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👮‍♀️ Tesla Legal Victory, GM's EV Push, and Subaru SUV Sales: Key Auto Industry Updates
Chris Reeves
October 02, 2024
TL;DR:
Tesla dodges lawsuits but kills its cheapest model. Subaru’s sports cars are slipping, but SUVs save the day. GM is balancing EV growth, Hummer discounts, and a side mirror lawsuit. Volvo’s EX30 hits milestones, VinFast surges but struggles, and Stellantis can’t catch a break with Q3 sales.
The Digest
👨‍⚖️ Tesla’s Legal Wins Keep Rolling In (But Say Goodbye to the Cheapest Model)
Tesla just dodged a legal bullet as a federal judge dismissed a shareholder lawsuit over its Autopilot and Full Self-Driving tech. The verdict? Musk’s promises were deemed “puffery”—a fancy way of saying they’re marketing hype, not fraud. But while Musk’s legal team high-fives, Tesla quietly killed its cheapest option: the Model 3 Rear-Wheel Drive. So, affordable EVs from Tesla? Starting to look like a thing of the past.
What’s next? Tesla’s robotaxi reveal on October 10th. Will it finally deliver self-driving cars, or is it just more of Musk’s forward-looking statements? Either way, we’ll stick to cars we can trust—and dealers who have our backs.
🎡 Subaru’s Sports Cars Are Skidding, But SUVs Keep the Wheels Turning
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Enthusiasts may love Subaru’s BRZ and WRX, but apparently not enough to keep the sales figures afloat. Both models have taken a nosedive this year, with the BRZ down 30.9% and the WRX faring even worse at 34.2%. Ouch. Subaru blames high interest rates and late model-year updates, but it’s the Forester, Crosstrek, and Outback doing all the heavy lifting.
Winners: The Forester surged 22.3%, leading Subaru’s sales and proving practicality always wins.
Losers: BRZ (-30.9%) and WRX (-34.2%) are still parked in the sales lot.
To keep the SUV momentum going, Subaru’s rolling out a rugged new sixth-gen Forester in spring 2025. It comes with more off-road capabilities, a mild hybrid engine, and Subaru’s trademark symmetrical all-wheel drive. Think of it as a mountain goat with a sunroof.
But Subaru’s also facing a new headache—a class-action lawsuit over defective side mirrors on the 2024 Crosstrek and Ascent. Apparently, the mirrors shake while driving, distorting views and making night driving a gamble. Subaru hasn’t fixed it yet, leaving drivers to fend for themselves. Safety first?
⚔️ GM’s Investor Day: EV Ambitions, Hummer Discounts, and the Battle with Tesla
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GM is doing a tightrope walk, trying to balance its electric dreams with gas-powered profits. Investors are nervous about EV losses and competition from China, but GM is betting big on a mix of new SUVs and steady EV momentum. CEO Mary Barra is all about stability this time around. Remember the bold 2021 investor day? Now it’s all about keeping profits steady.
Here’s the breakdown:
SUV Power: Eight refreshed models launching by 2025, including the Chevrolet Equinox, Buick Enclave, and Cadillac Escalade.
ICE Wins: GM wants everyone to know its combustion engines are still making money.
China Woes: GM’s operations in China are officially "unsustainable" without a serious restructuring.
Any Questions?:
Can I get a Hummer EV discount? Yes, if you’re a Costco member. There’s a $1,000 discount on the Hummer EV pickup or SUV through the end of 2024. But be warned—this supertruck comes with a super price tag.
How are EVs doing? GM’s EV sales are up 60% this quarter, but they still only make up 4.9% of total sales. Tesla’s way ahead, but GM is slowly catching up with a 9.5% market share in the U.S. EV market.
Looking Ahead: GM is making strides in EVs, but they still have ground to cover to catch up to Tesla.
Read the full GM breakdown here.
🥳 Volvo’s EX30 Hits a Milestone, Charging Up Sales
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Volvo’s smallest and cheapest EV, the EX30, just hit a milestone: the 100,000th model rolled off the production line. This compact SUV is already proving to be a major player for Volvo, driving a 36% year-over-year sales increase. It was Europe’s second-best-selling EV last month, right behind the Tesla Model Y. Not bad for a $34,950 SUV.
Delayed in the U.S.: Thanks to new tariffs on Chinese-made EVs, U.S. buyers will have to wait until the second half of 2025 for the EX30. But Volvo’s already planning to build them in Belgium to avoid those pesky tariffs.
Meanwhile, Volvo’s September sales increased 1% globally, with electrified models accounting for 48% of all cars sold. Fully electric and plug-in hybrids surged by 43%, showing Volvo is doubling down on its electrification strategy.
And speaking of commitment, Volvo is leading a group of 50 companies pushing the EU to stick to its 2035 combustion-engine ban. While some automakers are dragging their feet (cough Volkswagen cough), Volvo’s all-in on going green.
🚀 VinFast’s Q2 Surge: Deliveries Up 44%, But Challenges Remain
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Vietnam’s VinFast is on a roll, reporting a 44% surge in Q2 EV deliveries. They’ve delivered 22,348 vehicles in the first half of 2024—more than double last year’s total. Demand in Vietnam is off the charts, thanks to flexible battery subscription plans. VinFast is expanding in the U.S. too, now operating in eight states and opening 15 showrooms in Indonesia.
But there’s a catch:
Gross Losses: Despite strong sales, VinFast reported a $224 million loss for the quarter. Not great.
Ambitious Plans: VinFast aims to deliver 80,000 vehicles by the end of 2024, but competition and economic challenges are lurking around every corner.
On the bright side, their new VF 3 compact electric SUV just launched in the Philippines, marking a major step in Southeast Asia. With nearly 28,000 pre-orders in Vietnam alone, this little SUV is making waves.
🤕 Stellantis U.S. Sales Fall Sharply in Q3, But Optimism Remains
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Stellantis is having a rough year. U.S. sales are down nearly 20% in Q3, with Chrysler (-47%) and Dodge (-43%) taking the biggest hits. Jeep and Ram didn’t do much better, but Stellantis is trying to correct past mistakes. CEO Carlos Tavares has been open about the company’s “arrogant” errors, and he’s making cost cuts and pushing new incentives to clear old stock.
Here’s the game plan:
Incentives: An aggressive Q3 incentive program helped reduce dealer inventory by 50,000 units.
EV Push: Stellantis is pinning its hopes on upcoming models like the Ram 1500 REV and Dodge Charger Daytona.
Despite the grim numbers, Stellantis’ market share crept up slightly to 8%. But it’s going to take more than that to turn the ship around.
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