Photo: Tesla
Good morning! It’s Tuesday, August 15, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
1st Gear: Cheaper, Worse Tesla Model S and X Are Here
Telsa has reportedly cut the price of its Model S and Model X flagships by $10,000. However, it’s not just a regular price cut. These are actually worse versions of the same vehicles with less battery range and slower acceleration. The new trims are called “standard range” by Tesla.
It’s the latest move in the U.S. EV price wars, and it’s a chance to try and rejuvenate lagging Model S and X sales. From Automotive News:
According to data from Experian, Model S registrations fell 55 percent in the January-June period — compared with the first half of last year — to 6,964. Model X registrations fell 5.8 percent to 12,341 for the same period, Experian said.
[…]
In the U.S., Tesla said the Model S standard range starts at $80,130 with shipping, and has 320 miles of range. The regular Model S is rated at 405 miles and is now the middle trim.
The Model X standard range starts at $90,130 with 269 miles of range. The regular X is rated at 348 miles, according to Tesla’s website.
[…]
Tesla quotes 0 to 60 mph for the Model S standard range at 3.7 seconds compared with 3.1 seconds for the regular trim. The performance Plaid trim has an official 0-to-60 mph time of 1.99 seconds and starts at $110,130 with shipping.
The Model X standard range is rated at 4.4 seconds to 60 mph, compared with the regular version at 3.8 seconds. The Model X Plaid goes to 60 mph in 2.5 seconds and starts at $110,130, Tesla said on its website.
A number of folks on social media and other experts have reportedly pointed out that this really isn’t that good of a value, especially for Tesla’s flagships at what is still a fairly high price point. I suppose the vehicles’ worth is now for consumers to decide.
The S and X now join the 3 and Y in having three different trim levels: standard range, long range, and performance.
2nd Gear: Ford Snags Apple VP To Lead Software
Ford has reportedly tapped Peter Stern, a former vice president at Apple, to lead the newly formed Ford Integrated Services unit that aim “to lead customer experiences powered by software and services. He’ll be reportedly directly to CEO Jim Farley. Previously, Stern oversaw areas including Apple TV+, iCloud, Apple News+, Apple Books, Apple Arcade, Apple One and Apple Fitness+. From The Detroit Free Press:
The plan, Ford said, is for Stern to “build a world-class team to create and market innovative customer experiences by integrating hardware, software and services across Ford Blue, Model e and Ford Pro.
This latest move is part of an overall strategy outlined by Farley to create high-profit services through subscriptions and other digital revenue. Ford’s competitors, including General Motors, are making similar moves.
Immediate priorities for Stern include building out the business tied to Ford’s BlueCruise hands-free driving system, in addition to safety/security services, and oversee physical services, services marketing and Ford Next.
Ford said in its news release Stern’s to-do list looks like this:
Build out the business tied to Ford’s BlueCruise hands-free highway driving systemand productivity and safety/security services, including those from the Ford ProIntelligence business
Imagine and deliver exciting new high-value services, and
Lead services marketing, certain out-of-vehicle customer experiences and Ford Next.
Franck Louis-Victor, CEO of Ford Next, has been on leave since a domestic incident in July. While felony charges were dismissed, he has not returned to work.
When asked why Farley hired Stern, he reportedly said that strengthening this area of expertise would allow Ford to build more shareholder value for investors, increase revenue and profits, and improve customer loyalty. It’s a similar playbook to what Apple has done with its customer base.
3rd Gear: Even Fisker Is In On Tesla NACS Chargers
Electric vehicle maker startup Fisker says it has signed a deal with Tesla to adopt the automaker’s North American Charging Standard. The move will give Fisker customers access to Teslas Supercharger network by 2025.
It’ll join a number of automakers, including Ford and GM, in moving away from the standard Combined Charging System connector to Tesla’s once-proprietary charger design, which now looks ready to dominate the industry. From Reuters:
Fisker said its vehicles made 2025 onwards will have the NACS port for charging, while other customers can use an adapter to access Tesla’s 12,000-strong network of public fast chargers in the U.S. and Canada.
The company will continue to provide an adapter for the CCS if customers wish to continue using the technology, the EV maker said.
Tesla’s recent deals represent major strides in displacing a rival standard, CCS, that earlier exclusively had the backing of President Joe Biden’s administration.
The government is offering $7.5 billion in funding to speed the deployment of EV chargers in the United States.
The outlet reports that most other automakers have decided not to build large charging networks since installation and maintenance chargers require a lot of money with not a ton of returns.
4th Gear: VinFast Goes Public
Vietnamese electric vehicle maker VinFast is making its debut on the Nasdaq Tuesday morning after a special purpose acquisition company (SPAC) deal that is estimated to be worth $23 billion. The valuation, which VinFast’s partner Black Spade Acquisition calculated using EV maker Lucid as a benchmark, is the fourth-highest SPAC deal in history.
After the merger, Black Spade more than doubled its value in premarket trading which only involved less than four percent of its shares. From Reuters:
Several other EV makers have also listed via such SPAC deals, which have attracted increased scrutiny from both investors and regulators, especially as competition in the EV market heats up and China’s auto market, the world’s largest, is locked in a price war.
Some of VinFast’s rivals, including Nikola Corp (NKLA.O) and Lucid, have seen their valuations plunge after their SPAC listings. Nikola now commands a market value of $1.4 billion, versus $13.9 billion before listing while Lucid has a current market value of $15.5 billion, versus $24 billion during its 2021 SPAC deal.
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VinFast is a unit of Vietnam’s largest conglomerate Vingroup.
It is still unclear how many of the company shares will trade on Tuesday and at what price.
VinFast’s founder, Vietnam’s richest man Pham Nhat Vuong, pledged $2.5 billion in April to bolster the EV maker, including $1 billion from his personal fortune. He is the beneficial owner of 99% of the ordinary shares of the EV maker after the merger.
Reuters reports that VinFast plans to build a $4 billion plant in North Carolina and boost car shipments from its factory in Vietnam to the U.S. It has already shipped about 3,000 crossovers to the U.S., and deliveries began back in March. However, only 137 vehicles were sold through June, which is not good.
Reverse: Anti-Semite Quits Job
Neutral: Running Shoes
Does anyone have any recommendations for indoor running/workout sneakers? Unfortunately, mine finally gave up after years of moderate use. I now have a blister on the back of my foot.
On The Radio: Jonas Brothers – “Waffle House”
Jonas Brothers – Waffle House (Official Music Video)
Keyword: New Tesla Model S and X Trims Are Cheaper And Have A Lot Less Range