Welcome Back to Monday

Look, we don’t make the rules. We are in the same river as you, just letting this big ol’ current take us wherever it’s going.

Here is some more Q1 reporting news.

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Q1 Across the Board

In the first quarter of 2023, U.S. auto sales saw a 5.1% increase, reaching nearly 3.8M vehicles despite high-interest rates. However, EV sales growth significantly slowed to just 3.3%, highlighting consumer concerns over range and charging infrastructure.

• The average sales price of vehicles dropped 3.6% to $44,186, the most significant decline for March, with automakers offering more discounts and lease deals.
• The EV market share slightly declined to 7.15%. Mainstream buyers' skepticism, high-interest rates averaging 7%, and a shift towards more affordable and smaller vehicles are influencing the market dynamics.
• Notably, GM, Stellantis, Kia, and Tesla reported sales declines, contrasting with increases from Toyota, Honda, Nissan, and Subaru (and a marginal rise from Hyundai).
• Tesla's global sales dipped by nearly 9%, and it was affected by operational disruptions.

Subaru: Sales Up, EVs Down

Subaru's U.S. EV sales weakened in Q1 2024, with the Solterra experiencing a 13% decline in March, marking the third consecutive month of decline.

Overall sales increased by 6.7% to 152,996, but Solterra's EV share of total sales remains below 1%.

However, introducing the new 2024 model, featuring faster DC charging and more standard equipment, holds significant potential to reverse this trend and boost future sales.

Rivian: Paused and Surpassed

Rivian outperformed in Q1 2024, producing 13,980 EVs and delivering 13,588, surpassing expectations. The company paused its Atlanta factory construction to focus on more affordable models amid supply chain issues. Despite forecasting a delivery drop, Rivian's adjustments led to impressive results, reaffirming its annual production target.

Stellantis: Production and Demand Issues

Stellantis' production in Italy dropped 9.8% in Q1 to 170,415 units, moving away from its goal of reaching one million units by the decade's end. Production issues were exacerbated by delays in Italy's auto purchase incentive scheme and weak demand for electric vehicles. The union projects a significant annual production decrease, but new government incentives could improve forecasts.

Fisker: Updates and Downgrades

A brutal review of the Fisker Ocean went semi-viral recently. The company updated the software and the updated review is out now...but, not any better.

The review may not directly cause cancelations, but it is surely not helping. Fisker is facing a significant setback as over 40,000 of the 70,000 reservations for its Ocean EV were canceled amid financial turmoil. The company, grappling for funding, has issued around $9M in refunds. Despite dropping the Ocean's price to boost sales, Fisker's survival is still being determined, with production paused and funding efforts faltering.

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The thing about brutal honesty is it is honesty PLUS brutality. You can be honest without being brutal, but then you won’t go viral. In fact, the algorithm seems to kinda hate honesty with no gimmick.