ICE car inventories highest since 2020

[SANZC02]

I find this relevant for EVs because unlike most news article declaring EV sales are dieing, this actually indicates it is not just EVs but the whole market appears to be under pressure.

This may also explain more as to why Ford and GM are cutting back on their EVs, the revenue may be off on their ICE divisions and they are trying to limit the bleed.

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[COdogman]

From what I have read, this is just a car industry problem right now, not an ICE vs EV problem. Because customers can't afford new car payments at the current interest rates they are buying used.

Which also means most of the overreaction to "EV demand" is misplaced. More people will buy new again when rates come down.

 

[Cycliste]

I guess the one sentence summary for the auto market now is “If you are not Tesla, you are suffering.”

 

[SANZC02]

I guess the one sentence summary for the auto market now is “If you are not Tesla, you are suffering.”

Tesla is not immune, they dropped the Model Y price in February again, they only do that to move inventory.

Then there is this, that is a huge hit to their bottom line, for 1 million vehicles a 13k drop in average transaction cost equates to a 13 billion hit to the sales numbers.

• According to the data table shared by Kelley Blue Book, Tesla’s average transaction price has gone from $62,350 to $49,518. Those prices represent January 2023 and January 2024, respectively. Across the entire automotive industry, prices have dropped around $1,600 as a whole, roughly 3.5 percent.

 

[Cycliste]

The legacy auto makers are suffering more. Tesla was even profitable last quarter

https://digitalassets.tesla.com/tesla-contents/image/upload/IR/TSLA-Q4-2023-Update.pdf

 

[kshivark]

I agree with the assessment that the overall car market is going through a rough patch, this is not limited to EV’s. Also to note is that with an overall car market slowdown, the premium sub segment would be more impacted than lower segments, again EV and Ice included. What would be interesting is how the brands react, we have started seeing large discounts on premium ICE’s and Tesla’s. Would the discounts result in customers taking advantage and picking up the ice deals. Rivian next qtr report will be closely watched.

On another note, while R2 is far away in ‘26, the segment spread in long term will definitely benefit Rivian.

 

[LetsgoRIVN]

I find this relevant for EVs because unlike most news article declaring EV sales are dieing, this actually indicates it is not just EVs but the whole market appears to be under pressure.

This may also explain more as to why Ford and GM are cutting back on their EVs, the revenue may be off on their ICE divisions and they are trying to limit the bleed.

Very interesting point! And you don’t see mainstream media talking about car industry in general, they focus more on EVs as if ICE sales are growing fast!

 

[beyondgravity]

It’s irrelevant for Rivian.

it is the same boat of high interest rates!

 

[GogglesPisano]

Don’t you guys get it? Nobody wants ICE vehicles. They’re a solution for a problem that doesn’t exist. The only reason they were selling is because those crazy right wingers think that fossil fuel is the answer to everything. It’s just another part of their agenda and now the cracks are showing. All these companies will be dead in a year. Nobody would want them if it wasn’t for all that oil subsidy making the gas cheap.

/S

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