March 25 -

By Nick Carey, European Autos Correspondent

Greetings from London!

After weeks of on-again-off-again tariffs threats from the White House, you have to feel sorry for those whose job it is at automakers to keep track of what might, or might not, be subject to tariffs, and from where.

That moving target is focused on April 2 – for now – where reciprocal tariffs on U.S. car imports are due to be imposed. However, U.S. President Donald Trump says not all the new tariffs will be announced then and "a lot of countries" may get a reprieve.

Well, that clears that up.

Meanwhile, Hyundai decided it was time to go big or go home, announcing $21 billion in U.S. investments at the White House – including a new steel plant in Louisiana – which Trump won by more than 12 points in November’s election.

What is not clear is how much of that is new, or part of already announced investments. But it did allow Trump to declare: “Money is pouring in.”

Which brings us to today’s Auto File…

• More bad news for Tesla

• Changan drives into Europe

• BYD juggernaut rolls on

Tesla takes some more hits

In the 22 years since it was founded, Tesla has experienced years of crisis, with no shortage of stock jumps and occasional slumps.

And each slump is unique.

Tesla has now seen two consecutive months of plunging sales and market share in Europe. Traditional carmakers Volkswagen and BMW, once left in Tesla’s dust, both outsold the EV maker in February in Europe.

Tesla also had to recall just over 46,000 Cybertrucks in the United States - almost every vehicle it has sold there - to fix an exterior panel that can detach while driving.

This merely serves to illustrate that the electric pickup, which Elon Musk originally unveiled in 2019 accompanied by a video of it besting a Ford F-150, has not been the success he claimed it would be.

I asked the clever folks at market research firm Cox Automotive how the Cybertruck stacks up against other models on the U.S. market and the answer was it “does well for an EV pickup truck.” But Ford sold more F-Series pickup trucks in a single month in February (58,310) than the Cybertruck has sold since it launched.

Oh, and there’s more, with a record number of Tesla trade-ins amid a wave of protests against Musk’s work for Trump.

Now, Tesla has been written off before only to bounce back stronger than ever, confounding its detractors.

And it’s fair to say that the refreshed version of the Model Y may well help sales rebound.

But what makes this particular slump different from others is that Musk himself seems less invested in a comeback.

Back in 2018 when Tesla was going through “production hell” as it scaled up assembly of the mass-market Model 3, Musk was famous for going all-in and sleeping on the factory floor to make it work.

Other than getting his new friend President Trump to use the power and pomp of the presidency to hawk Teslas at the White House, Musk seems much more interested in Washington than Austin, Texas.

If Tesla reports poor first-quarter results next month, watch for far more vociferous complaints from investors about Musk’s absence.

Recommended reading:

• FBI probing "violent activity” toward Tesla

• Kyle Vogt raises $150 million for robotics startup

• Lamborghini, Mercedes-Maybach’s Indian expansion

Changan joins the fray in Europe

Changan belatedly became the latest of the big Chinese automakers to launch in Europe, saying it will enter 10 markets across the continent this year with EV models.

The third-largest Chinese automaker by sales, Changan joins BYD, Geely and Chery in trying to break through in Europe’s competitive market.

The group showcased its electric SUV Deepal S07, its first model for the European market, which starts at 45,000 euros ($48,775), which will be followed by the Changan E07 and some hybrid models in 2026.

Changan also plans a sales and services network across Europe, with more than 1,000 dealerships. 

Like its Chinese rivals, Changan has grown rapidly and last year was the world’s No. 12 global automaker.

But like those other Chinese automakers, Changan will have to fight for sales because few Europeans have ever heard of it.

BYD, on a roll

BYD posted a 73.1% jump in fourth-quarter net profit as China’s No. 1 automaker continues to go from strength to strength.

Unlike rival Tesla, whose shares are down 31% year-to-date, BYD’s are up 31%.

The Chinese company has been on a roll, overtaking Volkswagen in 2024 to become China’s top-selling automaker, rolling out cheaper models as it leads the crowd in a brutal two-year price war in the world's largest car market.

BYD has also stunned the industry in recent weeks by unveiling a new  super-charging  EV technology platform and announcing it will offer  smart driving features  as standard on even its cheaper models.

The company grew more than 40% to become the world’s No. 7 automaker in 2024. If it matches that pace in 2025, it could take the No. 3 spot.

Spain to build Leapmotor B10

Stellantis and Chinese partner Leapmotor will invest $200 million in a Spanish factory to produce the B10 electric crossover for the European market from 2026, China’s embassy in Spain says.

Leapmotor’s B10 is the first of a B series of EVs for overseas markets, and Stellantis says the model will bring "high-tech, affordable EVs" to consumers outside China.

Leapmotor and Stellantis  scrapped  the original plan to make the B10 in Poland after the Chinese government told automakers to stop investing in European countries that supported imposing tariffs on Chinese-made EVs.

Fast Laps

General Motors  will use artificial intelligence chips and software from Nvidia to develop autonomous vehicle technology for its vehicles and improve workflow at its factories.

Chinese automakers Zeekr and Xpeng said they will start selling EVs with technology that allows drivers to drive hands free.

Volkswagen sold a 2.2% stake in Traton for 360 million euros to promote better trading in shares of its commercial-vehicle subsidiary.

Potential U.S. tariffs on European-made products could hit revenue at luxury carmaker Lamborghini, its CEO said.

Bentley posted its lowest annual revenue since the COVID pandemic struck in 2020 as the British luxury automaker faced a tough global market in 2024, but said it was pursuing "value over volume."

Stellantis is offering a new round of buyouts for some of its U.S. factory workers as the automaker looks to cut costs following a difficult 2024.

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(Editing by Mark Potter)