To The Point

November Reports

Ford's US Vehicle Sales in November:

• Sales Decline: Ford reported a 0.5% drop in US vehicle sales in November, with a total of 145,559 vehicles sold, slightly down from 146,364 units last year.
• Strike Impact: A recent strike, which ended with a deal with the UAW, halted production, impacting sales.
• Electric Vehicles Growth: Sales of electric vehicles surged by 43.2%, reaching 8,958 units.
• Trucks Sales Dip: Sales of trucks decreased by 2.8%, totaling 78,971 units.

Tesla's Performance in China:

• Sales Drop: Tesla's China-made EV sales fell by 17.8% in November, the most significant decline since December 2022.
• Competition and Market Dynamics: Tesla faces intensifying competition in China, with its EV market share dropping. The company has adjusted prices multiple times amid changing market conditions.
• Musk's Diplomacy: Elon Musk met with Chinese President Xi Jinping, underlining the strategic importance of Tesla's presence in China.

BYD's Record Sales:

• Sales Milestone: BYD hit a new record with 301,378 passenger plug-in car sales in November, a 31% increase year-over-year.
• Dominance in Electric Vehicles: The majority of BYD's sales were all-electric vehicles (BEVs), totaling 170,150 units.
• Global Expansion: While most sales were in China, exports constituted about 10% of the total.
• Year-to-Date Performance: BYD's total sales for the year so far have surpassed 2.6 million units, a 65% increase over the previous year.

Mines and Material

EU Automakers' Battery Metal Shortage

• Limited Supply Secured: European automakers have acquired less than 20% of the cobalt, lithium, and nickel needed for their 2030 targets.
• Tesla and BYD Ahead: Tesla and BYD are exceptions, with better raw material strategies but lag in responsible practices.
• Volkswagen and Stellantis Progress: These companies are making headway in securing necessary battery metals.
• BMW and Mercedes Commitment: German automakers are leading in responsible supply practices, including human rights and low-carbon processes.

Rio Tinto's Position in EV Boom

• Copper Demand Surge: The expected global copper demand will nearly double by 2035, which is crucial for EV production.
• Production Challenges: Rio Tinto faces operational difficulties in ramping up production to meet this demand.

Toyota Partners with Redwood Materials:

• New Supply Agreement: Toyota signed a contract with Redwood Materials for battery components, marking a significant shift towards EVs.
• Recycling and Production: Redwood focuses on recycling and domestic component procurement, with Toyota committing to using recycled materials.