States
and Local
CARB Floats Plan To Limit Truck NOx But Hedges On Long-Term Targets.
According to Inside EPA, “California air regulators are floating a phased approach for implementing tougher nitrogen oxide (NOx) limits for heavy-duty trucks, including stricter numerical
standards starting in model year 2024 and regulatory timelines that are synchronized with greenhouse gas controls -- though they are hedging on long-term NOx targets. The policy options are included in a new California Air Resources Board (CARB) staff paper,
though it is not clear whether the paper will blunt -- or instead drive -- a clash between the state and EPA over truck NOx standards. ‘Staff is considering a three-step phase-in for the low NOx program,’ says the April 19 white paper. CARB is stopping short,
for now, of embracing the lowest possible NOx targets that have been under discussion for the program in recent years, but its draft proposal is nonetheless drawing early fire from industry. ‘If nothing else, I suppose it gives everybody a target to shoot
at,’ says one industry source. While CARB is pushing ahead with state NOx rules, some sources are questioning whether EPA can complete federal standards before the end of President Donald Trump’s current term.” [Inside EPA,
4/24/19 (=)]
Electric Vehicles
Tesla Posts Big Quarterly Loss As Its Electric-Car Sales Lag.
According to the New York Times, “Tesla’s surprisingly weak electric-car deliveries in the first quarter took a heavy toll on its bottom line. The company said on Wednesday that it
lost $702 million in the first quarter, a sharp reversal from the profits it made in the second half of last year. The loss, equivalent to $4.10 per share, was far greater than the $1.81 per share that Wall Street analysts, surveyed by FactSet, had forecast.
The quarter’s revenue of $4.54 billion fell well short of expectations. Tesla had $2.2 billion of cash at the end of the first quarter, a 40 percent decline from the figure at the end of last year. The company spent $920 million paying off a bond in March.
Tesla’s operations consumed $640 million of cash in the first quarter. Investors had been bracing for the red ink after Tesla said it sold 31 percent fewer vehicles in the first quarter than in the fourth quarter of 2018. The company said logistical challenges
had hindered deliveries of the Model 3 sedan to Europe and China. A reduction in a federal tax benefit for Tesla’s buyers may have weighed on Model 3 sales in the United States.” [New York Times,
4/24/19 (=)]
Tesla Posts Big Quarterly Loss.
According to E&E News, “Tesla Inc. announced yesterday a $702 million loss in the first quarter of this year, breaking a streak of back-to-back profitable quarters. CEO Elon Musk,
who had predicted in January that the company would eke out a profit, told investors yesterday the company would likely lose money next quarter then post a profit in the third quarter as it cuts costs and increases sales. The news came days after the fanfare
of Tesla’s ‘autonomy day,’ when executives sought to persuade analysts and investors it was well ahead of competitors in the race to develop viable self-driving cars. The company declared then it would launch a fully driverless fleet of cabs by 2020. The hardware
in Tesla cars being sent out, Musk boasted then, was already the most advanced in the industry and capable of pairing with future software that would allow cars to pilot without drivers. By 2020, he said, Tesla cars would be ‘fully self-driving’ and the company
would unveil an automated ride-share service.” [E&E News,
4/25/19 (=)]
Auto Manufacturers
GM Wanted Too Much From EV Start-Up Rivian, Opening Door For Ford’s $500 Million Investment.
According to CNBC, “Ford’s $500 million investment in electric truck maker Rivian became a possibility shortly after the start-up’s talks with Detroit rival General Motors broke down
about eight weeks ago, according to someone familiar with the discussions. It was widely speculated, and reported, that GM was looking at Rivian. In the end, GM wanted too much — exclusive rights to the start-up’s technology, said the person, who declined
to be identified because the talks were private. Ford’s opening came after GM, which declined to comment, refused to budge. Rivian CEO RJ Scaringe already had a personal friendship with one of Ford’s board members, a classmate from the Massachusetts Institute
of Technology. And Ford made him a deal that allows Rivian to move ahead with plans to develop its own brand and dealer network and potentially sign up other automotive partners. No such deals are currently planned, Scaringe told reporters on a conference
call Wednesday. The investment in Rivian is ‘consistent’ with Ford’s own electrification program, the 116-year-old automaker’s CEO, Jim Hackett, said on the call. Ford last year announced it would invest $11 billion to develop battery-based vehicles, including
hybrids, plug-ins and pure battery-electric models. The Rivian investment will come on top of that previous figure.” [CNBC,
4/24/19 (=)]
Ford Will Build An Electric Vehicle Using EV Startup Rivian’s Tech.
according to The Verge, “The Ford Motor Company has announced a $500 million investment in EV startup Rivian, and it will build an electric vehicle using Rivian’s tech, the companies
announced on Wednesday. The new vehicle won’t affect the two EVs Ford has been developing, an electric F-150 and Mustang-inspired crossover, Ford CEO Jim Hackett said on a call with investors and reporters. Specifically, Ford will build its vehicle around
Rivian’s ‘flexible skateboard platform,’ which includes the battery pack, the electric drivetrain, and the electrical architecture that will power the startup’s own EVs, the R1T electric pickup truck and the R1S SUV (which arrive in late 2020). Ford will also
get a minority stake in Rivian in return for its investment. Ford has decided what kind of vehicle it will build on Rivian’s platform, but it declined to specify. Just two months ago, Rivian announced a $700 million investment round led by Amazon. Rivian was
also in talks with GM, but the startup reportedly backed out of the potential exclusive deal. Rivian CEO RJ Scaringe has said Rivian is making ‘several models’ for other companies. But while the deal with Ford is looser, Scaringe said Rivian is ‘very much
focused on the relationships we’ve now built, launching our own products, and making sure our eyes are focused on execution.’” [The Verge,
4/24/19 (=)]
For $500 Million, Rivian Will Teach Ford How To Make Electric Vehicles.
According to Quartz, “Ford is investing $500 million in Rivian, an electric-vehicle startup. The injection of cash comes only months after the Michigan-based company raised $700 million
in an investment round led by Amazon. In November, Rivian unveiled the first two battery-powered EVs it plans to start producing by the end of 2020: the R1T, an electric pickup truck, and the R1S, an electric SUV. Both cars are expected to cost more than $68,000
and sell in the luxury space. The pickup is expected to directly compete with Ford’s battery-powered F-150, which is due to launch in 2021. The SUV will go head-to-head with those already offered by the likes of Tesla and Jaguar. Rivian will likely put some
of the Ford money towards building its US car factory, which is eventually expected to have an annual manufacturing capacity of 250,000 vehicles. Rivian’s goal is to sell 20,000 cars in 2021 and twice that in 2022. Other EV startups like Tesla and NIO have
struggled to scale up manufacturing, and Rivian is likely to benefit from Ford’s old-world skills. Rivian’s two planned cars share a skateboard-shaped platform, which is built to house a large battery pack, suspension, axles, cooling system, and four electric
motors. In return for its investment, Ford gets access to the skateboard platform for use in its own electric vehicles, as well as a seat on Rivian’s board.” [Quartz,
4/24/19 (=)]
Ford Investing $500 Million In Electric Vehicle Startup.
According to The Hill, “Ford announced Wednesday it is investing $500 million in electric vehicle startup Rivian. Ford will become a minority partner in the company and work with
the startup on a new Ford electric vehicle based on Rivian underpinnings. ‘As we continue in our transformation of Ford with new forms of intelligent vehicles and propulsion, this partnership with Rivian brings a fresh approach to both,’ Ford president and
CEO Jim Hackett said in a statement. ‘At the same time, we believe Rivian can benefit from Ford’s industrial expertise and resources.’ The deal is subject to regulatory approval. If approved, Rivian will remain an independent company. Joe Hinrichs, Ford’s
president of automotive, will join the startup’s seven-member board. Rivian, based outside of Detroit, released an electric pickup truck recently and will start selling an SUV late next year. ‘This strategic partnership marks another key milestone in our drive
to accelerate the transition to sustainable mobility,’ Rivian CEO RJ Scaringe said in a statement.” [The Hill,
4/24/19 (=)]
Opinion pieces
Op-Ed: Should Coloradoans Be Allowed To Buy Electric Vehicles Straight From The Manufacturer?
According to an op-ed by Benjamin Lloyd in KOAA News, “A bill to exempt manufacturers of all-electric vehicles from rules requiring them to only sell through a system of independent
franchise dealers died in 35-30 vote before the Colorado House on Wednesday. As the law currently stands, Tesla is the only manufacturer with the ability to sell directly to consumers. That’s all due to a loophole the company took advantage of back in 2010.
More on that in just a bit. We’re all familiar with having to strike an agreement on the purchase of a new vehicle, or even ordering a new vehicle, through a dealership in our community or even online. HB19-1325 called for manufacturers that only make all-electric
vehicles, with at least 4 wheels, to sell directly to their customer from business locations in our communities. The provision about only making all-electric vehicles is important, as it excludes any company that may make an all-electric vehicle, yet still
makes hybrids or combustion-only engines. The bill failed on the third vote and failed on a reconsideration vote.” [KOAA News,
4/24/19 (=)]
Chad Ellwood
Research Associate
202.448.2877 ext. 119