the first-mover advantage in the EV space and is the current market leader, it can develop and sell its EVs at a lower cost than most of its rivals and – in theory – could grow its share. We shall wait and see if he’s proven right, or whether JP Morgan analyst’s predictions of gloom come to pass.

2/ JPM note from this morning. This analyst has a Sell rating on $TSLA so it presents a more negative view than others with Buy or Hold ratings.

Tesla Inc
4Q Deliveries In Line w/ JPM But Below Street, Representing More Risk to 2024 Consensus EPS Which Has Already Fallen -36%;…

— Gary Black (@garyblack00) January 3, 2025

Waymo continues to lead the way in the development and introduction of robotaxis, but that doesn’t mean it’s perfected the technology. Not only did its autonomous cars spark an NHTSA investigation over crashes, but in August last year, dozens developed a weird habit of gathering together at a parking lot in San Francisco and honking their horns in the middle of the night. Last month, one of them took a passenger on a rather dizzying ride in Los Angeles.

In December, Mike Johns ordered a Waymo to ferry him to the airport, where he had to catch a flight. It picked him up, but then proceeded to drive around in circles in the parking lot rather than actually taking him where he needed to be.

Read: Waymo Is Somehow Valued More Than Ford After Raising $5.6B

Worried that he was going to miss his flight, Johns got in contact with Waymo’s customer support who quizzed him on what was going on. “It’s circling around a parking lot,” he told the operator. “I’ve got my seatbelt on, I can’t get out of the car. Has this been hacked? What’s going on? Why is this thing going in a circle? I’m getting dizzy.”

At one stage, the Waymo operator can be heard asking Johns if he had the Waymo app on his phone and instructing him to tap the My Trips button on the lower-left corner, presumably in an attempt to pause the ride. Johns replies that Waymo itself should be able to take over the car and shouldn’t need to use his phone.

After five long minutes of circling the same traffic island, Waymo’s team managed to regain control of the Jaguar I-Pace. The errant robotaxi finally snapped out of its loop and got Johns to the airport, though not without leaving him shaken and frustrated.

Speaking to CBS News, Waymo stated that it had identified the issue as a software glitch and assured everyone that it’s been addressed to prevent future looping incidents. To its credit, the company didn’t charge Johns for the ride.

“Where’s the empathy? Where’s the human connection to this?” John said after the weird experience. “It’s just, again, a case of today’s digital world. A half-baked product and nobody meeting the customer, the consumers, in the middle.”

H/T to Roadandtrack

CATL, the world’s largest manufacturer and supplier of EV batteries, is one of several companies that the Pentagon will blacklist in June 2026 for alleged ties to the Chinese military. Tencent – China’s largest tech firm – has also been added to the list, meaning it will be unable to work with the U.S. Department of Defense and local U.S. businesses with military contracts.

The updated list now includes 134 companies, all of which have some business operations within the United States. CATL denies being a Chinese military company and said it’s planning to dispute its inclusion in the list. It may also pursue legal action after the move contributed to a 2.8% drop in its share price, cutting its market value by $4.4 billion.

Read: CATL Drives China’s EV Battery Network Expansion With 1,000 New Stations

Speaking with The New York Times, a CATL spokesman said the company has “never engaged in any military-related business or activities” and that being added to the Defense Department’s ‘1260H list’ “does not restrict CATL from conducting business with entities other than the Department of Defense and is expected to have no substantially adverse impact on our business.”

Many of the world’s most popular EVs use batteries sourced from CATL, and even some Teslas sold in several markets have CATL batteries. The business is also licensing its battery technology to Ford, which will use the tech to build battery packs at a $3.5 billion factory in Michigan.

According to senior China fellow at the Foundation for the Defense of Democracies, Craig Singleton, CATL’s control of data collected by EV charging stations and battery management systems may allow for Chinese government spying. He told The Washington Post that Chinese law requires CATL to provide government access to all of its proprietary and customer data.

The updated list was published shortly after China’s Commerce Ministry added 10 US firms to its “unreliable entities list.” In 2021, Xiaomi was added to the 1260H list but successfully sued the Pentagon and was removed, arguing it had no ties to the Chinese military.

The inclusion of Tencent on the list is also notable. It owns WeChat and is valued at more than $480 billion. After news broke of it being in the crosshairs of the Defense Department, its shares fell by approximately 7.3%, slashing $35.4 billion from its market value.

The new president and chief executive of Hyundai isn’t concerned about Elon Musk’s close relationship with Donald Trump. Jose Munoz, who took the top job at the carmaker on January 1, added Hyundai has invested heavily in the US as it views it as its “most important market,” and not because of incentives provided under the Biden administration.

Elon Musk spent more than $260 million helping get Trump back into office and will co-lead a non-government agency aiming to cut wasteful government spending. While the billionaire business tycoon could get in the ear of Trump and try to urge the government to help Tesla and hinder its competitors, Munoz actually views the friendship between Musk and Trump as a positive.

Read: Hyundai Will Also Build Hybrids At Its Georgia EV Factory

“I don’t see that as a concern, honestly,” Munoz said in a recent interview with Bloomberg. “If anything, having someone who is close to the US industry and to the EV world, I think it should be positive for the industry. I think it’s in his own interest and probably in the interest of the country to trigger investments and growth and also to ensure that we maintain competitiveness in our country.”

Trump is expected to abolish the federal EV tax credit and Musk has previously supported scrapping the subsidy, too, believing it will help Tesla in the long run and hurt its rivals. Despite this, Munoz notes Hyundai made the decision to make significant EV investments in the US during the first Trump administration and not because of the favorable policies introduced by Joe Biden.

Local investments

“We haven’t invested in the US because of IRA (Inflation Reduction Act) or because of incentives in general,” he said. “It’s not a good policy to just simply make an investment because of the incentives, because they can come and go. We believe the US market is the most important for us today and it’s going to continue to be the most important in terms of not only the absolute but also the growth and therefore, investing and localizing is a good strategy. I think we are in a better place today than we were four or five years ago.”

Hyundai recently opened a $5.5 billion EV factory in Georgia. This site has already started to build the all-electric Ioniq 5 and it will ultimately house a further five EVs from the Hyundai, Kia, and Genesis brands. The site will also produce several hybrid models, and has a total capacity of 300,000 units annually but has the flexibility to expand to up to 500,000 units.

A group of the world’s largest car manufacturers want to pool their European Union emissions with Tesla this year to avoid massive fines. This year, overall fleet emissions in the bloc will need to fall from 106.6 grams of CO2 per kilometer traveled down to 93.6 grams, and individual car manufacturers have specific targets they must hit.

Read: Europe’s Carmakers Hike Gas Car Prices To Push EV Sales Harder Ahead Of New Mandates

According to documents released by the EU Commission, Toyota, Ford, Mazda, Stellantis, Subaru and Leapmotor intend to create a ‘Superpool’ with Tesla. These brands account for a combined 33% of the total vehicle market and a 30% share of the total EV market in Europe.

Tesla’s Carbon Credits Will Help, But It’s Not a Silver Bullet

“Considering 2024 sales, the Tesla pool significantly narrows the emissions gap for automakers within the group, bringing them to within just 4g of the target,” Automotive Research Lead at Rho Motion, Will Roberts, said.

However, Roberts cautioned that the math isn’t entirely in their favor. “Despite the weight of the world’s largest BEV manufacturer, this does not guarantee fines are avoided by this pool. Tesla has sold fewer vehicles in 2024 than 2023, and a continuation of that trend would not be helpful. Furthermore, Toyota, Subaru and Mazda have all been slower to get BEVs on the road and with Toyota alone selling three times more vehicles than Tesla, the offset effect only goes so far.”

These aren’t the only car companies to have created a pool. Mercedes-Benz’s group emissions were 17.3g above its target in 2024, and it was facing €1 billion in fines. For 2025, Mercedes and Smart will pool with Volvo and Polestar. The four firms have an 8% share of the market and a 20% share of the EV market.

Other Major Automakers Are Holding Out

Several of the world’s largest automakers have yet to announce pooling for 2025, despite every one of them currently being above the required targets for this year. These include Honda, VW, Kia, BMW, SAIC, Hyundai, Suzuki, and Renault Nissan Mitsubishi.

More: Europe Is About To Find Out If EV Sales Can Survive As More Governments Slash Subsidies

Pooling essentially works like this: automakers purchase emissions credits from other brands to lower their fleet averages. Tesla, as the industry’s reigning king of emissions credits, is cashing in big time. According to Reuters, nearly 3% of Tesla’s $72 billion in revenue from the first nine months of 2024 came from selling carbon credits.

And that’s just the beginning. UBS analysts led by Patrick Hummel estimate that Tesla’s compensation could exceed €1 billion in Europe alone this year if it monetizes its entire emissions credit surplus, as reported by Bloomberg.

The former chair of the European Automobile Manufacturers’ Association and current Renault chief executive Luca De Meo has previously said that European car brands are starring down up to €15 billion in fines if they don’t meet 2025 targets.

Aptera has unveiled the production-intent version of its long-awaited three-wheel EV on the eve of CES in Las Vegas. It’s been four long years since the car was first unveiled as a concept, and more than two years since production was initially penciled in to start. Since that time, development of the car has continued in earnest, and according to the brand, it’s now “poised to redefine the future of mobility.”

The design of the production model is largely identical to the original concept, meaning it continues to look more like a spaceship than a conventional EV. Pininfarina played an important role in perfecting the aerodynamics of the car at its wind tunnel in Turin, Italy. Aperta says the car has one of the lowest drag coefficients of any production passenger vehicle, but hasn’t publicized a number just yet.

Read: Aptera Starts Testing First Production-Intent Three-Wheeler Prototype

It’s not just the design of the EV that’s intriguing. As much of the bodywork is covered in solar panels, the brand claims most drivers will be able to enjoy daily use without ever needing to plug in to charge. If parked outside, the car can generate enough electricity for 40 miles (64 km) of driving per day. When fully charged, it can travel up to 400 miles (644 km).

A 42 kWh battery pack has been squeezed beneath the car’s slippery surfaces. Soon after the small brand graced the world stage, it said that 25 kWh, 40 kWh, 60 kWh, and 100 kWh battery packs would be available, but this no longer seems to be the case. Many technical details about the car also remain under wraps, including how much power it has and what sort of performance times it’ll be able to deliver.

Speaking about the launch of the production-intent model in Las Vegas, the senior vice president of Business Unit Mobility at Pininfarina, Giuseppe Bonollo, said: “Aptera has truly pushed the boundaries of what’s possible in vehicle design and efficiency. We have always made aerodynamics an essential component in design at Pininfarina. We are therefore thrilled to have supported the aerodynamic validation of the Aptera vehicle with truly unique results.”

As of the brand’s most recent update in November 2024, it said it had 50,000 pre-orders for the car. Pricing and availability details have not been finalized, but the company’s website says prices will range from $25,900 to roughly $46,000.

Just a few hours before a Tesla Cybertruck carrying explosive devices was detonated in Las Vegas, another one was badly damaged elsewhere in the US. The difference is that this Cybertruck caught fire while it was sitting at a Tesla dealership lot in Decatur, Georgia.

Limited details are known about this incident, and it hasn’t received all that much coverage, as it was overshadowed by the aforementioned more high-profile and shocking blast that ripped through a Cybertruck outside a Trump hotel. Nevertheless, footage shows the rear of this example in Georgia has been extensively damaged in the inferno, and it’s unlikely the truck will be repaired.

More: Tesla Cybertruck Explosion Outside Trump Hotel Kills One, Injures Seven – Musk Responds

Local fire crews were called to the fire at around 3 a.m. on December 31. While they were able to extinguish the flames, they couldn’t do so before much of the bed was charred. Given that the Cybertruck has high-strength stainless steel panels, the sides of the bed have been charred but not totally destroyed. The same cannot be said about the plastic fender flares and the rubber tires, as they’ve simply melted.

The firefighters believe the blaze could have started in the EV’s batteries, but they are still investigating the incident, and chances are Tesla, too, will do its part to get to the bottom of the fire.

As with most other EVs on the market, the Cybetruck’s battery pack is located in the floor and sits between the front and rear axles. There’s no word on whether the truck was charging at the time of the blaze, and it’s not clear why the damage appears to be limited to the bed.

Image Credit: Atlanta News First

Xpeng and Volkswagen are deepening their ties in China with the construction of a large super-fast charging network across the nation. The network will include more than 20,000 chargers across 420 cities and, in the future, could grow to include co-branded charging stations.

The two automakers have signed a memorandum of understanding for the partnership but have not said when these new stations will roll out. The chargers will be “high-powered liquid-cooled super-fast” units and will be accessible to owners of both Xpeng and VW’s Chinese models.

Read: Xpeng Could Start Building EVs In Europe To Avoid Tariffs

In a statement, executive vice president of Volkswagen Group China, Olaf Korzinovski said, “Through our strategic collaboration with XPENG, we will form one of the largest Super Fast Charging Networks in China enabling people to seamlessly integrate e-mobility into their daily lives not only in the metropolises but also in remote cities.”

VW and Xpeng are working closely to expand their presence in China. In mid-2023, the German brand purchased a 4.99% stake in Xpeng for $700 million. They announced work on a new electrical and electronic (E&E) architecture that will underpin all future EVs produced by VW in China. The companies will establish two project houses that will allow VW and Xpeng engineers to work together on the new systems.

The first production models to be launched through the partnership will be a pair of mid-range vehicles from VW, which should launch in 2026, and the first to be an SUV. A key advantage of the new architecture is that it reduces the number of ECUs required by 30%. It will also allow for the faster implementation of advanced automated driving functions and have support for over-the-air updates.

VW is also developing a new China Main Platform (CMP) alongside its joint venture partnerships with SAIC and FAW. This architecture will be used by more affordable models, including at least four VW vehicles.

Honda and Sony are looking to convince prospective EV buyers that they should opt for a sleek and innovative sedan known simply as ‘1’. The new model has been in the works for several years, and at CES, the Afeela brand has opened its reservation book for California customers.

The two companies say the Afeela 1 “pursues an interactive relationship between people and vehicles” and will reach the hands of customers in mid-2026. It’s not cheap. Afeela will sell the EV in two guises, with prices kicking off from $89,900, including a 3-year complimentary subscription to select features, including Afeela Intelligent Drive, Afeela Personal Agent, and entertainment content. The base model is known as the Origin while the flagship is dubbed the Signature.

Read: U.S. Dealers Concerned About VW’s Scout And Sony Honda’s Afeela Direct Sales Model

Like some other new players in the EV market, Afeela will begin deliveries of the flagship model before the arrival of the 1 Origin. The Signature starts at $102,900 and features things like 21-inch wheels, a rear entertainment system, and a central camera monitoring system. Afeela also seems to have taken a leaf out of Tesla’s playbook and will only sell the electric sedan in three color options: Tidal Gray, Calm White, and Core Black.

With prices starting at $89,900 and topping out at $102,900, the Afeela 1 is priced head-to-head against the Lucid Air and the Tesla Model S. Interested buyers will need to cough up a $200 refundable deposit to get in line to buy one when sales begin later this year. Afeela hasn’t announced when the car will be available outside of California.

Afeela presented a moderately updated version of last year’s prototype at CES. It promises the production model will be good for 300 miles (483 km) of range and that the EV will support the Tesla Supercharging network at launch. Presumably, the production model will have the same 91 kWh lithium-ion battery pack as the prototype, driving a pair of electric motors that deliver 483 hp.

One of the most important features is Afeela Intelligent Drive. This is the brand’s proprietary ADAS and uses cameras, radars, ultrasonic sensors, and LiDAR to provide advanced driver-assistance functions. However, it’s not yet clear what level of autonomy it offers.  

Afeela’s 2024 CES prototype