June 5, 2024

Asia: EV maker Nio gets regulatory nod for third factory in China Electric vehicle maker Nio has secured approval to construct a third factory in China, boosting its total production capacity to 1 million cars, nearing Tesla's Shanghai plant. The new plant in Huainan city, Anhui province, will produce vehicles for Nio's affordable car brand, Onvo. Despite industry overcapacity concerns, Nio aims to meet growing demand while contending with intense price competition and low factory utilization rates. Reuters - June 5, 2024

Asia: Toyota scandal raises questions about automaker's testing compliance Toyota Motor, along with Mazda, Honda, Suzuki, and Yamaha, admitted to testing irregularities, leading to halted deliveries of six models. This scandal reveals Toyota's overconfidence in internal testing and neglect of government standards. Toyota identified six improper testing instances, including falsified data for the Lexus RX. Compliance expert Ken Shiraishi suggests Toyota needs to improve governance and compliance training. Japanese regulators are inspecting Toyota's headquarters for data. Nikkei - June 5, 2024

Americas: Granholm calls higher US tariffs on Chinese vehicles crucial for automakers U.S. Energy Secretary Jennifer Granholm stressed the importance of increasing import duties on Chinese electric vehicles to over 100% starting August, to protect the U.S. auto sector. The Biden administration's tariffs aim to safeguard American jobs from cheap Chinese imports. Despite Republican criticisms, Granholm argued that reversing EV tax credits would be politically disadvantageous. She also noted the federal program's progress in establishing 1,000 public EV charging stations by year-end. Reuters - June 5, 2024

Americas: These early Tesla bulls are giving up on the stock Institutional shareholders are divesting from Tesla, believing its high-growth phase is over. Tesla's stock is down nearly 30% this year and over 50% since its 2021 peak. Gabelli Funds and other investors have sold significant stakes, citing a disconnect between fundamentals and stock price. Despite some optimism from analysts and investors like ARK Invest's Cathie Wood, critics argue self-driving technology faces major hurdles. Tesla's market cap remains over $560 billion. Reuters - June 5, 2024

Europe: Stellantis-backed battery maker ACC halts plans for German, Italian plants Automotive Cells Company (ACC), a joint venture between Stellantis and Mercedes-Benz Group, has paused construction on its battery factories in Germany and Italy due to slowing EV sales and high costs. ACC aims to develop low-cost batteries for cheaper EVs and will confirm its timeline by late 2024 or early 2025. The slowdown in Europe's EV market and competition from Chinese low-cost LFP batteries have impacted ACC's plans. Automotive News Europe - June 4, 2024