Good morning! It’s Thursday, December 18, 2025 and this is The Morning Shift, your daily digest of the most important car news from around the world, in one place. Here are the top stories shaping the way Americans drive and get around.
In this morning’s edition, Trump went on TV and lied about gas prices (amid a million other much more important issues), California regulators have suspended an order suspending Tesla sales, Polestar gets a $600 million lifeline from Geely, and Volkswagen continues with its cost-cutting plans in Germany.
Read more: Chevy’s 302 Small Block Engine Was Meant to Break the Rules
1st gear: No, gas doesn’t cost $1.99 anywhere
Close-up of a Chevron sign at a gas station, showing California gas prices, in Walnut Creek, California, April 8, 2025. – Smith Collection/gado/Getty Images
President Donald Trump is a bizarre man known for his bizarre speeches, and last night’s television appearance was one for the ages. He used his time to discuss so-called economic gains during his time in the White House, even as ordinary Americans struggle to make ends meet — speaking at length about how he himself brought down the Biden administration’s high prices. He also made some outrageous claims about gasoline prices, saying, “Gasoline now costs less than $2.50 a gallon in much of the country. In some states, as a matter of fact, it is as low as $1.99 a gallon,” according to the New York Times.. The man has such a way with words.
As you may have guessed, this is at best a huge exaggeration, and at worst a blatant lie. A quick look at AAA’s national gas price tracker will tell you that the average price for a gallon of regular is now $2.90. There are only three states where the average gallon of gasoline costs less than $2.50 per gallon: Iowa ($2.47), Arkansas ($2.46) and Oklahoma ($2.34).
Even if you dig into each of those states’ cheapest counties when it comes to gas prices, the lowest figures you’ll find are Canadian Country, Oklahoma ($2.26), Faulkner County, Arkansas ($2.31), and Mahaska County, Iowa ($2.19). You’re all smart people, so I don’t need to tell you that none of these prices are actually lower than the $1.99 that Trump is claiming.
I suppose, in an effort to be fair, I can say that there is a possibility that there are individual gas stations throughout the country offering gas for less than $2 per gallon, but I have to assume that this is extremely rare.
Even the Energy Information Administration, a government statistical agency, has averaged gas prices at $2.90 per gallon. Granted, that’s about 12 cents cheaper than the same time last year, and it’s the lowest since Trump took office in January (when the average gallon of gas cost $3.10), but it’s still a far cry from $1.99… or even $2.50.
2nd gear: Tesla has more time to tackle misleading marketing in California
Tesla cars drive in the high occupancy vehicle (HOV) lane on Highway 101 on September 30, 2025 in Larkspur, California. -Justin Sullivan/Getty Images
A California regulator is giving Tesla more time to address allegations that it created misleading marketing and overestimated the capabilities of its self-driving software by delaying an order for the automaker to suspend all sales in its state. The Department of Motor Vehicles has ordered the suspension of Tesla’s production and sales licenses for 30 days, a judge’s proposal. However, the sales license has been put on hold for 90 days and the production license has been suspended indefinitely.
In 2022, the DMV accused the Austin, Texas-based automaker of misleading consumers by using the names “Autopilot” and “Full Self-Driving” for its cars’ driver assistance features. The regulator told Judge Juliet Cox of the Office of Administrative Hearings that the names wrongly suggested the cars could drive autonomously, and that is not wrong. That’s exactly the point… to deceive. From Reuters:
A lawyer for Tesla told the hearing that the automaker had explained “clearly and consistently” that cars with Autopilot and FSD software require supervision and are not autonomous.
Judge Cox proposed the suspension, which the DMV approved but put on hold Tuesday. Gordon said the agency wanted to give Tesla “one more chance to remedy the situation,” and said he hoped it would “find a way to get these misleading statements corrected.”
(..)
To avoid the suspension, the DMV said Tesla can file a declaration confirming that it has either stopped using the Autopilot name for its driver assistance software or that its cars can operate without active monitoring by a human.
The DMV said Tesla can appeal the suspension or seek a judicial review by February 14.
Tesla said in a statement: “This was a ‘consumer protection order’ over the use of the term ‘Autopilot’ in a case where no customers came forward to say there was a problem. Sales in California will continue uninterrupted.”
Tesla did not elaborate on how the company knew no customers had complained, and declined to comment on whether or not the Autopilot name would be dropped.
It would be shocking to me if Tesla dropped the names “Autopilot” or “Full Self-Driving,” but it’s also shocking that it issued a media statement, so I think crazy things could happen.
3rd gear: Geely loans Polestar $600 million to get it right
Fully electric car Polestar 5 performance GT sedan and electric cars Polestar 4 and Polestar 3 on display during the 2025 Wheels at Mariënwaerdt car show on September 13 in Beesd, the Netherlands. -Sjoerd Van Der Wal/Getty Images
Polestar is getting much-needed help from its majority shareholder, Geely, with a $600 million loan. The Swedish-Chinese automaker has had a tough time – to say the least – with a slowdown in demand for electric vehicles. From Reuters:
The shareholder loan, provided through Geely’s Swedish unit, is “subordinated,” meaning it does not count towards Polestar’s debt covenants, which are set at $5.5 billion, a company spokesman said, adding that the company is working to secure more equity.
The final $300 million tranche of the loan requires lender approval based on Polestar’s future liquidity needs, the company said in a statement.
Like many other EV startups, Polestar has burned significant amounts of money in its quest to achieve scale and has faced ongoing challenges in managing its liquidity and debt levels.
(…)
The company secured a $200 million equity investment in June from major shareholder PSD Investment, a company controlled by Geely Holding founder Li Shufu.
Polestar has had a real problem with almost breaching certain debt agreements it entered into with lenders. So far, the country has been able to negotiate changes with lenders and agreed with creditors to revise some of these covenants to remain in good standing in 2026.
It’s hard to argue that Polestar doesn’t make good products; it just struggles to find an audience for them.
4th gear: VW continues with cost savings in Germany
Volkswagen Zwickau-Mosel Plant, a car factory of Volkswagen Sachsen in the Zwickau district of the Moselle, Germany. – aquatarkus/Shutterstock
Volkswagen says its cost-cutting measures are on track thanks to layoffs and other cuts at the automaker’s factories across Germany. CEO Thomas Schaefer says the company has reduced costs at its factories in Wolfsburg, Emden and Zwickau by around 30% on average. From Reuters:
“We still have a way to go, but together we want to prove that it is possible to develop and build competitive cars in Germany,” said Schaefer.
Schaefer ruled out the combustion engine offering in the core brand’s new family of small cars, the first model of which – the ID.Polo – will be launched next year at a starting price of around 25,000 euros.
This would make no sense due to emissions regulations and, according to the director, would be too expensive for consumers.
“The future in this segment is electric,” he said.
In December 2024, VW struck a deal with the unions to drastically restructure its operations in Germany. That includes some heartbreaking measures, such as cutting 35,000 jobs by 2030. But it argued these kinds of things are necessary to take on Chinese rivals and navigate a slower-than-expected shift to electrification.
Reverse: What happened to the game I loved?
During a snowstorm, all football must be played outside. Playing indoors is an abomination and un-American, which is why, when I’m in charge, all domed stadiums will be banned. To learn more about this travesty, visit History.com.
On the radio: Kelly Clarkson – Underneath the Tree
This could be one of the cheeriest Christmas songs out there, and it fits today. After all, the big day is only a week away. For example, I’m locked up in TF.
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