Plug-Ins Not Winning, Cybertruck Reservation List, Credit Card Debt Climbs

We’re together in-person this Thursday morning as we reflect on the 100 years of Carter Myers Automotive. Today we’re talking about how plug-in hybrids may not be the transition to EVs that we thought, how Tesla may have already exhausted its Cybertruck reservation list and how more Americans are concerned about their credit card debt.

Show Notes with links

• Many have pointed to the plug-in hybrid as the ideal transition vehicle from ICE to BEV. But a new study from J.D. Power suggests that plug-in hybrid electric vehicles (PHEVs) may not be the electric vehicle solution consumers are looking for.
  • PHEV satisfaction scored 669 on a 1,000-point scale, lower than BEVs (716) and premium EVs (738).
  • PHEVs account for just 1.9% of U.S. vehicle sales, while BEVs hold 9.4% and conventional hybrids 10.7%.
  • High purchase and maintenance costs are major drawbacks, with compact PHEVs averaging $48,700 compared to BEVs at $36,900.
  • As of August 2024, there are 41 PHEV models in the U.S., compared to 39 hybrid models and 60 BEV models.
  • "Dealers are the frontline educators in the EV space," says Brent Gruber of J.D. Power, encouraging them to bridge knowledge gaps around issues like range, charging, and cost.

• Tesla's Cybertruck has seen impressive sales, with over 27,000 units sold in the U.S. in 2024. However, the company appears to be running through its massive reservation list faster than anticipated, with new buyers getting their trucks much sooner than expected.
  • Tesla sold 16,000 Cybertrucks in Q3 2024, following 11,000 in the first half of the year.
  • Despite claims of up to 2 million reservations, buyers can now get a Cybertruck within 60 days of ordering.
  • Some early reservation holders report being offered additional trucks much earlier than anticipated.
  • The base model, originally priced at $39,900, is no longer available, with current models starting around $100,000.

• A new survey from the Federal Reserve Bank of New York reveals that many Americans are growing more concerned about their ability to manage credit card debt.
  • The likelihood of missing a payment in the next three months has climbed to 14.2%, the highest since April 2020.
  • Delinquencies on credit card accounts over 90 days past due reached 9.1%, along with a rise in bankruptcy filings.
  • U.S. household debt now totals $17.8 trillion, with credit card balances hitting $1.14 trillion, up almost 6% year-over-year.
  • Middle-income households are feeling the squeeze, with 44% reporting more financial worries than last year.
  • "For people with good incomes and good credit scores, things are going well... Now the other half, that can be a much more troublesome situation," noted Bankrate analyst Ted Rossman.

Hosts: Paul J Daly and Kyle Mountsier

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