Tesla extends zero-interest loan policy in China, and Ford's Q3 earnings exceed expectations | Overseas Daily
"Top 3 news"
Tesla Extends Zero-Interest Loan Policy in China
Key points:
Tesla recently announced that it will extend its 0% loan incentive in China until the end of November to help the company achieve its delivery target for the fourth quarter of 2024. The company plans to deliver more than 515,000 vehicles in the fourth quarter of 2024, an increase of 30,000 vehicles compared to the same period last year, which is also Tesla's highest quarterly delivery record to date. For Tesla, the performance of China, the world's largest electric vehicle market and Tesla's largest market, is crucial to achieving the quarterly delivery record. Since July, Tesla has been stimulating demand in China by offering low-interest loans. Now, Tesla is extending the 0% annual percentage rate (APR) incentive until the end of November to further boost sales. According to the update on Tesla's official website, consumers only need to pay a down payment of 79,900 yuan (approximately $11,000) to enjoy a 0% loan for up to 5 years. If the down payment amount is 45,900 yuan (approximately $6,500), consumers can also enjoy an annual interest rate of less than 1%, with the minimum annual rate being only 0.5% (equivalent to an annual interest rate of 0.92%). According to insurance registration data, Tesla got off to a good start in the fourth quarter. Tesla's Shanghai factory is one of the most efficient factories in the world and is usually used to produce vehicles for global export at the beginning of the quarter, which may affect local deliveries.
Tesla's Loan Program in China (Source: Elevtrek)
Opinions:
Tesla's extension of the 0% loan policy in China is undoubtedly to further stimulate market demand. This strategy not only helps Tesla maintain its competitiveness in the Chinese market but is also an important part of its global strategic layout. As the world's largest electric vehicle market, China holds a pivotal position for Tesla. Therefore, attracting consumers through financial incentives is the key to achieving its global sales target. In the long run, this move by Tesla may put pressure on other electric vehicle manufacturers, forcing them to adopt similar incentive measures to maintain their market share. Additionally, this strategy may also have an impact on Tesla's profit margin, but according to Tesla's financial report, the company seems to be able to absorb these incentives and even achieved an increase in gross margin in the last quarter. Therefore, if this strategy is effective, Tesla has reason to continue implementing it in the high-demand fourth quarter. However, the sustainability of this strategy that relies on financial incentives remains to be observed. As the competition in the electric vehicle market intensifies, Tesla needs to continuously innovate its products and services to maintain its market leadership. At the same time, Tesla also needs to pay attention to the stability and cost control of its global supply chain to ensure its advantage in the fierce market competition.
Ford CEO Promises New Medium-Sized Electric Pickup to Be Cost-Competitive with Chinese EVs Like BYD
Key points:
Ford Motor CEO Jim Farley recently stated that Ford's upcoming medium-sized electric pickup will be a "game-changer" and promised that its cost will be comparable to Chinese electric vehicle manufacturers producing in Mexico. Farley specifically mentioned BYD, indicating that Ford's new electric pickup will compete with BYD's cost structure. In February of this year, Farley revealed that Ford has a secret "Skunk Works" team developing a low-cost platform to support its next-generation models. The team is led by Alan Clarke, who previously led the Tesla Model Y engineering, and currently includes former employees from Tesla, Rivian, Lucid, and Apple, and is still growing. Ford confirmed that the first model based on this new platform will be a medium-sized electric pickup designed for consumers who "want more value," such as longer range and more practicality. Ford says the team is developing one of the most efficient electric vehicle platforms in the world and is benchmarking costs against "the best competitors in the world." After releasing its third-quarter earnings report, Farley provided more expected information about the new electric pickup in a conference call with investors. Ford plans to launch this new medium-sized electric pickup in the second half of 2027, two years later than expected. It remains to be seen whether this delay will affect its market position as Chinese automakers like BYD are closing in on Ford's market share.
Ford F-150 Lightning (Source: Ford)
Opinions:
Ford's new electric pickup plan is undoubtedly a positive response to the Chinese market. By assembling a team composed of former Tesla and other leading electric vehicle company employees and promising that its new electric pickup will be cost-competitive with Chinese manufacturers like BYD, Ford shows its determination to remain competitive in the global electric vehicle market. This strategy not only reflects Ford's emphasis on cost control but also its pursuit of technological innovation. By simplifying vehicle design and advancing the development process, Ford is expected to gain advantages in cost and efficiency. However, the delayed launch of Ford's new electric pickup may give competitors an opportunity, especially in the context of the rapid expansion of Chinese manufacturers. Additionally, Ford's plan to produce LFP batteries in Michigan will help reduce costs and improve the stability of the supply chain. This is crucial for competing with Chinese manufacturers in the global market. Nevertheless, Ford needs to ensure that its new electric pickup can meet consumers' needs in terms of performance, design, and technological innovation to ensure its competitiveness in the global electric vehicle market.
Hyundai IONIQ 9 Electric SUV Unveiled, Combining Large Body Size and Spacious Interior
Key points:
Hyundai's all-new three-row electric SUV - IONIQ 9 is about to make its debut, and this highly anticipated model has been spotted on the streets of South Korea. Since its first appearance at the Los Angeles Auto Show in 2021, the IONIQ 9 (then known as the SEVEN concept vehicle) has been the cornerstone of Hyundai's plan to lead the North American electric vehicle market. As the debut date approaches, this large electric SUV has been repeatedly spotted in the wild, revealing its impressive size and bold design. The latest images show that the IONIQ 9 is significantly larger than Hyundai's existing IONIQ 5 and is expected to be built on the same E-GMP platform, with a size similar to the Kia EV9, approximately 197.2 inches long, 77.9 inches wide, 70.1 inches high, and a 122-inch wheelbase, roughly equivalent to the size of a Telluride. Interior images show that the second row seems to have ample legroom. If the Kia EV9 is used as a reference, its rear legroom is more than 42 inches, more spacious than the Cadillac Escalade and Range Rover P40, and the headroom is also more than the Tesla Model X. The IONIQ 9 is expected to start at around $55,000, similar to or slightly higher than the EV9, and more expensive configurations may cost up to $75,000 to $80,000. Like the EV9, the IONIQ 9 is expected to have a range of more than 300 miles when fully charged. It will be produced at Hyundai's new Metaplant America factory in Georgia along with the updated 2025 IONIQ 5. Hyundai's new IONIQ 5 has a longer range, a stylish new design, and an NACS port for charging at Tesla Supercharger stations. As an American-made model, the IONIQ 9 is likely to include this configuration as well.
Hyundai IONIQ 9 Camouflaged Vehicle (Source: Electrek)
Opinions:
The exposure of the Hyundai IONIQ 9 not only showcases Hyundai's ambition in the electric vehicle field but also reflects its emphasis on the North American market. The spacious interior and bold design of the IONIQ 9 indicate Hyundai's competitiveness in the high-end electric SUV market. The launch of this new model will further enrich Hyundai's electric vehicle product line and is expected to attract more consumers seeking large space and high performance. The size and space design of the IONIQ 9 is undoubtedly one of its major selling points. In the current market, consumers have increasingly higher requirements for the range and interior space of electric vehicles. The performance of the IONIQ 9 in these aspects will undoubtedly make it a strong competitor in the market. At the same time, its expected range and price range also show Hyundai's advantages in cost control and cost performance. With the launch of the IONIQ 9, Hyundai's layout in the North American market will be more complete. The addition of this new model will help Hyundai gain an advantageous position in the competition with brands such as Tesla and Kia. At the same time, this also shows Hyundai's long-term commitment and investment in the electric vehicle market.
"Big events"
Tesla Publishes Rare Blog Post, Committed to Standardizing Vehicle Connectivity Performance
Tesla Electronic Architecture Perspective (Source: Electrek)
Tesla recently published a rare blog post, announcing that the company is committed to standardizing vehicle connectivity performance and promoting the 48-volt electrical architecture. Tesla introduced a new 48-volt low-voltage electronic architecture in the Cybertruck and designed new connectors for it. Now, Tesla suggests that these new connectors become the standard in the automotive industry. In the blog post, Tesla wrote that to accelerate the global transition to sustainable energy, the company is simplifying the manufacturing process and electrical connection requirements of all vehicles, including implementing the Low-Voltage Connector Standard (LVCS), which reduces the required connector types to only six. These six device connectors are designed to meet the power and signal requirements of more than 90% of typical electrical device applications. This standardization further unlocks operational efficiency, cost reduction, and manufacturing automation. Tesla also shared images of the six connectors that make up the LVCS standard and added that the LVCS is built on the Cybertruck's electronic architecture, meets the increased spacing requirements for 48-volt operation, and provides an industry-standard light blue color. The 48-volt architecture is an ideal long-term choice, as it can provide the same power with only a quarter of the current. It is designed to enable reliable autonomous vehicles, utilizing a strong single-line seal and an independent secondary locking mechanism while minimizing the package size. Tesla is currently seeking feedback from equipment suppliers and vehicle manufacturers to make this standard a reality.
Facing Cost Pressures, Volkswagen Plans to Shut Down At Least Three Factories in Germany
Volkswagen Factory (Source: Volkswagen)
Volkswagen, the largest car manufacturer in Germany, is facing unprecedented challenges. The company plans to shut down at least three factories in Germany and has warned of large-scale layoffs and salary cuts. This is the first time in Volkswagen's 87-year history that it is considering closing factories in its home country. Volkswagen CEO Oliver Blume disclosed to employees that the 30-year job protection commitment originally aimed at protecting employees and preventing layoffs until 2029 is at risk. Volkswagen's situation has further deteriorated due to the decline in its market share and profits in Europe. According to Daniela Cavallo, the head of the Volkswagen Works Council, the company plans to shut down at least three German factories, cut thousands of jobs, and reduce wages by 10%. The affected factories include ten that mainly supply Volkswagen brand vehicles. At the same time, Volkswagen is facing competitive pressure from low-cost Chinese car manufacturers such as BYD. After dominating the domestic market, BYD is seeking to maintain growth in key markets such as Europe, Southeast Asia, and Latin America. With its ultra-affordable electric models, such as the Seagull electric vehicle with a starting price of less than $10,000 (69,900 yuan), BYD has pushed Volkswagen and other foreign car manufacturers out of the Chinese market. With the launch of new models, such as the medium-sized SUV Seal 7 in Europe, BYD continues to challenge traditional car manufacturers in their home markets. Globally, Volkswagen's deliveries decreased by 3% to 6.52 million in the first nine months of 2024. Despite gaining market share in North America (+7%) and South America (+15%), the "competitive situation" in China (-10%) and Western Europe (-1%) offset the growth. In its home market, Volkswagen's deliveries decreased by 1.6%. Volkswagen's financial situation will be better understood in the third-quarter earnings report to be released on Wednesday. Porsche announced a 41% decline in third-quarter profits last Friday, and the luxury brand's deliveries dropped by 41% in September.
Ford's Third-Quarter Earnings Exceed Expectations, But Electric Vehicle Losses Impact Profits
Ford Electric Vehicle Mach-E (Source: Ford)
Ford Motor Company announced its earnings report for the third quarter of 2024 after the Monday stock market close, exceeding Wall Street's expectations for its revenue and earnings per share. However, the company is still losing billions of dollars in its electric vehicle (EV) business. In the third quarter, Ford's retail sales in the United States increased by 3%, and total sales increased by 1% compared to the third quarter of 2023. Despite the growth, Ford lags behind General Motors (GM) and Hyundai Motor Group (including Kia and Genesis) in electric vehicle sales in the United States. Ford's electric vehicle sales increased by 12%, selling 23,509 vehicles in the third quarter. However, GM surpassed Ford with 32,095 vehicle sales, a 60% increase year-on-year. GM's third-quarter sales were $48.8 billion. Although it did not provide separate data for electric vehicles, it stated that its electric vehicle sales are "close to the breakeven point."
