News: Prices Dip and Polestar Production Begins

Prices Dip and Polestar Production Begins

Overall Market Trends

In July 2024, the U.S. auto market saw a dip in average transaction prices (ATP) for new vehicles, settling at $48,401 — down marginally from June and 3.1% lower than the peak in December 2022. This follows a increase in inventory levels, which rose by 52% year-over-year to 2.91 million vehicles.

Incentives on the Rise

Incentives played a crucial role in stabilizing the market, with average incentives reaching 7.0% of ATP, or $3,383, the highest level in over three years.

Deets:

• Compact and Subcompact SUVs:
  • Accounted for 25% of July's sales.
  • ATPs: $36,621 (Compact) and $29,827 (Subcompact).
• Full-Size Trucks:
  • Maintained strong demand, making up 14% of sales in July.
  • ATP: $65,713.
  • Notable Models: Ford F-Series and Chevrolet Silverado, both with ATPs exceeding $60,000.

EV Market Dynamics

The electric vehicle market presented a mixed picture in July. While the overall average price for EVs dropped by 1.5% year-over-year to $56,520, Tesla bucked the trend with an 11% increase in its ATP, reaching $59,593.

• Tesla's Performance:
  • Cybertruck: Contributed to the rise in ATP, with prices over $100,000.
  • Model 3 and Model Y: Continued price increases since January, with July ATPs at $53,878 and $52,055, respectively.
• EV Incentives:
  • EV incentives soared to over 12% of ATP—74% higher than the industry average.
  • This marks the highest level of EV incentives in over three years.

EV prices are coming down, but are profits going up? You know, maybe like…above $0?

Polestar Begins U.S. Production

Swedish EV maker Polestar has started producing its Polestar 3 SUV at Volvo's South Carolina plant, aiming to sidestep tariffs on Chinese-made cars.

U.S. deliveries are set to begin next month.

In the first half of 2024, Polestar sold 3,555 Polestar 2 sedans in the U.S.

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UAW Vs. Trump/Musk

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UAW Takes Legal Action Against Trump and Musk
The United Auto Workers has escalated its battle for workers' rights by filing federal labor charges against Donald Trump and Elon Musk. The charges allege that both figures have publicly endorsed illegal practices aimed at dismissing workers who threaten to strike—a violation of federal labor law.

Controversial Comments Spark Outrage
The legal action follows a recent interview between Trump and Musk, where Trump openly praised the idea of firing employees involved in strikes.

Tensions in the Presidential Race
This legal confrontation comes at a critical time, as Trump seeks to garner support from labor unions in his bid for the presidency.

However, the UAW has already thrown its weight behind Vice President Kamala Harris, creating a clear divide in the labor landscape.

Broader Implications for Labor Rights
As the 2024 presidential race heats up, the outcome of these charges could have far-reaching implications for labor relations and the future of workers' rights in the United States.

Nissan Dealer Profits Plummet

Nissan dealerships are facing severe financial strain, with profits down 70% compared to 2023, reaching the lowest point in 15 years.

Nearly 38% of Nissan's U.S. dealerships are currently losing money, attributed to a lack of hybrid offerings and an oversaturated market.

To regain stability, Nissan plans to introduce hybrid models by 2027 and may reduce its dealership network by up to 40%.

Rivian Adds Apple Music, Plans Charging Enhancements

Rivian has rolled out an update allowing Apple Music to have spatial audio on its EVs, though it lacks CarPlay support. To access these features, drivers need a Connect Plus subscription at $14.99/month or $149.99/year, with a two-month free trial now available.

Additionally, Rivian's upcoming R2 SUV, launching in 2026, will feature a relocated charge port to better align with Tesla's Supercharger network.

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