Trump Could Erase 38% of Tesla's Profits; LG Losing Money on EV Batteries - Autoline Daily 3966

[@brucesibbitt9949]

So much for wiping out inflation.

[@bradybrown5140]

well, the people that caused it are gone. but we inflated the money supply by 40% - that will take a while to work itself out.

[@ferrarikingdom]

@@bradybrown5140🤡

[@nonchalanto]

He’s not even in office yet lmao

[@nothanks960]

@@bradybrown5140lol

[@MM-sf3rl]

@@bradybrown5140I loved the free money I got with Trump’s signature right on the check. Money I didn’t need. Thanks for the inflation Donny.

[@stargazer3828]

Even if tariffs did bring manufacturing and jobs back to America everything would cost more to build here due to the cost of living so we would have massive inflation!

[@Clint-stanley]

Agree. We will get less for more. This can stall the world market as well. Glad I'm getting a refreshed Model Y when it comes out.

[@robwalker4548]

It would cost more only if companies operated with business as usual and do not rethink how they manufacture and use more automation. The tariffs is what will increase cost and make in country businesses hide behind those to get more profits without changing how they are operating.

[@BTC_Minarchist]

Your math is no bueno

[@stargazer3828]

@@robwalker4548 You are neglecting the unintended consequences of more automation! If less people are working that means less people can afford your product so you effectively shrink your TAM.

[@nguyep4]

​@stargazer3828 lol automation will happen regarless. Any manufacturers don't implement will not be cost effective and won't be in business at all.

[@BigD4Real.]

JP Morgan has been wrong about Tesla since the beginning, why would we listen to them now?

[@pnketia]

Elon tweeted on X that DOGE may not be able to cut 2 trillion in government spending! SHOCKER!

[@bobbbobb4663]

Adrian Dittmann lies again!

[@davidbeppler3032]

After cutting 50% of the military, social security, Medicare, and education Elon has realized he would have cut congressional pay and staff by 50%. Can't do that!

[@_PatrickO]

The spending he wants to cut is all the cheap stuff that provides a lot of value to society. If you want to balance the budget, you either gut the military or repeal tax cuts on rich people.

[@buckw65]

More BS from the right....so they could get elected

[@JT_771]

@@bobbbobb4663 Don't be dumb. Cutting that kind of money is an extremely uphill battle. Use that noodle and be objective.

[@kevinscott8642]

Hoping you’re going to cover Aptera Motors. It’s the most significant tech at CES.

[@cleanenvironment8121]

People are loosing money on EVs also , throwing good money after Bad

[@DavidC-pg6ni]

What “people” are you referring to?? Tesla is making money. So is Hyundai / Kia.

[@digitalkov]

Whoever came up with the Afeela name should consider taking some linguistic lessons.. 😂

[@juliahello6673]

I feel ya

[@AuralioCabal-nl8gi]

I will Feel a Pain for Honda when it’s Expensive EV fails😂

[@jameshead1526]

Direct sales model: let the customer decide! No more chicken laws like Michigan has.

[@kenchow8213]

Tesla did NOT agree to settle the lawsuit against Tesla directors. The lawsuit was against the directors not Tesla. Tesla is actually the benefactor in the case as it gets back stock options from the directors.

[@Cyrribrae]

That LG story is way less bad than the headline suggested. They have an operating loss in Q4 of 2024, but they're not losing money on EV batteries themselves. They posted an overall profit for 2024. Regardless, overcapacity now might become a good thing if it means cheaper EV cars, which we've seen leads to strongly increased sales and larger market share. Just a question of timing.

[@michaelmackey754]

If you look at how many electric vehicles were sold in 2024 there really wasn’t a slow down

[@davidmccarthy6061]

In the U.S. it will max out at around 40% EV ownership. Still waiting years for a robust used EV market to develop. At least for a decade or longer while we wait for local Level 2 charging infrastructure where the other 60% of people live, work, and run errands. Nobody is driving 70 miles to an expensive DC station just to own an EV.

[@michaelmackey754]

@ if you look at the yearly sales for electric vehicles in the United States, it’s going to exceed 40% and most people charge at home and now some manufacturers are helping customers install chargers at their house

[@davidmccarthy6061]

@@michaelmackey754 No, right now 90% of EVs are owned by people that CAN charge at home. You are probably applying your situation to the people in multi-tenant buildings, street only parkers, renters, people that can't afford an EV at all, or afford the $2000-$8000 service upgrade to install a $400 EVSE.

[@gnoxycat]

@@davidmccarthy6061 Sounds like government is the solution. You cannot rent or have condo's without charging for every parking spot.

[@BTC_Minarchist]

​@@gnoxycatGovernment is not a good solution 99.99% of the time

[@AuralioCabal-nl8gi]

Over 300 automakers in China is unsustainable , China auto expert Michael Dunne of Dunne Insights has said this a long time ago. Many automakers in China are funded by Local govts. Tesla was allowed by the Nat Government without JVto spur the EV industry, ( and weed out the unprofitable via competition and show how it should be done)that job has largely succeeded with the success of BYD ,Geely , Nio and more, consolidation and Bankruptcies are bound to happen.

[@jeffs6090]

Tariffs absolutely add cost to the consumer for all the products they are added to. If it deters companies to move to the US for manufacturing (which is most likely his goal), those products will still be much higher due to the demands in pay and benefits of US workers. So much for all his supporters and voters who were duped into thinking he was lowering costs for people.

[@frankcoffey]

So the higher percentage of US made parts the less your exposure to tariff risk? Guess what brand already has the most US produced content?

[@JohnPMiller]

Hint: Starts with a "T".😉

[@davidmccarthy6061]

@@JohnPMiller To bad they offer nothing but sedan/hatchbacks and a pickup that can't be used for real work, and nothing on the horizon to broaden their offerings.

[@DavidC-pg6ni]

@@davidmccarthy6061Most people only need Sedan or Crossovers. The Oversized Pickup Truck and Monster SUVs were only made to avoid CAFE fuel standards by incompetent Legacy Automakers. Bigger is better was a foolish thing and as more and more EVs come out with reasonable sized vehicles, those monster trucks and SUVs will go away. Too expensive and too inefficient.

[@urbanstrencan]

Number of Chinese automakers need to go down and will, but the one that stays will be a lot stronger

[@frankcoffey]

If Scout wins we might see a lot of new brands in the market.

[@BTC_Minarchist]

I'm rooting for Scout. NADA are 💩 bags

[@JohnPMiller]

I'm not a marketing guy, but I think we already have too many brands. I'd rather have a GM Corvette than a Corvette minivan.

[@davidmccarthy6061]

More choice is always better!

[@who2u333]

Good. That is likely the only way the Dealers lobby will lose it's grip on statehouses.

[@Clint-stanley]

LG was affected by EV softening demand. More like LG took on contracts with Legacy automakers. Automakers who make poor EVs. How is CATL doing?

[@junehanzawa5165]

It was all the batteries they had to replace on the Chevy Bolts and the dropping batteries prices that caused it.

[@polo3433]

This has nothing to do with legacy automakers. Everyone, including CATL, had to scale back. While EV adoption is growing, it's not progressing at the rate many had hoped.

[@Clint-stanley]

@@polo3433 Interesting take. EV adoption is up all over the worl except US and Germany. Overall EV adoption is up 2024 over 2023.

[@polo3433]

@@Clint-stanley Yes I stated it previously that EV is growing and it will continue to do so. It is just not growing as fast as most companies have hoped. Some analyst had EVs to surpass ICE vehicles by 2026. We know now that will not be the case probably more closer to 2030.

[@DavidC-pg6ni]

@@polo3433Nonsense. Legacy automakers are incompetent. They’re heading out of large business just like Nokia and Motorola. Losing all their business in China and will be replaced with EVs rapidly.

[@12345682900]

"....board members compensating themselves excessively?" No, say it isn't so, why, I can't believe that......

[@Matthew.Sirrom]

Tesla will be fine wituout the subsidies they can modify thier prices how they want to match if they need to .

[@Angelboy99]

I hope you don’t believe Trump administration will taxe the Canadian or Mexican made parts or assemblies as MFG, including the big 3, would lose and Canadians would start buying more European, Japanese and Chinese imports. I own a Tesla and will wait to see what this US administration does vs the BS we came to hear daily.

[@AndreasPenninger-oc8sw]

Good reporting regarding the impact on Tesla profits! Why are you not explaining that Elon Musk has asked for the sales subsidies to be removed?

[@zeitgeist888]

I sure hope John goes to the Donut Lab booth and/or has the people on the show in the future. That is very interesting take on EV motor design for a multitude of products.

[@JohnPMiller]

Afeela like-a it will-a cost-a too much and arrive-a too late.😂

[@RCdiy]

1 share holder with 8 shares sued about the pay package.

[@Lee-San247]

Nobody is going to buy AFEELA cars anyway😅

[@who2u333]

Depends on what they offer.

[@buddy1155]

I don't know, I can't think of Sony ever bringing a bad product to market.

[@frankcoffey]

How about a tariff on imported labor. Might let these young Americans get some IT jobs.

[@foxtrotwolf6081]

100%

[@jimclarence5441]

Big business loves using foreigners at all pay/skill levels in America

[@juliahello6673]

There isn’t a line of unemployed skilled tech workers.

[@frankcoffey]

@ Thats because they trained an army of them off shore instead of here. That’s more than just a thunb on the scale that international and pre planned.

[@Cyrribrae]

@@juliahello6673 there are plenty. Hundreds of thousands of tech layoffs over the last couple years. They weren't all immigrants.

[@oystla]

Elon Musk dont need Trump to erase Tesla profit. Musk will manage that himself. Mr. X-trmist

[@nguyep4]

Lol still thinking Tesla is a just car company. You have zero credibility. A fool repeating the agenda media. Keep it up. They are proud of their little sheeps.

[@forgotten_world]

He transformed Tesla into a giant pyramid scheme. His only chance to stay afloat is government corruption.

[@Roddy451]

"🎶 bad, bad medicine... is what I want... bad, bad medicine... is what I need... 🎶" (Leon)

[@777Outrigger]

Tesla's Energy Storage is growing exponentially and has a higher profit margin than it's autos. Musk has said it will pass the automotive side of Tesla. Tesla profits won't drop 38% long term. And since no other American manufacturer is making a profit on EVs, getting rid of the EV tax credit will cripple their transition to EVs. Most of the hurt will not be on Tesla.

[@BTC_Minarchist]

Your facts are lost with 90% of this crowd.

[@777Outrigger]

@@BTC_Minarchist 😆

[@777Outrigger]

@@BTC_Minarchist And don't get me started on FSD and robotics. 😁

[@Cyrribrae]

I'd love to see Tesla energy storage do well. Key infrastructure need for the US. Still, energy storage is still only 10% of Tesla's profits and like 1% of revenue. When will it surpass automotive? Will it be before these tariffs run their course with damage already done in a few years? I don't expect so, unless automotive just tanks that hard because of them. And that's not even considering that tariffs will likely hurt energy storage as well - lots of projects are global not domestic. Why are we only comparing Tesla to American manufacturers in the US market? Tesla sold more cars in China than it did in the US last year, let alone all international markets. It doesn't need to be said that Tesla is way behind in batteries and energy storage in China and will likely never win there - especially with an electric trade war on. If the tariffs hurt every AMERICAN MANUFACTURER - maybe Tesla slightly less, while doing nothing to harm the Chinese manufacturers that we're already struggling against, what the hell is the point of that?? I'm not going to be cheering for the stabbing of the US automotive industry just because Elon may be hurt slightly less than GM or Rivian lol. That's insane.

[@777Outrigger]

@@Cyrribrae Tesla's building a new energy storage plant in China and it should be ready by the end of the year. It should double Tesla energy storage sales. When will it pass automotive? I don't know, but Wall Street will start taking note of it's effect on the bottom line by late this year, I think. It will become substantial by the end of the year.

[@jjamespacbell]

Fix your sound volume it is all over the place

[@davidmccarthy6061]

Or, just assume it is fine and the issue is on your end.

[@Clint-stanley]

Delusional. EVs are the future. Tesla not only makes the best EVs, they showed the Chinese new production methods. The new production methods are kicking but. Tesla warned 2024 will be a dip between growth waves. The old and dated Model Y is the number one car in the world still. What will happen when the new Model Y is refreshed. I figure 6 months into 2025 the panic will start. How are legacy’s earnings. Terrible.

[@bobbbobb4663]

Can you show me on the Tesla balance sheet how much revenue they make from licensing their production methods to the Chinese?

[@Clint-stanley]

@@bobbbobb4663 They are not making a cent from improved Chinese production methods. It is helping us get to a more sustainable future though.

[@Tommy2tone762]

@@bobbbobb4663You just don’t get it do you

[@BTC_Minarchist]

​@@Tommy2tone762he gets it, he's just a troll and gets a rise out of any attention he gets. I usually read his tard statements and chuckle. Only engage to troll him back when time permits.

[@bobbbobb4663]

@@Tommy2tone762 Ok then why don’t you show me?

[@nerdbikes3841]

Here comes the inflation. If America was upset at $5 eggs, just wait till they see 100% markups on TVs, phones and 50% hikes on cars.

[@RealElectech]

Who is putting tariffs on TVs? Let's be real, if the Chinese sold cars here without tariffs the American "Big 3" could very well go out of business within a decade. Starting with Stelantis. Tesla will still be here competing with the Chinese and Korean brands.

[@nerdbikes3841]

@ Trump will be putting tariffs on anything made in China. Pretty much all TVs are made in China.

[@scoty_does]

I think im going to unsubscribe from the Chump show this season. The first season of the orange one wasn't very original. Im over the bloviating man child.

[@BTC_Minarchist]

Probably sounded way more clever in your head than when you read it as a post.

[@scoty_does]

@@BTC_Minarchist Chump is a drama queen. Im done with him. MAGA boys that that stand up for him are just virtue signaling and changing nothing.

[@jeffcarroll3831]

This isn't an airport, no need to announce your departure...lol

[@scoty_does]

@@jeffcarroll3831 Yeah.. You are right, just commenting is in part inducing the subject.

[@CarringtonHollister]

We dealt with 4 years of Brandon I’m quite sure you can deal with 4 years of The Don‼️ TRUMP VANCE 2024‼️🇺🇸🇺🇸🇺🇸🇺🇸

[@kevtheobald]

I find it funny those thinking Tesla would be hurt most EV tax rebate programs being cut. Musk has been pushing forward the idea of ending this program. If the tax rebates for buying an EV go away, slow and uncompetitive builders will suffer because they cannot build at a profit. EV costs keep dropping, and if legacy clings to ICE sales to survive, they will perish next decade. The only competition for Tesla seems to be Chinese builders and maybe the Hyundai Group. Tesla will likely dominate future vehicle sales because legacy builders failed to figure out how to make EVs people want at a profit.

[@DavidC-pg6ni]

BMW will also likely succeed. They have the largest percentage of EVs off any Legacy Automakers.

[@kevtheobald]

@DavidC-pg6ni You sure the Hyundai Group is not the largest EV seller of legacy builders? No matter what the case is, I would like to see BMW succeed in the transition to an EV dominate market. They really try to innovate from time-to-time. The i hybrids, 2hich the i3 won the love of owners, but was to small for many and the styling polarizing. The i8 now has a customer following, but expectations were higher on the power and performance side than it was able to deliver. If BMW does go under, that will likely be because the whole German legacy builders group is going under and German officials do not have the resources to bail them out.

[@miraphycs7377]

My guy NIO is still losing money hand over fist they won't survive

[@johnreese3762]

I can't wait until I can get a robot to plug in our Tesla!

[@rp9674]

It would be sad and funny if musk ends up with a brown nose and rabbit ears

[@davidbeppler3032]

Cutting EV subsidies could increase Tesla profits when Tesla raises prices to compete with GM and Ford raising prices due to loss of profits and expanding debt! Tesla could make an extra $15 billion!

[@bobbbobb4663]

Raise prices into declining sales! That bought Econ degree from Penn paying off!

[@graciasthanks4771]

According to Tesla, given that they have the lower production costs, eliminating subsidies would favor Tesla by hurting its competitors more. It would also make hybrids less appealing. I tend to believe Musk when he says he’s OK with eliminating subsidies. People tend to mock him, claiming his opinions are absurd. Yet, Musk continues to prove the mocking crowd wrong. Successful results Trumps opinions.

[@bobbbobb4663]

@ An utter failure per the musings of Supercycle Dan Ives and Cathie Wood. Negative growth and absolutely zero path forward for autonomy. Add in a power hungry CEO, a complete failure of the CyberBust, and disruption from EREVs and Legacy Tesla is going nowhere fast.

[@juliahello6673]

The competition against Tesla is ICE cars, which will benefit from increased sales if subsidies are pulled. Tesla will not benefit from subsidies ending.

[@bobbbobb4663]

@ Short term yes. Long term, EREV’s are going to be the choice of most drivers to alleviate range anxiety. In either case, Tesla has no answer for either. Thus, one reason Musk is adamant that without FSD, Tesla is worth zero.

[@Solihul886]

Clearly a hatchet job video

[@mebran1193]

Wheeee!

[@bradybrown5140]

the pay package was approved by shareholders twice. the case was lawfare, the judge is a disgrace to her profession, and it will be overturned by the Delaware or US Supreme Court.

[@davidbeppler3032]

Ty for correcting them!

[@BTC_Minarchist]

💯

[@georgeburns7251]

I own Tesla stock and I didn’t agree to any pay increase. The court was protecting average America share holders, not the wealthy oligarchs.

[@Señormakey]

The judge found the first time that the board did not do their duty to shareholders and negotiate with Musk for his compensation package, and that the board did not inform the shareholders the extent of his compensation package. The board had another vote and the judge said that they did the exact same thing; no negotiation and no transparency. The case was brought against Tesla by shareholders, the case docket is publicly available, and the judge is operating within normal precedent set from past cases.

[@bradybrown5140]

@@georgeburns7251 - I highly doubt you own TSLA stock but there were 2 proxy votes in favor of the pay package.

[@FlipBoxStudio]

Who writes these scripts? Every episode lately is now back to anti-Elon/Tesla regurgitated BS. While mostly being positive of other brands despite everyone struggling overall. I guess we can assume who really owns this channel…legacy auto and their investors.

[@bobbbobb4663]

Call me when Tesla has positive Y/Y growth and they have a CEO who is less interested in masquerading online in gaming and other non sensical forums. 53 year old man who tries to act 20 years old.

[@Tommy2tone762]

@@bobbbobb4663 you sound like Harrison Ford in 1923! Them damn cars ain’t never gonna work! When are people gonna come to their senses😂😂😂😂

[@bobbbobb4663]

@@Tommy2tone762 Newsflash that long range EREV’s are the future and tiny range EV’s sold by President Elect Special K are ancient.

[@DavidC-pg6ni]

@@bobbbobb4663Tesla is worth more than ALL the Legacy Brands COMBINED. Building out massive infrastructure and Battery Storage. Yeah, GM and Ford going BK in the Next Downturn.

[@bobbbobb4663]

@@DavidC-pg6ni CFO?

[@markmeachen6927]

Suggesting that taking a 38% hit in profits by Tesla ignores that not only can Tesla sustain that kind of a hit, but it would also do a number on Tesla’s competitors, which would suit Tesla fine. 1 + 1 = 2.

[@juliahello6673]

People don’t seem to understand. Tesla cannot ramp fast enough to corner the EV market. It is impossible to ramp something as complicated as automobiles that fast. The competition is with ICE cars, which are already being made. Tesla will be hurt by this.

[@Cyrribrae]

@@juliahello6673 Perhaps, but I wouldn't count out Tesla just because of that. It may be entirely possible for Tesla to ride out the turmoil enough to box out most of its EV competitors in the US (though, for now, we saw the opposite pattern happen in 2024). But... by that same token, Tesla isn't competing with just domestic manufacturers. Tesla taking a 38% hit strongly increases the possibility of it being displaced out of international markets by Chinese and maybe European makers, and that's where a lot of its money is made.. which then could come back and take an even bigger chunk of profits. Too early to tell. Nevertheless, being sanguine about a 38% drop in profits is idiotic. It'd be horrendous news no matter how you slice it. Especially when there's nothing clear coming new in the market to reverse the trend.

[@DavidC-pg6ni]

@@juliahello6673Nonsense. Tesla is doing fine and if ICE vehicles are getting hit with Tariffs for their parts, then EVs will be MORE profitable.

[@DavidC-pg6ni]

@@CyrribraeThis is nonsense. Poor lack of logic. Tesla has plenty of ability to continue to build and produce vehicles and make profit. Legacy automakers do NOT have that ability in the US and China. Clearly more people in the as and China keep buying more EVs every year.

[@Cyrribrae]

@@DavidC-pg6ni um sure. Do you think I was talking about legacy automakers when I talked about Chinese manufacturers? See, personally, I'd like to see American automakers beat the Chinese ones. And I'd hope that was the point of the tariffs.. So. If the result is that the American industry gets decimated (and tesla, already struggling against China in lots of the world, isn't hurt "that bad"), that's not good is it?

[@shawnstangeland3011]

And the carbon credit elimination would destroy Tesla

[@DavidC-pg6ni]

Clearly you’re not good at math. Stop hating and start learning math.

[@shawnstangeland3011]

@ clearly you don’t follow earnings reports

[@jimhaines8370]

A judge in Delaware should not be telling a company not in bankruptcy who to pay how much

[@sammi5281]

Tariffs are a great negotiating tool everyone needs to calm down

[@davidmccarthy6061]

Except there is zero intelligence in the incoming administration to do it correctly.

[@JonathanEspadas-d6o]

When gas and food doubles you idiot Trumpers gonna cry 🤡

[@Supperconductor]

Why when people can indulge in their childish TDS & MDS tantrums? The cult of personality swings in both directions when you're a narcissist.

[@jeffs6090]

If it's actually used for negotiating. However, he isn't talking at all about negotiating. He's just playing his typical strong man self and is going to slap tariffs on anything and everything.

[@sammi5281]

@ he is brilliant business man so I am confident that this will work

[@MyPapagio]

Trumps rhetoric on tariffs is a negotiating tactic. Why are people too stupid to get that? Maybe because dorks like this are on youtube spreading their ignorance.

[@CptnAhmad]

🤡

[@davidbeppler3032]

In Trumps first term he negotiated a 8% tariff on lumber from Canada. No new houses were built. Great tactic!

[@Supperconductor]

@@davidbeppler3032 WTF? Nobody built new houses?

[@georgeburns7251]

And the US ended up paying billions to farmers to make up for the Chinese tariffs on food imports from US.

[@Supperconductor]

@@georgeburns7251 For various reasons, farm subsidies have always been and will always be the norm in US economic policy.

[@erktrek]

Disappointing but not surprising that the pundits still don't understand Tesla... hint: it's not really about autos.

[@Cyrribrae]

What is it about? Auto is 90%+ of the money... so...

[@DavidC-pg6ni]

Of course it is. It EVENTUALLY may not be about autos but that is a decade away from reality. Autos make up the VAST majority of all Tesla Revenue and Profits and will for the rest of the decade.

[@erktrek]

​@@DavidC-pg6ni Tesla is a technology company specializing in Software+Services (AI, embedded software, control systems autobidder, insurance etc), Hardware, and Design+Engineering. On the hardware front their actual focus is to make the product (factory) that makes the products at scale (cars, components, battery packs, batteries, refined lithium etc). While agree that cars currently make up the largest part of their profit it is not their focus or where they are going.. the product (factory) that makes the products can just as easily become alternative cars (Cybercab), bots, ai chips/dojo.. etc. The risk to Tesla is if their realworld AI (FSD) and Bots don't actually work as anticipated.

[@JohnnyBean78]

Why does every new car have to look like it came from fuggin tron? Sickening to look at, 3:22 to name one example.