Latest news with #EV-friendly
Yahoo
06-06-2025
- Automotive
- Yahoo
Tesla's largest EV plant in the world suffers eighth straight month of declining demand as May sales sink 15%
Outbound volumes from Tesla's GigaShangai factory, which includes exports, sank 15% in May. The drop follows similarly bleak figures out of most of Europe. Although Tesla is increasingly viewed as an AI company, roughly three-fourths of its revenue and gross profit come from selling cars. With two-thirds of the second quarter now in the books, the chance Tesla's EV sales could rebound from its terrible start to the year is swiftly waning. On Thursday data continued to pour in from across the world showing demand for Elon Musk's cars is shrinking in most major markets. One sign of that emerged out of China, where aggregate sales of EVs made in Tesla's largest manufacturing plant worldwide suffered an eighth straight month of declines. According to China's CPCA industry association, outbound volumes from its GigaShangai factory, including exports, sank 15% in May to 61,662 vehicles. It follows similarly bleak figures out of most of Europe. Tesla may have successfully rebranded itself as an AI and robotics company in the eyes of investors, but EV sales still matter because they pay the bills. Its core business accounted for 72% of both revenue and gross profit in the first three months of this year, when volumes dropped to their lowest level in three years. Yet just as sales are crashing, the stock is paradoxically ballooning, with the price rallying by a third since April's terrible Q1 earnings. At $1 trillion, Musk's company is now the ninth most valuable company in the world, worth more than the next 15 largest global carmakers combined. Multiples well above 100 times next year's consensus earnings estimates, like Tesla's, are typically reserved for companies about to see stratospheric earnings growth. In this case, it reflects optimism that Musk is poised to capture Uber and Lyft's ride-hailing market with its robotaxi service scheduled to roll out in the second half across much of the United States. Yet there is no evidence its driverless technology already matches, let alone outperforms, autonomous vehicle leader Waymo, and one well-known Tesla bull sold the remainder of his stockholdings as a result. Citing valuation 'disconnected from underlying fundamentals', Future Fund money manager Gary Black said late last month he exited his position for the first time since 2021 given the risks are firmly to the downside. There are a few bright spots for Tesla car sales, like Norway, the world's most EV-friendly country, that remains loyal to the brand. Australia, a key market where Tesla must compete directly with Chinese brands for western consumers without the help of steep tariffs, likewise saw a 9% gain in May amid soaring demand for the refreshed Model Y. But these individual data points are not reflective of the broader Tesla trend. In most other parts of the world, the picture looks radically different. On Thursday, the United Kingdom followed Germany with an identical 36% decline in Tesla registrations for last month. That leaves Tesla EV sales trackers such as TroyTeslike, one of the most reliable, warning Q2 will likely see a drop of 11% to 395,000 cars in a best-case scenario for Tesla. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Automotive
- Yahoo
New York lawmakers are moving to shut down Elon Musk's Tesla sales across the EV-friendly state
New York Democrats are hoping to push through a statewide bill that could strip Tesla of its right to sell cars directly to customers in retaliation for CEO Elon Musk's support of the Trump administration. The chances are favorable, since the party controls both the legislative and executive branches of the state government. Of the more than 172,000 fully electric vehicles currently registered in New York, every second one is a Tesla. Democratic lawmakers in New York are attempting to eliminate a waiver that allows Tesla to sell cars in the EV-friendly state there in retaliation for CEO Elon Musk's backing of the Trump administration. In 2014, the state government in Albany banned automakers from bypassing conventional car dealers to sell directly to customers. Out of the entire car industry, Tesla was granted the sole exemption, which let it grandfather in five stores. Now, state Democrats are questioning that move. 'Why should we give them a monopoly?' state senator Patricia Fahy said, according to a report The New York Times on Sunday. Co-sponsor of a bill currently moving through both houses of the state legislature, Fahy called Musk 'part of an administration that is killing all the grant funding for electric vehicle infrastructure, killing wind energy, killing anything that might address climate change.' New York, whose legislature and executive are both controlled by the Democrats, is one of handful of EV-friendly states across America. The government in Albany has set out a target to hit 100% zero-emission new vehicle sales by 2035 in the state, the country's fourth largest by population. Tesla, whose customers would likely be forced to go out of state to accept receipt of a car at one of its other delivery centres, could not be reached by Fortune for comment. Fahy's bill is the latest repercussion from the bitter falling-out between the Democratic party and the Tesla CEO during the Biden administration. In the course of the post-pandemic inflation wave, Musk's wealth and anti-union politics made him a target for a party looking to reconnect with its working class supporters. In response, the enraged entrepreneur dropped a quarter billion of his own fortune to support the president's campaign, despite Trump's longstanding opposition to the EVs and renewable energy storage that have been the hallmark of Tesla's business. For decades vehicles like a Chevrolet Silverado manufactured by General Motors have been distributed wholesale to dealers, who then marked them up in price and sold them for a small profit. These independent retailers maintained the relationship with the customer at all times, leaving carmakers to focus on areas like engineering and branding. Thanks to the influence of dealers in their local communities, America's heavily fragmented automotive retail market traditionally has prohibited carmakers from bypassing their distributors to sell directly to consumers. This hadn't been an issue for most car manufacturers in the past, since going direct to consumers would have hurt their margins when cars were mainly analog. Tesla took a different approach from the outset, eschewing independent dealers entirely. Musk recognized that cloud computing opened up all new business models only available if a brand owned the relationship with the customer and was free to mine their digital profile for clues about what owners might need or want. Its entire full self-driving software, the foundation for its upcoming robotaxi pilot, would not be possible without drivers sharing their data over many years to help it refine its AI model. Under Lahy's plan, the exemption from franchise laws could be forfeited in favor of brands like Rivian, Lucid and Volkswagen's upcoming Scout, which are all relying on a similar direct-to-consumer sales approach. Now Lahy says she is 'making amends' for being wrong about Musk in the past, when she had supported Tesla's original mission to advance sustainable transportation. The Empire State is a key market for Tesla. Most EVs tend to be sold in warmer climates like southern California, Texas and Florida, where temperatures are more forgiving for battery ranges. New York is one of a few northern states to champion EVs—over 172,000 are already on state roads, and half are Teslas. If Lahy and her colleagues succeed, restricting Tesla's ability to compete in New York could deliver a sensitive blow at a time when the company is losing ground to archrival BYD. Last week, Tesla reported first-quarter results that revealed a group operating margin of 2.1%, its worst since the second quarter of 2019. Underlying profitability at its core car business fell to its lowest level since the launch of the Model Y first turned Tesla into a trillion dollar company on the stock market. This story was originally featured on
Yahoo
17-03-2025
- Automotive
- Yahoo
California's carpool lane perk for EVs nears the end of the road
The federal law that enables California's electric vehicles to use the high-occupancy vehicle lane without passengers is set to expire, spelling a likely end to a popular incentive amid broader attacks on EV-friendly policies. The change will come at a time of political polarization around clean transportation and as President Donald Trump's administration proposes eliminating other electric vehicle incentives such as the individual $7,500 EV tax credit. The federal statute says public authorities can allow use of carpool lanes by single-occupancy vehicles meeting certain conditions until Sept. 30. California legislators want to extend the window, but lawmakers in Washington, D.C., have yet to introduce a bill or otherwise move to authorize an extension. California allows certain vehicles, including EVs, to use the high-occupancy vehicle lane without passengers. The table below illustrates the program's popularity over the years as it is set to expire in September. Total decals issued 2019 98,634 2020 59,173 2021 84,493 2022 118,750 2023 128,122 2024 194,486 Total 683,658 Source: California Department of Motor Vehicles Republican State Assemblymember Greg Wallis, who authored the bill to extend the HOV lane rule in California, called it a 'key incentive.' 'Many California auto buyers purchase ZEVs to access HOV lanes,' he said in a statement. 'I strongly encourage the Trump administration to extend the program to keep our transportation transition moving in the right direction.' In 2024, the state's Department of Motor Vehicles issued 194,486 stickers allowing cars to use the HOV lane with single occupancy through the Clean Air Vehicle decal program. That's a 52 percent increase from 2023's 128,122 decals. The popularity of the program paradoxically undermines its efficiency. As more vehicles are able to use the HOV lane, it becomes more crowded, eroding the incentive for both clean-air vehicle drivers and those making a concerted effort to carpool. 'You're going to reach some point where you've exhausted that excess capacity,' said John Swanton, an air pollution specialist with the California Air Resource Board's communications office. 'We're not at the point where, no matter what we do, it's totally exhausted, but the challenge to our legislature is how to keep this a meaningful incentive.' The 1998 Transportation Equity Act for the 21st Century allowed states to permit a vehicle with fewer than two occupants to operate in the HOV lane if the vehicle is 'certified as an inherently low-emission vehicle.' That law enabled California to create its decal program in 1999, which was designed to incentivize the adoption of new technologies. 'This has been absolutely instrumental,' Swanton said. 'It was a tool used to essentially promote more rapid adoption of those technologies and it did it by utilizing excess capacity in the HOV lanes.' Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. There have been several versions of the decal program, with different powertrain requirements for eligibility. Now, qualifying vehicles must be 100 percent electric or hydrogen-fuel cell vehicles, plug-in hybrids that meet certain conditions or compressed natural gas vehicles that meet certain conditions. The federally granted state authority to use the HOV lane to encourage clean transport expires in September. Wallis, the California lawmaker, authored a bill that extended the state program until Jan. 1, 2027 ― pending extended federal authorization. There are several considerations for extending the federal law. Those in favor say it would continue to incentivize zero-emissions vehicles at a key moment for the energy transition. Sales for EVs are still growing, but at a slower clip than in years past. 'It would provide a small but an additional incentive to support the growth of the zero-emission vehicle market,' said John Boesel, CEO of CALSTART, a nonprofit focused on clean transportation. However, the inclusion of clean-air vehicles in the HOV lane does not motivate carpooling to reduce congestion overall, which is the true purpose of the lane. There are other ways the state can leverage HOV lanes to reduce congestion and pollution ― for example, by charging a toll for use of the lane that can fund other transportation programs. The decal initiative would also require a federal extension when policies encouraging EV adoption are under threat. The Republican-led Congress has introduced a bill to eliminate the individual $7,500 EV tax credit. California's EV policies are of particular import to Republicans because the state has a waiver from the EPA to write its own, stricter greenhouse gas emissions standards. Critics say this creates a system of dual regulations for automakers. House Majority Leader Steve Scalise of Louisiana has identified eliminating the California waiver as a priority for the legislature. 'The general consensus is that this is not going to be a deal-breaker' if the incentive is not extended, CARB's Swanton said. 'Nowadays, the number of folks that only buy [a qualifying vehicle] because they have this carpool incentive is pretty small.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
The Independent
22-02-2025
- Automotive
- The Independent
The tax change every electric vehicle owner needs to know about
Electric vehicle drivers, long accustomed to tax exemptions, face significant changes in 2025. Starting April 1st, alterations to Vehicle Excise Duty (VED) will impact thousands as electric car ownership continues to rise. Drivers of electric vehicles haven't had to pay any tax on their cars for many years, but in 2025 that is set to change as several wide-sweeping tweaks come into force. But what should drivers of electric vehicles expect and what is the change in terms of cost? Here, we explain what's on the horizon. What is the current state of tax for electric vehicles? At present, electric vehicles incur no cost for VED. Though drivers don't have to pay anything, they still have to get their vehicles taxed, going through the usual process that you might with a 'regular' car. Electric vehicle registration numbers have continued to rise, too, with the Society of Motor Manufacturers and Traders showing a 41.6 per cent rise in the number of new EVs registered during January 2025. Only completely electric cars are free-to-tax, though some extremely low-emission hybrids also qualify but only those produced between 1 March, 2001 and 31 March, 2017. What's changing in 2025? As of April 1, 2025, things are set to change for electric vehicles. For the first time, drivers of electric vehicles will be required to pay VED, representing a significant hike in the cost of ownership. Plus, a new Expensive Car Supplement will see buyers of electric vehicles costing over £40,000 paying as much as £620 a year in tax. For electric, zero or low emissions vehicles registered on or after April 1, 2025, drivers will have to pay the lowest first-rate of tax – £10 – but from the second tax payment onwards, this will rise to the standard rate of £195 a year. Electric, zero or low-emission cars registered between April 1, 2017 and March 31, 2025, will now pay the standard rate of £195. In contrast, EVs registered between March 1, 2001 and March 31, 2017, will move to the first band that has a VED value, meaning a tax payment of £20. Electric vehicles have also – up until this point – been exempt from the Expensive Car Supplement, but that all changes from April 1 with cars registered on or after this date are now liable for the additional cost. What does that mean? Well, drivers of EVs costing over £40,000 will have to pay a standard rate alongside an additional supplement for the first five years from the start of the second payment. For many, this means many owners of an EV over £40,000 will pay £620 per year in road tax. Will electric vehicles still prove cheaper to run than petrol and diesel cars? These tax changes put a dent in the overall affordability of running an electric vehicle but, in many areas, they should still prove relatively inexpensive to run. Much of this depends on whether or not an owner is able to access home charging as, with this, they can take advantage of super-low electricity rates offered by EV-friendly tariffs. For an average EV, this could mean a full charge bringing around 200 miles of range for as little as £5. It's a different story if you can only use public charging, however, where costs are considerably higher. Electric vehicles do require less maintenance than an equivalent petrol or diesel car, too, since there are fewer moving parts. That said, EVs still need regularly checking over to make sure that key components are still working as required and consumables such as tyres, wipers and brake pads will still need to be replaced.
