 |
|
|
|||||
General Motors, the largest automaker in the U.S., announced its second-quarter financial results on July 22. The report was, overall, a gloomy tale of the impact of President Trumps tariffs, which, the company said, cost it more than a billion dollars this past quarter. But while GMs total profits fell by more than a third in Q2, the company did point out one bright spot: a major spike in EV sales, launching it closer to true competition with Tesla. In its investor relations call, GMwhich operates the subsidiary brands Buick, GMC, Chevrolet, and Cadillacsaid its EV sales more than doubled from April to June. Meanwhile, early this month, Tesla reported a 13% decline in vehicle deliveries for its second quarter, one of the largest quarterly declines in the companys history and its second quarterly decline in a row. In its earnings call on July 24, the company reported its revenue was down more than $3 billion year-over-year (though the company also claimed a newer, cheaper version of the Model Y would soon be available). An analysis by the data collection firm Cox Automotive published on July 14 found that while Tesla still solidly holds the title of the U.S. EV markets largest mover, GM has charged past Ford and Hyundai to snag the No. 2 spot. With models like the Chevy Blazer and Chevy Equinox, the automaker is quietly encroaching on Teslas dominant market spot. 2025 Blazer EV [Photo: Chevrolet] A tale of Teslas (declining) dominance Tesla has long outpaced its competitors in the American EV market, but the gulf that once separated the brand from all others has been slowly closing over the past several years. In 2020, Tesla controlled nearly 80% of the U.S. market, based on data from Experian. By 2022, that was down to 65.4%, followed by 55% in 2023. This year, per Cox Automotive, that share continues to decline, hovering around 45% as of July 11. In a press release, Cox Automotive stated, Teslas many issues do not require a full rehashing here: Suffice it to say, the hyper-competitive EV market is providing the troubled automaker no relief. Part of Teslas market share decline can certainly be attributed to the brands laundry list of reputational blows this year, namely concerning CEO Elon Musks ongoing feud with Trump. But as Cox Automotive hints, another factor is broadening competition: Since 2020, Ford, Honda, Hyundai, Kia, Lexus, and other automakers have introduced countless new EV models. GM, in particular, has been dedicating greater resources to its fleet of electric vehicles. The company now sells 12 different EV models across its four brands, which accounted for about 15% of the U.S. EV market in the second quarter of 2025triple the share of both Ford and Hyundai. Of GMs EVs, its top-selling models were the Chevy Equinox and Chevy Blazer, which sold 17,420 units and 6,549 units, respectively. The Equinox has gained significant traction for its relatively low cost, which starts at around $35,000. These numbers are far behind those of Teslas ultra-popular Model Y, which shipped 86,120 units in the second quarter. Still, Chevrolets EV sales alone have shown 130%-plus year-over-year growthsignaling that GM may be on an upward trajectory compared to Teslas current slump. GM CEO Mary Barra reinforced that trajectory on a July 22 earnings call, sharing that profitable EV sales are now the companys North Star. We are growing in EVs because we have a strategic portfolio of vehicles that people love for their design, performance, range, and value, she said. [Photo: Chevrolet] An uncertain path ahead Despite GMs major EV success of late, the new EV market saw an overall year-over-year decline. Stephanie Valdez Streaty, senior analyst at Cox Automotive, said in its press release that the lower sales underscore the markets ongoing challenges, as growth in the auto business ebbs and flows on consumer demand, and are a sign of a more mature EV market. Used EV sales, on the other hand, quietly flourished, surpassing a record-breaking 100,000 units in the second quarter. With availability growing and incentives for new EVs expected to fall, the used EV market maygrow faster in the quarters ahead, Cox Automotive reported. For market analysts, the elephant in the room is Congresss recent approval of new spending legislation that will end tax credits on new or used EVs beginning September 30. In light of this change, several experts have predicted that EV sales are likely to see a spike in the interim, followed by a noticeable decline starting in October. Cox Automotive takes a slightly more conservative stance, predicting that new EV sales will continue to expand in the U.S. compared to last year, but at a much reduced pace. With government-backed incentives set to end in September and economic pressures mounting, the second half of the year will be a critical test of EV demand, Valdez Streaty said. Q3 will likely be a record, followed by a collapse in Q4, as the electric vehicle market adjusts to its new reality.
Category:
E-Commerce
Welcome to AI Decoded, Fast Companys weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter every week here. With the AI Action Plan Trump pays back his Silicon Valley allies The Trump administration on Wednesday released its AI Action Plana 28-page blueprint designed to accelerate Americas AI industry and extend its global influence. Authored by Secretary of State Marco Rubio, AI Czar David Sacks, and science and technology adviser Michael Kratsios, the document outlines a suite of tech-friendly directives, ranging from discouraging state-level AI regulation to opening public lands for new data center construction. That hands-off approach reflects the Trump administrations broader stance toward tech: minimal regulation in exchange for political support. To that end, the action plan directs all federal agencies to delete regulations from earlier administrations that could unnecessarily hinder AI development or deployment. Fighting state AI laws The plan doesnt reprise the ban on state AI regulation that was struck from the One Big Beautiful Bill Act as some had feared. But it tries to frustrate state AI regulation by instructing federal agencies to condition funding on how friendly the states regulatory environment is to AI R&D. The plan also issues a vague threat against states by asking the FCC to look at how state AI regulations might interfere with the agencys ability to carry out its obligations and authorities under the Communications Act of 1934. (That Act established the FCC and gave it control of broadcast licenses, wireless spectrum, and compliance enforcement.) The Trump administration also wants to shrink the role of the Federal Trade Commission (FTC) in protecting consumers from the excesses of the tech industry. The AI plan asks the FTC to modify or set-aside any final orders, consent decrees, and injunctions against tech companies that might unduly burden AI innovation. Further, it asks the FTC to review all investigations begun during the Biden years to ensure that they do not advance theories of liability that unduly burden AI innovation. Readying the grid for AI Anthropic estimates the U.S. power grid will need an additional 50 gigawattsroughly the output of 50 Hoover Dams, or enough to power 40 million homesby 2027 to meet the energy demands of new data centers. The Trump administration appears keenly aware of this challenge. The new plan renews a Biden-era initiative asking agencies that manage federal lands to identify sites suited to large-scale development of data centers. Interior Secretary Doug Burgum has been promoting this idea for months, noting that his agency controls around 500 million acres of public lands and estimates $8 trillion in coal reserves beneath them. Could the U.S. decide to expand production of dirty fuels like coal in the interest of powering new AI data centers? The plan doesnt specify, saying only that the U.S. must prevent the premature decommissioning of critical power generation resources and explore innovative ways to harness existing capacity. It also advocates for investment in alternative power sources like geothermal, nuclear fission, and nuclear fusion. It wasnt too long ago that OpenAI CEO Sam Altman was urging the Senate to regulate AI. Now, most in the AI space warn that any binding regulations on how companies develop AI are premature and likely to nip innovation in the bud. Some even argue that it would be immoral to slow down AI R&D because the technology might soon help cure cancer or eliminate poverty. Trumps AI plan is clearly an expression of that world view, and the fulfillment of a promise he made to the tech industry when campaigning for a second term. The GOPs One Big Beautiful Bill Act will make big tech companies flush with cash Analysts from Morgan Stanley predicted on Monday that the GOPs One Big Beautiful Bill Act could have some magical effects on the balance sheets of the biggest tech (read: AI) companies. The bill, which was signed into law by the president on July 4, contains a number of tax breaks that will considerably increase the free cash flow of tech companies, the analysts say, especially those that spend heavily on R&D and new infrastructure. For many tech companies, that means AI research and building data centers. Under the revised tax code, tech companies can now apply retroactive write-offs for past R&D spending, recovering billions in taxes. The bill also allows for full, upfront deductions on infrastructure investmentsprovisions clearly designed with big tech in mind. Meanwhile, the corporate tax rate remains steady at 21%. These incentives could be worth tens of billions to leading firms, Morgan Stanley estimates. Analysts expect Google, Microsoft, and Apple to benefit most in the short term by accelerating R&D deductions. For Meta and Amazon, the gains may be more evenly distributed over the next two to three years. Pew: Googles AI search results yield far fewer click-throughs, ad views New research from the Pew Research Center suggests trouble ahead for Googles core business. After tracking real-time user behavior, Pew found that users shown an AI-generated AI Overview were less likely to click links to external websites than users shown traditional search results. That finding supports concerns among publishers that AI-enhanced search results are reducing site traffic. It could spell bad news for Google, too. The company earns the bulk of its ad revenue from search, especially when users are looking to buy products like shoes or cars. Google profits most when it drives users to merchant websites. But when users enter more complex queriessuch as what are the best noise cancelling headphones for less than $100they often receive an AI-generated summary. If Pews findings hold, they may be less likely to click a link to a specific brand. During its research (conducted in March), Pew found that one in five Gogle searches displayed an AI Overview. It also revealed that users were more likely to end their session entirely after seeing such a summary: that happened on 26% of AI-result pages, compared to just 16% of pages with standard results. More AI coverage from Fast Company: Douglas Rushkoff wants us to use AI to ask better questions The ex-Waymo engineers building AI-powered robots to solve Americas labor crisis Replit CEO: What really happened when our AI agent wiped Jason Lemkins database Protons new Lumo AI is all about privacy Want exclusive reporting and trend analysis on technology, business innovation, future of work, and design? Sign up for Fast Company Premium.
Category:
E-Commerce
Tens of thousands of fans many in costumes will descend Thursday on Comic-Con International, the four day pop culture spectacle that will feature updates on the new “Predator” movie, “Alien” series and a special appearance by George Lucas.Just don’t expect major news about the future of Marvel’s movie slate or what’s next for the hit relaunch of DC’s high-flying “Superman” franchise. Both studios are sitting out Comic-Con 2025, as far as their film slates go.An estimated 135,000 people will attend the convention, which will greet Lucas on Sunday for his first Comic-Con appearance. The “Star Wars” creator will discuss his new Lucas Museum of Narrative Art that will open next year in Los Angeles.Fans of the “Alien” and “Predator” franchises will have plenty to cheer. Elle Fanning, star of “Predator: Badlands,” will discuss the film at Comic-Con’s massive Hall H this week. FX will also bring the stars and creators of “Alien: Earth,” a series that will unleash the Xenomorph species on Earth next month.“Alien: Earth” will be one of the projects that brings a massive interactive experience to San Diego, with a replica of spacecraft from the series. The attraction will feature what’s described as a terrifying mission at night.Marvel may not be presenting new movies, but it will have a “Fantastic Four: First Steps” attraction near the convention, a tie-in to Friday’s release of the latest attempt to successfully launch its “first family” in theaters.Thousands of fans got a sneak peek at the convention’s 460,000 square foot (42,700 square meter) exhibitor section, which features exclusive merchandise, comic book art and exhibits from brands like Star Wars, Lego, Nickelodeon, Paramount and more. Associated Press
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||