Trade News

Tesla Inc. is set to pay more for the lithium that powers its EV batteries after a supplier amended their deal amid a relentless price rally of the metal.

Piedmont Lithium Inc. will now supply an increased 125,000 metric tons of lithium concentrate to the EV giant starting in the second half of this year through the end of 2025, according to a statement Tuesday. Unlike prior agreements where prices are locked in, Piedmont’s deal with Tesla relies on a floating mechanism based on market prices, according to the statement.

The change in the supply agreement between Piedmont and Tesla is “significant” because the EV giant typically has fixed prices for the materials it needs for batteries, according to analyst David Deckelbaum at Cowen & Co.

“As more contracts shift toward variable pricing, Tesla’s lithium costs inevitably move higher,” Deckelbaum said in an email.

As the biggest buyer in a sector filled with startup miners, Tesla has wielded out…

SEOUL -- South Korea's antitrust regulator said it would impose a 2.85 billion won ($2.2 million) fine on Tesla for failing to tell its customers about the shorter driving range of its electric vehicles in low temperatures.

The Korea Fair Trade Commission (KFTC) said that Tesla had exaggerated the "driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers" on its official local website since August 2019 until recently.

The driving range of Tesla cars plunges in cold weather up to 51 percent versus how they are advertised online, the KFTC said in a statement on Tuesday.

Tesla could not be immediately reached for comment.

On its website, Tesla provides winter driving tips, such as pre-conditioning vehicles with external power sources, and using its updated Energy app to monitor energy consumption but does not mention the loss of driving range in sub-zero…

SEOUL -- Hyundai Motor and affiliate Kia forecast that their combined global vehicle sales will jump nearly 10 percent in 2023, even as last year's sales fell short of target due to supply chain disruptions.

The companies sold 6.85 million vehicles in 2022, about 4 percent less than their combined target of 7.16 million vehicles, largely due to problems including chip and component shortages.

The companies said they would target global sales of 7.52 million vehicles this year.

"Hyundai plans to expand market share and operate profitability oriented businesses by flexibly responding to market changes, accelerating its transition to electrification, responding to global environmental regulations, and optimizing production, logistics and sales by region," the company said in a statement.

Analysts said the sales targets of the two companies for this year appear to be aggressive but achievable, considering pent-up demand for vehicles.

"Hyundai M…

Tesla's China chief Tom Zhu has been promoted to take direct oversight of the electric car maker's U.S. assembly plants as well as sales operations in North America and Europe, according to an internal posting of reporting lines reviewed by Reuters.

The move makes Zhu the highest-profile executive at Tesla after CEO Elon Musk, with direct oversight for deliveries in all of its major markets and operations of its key production hubs.

The reporting lines for Zhu would keep Tesla's vehicle design and development -- both areas where Musk has been heavily involved -- separate while creating an apparent deputy to Musk on the more near-term challenges of managing global sales and output.

The Tesla posting showed that Zhu's title of vice president for Greater China had not changed and that he also retained his responsibilities as Tesla's most senior executive for sales in the rest of Asia as of Tuesday.

Tesla did not immediately respond to a Reuters requ…

Tesla Inc. delivered 405,278 cars worldwide in the fourth quarter, eking out a record despite rising interest rates, inflation and crimped production in China.

The results, posted Monday, missed expectations. In an effort to clear inventory, Tesla dangled discounts of $7,500 to U.S. consumers who took delivery in the last days of December.

Tesla delivered more than 1.31 million cars for the year, falling short of the 50 percent year-over-year growth the company has aimed for. In 2022, vehicle deliveries grew 40 percent from a year earlier, while production climbed 47 percent to 1.37 million, Tesla said in a statement. The company produced 439,701 vehicles.

More than 34,000 cars remained in transit at the end of the quarter. Analysts had expected the company would ship 420,760 vehicles — the average of estimates compiled by Bloomberg.

"Tesla sells cars, and the auto industry is slowing down," Gene Munster, managing partner of Loup Ventures, said by…

Peter Boulware, an NFL veteran turned franchised dealer, wants his two Toyota stores to reach top potential before expanding his holdings. The retired Baltimore Ravens linebacker will consider opportunities if they arise but sees no reason to rush.

"I'm open to anything, but I'd say I'm really more in the mindset of, 'I just want to be excellent with what I have right now,' " Boulware told Automotive News.

Boulware in April 2021 bought the former Fred Anderson Toyota of Columbia, in West Columbia, S.C., a store he renamed Peter Boulware Toyota of Columbia. That deal came nearly two decades after he — while still on the gridiron — became a part owner in the former Legacy Toyota in Tallahassee, Fla., in 2003. In 2020, Boulware became majority owner of the Florida store, renaming it Peter Boulware Toyota.

The 2021 purchase represented a route home for the Columbia, S.C., native, a connection that played a crucial role in his decision to buy the store when …

As automakers continue their digitalization efforts, focus is shifting to the development of in-car applications and subscription services in the hopes of creating lucrative additional revenue streams.

By offering paid apps — either through third parties or created in-house — automakers believe they can develop a closer relationship with customers after they purchase a vehicle while building a revenue stream that extends beyond the original purchase, even to successive owners. Fees could vary between subscription services and upfront payments, depending on the service and company strategy.

Ford Motor Co. projects that the global market for connected functions such as its BlueCruise driver-assist technology, new features and upgraded software content could top $20 billion by 2030.

Yet the apps that will make money for automakers aren't the ones that first looked like the good opportunities, said Ford CEO Jim Farley.

"They're not what we thought,"…

SHANGHAI -- Leading Chinese electric vehicle manufacturer BYD Co. has adjusted product pricing, citing the impact of reduced subsidies for new energy vehicles since November 2022.

Official guidance prices will rise by between 2,000 yuan ($290) and 6,000 yuan for various models beginning Jan. 1, the company said on its official Weibo account.

Tesla Inc. is starting 2023 as it ended 2022: with incentives aimed at propping up sales in China.

The carmaker is offering Model 3 sedan and Model Y crossover buyers as much as 10,000 yuan ($1,450) if they take delivery by Feb. 28, according to Tesla’s website. The company is extending a 6,000-yuan subsidy it started offering in early December, and the other 4,000-yuan subsidy tied to purchasing insurance through Tesla was first introduced in November.

The pricing adjustments at the major EV makers come as the Chinese economy faces new headwinds from a surge in COVID cases after the government eased containm…

The University of Virginia professor previews the upcoming Indy Autonomous Challenge at CES, discusses his work with the Cavalier Autonomous Racing team and explores how self-driving technology might migrate from racing to robotaxis.

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WASHINGTON — For the second consecutive year, Ford Motor Co. has reported the most U.S. vehicle recalls of any automaker, partial NHTSA data shows.

Through Dec. 19, Ford had issued 65 recalls affecting more than 8.6 million vehicles in 2022. In 2021, the automaker issued 53 recalls covering nearly 5.4 million vehicles.

The U.S. recall data comes as Ford continues to work on improving manufacturing operations and combating quality issues, particularly on its high-profile vehicles.

In November, Ford recalled nearly 634,000 Bronco Sport and Escape crossovers globally for fire risks. Months before, the automaker had issued a stop-sale to dealers as part of its recall of nearly 50,000 Mustang Mach-E crossovers for potential power loss. Federal investigators also launched an investigation last year into "catastrophic engine failures" in the popular 2021 Bronco SUV.

"While we don't ever want customers inconvenienced by pro…

What it is: A pulse check of the franchised, independent and overall auto retail industry. Each quarter, Cox conveys dealers' sense of the market today and what they expect in three months. It also inquires about other topics, including store profits, inventory and business challenges.

Where it comes from: Cox surveys hundreds of franchised and independent dealers to produce an index each quarter. The answers typically come from department managers or highly ranked staff, and are weighted by dealership type and sales. Most responses are scored between 0 and 100, with higher numbers signifying strength or increases. A 50 signifies stable or average.

How it's used: Dealerships can compare their own situation and market to national sentiments expressed by peers, both on a quarterly basis and over time. The survey allows comparisons between the current market, the pandemic years, and conditions before the COVID-19 pandemic.

How it might…