Elon Musk is challenging reports that his car company will likely need to raise additional capital during the second half of next year. The forecast came from the credit rating agency, Moody’s. Others have forecast the firm may need an influx of cash this year.
In a Tweet this morning Musk said, “The Economist used to be boring, but smart with a wicked dry wit. Now it’s just boring (sigh). Tesla will be profitable & cash flow+ in Q3 & Q4, so obv no need to raise money.”
He was referring to a long story in the “The Economist” outlining the problems that Musk’s auto firm has experienced, including production problems regarding batteries and the Model 3.
Most auto makers reported rising sales in March, but how long that will last may be up in the air. Edmunds said consumers may experience sticker shock if they’re heading to the dealership for the first time in a few years.
Thanks to a combination of rising interest rates, longer loan terms and higher average transaction prices, Edmunds said a buyer could pay more than $6,500 to purchase a new vehicle than they did five years ago.
During the first quarter of 2018, interest rates on new-vehicle loans grew sharply each month, culminating in an annual percentage rate average of 5.7 percent in March 2018, compared to 4.4 percent in March of 2013. On top of that, the average amount financed reached $31,020 compared to $26,533 in 2013 and loan terms have stretched to 69.5 months compared to 65.7 months five years ago. Then add in indications from the Fed that it will likely continue to raise interest rates.
Consumers may want to consider leasing a new vehicle, Edmunds said, but that would come with mileage restrictions not found in an outright purchase.
Also, look for a car that as a low APR offer, something Edmunds says is slowly disappearing.
“If you’re willing to keep an open mind toward brands and models that you might not be familiar with, you can still get a great financing deal.”
Hagerty, the global company specializing in insuring classic cars, is out with a new list of ten cars now in production that are likely to become “highly collectible 30 years down the road.”
The “Hagerty Hot List” for 2018 includes (in alphabetical order):
Audi RS 3 ($54,900) – An inline-five cylinder developing 400 horsepower in a nimble sedan makes for a spirited drive that you can’t help but love.
Chevrolet Camaro ZL1 1LE ($69,995) – This Camaro with the 1LE track handling package is proof that the golden era for American muscle car wars is happening right now.
Dodge Challenger SRT Demon ($85,000) – 840 horsepower factory-built drag-race car with modern technology that helps you launch and grip at the drag strip. Enough said.
Honda Civic Type R ($34,100) – The performance at an impressively low price point compared to its competition means it should attract many new enthusiasts. Well-preserved examples will be sought after when today’s young fans one day seek out the cars that made an early impression on them.
Jeep Grand Cherokee Trackhawk ($86,000) – In today’s SUV dominated culture, FCA is clearly owning the high performance end of this segment. 707 horsepower in an all-wheel-drive application that can also hold its own on a track is the best example of bridging the modern-day power wars with a hint of practicality.
Jeep Wrangler ($26,995) – For more than 70 years the “Jeep” has been synonymous with off-road capability and has generations of followers. High production numbers mean many will survive and continue to supply the off-roading crowd with vehicles eager to be modified.
Kia Stinger GT ($38,350) – Kia has rightly earned a spot on this list with the Stinger GT. Its combination of looks, performance and relatively low price point signals that the company is serious about attracting driving enthusiasts.
Lexus LC 500 ($92,500) – This is the most exciting Lexus since the LFA with a larger displacement engine in an era when smaller displacement with forced induction is the trend.
Porsche 718 Cayman/Boxter GTS ($79,800) – Vintage Porsches have a global fan base and the company is continuing to feed its fans with exciting cars like the GTS package in this duo that includes 365-horsepower from a mid-mounted engine.
Subaru WRX STI Type RA ($48,995) – The WRX has a long history that has developed its own tribe of brand champions. The limited production of 500 Type RAs makes this the instant collectible of the 2018 Hot List.
The man who ran the Volkswagen brand for years, is now the CEO of the entire company. VW’s version of a Board of Directors this morning promoted Herbert Diess as CEO replacing Matthias Muller who ran the auto firm during the turbulent era of the diesel emissions scandal.