Erman Gunes/Shutterstock Happy Tuesday! It's July 21, 2026, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around. In this morning's edition, we're looking at Tesla's spending, and GM's earnings estimates. We'll also look at Honda's plans for China, and some new hires over at Stellantis. The Morning Shift now has its own newsletter! For a roundup of automotive news in your inbox every morning, sign up here. 1st Gear: Tesla is expected to report a quarterly loss after shelling out on AI Alex Millauer/Shutterstock Tesla, maker of the best-selling electric car in the world, has decided that making and selling cars is boring. Instead it's going to sell robots, because its CEO makes business decisions based on what he thinks is cool rather than what makes any sense to anyone ever. Anyway, Tesla is expected to report its first quarterly loss in years as it pours money onto the AI fire. From Reuters: July 21 (Reuters) – Teslais expected to report its first quarterly cash burn in over two years on Wednesday, as its spending on AI and robotics soars, intensifying investor scrutiny over when those bets will pay off. CEO Elon Musk has pivoted the electric-vehicle maker's focus from manufacturing cars to building so-called physical AI businesses such as self-driving taxis and humanoid robots. Much of Tesla's valuation hangs on that promise. However, investors are growing increasingly uneasy as spending on AI infrastructure, including data centers, and manufacturing capacity is projected to climb to $25 billion this year, outstripping quarterly cash generated by Tesla's core automotive and energy operations. "As capex more than doubles and free cash flow turns negative, investors are increasingly focused on evidence that Tesla's spending is strengthening its physical AI moat," Morgan Stanley analysts wrote in a note. "Capex" there refers to capital expenditures, money spent on physical things like computers. It makes sense that Tesla is going hard in that area, since the software side of Musk's AI dreams is held under xAI, which is owned by SpaceX. That company also owns Twitter, because Musk's empire is built on albatrosses that he's convinced investors are golden geese. 2nd Gear: GM is having a good year on the back of pickups and large SUVs Chevrolet Automakers make estimates about how much money they'll make in a given year, and General Motors just raised its earnings outlook for 2026. Gas prices may be up, but it seems folks are still spending on big GM SUVs and trucks. From Reuters: DETROIT, July 21 (Reuters) – General Motors lifted its full-year earnings outlook on Tuesday for the second time after reporting a 30% increase in second-quarter core profit on the back of profitable SUV and truck sales. The Detroit automaker said it easily surpassed analysts' profit estimates despite a choppy economic backdrop as consumers grappled with higher gas prices, persistent inflation and slowing job growth during the quarter. Strong profit in its home market of North America, which is also its biggest, was driven by solid pricing.GM shares rose about 1% in premarket trading. GM's customers continue to spend up on pricey pickup trucks and large SUVs, such as the Cadillac Escalade, despite higher gas prices. The average GM vehicle in the U.S. sold for about $52,000 during the quarter, up slightly from a year earlier. The average new car transaction price in the U.S. is still around $50,000, so the average GM car sells for more than the average car. An interesting stat from a company that feels so blue-collar. 3rd Gear: Honda's having a rough time in China, but it's not giving up Cheng Xin/Getty Images The Chinese auto market has been unkind to imported brands recently, with customer preference instead going towards domestic automakers. Honda has certainly seen sales decline, but it's not giving up hope on the market yet. From Automotive News: SHANGHAI — Honda Motor Co. renewed its China joint venture with GAC Group Co. through 2038, betting on a turnaround in the world's biggest auto market despite collapsing sales driven by its lackluster electric vehicle lineup. The move signals Honda's determination to compete in China even as its EVs fail to match price-competitive Chinese rivals. Honda announced the move July 20, saying it will better leverage the resources of its local partner. The move came after CEO Toshihiro Mibe told a Japanese newspaper July 18 his carmaker "learned the hard way" about business in China by introducing vehicles developed from a Japanese perspective into the local market. "The future of the automotive industry will revolve around Chinese manufacturers. Their cost competitiveness has become the industry standard," Mibe told the Yomiuri newspaper. "The moment you avoid competing with China, it's tantamount to losing. So, cutting ties with China, such joint ventures, would not be a wise move. We will leverage China's strengths on a global scale." Honda operates in China through a joint venture, as is the standard for foreign automakers in the nation. Perhaps Honda is hoping that its joint venture can start to take some of that domestic brand cachet, as it is arguably Chinese-based. 4th Gear: Men get jobs Michael Kovac/Getty Images Stellantis has had some open positions atop its most profitable brands, and those roles have now been filled. Matt VanDyke, formerly of Ford, now runs Ram. Branten Coté, formerly of Aston Martin, will run Jeep. From Automotive News: Stellantis has appointed two industry veterans to lead Jeep and Ram as its expands the brands' lineups in a bid to regain lost market share. Matt VanDyke, a former Ford Motor Co. U.S. marketing chief, started July 20 as CEO of the surging Ram truck brand. He succeeds Tim Kuniskis, who remains the company's head of American brands. In addition, Stellantis has picked Branden Coté, a former executive at AutoNation and Aston Martin, as Jeep CEO starting Aug. 3. Coté will replace Bob Broderdorf, who will be going on medical leave after heading the SUV brand since February 2025. Broderdorf will assume a new leadership role at Stellantis when he returns, the company said. Good for those guys. It's nice that white men can still get jobs in this economy. Reverse: Barbenheimer I'm amazed that this gets an entry on History.com, but I'm not against it. The Fuel Up AAA We hit the magic $4 mark again yesterday, and prices are still climbing! This is bad, by the way. On The Radio: Jane Remover — 'Dancing with your eyes closed' Jane Remover has three full-length albums, and I somehow have 147 of them on my media server. I don't know how I did this.