🐾 Tariffs Pause, Ford in Canada, and Brand-by-Brand Data

The Gist

🪖 Tariff Tuesday: Just Another Trade War – The auto industry dodged a financial gut punch as U.S. tariffs were delayed 30 days. Canada and Mexico bought time with border security deals, but China’s 10% tariff hike is full speed ahead—meaning parts are getting pricier.

⚡ Ford’s New Acronym: EREV, Not EV – Ford is pushing Extended Range Electric Vehicles (EREVs) for its trucks and SUVs—halfway between EVs and hybrids, but with extra confusion. Meanwhile, Canadian buyers get free home chargers, leaving U.S. dealers wondering if they’ll get the same deal.

🪦 Kia’s K4: Sedans Rise From the Grave – The K4 sedan outsold Kia’s SUVs in January, proving people still like cheap, fuel-efficient cars. SUVs aren’t going anywhere, but not everyone wants to drive a rolling studio apartment.

🎢 Tesla’s Rough Ride: Slumps, Stock Drops & Sales Slides – Tesla’s California registrations fell 12%, European sales tanked, and stock dropped 5% after tariff news. Oh, and they’re now discounting Cybertrucks—because apparently, demand wasn’t infinite.

🚙 Volvo’s 5% Sales Dip, But Self-Driving Trucks! – January sales slipped, but EVs & hybrids grew 17%. The real headline? Volvo is teaming up with Waabi to bring an AI-driven self-driving truck to life—because robot semi-trucks are somehow still an easier problem than robot taxis.

🏎️ Ferrari Prints Money, Ignores Reality – While the auto market flails, Ferrari posted a 21% profit surge and expects even more growth in 2025. Turns out rich people will always buy fast cars, no matter what.

🚀 Lucid’s Gravity: Weightless Hype or Heavyweight Player? – Lucid sales jumped 51%, thanks to its new Gravity SUV. But with only 50 Gravity units sold, is this a real turnaround or just another EV honeymoon phase?

🪖 Trade Wars & Tariff Woes: Just Another Tuesday

The auto industry dodged a tariff-shaped bullet—for now. Trump’s latest round of import levies was postponed at the last second, buying automakers 30 days before potential price hikes kick in. Meanwhile, Canada and Mexico struck deals with the U.S., trading border security for tariff relief. But don’t get too comfortable—some costs are still creeping up.

What You Need to Know:

• The U.S. and Canada reached a last-minute deal to delay auto tariffs, avoiding immediate price hikes on North American-made vehicles.

• Canada agreed to spend $1.3 billion beefing up border security with helicopters, tech, and personnel. Mexico, in turn, is deploying 10,000 troops to curb drug trafficking.

• The 10% tariff hike on China? Still happening. That means higher costs on parts, and eventually, higher sticker prices.

• Analysts predict vehicle prices could rise anywhere from $1,000 to $9,000 depending on supply chain exposure to China.

• Historically, it takes six months for tariff impacts to hit consumer prices—meaning the real cost crunch could land just in time for summer sales.

The industry got a brief reprieve, but the tariff rollercoaster isn’t over. You ready for a long winter?

⚡ Ford’s EREV Pivot & Canada’s Free Charger Deal

Ford is making two major moves in the EV space—one aimed at keeping trucks and SUVs viable with Extended Range Electric Vehicles (EREVs) and another designed to remove a major roadblock for Canadian EV buyers. What’s the takeaway for U.S. dealers? Let’s break it down.

EREVs: Ford’s Bet on an EV Middle Ground

• EREVs (Extended Range Electric Vehicles) use a gas-powered generator to extend battery range but never directly drive the wheels. Think Volt, not Prius.

• The strategy lets Ford offer smaller, cheaper batteries while keeping range anxiety low—perfect for Super Duty buyers who aren’t sold on full EVs.

• Ford plans to launch EREV versions of its best-selling SUVs, crossovers, and trucks, likely within two years.

• Expect consumer confusion—this is new tech for most, and education will fall on dealers.

Canada’s Free Home Charger Move: A Sign of Things to Come?

• Ford’s Power Promise program now includes free home chargers and installation for Canadian EV buyers (except in Quebec, where it costs $2,450 + tax).

• Covers Mustang Mach-E, F-150 Lightning, and E-Transit purchased or leased between Feb. 1 and March 31.

• Ford is eliminating home charging headaches, making it easier for hesitant buyers to commit.

• U.S. dealers take note—if this program proves successful in Canada, could we see a similar push stateside?

What This Means for U.S. Dealers

Ford is clearly working to remove EV adoption barriers while hedging its bets with EREVs for truck-heavy markets. Dealers should keep an eye on how these moves shape consumer expectations—especially if buyers start asking why they don’t get a free charger with their new Lightning.

🪦 Kia’s K4 Surprise: Sedans Aren’t Dead (Yet)

Kia’s best-selling vehicle in January wasn’t an SUV—it was the new K4 sedan. The K4 (and its predecessor, the Forte) moved 11,616 units, barely edging out the Sportage crossover. Meanwhile, the K5 sedan saw a 32.5% sales jump, proving that affordable four-doors still have a place in today’s SUV-heavy market.

What This Says About Consumer Preferences:

• Affordability is king. With a $23K starting price, the K4 offers budget-conscious buyers an alternative to pricier SUVs.

• Not everyone wants a giant car. As SUVs keep growing, compact sedans offer an escape from the “one-bedroom apartment on wheels” trend.

• Hybrid & EV growth isn’t universal. Kia’s Niro (down 41.7%) and Seltos (down 29%) suggest some small crossovers are losing steam.

Kia’s 11.5% overall sales increase shows strength, but the bigger story is clear: sedans still have life left—especially when they’re cheap.

🎢 Tesla’s Slump: A Speed Bump or a Sign of the Times?

Tesla’s grip on the EV market is loosening, with California registrations dropping 12% in 2024 and global deliveries slipping for the first time ever. While high interest rates and growing competition are partly to blame, the bigger picture suggests a shift in EV consumer behavior.

The Data Tells the Story:

• California, Tesla’s home turf, saw a 12% drop in registrations. The Model Y still leads, but Model 3 sales plummeted 36% year-over-year.

• European sales are hurting too. France (-63%), Sweden (-44%), and Norway (-38%) all saw steep declines.

• Inventory pileups? Tesla ended 2024 with over 10,000 unsold Cybertrucks, and the backlog has vanished.

• Discounts incoming. Tesla cut lease prices on the Model 3 and Cybertruck, signaling softening demand.

Tesla’s stock reflected the turbulence, dropping 5% on Monday after news of declining vehicle registrations in key markets and the impact of Trump’s new 10% tariffs on China. While the company’s global supply chain helps it sidestep some issues, its CFO admitted that tariffs could hurt profitability, adding yet another headwind to an already rocky start to 2025.

Tesla isn’t going anywhere, but these numbers point to a maturing EV market—buyers have more options, competition is fierce, and price sensitivity is real. The days of Tesla running unopposed? Over.

🚙 Volvo’s January Dip & a High-Tech Trucking Bet

Volvo’s January sales slipped 5%, totaling 50,820 units, but there’s a silver lining—EVs and plug-in hybrids grew 17% and now make up 44% of total sales. The dip was largely blamed on Chinese New Year timing, but investors weren’t thrilled, sending shares down 2.61%.

🚛 Waabi & Volvo: A Self-Driving Future in the Making

Volvo is doubling down on autonomous trucking, adding Waabi to its roster alongside Aurora. Waabi, founded by a former Uber AI chief, promises a next-gen, AI-driven approach to self-driving. Volvo plans to integrate the “Waabi Driver” into its big rigs at its Virginia plant. No launch date yet, but the road to autonomy just got a little more futuristic.

🏎️ Ferrari: Immune to Market Chaos, Thriving in Luxury

While the broader auto market weathers tariffs and uncertainty, Ferrari keeps printing money. The luxury carmaker’s net profit surged 21% in 2024 to €1.53 billion ($1.58B), fueled by a strong product mix and high-end customization demand.

Key Numbers Behind Ferrari’s Resilience:

• 2024 revenue hit €6.7B, up 12% year-over-year.

• EBITDA jumped to €2.56B, exceeding 2023’s €2.28B.

• Stock soared 8% in Milan and nearly 9% in the U.S. after earnings.

• 2025 revenue forecast? Another 5% growth, hitting over €7B.

Ferrari proves once again that when the market gets rough, the ultra-wealthy keep spending. While mainstream brands fight over price-sensitive consumers, Ferrari continues to prioritize profitability over volume—and it’s paying off.

🚀 Lucid’s Gravity: A Shiny New Toy or a Shiny New Lucid?

Lucid’s sales jumped 51% in January, riding the wave of its first-ever SUV launch. The new Gravity SUV contributed 50 units to last month’s 665 total sales, proving that new models still move the needle—but is this a one-time pop or the start of something bigger?

The Numbers & The Hype:

• Lucid sold 665 vehicles in January, up from 440 a year ago but down from December’s 780 (seasonal slump or something more?).

• Gravity’s debut added 50 sales, a modest but notable start for the luxury EV SUV.

• Stock rebounded 45% from December lows but remains down 95% from its 2021 peak.

• Lucid Gravity touts serious specs—450-mile range, 926V powertrain, 400kW fast charging, and Tesla Supercharger access.

Lucid has all the ingredients for a comeback, but the real test isn’t this month’s sales—it’s whether Gravity can maintain momentum. Will Lucid finally carve out its space in the luxury EV market, or is this just another short-lived spike?

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