States
Sacramento
To Be Test Market For Electric-Car Lease Program. According
to the Sacramento Business Journal, “The Sacramento region will be the first test market for a new AAA car subscription service that offers users one of 55 Volkswagen e-Golf cars with insurance, maintenance and roadside assistance for about $11 a day. The
program is being funded by Electrify America and run by AAA Northern California, Nevada & Utah. ‘Some people might not be sure they can live with an electric vehicle,’ said Rich Steinberg, senior director of marketing with Electrify America, in a phone interview.
The short-term subscription service is part of Electrify America’s Green City initiative to make zero-emission vehicles available in the Sacramento region. Lease terms are three, six, nine or 12 months, and they will allow residents in Sacramento to drive
the electric cars without the commitment of a long-term lease or a purchase, he said. Sacramento is a test market for Electrify America and well-positioned to offer the electric car service. Between the Sacramento Municipal Utility District, Electrify America
and other organizations, the region is home to many public fast-charging sites. Those charging sites are also bolstered by car chargers at local parking garages, state offices and commercial sites. ‘Our association with Electrify America is making it easier
than ever to enjoy the benefits of driving an electric vehicle and includes additional discounted options for low income and disadvantaged communities,’ said Matt Alfano, vice president of mobility innovation with AAA Northern California, Nevada & Utah, in
a news release. The low-income guidelines for the e-Golf program follow SMUD’s guidelines, Steinberg said.” [Sacramento Business Journal,
8/4/20
(=)]
Congress
Casten
Bill Aims To Increase Appeal Of Fuel-Efficient Cars. According
to E&E News, “New legislation would encourage Americans to purchase more fuel-efficient cars in a bid to curb climate pollution from transportation. The ‘Efficient Vehicle Leadership Act’ from Rep. Sean Casten (D-Ill.) would provide financial incentives for
consumers to purchase vehicles with better gas mileage and lower emissions. The financial incentives would take the form of a refundable tax credit, which consumers could choose to use as a discount on the vehicle’s sticker price. The bill comes after transportation
surpassed the power sector as the country’s largest source of greenhouse gas emissions. Transportation was responsible for 1.9 billion tons of carbon dioxide entering the atmosphere in 2018, according to EPA data. ‘Passing legislation to begin decarbonizing
the transportation sector could and should have happened years ago — but the next best time is now,’ Casten, a member of the House Select Committee on the Climate Crisis, said in a statement. ‘Fuel efficient vehicles are better for the environment, and cost
consumers less at the pump — a true win-win,’ he added. ‘Reducing vehicle emissions is essential to combating climate change — one of the greatest threats to our lifetime.’ The bill is modeled after the ‘Feebates’ proposal, a bipartisan measure introduced
in the Senate during the Obama administration, according to a news release from Casten’s office. It appears unlikely that the legislation would become law unless Democrats regain control of the Senate and the White House in the November elections.” [E&E News,
8/5/20
(=)]
DeFazio
Says Short-Term Transportation Bill Likely. According
to E&E News, “Congress will likely need to pass a short-term extension of expiring surface transportation programs this fall, House Transportation and Infrastructure Chairman Peter DeFazio said yesterday. ‘Just being real frank with you: In all probability,
we’re going to be negotiating an extension,’ the Oregon Democrat said on a Zoom call with the U.S. Conference of Mayors’ Infrastructure Task Force. Prior to yesterday, DeFazio had avoided conceding the possibility of a short-term extension, which would foster
uncertainty for state and local transportation planners. Instead, he had sounded upbeat about passing a five-year reauthorization of the 2015 Fixing America’s Surface Transportation (FAST) Act, which expires on Sept. 30. The FAST Act reauthorization was included
in the massive $1.5 trillion infrastructure package, H.R. 2, that passed the House last month (E&E Daily, July 2). But the Senate has made much slower progress. While the Senate Environment and Public Works Committee approved a $287 billion highway bill last
summer, other committees have yet to draft or mark up their portions of the surface transportation reauthorization. ‘We’ll continue to push for H.R. 2. But to be very frank, the Senate has done virtually nothing,’ DeFazio said. ‘They passed a surface transportation
bill out of committee last summer with a lot of hullabaloo ... and since then, nothing’s happened,’ he said. ‘The Commerce Committee hasn’t held a single hearing on rail,’ he added. ‘The Finance Committee hasn’t held a single hearing on transit. You can’t
do a surface bill without transit and rail.’” [E&E News, 8/5/20
(=)]
EPA
EPA
Defends Rule Authorizing Year-Round Use Of E15 In Most Vehicles. According
to Inside EPA, “EPA in a new legal brief is defending its rule allowing year-round use of 15 percent ethanol (E15) blends in most vehicles by saying refiners wrongly claim the move is unlawful and that some fuel retailers lack standing to sue over the decision,
while also rejecting biofuels makers’ call to allow higher blends. ‘E15 already is in use for much of the year and in general exists at a lower volatility level (lower [Reid Vapor Pressure (RVP)]) than the predominant E10. Thus, permitting further E15 use,
as the E15 Rule does, is fully supportable and eminently reasonable from an historic, practical, and technical perspective,’ the agency says in a July 31 brief in American Fuel Petrochemical Manufacturers (AFPM), et al. v. EPA, et al. The case, pending in
the U.S. Court of Appeals for the District of Columbia Circuit, consolidates lawsuits filed over EPA’s June 2019 rule that changed a prior Clean Air Act interpretation and related rules to allow an annual E15 waiver from the RVP limits during the June 1-Sept.
15 summer ozone season. Summertime fuel must typically have an RVP of not more than 9 pounds per square inch (psi), though an earlier waiver allowed use of the national standard E10. However, blends above E10 were prohibited from year-round use, and the E15
waiver now allows that fuel to be used throughout the year. EPA justified the sale of E15 year-round on the grounds that it is ‘substantially similar’ to existing E10 test fuel, but the pro-ethanol Urban Air Initiative (UAI) and allied biofuels groups are
challenging the rule in the D.C. Circuit by arguing that the agency should have allowed even higher blends.” [Inside EPA,
8/4/20
(=)]
Auto Manufacturers
Avoid Auto Stocks, Traders Say As Ford Shares Rise On CEO Switch.
According to CNBC, “Avoid the auto trade. That’s what two traders recommended following
Ford’s surprise announcement that CEO Jim Hackett is retiring in October. Jim Farley, the company’s chief operating officer, is set to succeed him. The move marks the fourth time Ford has replaced its chief executive since the Great Recession. Ford’s stock
closed more than 2.5% higher Tuesday and was up 0.4% in Wednesday’s premarket in response to the news, a spot of green in an otherwise difficult year for the legacy automaker. Shares of Ford and General Motors are down 26% and 29.5% year to date, respectively,
while electric upstarts Tesla and Nikola have gained 255.5% and 276%. Even so, none of the pure-play auto stocks look attractive to Mark Tepper, president and CEO of Strategic Wealth Partners. ‘I wouldn’t be buying any of the automakers right here,’ he told
CNBC’s ‘Trading Nation’ on Tuesday. ‘Vehicle sales overall have been on the decline for years and that was before any of this Covid stuff happened. And if you think about it, if work-from-home is permanent to some extent as a lot of people believe it’s going
to be, people are going to be putting fewer miles on their cars.’ Tepper added that while electric vehicles seem like an imminent threat to the traditional automakers, they still only make up about 3% of total vehicle sales. Moreover, he said, Tesla’s sale
of zero emission credits tipped its scales toward profitability last quarter — not vehicle sales. ‘We’re not seeing a lot of those either,’ Tepper said. ‘Just to kind of put things in perspective, Tesla has 10 times the market cap of Ford.” [CNBC,
8/5/20
(=)]
Tesla’s Chinese Rival Xpeng Raises $400 Million Ahead Of U.S. IPO, Sources Say.
According to CNBC, “Chinese electric car maker Xpeng Motors has raised $400 million ahead
of an initial public offering (IPO) in the U.S., two sources familiar with the matter told CNBC. The Tesla rival was in talks to raise $300 million, CNBC previously reported, but an additional investor has come on board, bringing the total to $400 million.
This current sum of money is as add-on to $500 million the company raised last month. In addition to existing investors Alibaba and sovereign wealth fund Qatar Investment Authority, Abu Dhabi’s sovereign wealth fund Mubadala has also jumped on board as part
of the $400 million tranche, the two sources said. Mubadala was not immediately available for comment when contacted by CNBC. The current funding round is close to completion, the sources said. Xpeng’s is raising capital ahead of an IPO in the U.S. It has
confidentially filed for a listing on Wall Street, but has not decided what exchange to list on, sources previously said. The company’s IPO would follow other Chinese electric carmakers — Nio and Li Auto — which have already listed in the U.S. and whose share
prices have risen sharply recently. Nio’s stock is up 239% this year while Li Auto, which listed last week, has seen its shares rise 45% since its debut. Meanwhile, Tesla is over 237% higher year-to-date. But Xpeng’s upcoming listing also comes at time of
rising tensions between the U.S. and China which could impact foreign firms trading on Wall Street.” [CNBC,
8/5/20
(=)]
AP | Ford COO To Lead Company As EV Transition Continues.
According to E&E News, “Jim Farley will lead Ford Motor Co. into the future as the global
auto industry faces a new era of autonomous and electric vehicles. The company named Farley, 58, as its new CEO effective Oct. 1, replacing Jim Hackett, who will retire after three years at the helm. Farley, who has been with Ford for more than a decade, had
been chief operating officer since February and clearly was being groomed for the top position. He faces tough challenges as the industry emerges from the coronavirus pandemic. Ford is losing money and is transitioning from an aging model lineup to new vehicles,
including those powered by electricity. It’s also in the midst of an $11 billion restructuring plan to cut costs and bureaucracy and make money off its autonomous vehicle unit. Executive Chairman Bill Ford, the great-grandson of founder Henry Ford, said the
board briefly discussed looking outside for a CEO but was inspired by Farley’s leadership and felt the company is moving in the right direction. ‘We talked about it, and we did throw some names around,’ he said on a conference call yesterday. ‘Every time we
did that, we always felt that Jim Farley rose to the top.’ As COO, Farley led the company’s global markets and product development. He was in charge as Ford rolled out a revamped F-150 pickup, the new Bronco off-road SUV brand and the electric Mustang Mach-E
SUV. Farley, who was hired away from Toyota by then-CEO Alan Mulally in 2007 to run Ford’s marketing operations, said yesterday that his main goal is for a smooth transition, but he has plans for the future that will be announced later.” [E&E News,
8/5/20
(=)]
General Motors Partners With EVgo To Install 2,700 Fast Chargers Across US.
According to Clean Technica, “General Motors CEO Mary Barra announced July 31 that her
company is partnering with EVgo, the largest EV charging network in the US, to add 2,700 fast chargers in 40 cities across America over the next 5 years. GM and EVgo will install the new charging stations at grocery stores, retail outlets, entertainment centers
and other high-traffic areas. These are places where people typically spend 15 to 30 minutes, GM said, allowing them time to charge their vehicles while they run their errands. The new EVgo fast charging stations will be available to customers starting early
next year and will be located in highly visible areas. All drivers will be welcome, not just those who own GM electric vehicles. Most locations will be able to charge at least four vehicles simultaneously, GM says. The stations will have between 100 to 350
kW of charging power to meet the needs of the increasingly powerful EVs that are coming to market soon. Charging at one of the new charging stations is expected to cost between $5 and $15, according to the Detroit Free Press. [Note: The Chevy Bolt, the only
electric car currently offered by General Motors, has a maximum charging rate of 55 kW.] One of the issues that holds some people back from purchasing an electric car is that they live in a condominium, apartment, or rental home where installing a charger
is not possible. Others would be more interested if they could charge their cars during the work day. ‘We are moving quickly to bring new EVs to market that customers will love,’ said GM CEO Mary Barra.” [Clean Technica,
8/4/20
(=)]
Elon Musk's Cybertruck Escape Hatch.
According to Axios, “Tesla CEO Elon Musk appears to be open to the idea that the blocky,
sci-fi looking Cybertruck might not light the pickup truck market on fire. Driving the news: Musk, in an interview with Automotive News, said building a more conventional-looking pickup is a ‘fallback strategy’ if things don’t work out for the Cybertruck that’s
slated to begin production next year. Details: Here’s some of the interview via Business Insider (the Automotive News piece is paywalled)... ‘Musk said he realized the Cybertruck could be ‘a complete failure,’ but the company has a back-up plan.’ ‘But I wasn’t
super worried about that because if it turns out nobody wants to buy a weird-looking truck, we’ll build a normal truck, no problem.’ What we’re watching: Musk said there are at least 200,000 reservations for the truck. However, it’s hard to say how many of
those refundable $100 reservations will translate to actual sales.” [Axios,
8/4/20
(=)]
Electric Vehicles
ChargePoint Raises $127M As Electric Vehicle Adoption Grows Among Fleet Operators.
According to Tech Crunch, “Electric vehicle charging network ChargePoint raised $127
million in funding in a bid to expand its platform for businesses and fleets in North America and Europe. A mix of existing investors from the oil and gas, utilities and venture industries added to the round, including American Electric Power, Chevron Technology
Ventures, Clearvision and Quantum Energy Partners. This latest addition, which was an extension of its Series H round, pushes ChargePoint’s total funding to $660 million. The company didn’t provide a valuation. An increasing number of businesses and municipalities
are turning to electric vehicles as governments enact stricter emissions regulations. Meanwhile, an increasing number of new electric passenger cars, SUVs and soon pickup trucks are coming to market. In the next 18 months, GM, Ford, Nissan, Volvo along with
startups Polestar and Rivian will have electric vehicles in production. Then there’s Tesla, which has continued to scale its existing portfolio while preparing to add new vehicles, including its Cybertruck. The upshot: ChargePoint is aiming to keep up with
the pace of electric vehicle adoption. But it’s not all about expanding the network for privately owned passenger vehicles. ChargePoint designs, develops and manufactures hardware, and accompanying software as well as a cloud subscription platform, for electric
vehicles. The company might be best known for its branded public and semi-public charging spots that consumers use to charge their personal electric cars and SUVs as well as its home chargers.” [Tech Crunch,
8/5/20
(=)]
The Electric Vehicle Bubble, Minus Tesla, Has ‘Started To Burst,’ Jim Cramer Says.
According to CNBC, “Wall Street’s craze for electric vehicle stocks is coming to an end
after valuations ballooned to levels that are unwarranted, CNBC’s Jim Cramer said Tuesday. That is with the exception of Tesla, the Elon Musk-helmed electric-vehicle company whose stock price has increased fourfold from its low point in March. ‘I think the
rest of the electric vehicle space looks like a boom, and then more like a bubble, one that’s already started to burst,’ the ‘Mad Money’ host said. ‘We keep seeing more and more of them come public, often via reverse mergers with special purpose acquisition
vehicles,’ known as SPACs, ‘and after some big moves higher, their stocks have started to implode.’ The electric vehicle, or EV, market is an emerging segment of the auto industry powered by the growing consumer interest in more eco-friendly products. The
International Energy Agency projects that the EV adoption will reach 125 million cars by 2030. Investors have thrown money into EV start-ups to get exposure to the market with companies like Nikola, Nio, Li Auto, Tortoise Acquisition, Spartan Energy Acquisition
and DiamondPeak, a special purpose acquisition company whose shares spiked nearly 27% since news broke Monday that it would acquire Lordstown Motors in a reverse takeover. Cramer, a once long-time skeptic of Tesla who got behind the stock late last year, said
investors are trying to get in on what they think could be the next Tesla. Shares of the electric-auto maker are up more than 255% this year, settling Tuesday at $1,487. However, many of these speculative EV plays have no business to show for and justify their
valuations, he said.” [CNBC, 8/4/20
(=)]
Bumps Ahead For EV Drivers: 'Plating' And Demand Spikes.
According to E&E News, “Researchers see two challenges that could disrupt the nation’s
transition to electric transportation: degraded batteries stemming from rushed charging and spikes in power demand as plug-in cars flood U.S. roadways. A pair of studies from the National Renewable Energy Laboratory (NREL) assert that there’s no quick fix
to these problems without more research into lithium-ion batteries and further innovations in the nation’s charging systems. The first study points to ‘critical barriers’ to how fast EVs can be recharged. To be competitive with gasoline vehicles, electric
cars should be capable of a full charge in 15 minutes or less, the researchers say. According to Donal Finegan, a scientist at NREL’s Center for Integrated Mobility Systems, the current life of big, expensive car batteries can be degraded by what is called
‘lithium plating.’ The condition occurs on car battery terminals when attempting superfast charging. Lithium, a soft, silvery-white and soluble metal, tends to be unstable. Plating, Finegan pointed out, ‘makes it more so when you’re trying to charge as fast
as you can.’ Instead of being absorbed into the graphite battery terminal, lithium can solidify during fast charging, forming plates on the terminals. Finegan and a team of other scientists were able to watch the plating process by probing recharging batteries
with powerful X-rays from a device called a synchrotron. ‘Once lithium plating occurs, the cell becomes increasingly unstable, potentially leading to thermal runaway and battery failure,’ they concluded.” [E&E News,
8/5/20
(=)]
Research and Analysis
High-Flying EV Maker Nikola Plummets In Bumpy Earnings Debut.
According to Bloomberg, “Nikola Corp.’s first earnings report was a bumpy one, with executives and analysts trading barbs and investors
sending the electric-truck maker’s shares plunging. The stock fell 18% in late trading after the company, which develops big rigs that run on batteries and fuel cells, said it lost $86.64 million in the second quarter, a five-times greater net loss than a
year ago. Within minutes of Nikola releasing its statement, its founder Trevor Milton was tweeting that the Phoenix-based company had provided analysts figures on the company’s share count. He wrote that taking those figures into account, the manufacturer
beat expectations, contrary to some who said it fell short. Analysts responded in kind by pressing Chief Executive Officer Mark Russell on Nikola’s earnings call for more information on new customers, production timing and any confirmation of a partnership
with a manufacturer that will build the company’s electric pickup model, called the Badger. ‘So, Mark, I just wonder, is this all we get?’ Paul Coster, an analyst at JPMorgan who rates Nikola the equivalent of a buy, said to Russell. Jeff Osborne of Cowen
said trying to follow timelines Milton has been communicating on social media has been ‘a bit confusing.’ Nikola hopes to begin testing the battery-electric version of its first semi truck, the Tre, with select customers in 2021. The company has a joint venture
with CNH Industrial NV’s Iveco truck unit to start limited production of the vehicle in Ulm, Germany, at the end of next year.” [Bloomberg,
8/4/20
(=)]
Just How Polluting Is Your SUV? This New Campaign Might Shock You.
According to Forbes, “For years, big, bulky sports utility vehicles have been among the most popular cars on American roads, and over
the last decade their popularity has exploded in the U.K. But a new British campaign is highlighting some ugly facts about these oversized run-arounds. In the U.K., SUVs now make up 40% of new vehicle purchases. According to British think tank New Weather
Institute, this trend is a result of what they call ‘Badvertising’: advertising that encourages consumers to make environmentally disastrous decisions. How disastrous, you ask? On average, SUVs use about a quarter more energy to move than a standard-sized
family car, because they are larger, heavier and create more drag. A quarter might not sound like much, but between 2010 and 2018, the proliferation of SUVs on the road worldwide resulted in an increase of 3.3 million barrels of gasoline used per day. As reported
by Forbes.com last year, the corresponding impact of SUVs on global greenhouse gas emissions astonished researchers. According to the International Energy Agency (IEA), the growth of the world’s SUV fleet caused an uptick of 0.55 gigatons of CO2 over one decade,
to 544 million tons of CO2, making SUVs ‘the second-largest contributor to the increase in global CO2 emissions since 2010 after the power sector.’ To put it another way, it means SUVs are producing more emissions than the entire aviation industry. The IEA
forecasts that if conventional SUV purchases continue at the same pace, by 2040 they will have offset the emissions savings of close to 150 million electric cars.” [Forbes,
8/4/20
(=)]
AP | Vehicle Malfunction Sparked Major SoCal Wildfire.
According to E&E News, “A wildfire in mountains east of Los Angeles that has forced thousands of people from their homes was sparked
by a malfunctioning diesel vehicle, fire officials said yesterday. The vehicle spewed burning carbon from its exhaust system, igniting several fires Friday on Oak Glen Road in Cherry Valley, and authorities were asking anyone who may have seen such a vehicle
at the time to contact investigators, according to a statement from the California Department of Forestry and Fire Protection. The blaze in Riverside County, among several wildfires across California, had consumed nearly 42 square miles of dry brush and chaparral
since it broke out Friday evening, fire officials said. As of last night, it was just 7% contained and the fire along with coronavirus precautions made for added stress at an evacuation center, said John Medina, an American Red Cross spokesman. Volunteers
used to ‘close contact’ with evacuees have had to adjust their approach during a time of social distancing, Medina said. ‘I mean, that’s part of the recovery of a disaster, is that you have to show warmth and love and caring. And that’s hard when you’re standing
6 feet away. So that’s the biggest challenge,’ Medina told KESQ-TV. The blaze began as two adjacent fires in a rural area near the city of Beaumont, about 85 miles east of downtown Los Angeles. Flames raced along brushy ridge tops and came close to houses
while firefighters attacked from the ground and air. By nightfall, the flames were burning into the San Gorgonio Wilderness, where the brush was becoming sparse and limited the fire’s intensity, according to Zach Behrens, a spokesman for the San Bernardino
National Forest.” [E&E News, 8/4/20
(=)]
AP | Sale Of Speedway Gas Stations Buys Marathon Breathing Room.
According to E&E News, “The $21 billion sale of Speedway gas stations has bought Marathon Petroleum Corp. some breathing room as the
pandemic continues to quash travel and smother demand for gasoline and jet fuel. Wall Street focused on the sale to 7-Eleven Inc. over the weekend, rather than the huge losses the company posted yesterday, with a lack of demand for fuel leading to refinery
shutdowns. The deal came just two days after Marathon announced the idling of refineries in New Mexico and California. The sale bolsters Marathon’s cash reserves after it posted an $868 million second-quarter loss. Marathon will use the proceeds to reduce
debt and pay dividends to shareholders. A lot of cash-starved companies have slashed dividends to ride out the pandemic, a more difficult proposition in the energy sector, where investors take a regular dividend as a given. ‘We think the dividend is safe,’
said Citi analyst Prashant Rao, who believes the cash infusion will provide some debt cushion to the Findlay, Ohio, company. The all-cash sale is expected to close in the first quarter of 2021 and comes with a 15-year fuel supply agreement for 7.7 billion
gallons per year for its stations. Marathon could also negotiate supply for 7-Eleven’s other retail gas stations. The companies did not say how many Speedway stations were included in the agreement. Marathon lists more than 10,000 U.S. locations under Marathon,
Speedway and Arco signs.” [E&E News, 8/4/20
(=)]
International
China’s Vehicle Sales Rise For Fourth Month With Outbreak Easing.
According to Bloomberg, “Vehicle sales advanced for a fourth straight month in China, with an easing in the coronavirus pandemic allowing
buyers to gradually return to showrooms. Sales of passenger cars such as sedans and SUVs, as well as commercial vehicles, increased 14.9% in July from a year earlier to 2.08 million units, the China Association of Automobile Manufacturers said in a statement,
citing preliminary figures. From January to July, vehicle sales declined by 12.7% to 12.3 million units. CAAM didn’t break out numbers for passenger cars or other vehicle types. Shoppers in the world’s largest car market are slowly resuming buying as the government
eases restrictions, raising expectations that the auto slump currently in its third year may be nearing an end. Yet challenges remain: ride-hailing apps are reducing the need for personal ownership, and trade tensions with the U.S. threaten China’s economic
recovery. The government added stimulus measures such as tax rebates to attract car buyers, while automakers that temporarily suspended operations amid the outbreak now offer generous discounts. Global carmakers, including Tesla Inc., General Motors Co. and
Volkswagen AG, have spent billions of dollars to expand in China and remain undeterred in their efforts to tap the market’s long-term growth potential. Chinese car associations are set to report the final tally for July later this month, including figures
specifically for passenger cars. While demand for sedans and SUVs has shown signs of rebound, commercial vehicles such as vans have thus far benefited more from China’s economic recovery.” [Bloomberg,
8/4/20
(=)]
Opinion Pieces
Op-Ed: The Tesla Secret.
According to an op-ed by Holman W. Jenkins, Jr. in the Wall Street Journal, “Wall Street is narrowly focused on Tesla’s stock price, the press on a brainless debate about whether
electric cars are good or very, very good. But try listening to Elon Musk. Last quarter the company lost $100 million on electric cars and reported a profit thanks to $400 million in mandated government gifts from other car makers who get their profits from
trucks and SUVs. Mr. Musk has stridently complained about regulators encouraging others to build their own electric cars rather than buy fuel-economy credits from Tesla. He urged Detroit to farm out its production of compliance vehicles to Tesla. He renewed
the proposal again this week. Essentially, he wants Tesla to help itself to a big share of the profits these companies are obliged, under green mandates, to shift to EVs. I know certain readers don’t want an analysis, only a thumbs-up or thumbs-down on Tesla.
This column has long said it’s great that people voluntarily want to make and buy electric vehicles. It’s the policy environment, to borrow a phrase, that has entered ludicrous mode. Let’s understand: If a market opportunity exists for electric vehicles, it
hardly requires an existing car maker to exploit it—Tesla has proved that. If a public good is served by promoting electric cars, GM or other existing auto companies hardly need to make them, any more than Exxon needs to make windmills and solar panels. This
is just a dumb category error, like saying a maker of arms for chairs must make arms for the military. Unfortunately policy salesmanship often operates on such dumb errors. You need
a story that can be told to an idiot (the public) as well as a bunch of special interests eager to be greased.” [Wall Street Journal,
8/4/20 (=)]
Analysis: There Aren’t Enough Batteries To Electrify All Cars – Focus On Trucks And Buses Instead.
According to Cameron Roberts in The Driven, “We need to change our transportation system, and we need to do it quickly. Road transportation is a major consumer of fossil fuels, contributing
16 per cent of all human-caused greenhouse gas emissions, which warm up the Earth’s atmosphere and cause changes to the climate. It also pollutes the air, threatening health and costing taxpayers billions of dollars annually. At the same time, electric vehicles
are getting cheaper, and vehicle range and the availability of charging stations are improving. This is exciting for many because it seems to suggest an easy and convenient answer to the problem of transportation emissions: if everyone swapped their fossil-fuelled
vehicle for an electric equivalent, we could all keep driving, safe in the knowledge that we are no longer killing the planet by doing so — and all while enjoying a new car that is quiet, cheap to power and fun to drive. Everybody wins, right? Unfortunately,
it’s unlikely to be that simple. Electric vehicles still produce air pollution and greenhouse gases from their brakes, tires, the electricity that powers them and the factories that build them. Even if we can address (or ignore) these problems, there is a
much larger stumbling block facing personal electric vehicles as a solution for climate change. In 2019, the world produced about 160 gigawatt hours (GWh) of lithium-ion batteries. That’s enough for a little more than three million standard-range Tesla Model
3s — and only if we use those batteries for cars, and don’t build any smart-phones, laptops or grid storage facilities.” [The Driven,
8/5/20 (=)]
Analysis: Electric Vehicles Are Too Damn Expensive.
According to Todd Lassa in Automobile Magazine, “The average Josephine on the street can’t afford to step into most electric vehicles on sale in the U.S. today, Tesla CEO Elon Musk
has admitted. ‘Our cars are not affordable enough,’ Musk said during his second-quarter earnings call in July. ‘We need to fix that.’ Electric cars and crossovers remain far too expensive to be daily commuters for the middle- and working-classes, who in congested
urban areas, at least, may be turning to e-bikes instead, an electric segment in which U.S. sales spiked 92-percent in April and 137-percent in May, according to Bicycle Retailer and Industry News. But if you are in the market for a new EV, here’s a list of
prices for all of the various electric-only vehicles sold in the U.S. No one outside of rental agencies ever buys a completely stripped base model, and few of us can afford cars or SUVs with every conceivable option on them, so I’ve configured a few key examples
below with moderate lists of options to get a better idea of where the heart of the market is. Many of the EVs that are not Teslas are available with generous incentives; where available I’ve listed applicable incentives and favorable lease rates. The list
begins with market leader Tesla, then covers the rest of the EV field from cheapest to most expensive. If they’re all out of your reach, don’t give up—you can buy a good e-bike for about $3,000.” [Automobile Magazine,
8/4/20 (=)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119