Automatics are inefficient for a variety of reasons, but I'll hit the main ones here. Mainly, there is no direct connection between the engine and the transmission like in a clutch until you get into 4th gear. It'd take a couple pages to explain how the torque converer works, so I'll let you figure that one out on your own. The other big reason is that there are fewer gears in an automatic, so the transmission isn't as close to the optimum gear ratio as much as in a stick shift. That's why a CVT is fairly efficient. It is always in the right gear ratio, since it varies infinitely. CVTs are still less efficient than a stick though, since they still use a torque converter (no direct connection). I work for a clutch, torque converter, and CVT manufacturer so shoot me any questions you all have.