Taking Control of Monday

Monday! Time to talk about some things that will shape the news we watch this week and beyond. We doubt These SEC and DOJ stories will vanish soon, gas-bans neither.

But then, Tesla cutting production and Toyota releasing a Prius is the sort of stuff that happens all the time. So we got a bit of both today. And also a picture of a cheese car.

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iMonopoly?

Two possible court cases to watch from our corner of the world. One says Tesla (Why is it always Tesla?) has a bunch of yes-men on the board. And the other brings Apple's CarPlay into the monopoly accusations Apple is facing.

1. Sen. Elizabeth Warren has urged the SEC to probe Tesla for violations of board independence rules. Concerns include board members' close ties to Musk and substantial stock options, raising questions about their independence and the board's transparency with investors.
2. The U.S. Department of Justice has filed an antitrust lawsuit against Apple, alleging CarPlay exerts excessive control over the auto industry, stifling competition. The DOJ claims Apple's integration of CarPlay into vehicle functions represents monopolistic behavior, impacting consumer choice and competitor innovation.

Toyota Prime

Toyota's Prius Prime has 44 miles of pure-electric range and a massive 127 mpg after the battery runs out. Morot1's article says it pretty much makes all EV conversations obsolete.

• 220 horsepower on the hybrid side.
• Priced from $34,495.
• The 600-mile range before needing to refuel/recharge.
• And of course, a nifty aerodynamic design that progresses vehicles another step toward the ideal "cheese-wedge" shape.

Chinese Downturn

Tesla also just trimmed its Chinese production projection following a slowing demand report. Or MAYBE they heard Toyota declared itself the victor of the EV wars with its gas-powered hybrid?

The Giga Shanghai plant will reduce Model 3 and Model Y production from 6.5 days a week to just 5. The announcement follows a 19% drop in Made-in-China Tesla sales for Feb 2024 compared to 2023. Even BYD experienced the downturn, and they are the global leader in EV sales as well as being local to China.

Used Cars New Normal

People keep warning us that things may "never go back to pre-pandemic levels," and at this point, we will just assume that and ask the experts to speak up when they find something that WILL.

• New car prices in February were down 2.2% year-over-year but remain 14% higher than in February 2021, signaling a shift to a "new normal" in pricing.
• Technological advances and higher labor costs contribute to sustained high prices, with even minor repairs becoming significantly more expensive.
• Used cars also maintain higher price points due to a pandemic-induced production drop, limiting availability.
• However, 2024 offers a glimmer of hope with expected incentives and potential interest rate cuts, making it a potentially favorable year for car buyers.

EU Vs. Auto

Some European automakers are criticizing the EU's ambitious emission targets. BMW, VW, and Renault say a full ban on ICE cars by 2035 is too much, but even the 2025 deadline for reducing fleet emissions by 25% is coming quickly and impossible.

The automakers say the fines imposed for missing deadlines would punish companies for slow consumer adoption and create unneeded difficulty and imbalance for companies looking to do business in Europe.  

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“Back in my day” jokes don’t land the same when you’re talking about 3 years ago. Just kinda stings, like used inventory prices.