Toronto, Ontario — August 27, 2019 — In this week’s Tuesday Ticker: A possible interest cut could be good for auto sales, but not good enough to break records; Tesla and Walmart seal the details on a solar roof suit just as other OEMs announce solar roof plans.
Interest down, sales up
Scotia Bank predicts an interest rate cut, which is expected to be issued by the Bank of Canada, will “reinvigorate auto sales,” though they will not reach the total sales numbers seen in 2018 or 2017.
Its latest Global Auto Report, Scotia Bank’s economists say the country’s auto sellers should anticipate sales hitting 1.94 million automobiles this year, 400,000 units lower than in 2018 and 100,000 lower than in 2017.
While economic uncertainty makes a rate cut look likely, according to Scotia Bank’s economists, the Bank of Canada is likely to pare back interest rates by half-a-percent.
Solar Flare-Up
An ongoing lawsuit between Walmart and Tesla over solar roofs has been sealed from the public’s eyes–just as other OEMs begin to get serious about solar roofs on automobiles.
This summer, Walmart sued Tesla for gross negligence related to allegations the car company’s energy division installed solar panels that burst into flames after being installed on the roofs of Walmarts in the United States.
Fires broke out at seven solar-panelled Walmart locations between 2012 and 2018, causing millions of dollars in damages.
The OEM’s energy division is separate from its car sales division. In the past, Tesla CEO Elon Musk has indicated that a solar roof would be an inefficient way to power an electric vehicle.
Other OEMs are actually pursuing a car-mounted panel. Toyota has announced plans to test a new solar roof for its Prius this year–said to be capable of charging the vehicle’s battery enough to drive more than 40 km-per-day. Hyundai and Kia have also announced plans to sell vehicles with solar roofs.
