Why Tesla got 'brownie points' during a rocky week for autos
It's been a tumultuous week for the auto industry as General Motors (GM) was downgraded by Wolfe Research, Volkswagen (VOW3.DE, VWAGY, VOW.DE, VWAPY) is considering shuttering some of its plants, and Tesla (TSLA) announced plans to release its Full Self-Driving technology in China and Europe in the first quarter of 2025. Autoblog editor-in-chief Greg Migliore joins Catalysts to break down some of the headlines and how some of the biggest names in the industry are performing: "It's a really interesting week for Tesla. We saw some pretty big market movement Tuesday and Wednesday, and it seemed like they almost got credit for not doing anything. Kind of weird, like as we saw with General Motors, that the Volkswagen potential plant closures. I think investors and some many consumers remain confident in just the idea of Tesla, the brand of Tesla. I think, for many people, they are the default EV maker. They're the first point of consideration when you're considering an EV. So I think they almost just kind of got some like brownie points simply by not doing anything wrong." He notes that while Volkswagen is struggling, it is not "in as rough a shape as General Motors and Chrysler were back in [2009]." Migliore believes the company is currently "stretched out pretty thin" and that it is likely dealing with overcapacity. He adds that Volkswagen hasn't closed a factory since 1988, so the news of it considering the move is "surprising." While the company weighs shuttering factories, Migliore believes layoffs are unlikely. Stellantis (STLA) announced that it is scaling back the production of its Jeep Wrangler and Grand Cherokee. Migliore explains that Jeep sales are down 9% this year despite the brand being a "cash cow" and a catalyst for Stellantis over the last 50 years. "It needs a little bit of attention. It needs a little bit of TLC. Wrangler sales are down, Gladiator sales are down... So the Jeep brand needs to put up some good numbers," he adds. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
