🚀 Stocks, Credit, and Insults Fly

November 12, 2024

The Gist

GM’s stock is soaring, luxury EVs are multiplying (and ditching CarPlay?), and auto loans are finally easier to get—welcome news for buyers. Meanwhile, Suzuki’s budget sedan impresses with a five-star safety rating, while Toyota’s scoffing at California’s EV mandates. Nissan’s activist investors are stirring things up, and BYD is racing to pass Ford in sales. Over at Lucid, the CEO isn’t pulling punches, saying most American EVs are underwhelming. Meanwhile, a “Lamborghini” Miata at SEMA turned out to be a Chevy in disguise, and Europe and China are facing off over EV tariffs, proving there’s no shortage of drama in the industry.

In short, whether it’s GM leading the pack or BYD challenging U.S. automakers, the road ahead promises twists, turns, and—naturally—a bit of chaos. Buckle up.

Fuel For Thought

📈 GM's Stock Market Surge: Numbers Tell the Story

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GM has managed a stock surge that’s left Wall Street cheering. Here’s a breakdown of how GM is setting itself apart this year, even as rivals struggle to keep up.

  • Stock Growth: GM’s stock has risen 54.7% this year, towering over competitors like Tesla, Ford, and Rivian. Ferrari, another market favorite, follows at 34.3%.

  • Stock Buybacks: GM has repurchased $12.4 billion worth of stock since last November, helping to boost market confidence.

  • Competitor Comparison: Detroit competitors Ford and Stellantis are underperforming, with Ford down 10% and Stellantis down 42.5%.

  • Financial Targets: GM’s robust 2024 guidance contrasts with cost-cutting measures seen in other automakers, like Nissan and Volkswagen, which are undergoing massive restructurings.

Cadillac's Big EV Bet

The Cadillac Vistiq aims to win over luxury EV buyers with its range and power, but can it deliver on the hype?

Why is Cadillac pushing another luxury EV? Aren't they everywhere?

The Vistiq is part of Cadillac’s growing EV family. It brings a unique mix of style, range, and horsepower. But at nearly $80K, this isn’t for everyone. Cadillac’s betting big on wealthy buyers—but Trump’s planned tax credit cuts might make this an even smaller niche.

300 miles of range—should I be impressed?

It sounds great, but with many new EVs nearing 300 miles, it's not groundbreaking. The Vistiq offers 615 horsepower and lots of bells and whistles, but at a high price point, it’ll mostly cater to those who value luxury over value.

No Apple CarPlay? Google better be worth it.

Cadillac’s decision to skip Apple CarPlay for Google’s software has baffled many. Cadillac says it’s all about seamless integration, but most buyers want more options, not fewer.

🚗 Auto Credit Availability Surges Amid Market Uncertainty

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October’s auto credit loosening shows a promising recovery after summer’s lending slowdowns. Here’s what you need to know:

  • Dealertrack Credit Availability Index: Up 2.2% month-over-month, marking the largest increase since March 2022.

  • Subprime Market Growth: Subprime loans are becoming more accessible, rising by 20 basis points in October.

  • Lender Loosening: Credit unions saw the largest relaxation in standards, while auto-focused finance companies showed the least but are still offering more credit access than pre-pandemic levels.

  • Yield Spread Changes: The auto loan rate dropped by 11 basis points, making car loans more appealing compared to bond yields.

🪙 Suzuki and Toyota's EV Crossover: A Game-Changer or Gimmick?

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The Toyota-Suzuki alliance may be producing a real market disruptor with the e VITARA. It’s aiming to deliver a global, consumer-focused EV at a time when everyone else is focusing on high-end models.

  • Off-Road Capability: This 4WD SUV has a reliable range and rugged build, promising adventure-ready versatility.

  • Global Reach: Set for release across Japan, India, Europe, and Africa, the e VITARA is poised to capture the global EV market.

  • Partnership for the Future: This collaboration is about more than market share—it’s a joint push for carbon neutrality. Suzuki President Toshihiro Suzuki calls it a “multi-pathway approach” that gives buyers options beyond high-end EVs.

Suzuki's Safety Surprise: Budget Car Breaks Records

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Suzuki’s $8,000 sedan, the Dzire, just smashed expectations by scoring five stars in Global NCAP crash tests. Here’s how this budget-friendly car is changing the game.

  • Safety on a Budget: The Dzire comes with six airbags and other safety features, making it one of the safest cars in its class.

  • Global Success: Suzuki’s decision to prioritize safety with an affordable car has made it a hit, with over 2.7 million sales since 2008.

  • Going Global: The Dzire will now expand to Africa, the Middle East, Latin America, and ASEAN countries, where it promises reliable and affordable safety.

📉 California’s EV Mandate Woes

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Speaking of Toyota. The company’s execs have strong words about California’s “impossible” zero-emission mandates. Here’s a reality check on the challenges.

California wants 35% zero-emission vehicles by 2026? Isn’t that ambitious?

Ambitious? Try unrealistic. Toyota’s COO, Jack Hollis, said it straight: “I have not seen a forecast by anyone … that has told us that number is achievable.” It’s all well and good to set goals, but meeting them is another story.

Is anyone on track to meet these mandates?

Not really. The national average for EV sales is a mere 9%. Only California, Colorado, and Washington have come close, with California leading at 27%. It’s a long way from 35%.

Is Toyota planning to go along with it anyway?

Not quite. Toyota prefers a national standard to avoid market distortion. The push for state-by-state rules makes it difficult for automakers to standardize and keep costs manageable.

💰 Nissan Activist Investor Drama

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Effissimo Capital’s recent stake in Nissan has caused waves, pushing Nissan stock up 12% and spurring speculation about a shake-up in Japan’s auto industry.

  • Activist Investor Moves: Effissimo Capital is known for targeting large Japanese companies like Toshiba. Now it’s taking aim at Nissan, stirring hopes of an acquisition.

  • Financial Crisis at Nissan: Nissan’s earnings have dropped, prompting rumors of a potential takeover, especially as competition from Chinese EV makers intensifies.

  • Speculation on Restructuring: Analysts predict Nissan might cut costs, with production slashes and executive pay cuts likely. Effissimo’s interest may push Nissan toward more drastic restructuring efforts.

🔥 BYD’s Global Takeover: Numbers Speak Loud

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Chinese EV powerhouse BYD is on track to surpass Ford in global deliveries by year-end. Here’s how the numbers stack up.

  • Record-Breaking Sales: BYD sold 534,003 vehicles in October alone. Ford’s quarterly average is around 1.1 million, but BYD is closing the gap fast.

  • Market Momentum: BYD outsold Ford in the third quarter by 40,000 units, solidifying its rise in the EV market. Subsidies in China are boosting BYD’s appeal, especially with hybrids and BEVs.

  • Global Ambitions: BYD’s growth strategy focuses on diverse models for different markets, offering options from budget-friendly EVs to high-end hybrids, while Ford is still trying to streamline its multi-powertrain lineup.

🚨 Lucid CEO Throws Shade

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Lucid’s CEO has a lot to say about the state of EVs in the U.S., and he isn’t holding back. Here’s his take on why “many EVs in America frankly suck.”

Did the CEO of Lucid just say EVs here suck?

Yep. According to Peter Rawlinson, Americans have been sold on “underwhelming” EVs. He claims “many people [in America] have driven EVs that frankly suck.” It’s bold, but he’s serious about the need for higher standards.

Why does he think Lucid is the answer?

Rawlinson believes Lucid’s EVs offer superior range, performance, and quality—basically what every other EV here is missing. Of course, with Lucid’s high prices, it’s a “premium” experience.

Is he just trying to hype his own cars?

Maybe, but he’s got a point. EVs from China often boast better batteries and more tech. It’s a call for competition and innovation, but Lucid might just be pushing itself as the gold standard.

🪖 Mazda’s Miata with “Lambo” Hype: Here’s the Real Scoop

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The Lamborghini Miata at SEMA? Not quite. Turns out, this “Lambo-engine” Miata is rocking a Gen V Chevy small block.

  • Not Quite What It Seems: Despite the hype, this isn’t a Lambo engine. Instead, it’s a 6.2-liter Chevy V8 with Lamborghini branding.

  • Behind the Build: Builder Jefferson Marcal used a Chevy engine due to space and cost constraints. But the Miata still looks as wild as it sounds.

  • Fan Reactions: Reactions are mixed, with some fans loving the build and others calling it a “fraud.” It may not be a true Lamborghini Miata, but it’s still a cool creation.

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