Happy Wednesday! It’s October 8, 2025 and this is The Morning Shift: your daily digest of the most important car news from around the world, in one place. Here are the top stories shaping the way Americans drive and get around.
In this morning’s edition, we look at investor reactions to Tesla’s new entry-level models, and some worrying trends in the way car buyers are spending their money. We’ll also look at the US government’s latest moves to withdraw previously promised cash, as well as more shifts in the senior ranks at Stellantis.
1st Gear: Tesla shares fell yesterday after the base Model 3 and Model Y were unveiled
Yesterday, Tesla unveiled its new entry-level Model 3 sedan and Model Y crossover. Far from the $25,000 car that Tesla promised for so many years, these two came in at a price of $30,000 to $40,000 – hardly competitive with brands like Nissan and Hyundai. Tesla investors, as you might imagine, are not happy. By Investor business daily:
Tesla shares fell sharply on Tuesday after rising on Monday in anticipation of the disclosure.
…
With the launch of the cheaper Model Y and Model 3, Tesla’s EV pipeline is effectively empty.
Tesla has the Cybercab prototype. But without a steering wheel or pedals, that requires real self-driving. The Cybercab is also expected to use an “unboxed” manufacturing process. Although Tesla recently issued a patent related to “unboxed,” it is unclear whether the company has the process figured out, or whether the process will deliver the savings and efficiencies promised.
Elon Musk says the Cybercab will cost less than $30,000. On the other hand, for years he promised a $39,990 Cybertruck, and for a long time he promised a $25,000 EV.
Once again, Tesla’s fate, and especially TSLA’s fate, rests in its ability to deliver self-driving cars and other moonshots.
In general, you don’t want the investors in your meme stocks to realize that they are completely disconnected from the actual finances of the company. That usually does not end well for the underlying company.
2nd gear: Down payments on cars are falling, which is probably fine
Cars are becoming more and more expensive, and Americans are becoming more and more bankrupt. This isn’t a good combination, and it’s one that has led to sky-high financing rates – accompanied by declining down payments. By Automotive News:
Customers spent hundreds of dollars less on car deals in the third quarter, Edmunds said, calling the average down payment for new vehicles the lowest since late 2021.
“Affordability in the new car market remained under pressure in the third quarter, with buyers putting down less money, financing more and relying on longer terms to keep monthly costs in check,” Jessica Caldwell, chief insights officer at Edmunds, said in an Oct. 1 statement.
The average new vehicle loan in the third quarter of 2025 financed $42,647, up 4.8 percent from a year earlier; ran 70.1 months, an increase of 1.3 months; and charged 7 percent, an increase of 0.1 point, according to Edmunds. The average payment was $754, an increase of 2.4 percent.
This isn’t what most economists would call “sustainable,” and it increasingly feels like something is going to break at some point. What will break? When? Who knows!
3rd gear: The Trump administration could revoke $1.1 billion in subsidies to Stellantis and GM
The Trump administration is fully committed to ICE’s power (in more ways than one) and is accordingly cutting electric vehicle funding wherever it can. This apparently includes the money already promised to automakers for EV conversions, as Stellantis and GM will now miss out on subsidies promised by the Biden administration. By Automotive News:
The Department of Energy is considering rescinding nearly $1.1 billion that the Biden administration awarded in redesign grants to Stellantis and General Motors last year, according to a document seen by Reuters.
The projects are among a list of $12 billion in awards that could be canceled if the partial government shutdown continues.
Among these grants: $500 million awarded to GM to convert Lansing Grand River Assembly in Michigan to build electric vehicles; $335 million for Stellantis to convert the shuttered Belvidere Assembly Plant in Illinois to mid-size electric pickups; and $250 million for Stellantis to convert its Indiana transmission plant in Kokomo to produce EV components.
Trump is big on bringing car production back to the US, which doesn’t seem like a very natural fit for this move to cut funding for car production. I’m sure everything will be fine.
4th gear: more new guys at Stellantis
Stellantis CEO Antonio Filosa has remade the automaker in his image. Most recently, that meant a complete reorganization of the company’s global leadership. By Reuters:
Stellantis CEO Antonio Filosa on Wednesday carried out a shake-up at the automaker’s top ranks, installing new chiefs for Europe and global manufacturing as he tries to build a team capable of reviving the struggling company.
Filosa, who took the helm of the French-Italian-American company in June, is accelerating efforts to reverse two years of declining sales.
profits and a stagnant model range, ahead of an update to the strategic plan due in the first half of 2026.…
On Wednesday, Stellantis said Emanuele Cappellano, the Italian head of its South American operations, will take over as head of “Enlarged Europe and European Brands.” He replaces Jean-Philippe Imparato, who held the role for the past year and will now focus on leading the group’s ailing luxury brand Maserati.
Cappellano will retain his role as head of Stellantis Pro One, the group’s commercial vehicles division, while Brazilian-born Herlander Zola, one of the group’s top executives in South America, will succeed him as regional head.
In a separate statement, Stellantis said Francesco Ciancia, also an Italian citizen, would rejoin the group on November 1 as global head of production and as a member of the leadership team. He replaces Arnaud Deboeuf, who is leaving the group.
Ciancia returns from Mercedes-Benz, where he led its van business, and brings more than two decades of experience in manufacturing and factory management, including previous positions at Fiat Chrysler and Stellantis, the company said.
The new appointments also include Ralph Gilles as global head of design and Gregoire Olivier as head of the China and Asia Pacific region.
This all coincides with Stellantis turning its back on electric cars in favor of internal combustion, so it’s anyone’s guess how the company will fare with so many changes in such a short time.
Reverse: Everyone does the Wenis
On the radio: Camp Cope – ‘Maps’ (cover of Yeah Yeah Yeah)
Truly no one has a voice like Georgia Maq. I was also idly browsing Fender Mustang basses last night, and this doesn’t help.
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