Clean
Car Standards
Op-Ed:
Help Is On The Way For California’s Air And Climate. According
to an op-ed by Bill Magavern in Capitol Weekly, “What do the election results mean for Californians facing the worst air pollution in the country and catastrophic impacts of climate change? Californians will literally breathe easier when Joe Biden and Kamala
Harris take office in January. While the results of other races were mixed, the stark contrast between President Trump’s ‘Make Our Air Dirty Again’ record and Biden’s promising green agenda made control of the presidency the decisive factor in our environmental
outlook for the next four years. Since 2017, Californians have seen our clean car standards blocked by an oil-hugging U.S. EPA, while our requests for federal help in reducing diesel exhaust from trucks and trains have gone unheeded and our lands have been
opened up for drilling. Trump’s withdrawal from the Paris accord and denial of global warming’s impact on the devastating wildfires, heat waves and drought besetting our state have set back efforts to stabilize the climate. Biden’s plan to invest $2 trillion
in fighting climate change hinges largely on who controls the Senate, which will not be known until after the Georgia run-offs. But he can rejoin every other country in the world in the global climate collaboration immediately after taking office, and his
agencies can begin the task of undoing the many Trump rollbacks of environmental safeguards and then moving forward on the protections that Americans want for our air, water and land. Top priority should be given to restoring California’s authority to require
cleaner cars and ending the leasing of federal lands for fossil-fuel extraction. Then, Biden should move quickly to ramp up deployment of electric vehicles and charging infrastructure, and to tighten emission standards for heavy-duty trucks and locomotives
that carry goods across the country.” [Capitol Weekly, 11/18/20
(+)]
Presidential
Transition
EV
Startups Bid For Biden Support. According
to E&E News, “A wave of electric vehicle startups is boosting lobbying efforts for clean car policies just as President-elect Joe Biden gears up aggressive plans to decarbonize the nation’s transportation sector. Several manufacturers that are bringing electric
cars and trucks to the market are hiring lobbyists in Washington, D.C., growing a bloc of advocates that until recently represented a small niche on K Street. Companies are also forming alliances, betting that together they can harness the national attention
on economic stimulus and emissions reduction to build support for tax incentives, infrastructure spending and other supportive policies. ‘We have definitely seen an uptick in new companies coming to Washington that are eager to ensure their policy priorities
are heard,’ said Taite McDonald, a lobbyist at Holland & Knight, a law firm that represents a range of companies in the energy sector. Ben Prochazka, director of strategic initiatives at the Electrification Coalition, a nonprofit that supports EV adoption,
said the growth of EVs — and lobbying for them — is accelerating. ‘This is like the snowball that’s rolling down the hill and picking up speed and growing every year,’ Prochazka said of EV advocacy in the United States. A number of EV startups are trying to
challenge the dominance of Tesla Inc., the company founded by Elon Musk that is now the world’s most valuable automaker. They’re hoping to find a receptive audience in the White House after the departure of President Trump, who opposed the federal EV tax credit
and rolled back vehicle emissions standards. One would-be Tesla challenger is Lucid Motors Inc., a California-based company that hopes to unveil a luxury electric sedan called the Lucid Air next year.” [E&E News,
11/19/20
(=)]
'Amtrak
Joe' Faces Republican Resistance On Rail. According
to E&E News, “If President-elect Joe Biden tries to boost passenger rail in an infrastructure package next year, House Republicans will likely raise opposition. That was the takeaway of a House Transportation and Infrastructure subcommittee hearing yesterday
on America’s passenger rail system, which lags behind the advanced systems in other developed countries. Biden, whose daily train commutes as a Delaware senator earned him the nickname ‘Amtrak Joe,’ has indicated plans to advance a green infrastructure package
in the next Congress that could include investments in roads, bridges, rail and rural broadband (E&E News PM, Oct. 7). Robust investments in rail would help combat climate change by reducing greenhouse gas emissions from transportation, T&I Chairman Peter
DeFazio (D-Ore.) said in his opening statement yesterday. ‘Passenger rail is an important part of the climate change puzzle. It is extremely fuel-efficient, much more so than individual passenger vehicles, buses and airplanes, obviously,’ DeFazio said. ‘And
the commuter systems in particular take cars off our congested roadways and reduce short-haul flights.’ But several Republicans on the T&I Subcommittee on Railroads, Pipelines and Hazardous Materials questioned whether Amtrak truly needs more taxpayer dollars.
Rep. Rick Crawford of Arkansas, the ranking member on the subcommittee, said lawmakers must ensure that the service ‘makes responsible use of taxpayer resources required to keep it running.’ Rep. Scott Perry (R-Pa.) went a step further, accusing Amtrak of
using the COVID-19 pandemic as an excuse to justify more financial assistance in the next stimulus bill.” [E&E News,
11/19/20
(=)]
States
The
District May Mandate Electric Vehicle Infrastructure In New And Renovated Buildings.
According
to WAMU, “The D.C. Council wants to ‘future-proof’ new commercial and apartment buildings in the District for an electric vehicles. A bill going through Council would require that at least 20% of parking spots in new or renovated commercial and apartment buildings
have the infrastructure to allow for future electric vehicle charging. That means buildings must include sufficient power, wiring and a junction box to accommodate vehicle charging equipment. Developers don’t have to install the charging equipment yet. The
council voted unanimously Tuesday to approve the measure. It still has one final vote from the council and needs Mayor Muriel Bowser and Congress’ approval. The bill was introduced last year by Councilmember Mary Cheh (D-Ward 3) and co-sponsored by seven others.
A Bloomberg report estimates nearly 60% of new car sales will be electric in the next 20 years, though access to charging is among buyers’ top concerns about electric vehicle ownership. Cheh said the Council wants to see the District’s population transition
to electric vehicles (and public transit, walking and biking) to help meet its climate goals, but they hope eliminating the concerns about charging would help spur more electric vehicle ownership. D.C. hopes to be a carbon-neutral city by 2050. The rule would
apply to buildings with five or more units that have three or more parking spaces. If approved, it would go into effect in January 2022. It does give some leeway, as the District can grant waivers to owners who say they have severe financial hardship.” [WAMU,
11/18/20
(=)]
$1,500
Clean Fuel Reward Applies To All Electric Vehicles Bought In California.
According
to Inside EVs, “It applies to any fully-electric or plug-in hybrid vehicle with a battery pack bigger than 16 kWh. In case you were looking for additional discounts when buying a new electric vehicle, then this new so-called ‘ Clean Fuel Reward ‘ may be of
interest to you. It makes all EVs and some PHEVs purchased in the state of California $1,500 cheaper, and the only criteria is to have a certain size battery pack. Its introduction can be credited to the California Air Resource Board (CARB) and local power
providers and it actually applies to all fully electric and plug-in hybrid vehicles. You can still benefit from it regardless if buy or lease a new plug-in vehicle in the state, although said vehicle does have to be registered in California and the buyer needs
to be a state resident - buying one with the goal of taking it to another state probably isn’t possible. It’s worth noting that $1,500 is the highest reward that can be claimed, although in order to qualify for the maximum, a plug-in vehicle must have a battery
pack that’s at least 16 kWh, so some current plug-in hybrids will be eligible for smaller rewards. Read the Customer Terms and Conditions below.” [Inside EVs,
11/18/20
(=)]
California
To “Reward” Drivers For Buying Electric Cars. According
to The Driven, “The US state of California is making it even easier for drivers to make the switch to clean electric transport, with the introduction of a maximum $US1,500 ($A2,056) rebate. Dubbed the ‘California Clean Fuel Reward’ (CCFR), the new rebate will
offer drivers a point-of-sale price reduction when buying an electric vehicle through a participating car retailer. The $US1,500 rebate will mean that when added to the federal EV tax credit, the total financial incentives accessible to Californian drivers
will amount to $US9,000 ($A12,340). While the federal tax credit has reduced for EV makers that have sold more than 200,000 units, US president-elect Joe Biden has indicated that he will usher in a return of the full tax credit as part of a $US2 trillion climate
and energy package. The new CCFR rebate is aimed at further accelerating the adoption of EVs in the lead-taking state, which already accounts for about half of the 1.7 million electric cars on American roads (according to Veloz). ‘The instant point-of-sale
price reduction of up to $1,500, along with other programs like Clean Cars 4 All, will help make these ultra-clean cars more affordable, especially for low-income families or those living in disadvantaged communities,’ said vice-chair of the California Air
Resources Board (CARB) Sandy Berg in a statement. The announcement of the new rebate comes in a week rich in news about countries, states, and organisations pushing for a quicker acceleration to electric vehicles.” [The Driven,
11/19/20
(=)]
Auto
Manufacturers
BMW Turns German Auto Production Electric But
Pushes Combustion To UK, Austria. According
to Forbes, “Bavarian premium automaker BMW has announced it will electrify all of its German production plants and simultaneously push its combustion-engine production out of the country. BMW announced today that it was in the process of retooling all of its
German factories to build electric cars, rather than just gasoline, diesel and plug-in hybrid powertrains. The move is a radical one, and signals the end of the beginning of the argument over whether combustion or electric vehicle power will ultimately win
the personal transportation war. For most industry observers, the move is seen as BMW protecting its German workforce by ensuring they’re hooked in to the growth powertrain of the future, rather than stuck with the declining one for the next two decades. ‘By
the end of 2022 all our German factories will make at least one fully electric car,’ BMW’s Board Member for Production Milan Nedeljković said today. The move, which BMW priced at €400 million, will even take root at its flagship Munich plant, within site of
the BMW headquarters building that is itself an homage to the four-cylinder engine. The flagship plant produces modular four- and six-cylinder engines. It also builds BMW’s V8 and V12 powerplants for its high-performance and luxury vehicles, though they’ll
be moved to the Mini production facility in Hams Hall, England, and to Steyr, Austria.” [Forbes,
11/19/20
(=)]
BMW Moves Engine Production To Britain As German
Plants Go Electric. According to Reuters,
“BMW on Wednesday said it will retool its German factories to build electric cars and components and shift manufacturing of combustion engines to plants in Austria and England as part of a broader shift toward low-emission cars. Factories across the globe
are clamouring for investment into next-generation cars as electric vehicles gain traction with consumers and as governments hasten the demise of the combustion engine. Germany on Wednesday unveiled a 3-billion-euro ($3.56 billion) scheme to promote low-emission
cars and Britain said it will ban the sale of new petrol and diesel cars and vans from 2030. ‘By the end of 2022 all our German factories will make at least one fully electric car,’ Milan Nedeljkovic, BMW’s board member responsible for production said in a
statement on Wednesday. BMW’s Munich plant, which currently makes four, six, eight and twelve cylinder combustion engines, will be retooled with a 400 million euro investment until 2026, to make next-generation electric vehicles, the carmaker said. BMW said
production of eight and twelve cylinder engines will move from Munich to Hams Hall in England, and other engines will be made in Steyr, in Austria. Bavaria, where BMW is based, will receive the lion’s share of the investments, the carmaker said. The BMW i4
electric car will be built in Munich, a fully electric version of the 5-series and 7-series will be made in Dingolfing and an electric X1 will be made in Regensburg. BMW’s said the number of staff at its Dingolfing factory making electric car powertrains,
will double, to 2,000 workers. BMW’s plant in Leipzig, Germany, will start manufacturing the Mini Countryman and the Regensburg and Leipzig plants are being prepared to make battery modules, the company said.” [Reuters,
11/18/20
(=)]
Rivian CEO Eyes Smaller Electric Vehicles For
China, Europe. According to Reuters,
“Electric vehicle startup Rivian, which is backed by Amazon AMZN.O and Ford Motor Co F.N, on Wednesday said it plans to follow up its first two products, a full-size pickup and SUV, with smaller models targeted at China and Europe where it may eventually build
some vehicles. While Rivian plans to begin selling the SUV in Europe in 2022 and China soon after, ‘what will really drive volume in those markets is the follow-on products’ that are smaller and tailored for overseas customers, Rivian founder and Chief Executive
R.J. Scaringe told Reuters. The smaller models, which are expected to share key components with the pickup and SUV, will ‘fit some of those other markets really well, in particular China,’ Scaringe said. ‘To really scale in those markets as we bring on follow-on
products, having a production footprint outside the U.S. is going to be important,’ he said. ‘That’s a ways off.’ Scaringe added: ‘We wouldn’t be serious about building a car company if we weren’t thinking about China and Europe as important markets long term.’
The company’s first plant in Normal, Illinois, has begun pilot production ahead of next year’s launch of three models - the R1T pickup and R1S SUV, which Scaringe described as ‘halo products’ for Rivian, and a large electric delivery van for Amazon. Speaking
from a room overlooking the assembly line, Scaringe said the former Mitsubishi Motors plant reflects an unusual degree of vertical integration, with room for building motors and battery packs for the vehicles and for further expansion. The Amazon delivery
van is built on a version of the same platform, or basic underpinnings, used by the R1T and R1S.” [Reuters,
11/18/20
(=)]
Interview: EV Leader On Biden, DOE And Elon Musk.
According to an interview with Peter Rawlinson
in E&E News, “Peter Rawlinson, the CEO and chief technology officer of Lucid Motors Inc., once worked for Elon Musk. But he’s now aiming to take on Tesla Inc.’s dominance of the luxury electric vehicle market. Rawlinson, who previously served as chief engineer
at Tesla before joining Lucid in 2013, also says the incoming Biden administration could help his California-based startup by rolling out pro-EV policies. ‘We’re looking for great things now with the new administration. We hope the administration will have
that visionary policy in place to match the technology leadership of this country,’ he said in a recent interview. The CEO is gearing up to introduce the Lucid Air, a high-end electric sedan intended to compete with the Tesla Model S. Rawlinson was born in
the United Kingdom and attended Imperial College London before holding several roles in the U.K. auto industry, including principal engineer at Jaguar Cars and chief engineer at Lotus Cars. The EV leader recently spoke with E&E News about the time he flew
on a private jet with Musk to the Department of Energy, why he thinks analysts should stop obsessing over the cost of EV batteries and why he still drives a gas-powered car. What is Lucid currently focusing on? Let me tell you where we’re at as a company.
We’ve developed what I believe is the most advanced EV technology in the world. And we’re putting that into production in a brand-new factory in Arizona next spring. We’re going to make the best car in the world — the best EV in the world — in that factory.
It’s going to be the first EV with over 500-mile range. Do you see Lucid as a strong competitor to Tesla? We’ve got more advanced technology than anyone else, including Tesla. I think Tesla’s not even close to where we are.” [E&E News,
11/19/20
(=)]
Electric
Vehicles
Tesla’s S&P 500 Entry Has Market Seeking Next EV Cult Stock.
According to The Detroit News, “The ardent believers in Elon Musk’s vision have been
rewarded handsomely as Tesla Inc. transformed itself from a money-losing startup into one of the biggest companies in the S&P 500. Now investors are turning their attention toward smaller electric-vehicle companies in the hopes that they too might develop
the sort of cult following that helped push Tesla’s market value to $419 billion, more than that of General Motors Corp., Volkswagen AG and Toyota Motor Corp. combined. Tesla’s stock price has jumped more than 17% in two trading sessions after S&P Dow Jones
Indices on Monday made the long-awaited announcement that the company will be added to the benchmark. Some of the strength also came on back of an upgrade at Morgan Stanley, which said the company was on the verge of a ‘profound model shift’ from selling cars
to generating high-margin software and services revenue. Increased buying from fund managers and investors track the benchmark U.S. index will also continue to help Tesla shares over the next few weeks. Shares of Nio Inc., Workhorse Group Inc., Lordstown Motors
Corp. and Electrameccanica Vehicles Corp. also jumped sharply this week following Tesla’s S&P entry. Lordstown has risen 28% since the announcement, followed by a 17% increase in Workhorse and a 15% advance in Electrameccanica shares. Those gains added to
red-hot rallies in recent months that were fueled in part by China’s renewed focus on building its battery-driven vehicle industry – a development that has only further convinced many that the global car market will be dominated by electric cars in decades
ahead.” [The Detroit News, 11/18/20
(=)]
VIDEO: Chevron CEO Michael Wirth On Preparing For Potential Surge Of Electric Vehicles.
According to CNBC, “‘We’ve seen EV’s coming for quite some time,’ Chevron CEO Michael
Wirth told CNBC Wednesday. ‘We certainly have an expectation we’ll see these companies succeed — we’ll see electric vehicles penetrate into the economy — and yet, even in spite of that, demand for our products is still expected to continue to grow.’” [CNBC,
11/18/20
(=)]
Huge Amounts Of Money Are Pouring Into The Electric Vehicle Market.
According to Futurism, “There’s a new rush in the automotive industry to invest in electric
vehicles (EVs) and the companies making them. The new push comes from established companies like General Motors as well as newer startups like the U.K.-based Arrival, Axios reports. Across the board, the companies seem to be trying to cement their role in
a future with cleaner, electric transportation. Pushing Ahead For instance, General Motors had already planned to invest $20 billion in electric cars by 2025 and eventually transition Cadillac to an all-electric brand. But Reuters reports that GM will likely
announce an even more ambitious plan and timeline on Thursday, in which the company boosts the amount it invests and the speed at which it transitions to electric cars. ‘The pull-ahead in programs is real and the organization is really doubling down on speeding
up product development,’ an anonymous source close to the program told Reuters. New Lobby Outside investors are also pouring cash into the electric car industry. Axios reports that Arrival announced plans to go public with a $400 million deal on Wednesday.
This push in funding not only stands to speed up the process of developing new and improved electric cars, but could also influence politicians. According to The Verge, 28 companies including Arrival formed a lobbying group to push for EV-friendly national
policies, suggesting that the big money going into the EV space could lead to far-reaching changes in society.” [Futurism,
11/18/20
(=)]
U.S. Utilities, Tesla, Uber Form Lobbying Group For Electric Vehicles.
According to EcoWatch, “A coalition launched the Zero Emission Transportation Association
on Tuesday with plans to push for 100% EV sales across all sectors by 2030. The coalition of corporate entities that stand to benefit from broader electric vehicle adoption includes Uber, Tesla, utilities like Duke Energy and Southern Company, EV component
suppliers, charging companies, and EV startups. The group’s launch came the same day as UK Prime Minister Boris Johnson pledged to ban the sale of new cars wholly powered by gas and diesel by 2030, a decade earlier than previously planned. On Monday, S&P Global
announced Tesla will be added to the S&P 500 Index on December 21.” [EcoWatch,
11/18/20
(=)]
1 Big Thing: The EV Money Surge.
According to Axios, “Growing amounts of cash are pouring into electric vehicle development
that is underway via startups and legacy players. What’s new: A report out this morning indicates GM will be announcing an expanded strategy to take on Tesla, plus the U.K. electric van and bus company Arrival announced it is going public. Driving the news,
part 1: ‘General Motors Co will roll out details of an expanded and accelerated electric vehicle strategy on Thursday in an effort to convince investors it can be a serious competitor to Tesla Inc,’ Reuters reports, citing anonymous sources familiar with the
plan. GM is expected to say it intends to invest more on EVs than the previously outlined $20 billion by 2025, and to speed up plans to make its Cadillac brand all-electric, among other elements, per Reuters. Driving the news, part 2: Arrival, the U.K.-based
electric van and bus company, announced this morning that it’s going public via merger with a special purpose acquisition company, or SPAC. The deal to merge with CIIG Merger Corp values Arrival at $5.4 billion. Why it matters: The Arrival deal marks the latest
in a big wave of SPAC transactions in the EV space as investors bank on major growth in what’s still a niche market. Meanwhile, GM’s latest move shows how incumbent automakers are increasingly concluding they need to go big into EVs to position themselves
for the future, even though sales of internal-combustion models still dominate the market. Where it stands: The Arrival deal includes around $400 million in additional funding from investors including Fidelity, Wellington Management, a BNP Paribas energy funds,
and BlackRock-managed funds. This builds on prior funding of $118 million from BlackRock as well as Hyundai and Kia investments. Arrival says it has $1.2 billion worth of signed contracts with customers, including a UPS order for 10,000 vans, and its first
products are slated to go into production in the fourth quarter of 2021.” [Axios,
11/18/20
(=)]
The Evolving EV Lobby.
According to Axios, “Speaking of EV money, I want to spend another moment with the new
Zero Emission Transportation Association, which brings together EV startups, utilities and others to lobby for policies that will spur huge growth sales over the next decade. We wrote about them in yesterday’s edition, but there’s more to the story — one that
involves a rival EV lobbying group. State of play: There’s already a longstanding EV trade group called the Electric Drive Transportation Association. It has some overlapping membership but also an important difference: Big legacy automakers like Ford and
GM are in EDTA, but absent from ZETA. The intrigue: While incumbent automakers are investing big in EVs, The Verge, which also noticed the difference, points out that their lobbying can also collide with the interests of purely electric players. Background:
The incumbent industry as a whole was initially supportive of the Trump administration’s efforts to weaken Obama-era emissions and mileage rules. But the situation got insanely messy when a handful of legacy companies sided with California’s efforts to impose
tougher standards. What they’re saying: I asked Joe Britton, ZETA’s executive director, about the absence of the big established automakers and the difference with EDTA. ‘We’re cheering on everyone in the electric vehicle space and want to see them succeed.
ZETA is unique in that we are bringing together those who are all-in on accelerating transportation electrification,’ he said. ‘By having a clear goal, we are empowered to advocate for consumers, domestic manufacturing, public health and global competitiveness.’
EDTA declined to provide comment.” [Axios, 11/18/20
(=)]
International
Britain Will Ban Gasoline Cars In 2030. Why Are Experts Not Impressed?
According to Forbes, “The U.K. will ban the sale of gasoline-powered vehicles from 2030,
prime minister Boris Johnson has announced, pinning the future of personal mobility on electric vehicles. But the plans have failed to win over policy experts and climate researchers who have spoken to Forbes.com. The ban on gasoline vehicles—specifically
cars and light goods vehicles powered by petrol and diesel—had initially been slated for 2040, but has been brought forward by ten years as part of a ten-point plan intended to achieve net zero greenhouse gas emissions by 2050. Hybrid vehicles, meanwhile,
will be phased out by 2035. Electric vehicle take-up will be supported with an initial $3.7 billion of public funding to grow the electric charging network and to build ‘gigafactories’ to produce batteries. Among the other pledges made by the prime minister
were some $654 million to develop hydrogen production, $1.3 billion to make homes more energy efficient, and a promise to plant 30,000 hectares of trees per year by 2025. But while the ten-point plan was intended by the government to be seen as a bold and
definitive climate platform, the proposals have come in for criticism from several angles. Luke Murphy, head of the influential Institute for Public Policy Research’s Environmental Justice Commission, said that the ban on gasoline vehicles was welcome—but
it would be actions, not words, that would make the difference on climate change. ‘The phase-out of new petrol and diesel vehicles by 2030 is an important step, but it won’t be enough just to switch to electric vehicles,’ Murphy said. ‘If we attempt to replace
vehicles one-for-one, it will be a huge draw on other environmental resources.’” [Forbes,
11/18/20
(=)]
Electric Cars Move To Center Of U.K.’s Fight Against Greenhouse Gases.
According to Bloomberg, “Britain is beginning to look at its growing fleet of electric
cars as both a way to create jobs and balance the power grid, moving transport to the center of the fight against greenhouse gas emissions. Prime Minister Boris Johnson on Wednesday called for phasing out of cars fueled entirely by gasoline and diesel by 2030,
10 years ahead of the previous schedule. With National Grid Plc expecting as many as 30 million electric vehicles on the road by 2040, the energy and transport industry are stepping up their preparations for the shift. ‘The increasing EV demand is a positive
signal for the whole EV value chain from charge point operators to energy suppliers, as well as lending support to the U.K.’s decarbonization ambitions,’ said Jacob Briggs, senior consulting analyst at Cornwall Insight. While EVs first gained credibility as
a way to remove pollution from city centers, policy makers are starting to embrace other consequences of putting so many of them on the road. In addition to creating employment for those who build and service charging networks, the cars could help moderate
swings in power supply and demand if their owners plug into the grid when not driving. Those effects on the U.K. economy are emboldening policy makers to move faster on encouraging electric cars. Johnson’s plan involves 12 billion pounds ($16 billion) of support
for green industries including EVs. It would put the U.K. ahead of France and Spain, which have 2040 target dates for phasing out traditional engines, and in line with Ireland and the Netherlands. The only country with a more ambitious target for such a ban
is Norway, with a date of 2025.” [Bloomberg, 11/19/20
(=)]
Research and Analysis
A £4bn UK 'Mini Tesla' Choosing To List Stock In US Is Worrying.
According to The Guardian, “Right on cue, here comes a £4bn stock market listing of a
young and exciting UK electric vehicle company – a mini Tesla, if you wish. It’s just the thing for ministers to crow about, you might think: evidence that the UK possesses a few fast-growing tech innovators capable of injecting oomph into the government’s
loose 10-point sketch for a green revolution. There’s just one drawback. Arrival, with its head office in London and operations in Oxfordshire, will not be arriving on the London Stock Exchange. It is listing in New York on Nasdaq, via injection into one of
those special purpose acquisition companies, or SPACs, that are all the rage on Wall Street this year. From Arrival’s point of view, you can understand why it chose the US. Tesla’s gravitational pull is strong. The pool of investors wanting to punt on electric
vehicle firms is bigger. And, since Arrival intends to plant its decentralised ‘microfactories’ around the world, the international profile that comes with a US listing helps. It adds to the backing Arrival has already received from Korean carmakers Hyundai
and Kia. The appeal of the SPAC model is also easy to explain. This is the structure whereby investors put up capital and then look for a target to buy. Critics deride it as ‘blank cheque’ investing but the acquired companies – in this case, Arrival – get
speed and, potentially, long-term partners. Arrival likes the look of the financial backers assembled by Peter Cuneo, a former chief executive of the Marvel Comics company. Now a listing, and $660m (£500m) of fresh capital, will be achieved in early 2021 without
fuss. One response is to shrug and say that Arrival’s choice of stock market home doesn’t
matter.” [The Guardian, 11/18/20
(=)]
Opinion Pieces
Op-Ed: Subsidizing Electric Vehicles Is Poor Policy That’s About To Get Worse.
According to an op-ed by Dan Eberhart in Forbes, “Electric Vehicles (EVs) are currently a costly way to reduce carbon emissions and unlikely to put a serious dent in oil demand in
the near term. But they remain popular with the net-zero crowd, which sees electrification as the answer to climate change. Had Democrats swept this year’s election, the EV sector would have benefited from a wave of federal subsidies. With voters opting for
a divided government, any new provisions for EVs will probably be modest. The EV industry isn’t worried. Subsidizing EVs isn’t just a poor investment of taxpayers’ dollars—it turns out subsidies are also bad for business. Tesla founder Elon Musk has even been
critical of government subsidies. ‘Over the years, there’s been all these sort of irritating articles like Tesla survives because of government subsidies and tax credits,’ Musk said in 2017. ‘All those things would be material if we were the only car company
in existence. We are not. There are many car companies. What matters is whether we have a relative advantage in the market.’ Tesla is in an awkward position when it comes to government subsidies. Early on, the company received $465 million from the government’s
Advanced Technology Vehicles Manufacturing (ATVM) Loan Program. The funds helped Tesla develop the Model S, a luxury vehicle with a price tag starting at $68,000 back in 2017. Whatever your position on subsidies in general, it’s hard to make the case that
taxpayers should foot the bill to produce luxury cars marketed to the wealthiest Americans. You can only imagine the outcry if, say, the government subsidized the production of BMWs or Cadillacs.” [Forbes,
11/19/20 (-)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119