Happy Monday! It’s July 6, 2026, 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 Tesla’s second-quarter sales, as well as the ever-increasing length of auto loans. We’ll also look at Rivian’s 2026 estimates, and new Chinese moves into South Africa.
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1st Gear: Tesla sales jumped in Europe on high gas prices, but U.S. sales keep circling the drain
Gas prices skyrocketed during the second quarter of 2026, and sales of EVs and hybrids shortly followed. That rising tide lifted Tesla’s ship in Europe, but the company’s U.S. sales still look flat. From Automotive News:
Tesla reported a 25 percent rise in second-quarter deliveries from a year earlier as higher gasoline prices boosted electric vehicle demand in Europe, while industry estimates pointed to a continued decline in the U.S. market after the end of the federal EV credit.
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Tesla made its biggest gain in Europe with an estimated 40 percent jump in deliveries, Deutsche Bank forecast in a June 30 research note. China was stable with an estimated 3 percent increase, the bank said.
In the U.S., Tesla deliveries fell 20 percent in the second quarter to 114,629 vehicles, according to a Cox Automotive forecast. For the first half of this year, Cox estimated deliveries fell 15 percent to 231,929.
An Automotive News forecast put Tesla’s U.S. deliveries down 8 percent in the second quarter to 115,000 and down 12 percent in the first half to 225,000 vehicles.
What’s dragging Tesla down stateside? Is it the CEO’s heinous politics? His even worse sense of humor and posting acumen? The fact that the Cybertruck is the dumbest vehicle on American roads, and every other Tesla is made even dumber by association?
2nd Gear: Car loans keep getting longer
Cars keep getting more expensive, and wages aren’t keeping up. But Americans don’t exactly have many alternative options to car ownership, so car loans keep getting longer to take up the slack. This is making dealers very nervous. From Automotive News:
Consumers took out longer vehicle loans in the second quarter, with a record 24 percent choosing 84-month terms or longer, fueling dealer concerns about customers bearing negative equity or being sidelined from making a purchase in the future.
New-vehicle borrowers in the second quarter took out loans averaging 70.4 months, up 0.6 months from a year earlier, according to Edmunds. Used-vehicle borrowers agreed to an average term of 70.1 months, up 0.4 months from a year earlier.
Experian said that for the first quarter, its most recent data, nearly 36 percent of new-vehicle loans ran longer than 72 months, up about 5 points from a year earlier. Almost 32 percent of used-vehicle loans in the first quarter ran longer than 72 months, up nearly 3 points from a year earlier.
Dealers “don’t want” to extend loans out to 96 months, according to the Automotive News piece, but they may be forced to at some point. It’s not like anyone’s getting paid more any time soon, unless your name rhymes with “Schmezos” or “Schmuckerberg.”
3rd Gear: Rivian plans for a very good 2026
Rivian makes some truly spectacular vehicles, but the company can’t seem to get them into customer hands in a sustainable manner. With R2 deliveries starting soon, though, the company hopes it can do better this year. From Reuters:
July 2 (Reuters) – Rivian Automotive aised its annual delivery forecast on Thursday, betting on strong demand for its R1 models and electric delivery vans as well as its cheaper new R2 SUVs, sending the company’s shares over 10% higher.
The raised forecast reflects Rivian’s expectation that its smaller, lower-priced R2 SUVs will help drive sales, despite lingering affordability concerns following last year’s expiration of federal EV tax credits.
The R2, for which customer deliveries began in June, is central to the company’s growth plans and is expected to compete with Tesla’s best-selling Model Y.
Rivian now expects 2026 deliveries between 65,000 and 70,000 vehicles, up from its earlier forecast of 62,000 to 67,000. Fifteen analysts polled by Visible Alpha estimate the company will deliver 63,138 vehicles this year.
I’m on Rivian’s team here, I want to see the company do well. Its cars are just too good to be overlooked.
4th Gear: Nissan’s South African factory is now in Chinese hands
Nissan is looking to shrink, and Chinese automakers are looking to expand. There’s a natural synergy there, and it’s borne out in places like South Africa. Nissan didn’t want its factory in the nation any more, so Chery was more than happy to step in and keep folks employed. From Reuters:
JOHANNESBURG, July 3 (Reuters) – China’s Chery formally took over Nissan’s car manufacturing plant in Rosslyn on Friday under a deal that was announced in January, and executives said the company will spend millions of dollars upgrading and adding machinery ahead of starting vehicle production in South Africa in mid-2027.
Chery said in a statement it wants to establish South Africa as its African hub for manufacturing, exports, research and development, and regional operations.
Chery, China’s largest car exporter, has committed to retaining all 692 existing employees at the plant and Zhang said the project would create nearly 3,000 direct and indirect jobs across manufacturing, supply chains and related services.
“Our long-term goal is to turn the Rosslyn plant into a complete auto center with research and development, supply chain operations, and training, supporting Chery’s expanding presence and the goal of exceeding 100,000 annual vehicle sales in South Africa,” Vice President Charlie Zhang of Chery Auto said during a ceremony at the former Nissan (7201.T), opens new tab facility. It was attended by executives, government officials and industry stakeholders.um
It’s nice that Chery is keeping folks around, that’s better than a lot of companies. Good on whoever made that call.
Reverse: Dubya
It’s still so funny that he’s from Connecticut.
The Fuel Up
After stalling out a bit in anticipation of the Fourth of July, we’re back on the downswing. That’s good!
On The Radio: Laura Les – ‘London Bridge’ (osno1 remix)
If you haven’t listened to Laura Les’s 2017 remixes album, you’re doing yourself a disservice.
