Electric Vehicles
Tesla's Success In Norway Becomes Double-Edged Sword.
According to E&E News, “In one of Tesla Inc.’s biggest markets, it’s been stung by its own success. The company has struggled to build up operations to match sales in Norway, which
leads the world in electric vehicles per inhabitant. As a result, customers have started to complain about bad service. Norway is closely watched for signs of how the transportation industry is adapting to the energy transition. After Tesla rolled out an unprecedented
wave of its new Model 3 in the Nordic country earlier this year, customers and observers are keen to see how it’s scaling up already stretched local operations. The boom is proving troublesome and Tesla is struggling to cope with its meteoric rise in Norway
with the most consumer disputes per unit of any carmaker. The total number of complaints is likely to rise this year due to issues with Model 3s, including dents and sloppy paint jobs, according to Norway’s consumer watchdog. But the good news is that the
ratio of complaints per vehicle is set to drop after the number of Teslas in Norway surged by more than 25% to almost 40,000 so far this year. Measures to improve service capacity are having an impact, according to Thomas Iversen, a senior legal adviser at
the Norwegian Consumer Council.” [E&E News,
5/24/19 (=)]
Didi Wants To Help Millions Of Drivers Power Their Electric Cars.
According to CNN, “Didi Chuxing, China’s top ride-hailing app, has teamed up with the country’s giant power utility to make it easier and cheaper for drivers to recharge their cars.
The deal connects Didi users to the State Grid’s network of some 50,000 electric vehicle charging stations throughout the country. Didi is hoping to make life easier for its tens of millions of drivers, while making it more attractive for other car owners
to join its platform. State Grid is the biggest operator of electric vehicle charging points in China, with plans to more than double its footprint by the end of next year. Lauren, a Vanguard financial advisor, explores this common belief. Its deal with Didi
will allow drivers to easily find those stations, and plug in their vehicles at a discount starting next month,
the startup said in a statement last week. Didi, which first started as a competitor to Uber (UBER) in 2012, has increasingly diversified its business in recent years, partnering with automakers to develop connected car technology and even creating a spin-off
app solely for auto services. Those services include car trading and auto repair, which allows people to buy vehicles and get them fixed at cheaper rates, without being a registered Didi driver.” [CNN,
5/23/19 (=)]
EPA
Democrats Suggest EPA Chief Misled On Vehicle Emissions Rollback.
According to The Hill, “Democrats are asking Environmental Protection Agency (EPA) head Andrew Wheeler to turn over documents tied to
the agency’s proposal to roll back emissions standards for vehicles, suggesting he made misleading statements on the topic. House Energy and Commerce Committee Chairman Frank Pallone Jr. (D-N.J.) and Sen. Tom Carper (Del.), the top Democrat on the Senate Environment
and Public Works Committee, said the request was ‘in light of numerous comments from Administrator Wheeler, including statements made to Congress, that plainly contradict data presented to him by EPA’s own experts.’ ‘Despite the fact that you were briefed
on these concerns before the rule was proposed, you have continued to make assertions about the proposal that you must know do not reflect the views of EPA’s expert staff,’ the lawmakers wrote. The EPA’s controversial proposal would freeze emissions standards
set by the Obama administration in 2020 rather than have them tighten into 2026. Vehicle manufacturers oppose the plan, and the proposal has sparked a lawsuit with California, with the state threatening to enact other tough measures to reduce greenhouse gas
emissions. An EPA spokesperson told The Hill when asked to comment on the letter that the agency ‘will respond through the proper channels.’” [The Hill,
5/23/19
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Auto Manufacturers
GM Faces Blowback On Federal Driverless Car Petition.
According to the Detroit News, “General Motors Co. is running into opposition to its petition to federal regulators for permission to put up to 5,000 driverless cars — without steering
wheels or control pedals — on public roads. In comments submitted to National Highway Traffic Safety Administration, groups that represent car dealers, insurers and road safety advocates took issue with the Detroit carmaker’s request to put 2,500 ‘driverless
zero‐emission autonomous’ vehicles on the road annually for a
two-year period beginning this year. The petition, submitted by GM in January 2018 but not made public for comment until March of this year, is seen as the company’s first step in deploying
a driverless-taxi fleet of Chevrolet Bolt EV-based cars, known as the Cruise AV. GM’s petition is for the current maximum number of exemptions allowed to federal motor vehicle safety standards that require cars to have human operators. Thomas Karol, general
counsel for federal issues for the National Association of Mutual Insurance Companies, which lobbies for property and casualty insurance providers, said NHTSA ‘must assess whether an ADS [automated driving system] steers, brakes and accelerates at least as
effectively and safely as a human driver’ before it grants permission to companies like GM to put self-driving cars on U.S. roads. “ [The Detroit News,
5/23/19 (=)]
Read Tesla CEO Elon Musk’s Email To Employees Where He Says The Company Made An Average Of 900 Model 3s Per Day This Week.
According to CNBC, “Tesla shares rose 1.4% Thursday after CEO Elon Musk sent an e-mail to all employees saying the electric vehicle maker is close to reaching its target production
numbers for the Model 3 this quarter. The e-mail’s optimistic tone helped Tesla shares turn positive for the first time in seven days. The company added nearly $500 million to its market cap, reaching around $34.6 billion, in early trading on Thursday.
Analysts had been losing confidence in Tesla’s stock during the past week as the company entered cost-cutting mode. In an email to employees obtained by CNBC last week, Musk stressed
the need for ‘hardcore’ measures to cut spending.” [CNBC,
5/23/19 (=)]
Ford, Amazon Invest In Rivian Electric Vehicles.
According to Farm Forum, “Rivian is a new U.S.-based electric vehicle manufacturer all but guaranteed success thanks to a $500 million investment from Ford, plus another $700 million
investment led by Amazon. Rivian has two models — a pickup truck and a full-size SUV — both sitting on top of its so-called ‘skateboard’ platform, which can be scaled up or down to accommodate body styles of different sizes, weights, and designs. It is the
revolutionary turned-up design in the front and back of the chassis that gives the platform its skateboard name. The upturns hold the battery pack, drive units, suspension and braking, and thermal systems, keeping them out of the way of passengers. That means
more cabin space for people, more cargo space for whatever, and a lower center of gravity for improved driving dynamics. That’s what attracted Ford, which will use the platform to develop an all-new, next-generation EV for its growing electric portfolio. The
Rivian-based EV is in addition to a Mustang-inspired EV crossover and an electrified F-150 pickup.” [Farm Forum,
5/23/19 (=)]
Tesla Stock Is In Trouble And Elon Musk Has Gone From Iron Man To Inspector Gadget.
According to Barron’s, “Tesla is headed to $10 a share under a bearish case—or $391 under a bullish one, wrote a Morgan Stanley analyst this week. My model confirms he’s either spot
on or miles off. What’s clear is that the hazard lights are blinking. Tesla stock (ticker: TSLA) is the worst performer in the Nasdaq 100 this year, down 41%. Less than two years ago, the company was able to raise money at 5.3% interest, but those bonds are
now priced to yield more than 9%. The cost of default protection, already more than triple what Ford Motor (F) pays, has been rising. In the near-term, Tesla is flush enough. It recently stashed away $2.7 billion from selling stock and convertible debt. Longer-term,
be wary. Car shoppers are said to kick the tires, not fondle the bonds. But there is potential for Tesla’s Wall Street weakness to creep into customer opinion. General Motors (GM) could see the reverse: rising financial resilience showing up in the shares.
I’m no electric skeptic. Battery power is the future of driving. The only reason I haven’t considered an electric vehicle is that the market hasn’t yet reached me, the outspoken minivan man. Under my bull case, America realizes minivans were cooler than sport
utility vehicles all along, the market shifts, and I’m acknowledged as a sliding-door fashion leader with thumbs-ups from passersby on the road. There’s a bear case where none of that stuff happens, but it’s ridiculous.” [Barron’s,
5/23/19 (=)]
Tesla Dominates Other Premium Automakers In California, Pushes EV Market Share Over 5%.
According to Electrek, “Despite a tough first quarter this year, Tesla is dominating other premium automakers in California and helping to push the electric vehicle market share past
5% of the market for the first time. Tesla’s global deliveries went significantly down last quarter after a record quarter at the end of 2018, but the automaker’s home market of California remains strong. According to registration data gathered by IHS for
a California New Car Dealer Association report, Tesla delivered 20,491 vehicles in California during the first 3 months of 2019. That’s up 172.1% compared to the same period last year. Model 3’s success is responsible for the important increase in deliveries
in California year-over-year. According to the same registration data, Tesla delivered 15,805 Model 3 vehicles in the first quarter 2019-more than the next 4 competitors combined:
Model 3 is still the market leader by a wide margin. It not only leads its own segment, but it also figures amongst the best-selling vehicles period — even much cheaper cars. Tesla’s
Model S and Model X also performed well in California during the last quarter.” [Electrek,
5/23/19 (=)]
States
Dieselgate Disaster — Which States May Squander Their Emission Settlement Funds…On Diesel?
According to Electrek, “Nearly $3 billion in funding from Volkswagen’s Dieselgate settlement designed to go toward cleaner transportation in the US is being underutilized in EV infrastructure
and adoption, according to a recent study which grades all states based on their spending plans. In fact, at least 14 states could see all of their allotted funds go toward diesel vehicle projects. The stunning study comes from the United States Public Interest
Research Group (US PIRG), which gives only 15 states a C grade or better when it comes to policies that can increase access to clean transportation, including electric vehicle charging and electric bus fleets. The rest of the states earned D or F grades. US
PIRG used eight grading categories to come up with its final grade for each state. The categories are as follows: Are electric vehicles prioritized in funding? Are electric vehicles prioritized in stated plan goals? Are electric buses prioritized? Are diesel
vehicles eligible for more than 15 percent of total award? Are diesel vehicles ineligible for funding? Are other ‘alternative fuel’ vehicles, like compressed natural gas or propane, eligible for 15 percent of total award? Is charging infrastructure eligible?
Is the state using 15 percent of its award on charging infrastructure projects?” [Electrek,
5/23/19 (=)]
Businesses Give A Boost To Electric Vehicle Charging In New Hampshire.
According to the New Hampshire Business Review, “A campaign to help promote local restaurants and businesses that support the use of electric vehicles has been launched in three New
Hampshire cities as part of a New England-wide campaign. Destination Electric, which is also under way in Connecticut, Massachusetts, Rhode Island and Vermont, aims to highlight the availability of electric car charging stations and the businesses that support
electric vehicles. So far 30 restaurants and businesses in Portsmouth have signed up for the initiative. Eight have in Dover, and three have in Nashua. Portsmouth City Councilor Josh Denton is participating in the campaign to help promote local restaurants
and businesses that support the use of electric vehicles. ‘Destination Electric advertises the cool places people can go in Portsmouth while their electric vehicle is charging,’ Denton told the Portsmouth Herald. Working with the New Hampshire Department of
Environmental Services, which reached out to him, Denton signed up the Portsmouth restaurants and businesses to participate in the campaign. ‘The purpose of the campaign is to show residents and visitors alike that electric vehicles are a mainstream mode of
transportation that have been embraced by numerous communities throughout the Northeast,’ he said.” [New Hampshire Business Reviews,
5/23/19 (=)]
Chad Ellwood
Research Associate
202.448.2877 ext. 119