News: The US, Automakers, and China

Detroit, Honda, Toyota, Rivian, and China.
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News: The US, Automakers, and China

I live in Tennessee, and a common expression I am sure you've heard in your state is, "Don't like the weather? Wait 5 minutes." Politics seems to have a similar vibe, just much slower, like everything else about politics.


The U.S: Minerals, Batteries, and Grants

The White House has added more flexibility to the EV Tax credit rules in the Inflation Reduction Act. Automakers will have more flexible rules regarding battery mineral sourcing.


  • Difficult-to-trace minerals like graphite will be able to be sourced from China until 2027, but prevalent minerals like lithium, nickel, and cobalt face restrictions effective January 2025.
  • Only EVs with minerals sourced from non-FEOC (Foreign Entities of Concern) countries are eligible for the $7,500 tax credit.
  • Final rules are expected to reduce eligible EV models from 114 to 13 for full credit and 9 for half credit, with income limits and manufacturing rules applying to buyers.
  • Dealerships can offer instant rebates on EV purchases, and leased EVs also qualify for the full tax credit.

In Detroit specifically, the administration has made $100M in grants available to small and medium auto part makers for efficiency and eco-friendly upgrades. $50 million will be from the Department of Energy's Automotive Conversion Grant, and another $50 million from the Department of Energy's Industrial Assessments Center Implementation Grants.

Automakers: Who's Doin' What?

Honda's Smashing April

Honda has kicked off 2024 with robust April sales, selling over 116,000 units.

  • Honda brand sales surged by 15.7% YoY, surpassing 106,000 units, with electrified vehicle sales exceeding 21,000 units.
  • Acura brand records over 10,500 units sold, bolstered by strong SUV sales.

📈 At the time of writing, Honda Motor Co Ltd is up 0.71% in the market.


Toyota's Tundra

Toyota is delving into hydrogen fuel cells for Tundra-sized pickups, aiming for extended range.

  • Fuel cells may offer benefits over traditional battery-powered pickups, with the company showcasing fuel cell Tundra and Hilux prototypes.
  • Tests with fuel-cell-equipped semi-trucks show promising results.

📈 At the time of writing, Toyota Motor Corp is up 0.80% in the market.


Rivian's Plant Plans

Rivian secures an $827 million incentive package from Illinois for plant improvements, with plans to increase capacity and produce the R2 SUV.

  • The company reaffirms its commitment to the Georgia plant, showcasing various models since 2021.
  • Rivian's Normal facility has produced over 100,000 electric vehicles since 2021.

📈 At the time of writing, Rivian Automotive Inc. is up 1.04% in the market.

China: Gas vs. EV

China is home to the world's largest passenger vehicle market, as more of the country switches to electric vehicles, fuel demand is changing. That's "Fuel Demand", not just "Chinese Fuel Demand", but globally.

Fuel demand in China is expected to drop by half in 2024 in alignment with EV adoption, while the US fuel demand is projected to remain flat for the year. With so much market for fuel vanishing, fuel makers will adjust production to protect supply, therefore controlling demand and in turn, profits. So don't buy that gas cabinet just yet.

Gas Cabinet: It’s a cabinet full of gas

Speaking of China, GM had significant Q1 losses in the Chinese market. It is just the third time in 15 years that automakers have had a down quarter in the market. While the company is committed to China for now, mounting geopolitical tension and ever-increasing competition in the market could eventually see GM bail on China.

📈 At the time of writing, General Motors Co. is up 0.81% in the market.


Remember y’all: At any time, an industry has two main types of threats: Competent enemies and incompetent friends.

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