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  • 🔌 Auto Industry Unplugged: Musk’s Legal Mess, Lithium Rush, & EV Wins

🔌 Auto Industry Unplugged: Musk’s Legal Mess, Lithium Rush, & EV Wins

October 22, 2024

The Gist

From Elon’s Blade Runner-themed copyright debacle to Stellantis trying to stop making gas cars (but, uh, failing), the auto world’s drama keeps on rolling. Lithium’s the new gold in Arkansas, but ExxonMobil’s drilling tech might keep it under control. Meanwhile, Kia’s new hybrid claims you can drive 1,000 miles without a fill-up, BYD’s “Shark” pickup is circling Brazil’s market, and Hyundai’s IPO flopped harder than a bad Netflix pilot. And for NYC folks—Toyota’s got your back with free EV charging. Oh, and the used car market? Bonkers.

The Digest

🤖 Elon Musk’s Blade Runner AI Blunder

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Copyright Infringement with a Dash of AI Flair

This one’s loaded with a lot of numbers and legalese but boils down to a serious copyright battle involving Tesla’s use of AI-generated Blade Runner-like imagery. It’s another notch in Musk’s belt of controversial business practices, and it’s one worth noting for the auto industry and tech implications.

  • Lawsuit Basics: Alcon Entertainment, which owns Blade Runner 2049, claims Tesla used AI to create promotional imagery that mimics the movie without permission.

  • Timeline: Tesla allegedly sought permission on October 10th, only hours before their "We, Robot" event, and when denied, went ahead and used AI to generate similar images.

  • Why It Matters: The use of AI in advertising and product launches is growing, but it’s raising red flags on copyright laws. This is particularly interesting for auto dealers who are exploring AI tools for marketing, as it shows the risks of unchecked AI content creation.

  • Damages Sought: Alcon is seeking an undisclosed amount in damages, but the bigger story is how AI use may face increased legal scrutiny moving forward.

  • Brand Risk: The lawsuit highlights the risks of associating with a polarizing figure like Musk. Alcon made it clear they didn’t want their brand connected to Tesla due to Musk’s controversial reputation.

💥 Stellantis’ Gas Car Gamble

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Why Can't They Just Stop Making Gas Cars?

Production cuts, emissions fines, and corporate decisions that seem to contradict profit motives—Stellantis is ready to cut back on gas cars, but it's not as straightforward as you might think.

Why does Stellantis want to stop making gas cars so badly?

It’s all about avoiding massive emissions fines in Europe. Gas guzzlers are costing them big, and Europe is tightening its grip. So, the fewer gas cars Stellantis makes, the fewer fines they’ll pay.

But why cut production so soon? Can’t they ride it out?

Not if they want to avoid burning money! Stellantis is looking at fines upwards of €95 per excess gram of CO2 per vehicle, and that stacks up fast when you're a giant like Stellantis. Even the head honcho at Renault is freaking out over potential €15 billion fines industry-wide.

So, will they just make more EVs?

Not exactly. EV sales in Europe are, how do I put this, a little lackluster—hovering at just 14.7% of the market. They’re probably scrambling to find a sweet spot where they can pump out enough EVs without losing money.

Can’t they just pay the fines?

Sure, they could—but when you’re looking at fines in the billions, suddenly those EVs start looking a whole lot more appealing.

⛏️ Arkansas Lithium Goldmine

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5 Million to 19 Million Tons of Lithium... Take Your Pick

Lithium is the new oil, and Arkansas could have enough of it to power millions of electric vehicles in the coming decades. Here’s the scoop.

  • Numbers Game: There could be anywhere between 5.1 and 19 million tons of lithium in the Smackover Formation—equivalent to 35–136% of the current U.S. lithium reserves.

  • Extraction Plans: ExxonMobil and other companies are lining up to tap this resource. ExxonMobil, famous for oil, is now making waves in the lithium business, with drilling operations planned to start by 2027.

  • EV Demand Driving Growth: The Smackover Formation could be a crucial player in meeting the skyrocketing demand for lithium, which the International Energy Agency projects will increase by 40x by 2040.

  • Tech and Jobs Impact: This shift in focus toward lithium could help create a more resilient U.S. EV manufacturing industry and job market, with big implications for the automotive retail business as supply chains evolve.

What was that about ExxonMobil’s New Lithium Love Affair?

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From Oil Barrels to Lithium Cells

ExxonMobil, once synonymous with oil, is moving into lithium extraction, betting big on the future of EV batteries. The company’s Smackover Formation in Arkansas could be a game-changer.

Can an oil company really make lithium?

Apparently so. ExxonMobil’s got decades of drilling experience, and they’re now using it to extract lithium. They’re betting on their expertise in subterranean tech to make this transition work.

Why should the auto industry care?

Lithium is the key to EV batteries, and as demand skyrockets, whoever controls the lithium controls the game. Exxon’s move shows how even traditional energy companies are pivoting to get a slice of the EV pie.

⛰️ Used Cars Getting Pricier Again

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Just When You Thought It Was Safe to Shop

The used-vehicle market continues to be a pogo stick (rollercoasters are yesterday’s metaphor) for dealers and buyers alike. Inventory is slightly declining, but prices are rising. Here’s what you need to know:

  • Inventory Down: The total supply of used vehicles in the U.S. hit 2.15 million units at the start of October, down 4% from a year ago.

  • Price Hikes: The average used-vehicle listing price jumped to $25,361, thanks to a mix of newer, lower-mileage vehicles entering the market.

  • Days’ Supply Up: The days’ supply of used cars increased to 47, signaling a slowdown in sales. Fewer buyers are entering the market, likely due to affordability challenges.

  • Top Sellers: Ford, Chevrolet, Toyota, Honda, and Nissan dominate the top five, accounting for over half of used car sales. Their average sale price? $23,759—still lower than the overall market average.

🤕 Hyundai’s IPO Fall

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What Happens When an IPO Flops?

Why did Hyundai's IPO faceplant?

Well, they tried to pull off India’s biggest IPO and failed. While it was oversubscribed, retail investors saw through the lofty valuation and decided to sit this one out.

But it was oversubscribed, so what’s the problem?

Oh, sure, institutional investors piled in—because they’re playing the long game. But when retail investors start to sniff out that they won’t make short-term gains, things tend to go south. And fast.

Are there any lessons here for the retail auto world?

Absolutely. Whether you’re pricing cars or IPO shares, there’s a limit to how much hype people will buy into. Hyundai got burned by overconfidence, and dealers can learn from this by keeping a finger on the pulse of market conditions.

🆓 Toyota’s Free EV Charging in NYC

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Need a Free Charge? Head to NYC

EV owners in New York City just got a major perk, and it’s a win for Toyota, Lexus, and Revel as they team up to offer free DC fast charging for nearly three years.

  • Key Takeaway: Toyota and Lexus are partnering with Revel, a fast-charging network in NYC, to offer free DC fast charging to customers through 2027. That’s a massive benefit for EV drivers in the city.

  • Fast Charger Expansion: Revel plans to expand from 64 to 300 fast charging stalls in NYC alone. This partnership is not just about charging but building infrastructure for EV adoption in urban areas.

  • The Impact for Dealers: Dealers in major cities will want to keep this partnership on their radar. Free charging is a major selling point, especially for urban customers, and could make a difference in buyer decisions.

🦈 BYD’s Shark Attack in Brazil

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The Shark is Coming for Your Pickup

BYD is making big waves (and maybe terrifying surfers?) in Brazil with the launch of its Shark, a hybrid pickup poised to take on top-sellers like the Toyota Hilux and Ford Ranger.

Why is this called the Shark? Do they think it’s dangerous?

Well, BYD’s naming department clearly had fun with this one. The Shark might be a hybrid, but its 429 horsepower means it’s got some bite. Plus, it’s swimming in new territory—Brazil’s massive agriculture market.

Does anyone in Brazil even want this thing?

BYD sure hopes so. With pre-orders already beating their previous models, they’re betting big on Brazil’s farmers to get behind this hybrid. And with diesel prices rising, they might just have a point.

Is this the start of BYD world domination?

Let’s not get ahead of ourselves, but BYD is playing the long game. With its aggressive expansion plans, they want to make a dent in the global auto scene—and Brazil is just the beginning.

⚡ VinFast’s Electric Explosion

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Vietnam’s EV Contender is going up

VinFast, the ambitious Vietnamese EV maker, is making headlines again with a major surge in deliveries. The company delivered nearly 22,000 electric vehicles in Q3 alone, up 66% from the previous quarter. But what’s behind this growth?

  • Domestic Demand Boom: September saw VinFast deliver over 9,300 EVs in Vietnam, marking their highest monthly delivery to date. This suggests that local demand is driving their growth more than international markets.

  • Global Expansion Challenges: While Vietnam’s appetite for EVs is soaring, VinFast is struggling to break into the U.S. market. After delaying its North Carolina factory to 2028 and cutting this year’s delivery forecast by 20,000 units, the company still has a long way to go internationally.

⛽️ Kia Niro Tri-Fuel: Range Anxiety Solved?

1,000 Miles on a Tank? Finally a car for The Proclaimers.

Kia’s latest hybrid, the Niro Tri-Fuel, claims to smash the 1,000-mile range barrier. For drivers constantly worried about range, this could be a game-changer.

  • Tri-Fuel Setup: This is no ordinary hybrid. The Niro Tri-Fuel runs on gas, electricity, and liquified petroleum gas (LPG), giving it a massive range of 1,000 miles before refueling.

  • Emission Reductions: Even with all that range, Kia says the LPG option reduces emissions by 6% compared to its regular hybrid counterpart.

  • Why It Matters for Dealers: Long-range hybrids like this offer a compelling alternative to full EVs, especially for buyers not ready to make the full switch. Expect demand from customers who regularly do long trips and want to minimize refueling stops.

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