🔥 Brakes, States, and Hot Takes

October 24, 2024

The Gist

Automatic braking? It’s getting better—unless you’re a carmaker trying to meet the 2029 federal deadline. Stellantis is teasing semi-solid-state batteries, but don’t hold your breath for fully solid. Ford’s E-Transit is electrified and priced to compete with gas, but Farley’s secret Chinese EV love affair proves U.S. automakers have some catching up to do. Tesla’s earnings report is full of surprises, including a politically charged Musk and some quirky Cybertruck sales. Meanwhile, Hyundai’s profits are shrinking faster than EV demand in China.

This Digest

🛑 Brake Check: Automatic Emergency Braking Progress Report

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Automatic Emergency Braking (AEB) tech is getting better at avoiding crashes, but it’s not perfect. A recent AAA study shows newer models outperform older ones, while automakers are less than thrilled about meeting upcoming federal requirements.

  • Crash Prevention: According to AAA, 100% of 2024 vehicles with AEB stopped before a collision, a significant improvement over the 51% success rate of 2017-2018 models.

  • Speed Test: Vehicles were tested at 12 mph, 25 mph, and 35 mph using Jeep Cherokee, Nissan Rogue, and Subaru Outback models. While the system is effective at lower speeds, it’s still a work in progress at higher speeds.

  • New Requirements by 2029: The NHTSA is pushing for all vehicles to have advanced AEB systems by 2029, capable of detecting pedestrians, cyclists, and even preventing crashes at night.

  • Automaker Pushback: Major carmakers are lobbying against the 2029 deadline, claiming the tech isn’t ready yet. The Alliance for Automotive Innovation called the new rules “practically impossible” to meet on time.

🪨 Stellantis Charging Ahead with Semi-Solid-State Batteries? Really?

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Dodge Chargers with semi-solid-state batteries sound like the future of EVs, but is Stellantis overselling the tech? Let’s dive into the details with some well-deserved skepticism.

Wait, semi-solid-state? Isn't it supposed to be fully solid by now?

Yep, it’s called “semi-solid” because they haven’t completely ditched the liquid electrolytes. Think of it like having one foot in the future and the other stuck in the present. The good news is, you get more range and lighter batteries. The bad news? Fire risks still exist.

So when can I get one of these tech-packed Chargers?

You might see a demo fleet in 2026, but full production? Not quite yet. Stellantis is cautiously optimistic, but remember, Nissan already walked away from solid-state dreams, and Fisker couldn’t get theirs to work. Let’s not bet the farm on this just yet.

🔋 Ford E-Transit: Electrifying Work Vehicles

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Ford’s electric E-Transit is now priced on par with its gas counterpart, meaning businesses can switch to electric without paying extra upfront. Add in incentives, and the electric option is actually cheaper in the long run.

Price Parity

The 2025 Ford E-Transit starts at $51,000, the same as the gas version. With maintenance and fuel savings, the electric option is a no-brainer for businesses. The chassis cab version starts at $46,200, making it even more attractive.

Upfitting Options

Ford offers four trade packages straight from the factory, designed for electricians, HVAC, contractors, and delivery services. No more sending your van to a third-party upfitter—Ford’s got you covered.

Charging Perks

Ford is throwing in a $2,000 commercial charging incentive to help businesses install EV chargers. Combine that with local and federal incentives, and businesses can make the switch with ease.

🇨🇳 Farley’s Chinese EV Crush: What It Means for U.S. Automakers

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Ford CEO Jim Farley’s confession of driving a Chinese-made Xiaomi SU7 for months is making waves. Why? It highlights just how far behind Western automakers are in the EV race—and why Farley says Chinese brands are an "existential threat."

Farley’s Confession

Farley’s love affair with his Xiaomi SU7 reveals a hard truth: Chinese EV makers like Xiaomi and Huawei are miles ahead when it comes to battery tech, software, and price. Farley even went so far as to fly the car from Shanghai to Chicago because he couldn’t resist its performance and integration.

What It Means

Chinese brands have managed to integrate advanced technology into their cars faster than their U.S. counterparts, which has Farley and other U.S. auto execs sweating. While Western automakers lobby for protectionist policies, Chinese companies continue to innovate and outpace them on the global stage.

🚀 Tesla: A Quarter Full of Surprises (and Drama)

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Tesla’s third-quarter earnings topped analysts' expectations, but it wasn’t all smooth sailing. Between Musk’s political shenanigans and Cybertruck’s quirks, investors were left with plenty to chew on.

  • Earnings Highlights: Tesla beat expectations with $25.18 billion in revenue (just shy of the projected $25.37 billion) and a 20-30% growth forecast for 2025, thanks to lower-cost vehicles and more focus on autonomy.

  • Cybertruck’s Debut: The angular Cybertruck sold 16,000 units in Q3, despite its quality issues. It’s now the third-best-selling EV in the U.S., behind the Model 3 and Model Y. Tesla managed to squeeze a positive gross margin out of the truck, but quality control remains an issue.

  • Musk’s Political Move: Here’s the juicy part—Musk’s political activism in support of Trump has investors nervous. Tesla’s stock has dipped 18% in October, and shareholders are wondering if Musk’s antics are damaging the brand’s reputation.

🔧 Hyundai's Profit Woes: Geopolitics and EV Hesitation

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Hyundai’s Q3 profits took a hit, and it’s not just about weak sales. Geopolitical tensions and the slowdown in EV demand are taking their toll, forcing the automaker to rethink its strategy.

Profit Drop

Hyundai’s operating profit dropped 6.5%, missing analyst expectations. The automaker faced a one-off expense of 320 billion won related to preemptive warranty extensions, contributing to the decline.

Global Tensions

Geopolitical risks, especially around the U.S. presidential election and diverging policies on EVs, are making it difficult for Hyundai to stay profitable in the short term. The company’s North American sales rose 9.3%, but declines in China (61%) and India (5.7%) offset those gains.

Looking Ahead

Hyundai is doubling down on hybrid production to bridge the gap between EV hesitancy and economic slowdown. The automaker aims to double its hybrid lineup by 2030 while maintaining its ambitious EV sales targets.

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