+++ Now that the updated Porsche Taycan is out offering a larger battery, 4-figure horsepower, a trick suspension and the capability to set lap records at famous tracks, the sibling AUDI E-TRON GT waits in the wings to take the stage. Based on reviews of an early prototype, Audi engineers ladled in more performance and then finessed the delivery of that performance. More powerful motors are going to deliver more horsepower, the final figure’s up for debate; some journalists believe 700 hp is the likely tally, others think 800 hp is the real number; both of those requiring the car’s Boost function to hit. Either would make an impact compared to the 476 hp in the e-Tron GT and 598 hp in the RS e-Tron GT. Based on reports that Audi will add the word ‘Performance’ to the model name, 800 hp seems a more worthy figure. The Taycan Turbo, after all, got a raise from 621 hp to 880 hp. I’m told the new bigger battery carries over, which would up the e-Tron GT’s 93 kWh unit to the 105 kWh pack in the Taycan Turbo trims. When not pushing every watt of charge through the new motors, the pack will give the grand tourer longer legs than the current 496-502 kilometers. Fast-charging performance will improve as well, the maximum charging rate likely to rise from 270 kW to 320 kW. The main event in the handling column is the new active suspension with a Curve Tilting Function. Akin to the Active Ride Control that Mercedes-AMG has built into its latest supercars, the Volkswagen Group suspension bestows independent hydraulic control at each corner. Unlike the AMG version, the Porsche and Audi variant is fully active, not semi-active, in that it can raise the vehicle to a level aspect; this is what the new Curve Tilting Function is tasked with doing. Lifting the vehicle when parked is also part of the job description, enabling an access mode for easier ingress and egress. The Curve Tilting Function works in Comfort mode, not Dynamic, when visceral driving sensations can help drivers make better judgements at speed. As for cosmetic changes, Audi might have outdone itself for subtlety, which is saying something. On the RS, we can expect much larger front side intakes, a grille panel with a more pronounced hexagon pattern and a new rear diffuser design. +++
+++ Buying a car can be fun and bring a lot of freedom, but things can go sideways when it comes time for repairs. Some car brands are better than others, however, and Consumer Reports recently ranked the LEAST EXPENSIVE and most-expensive brands available in the United States for owners to repair. There are few surprises on this list, but the cheapest new car and the runner-up might come as a shock. Tesla ($4.035 repair costs) and Buick ($4.900) were the cheapest new car brands to maintain and repair over 10 years, followed by Toyota ($4.900) and Lincoln ($5.040). Next came Ford ($5.400), Chevrolet ($5.550), Hyundai ($5.640), Nissan ($5.700), Mazda ($5.800) and Honda ($5.850). Consumer Reports noted that maintenance costs for some brands can look deceiving, as many offer free maintenance for a period after the purchase. New-car warranties also play a role, with the powertrain coverage spanning 4 or 5 years and 80.000 or 100.000 kilometres, depending on the company. It’s also worth noting that Tesla only sells EVs, which don’t require engine air filters oil changes, and some other routine maintenance, lowering their average costs. +++
+++ Car maintenance has got to be one of the least fun things you can do with your free time, right behind going to the dentist and filing your taxes. However, depending on the brand you buy, your time spent at the shop could be much more than you bargained for. Consumer Reports’ new study on the MOST EXPENSIVE and least-expensive-to-maintain car brands available in the United States found that European car companies are most likely to break your wallet with costs nearly five times that of the automakers at the other end of the spectrum. Land Rover had the highest ten-year maintenance costs, at an average of $19.250. Porsche was second worst with $14.090 in costs. Next came Mercedes-Benz ($10.525), Audi ($9.890), BMW ($9.500), Volvo ($9.285), Infiniti ($8.500), Acura ($7.800), Mini ($7.625) and Subaru ($7.200). The Euro brands at the “top” of this list aren’t all that surprising. Land Rover has consistently landed as one of the most expensive vehicle brands to maintain for years now, though Porsche is generally viewed as being one of the more solid performance brands. That could suggest that some models don’t always require more repairs, but the fixes they do need are significantly more expensive. If you own one of the more expensive brands to maintain and you’re worrying as you read this, there are a few things you can do to prolong your vehicle’s life and minimize unnecessary maintenance costs. The first is to follow the maker’s suggested maintenance periods, changing your oil, rotating tires and doing all the “boring” stuff before it becomes a problem. It’s also a good idea to take care with the way you drive, avoiding potholes, accelerating gently and trying not to abuse your brakes. Finally, don’t modify your vehicle. Car companies spend billions on research and development, and most know better about how a vehicle is meant to operate than you do in your garage with third-party parts. Routine maintenance is a great way to avoid costly repairs over time, as it’s much cheaper to catch a problem before it starts causing other issues. Check your oil, rotate your tires and avoid driving like a wild person, and you’ll likely fare much better than others, even if you own one of the scarier-to-maintain brands. +++
+++ Still best known to many for its dinky city runabouts, SMART is preparing to launch its largest model yet: a new electric mid-size SUV called the Smart #5. According to Smart, the #5 “goes beyond urban boundaries” and is ready for “any kind of outdoor activity”. We’ll get our first glimpse of the potential Mini Countryman rival at the Beijing Motor Show, when the Smart Concept #5 is revealed on 25 April, before the road-going version makes its debut in the second half of 2024. We can see from some of the sketches Smart has shared that the Concept #5 will be more square-jawed and boxy than the softer, more flowing design of the Smart #1. The wheelarches will be pronounced like on some 4x4s, while the front end and tailgate are almost vertical. Feeding into the adventure-ready character, the Concept #5’s roof rack also features a light bar, inflatable chairs, a folding shovel and recovery boards in case you get stuck in tough terrain. The extremely short overhangs at the front and rear will help maximise interior space, with Smart touting this as its “most spacious and versatile vehicle to date”. Considering how few changes were made to the Smart #1 when it was turned from a concept into the road car, I expect the Smart Concept #5 will be almost identical to the production-ready model we’ll see later this year. The new Smart #5 will probably use the same Sustainable Experience Architecture (SEA) that sits underneath the Smart #1, its more rakish sibling the Smart #3 and the Volvo EX30, among others. The platform can accommodate single-motor, rear-wheel drive and dual-motor, all-wheel drive configurations, as well as various battery sizes. We may also see a high-performance Brabus version of the Smart #5, as with the #1 and #3 it will sit above. +++
+++ Elon Musk has kept investors hanging since he issued cryptic social posts following a report on April 5 that TESLA had scrapped its plans for a $25,000 ‘Model 2′ electric vehicle. “They are lying”, Musk wrote in one post that day, without identifying any inaccuracies. Nearly 2 weeks later, with no concrete updates from Musk, Tesla investors are restless. Some are demanding clear answers on the Model 2, along with Musk’s plans for arresting a sales slide amid falling electric-vehicle demand globally and rising competition from cheap Chinese EVs. Tesla’s move to lay off more than 10% of its global workforce and a handful of senior executives added to shareholder jitters. “The street wants and needs answers” when Tesla holds an earnings call scheduled for this Tuesday, wrote analysts for Wedbush Securities after the layoffs were revealed. They cited a months-long “horror show” of bad Tesla news and called for a clear “strategic vision … with Model 2 a key component”. Wedbush Senior Equity Analyst Dan Ives told that Musk’s silence on the Model 2 was “gut-wrenching” to Tesla investors “because it’s so instrumental to the growth story”. Ross Gerber, president and CEO at Gerber Kawasaki Wealth & Investment Management and a Tesla investor, put it more bluntly. “There’s no point in even investing in Tesla if they don’t come out with this car”, he said. The Street also wants clarity on another key aspect of the April 5 story: That after ditching the affordable-car project, Tesla plans to move forward with a self-driving robotaxi on the same small-car platform. Another Musk post that same day raised as many questions as answers: “Tesla Robotaxi unveil 8/8”, he wrote, implying some version of the self-driving vehicle might be ready by August, but giving no details. Industry experts call the notion that Tesla will quickly produce a road-ready robotaxi unlikely, given the steep engineering and regulatory challenges. Tuesday evening, Musk posted again on his social media site X about Tesla’s focus on self-driving vehicles: “Not quite betting the company, but going balls to the wall for autonomy is a blindingly obvious move. Everything else is like variations on a horse carriage”. Since the April 5 report, some investors have cheered the idea of focusing on robotaxis instead of the Model 2. Musk’s 2 initial posts helped reverse losses in Tesla’s stock, which dropped 6% after the report on the affordable model. Still, Musk’s remarks left investors guessing over what vehicle Tesla plans to build next and, critically, on what timeline. The stock dropped again with the news of the layoffs, and is now down more than 45% since a recent peak in July. Tesla remains the world’s most valuable automaker with a market capitalization of about $500 billion, higher than that of Toyota, the world’s biggest automaker by volume. The April 5 report on the Model 2 cited 4 sources with knowledge of Tesla’s strategy and company messages describing the project’s termination. The company messages show a person described by a source as a Model 2 program manager telling employees not to inform suppliers “about program cancellation”. “You all have done incredible work and those learnings will carry over into all future programs that you work on”, the manager wrote, advising staffers to “tie things off and document things properly” and handle “remaining items for us to close out before moving on”. With no answers from Musk, analysts have issued a flurry of advisories on Tesla’s growth prospects both with the Model 2 and without it. An analysis from Deutsche Bank, echoing others, noted: “we await clarity from Tesla”. It described a Model 2 cancellation as “completely thesis-changing”, saying it would cause investors betting on Tesla’s mass-market growth to throw in the towel, making way for “AI/tech investors with considerably longer time horizons” for robotaxi development. Wedbush sees a bleak outlook without the Model 2. Wedbush analysts wrote last week that killing the vehicle would be a “debacle” for Tesla’s growth prospects and that a robotaxi was no “magic model” to replace it. Musk had said as recently as January that Tesla would deliver the Model 2 in the second half of 2025, confirming an exclusive Reuters report on those plans. “For the company to do a 180 degree-turn in the course of 3 months would be ‘Twilight Zone’ ”, said Ives, of Wedbush. Tesla, Ives said, was already late in launching the development of the long-promised affordable model. “A lot of this is self-inflicted – no adult in the room”, he said. Currently, the cheapest Tesla is the Model 3 sedan, which sells at a U.S. price of about $39,000. The automaker has cut prices for the 3 and the Model Y as electric-vehicle demand has softened worldwide and China EV makers have dominated the entry-level sector. The Model 3 and Model Y: Tesla’s only current volume sellers, are aging and due for redesigns. Tesla has struggled to produce its more expensive and experimental Cybertruck in volume, in part because of manufacturing issues with its innovative 4680 battery. Tesla told investors earlier this month that sales of all its vehicles had dropped by 8.5% in the first quarter, the first decline in nearly 4 years. Chinese EV makers such as BYD are already doing a brisk business in EVs selling at prices as low as $10.000 in China. Chinese smartphone and appliance maker Xiaomi shocked the industry this month with its first car, a sport sedan priced at about $30.000 that racked up more than 100.000 orders in less than a week. Some investors welcome the idea of canceling the Model 2 to focus on robotaxis. One fan is Gene Munster, managing partner at Deepwater Asset Management, which owns Tesla shares. Munster said he doesn’t believe Musk actually denied the April 5 report, as many investors assumed. “He didn’t mention anything about Model 2”, Munster said. “He just said the report is false. But he calls everybody liars”. That elusiveness, combined with Musk’s subsequent “robotaxi unveil” post, leads Munster to believe Tesla is in fact shelving the Model 2 to focus on a robotaxi; a strategy he applauded. Munster called the move “brilliant” and “gutsy” because it could vault Tesla to the next generation of transportation. Autonomous vehicles, he said, will be “a higher-margin business by orders of magnitude”. Jake Bleicher, portfolio manager at Carson Wealth Management Group, a Tesla investor, agreed that Tesla could potentially leap ahead of Chinese EV rivals with a truly autonomous vehicle. But he said Musk should have something concrete to unveil in August, given the promise implied by his “8/8” post. Musk has vowed for years that self-driving Teslas are right around the corner. “If August 8 rolls around and Tesla says: ‘We’re going live with robotaxi in 5 or 6 cities’, I think that’s enough to get the stock moving”, Bleicher said. If the progress is less tangible, he said, investors “will be scared”. “Especially with the profit margin on Tesla vehicles dropping dramatically over the last 2 years”, Bleicher said, “it’s become less about the vehicles and more about the promises that Musk makes”. +++
+++ TOYOTA has been slower than most jumping into the EV game, but its approach has looked more competent than most others’ as time has progressed. That said, the Japanese automaker isn’t ditching electric vehicles, and a new report suggests that one of its most popular family haulers could be going electric soon. The Highlander is reportedly moving to an all-electric configuration, which will lead to a Lexus variant called the TZ. Toyota would leave the Grand Highlander with internal combustion engines, though more hybrid options are likely. David Christ, Toyota’s U.S. general manager, told that the automaker would also expand its electrified offerings with new plug-in hybrid models. “We’re going to expand plug-in availability throughout the lineup fairly quickly”, he said. Toyota’s efforts would electrify all models except the GR86 and Supra. The GR Corolla’s time on the market is likely limited and may not cross paths with the new hybrid options. American production for those vehicles would bring tax credit eligibility, softening what are quickly becoming very expensive prices for Toyotas. The automaker may also abandon its BZ (Beyond Zero) naming scheme, though reports point to a new, smaller BZ3X to join the BZ4X soon. Beyond being hard to type, the confusing titles aren’t as memorable as other names in its catalog, so the Highlander will likely sport a more familiar badge. Christ did tell the company would develop better BZs in the future, though, so we might not be done with the silly names just yet. Toyota has held firm in its broad approach to electrification, offering hydrogen fuel cell models and committing heavily to hybrids. Even so, its new CEO, Koji Sato, has pushed for changes to platforms in development, causing some internal confusion. +++
+++ Sales of Chinese smartphone maker XIAOMI ’s first electric car have been 3-5 times higher than expected, CEO Lei Jun said, as the company began delivering standard versions of the so-called SU7 to buyers ahead of schedule. Lei, Xiaomi’s founder, made the comments during a 2-hour livestream on Douyin, the Chinese equivalent of TikTok, that garnered over 34 million viewers. Xiaomi launched its car, which draws styling cues from Porsche, late last month, entering a crowded China EV market with an attention-grabbing price tag: under $30.000 for the base model, which is $4.000 cheaper than the base model of Tesla’s Model 3 in China. Xiaomi has deep pockets and has said it expects to lose money on the SU7. It started some deliveries from a limited batch of 5.000 cars it had already produced, called the “Founder’s Edition”, equipped with additional accessories for early buyers on April 3 but marked the beginning of deliveries of the SU7’s standard version in Beijing and Shenzhen. Lei said Xiaomi had brought forward deliveries of its standard version by 12 days. Asked by online users about future development plans, he said Xiaomi had no plans to build off-road vehicles and would primarily focus on the SU7. “As for the software, I require it to be quickly iterated at least once a month. If there are any problems, they should be improved as soon as possible”, he said. Besides the Standard version, Xiaomi previously said it plans to start deliveries of Max models this month and Pro models by the end of May. Lei was repeatedly asked during the event whether Xiaomi was planning a sports utility vehicle but did not take the question. He was accompanied during the livestream by Wei Jianjun, CEO of Chinese automaker Great Wall Motor, who complimented Xiaomi on having been able to produce such a car within three years. The debut of Xiaomi’s EV has caused waves within the Chinese market, with other Chinese EV brands with comparable models announcing price cuts and subsidies after its launch. While the world’s largest auto market is challenging for newcomers due to a cut-throat EV price war and slowing demand, analysts have said Xiaomi has deeper pockets than most EV startups and its smartphone expertise gives it an edge in smart dashboards; a feature prized by Chinese consumers. Analysts predict that losses on the SU7 could be substantial. Based on a projected volume of 60.000 units this year, Citi estimates the SU7 could generate a net loss of 4.1 billion yuan, or an average 68.000 yuan per car. +++
