As we approach the end of 2024, the electric vehicle (EV) industry continues to evolve at a rapid pace, bringing forth significant developments, partnerships, and market strategies. This week's news highlights Tesla's latest incentives, the merger discussions between Honda and Nissan, troubling signs for Fiat's EV sales, and new offerings from Hyundai and Kia.
In a bid to clear out inventory before year-end, Tesla is ramping up its promotional efforts. Recently, the company introduced complimentary supercharging for buyers of the Model S and X. Now, for those purchasing fully loaded Foundation Series Cybertrucks from existing stock after December 27, 2024, Tesla offers free supercharging for the duration of vehicle ownership, although the offer excludes business and used vehicle orders. This move replaces the previous PowerShare Hardware installation incentive, raising questions about whether these tactics will help Tesla secure record global sales amid increasing competition and a slowdown in EV demand growth.
One of the most noteworthy developments this week is the memorandum of understanding signed between Honda and Nissan, aiming for a potential merger that could create the world's third-largest automaker by sales volume, following Toyota and Volkswagen. If finalized, this joint venture will focus on a new holding company set to debut in August 2026.
The two manufacturers have been collaborating since early 2024 on the development of a next-generation software-defined vehicle platform, while also exploring shared battery supply chains, especially focusing on resources from their joint efforts with LG Energy Solutions. Given the struggles of Nissan's Leaf and Honda’s limited EV offerings, this merger could provide the scale and resources needed for a competitive future.
On the production front, Stellantis has extended the halt on manufacturing the Fiat 500e and certain electric Maserati models due to continued low demand. The company cited uncertainty in European EV sales as a significant motivating factor for this delay. In Colorado, some dealerships are resorting to enticing lease offers for the Fiat 500e, which has had poor sales numbers—around 500 units in the U.S. To put this into perspective, the Fiat 500e’s price point and technological limits seem to have left it struggling against competitors with more appealing options, such as the Chevrolet Equinox EV.
In a positive move for convenience, Hyundai announced it will provide free North American charging standard adapters to EV customers beginning in Q1 2025. Owners of the Ioniq 5, Ioniq 6, and Kona Electric vehicles purchased or leased before January 31, 2025, will be eligible for this complimentary adapter. The initiative aims to enhance the ownership experience for Hyundai EV users, with further support from its luxury brand Genesis. Kia, another sister brand, has concurrently promised to provide complimentary KNX adapters.
The week’s news illustrates the increasing complexity and competition within the EV market as companies grapple with supply chain challenges, evolving consumer preferences, and the need for consolidation amid an expanding landscape. With major automakers restructuring and partnering for greater efficiency, the coming months and years will likely usher in pivotal changes as the industry adapts to a maturing market. The outcomes of these strategic maneuvers, especially for Honda, Nissan, and Fiat, remain to be seen as they position themselves for an electrified future.
...As always, stay tuned for next week's updates in the continuously transforming landscape of electric vehicles. Happy New Year and drive electric!
Part 1/6:
Weekly EV News (December 29, 2024)
As we approach the end of 2024, the electric vehicle (EV) industry continues to evolve at a rapid pace, bringing forth significant developments, partnerships, and market strategies. This week's news highlights Tesla's latest incentives, the merger discussions between Honda and Nissan, troubling signs for Fiat's EV sales, and new offerings from Hyundai and Kia.
Tesla's Year-End Incentives
Part 2/6:
In a bid to clear out inventory before year-end, Tesla is ramping up its promotional efforts. Recently, the company introduced complimentary supercharging for buyers of the Model S and X. Now, for those purchasing fully loaded Foundation Series Cybertrucks from existing stock after December 27, 2024, Tesla offers free supercharging for the duration of vehicle ownership, although the offer excludes business and used vehicle orders. This move replaces the previous PowerShare Hardware installation incentive, raising questions about whether these tactics will help Tesla secure record global sales amid increasing competition and a slowdown in EV demand growth.
Honda and Nissan's Strategic Merger
Part 3/6:
One of the most noteworthy developments this week is the memorandum of understanding signed between Honda and Nissan, aiming for a potential merger that could create the world's third-largest automaker by sales volume, following Toyota and Volkswagen. If finalized, this joint venture will focus on a new holding company set to debut in August 2026.
The two manufacturers have been collaborating since early 2024 on the development of a next-generation software-defined vehicle platform, while also exploring shared battery supply chains, especially focusing on resources from their joint efforts with LG Energy Solutions. Given the struggles of Nissan's Leaf and Honda’s limited EV offerings, this merger could provide the scale and resources needed for a competitive future.
Part 4/6:
The Impending Challenges for Fiat's EV Line
On the production front, Stellantis has extended the halt on manufacturing the Fiat 500e and certain electric Maserati models due to continued low demand. The company cited uncertainty in European EV sales as a significant motivating factor for this delay. In Colorado, some dealerships are resorting to enticing lease offers for the Fiat 500e, which has had poor sales numbers—around 500 units in the U.S. To put this into perspective, the Fiat 500e’s price point and technological limits seem to have left it struggling against competitors with more appealing options, such as the Chevrolet Equinox EV.
Hyundai's New Charging Adapter Incentive
Part 5/6:
In a positive move for convenience, Hyundai announced it will provide free North American charging standard adapters to EV customers beginning in Q1 2025. Owners of the Ioniq 5, Ioniq 6, and Kona Electric vehicles purchased or leased before January 31, 2025, will be eligible for this complimentary adapter. The initiative aims to enhance the ownership experience for Hyundai EV users, with further support from its luxury brand Genesis. Kia, another sister brand, has concurrently promised to provide complimentary KNX adapters.
Conclusion
Part 6/6:
The week’s news illustrates the increasing complexity and competition within the EV market as companies grapple with supply chain challenges, evolving consumer preferences, and the need for consolidation amid an expanding landscape. With major automakers restructuring and partnering for greater efficiency, the coming months and years will likely usher in pivotal changes as the industry adapts to a maturing market. The outcomes of these strategic maneuvers, especially for Honda, Nissan, and Fiat, remain to be seen as they position themselves for an electrified future.
...As always, stay tuned for next week's updates in the continuously transforming landscape of electric vehicles. Happy New Year and drive electric!