Good morning! It’s Monday, November 11, and that is The Morning Shift, your day by day roundup of the highest automotive headlines from world wide, in a single place. Listed here are the necessary tales it is advisable to know.
1st Gear: Tesla Inventory Hits $1 Trillion Market Cap
Tesla’s market cap has surpassed $1 trillion following former President Donald Trump’s election victory on November 5. It rallied 29 p.c following Tuesday’s end result. That ought to put the “Is Tesla a meme inventory” debate to relaxation as soon as and for all, even when CEO Elon Musk is slated to play an enormous half in Trump’s second administration.
Following November 5’s shut, Tesla had a market cap of $807.1 billion. On the time of scripting this story, that quantity is now $1.01 trillion. Earlier than final week’s huge rally, shares of the carmaker had been up about 1 p.c on the 12 months. That quantity is now 30 p.c 12 months up to now. From CNBC:
Tesla rejoins a rising membership of tech names that are actually price greater than $1 trillion, together with Nvidia , Apple , Microsoft , Alphabet , Amazon and Meta (although all however Meta are price greater than $2 trillion). Tesla’s market cap first crossed the $1 trillion mark in October 2021.
Wedbush Securities analyst Dan Ives has mentioned {that a} potential Trump administration might spell much less regulation for Tesla and different firms.
“Tesla has the dimensions and scope that’s unmatched within the EV trade and this dynamic might give Musk and Tesla a transparent aggressive benefit in a non-EV subsidy setting, coupled by doubtless larger China tariffs that may proceed to push away cheaper Chinese language EV gamers (BYD, Nio, and so forth.) from flooding the U.S. market over the approaching years,” Ives wrote in a observe to purchasers this week.
Trump has mentioned beforehand he might lower the federal $7,500 electrical automobile tax credit score. These credit have helped to drive gross sales of Tesla autos traditionally.
Tesla posted income of $25.18 billion and a web revenue of $2.17 billion within the third quarter of 2024. Through the earnings name, Musk mentioned his “finest guess” was that “automobile progress” would hit 20 or 30 p.c in 2025. He pointed to “decrease value autos” and the “creation of autonomy” as driving forces behind his prediction. I suppose we’ll see.
Tesla has been promising, and creating, driverless automobile expertise for greater than a decade. Its key U.S. competitor, Alphabet-owned Waymo, has pulled forward and is already working business robotaxi providers in a number of main cities.
On the third-quarter name, Musk mentioned he would use his sway with a Trump-Vance administration to determine a “federal approval course of for autonomous autos.” At present, approvals occur on the state degree, which the CEO sees as a regulatory hurdle Tesla might want to overcome as soon as it lastly provides greater than partially automated driving methods.
No matter, man. They received. This shit sucks. Allow them to notice Elon is simply making shit up on their very own.
2nd Gear: Price Slicing Coming To Lucid, Rivian
Each electrical automobile startups Lucid and Rivian make some actually good automobiles, however they’ve obtained a bit of little bit of a money burn drawback. Each misplaced cash on each automobile they delivered within the third quarter, which isn’t nice.
Rivian reported a $1.1 billion web loss in Q3 on $874 million in income after gross sales fell. Lucid’s gross sales really improved within the quarter, however its web loss widened to $950 million on $200 million in income. From Automotive Information:
The EV makers are anticipated to burn via billions of {dollars} as they develop extra inexpensive midsize crossovers for 2026 that can decrease the entry worth into the manufacturers from round $70,000 with delivery for present fashions to round $50,000 for the crossovers which might be nonetheless about two years from manufacturing.
Analysts say Rivian and Lucid have to rein in prices if they’re ever to change into worthwhile. As well as, they warn that the reelection of former President Donald Trump on Nov. 5 might convey diminished assist for electric-vehicle incentives that go to the automakers and to the shoppers who purchase their merchandise.
“We anticipate that the transition to electrical autos within the U.S. will likely be hindered underneath Trump’s administration,” GlobalData mentioned in a Nov. 6 analysis observe. Trump’s regulatory adjustments “might result in a 15-20 p.c lower out there share of battery electrical autos within the U.S. by 2030 in comparison with our base forecast.”
Financial institution of America downgraded Rivian inventory to a impartial score from purchase after the third-quarter earnings report, citing the potential lack of regulatory credit from EV gross sales underneath a Trump administration. EV makers can promote these credit to trade counterparts who don’t meet emissions requirements.
“We’re making actual significant progress when it comes to reducing our invoice of supplies, reducing our value construction,” mentioned Rivian CEO RJ Scaringe on the third-quarter earnings name Nov. 7. “In a similar way, we’re additionally driving effectivity into how we’re operating the plant. So the hours per unit that we construct is coming down.”
In a bit of excellent information, Rivian expects to attain a gross revenue within the fourth quarter of this 12 months. That’ll partially come via the sale of regulatory credit for about $275 million, in response to the corporate, however hey, each little bit helps.
Within the third quarter, Rivian’s gross loss per automobile delivered rose to $39,130 in contrast with $30,648 within the year-earlier interval, it mentioned. These numbers will enhance within the fourth quarter because of Rivian’s cost-cutting applications for its R1T pickup and R1S crossover, Scaringe mentioned on the earnings name.
Rivian mentioned it had money and money equivalents of $5.4 billion on the finish of the quarter. It additionally has a $5 billion funding from Volkswagen Group as a part of a three way partnership that’s anticipated to shut earlier than the top of the 12 months, Scaringe mentioned.
Third-quarter deliveries for the Irvine, Calif., automaker fell 36 p.c to 10,018 autos, and output dropped 19 p.c to 13,157, the corporate mentioned. Rivian is affected by a components scarcity that began within the third quarter that has restricted electric-motor manufacturing, it mentioned.
Lucid has its personal world of points to cope with as effectively.
Lucid reported a 91 p.c improve in third-quarter gross sales to a report 2,781 for its sole mannequin, the Air sedan. The Newark, Calif., automaker’s manufacturing elevated 16 p.c to 1,805 autos.
Much like Rivian, Lucid is targeted on value slicing to enhance its funds after elevating $4 billion this 12 months to assist its loss-making operations. These embody the beginning of manufacturing of its first crossover, the Gravity, this 12 months and the event of the midsize mannequin that’s scheduled for manufacturing in late 2026.
Lucid vastly expanded its Casa Grande, Ariz., manufacturing unit this 12 months for manufacturing of the Gravity and introduced extra of its manufacturing in-house to cut back prices, CEO Peter Rawlinson mentioned on the Nov. 7 convention name.
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In its third-quarter earnings report, Lucid mentioned money and money equivalents stood at $1.89 billion, in contrast with $1.35 billion within the previous three-month interval. In October, Lucid introduced it was elevating $1.75 billion extra via a public providing and a non-public placement of shares.
Fortunately for each nascent automakers, they each say they’ve obtained sufficient financing to fund initiatives into 2026. That’s a very good factor, as a result of Lucid and Rivian make a few of the most compelling merchandise in the marketplace proper now.
third Gear: Jaguar EV Idea Coming Subsequent Month
Jaguar is about to unveil a brand new idea automobile in Miami on December 2 that’ll give a glimpse of the primary new mannequin underneath JLR’s technique to reposition the British model as a luxurious EV maker.
It’s going to be proven the night time earlier than Miami’s Artwork Week kicks off. JLR says the primary mannequin to be launched on its new JEA Jaguar-specific electrical platform will likely be a “four-door GT,” so I suppose we should always look out of some kind of quick sedan. That’s excellent news, as a result of Jaguar is excellent at quick, handsome sedans. The automaker additionally mentioned it is going to be a “copy of nothing.” From Automotive Information:
Jaguar will now launch the mannequin in late summer season 2026, CEO Adrian Mardell mentioned on an earnings name on Nov. 8. Final 12 months JLR mentioned the Jaguar EV could be launched in 2025.
Mardell advised journalists that the corporate was being cautious on timing because it monitored demand for electrical automobiles. “BEV adoption is trying a bit of bit weaker and extra inconsistent than would have been 12 months in the past,” he mentioned.
The U.S. and the U.Ok. will likely be key markets for the automobile, Mardell added. The U.Ok. is without doubt one of the best-performing world EV markets, with a share rising to 18 p.c within the 10 months to the top of October.
Demand for electrical automobiles within the U.S. has been thrown into uncertainty with the election of Donald Trump to the presidency. Trump has promised to roll again some EV incentive applications, though he counts Tesla CEO Elon Musk as an necessary ally.
JLR is monitoring the uptake of EVs because it plans the timing of the second and doable third fashions on the JEA platform in addition to these automobiles on the corporate’s new Electrified Modular Structure, or EMA, platform for smaller Vary Rover fashions.
No matter Jaguar goes to do sooner or later, it higher be rattling good. It’s a type of manufacturers I’ve at all times beloved, and it’s a goddamn disgrace to see it within the form its in as we speak.
4th Gear: Cadillac XT4 Manufacturing Ends In January
The gas-powered Cadillac XT4 has an official expiration date as GM says the compact crossover will finish manufacturing in January of 2025 on the firm’s Fairfax Meeting plant in Kansas. It coincides with the top of the Chevy Malibu’s manufacturing on the similar plant. Don’t fret, Fairfax fans. GM is investing $391 million on the plant to make the brand new model of the Chevy Bolt in late 2025. From the Detroit Information:
“Basic Motors is assured in our robust ICE and EV portfolio and can lean into progress alternatives guided by buyer demand,” GM spokesperson Kevin Kelly mentioned in an announcement. “There isn’t a change to our beforehand introduced $391 million funding and staffing plans at Fairfax Meeting. This facility will proceed to play a crucial position in GM’s future with the brand new Chevrolet Bolt EV. “
GM plans to convey a shift again to Fairfax in October 2025 forward of the beginning of Bolt manufacturing, in response to a plant memo despatched to workers that was obtained by The Detroit Information. The automaker is anticipating a return of the second manufacturing shift within the first quarter of 2026, in response to that memo.
GM will likely be briefly shedding 686 United Auto Staff-represented workers when Malibu manufacturing ends and about 759 extra in January when the XT4 ends, in response to the memo.
GM initially deliberate to finish XT4 manufacturing in January after which resume it in mid-2025 however pulled again on these plans. Cadillac has three extra EVs coming: the Escalade IQ, the Optiq SUV and the Vistiq three-row SUV. It already has Cadillac Lyriq SUV and the hand-built Celestiq, an ultra-luxury automobile.
“Cadillac will provide our most complete portfolio ever in 2025 with twelve fashions and a mixture of ICE and EVs,” Kelly mentioned. “The present lineup meets the necessity of just about each luxurious buyer with an providing in most main segments. In simply over a 12 months, Cadillac has launched six new merchandise which is able to assist us preserve our momentum.”
XT4 manufacturing began within the fall of 2018 for the 2019 mannequin 12 months. By Q3 of 2024, Cadillac offered 15,688 of the little crossovers. That’s down 12 p.c from final 12 months. So lengthy, little man.
