{"id":54179,"date":"2025-10-07T15:08:29","date_gmt":"2025-10-07T19:08:29","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/u-s-consumer-credit-plunges-in-august-tesla-launches-cheaper-model-y-amid-grant-scrutiny-for-gm-and-stellantis\/54179\/"},"modified":"2025-10-07T15:08:29","modified_gmt":"2025-10-07T19:08:29","slug":"u-s-consumer-credit-plunges-in-august-tesla-launches-cheaper-model-y-amid-grant-scrutiny-for-gm-and-stellantis","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-consumer-credit-plunges-in-august-tesla-launches-cheaper-model-y-amid-grant-scrutiny-for-gm-and-stellantis\/54179\/","title":{"rendered":"U.S. Consumer Credit Plunges in August, Tesla Launches Cheaper Model Y Amid Grant Scrutiny for GM and Stellantis"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. consumer credit<\/strong> saw a dramatic slowdown in August, rising by only <strong>$363 million<\/strong>, significantly missing expectations of <strong>$14 billion<\/strong> and sharply down from revised prior months of <strong>$18 billion<\/strong>.<\/li>\n<li><strong>Tesla<\/strong> (<a href=\"\/stock\/TSLA\">TSLA<\/a>) has launched a new, more affordable <strong>Model Y<\/strong> at <strong>$37,990<\/strong> to stimulate demand following the phaseout of U.S. federal tax credits.<\/li>\n<li>The <strong>U.S. Department of Energy<\/strong> is reportedly considering revoking approximately <strong>$1.1 billion<\/strong> in grants allocated to <strong>General Motors<\/strong> (<a href=\"\/stock\/GM\">GM<\/a>) and <strong>Stellantis<\/strong> (<a href=\"\/stock\/STLA\">STLA<\/a>) for auto plant retooling.<\/li>\n<li><strong>U.S. money markets<\/strong> are experiencing tightening funding pressures as bank reserves dip below <strong>$3 trillion<\/strong>, nearing the Federal Reserve\u2019s \u201cample\u201d liquidity threshold.<\/li>\n<\/ul>\n<p>U.S. consumer credit experienced a significant slowdown in August, increasing by a mere <strong>$363 million<\/strong>. This figure dramatically missed economists&#39; expectations of a <strong>$14 billion<\/strong> rise and represents a sharp decline from the previous months, which saw revisions up to <strong>$18.053 billion<\/strong> and <strong>$16.010 billion<\/strong> respectively. The data indicates that while nonrevolving credit was up <strong>2%<\/strong> on a seasonally adjusted annual rate (SAAR), revolving credit saw a <strong>5.5%<\/strong> decrease.<\/p>\n<p>In corporate news, <strong>Tesla<\/strong> (<a href=\"\/stock\/TSLA\">TSLA<\/a>) has introduced a new, more affordable version of its best-selling <strong>Model Y<\/strong> at a starting price of <strong>$37,990<\/strong>. This strategic move aims to boost demand for the electric vehicle (EV) manufacturer after the phaseout of U.S. federal tax credits. The new standard rear-wheel-drive <strong>Model Y<\/strong> is listed at <strong>$39,990<\/strong> in the U.S. with an EPA-estimated range of <strong>321 miles<\/strong>, featuring textile decor and dual-tone seats with textile and vegan leather. It includes traffic-aware cruise control, though autosteer is not part of the standard package.<\/p>\n<p>Meanwhile, <strong>General Motors<\/strong> (<a href=\"\/stock\/GM\">GM<\/a>) and <strong>Stellantis<\/strong> (<a href=\"\/stock\/STLA\">STLA<\/a>) face potential setbacks as the <strong>U.S. Energy Department<\/strong> is reportedly considering revoking approximately <strong>$1.1 billion<\/strong> in grants designated for auto plant retooling. This potential revocation could impact the automakers&#39; plans for manufacturing upgrades.<\/p>\n<p>Broader financial markets are also under scrutiny, with funding pressures tightening in <strong>U.S. money markets<\/strong>. Bank reserves have dipped below <strong>$3 trillion<\/strong>, approaching the <strong>Federal Reserve&#39;s<\/strong> &quot;ample&quot; liquidity threshold. This development has led to increasing division among Fed officials regarding the timing for halting balance sheet runoff, with some favoring an early stop while others advocate for continuing the process.<\/p>\n<p>In commodity markets, <strong>Brent Crude Futures<\/strong> closed at <strong>$65.45<\/strong> per barrel, marking a slight decrease of <strong>$0.02<\/strong>, or <strong>0.03%<\/strong>. Conversely, <strong>U.S. Crude Oil Futures<\/strong> settled slightly higher at <strong>$61.73<\/strong> per barrel, an increase of <strong>0.06%<\/strong>.<\/p>\n<p>Further corporate developments include <strong>America Movil&#39;s<\/strong> Claro being in advanced talks to acquire Brazil&#39;s Desktop, according to the Brazil Journal. On the geopolitical front, President <strong>Vladimir Putin<\/strong> claimed that the &quot;strategic initiative remains entirely with Russian Army in Ukraine,&quot; asserting Russia&#39;s control over military actions and stating that Russian troops seized nearly <strong>5,000 square kilometers<\/strong> of Ukraine in <strong>2025<\/strong>. Putin also alleged that Kyiv is attempting to penetrate deep into Russian territory and target civilian locations, but asserted it would not succeed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. consumer credit saw a dramatic slowdown in August, rising by only $363 million, significantly missing expectations of 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