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We hunt down news treasure so you don't have to.

Here’s what we’ve got for you today:

• Ford CEO Throws Shade at Tesla

• BYD Profit Plummets from Price War

• Toyota Owners Jump Ship for EVs

• Mercedes Horsepower Subscription? Yay or neigh?

FORD CEO THROWS SHADE AT TESLA

Ford CEO Jim "Nostradamus" Farley is warning Tesla about product freshness, or lack thereof, as he prophesizes that Tesla's electric cars are destined to become as common and boring as white bread.

Last summer, our favorite automotive clairvoyant accurately predicted a price war in the EV market - it's almost like he's got a crystal ball. Tesla fired the first shot in early January, and Ford retaliated with price cuts to its Mustang Mach-Electric (aka the "Tesla Killer") SUV. But Tesla, ever the stubborn child, kept hacking away at its prices across its entire EV lineup all year long.

Farley, with his usual flair for drama, commented on the situation again and compared Tesla's strategy to that of Ford when it first started mass-producing cars:

"Go read '1913,'" Farley said, as if we all have a copy of that book lying around. "This has all happened before."

The CEO, channeling his inner Yoda, believes that cutting costs and prices is only part of the equation to create demand. He warns Tesla CEO Elon "Mars-or-Bust" Musk that if they focus solely on price slashing, they're gonna have a big ol' problem with product freshness:

"I think what he's going to learn is product freshness means a lot. The product gets commoditized and then you lose your pricing premium. That's a really dangerous thing."

On Tesla's most recent earnings call, Musk responded by saying that Tesla's goal is to adjust prices to ensure demand matches the automaker's increased production capacity, which is basically the corporate version of "whatever, dude."

BYD PROFIT PLUMMETS FROM PRICE WAR

Oh, how the mighty have fallen! BYD, the world's largest electric vehicle (EV) maker, found itself in a bit of a pickle as its net profit took a 43.5% plunge in the first three months of 2023. It seems the price war in China's automotive industry is causing some serious turbulence.

The Shenzhen-based carmaker, which has Warren Buffett's Berkshire Hathaway in its corner, reported a net profit of 4.13 billion yuan (US$596.28 million) between January and March, down from an all-time high of 7.3 billion yuan in the fourth quarter of 2022. Ouch!

This unfortunate turn of events marks the end of BYD's three-quarter winning streak on profits, which was fueled by skyrocketing sales of battery-powered cars.

The EV giant delivered a total of 508,706 cars in the first three months, which is 25.6% less than the previous quarter. Despite dethroning Tesla as the world's largest electric car builder last year, BYD's sales seem to be running out of juice.

Since October 2022, thousands of drivers have been drawn to BYD's more affordable cars, which are about 30% cheaper than premium EVs made by Tesla and its Chinese rivals, such as Nio and Xpeng. Tesla led the charge in slashing prices, with other carmakers like Xpeng, BYD, and Aito following suit.

Despite its quarterly results, BYD is now inching closer to becoming China's biggest carmaker in terms of sales because Volkswagen, the current leader, posted a steep drop in deliveries in the first quarter. Who will come out on top? Only time will tell. May the price wars continue.

TOYOTA OWNERS JUMP SHIP FOR EVS

As Americans' interest in swapping their gas-guzzlers for zippier EVs surges, the latest report from used car emporium CarMax reveals a juicy tidbit: Toyota owners are trading in their rides for electric alternatives more than any other brand. Ouch. That's gotta sting for the Japanese automaker, who's been dragging its feet on the electric bandwagon.

CarMax's study delved into the nitty-gritty of which vehicle types and brands are being ditched for that sweet electric embrace. Turns out, SUVs are the top trade-in choice for EVs, making up a whopping 40 percent. Sedans and coupes trailed behind at 29 percent, while luxury vehicles snagged a distant third with 17 percent.

But plot twist: the top five EV models are not SUVs. Instead, the reigning champs are the Tesla Model 3, Tesla Model Y, Nissan Leaf, Ford Mustang Mach-E, and Chevrolet Bolt EV. So, it seems buyers are trading their bulky SUVs for sleeker EV sedans and crossovers. Take that, SUV supremacy!

CarMax's report reveals that the humble Honda Civic was the most common trade-in for the Tesla Model 3, followed by the Toyota Tacoma. As for the Nissan Leaf, its top trade-in buddy was the Toyota Prius (no word on the Prius Prime, though). This frenzy of trading culminates in Toyota being the most abandoned brand for EVs, accounting for 12 percent of ICE-to-EV trades. Ford and BMW tied for second place with 8 percent, and Honda came in third with 7 percent.

For the second year in a row, Toyota tops CarMax's most-traded list, which may (or may not) have something to do with the automaker's reluctance to fully commit to the EV revolution. Clinging to hybrids and plug-in hybrids like the Prius, Toyota watches in horror as its once-loyal followers leap into the arms of... gasp... Nissan, all for the sake of a shiny new EV.

MERCEDES HORSEPOWER UPGRADE: $60/MONTH

Mercedes-Benz EV owners in North America can now experience the thrill of spending $60 a month to unlock 60 extra horsepower, or $90 a month for 80 horsepower, without leaving the comfort of their own driveway. The bonus power, which shaves nearly a second off zero-to-60 acceleration, comes courtesy of a sneaky over-the-air software patch.

But wait, there's more! Buyers can skip the monthly subscription altogether and go for a one-time payment or an annual subscription. For example, you can transform your all-wheel-drive Mercedes-Benz EQE 350 sedan from a measly 288 horsepower to a whopping 348 for just $1,950.

Mercedes is hardly the only automaker cashing in on software updates, following in the footsteps of Tesla and BMW. Companies like GM and Stellantis have dollar signs in their eyes, predicting billions in revenue from subscriptions. Mercedes execs are dreaming of over $1 billion annually from software subscriptions alone.

These power-boosting upgrades, available through the Mercedes Me online store, are restricted to the US for now—probably because other countries have laws against tampering with powertrains after purchase. The upgrades don't increase range, according to Mercedes, if you're driving like a normal human.

However, don't expect to transform your base model into a high-end powerhouse; Mercedes makes sure top-tier models stay on their pedestals. Subscriptions can also grant access to features like navigation, remote start, theft and damage notifications, and a privacy-protecting "valet mode."

Mercedes claims these downloadable upgrades cater to customers' ever-changing needs and preferences. But experts warn automakers to tread carefully, as charging extra for capabilities a vehicle already has can leave customers feeling cheated.

What are your thoughts? Are we entering a new subscription hell where car features are locked behind a paywall? Email us at [email protected] and let us know what you think!

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That's a wrap for today. Charge your batteries & see ya tomorrow! If you want more, be sure to follow our Twitter (@PluggedInEmail)

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