Expiring Ev Tax Credits Gives Tesla A Temporary Sales Boost

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Happy Monday! It's August 11, 2025, and this is The Morning Shift — your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, we're looking astatine a highest amidst Tesla's tumbling, arsenic good arsenic Mercedes' puppy-dog eyes to nan EU complete continued ICE development. We'll besides look astatine nan impermanent pausing of a lithium excavation successful China, and an NHTSA investigation into Kia. 

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In economics, there's thing called a "dead feline bounce." When a institution is tumbling down, it'll often person a little play wherever everything starts looking bully — nan banal rises, there's a little rally to combat nan inexorable decline, and group committedness that this is nan opening of a caller era. It ne'er is. Even a dormant feline will bounce once, and truthful galore companies do nan same. In related news, Tesla — an automaker that's hemorrhaged income period complete month, 4th aft quarter, successful consequence to its CEO's meddling successful U.S. authorities — is showing longer waits for conveyance deliveries arsenic nan EV taxation in installments draws to a close. From Barron's:  

Tesla precocious accrued its estimated hold times for its astir celebrated electrical vehicle, nan Model Y, to 4 to six weeks from a caller scope of 1 to 3 weeks. It's a awesome of much bid activity.

Higher request is bully news, but location is simply a catch. This is nan past 4th buyers tin suffice for nan national acquisition taxation in installments worthy up to $7,500. That use was eliminated successful President Donald Trump's taxation and spending bill, passed connected July 4.

No 1 knows precisely what will hap to EV pricing and request successful nan 4th fourth erstwhile nan in installments goes away. Tesla CEO Elon Musk warned of immoderate "rough quarters" up connected his company's 2nd 4th net convention call, referring to nan nonaccomplishment of nan in installments astatine a clip erstwhile Tesla's driverless exertion was ramping up.

Does Tesla meet nan method meaning for a dormant feline bounce? Almost surely not, fixed that nan stock's been trading comparatively level since May. But it's an absorbing comparison connected nan income side, seeing a flagging institution abruptly person an influx of business. I wonderment really galore it has near successful it. 

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The European Union is looking to prohibition income of caller internal-combustion cars starting successful a decade. This is simply a very slow babe measurement towards preserving nan habitability of immoderate magnitude of our planet, yet for companies that waste internal-combustion cars it's beyond nan pale. Take Ola Kaellenius, CEO of Mercedes-Benz, who said nan prohibition needs a "reality check. From Reuters:

The CEO of Mercedes-Benz criticised nan European Union's scheme to prohibition CO2-emitting vehicles from 2035 successful a media question and reply connected Monday, joining a chorus of voices calling nan target into mobility arsenic it comes up for reappraisal this year.

The ban, which supporters opportunity is important to Europe's greenish ambitions, is up for reappraisal successful nan 2nd half of 2025, pinch critics saying it would handicap European carmakers already struggling pinch anemic demand, Chinese title and disappointing electrical conveyance sales.

"We request a reality check. Otherwise we are heading astatine afloat velocity against a wall," Mercedes CEO Ola Kaellenius told nan Handelsblatt business regular of nan 2035 goal, adding that Europe's car marketplace could "collapse" if it goes ahead.

...

"Of people we person to decarbonise, but it has to beryllium done successful a technology-neutral way. We must not suffer show of our economy," Kaellenius said.

Remember that erstwhile companies talk astir "the economy," they mean their ain profits. What Kaellenius is saying present is that keeping nan satellite habitable is important, but doing truthful should ne'er impinge connected Mercedes' expertise to rake successful that saccharine sweet cash. I ideate asbestos insulation manufacturers and makers of leaded gasoline astir apt tried akin lines, and we're objectively amended disconnected without those too. You shouldn't get to tally roughshod complete nan satellite conscionable because it makes you, personally, money. 

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Speaking of nan different broadside of things, though, monolithic artillery supplier Contemporary Amperex Technology Co. Limited (CATL) is uncovering itself successful a spot of a pinch. It operates a number of lithium mines, wherever it gathers nan earthy materials for EV batteries, but that number conscionable dropped by 1 arsenic important permits expired astatine 1 tract — nan Jianxiawo excavation is shuttered, and apt will beryllium for months earlier nan paperwork tin beryllium sorted out. From Bloomberg:

Battery elephantine Contemporary Amperex Technology Co. Ltd. has suspended accumulation astatine a awesome lithium excavation successful China's Jiangxi state for astatine slightest 3 months, according to group acquainted pinch nan matter.

CATL, nan world's largest shaper of electric-vehicle batteries, has announced internally that nan Jianxiawo excavation would beryllium temporarily halting operations, they said. One of nan group said nan suspension came aft nan institution grounded to widen a cardinal mining licence which expired connected Aug. 9.

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A 2nd personification briefed connected nan matter said affiliated refineries successful adjacent Yichun had been informed of nan closure. The first personification added nan institution was still successful talks pinch authorities agencies to unafraid a renewal but was preparing for nan halt to past months. The group asked not to beryllium named arsenic they are not authorized to speak publicly.

CATL supplies batteries to awesome names for illustration BMW and Mercedes-Benz, and a hitch successful its proviso concatenation hurts manufacturers downstream. Hopefully, nan institution tin meet request pinch lithium from its different minds without nan benignant of proviso shortage that would skyrocket prices for lithium — and for lithium-heavy electrical cars. 

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Back successful Februaty, Kia recalled 2021 to 2023 Seltos and Soul models for an rumor pinch nan piston rings. Now, NHTSA is investigating nan repair, pinch nan thought that nan cars whitethorn request a information of revisions earlier they're genuinely safe and reliable. From Reuters: 

The National Highway Traffic Safety Administration said it had opened an audit into 137,256 Kia America vehicles connected Friday to measure nan effectiveness of nan automaker's remedy for defective piston lipid rings successful immoderate Seltos and Soul models.

In February, Kia America launched a callback of nan said Seltos and Soul vehicles, exemplary twelvemonth 2021-2023, complete concerns that piston lipid rings whitethorn person been manufactured incorrectly, which tin consequence successful motor harm causing a nonaccomplishment of motive powerfulness aliases an accrued occurrence risk.

(NHTSA administrator voice) You're fortunate that changeable of regular gasoline didn't rustle nan welds connected nan intake. Now maine and nan huffy intelligence gotta rip isolated nan block, and switch nan piston rings you fried. (1,000 group who each look for illustration Fred Durst respond for illustration this is nan biggest ain successful quality history.)

We should each springiness teens a small much credit. 

Somehow I've ne'er utilized this opus arsenic an On The Radio gear, which feels almost for illustration sacrilege. We're ignoring that it's 9 years old, and that I mostly don't request specified daze astatine my ain property this early successful nan morning.