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Rivian’s R1S electric SUV was the fifth best-selling EV in the US in the fourth quarter. Last year saw a surge in EV leasing, and Rivian just introduced the option on the R1S earlier this year. Can leasing bump Rivian up even further?

Rivian R1S surges as EV leasing rolls out

Rivian’s R1S was the seventh best-selling EV in the US last year. According to data from auto research firm Kelley Blue Book, Rivian handed over nearly 24,800 R1S models in 2023.

The electric “Adventure Vehicle” broke the top five in the fourth quarter as EV leasing surged to a new record.

New data from Xperian’s State of the Automotive Finance Market Report Q4 2023 shows Rivian’s electric was the fifth best-selling EV in the US last quarter. The achievement comes despite Rivian introducing leasing for the R1S just last month.

Rivian’s electric SUV claimed 3.4% of EV sales in Q4, topped only by the Tesla Model Y (31.9%), Tesla Model 3 (17.6%), VW ID.4 (3.9%), and Ford Mustang Mach-E (3.4%).

SUVs, in general, dominated in the fourth quarter, pulling market share from pickups and sedans with almost 63% of financing.

Rivian-R1S-leasing
Rivian R1S (Source: Rivian)

The data shows electric vehicles accounted for 8.55% of new retail sales. That’s up from 7.1% a year ago.

“New incentive and rebate programs, combined with more affordable options hitting the market, have resulted in a broader range of consumers choosing EV,” Melinda Zabritski, Experian’s head of auto financial insights, explained.

Rivian-R1S-leasing
(Source: Experian)

Over 30% of EV consumers chose to lease their vehicles. That’s a new record, up from only 9.8% in 2022 and 19.3% in 2021.

Meanwhile, Rivian introduced leasing for the R1S in January, opening up a new option for shoppers.

Because of this, Rivian’s R1S was by far the lowest leased EV of the top-selling models. With just 0.94% of R1S shoppers choosing the leasing option, the R1S was far behind the Mach-E (39%), ID.4 (74.5%), Model 3 (14%), and Model Y (9%).

Rivian-R1S-leasing
(Source: Experian)

Other top-selling EVs with consumers primarily choosing to lease include the BMW iX (91%), BMW i4 (79%), Nissan Ariya (78%), Hyundai IONIQ 6 (64%), Kia EV6 (57%), and Hyundai IONIQ 5 (49%).

Electrek’s Take

Can leasing push the Rivian R1S past Ford’s Mach-E or the ID.4 over the next few quarters? Rivian has a planned shutdown in Q2 that will impact production.

Due to this, the EV maker expects output to remain flat, with about 57,000 deliveries in 2024. However, Rivian’s CFO, Claire McDonough, explained the company is boosting its R1 line rate by about 30% to compensate.

Ford, on the other hand, is pulling back. The automaker’s CFO, John Lawler, said Ford took “out some Mustang Mach-E production” in October.

Ford’s CEO Jim Farley mentioned a “seismic change” in the EV market earlier this month amid “a ton of new capacity” flowing into the electric SUV segment.

Rivian will introduce its more affordable R2 electric SUV on March 5 as the brand expands into new markets.

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Global EV sales hit 10.7M in 2025 – Europe surges, US stalls

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Global EV sales hit 10.7M in 2025 – Europe surges, US stalls

Global EV sales are still riding high, with 1.6 million EVs sold in July 2025, according to new data from global research firm Rho Motion. That’s up 21% from July last year, even though sales dipped 9% from June. It brings total EV sales for the first seven months of the year to 10.7 million – up 27% compared to the same period in 2024.

China stays on top

China continues to dominate, with 6.5 million EVs sold year-to-date, accounting for over half of all global EV sales. BEVs are still the top choice, with sales up 40% this year. Plug-in hybrids (PHEVs) didn’t fare as well, with domestic sales down 15% month-over-month and 10% year-over-year.

Even though Chinese EV sales dropped 13% in July from June, EVs made up over 50% of all passenger car sales for the third month in a row. The government is helping keep momentum going with another round of Q3 funding for its EV trade-in scheme, and a final 2025 round is expected in October.

Europe’s EV momentum is speeding up

Europe saw a 30% year-to-date jump in EV sales, reaching 2.3 million units. Germany and the UK are leading the pack – Germany’s up 43%, and the UK is up 32%. But France posted just a 9% year-over-year gain in July and is still down 11% for the year.

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To help turn things around, France is revamping its EV leasing program for low-income households starting September 30, aiming to support more than 50,000 purchases.

Meanwhile, Italy is the dark horse of 2025. Thanks to fresh incentives totaling around $700 million, EV sales are up 40%, and the country is quickly catching up to its neighbors. EV market share in Italy now stands at 11%, compared to 27% in Germany and over 30% in the UK.

North America stalls out except for one short-term boost

North America is lagging, with just a 2% bump in EV sales year-to-date. In the US, that’s partly due to policy uncertainty and tariffs. Automakers took a multi-billion-dollar hit in Q2, although some of that was offset by reduced requirements to buy zero-emission vehicle credits.

A spike in demand is expected in Q3, as buyers rush to take advantage of the Inflation Reduction Act’s EV tax credit before it expires on September 30, but a cooldown is then anticipated.

Some automakers are shifting their EV strategies: Ford recently announced a new “Universal EV Platform” and plans to launch a $30,000 midsize electric pickup with lithium iron phosphate (LFP) batteries by 2027.

And on the trade front, the US has inked deals with South Korea, Japan, and the EU to impose a 15% tariff on imported cars.

The bottom line

Chart: Rho Motion

Global EV sales are still charging ahead, even if the road is bumpy in some regions. China’s holding steady, Europe’s revving up, and North America’s waiting to see what happens next. Rho Motion data manager Charles Lester said, “Despite regional variations, the overall trajectory for EV adoption in 2025 remains strongly upward.”

Read more: EV sales hit 9.1M globally in H1 2025, but the US just hit the brakes


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Volkswagen is making some EV owners pay extra to unlock full potential

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Volkswagen is making some EV owners pay extra to unlock full potential

Another monthly subscription? Some Volkswagen EV drivers will now need to pay extra to unlock their vehicle’s full potential.

Volkswagen has put performance behind a paywall, at least for ID.3 drivers in the UK. The Volkswagen ID.3 Pro and Pro S are now listed with 201 hp on the UK website.

To unlock the vehicle’s full performance of 228 hp, drivers will now need to pay extra. You can choose from a monthly subscription, starting at £16.50 ($22) per month, or you can opt for a one-time lifetime fee of £649 ($880).

However, the one-time fee is attached to the vehicle, not the buyer. So if it’s sold, the upgrade goes with it. As Auto Express pointed out, the monthly payment is nearly three times that of a standard Netflix membership.

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Although the performance upgrade locks the extra power behind a paywall, Volkswagen said it doesn’t affect range.

Volkswagen-EV-pay-extra
Volkswagen ID.3 (left) and ID.4 (right)

Volkswagen isn’t the first, and likely not the last, to make drivers pay for their vehicles’ full potential. Remember when BMW tried to charge $18 a month for heated seats and other features in 2022?

Yeah, that didn’t go over so well. BMW has since dropped the subscription. Other brands, including Polestar, offer similar performance upgrades.

Volkswagen-EV-pay-extra
Volkswagen ID.3 GTX (Source: Volkswagen)

Will Volkswagen try to charge EV drivers in the US or other parts of Europe extra for performance? Given the backlash from BMW, it’s not likely. We’ll see how it goes over in the UK first.

The company is gearing up to launch a new series of entry-level EVs, starting with the ID.2 next year. An SUV version of the ID.2 is scheduled to launch shortly after, followed by the production version of the ID.1, which is set to arrive in 2027. Volkswagen is also considering a “mini Buzz” that could replace the Touran, but nothing has been confirmed.

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GPT-5’s rollout fell flat for consumers, but the AI model is gaining where it matters most

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GPT-5's rollout fell flat for consumers, but the AI model is gaining where it matters most

OpenAI’s GPT-5 escalates Anthropic enterprise rivalry

Sam Altman turned OpenAI into a cultural phenomenon with ChatGPT.

Now, three years later, he’s chasing where the real money is: Enterprise.

Last week’s rollout of GPT-5, OpenAI’s newest artificial intelligence model, was rocky. Critics bashed its less-intuitive feel, ultimately leading the company to restore its legacy GPT-4 to paying chatbot customers.

But GPT-5 isn’t about the consumer. It’s OpenAI’s effort to crack the enterprise market, where rival Anthropic has enjoyed a head start.

One week in, and startups like Cursor, Vercel, and Factory say they’ve already made GPT-5 the default model in certain key products and tools, touting its faster setup, better results on complex tasks, and a lower price.

Some companies said GPT-5 now matches or beats Claude on code and interface design, a space Anthropic once dominated.

Box, another enterprise customer, has been testing GPT-5 on long, logic-heavy documents. CEO Aaron Levie told CNBC the model is a “breakthrough,” saying it performs with a level of reasoning that prior systems couldn’t match.

Behind the scenes, OpenAI has built out its own enterprise sales team — more than 500 people under COO Brad Lightcap — operating independently of Microsoft, which has been the startup’s lead investor and key cloud partner. Customers can access GPT models through Microsoft Azure or go directly to OpenAI, which controls the API and product experience.

Still, the economics are brutal. The models are expensive to run, and both OpenAI and Anthropic are spending big to lock in customers, with OpenAI on track to burn $8 billion this year.

Read more CNBC tech news

Winning over enterprise

Anthropic matches OpenAI’s $1 offer and opens access to Congress and the courts

Truell said the change applies only to new sign-ups, as existing Cursor customers will continue using Anthropic as their default model. Cursor maintains a committed-revenue contract with Anthropic, which has built its business on dominating the enterprise layer.

As of June, enterprise makes up about 80% of its revenue, with annualized revenue growing 17x year-over-year, said a person familiar with the matter who requested anonymity in order to discuss company data. The company added $3 billion in revenue in just the past six months — including $1 billion in June alone — and has already signed triple the number of eight- and nine-figure deals this year compared to all of 2024, the person said.

Anthropic said its enterprise footprint extends far beyond tech.

Claude powers tools for Amazon Prime, Alexa, and AIG, and is used by top players in pharma, retail, aviation, and professional services. The company is embedded across Amazon Web Services, GCP, Snowflake, Databricks, and Palantir — and its deals tend to expand fast.

Average customer spend has grown more than fivefold over the past year, with over half of business clients now using multiple Claude products, the person said.

Excluding its two largest customers, revenue for the rest of the business has grown more than elevenfold year-over-year, the person said.

Even with that broad reach, OpenAI is gaining ground with enterprise customers.

GPT-5 API usage has surged since launch, with the model now processing more than twice as much coding and agent-building work, and reasoning use cases jumping more than eightfold, said a person familiar with the matter who requested anonymity in order to discuss company data.

Enterprise demand is rising sharply, particularly for planning and multi-step reasoning tasks.

GPT-5 spurs enterprise AI battle: Here's what to know

GPT-5’s improvement

GPT-5’s traction over the past week shows how quickly loyalties can shift when performance and price tip in OpenAI’s favor.

AI-powered coding platform Qodo recently tested GPT-5 against top-tier models including Gemini 2.5, Claude Sonnet 4, and Grok 4, and said in a blog post that it led in catching coding mistakes.

The model was often the only one to catch critical issues, such as security bugs or broken code, suggesting clean, focused fixes and skipping over code that didn’t need changing, the company said. Weaknesses included occasional false positives and some redundancy.

Vercel, a cloud platform for web applications, has made GPT-5 the default in its new open-source “vibe coding” platform — a system that turns plain-English prompts into live, working apps. It also rolled GPT-5 into its in-dashboard Agent, where the company said it’s been especially good at juggling complex tasks and thinking through long instructions.

“While there was a lot of competition already in AI models, Claude was just owning this space. It was by far the best coding model. It was not even close,” said Malte Ubl, CTO of Vercel. “OpenAI was just not in the game.”

That changed with GPT-5.

“They at least caught up,” Ubl said. “They’re better at some stuff, they’re worse at other stuff.”

He said GPT-5 stood out for early-stage prototyping and product design, calling it more creative than Claude’s Sonnet.

OpenAI CEO Sam Altman on GPT-5: We've built an 'integrated single experience'

“Traditionally, you have to optimize for the new model, and we saw really good results from the start,” he said about the ease of integration.

JetBrains has adopted GPT-5 as the default in its AI Assistant and in Kineto, a new no-code tool for building websites and apps, after finding it could generate simple, single-purpose tools more quickly from user prompts. Developer platform Factory said it collaborated closely with OpenAI to make GPT-5 the default for its tools.

“When it comes to getting a really good plan for implementing a complex coding solution, GPT-5 is a lot better,” said Matan Grinberg, CEO of Factory. “It’s a lot better at planning and having coherence over its plan over a long period of time.”

Grinberg added that GPT-5 integrates well with their multi-agent platform: “It just plays very nicely with a lot of these high-level details that we’re managing at the same time as the low-level implementation details.”

OpenAI's GPT-5 reignites enterprise AI battle

Pricing flexibility was a major factor in Factory’s decision to default to GPT-5, as well.

“Pricing is mostly what our end users care about,” said Grinberg, adding that cheaper inference now makes customers more comfortable experimenting. Instead of second-guessing whether a question is worth the cost, they can “shoot from the hip more readily” and explore ideas without hesitation.

Anton Osika, co-founder and CEO of Lovable, a company that builds an AI-powered tool that lets anyone create real software businesses without writing a single line of code, said his team was beta testing GPT-5 for weeks before it officially launched and was “super happy” with the improvement.

“What we found is that it’s more powerful. It’s smarter in many complex use cases,” Osika said, adding that the new model is “more prone to take actions and reflect on the action it takes” and “spends more time to make sure it really gets it right.”

Box‘s Levie said the biggest gains for him showed up in enterprise workflows that have nothing to do with writing code. His team has been testing the model for weeks on complex, real-world business data — from hundred-page lease agreements to product roadmaps — and found that it excelled at problems that tripped up earlier AI systems.

Levie added that for corporate use, where AI agents run in the background to execute tasks, those step-change improvements are critical, and can turn GPT-5 into a real breakthrough for work automation.

“GPT-5 has performed unbelievably well — certainly OpenAI’s best model — and in many of our tests it’s the best available,” he said.

— CNBC’s Kevin Schmidt contributed to this report.

WATCH: OpenAI launches GPT-5 model

OpenAI launches GPT-5 model

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