Key Points
- 50% of Tesla owners are switching back to gas cars, indicating ongoing dissatisfaction.
- Stellantis struggles with limited U.S. brands and declining Jeep sales in a competitive SUV market.
- High car loan interest rates are hurting sales, especially for low credit buyers.
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In this discussion, Lee and Doug delve into the surprising statistic that 50% of Tesla (NASDAQ: TSLA | TSLA Price Prediction) owners are trading in their vehicles for gas-powered cars, a notable improvement from 70% five years ago. This trend highlights ongoing issues with EVs, such as the lack of charging stations and public dissatisfaction with government spending on EV infrastructure. They also discuss the challenges facing Stellantis, particularly with brands like Dodge and Chrysler, which are struggling to maintain market share in an increasingly competitive SUV market. Lee and Doug suggest revisiting these topics when Q3 numbers are released, especially considering the impact of high-interest rates on car sales and the potential for new products or discounts to influence the market.
Transcript:
Well, it’s interesting.
There was a study that came out yesterday that said that 50% of the people who trade in a Tesla trade it in for a gas-powered car.
Now, to me, that is stunning.
Now, it’s gotten better.
Five years ago, the number was closer to 70%, so it’s coming down.
But it really shows that even people who get what they call initial adopters, people who bought these things early, they still buy them now.
They don’t want them.
They bought them.
It’s really great.
And then they say to themselves, it’s just not what I want for whatever reason.
There’s no charging stations.
You know, there was a big, you know, tons of government waste to build charging stations, and like eight got built for billions of dollars.
It’s ridiculous.
And it’s such a boondoggle that the American public looks at this, and they go, we have far bigger problems than this.
Why are we so focused on the EV?
We know why.
Yeah.
One of the things I don’t think people understand is that Stellantis, which owns Chrysler, Jeep in the United States, there are very few brands left that that company has in the U.S.
I mean, it’s like Dodge.
Chrysler has like two models or something.
Dodge has a handful, and I think they’re going to cut back some on that.
Well, Dodge sells – the Ram truck sells good.
You know, I see them a lot in my neck of the woods here in the south.
And, you know, they’re probably a solid second to the F-150.
But other than minivans, do they have anything else?
No, they’ve got the Jeep brand, but it’s a lot of Jeep.
Of course, I bet on Dodge itself.
Right.
No, they don’t.
Chrysler, I think at this point, maybe just minivans.
And it looks like they’re having real trouble selling Jeeps.
Now, every time you turn around, there are more and more SUVs.
So I’m not shocked that, you know, Jeep’s having a problem selling, getting unit sales, because that’s become an ultra-competitive part of the market.
Yeah, and Jeep is almost, there’s almost like a Jeep cult, you know, for lack of a better word.
If your dad owns one, you own one or, you know, something to that nature.
Maybe that’s starting to fade somewhat, you know, as we go further and they get more expensive.
There’s a good reason for us to come back to this when Q3 numbers come out.
Yeah.
Because two things are happening right now.
Interest rates for car loans are still extremely, extremely high, which I have got to assume is banging on sales.
Well, especially for the low credit score buyer.
Yeah, for the low credit score buyer.
The other thing is, is we will see between now and the end of the year, whether via discounts or new products or two or three things that would drive sales.
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