Nissan is axing two more EVs from its planned U.S. portfolio. This time it’s two sedans that the brand says simply aren’t appealing to consumers anymore because they’re, well, sedans. But don’t worry—there’s an electric crossover planned to replace it. Because Nissan has nothing like that at all.
Welcome back to Critical Materials, your daily roundup for all things electric and tech in the automotive space. Today, Nissan axes two more EVs planned for the U.S., Musk pledges to spend a little less time in Washington, and the White House floats changing auto part tariffs (again). Let’s jump in.
30%: Nissan Officially Kills Pair Of Electric Sedans Meant For U.S.
Photo by: Nissan
In a move that should surprise absolutely nobody following Nissan’s new-car journey over the past year, the Japanese automaker has hammered the final nail in the coffins of both battery-powered sedans it had planned for the U.S.
A new report from Automotive News confirms Nissan has officially scrapped the plans for both sedans. According to a statement from Nissan, the automaker recognized the shrinking sedan market in the States and has decided to shelve both the LZ1F and LZ1E sedans for the Nissan and Infiniti brands, respectively.
From Automotive News:
“The sedan market is shrinking,” Nissan Americas Chairperson Christian Meunier told Automotive News on April 16. “We need to face reality.”
Nissan confirmed it has cancelled a subcompact electric crossover, codenamed PZ1L, planned for the U.S. Sources previously described it as similar in size to the Leaf hatchback and compact Rogue crossover.
“In response to recent changes in industry market conditions, we have decided to revise our plans for the Canton EV family projects,” Nissan said in a statement. “We have made the decision to cancel development of the LZ1F/LZ1E [sedan] projects and to reassess them as part of a new vehicle program.”
Nissan has been kicking this can down the road for some time. It was reported back in January that the brand was planning to delay the sedans to 2027 and 2028. After carefully assessing costs associated with the electric sedans, Nissan determined that the project wasn’t viable with the brand’s customer base.
“Premium sedans are not our niche. If the sedans start at $45,000-plus […] you’re not in the core of the sedan market anymore,” said Ponz Pandikuthira, Chief Planning Officer of Nissan Americas, in an interview with Automotive News earlier this month, later continuing: “[D]ata showed that coming out with two sedans is not what the market is asking for, certainly not at a $45,000-plus price point.”
Nissan’s ideal space, according to Pandikuthrira, is crossovers. And yet, Nissan also scrapped plans for a U.S.-bound compact crossover earlier this year, bringing the total count of canceled EVs previously planned for its Canton, Mississippi plant to three. Fear not, because Nissan still has plans to launch a different all-electric crossover in 2028 (which is reportedly a year behind schedule already), along with an Infiniti-branded variant closely following.
And this wouldn’t be Nissan news without the brand courting some sort of co-op deal with another automaker. According to Pandikuthira, Nissan is open to using its U.S. production capacity (and its EV platform’s versatility) as an opportunity to partner with another OEM to lower manufacturing costs. And with Trump’s auto tariffs looming behind every door, Nissan’s unused manufacturing capacity in the U.S. might just be its saving grace.
60%: Musk Commits To Focusing On Tesla, But Only 60% Of The Time
Photo by: InsideEVs
Elon Musk says he’s coming home—well, part-time, at least. During the company’s quarterly earnings call, Musk confirmed rumors that he would soon dial back his time at the Department of Government Efficiency, but not as much as investors might hope.
Musk told analysts that his focus will shift back towards Tesla beginning in May, promising to allocate far more of his time to the automaker. How much, you ask? Well, he’s cutting his time in Washington down to just one or two days per week, which means he’s still pledging as much as 40% of an average work week to DOGE despite analysts and even state treasurers calling on Tesla to rein in the company’s CEO.
See, Tesla didn’t exactly have a great quarter. The automaker saw a 71% drop year-over-year in net income and a 9% decline in revenue. Tesla’s stock still somehow managed to shoot up as much as 8% on Wednesday. But that doesn’t mean that it’s out of hot water. In fact, analysts say that brand damage, something which Tesla carefully skirted answering when specifically asked about by investors, has already been done.
Here’s the scoop from Reuters:
The billionaire’s work as an adviser to Trump and his embrace of right-wing politics in Europe have drawn widespread opposition, including protests and vandalism at Tesla showrooms.
“His time is very valuable, and I think Tesla needs his attention,” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent investor. “But it doesn’t change that people don’t want the Tesla brand. I don’t know how you fix that.”
[…]
While some investors welcomed Musk committing more time to Tesla, experts warned the brand faces a long road to recovery, especially as political controversy continues to weigh on its image.
“Musk could do a reversal on his political career and dedicate 100% of his time to Tesla, but the rot has set in,” said Sue Benson, CEO and founder of The Behaviours Agency, a marketing firm.
“No product can fix this, and no amount of time spent in Tesla’s offices will undo the new perception many people have of Musk—in fact it could make things worse as it’s far too late to separate the man from the machine.”
Tesla isn’t blind to the feeling. In its letter to shareholders, the marque acknowledged that “changing political sentiment” could potentially have a meaningful impact on demand for its vehicles in the near-term. CFO Vaibhav Taneja also took time during the earnings call to acknowledge that vandalism and open hostility towards Tesla has “had an impact in certain markets.”
Even with the perceived damage to the brand, the slumping sales, the insane drop in the value of even used cars and his legally allotted time as a Special Government Employee almost up, Musk isn’t backing down completely.
“The natural blowback from that is those who were receiving the wasteful dollars and the fortunate dollars will try to attack me and DOGE team and anything associated with me. So, but then I’m really left with two choices. Should we just let the waste and fraud continue?” asked Musk during his opening statement of Tesla’s earnings call.
He later continued: “[I]f the ship of America goes down, we all go down with it, including Tesla and everyone else. So, I think this is critical work.”
Musk’s words might not be the long-term comfort that investors (or the company) need right now. With multiple “new” vehicles hitting the road in June and a tumbling brand reputation, folks are calling for a full-time CEO. The fly-by-night attitude can only cut it for so long.
90%: White House Once Again Floats Exempting Auto Parts From Tariffs
Photo by: White House
Following the news on auto tariffs right now feels like that scene from Always Sunny where Charlie is building a giant intertwined evidence board to figure out who Pepe Silvia is. Not to make things more confusing, but it looks like the White House is now floating changes to its tariff policy that directly affects the auto industry. Yes, again.
According to a new report by the Financial Times, the Trump administration is considering easing up on tariffs hammering Detroit. Yes, again. And while that doesn’t mean exempting vehicles from 25% import tariffs, it does mean potentially de-stacking auto parts from earlier duty fees imposed on steel and aluminum, plus more broadly exempting automotive parts imported from China.
Here’s a snippet from the FT‘s report, which was later confirmed by the White House in a statement to CNBC:
US President Donald Trump is planning to spare carmakers from some of his most onerous tariffs, in another trade war climbdown following intense lobbying by industry executives over recent weeks.
The move would exempt car parts from the tariffs that Trump is imposing on imports from China to counter fentanyl production, as well from those levied on steel and aluminium—a “destacking” of the duties, according to two people with knowledge of the matter.
The exemptions would leave in place a 25 per cent tariff Trump imposed on all imports of foreign-made cars. A separate 25 per cent levy on parts would also remain and is due to take effect from May 3.
It’s important to note that the Trump administration is considering this measure. The above confirmation isn’t that the decision is made, just confirming that Trump is thinking about making changes. Yes, again.
At its core, the mixed messaging has been something automakers have described as “a lot of chaos” since tariffs talks began ravaging the industry months ago. Industry executives have pleaded with Trump to protect the health of the auto industry in America, something which the administration believes is a long-term play for the greater good of re-domesticating manufacturing.
The problem that automakers are running into is that they simply can’t plan for the future. Why? Well, plans keep changing. Maybe this is why General Motors CEO Mary Barra recently called for clarity and consistency over the White House’s bipolar tariff regime.
Barra is right. The auto industry is past the point of calling any news about tariff relief “good news.” Instead, they just want consistent messaging. Are tariffs staying or going away? If automakers can’t plan how to shape their domestic or international supply chains, it’s going to create more chaos and higher costs.
100%: Nissan Is Chasing Crossovers—Is Car Variety Dead?
Photo by: Rivian
Once upon a time, you could walk into a car dealership and choose a myriad of body styles. Sedan? The golden standard. Wagon? Nice. Hot hatch? Sign me up. But choice has slowly been dying out and most lots are filled with your choice of crossover, crossover, or crossover. Of course, that’s thanks to America’s insatiable appetite for SUV-shaped (and sized) vehicles.
It’s crazy to think that it’s been five years since Ford killed off sedans in its lineup. And now, even Nissan is joining the fold and admitting that America simply isn’t going to buy a sedan, let alone one priced at $45,000. Never mind the fact that the Sentra was Nissan’s second-best-selling vehicle last year, or the Toyota Camry still rakes in buyers. Perhaps the lesson here is that America only wants to buy good sedans. In any case, it’s sad to see the fall of the four-door car in favor of The Blob™.
Are automakers just giving people what they want, or is America really just a bunch of normies who want practicality packaged in the form of a Honda CR-V or Toyota RAV4? Let me know what your thoughts are about our crossover overlords in the comments.
