Expiring EV Tax Credit Provides Tesla A Momentary Gross sales Enhance

Completely happy Monday! It is August 11, 2025, and that is The Morning Shift — your day by day roundup of the highest automotive headlines from world wide, in a single place. That is the place you may discover crucial tales which might be shaping the best way People drive and get round.

On this morning’s version, we’re a peak amidst Tesla’s tumbling, in addition to Mercedes’ puppy-dog eyes to the EU over continued ICE growth. We’ll additionally have a look at the momentary pausing of a lithium mine in China, and an NHTSA investigation into Kia. 

In economics, there’s one thing known as a “useless cat bounce.” When an organization is tumbling down, it will typically have a quick interval the place every thing begins wanting good — the inventory rises, there is a temporary rally to fight the inexorable decline, and folks swear that that is the start of a brand new period. It by no means is. Even a useless cat will bounce as soon as, and so many firms do the identical. In associated information, Tesla — an automaker that is hemorrhaged gross sales month over month, quarter after quarter, in response to its CEO’s meddling in U.S. politics — is exhibiting longer waits for car deliveries because the EV tax credit score attracts to a detailed. From Barron’s:  

Tesla lately elevated its estimated wait instances for its hottest electrical car, the Mannequin Y, to 4 to 6 weeks from a latest vary of 1 to 3 weeks. It is a sign of extra order exercise.

Greater demand is sweet information, however there’s a catch. That is the final quarter patrons can qualify for the federal buy tax credit score value as much as $7,500. That profit was eradicated in President Donald Trump’s tax and spending invoice, handed on July 4.

Nobody is aware of precisely what is going to occur to EV pricing and demand within the fourth quarter when the credit score goes away. Tesla CEO Elon Musk warned of some “tough quarters” forward on his firm’s second quarter earnings convention name, referring to the lack of the credit score at a time when Tesla’s driverless know-how was ramping up.

Does Tesla meet the technical definition for a useless cat bounce? Virtually actually not, provided that the inventory’s been buying and selling comparatively flat since Could. But it surely’s an attention-grabbing comparability on the gross sales facet, seeing a flagging firm out of the blue have an inflow of enterprise. I ponder what number of it has left in it. 

The European Union is trying to ban gross sales of recent internal-combustion vehicles beginning in a decade. It is a very sluggish child step in the direction of preserving the habitability of some quantity of our planet, but for firms that promote internal-combustion vehicles it is past the pale. Take Ola Kaellenius, CEO of Mercedes-Benz, who mentioned the ban wants a “actuality examine. From Reuters:

The CEO of Mercedes-Benz criticised the European Union’s plan to ban CO2-emitting autos from 2035 in a media interview on Monday, becoming a member of a refrain of voices calling the goal into query because it comes up for assessment this yr.

The ban, which supporters say is essential to Europe’s inexperienced ambitions, is up for assessment within the second half of 2025, with critics saying it will handicap European carmakers already combating weak demand, Chinese language competitors and disappointing electrical car gross sales.

“We’d like a actuality examine. In any other case we’re heading at full velocity towards a wall,” Mercedes CEO Ola Kaellenius advised the Handelsblatt enterprise day by day of the 2035 objective, including that Europe’s automobile market might “collapse” if it goes forward.

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“After all now we have to decarbonise, however it needs to be carried out in a technology-neutral method. We should not lose sight of our financial system,” Kaellenius mentioned.

Do not forget that when firms discuss “the financial system,” they imply their very own income. What Kaellenius is saying right here is that maintaining the planet liveable is necessary, however doing so ought to by no means impinge on Mercedes’ potential to rake in that candy candy money. I think about asbestos insulation producers and makers of leaded gasoline in all probability tried comparable traces, and we’re objectively higher off with out these too. You should not get to run roughshod over the planet simply because it makes you, personally, cash. 

Talking of the opposite facet of issues, although, huge battery provider Up to date Amperex Know-how Co. Restricted (CATL) is discovering itself in a little bit of a pinch. It operates plenty of lithium mines, the place it gathers the uncooked supplies for EV batteries, however that quantity simply dropped by one as essential permits expired at one website — the Jianxiawo mine is shuttered, and sure shall be for months earlier than the paperwork might be sorted out. From Bloomberg:

Battery big Up to date Amperex Know-how Co. Ltd. has suspended manufacturing at a serious lithium mine in China’s Jiangxi province for no less than three months, in response to individuals conversant in the matter.

CATL, the world’s largest producer of electric-vehicle batteries, has introduced internally that the Jianxiawo mine can be quickly halting operations, they mentioned. One of many individuals mentioned the suspension got here after the corporate failed to increase a key mining allow which expired on Aug. 9.

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A second particular person briefed on the matter mentioned affiliated refineries in close by Yichun had been knowledgeable of the closure. The primary particular person added the corporate was nonetheless in talks with authorities businesses to safe a renewal however was making ready for the halt to final months. The individuals requested to not be named as they don’t seem to be licensed to talk publicly.

CATL provides batteries to main names like BMW and Mercedes-Benz, and a hitch in its provide chain hurts producers downstream. Hopefully, the corporate can meet demand with lithium from its different minds with out the type of provide scarcity that might skyrocket costs for lithium — and for lithium-heavy electrical vehicles. 

Again in Februaty, Kia recalled 2021 to 2023 Seltos and Soul fashions for a problem with the piston rings. Now, NHTSA is investigating the restore, with the thought that the vehicles may have a spherical of revisions earlier than they’re actually protected and dependable. From Reuters: 

The Nationwide Freeway Visitors Security Administration mentioned it had opened an audit into 137,256 Kia America autos on Friday to evaluate the effectiveness of the automaker’s treatment for faulty piston oil rings in some Seltos and Soul fashions.

In February, Kia America launched a recall of the mentioned Seltos and Soul autos, mannequin yr 2021-2023, over considerations that piston oil rings could have been manufactured incorrectly, which can lead to engine injury inflicting a lack of motive energy or an elevated hearth danger.

(NHTSA administrator voice) You are fortunate that shot of standard gasoline did not blow the welds on the consumption. Now me and the mad scientist gotta rip aside the block, and change the piston rings you fried. (1,000 individuals who all seem like Fred Durst react like that is the largest personal in human historical past.)

We must always all give teenagers just a little extra credit score. 

Someway I’ve by no means used this track as an On The Radio gear, which feels nearly like sacrilege. We’re ignoring that it is 9 years outdated, and that I usually do not want such shock at my very own age this early within the morning.