Photo: Jack Walsworth / Automotive News
In today's issue:
US EV registrations post their smallest year-over-year drop in 8 months, but the industry's own forecaster still expects the EV share of the market to shrink for a third straight year
Ford's second flying-parts recall in months adds 288,000 Explorers to the pile
A 5-meter, 1200-hp Denza sedan shows up with 920 km of range and no announced US plans
BORROWED MOMENTUM
US EV registrations fell just 0.7% year over year in May to 98,684 units, the smallest year-over-year decline since the federal tax credit repeal, the best showing in eight months, per Automotive News.
Hyundai's registrations jumped 27% to 6,027 units, good for second place, with Tesla and Toyota also driving the rebound, per the same report.
Automotive News frames the recovery as incentive-driven, not organic: buyers "slowly returned to an EV market driven by automaker incentives" after last year's tax-credit-repeal slump.
Mobility Global's own 2026 forecast, cited in the same report, still calls for EV share of the light-vehicle market to fall to 6.8%, down from 7.8% in 2025 and 8% in 2024.
One good month bought with incentive spending isn't the same as demand coming back. The forecaster who tracks this market all year is still calling for EV share to shrink for a third straight year, incentives and all. May's number is real, but it's the exception the forecast already priced in as noise, not a reversal of it.
Also worth knowing
BMW Lets ChatGPT Spec Your Next M-Car: BMW launched a plugin letting buyers build and compare models by chatting with ChatGPT instead of clicking through a web configurator, per Carscoops and BMWBLOG. Carscoops asked ChatGPT directly whether the plugin existed; it said no. #analyst
Stellantis Makes Remote Start Free for a Decade: Starting with the 2027 model year, Jeep, Ram, Dodge and Chrysler owners get remote start and other connected features free for 10 years instead of on a paid subscription, per Autoblog and TheTruthAboutCars. #market
VW's Cheap EV Racks Up 25,000 Orders in Weeks: The ID. Polo Trend, with a smaller 37 kWh battery, is now on sale in Europe starting at 24,995 euros (about $29,000), and early order volume has already hit 25,000 units in weeks, per Electrek. It's the sharper read on today's lead: where US EV demand needs incentives to post a good month, Europe's appetite for a genuinely cheap EV looks organic. #market
Reveals & culture
Denza's 1200-HP Sedan Is Longer Than a Parking Space Needs: The BYD-owned brand revealed the Z9S, a 5-meter electric sedan offered in single-motor trims and a tri-motor version pushing nearly 1200 hp with up to 920 km of range, per The Supercar Blog.
Tesla's Smallest Vehicle Yet Has No Pedals, No Battery: Tesla launched a $225 magnesium-frame balance bike aimed at riders aged two to five, with orders opening July 31 and shipping expected in late August, per Carscoops. No lithium-ion in sight.
Recalls & legal action
Ford Recalls 288,000+ Explorers Over Flying Roof Trim: Ford is recalling 288,314 Explorers because roof rail covers can loosen and detach at speed, a road hazard for trailing vehicles, per Carscoops and Autoblog. → If you own one: Check your VIN at NHTSA.gov and schedule the free trim inspection before your next highway trip.
Hyundai Recalls 47,749 Konas Over Seat Belt Buckle: The 2025 Kona Electric and 2026 Kona share a rear seat belt buckle defect where the rear center seat belt assembly may have been manufactured incorrectly, preventing it from properly restraining an occupant in a crash, per AutoGuide. → If you own one: Don't let anyone ride in the rear center seat until it's fixed; the outboard rear seats are unaffected. Check your VIN at NHTSA.gov for the free buckle replacement.
Quick links
Toyota Tsusho Routes Around Double Tariffs: The trading arm launched direct shipping lanes from Japan to Canada and Mexico so smaller parts suppliers avoid paying tariffs twice by routing through the US, per Just Auto.
Texas Spent $4.5M on Four Chevy Tahoes. Only $600K Was for the SUVs: The rest funded Cognyte surveillance gear that sweeps nearby cellphones, per Carscoops.
Yesterday's picks
Honda's Best-Selling EV Ever Just Lost Half Its Sales. Now it's Dead.: Honda exits the US EV market entirely after Prologue sales collapsed 48.5% when the federal tax credit expired, leaving no BEV pipeline behind.
Carbon Monoxide Found in Ford Explorer After Three Deaths: Three deaths linked to a defect Ford claimed was fixed and NHTSA previously cleared, reopening a safety issue across 2011-2019 Explorers.
Volvo's China Problem Shows Up in the Ledger: Volvo's EBIT margin fell to 1.1% from 2.2% in Q1 as China sales plunged 35% in Q2, despite hitting full-year cost savings targets six months early.
Suspension is the daily email that makes you the most informed car person in the room.