Tesla (TSLA) rises on deliveries in China, but can it save its Q3?
Tesla’s stock (TSLA) is up this morning on delivery data from China showing a strong end-of-quarter performance, but is this enough to save its Q3?
Insurance registration data in China shows that Tesla delivered 15,600 vehicles in the country last week, down 3.7% from the prior week, which had a strong performance with 16,200 registrations.
This is a strong start for September, with 31,800 registrations. That only accounts for Tesla’s vehicles built at Gigafactory Shanghai and sold domestically—though that’s generally most of its Shanghai production at the end of quarters to limit vehicles in transit.
Tesla tends to end quarters strong with a push in deliveries over the last few weeks.
According to the China Passenger Car Association (CPCA), Tesla China delivered 86,697 electric vehicles made in China in August and just over 74,000 vehicles in July.
Tesla is on pace to deliver over 230,000 electric vehicles in and from China in Q3.
Is China going to save Tesla’s Q3?
Tesla introduced 0% financing in China this year in order to boost demand in its most important market and it is clearly working.
However, other markets are not doing as well.
According to registration data, Tesla’s deliveries in Europe are way down this year:
Tesla is down more than 70,000 vehicles in its biggest EU markets compared to last year. The difference is more significant by 10,000 units since we last checked in August.
Electrek’s Take
It looks like China is going to be able to compensate for some of Tesla’s troubles in the EU, but not all of it.
The difference maker in Q3 could end up being the US market, where Tesla has been having its own issues, but it recently introduced strong incentives to try to boost sales.
The new referral program basically results in a $1,000 discounts on all cars except Cybertruck. Speaking of Cybertruck, it’s not a high volume program, but the recent ramp-up in production does point to it contributing a few tens of thousands of units to Tesla’s total deliveries in Q3.
Finally, Tesla recently introduced new financing incentives in the US that are likely going to be impactful at the end of the quarter.
At this point, I think Tesla is likely going to beat deliveries from last quarter, 443,956 units, which would actually mean a return to year-over-year growth for Tesla since it delivered 435,000 units during the same period in 2023.
However, I believe that Tesla will be far short of the 585,000 vehicles it needs to be deliver in order to be on pace for its original goal of 2 million deliveries in 2024. It might even be short of the 485,000 vehicles it needs to be on pace so as not to be down year-over-year in deliveries for the whole year.
What do you think? Let us know in the comment section below.
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Environment
MG begins deliveries of the world’s first mass-produced EV with a semi-solid-state battery
SAIC MG delivered the first MG4 model with a semi-solid-state EV battery in China, starting at under $15,000.
The MG4 is the first EV with a semi-solid-state battery
In August, SAIC MG launched the all-new MG4 at the Chengdu Auto Show, deeming it “the world’s first mass-produced semi-solid-state” electric vehicle.
The new MG4 is available in five different trims: Comfort, Ease, Freedom, Smart, and the semi-solid-state “Secure” edition.
SAIC MG announced on Thursday that it had delivered the first MG4 equipped with the new battery tech. The new MG4 is on sale starting at 68,800 RMB ($9,800), with prices rising to 102,800 yuan ($14,500) for the semi-solid-state battery model.
It’s available with two lithium iron phosphate (LFP) battery sizes: 42.8 kWh or 53.95 kWh. The three lowest-priced trims are equipped with the smaller (42.8 kWh) battery, providing 437 km (271 miles) CLTC driving range, while the Smart version uses the 53.95 kWh battery, delivering 530 km (330 miles) of range.
Meanwhile, the semi-solid-state variant is powered by a 53.95 kWh semi-solid manganese-based lithium-ion battery, delivering 530 km (330 miles) of CLTC range.
All new MG4 models are powered by a single front-mounted “six-in-one” electric motor with 120 kW (161 hp) and 250 Nm torque. Using DC fast charging, it can recharge from 30% to 80% in 20 minutes.
The electric hatch is 4,395 mm long, 1,842 mm wide, and 1,551 mm tall, with a wheelbase of 2,750 mm. That’s about the size of the BYD Dolphin.
Like most Chinese EVs nowadays, the new MG4 is loaded with modern tech and features. The smart cockpit is powered by a Qualcomm Snapdragon 8155 in-car chip.
While the three lower-priced trims feature a 12.8″ central infotainment screen, upgrading to the Smart and semi-solid-state models adds a bigger 15.6″ display with 2.5K resolution.
The company said that by reducing the liquid electrolyte content to just 5%, the semi-solid-state EV battery significantly reduces the risk of combustion and improves the cycle life.
In two recent needle penetration tests, the new battery produced no smoke, no fires, and no explosions after two hours. SAIC MG said it was an industry first, exceeding industry standards by 20%.
SAIC MG delivered over 13,000 new MG4 models in November. It’s also the best-selling independent Chinese car brand overseas, A “beacon of Chinese automotive success,” in the EU and British markets, the company said.
Source: CarNewsChina, SAIC MG
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GM CEO Mary Barra is reportedly considering Sterling Anderson, the former head of Tesla Autopilot and co-founder of Aurora, as her potential successor. But first, she is putting him through a “tough test” in his new role as Chief Product Officer.
We reported back in May that GM hired Anderson as its new Chief Product Officer in a surprising move that put a tech executive in charge of the legacy automaker’s entire vehicle development program.
Anderson is well-known in the EV community. He led the Model X program at Tesla and was the director of the Autopilot program during its formative years (2015-2016). He later left to co-found Aurora Innovation, a self-driving startup that has focused heavily on autonomous trucking.
Now, a new report from Bloomberg states that Barra sees Anderson as a frontrunner to replace her when she eventually steps down.
According to the report, Barra is “gauging” Anderson for the top job by giving him a massive portfolio that serves as a trial by fire. Since joining in June, Anderson has been tasked with overseeing the end-to-end lifecycle of GM’s products, both gas and electric, including the critical integration of hardware and software.
The “test” essentially boils down to whether Anderson can successfully execute Barra’s vision of transforming GM into a tech-first company. This involves untangling the automaker’s software woes and delivering on the promise of “eyes-off” autonomous driving for personal vehicles, a pivot away from the robotaxi-focused strategy of its former Cruise unit.
While Barra, 63, hasn’t announced a retirement date, the pressure is on to find a leader who can navigate the rapid transition to electric and software-defined vehicles. If Anderson passes this “test,” he could become the first outsider with a tech background to lead the 117-year-old automaker.
Electrek’s Take
“Tech background” is not entirely true, but mostly accurate. He has spent a few years at Tesla and then built Aurora; both are in the auto industry, but certainly on the techy side of it. Before that, he spent years at MIT, and the ‘T’ stands for technology.
I’ve only had a few interactions with Sterling, but from what I could tell, he is a smart guy who was among the most realistic about autonomy at Tesla, which is probably why he didn’t last long at the head of the program and went on his own.
He helped build Aurora into a multi-billion-dollar company that is now seen as the leader in autonomous trucking.
GM is starting to build an extensive and impressive EV lineup, but it still has issues committing to high volume due to the political landscape, which, in my opinion, the company itself often lobbied the wrong way.
I think some fresh blood could help.
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The House of Representatives on Thursday passed a bill aimed at making it easier to get federal permits to build infrastructure for artificial intelligence projects.
The bill, known as the SPEED Act, is backed Big Tech giants such as OpenAI, Micron and Microsoft
The bill cleared the House in a 221-196 vote, overcoming a conservative rebellion that nearly sank the legislation in a procedural vote earlier this week.
The bill now heads to the Senate, where it is likely to be part of a larger conversation around permitting reform.
The SPEED Act’s proponents argue it is critical to help the U.S. outpace China and other global competitors in the race for AI dominance.
“The electricity we will need to power AI computing for civilian and military use is a national imperative,” said Rep. Bruce Westerman, R-Ark., the bill’s sponsor and chair of the House Natural Resources Committee.
The SPEED Act would reform the 1969 National Environmental Policy Act, which mandates federal reviews for projects that would impact the environment.
It would tighten the timelines for NEPA reviews and shrink the statute of limitations for NEPA litigation to 150 days from the current six years.
Permitting reform has drawn bipartisan support recently as clean energy projects supported by Democrats became ensnared in permitting delays.
Pressure has built on Congress to act as AI has emerged as a key sector and power-hungry data centers have placed an increased strain on the electric grid.
The Democratic cosponsor of the bill, Rep. Jared Golden of Maine, said the SPEED Act would allow the U.S. to be “nimble enough to build what we need, when we need it.”
Most Democrats opposed the SPEED Act, however, demanding that any permitting bill overturn President Donald Trump‘s moves to choke renewable energy sources like offshore wind.
Democratic resistance was only compounded after GOP leadership inserted language to exempt Trump’s efforts to block renewables from provisions in the SPEED Act that would limit the White House’s ability to arbitrarily yank permits it does not like.
The amendment was added after a standoff on the House floor during a procedural vote, where conservatives opposed to renewable energy demanded concessions for their votes.
“That provision codifies a broken permitting status quo,” said Rep. Scott Peters, D-Calif., who supports permitting reform but opposed the SPEED Act.
“I look forward to working with my colleagues across the aisle in the Senate to craft a bipartisan product that can become law.”
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