Latest news with #ChrisMcNally
TimesLIVE
2 days ago
- Automotive
- TimesLIVE
Why China's car and tech giants threaten Tesla's self-driving future
'God's Eye' on the cheap Chinese EV makers are moving quickly to develop driver-assistance systems in a market where car buyers are demanding them at a faster pace than in other regions, analysts said. Their ability to do so at lower costs poses the biggest threat to Tesla's new autonomy-based business model. BYD buyers can get an FSD-comparable version of God's Eye as a standard feature in cars priced at about $30,000 (R532,220). The cheapest FSD-equipped Tesla in China is a Model 3 selling for about $41,500 (R736,210). According to an analysis by A2MAC1, a Paris-based tear-down firm that benchmarks components, the mid-level God's Eye version most comparable to Tesla's FSD runs on an Nvidia computing chip with data collected through 12 cameras, five radars, 12 ultrasonic sensors, and one lidar sensor, at a cost of $2,105 (R37,342). That compares to $2,360 (R41,863) for Tesla's FSD, which uses cameras without sensors and two AI chips, the firm estimated. Cameras, radar and ultrasonic sensors are 40% cheaper in China than comparable devices in Europe and the US, A2MAC1 estimated. Lidar sensors cost about 20% less, the firm said. Sensor costs have fallen because China's EV boom created economies of scale, said A2MAC1 engineer Elena Zhelondz. The fierce competition also pushed carmakers and suppliers to accept lower profits on driver-assistance equipment, she said. BYD's 22% gross margin will likely fall as it gives away God's Eye but it will benefit from a vehicle sales boost, said Chris McNally, head of global automotive and mobility research for advisory firm Evercore.
Axios
27-03-2025
- Automotive
- Axios
The surprising winners and losers from Trump's auto tariffs
President Trump's tariff hike on imported vehicles is poised to shake up the American auto industry and bludgeon car buyers. Why it matters: Every new vehicle sold in the U.S. will be affected. Almost half of vehicles sold in the U.S. are assembled elsewhere — and there are no models sold here that are built purely with U.S.-made parts. Every car has at least 20% foreign-made components, according to the Department of Transportation. Catch up quick: Trump on Wednesday announced 25% tariffs on autos and auto parts, arguing it'll create an incentive for car companies to produce vehicles in the U.S. Critics say consumers will pay the price as automakers pass along the extra costs. Here's a breakdown of who's poised to win and lose if and when the tariffs take effect: Winners: Auto parts retailers: Autozone and O'Reilly Automotive were among the S&P 500's biggest gainers Thursday as investors bet that car owners will opt to repair their vehicles more often instead of buying new ones. Dealerships: Dealers make most of their money on repairs. Plus, higher vehicle prices will be absorbed by automakers, not dealers. Efforts to entice foreign automakers to build here: Volvo and Volkswagen are among the automakers weighing plans to build more vehicles in the U.S. to avoid the tariffs. Losers: New-car buyers: Automakers are likely to raise prices by an average of $3,000 to $4,000 per new vehicle, Evercore ISI analyst Chris McNally estimates. But some vehicles could face significantly higher price tags: Imports from Japan, South Korea and Europe are headed for price increases of an estimated $9,375, he projected. U.S. vehicle exporters: Automakers that assemble vehicles in the U.S. for shipment to other countries will be impacted by retaliatory tariffs. Ford, General Motors, Toyota, BMW, Honda, Mercedes and Tesla are among the companies that export U.S.-built vehicles to other countries. Suppliers: Automakers will likely pressure their biggest suppliers to absorb some of the costs — and those suppliers will likely pressure their suppliers in a cascading effect that will probably hurt the smallest companies the hardest. The auto industry: As suppliers buckle, carmakers could be forced to suspend production for missing parts. Meanwhile, higher costs from tariffs could mean less money for R&D, causing automakers to fall behind faster-moving Chinese competitors.
