Down To Business

GM's Cruise License Revoked:

• What happened? We wrote recently about how California suspended Cruise's driverless operations license after an accident where the company's autonomous car dragged an injured pedestrian.
• Why? Cruise misrepresented the accident details.
• Current Status? Cruise is reviewing procedures and is now using safety drivers.

Hertz Scales Back on EVs:

• What happened? Hertz reduces its electric car plans due to high EV repair costs and Tesla's price drops impacting resale value.
• Numbers: Hertz owns 35,000 Teslas, not the 100,000 projected for the end of 2022. Hertz shares fell 10% and Tesla's by 3%.
• CEO Statement: Stephen Scherr cited EV repair costs and market value drops for lower Q3 margins.

Ford's EV Losses Grow:

• What happened? Ford's shares fell 12% due to rising losses in its EV division, driven partly by Tesla's price cuts.
• Other Concerns: Ford retracted its 2023 outlook over potential higher labor costs with the UAW union and reduced EV investments.
• 2nd thoughts: Saying US consumers are unwilling to pay premium prices, the brand is postponing about $12B in EV manufacturing plans, including a 2nd battery plant in Kentucky.
• Numbers: Ford's EV segment had a quarterly loss of $1.33 billion.

Tesla's Model Y Price Increase:

• What happened? Tesla raised the Model Y Long Range price by $500 to $48,990.
• Why? Indicates stronger demand for the SUV.
• Note: This follows Tesla's price cuts for the Model 3 and Model Y earlier in the month. Prices are also adjusted in China.

TL;DR: Cruise cars got a time-out, Hertz isn't feeling the electric buzz as expected, Ford's EVs seem to be short-circuiting, and Tesla's Model Y is now a hot (and slightly pricier) ticket!