Happy Wednesday! It’s October 8, 2025, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, in one place. This is where you’ll find the most important stories that are shaping the way Americans drive and get around.
In this morning’s edition, we’re looking at investor response to Tesla’s new entry-level cars, as well as some concerning trends in how car buyers spend their money. We’ll also look at the U.S. government’s latest moves to revoke previously-promised cash, and more shuffling of the upper ranks at Stellantis.
1st Gear: Tesla stock dropped yesterday after Model 3 and Model Y base model reveal
Yesterday, Tesla revealed 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 the high-$30,000 to low-$40,000 price point — hardly competitive with brands like Nissan and Hyundai. Investors in Tesla are, as one might imagine, not thrilled. From Investor’s Business Daily:
Tesla stock fell solidly Tuesday after jumping Monday in anticipation of the reveal.
…
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 true self driving. Also, the Cybercab is expected to use a the “unboxed” manufacturing process. While Tesla recently issued a patent related to “unboxed,” it’s unclear if the company has figured out the process, or if the process will deliver promised savings and efficiencies.
Elon Musk says the Cybercab will cost under $30,000. Then again, he promised a $39,990 Cybertruck for years, and long promised a $25,000 EV.
Once again, Tesla’s fate, and especially TSLA’s fate, rests in the ability to deliver self-driving and other moonshots.
Generally, you don’t want the investors in your meme stock to realize it’s totally unmoored from the business’s actual finances. That doesn’t usually end well for the underlying company.
2nd Gear: Down payments on cars are falling, which is probably fine
Cars keep getting more expensive, and Americans keep getting more broke. This isn’t a good combination, and it’s one that’s led to skyrocketing finance rates — accompanied by cratering down payments. From Automotive News:
Customers brought hundreds of dollars less to auto deals during the third quarter, Edmunds said, calling the average new-vehicle down payment the lowest it has seen since the end of 2021.
“In Q3, affordability in the new-car market remained stretched, with buyers putting less money down, financing more and relying on longer terms to keep monthly costs in check,” Jessica Caldwell, Edmunds head of insights, said in a statement Oct. 1.
The average third-quarter new-vehicle loan in 2025 financed $42,647, up 4.8 percent from a year earlier; ran 70.1 months, up 1.3 months; and charged 7 percent, up 0.1 points, according to Edmunds. The average payment was $754, up 2.4 percent.
This is not 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: Trump administration could revoke $1.1 billion in grants to Stellantis and GM
The Trump administration is all in on ICE power (in more ways than one), and it’s accordingly cutting EV funding everywhere it can. This apparently includes cash already promised to automakers for EV retooling, as Stellantis and GM will now lose out on grants promised by the Biden administration. From Automotive News:
The Department of Energy is considering revoking nearly $1.1 billion awarded in retooling grants to Stellantis and General Motors last year by the Biden administration, according to a document seen by Reuters.
The projects are among a list of $12 billion in awards that could be canceled as the partial government shutdown persists.
Among those 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 make midsize electric pickups; and $250 million for Stellantis to convert its Indiana Transmission Plant in Kokomo to produce EV components.
Trump is big on bringing automotive manufacturing back to the U.S., which doesn’t seem like a very natural alignment with this move to cut funding for automaking. I’m sure it’ll all work out fine.
4th Gear: More new guys at Stellantis
Antonio Filosa, CEO of Stellantis, has been remaking the automaker in his image. Most recently, that’s involved a whole reorganization of the company’s global leaders. From Reuters:
Stellantis CEO Antonio Filosa carried out a shake-up of the automaker’s top ranks on Wednesday, installing new chiefs for Europe and global manufacturing as he seeks to build a team capable of reviving the struggling company.
Filosa, who took the helm of the French-Italian-American company in June, is fast-tracking efforts to reverse two years of falling sales, shrinking
profits and a stagnant model lineup, ahead of a strategic plan update due in the first half of 2026.…
On Wednesday, Stellantis said Emanuele Cappellano, the Italian head of its South American operations, was taking over as head of “Enlarged Europe and European Brands”. He replaces Jean-Philippe Imparato, who had held the role for the past year and will now focus on leading the group’s ailing luxury brand Maserati.
Cappellano will keep his role of head of the group’s commercial vehicle unit Stellantis Pro One, while Brazilian-born Herlander Zola, one of the group’s top executives in South America, will succeed him as regional chief.
In a separate statement Stellantis said Francesco Ciancia, also an Italian national, would rejoin the group on November 1 as global head of manufacturing and as a member of its leadership team. He will replace Arnaud Deboeuf, who is leaving the group.
Ciancia returns from Mercedes-Benz, where he led van operations, and brings over two decades of experience in manufacturing and plant management, including previous roles 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 EVs in favor of internal combustion, so it’s anyone’s guess how the company will fare with this many changes in such a short period of time.
Reverse: Everybody do the Wenis
On The Radio: Camp Cope – ‘Maps’ (Yeah Yeah Yeahs Cover)
Truly no one has a voice like Georgia Maq. I was also idly browsing Fender Mustang basses last night, and this is not helping.
