White House

 

Biden Admin Bows Slightly To European Pressure In Trade Clash. According to Politico, “The Biden administration on Thursday signaled some flexibility in how it would implement a revised tax credit for electric vehicles in the new Inflation Reduction Act that has rankled the European Union and other trading partners. The Treasury Department, in a new ‘white paper’ published Thursday, indicated it would adopt an expansive definition of which countries have a ‘free trade agreement’ with the United States. That could help some overseas automakers qualify for at least a portion of the credit that favors U.S. manufactured vehicles. The department also issued guidance for a separate tax credit for clean commercial vehicles which isn’t as stringent as the one for new consumer car sales. That could provide some opportunities for overseas manufacturers through dealerships that lease cars to consumers. The EU welcomed that move, calling it ‘a win-win’ for both sides. ‘U.S. taxpayers will be able to take advantage of highly efficient EU-made electric vehicles and components, while EU companies that provide their customers through leases with cutting-edge clean vehicles can benefit from the incentives,’ the EU said in a statement.” [Politico, 12/29/22 (=)]

 

EU Gives Guarded Welcome To U.S. Guidance On EV Tax Credits. According to Reuters, “The European Commission gave a guarded welcome on Thursday to guidance by the United States meaning that EU companies could partially benefit from the U.S. Inflation Reduction Act, but said further improvements were required. The $430 billion green subsidy law, which grants tax credits for buying U.S.-produced electric vehicles (EVs) and other green products, has triggered fears it could make the United States a world leader in the EV market at the expense of European countries. The Commission, which coordinates trade policy for the 27-nation European Union, said the U.S. guidance, published on Thursday, showed EU producers could benefit from tax credits for sales to commercial operators, but their vehicles would not be eligible for such credits when sold to private consumers. The scheme will start on January 1. The Commission said the Qualified Commercial Clean Vehicle Credit would be available to EU companies without requiring changes to established or foreseen business models of EU producers.” [Reuters, 12/29/22 (=)]

 

 

Congress

 

Senate

 

Treasury Delays New Restrictions For Electric Vehicle Tax Credits, Drawing Manchin’s Ire. According to The Hill, “The Treasury Department and IRS announced on Thursday that they are delaying restrictions on which electric vehicles can be eligible for tax credits under Democrats’ climate and tax bill from earlier this year, drawing ire from Sen. Joe Manchin (D-W.Va.). The legislation, known as the Inflation Reduction Act, removed caps on how many electric vehicles would be eligible for consumer tax credits, but added new stipulations regarding the manufacturing of and sourcing of minerals for electric vehicle batteries. The law says that these stipulations will take effect when the Treasury issues guidance for their implementation, which was supposed to happen ‘not later than December 31.’ But the Treasury said on Thursday that the guidance will not be ready until March and that in the meantime it will continue to use prior battery capacity requirements to determine if a vehicle can meet the credits. The stipulations in the Inflation Reduction Act were expected to create some new hurdles, requiring that at least 50 percent of the value of the battery components be manufactured or assembled in North America in order to be eligible for a $3,750 credit. Another $3,750 credit is available to electric vehicles if 40 percent of the value of the minerals contained in its battery are mined or processed in countries where the U.S. has a free trade agreement. In lieu of being mined or processed in such countries, the minerals could instead be recycled in North America to meet the second requirement.” [The Hill, 12/29/22 (=)]

 

Manchin Threatens Revolt Over EV Tax Credit Rollout. According to E&E News, “Sen. Joe Manchin is entering the new Congress poised to remain a thorn in the side of his party — on Capitol Hill and in the White House. The West Virginia Democrat and chair of the Senate Energy and Natural Resources Committee last week railed against the Biden administration’s initial implementation plans surrounding a tax credit for electric vehicles. The new incentives, which Manchin helped design, were created through the Inflation Reduction Act, the massive climate and social spending package Democrats passed in the fall of 2022 through the budget reconciliation process. ‘It is unthinkable that we still depend on China and Russia for the materials and manufacturing necessary to power our nation in the 21st century,’ Manchin said, ‘and I cannot fathom why the Biden Administration would issue guidelines that would ensure we continue on this path.’ The overall purpose of the EV tax credit language in the Inflation Reduction Act was multifold: incentivize U.S. manufacturing, encourage domestic energy independence and reward consumers for investing in more environmentally friendly products. Yet in documents last week, the Treasury Department said it needed more time to address the law’s critical minerals requirements and appeared to endorse a tax loophole sought by U.S. allies and foreign automakers that would allow Americans to receive the credit if they enter into certain leases of an electric vehicle.” [E&E News, 1/3/23 (=)]

 

Manchin Says He Will Work To Overturn Treasury’s EV Interpretation. According to Politico, “Sen. Joe Manchin pledged to work to reverse Treasury Department guidance released Thursday outlining that new sourcing requirements for critical minerals and battery components in electric vehicles won’t take effect until new guidance is issued, likely in March 2023. Treasury announced that the Inflation Reduction Act’s new sourcing rules ‘apply to vehicles placed in service after Treasury and the IRS issue proposed guidance on these requirements’ and that ‘until that proposed guidance is issued, the new clean vehicle credit amount will continue to be determined based on the vehicle’s battery capacity’ and may be subject to other eligibility criteria. ‘Treasury and the IRS intend to issue proposed guidance on the critical mineral and battery component requirements in March 2023,’ the department said. The announcement was included in a new white paper issued as part of a flurry of updated interim guidance on the electric vehicle tax credit Thursday. Manchin’s response: Manchin (D-W.Va.), who chairs the Senate Energy and Natural Resources Committee, called on Treasury ‘to pause the implementation of both commercial and new consumer EV tax credits until they have issued the appropriate guidance’ and said that he would introduce legislation in the coming weeks ‘that further clarifies the original intent of the law and prevents this dangerous interpretation from Treasury from moving forward.’” [Politico, 12/29/22 (=)]

 

Senator Wants U.S. To Pause Implementation Of New Electric Vehicle Tax Credits. According to Reuters, “Senate Energy and Natural Resources Committee chair Joe Manchin on Thursday urged the U.S. Treasury to pause implementation of commercial and consumer electric vehicle tax credits. The U.S. Treasury on Thursday issued guidance that will allow automakers to take advantage of commercial vehicle tax credits for consumer leasing that do not have the same strict battery sourcing rules that are in consumer purchase credits aimed at shifting U.S. supply chains away from China. Manchin said the Treasury guidance ‘bends to the desires of the companies looking for loopholes and is clearly inconsistent with the intent of the law. It only serves to weaken our ability to become a more energy secure nation.’” [Reuters, 12/29/22 (=)]

 

Manchin's Climate Deal Gets Rolled – Again. According to Axios, “With Treasury’s announcement, it’s safe to say Sen. Joe Manchin (D-W.Va.) is getting rolled by Biden over the deal he struck on the IRA, Jael writes. Why it matters: Manchin, who chairs the Senate’s energy committee, is starting to publicly fume against the president for finding ways around the spirit of the deal. Details: In exchange for his vote on the IRA, Manchin made Democrats include the mineral requirements for the tax credit — and he wanted them to be protectionist. Manchin also wanted Democrats to pass legislation to speed up government approvals for energy and mining projects. Neither ask happened — and now he’s fuming. What they’re saying: Manchin responded to the Treasury’s announcement by accusing the Biden administration of ‘bend[ing] to the desires of the companies looking for loopholes’ and called on Treasury to ‘pause’ the credits from taking effect.” [Axios, 1/3/23 (=)]

 

House

 

Q&A: Rep. Garret Graves, Ranking Member, House Transportation Aviation Subcommittee. , “[Politico] FAA has a goal of getting the first air taxis in the air by 2025, and having a more ubiquitous presence by the 2028 Olympic games. Being such a proponent of this, do you believe FAA will be able to execute this? [Graves] I do. To go off on a bit of a tangent here, there are environmental issues, the NEPA process. The solution, like drones, they’re actually going to improve environmental outcomes yet we’re set through the wringer and through just really an illogical or irrational process. And so that is an obstacle and I think something along those lines you’re gonna find bipartisan support for helping to streamline [it] because it’s going to result in greater efficiency and lower emissions. Separately, legislation we’ve got that has moved is doing some of the infrastructure planning. It’s really important to us, getting well out ahead of this, truly looking at the horizon and saying, ‘Okay, how do you integrate [advanced air mobility]? How do you integrate drones into your overall transportation system?’ When you look at the electricity needs of [air taxis], just like you’re seeing with charging stations for vehicles, from a mathematical perspective, you cannot get to the amount of electricity needs that are required for the targets that this administration in some states have set for EV transition … So how do you do infrastructure planning? Again, making sure we have the generation, that we have the transmission capacity, to actually charge? How do you look at the changes that will be needed for integrating this new mode of transportation into your overall system of transportation?” [Politico, 12/26/22 (-)]

 

 

Federal Agencies

 

Department of the Treasury (USDT)

 

Biden's EV Holiday Gift. According to Axios, “The global auto industry got a holiday gift from the Biden administration, which signaled it would make flexible supply requirements for a new, expanded EV tax credit, Axios’ Jael Holzman reports. Why it matters: More EVs may qualify for the credit — which was expanded under the Inflation Reduction Act — than the industry first expected. Driving the news: The Treasury Department said last week it would use a broad definition for ‘free trade agreement’ for mineral sourcing requirements in the credit. Treasury is expected to issue a proposed regulation in March formally enacting these requirements. The department also said EVs manufactured outside the U.S. can still qualify for the credit if they are leased (Reuters). Between the lines: It’s surely a breath of fresh air for companies across the global EV manufacturing space after the language threatened to kneecap the credit’s effectiveness. The IRA tied half the credit to EVs being made with minerals from the U.S. or nations with free trade agreements. However the law didn’t define a ‘free trade agreement,’ and regulators are exploring a definition that may let more cars qualify.” [Axios, 1/3/23 (=)]

 

Treasury Omits Leased EVs From Made-In-America Mandate. According to E&E News, “The White House and Joe Manchin are at odds over electric vehicles — again. The latest tiff comes after the Treasury Department released tax guidance last week spelling out how consumers can qualify for up to $7,500 in federal subsidies to buy a clean vehicle. The guidance effectively provides a loophole for leased vehicles by exempting them from the made-in-America manufacturing requirements needed to receive the full value of the subsidy. That prompted an angry reaction from Sen. Joe Manchin (D-W.Va.), who said the department was undermining the law’s intent to create a domestic manufacturing base for clean vehicles. ‘It only serves to weaken our ability to become a more energy secure nation,’ Manchin said in a statement. ‘It is unthinkable that we still depend on China and Russia for the materials and manufacturing necessary to power our nation in the 21st century and I cannot fathom why the Biden Administration would issue guidelines that would ensure we continue on this path.’ Treasury officials said they were merely following the law as it was written. The Inflation Reduction Act, which contains some $369 billion in clean energy tax credits, has different requirements for personal and commercial vehicles, which include leases. Vehicles bought under Section 30D, which covers new consumer vehicles, must satisfy domestic manufacturing requirements to receive the full value of the credit. But those requirements do not apply to vehicles purchased under Section 45W, which covers commercial and leased vehicles.” [E&E News, 1/3/23 (=)]

 

EV Tax Credits Lean Toward Leasing Even As Americans Don't. According to E&E News, “The Internal Revenue Service is suggesting that a new route to getting a federal discount for an electric vehicle will be to lease it — a practice that today most Americans reject for standard cars. The question of leasing versus buying has become important as the federal government figures out how to implement the new tax credits for EVs that were created by last year’s Inflation Reduction Act. Only 19 percent of Americans chose to acquire their car by lease as of early 2022, according to consumer research firm J.D. Power. The leasing route, proposed last week in tentative guidance by the IRS, was also rejected last week by a major player in Congress: Sen. Joe Manchin (D-W.Va.), who chairs the Senate Energy and Natural Resources Committee and is the architect of the Inflation Reduction Act’s EV tax credit rules. The IRS’s guidance ‘bends to the desires of the companies looking for loopholes and is clearly inconsistent with the intent of the law,’ Manchin said in a statement. ‘It only serves to weaken our ability to become a more energy secure nation.’ Manchin said that unless the IRS changed course, he would introduce legislation in the new year to close the leasing loophole. But he may not have the support of other Senate Democrats, who passed the act on a party-line vote and still hold a narrow majority in the Senate.” [E&E News, 1/3/23 (=)]

 

Treasury Uses Light Touch On EV Guidance. According to Politico, “The Treasury Department signaled its willingness to give maximum flexibility to automakers seeking to qualify for the new electric vehicle tax credits, and the move quickly attracted both praise and serious blowback. NO STRINGS: In interim guidance released Dec. 29, Treasury said new sourcing requirements for critical minerals and battery components in electric vehicles won’t take effect until new guidance is issued, likely in March — but the tax credit would still take effect without those strings attached. Sen. Debbie Stabenow (D-Mich.), a senior member of the Senate Finance Committee, said that Treasury’s move was ‘a step in the right direction’ to ensure that the sourcing requirements lead to more auto jobs in the United States. And Joe Britton, executive director of the Zero Emission Transportation Association, said that a quicker implementation of the rules just set companies up to fail. ‘What you want to have happen is to give companies an achievable standard,’ he said. … Mixed reviews: The Treasury Department also adopted ‘an expansive definition of which countries have a ‘free trade agreement’ with the United States,’ a move that ‘could help some overseas automakers qualify for at least a portion of the credit that favors U.S. manufactured vehicles,’ Doug Palmer reports. That’s making the European Union happy, along with a flexible interpretation of a separate tax credit for clean commercial vehicles that ‘could provide some opportunities for overseas manufacturers through dealerships that lease cars to consumers.’ The EU is still not wild about the new sourcing requirements, though, whenever they come into effect.” [Politico, 1/3/23 (=)]

 

Treasury’s Preliminary EV Tax Credit Guides Spark Mixed Early Reaction. According to InsideEPA, “The Treasury Department’s preliminary plans for awarding electric vehicle (EV) tax credits are sparking mixed reaction from Capitol Hill and other observers, with officials seeming to nod to EV backers’ requests for flexible implementation but also sparking objections from a key senator about alleged ‘loopholes’ sought by automakers. The plans, released Dec. 29, re-emphasize that Treasury’s delay until March of formal guidance about mineral and battery content sourcing criteria for a consumer EV credit will provide a temporary window for vehicles to secure a full, $7,500 credit even if they do not meet the sourcing requirements. ‘The additional guidance [is] a step forward,’ says one industry source, praising Treasury’s steps including its availability of a new list of vehicles eligible for the credit. But the source adds that vagueness remains on issues including the precise definitions of production from free trade nations, a requirement in the Inflation Reduction Act (IRA) for EVs to be eligible for the full incentive. Treasury released several documents related to initial implementation of the IRA’s multiple tax credits for electric, plug-in hybrid and fuel cell vehicles, including the section 30D consumer tax credit for new vehicles, the section 45W credit for commercial vehicles, and a section 25E incentive for used EVs.” [InsideEPA, 12/30/22 (=)]

 

New EV Tax Credits OK For Leased Vehicles, Fed Guidance Says. According to The Detroit News, “Leased vehicles will likely be able to qualify for new commercial electric vehicle tax credits without meeting stringent mineral and battery requirements or being built in North America, according to U.S. Treasury Department guidance released Thursday. It’s a victory for automakers like Rivian Automotive, Hyundai Motor and Kia Corp., as well as the South Korean government, all of which have urged the government to broadly interpret the definition of ‘commercial clean vehicles’ in the recently passed Inflation Reduction Act to include leased cars, rental cars and cars used for rideshare fleets such as Uber and Lyft. It goes against the wishes of Sen. Joe Manchin, the conservative Democrat from West Virginia who shaped the legislation and who asked the Treasury Department not to allow leased vehicles to qualify. He blasted the guidance in a statement Thursday and demanded the agency pause implementation until it could come in line with the intent of the law — to reshore manufacturing supply chains and reduce dependence on ‘foreign adversaries.’ The new guidance ‘bends to the desires of the companies looking for loopholes and is clearly inconsistent with the intent of the law. It only serves to weaken our ability to become a more energy secure nation,’ he said in a statement.” [The Detroit News, 12/29/22 (=)]

 

Cars Assembled Outside NA May Qualify For EV Tax Credit, Per New IRS Note. According to Electrek, “The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports. The Inflation Reduction Act significantly changed the way the EV tax credit works, and among those changes was a requirement that cars undergo final assembly in North America in order to qualify. The intent of this section is to bring EV manufacturing to the US in order to give the country a leg up in the future of the auto industry. The provision received sharp pushback from foreign countries, particularly South Korea, whose automakers, Hyundai and Kia, currently sell more electric cars in the US than any other foreign automaker. Both companies are establishing battery and car factories in the US, but those won’t be open for a few years, leaving them in the lurch for credits for the time being. European and Asian countries even considered filing complaint with the World Trade Organization, claiming violation of trade rules.” [Electrek, 12/29/22 (=)]

 

Postal Service (USPS)

 

USPS Announces New Targets For EV Truck Adoption, With 75% Electric Fleet By 2028. According to Fleet Owner, “The United States Postal Service announced Dec. 20 that it would acquire an even greater share of electric delivery vans than previously announced, thanks in part to a new injection of cash from the Inflation Reduction Act passed this summer. The latest on the fleet replacement effort significantly increases the portion of electric Oshkosh Defense trucks in the order and aims at phasing out new acquisitions of internal-combustion Oshkosh trucks by 2026. The latest update indicates the Postal Service now plans to buy a total of 106,000 vehicles, including at least 66,000 electric vehicles, made by Oshkosh Defense and other retailers. According to the USPS, the push to electrify the mail recently received a significant boost from $3 billion in earmarked funding from the Inflation Reduction Act. By procurement, the USPS now says it will buy at least 60,000 Next Generation Delivery Vehicles, or NGDVs, from Oshkosh Defense. Of those 60,000 NGDVs, at least 45,000 will be solely powered by batteries: the remaining 25% of the Oshkosh delivery vans will be gas-powered. To augment the vehicles from Oshkosh, the Postal Service also says it will buy commercially available vehicles from other automakers. Depending on availability and operational feasibility, the USPS will aim for about 21,000 of those commercial vehicles to be battery electric vehicles, with domestic manufacturers receiving priority.” [Fleet Owner, 12/28/22 (+)]

 

 

Manufacturers, Fleets, & OEMs

 

BYD Co.

 

BYD Hikes Pricing For Dolphin Model Despite Slowing Car Demand. According to Bloomberg, “BYD Co., China’s biggest maker of clean cars, has increased pricing for its popular Dolphin model and scrapped an entry-level version of the vehicle, just as automobile demand in the nation looks to be coming off the boil. Shenzhen-based BYD said 2023 pricing for its Dolphin subcompact hatchback will start from 116,800 yuan ($16,745) and stretch to 136,800 yuan. Previously, the all-electric Dolphin started from about 96,800 yuan, making the newer version around 20% more expensive. Some additional colors have been added and the new model offers a comfort mode on top of the original three driving modes of energy saving, snow and sports, according to local media reports. Its range is slightly extended at 420 kilometers (261 miles) on a single charge versus 400 kilometers. BYD’s decision to hike pricing is an interesting move in the face of slowing consumer purchases. As recently as last week, the founder and CEO of rival EV maker Nio Inc. warned of a challenging first half as a cut in government EV subsidies and the broader economic slowdown erode local demand in the world’s largest new-energy vehicle market.” [Bloomberg, 12/29/22 (=)]

 

Ford Motor Co.

 

Ford Lightning Owner Powers Home Essentials For 2 Days And Still Had Battery Left In The Tank. According to Electrek, “Thousands of Canadian residents awoke Christmas ay with no electricity after a massive winter storm swept across the area. One southern Ontario resident was able to keep the lights on for almost two days after plugging in his Ford F-150 Lightning, and still had plenty of battery left after the power came back on. Ford Lightning powers home after a severe winter storm When Ford released the F-150 Lightning electric pickup, the company called it ‘the smartest, most innovative F-150 that Ford has ever built,’ referring to it as the truck of the future. However, as Kumar Galhotra, president of Ford Blue, explains: We’re not here to make an electric truck for the few – Ford is committed to building one that solves real problems for real people. And that’s exactly what Ford did. Ford was the first in the US to offer bidirectional charging capabilities on an electric truck with Intelligent Backup Power, which ‘provides full-home power for up to three days or as long as ten days,’ depending on energy usage. The Ford Lightning also includes Pro Power Onboard, providing up to 9.6 kW of power spread across 11 outlets, including a 240V outlet in the bed.” [Electrek, 12/28/22 (+)]

 

General Motor Corp.

 

GM's Barra Nears To Top Of Forbes' Most Powerful List. According to Detroit Free Press, “Oprah Winfrey, Nancy Pelosi and Melinda French Gates pale in power compared with General Motors CEO Mary Barra, according to The World’s 100 Most Powerful Women of 2022 list. The list showcases innovators who lead on the world stage to ‘redefine traditional power structures and forge lasting impact in every sphere of influence,’ according to an article by Moira Forbes about the list, released earlier this month. These are female leaders who use their political and economic power to transform industries and solve society’s problems, Forbes said. ‘Since the inception of this list, we’ve seen women’s ability to create influence and power evolve — and that is especially true this year,’ Forbes wrote. So where did Barra land on this list? At power position No. 4 right behind the first woman to serve as vice president of the United States, Kamala Harris. … Forbes said Barra was selected because of her aggressive push to make an all-zero emissions vehicle lineup by 2035. Also noted is Barra’s target to sell more electric vehicles in the United States than current global EV leader Tesla by 2025.” [Detroit Free Press, 12/30/22 (+)]

 

Hyundai Motor Co.

 

Hyundai Has A Card Up Its Sleeve As It Moves To Dethrone Toyota, Its Electric Vehicles. According to Electrek, “Hyundai is officially the third-largest automaker globally after jumpstarting the brand in 2022, behind only Volkswagen and Toyota. However, the South Korean automaker may have an advantage as the auto industry transitions to electric vehicles. The Hyundai Motor Company, including Kia and Genesis, is establishing itself as a true competitor after surpassing General Motors (GM), Nissan, and Stellantis in annual volume this year, according to Bloomberg. Hyundai’s co-CEO Jaehoon Chang said in an interview: ‘We are on the right track, and this year we were very strong.’ He cited flexible supply chain management as key to the automaker successfully navigating the semiconductor shortage. The company has leaned heavily into EV tech, looking toward the future of travel, while some automakers (looking at you, Toyota) have failed to embrace the movement. Hyundai has maintained a progressive approach, releasing electric models such as the IONIQ 5 and Kia EV6, which continue to drive significant demand. The new releases helped Hyundai achieve a record November sales month in the US, as it battles with Ford for second in US electric vehicle sales.” [Electrek, 12/28/22 (=)]

 

Hyundai Will Only Sell EVs In Norway Starting Next Year. According to Inside EVs, “Norway is way ahead of most countries when it comes to the proportion of electric vehicles on the road and the rate at which people are switching from internal combustion to EV. Most new cars in the country have a plug, and of those the majority are pure EVs, which is why Hyundai has decided that starting January 1st of 2023 it will stop selling fuel-burning vehicles altogether in the nordic nation. The South Korean automaker took this bold step knowing that it won’t really have a major impact on its Norway sales, especially after it saw how much interest its new Ioniq 6 model got in the country. Thomas Rosvold, the Managing Director at Hyundai Motor Norway, said that ‘We have great faith in our model portfolio, and now that we have launched the all-new IONIQ 6, the time has come to sell only all-electric cars in the Norwegian market. IONIQ 5 and KONA Electric have long since taken positions as some of the most popular cars in the market, and we are confident that our pure electric cars will bring us continued success into the future.’” [Inside EVs, 12/29/22 (+)]

 

Kia Gives Us A Closer Look At The EV9, Its First Electric SUV. According to Electrek, “Kia is teasing its first electric SUV, the EV9, ahead of its 2023 debut. The three-row electric SUV first appeared as a concept vehicle at the 2021 Los Angeles Auto Show, but as it nears production, Kia is giving us a closer look at what we can expect. As the electric SUV market heats up, with demand climbing for EVs like the Rivian R1S and Tesla Model X, Kia is introducing its own ‘flagship’ EV SUV, the EV9. 2022 has been a hit for Kia with its first dedicated electric vehicle, the EV6 making its presence known in the EV market. After achieving record sales in November, Kia looks to keep the momentum rolling as it expands its zero-emission offerings. The Kia EV9 will be Kia’s second dedicated electric vehicle sitting atop The Hyundai Motor Group’s E-GMP platform, the same one used for Hyundai’s award-winning IONIQ 5 and Kia’s EV6. Like its parent company Hyundai, Kia has embraced fully electric technology, even infusing EV-inspired design elements into its entire KONA lineup as it winds down gas-powered car sales. The EV9 is expected to be a game changer for both Kia and the electric SUV market. The concept was first revealed at the LA Auto Show in 2021, and then in March, Kia released additional details, including a 0 to 100km/h time of 5 seconds and 540 km range (336 miles) on a full charge.” [Electrek, 12/27/22 (=)]

 

NIO Inc.

 

Nio Set New Electric Car Sales Record In December 2022. According to Inside EVs, “NIO continued to increase the production rate and global sales of electric vehicles in December, setting the second consecutive monthly record. The Chinese premium car brand reports that its total vehicle deliveries amounted to 15,815 last month, which is 51 percent more than a year ago, and over 1,600 units more than in November (14,178). That’s also the seventh five-digit monthly sales result, which indicates that NIO’s position noticeably strengthened compared to the first part of the year. NIO crossover/SUV sales decreased in December by 35 percent year-over-year to 6,842, while the sedan segment (a new category for NIO) expanded to another new monthly record of 8,973 units. The company delivered 4,154 ES7 SUVs last month, so it’s a small drop compared to November. It also means that the three older crossover/SUV models (EC6, ES6, ES8) noted just 2,688 together (that’s far from almost 10,500 units a year ago). The NIO ET7 flagship sedan also slowed down slightly (from 3,207 in November to 1,379 in December), but the ET5 is surging right now with a record 7,594 deliveries in its fourth month on the market.” [Inside EVs, 1/2/23 (=)]

 

Nio CEO Warns Of Sales Challenges In First Half On China Demand. According to Bloomberg, “Nio Inc. founder and Chief Executive Officer William Li said the Chinese EV maker may face a challenging first half as a cut in government subsidies and the broader economic slowdown erode local demand in the world’s largest new-energy vehicle market. Customers are likely to try place orders before the end of the year, when the national subsidies for electric vehicles are expected to be phased out, Li said at a briefing after the company’s launch of its latest models at a weekend event in Hefei, central China. ‘It will also take time for both the supply chain and consumer confidence to recover from the pandemic,’ Li said, adding that he expects a full recovery in May or June. The Shanghai-based automaker’s production has been upended by the effects of Covid. China’s initial strict adherence to its Covid Zero policy handicapped production, logistics, and delivery, before the government’s reversal in policy led to a sharp increase in infections, forcing Nio to miss its annual delivery target of 150,000 units.” [Bloomberg, 12/25/22 (=)]

 

Chinese EV Maker Nio Launches New Models, Upgraded Battery Swaps. According to Bloomberg, “Chinese electric vehicle maker Nio Inc. unveiled two models at a glittering annual customer event on Saturday evening, expanding its lineup in a bid to grab a bigger share of the market as demand for cars in the nation slows. At the weekend event in Hefei in central Anhui province, Shanghai-based Nio launched a revamped ES8, an iteration of the original electric sports utility vehicle it’s been selling since 2018, and a new pure electric coupe dubbed the EC7. With a starting price of 488,000 yuan ($69,800), the coupe targets buyers who want more space as well as sporty performance. The new ES8 will start at 528,000 yuan. Deliveries are expected to kick off in May and June, respectively.” [Bloomberg, 12/24/22 (=)]

 

Stellantis

 

Ram Reveals The Name For Its Electric Truck Set To Compete With Ford Lightning, Silverado EV. According to Electrek, “Ram’s electric truck is set to debut in less than a week, and up until recently, it wasn’t exactly clear what it would be called. A new trademark filed with the United States Patent and Trademark Office indicates it could go by the name Ram 1500 REV. Ram 1500 REV ready to make its appearance On January 5, Ram will reveal its highly anticipated electric truck, showcasing the ‘future of Ram Trucks.’ Many believed the electric Ram 1500 would go by the name Ram Revolution, as the company has referred to it, but it seems that was just the slogan for its marketing campaign. On December 20, 2022, FCA US LLC (formerly Chrysler Group) filed a trademark for Ram 1500 REV under ‘land vehicles, namely, passenger trucks.’ The REV could be a testament to its Ram Revolution, separating itself from the typical EV or BEV model ending. On the other hand, it could also indicate a ‘range extender’ model. Although a trademark isn’t a guarantee, you can tell where Ram is headed with this. We got a first glimpse of what the future of Ram Trucks could look like as part of its parent company, Stellantis’s Dare Forward 2030 strategy, which aims for 100% of its sales to be electric in Europe and 50% in the US by 2030.” [Electrek, 12/29/22 (=)]

 

Tata Motors Ltd.

 

Fully Electric Land Rover Defender Reportedly Coming In 2025. According to Inside EVs, “Land Rover is working on an all-electric version of the Defender due in 2025, per a recent report by British outlet Auto Express. The electric Defender will have around 300 miles of range and is expected to launch alongside a facelifted version of the existing ICE model. Auto Express claims it won’t just be the standard Defender 110 that will be electrified, but also the 2-door 90 and long-wheelbase 130. The electric Defender is expected to use Land Rover’s new MLA platform, which can incorporate both ICE and fully electric powertrains. The MLA platform already supports the new Range Rover and Range Rover Sport - electric versions of both will be unveiled in late 2024. As for battery size, the Auto Express report claims the Defender EV will feature a 100 kWh pack. It cites ‘Land Rover insiders’ as its source. Aside from the powertrain difference and a few minor exterior changes, the Defender EV should be very similar to the ICE version that’s been on sale since 2020. However, an infotainment upgrade is likely to come with the facelift as is an increase in the use of sustainable cabin materials.” [Inside EVs, 1/1/23 (=)]

 

Tesla Inc.

 

Tesla Sales & Production

 

AP | Tesla Says It Sold A Record 1.3 Million Vehicles Last Year. According to The Detroit News, “Tesla said Monday that sold a record 1.3 million vehicles last year, but the number fell short of CEO Elon Musk’s pledge to grow the company’s sales by 50% nearly every year. The 2022 figure topped the prior record of 936,000 vehicles delivered in 2021, but it was shy of the 1.4 million needed to reach the company’s 50% growth target. Sales grew 40% year over year, while production climbed 47% to 1.37 million. The shortfall came despite a major year-end sales push that included rare $7,500 discounts in the U.S. on the Models Y and 3, the company’s top-selling models. Tesla Inc., which is based in Austin, Texas, also had to deal with rising cases of the novel coronavirus in China, which cut into production at its Shanghai factory.” [The Detroit News, 1/2/23 (=)]

 

Tesla Delivers Record 405,278 Cars In Quarter But Misses Target. According to Bloomberg, “Tesla Inc. delivered fewer vehicles than expected last quarter despite offering hefty incentives in its biggest markets, reinforcing demand concerns that contributed to the worst month and year for the electric-car maker’s stock since its 2010 initial public offering. The company handed over 405,278 vehicles to customers in the last three months, short of the 420,760 average estimate compiled by Bloomberg. While the total was a quarterly record for Tesla, the company opened two new assembly plants last year and still came up short of its goal to expand deliveries by 50%. Tesla shares fell 3.7% as of 4:20 a.m. New York time Tuesday, before the start of regular trading.” [Bloomberg, 1/2/23 (=)]

 

Tesla Hits New Delivery And Production Records. According to Electrive, “Tesla has presented its delivery and production figures for the fourth quarter of 2022 – and thus also for the year as a whole. With 439,701 electric cars built and 405,278 delivered, Q4 was unsurprisingly a new record for both figures. For the full year 2022, Tesla’s brief announcement states 1,369,611 vehicles built and 1,313,851 delivered – the first time the million mark has been broken. Tesla has thus made enormous gains at the end of the year, with the factories in Texas and Brandenburg, which came on stream in 2022, contributing increasingly rising unit numbers to the overall result. As is well known, vehicles built in the Giga Berlin (Model Y) were delivered for the first time last March; for the Giga Texas, this was the case in April. In 2021, Tesla narrowly failed to reach the one million vehicle mark – in the end, the statistics showed 930,422 vehicles built and 936,172 vehicles delivered. The latter figure corresponded to an increase of 87 per cent on the 499,550 Teslas delivered in 2020. The current jump to 1,313,851 vehicles in customer hands, by the way, represents an increase of 40 per cent, while production rose by 47 per cent.” [Electrive, 1/3/23 (=)]

 

Tesla Deliveries Miss Estimates Due To Logistical Issues, Slowing Demand. According to Reuters, “Tesla Inc (TSLA.O) said quarterly deliveries fell short of market estimates on Monday, held back by ongoing logistical issues and growing demand concerns that rounded off a tumultuous 2022 for the Elon Musk-led firm. The company is still the world’s most valuable automaker even after losing 65% of its market value in 2022. Shares were down 5% in premarket trading on Tuesday. Tesla delivered 405,278 vehicles in the fourth quarter ended Dec. 31, short of analysts’ estimates of 431,117, according to Refinitiv. For all of 2022, the electric-vehicle maker’s deliveries rose by 40%, missing Musk’s 50% annual target. ‘We believe Tesla is facing a significant demand problem ... many investors underestimate the magnitude of the demand challenges Tesla is facing,’ Bernstein analyst Toni Sacconaghi said. The shortfall also highlighted the logistics hurdles facing a company known for its end-of-quarter delivery rush, with the gap between production and deliveries widening to 34,000 vehicles as more cars got stuck in transit.” [Reuters, 1/3/23 (=)]

 

Tesla Car Sales Grow Slower Than Expected, Amplifying Concerns. According to The New York Times, “Tesla said Monday that deliveries in the last three months of the year rose 18 percent from the previous quarter, disappointing Wall Street analysts and adding to pressure on Elon Musk, the company’s chief executive, to focus on making cars rather than overhauling Twitter. Tesla said it delivered 405,000 electric cars from October through December. Wall Street analysts had predicted that Tesla would sell around 420,000 vehicles, up from 343,000 vehicles in the third quarter. The company sold a total of 1.3 million cars in 2022, a 40 percent increase from the year before. That was short of the 50 percent annual growth target Tesla had set for itself. While the increases were impressive by auto industry standards, Tesla has become the most valuable carmaker in the world by growing at the sizzling rates more commonly associated with Silicon Valley technology companies.” [The New York Times, 1/2/23 (=)]

 

Tesla Kicks Off New Year In China By Extending Incentive Offers. According to Bloomberg, “Tesla Inc. is starting 2023 as it ended 2022: with incentives aimed at propping up sales in China. The carmaker is offering Model 3 sedan and Model Y sport utility vehicle buyers as much as 10,000 yuan ($1,450) if they take delivery by Feb. 28, according to Tesla’s website. The company is extending a 6,000-yuan subsidy it started offering in early December, and the other 4,000-yuan subsidy tied to purchasing insurance through Tesla was first introduced in November. Concerns about demand in China contributed to Tesla shares plunging 37% in December, the most dismal month in what also was the stock’s worst-ever year. While the automaker is expected to announce record quarterly deliveries in early January, it’s already ruled out meeting its objective to grow by 50% for the year. Tesla also offered discounts in the US to close out the year, first dangling $7,500 off just the Model 3 and Y, then extending that offer to the more expensive Model S and X.” [Bloomberg, 12/31/22 (=)]

 

Tesla Used Car Price Bubble Pops, Weighs On New Car Demand. According to Reuters, “Tesla buyers who waited months for their new car have had an unusual choice for much of the past two years: keep the new electric vehicle, or sell it at a profit to someone with less patience. But the days of the Tesla flip are numbered - a potential threat to new car prices that are already getting cut. Prices of used Teslas are falling faster than those of other carmakers and the clean-energy status symbols are languishing in dealer lots longer, industry data provided to Reuters showed. The average price for a used Tesla in November was $55,754, down 17% from a July peak of $67,297. The overall used car market posted a 4% drop during that period, according to Edmunds data. The used Teslas were in dealer inventory for 50 days on average in November, compared with 38 days for all used cars. Rising gasoline prices, an effect of the Ukraine war, boosted demand for Teslas, one of few long-range electric vehicles in the market. Tesla Inc (TSLA.O) itself raised prices faster than prices for other cars, building its profit margins. And buyers of some new Teslas took advantage of the booming market to sell their relatively new cars for a profit, then order new ones, driving demand for Tesla’s new cars.” [Reuters, 12/27/22 (=)]

 

Tesla’s Ugly December And Other Omens For The Auto Industry. According to Bloomberg, “The automaker that, for the longest time, could do no wrong is capping off a rough 2022 with an awful December. Tesla lost about $219 billion of market value just this month entering Friday’s session, which is almost as much as Toyota — the second-most valuable car company — is worth. Price and production cuts in China and heavy discounting in the US, where Tesla’s growth seemingly was unabated for a decade, has combined with investors growing increasingly concerned that CEO Elon Musk is more focused on overhauling Twitter than keeping at bay the many legacy automakers pushing into the electric-vehicle market. Musk’s pledge late Thursday that he’ll stop selling Tesla shares at least through next year isn’t doing much to help the stock. After all, he made similar proclamations in April and August, only to then keep offloading billions more. What Tesla needs next year are reinforcements for its product line. The company recently started delivering its long-awaited Semi truck — several years late, it should be noted — and plans to start producing its first pickup, the Cybertruck, in 2023. Tesla is far from finished as a growth story, but a tough economy with high inflation and rising interest rates will challenge even the indomitable Musk.” [Bloomberg, 12/23/22 (=)]

 

Estimated Tesla Order Backlog Decreased To Just 163,000 As Of Dec 8. According to Inside EVs, “Tesla’s estimated global electric car order backlog continued its quick decrease in the early days of December, reaching the lowest level in more than a year. According to Troy Teslike, an invaluable source of Tesla stats and forecasts, the estimated order backlog as of December 8, 2022 was roughly 163,000 - down by 27,000 or 14% in just one week from November 30 (190,000). For reference, it was at nearly 300,000 at the end of September and through October, nearly 400,000 at the end of August, and close to 500,000 in the period between March and July. In other words, the total value has lowered by more than 300,000 or two-thirds since July.” [Inside EVs, 12/26/22 (=)]

 

Tesla Model Y Is Now The Best-Selling Car In All Of Europe. According to Electrek, “Tesla Model Y became the best-selling car in all of Europe in November. It’s for the second time, and not just for electric vehicles, but all cars. Over the years, Tesla’s vehicles have often become the best-selling vehicles in certain European markets. However, it never topped the list of best-selling cars in the entire European continent until this September when it took over the continent. The automaker didn’t maintain its spot in October due to a lack of shipments coming from China, but now the November numbers are in, and Tesla is back on top with the Model Y. According to data from Automotive News Europe, Tesla delivered nearly 20,000 Model Y vehicles in Europe last month: ‘Tesla sold 19,144 units of the premium midsize SUV, a gain of more than 260 percent on the same month last year. It was a big rebound for the electric model after it fell out of the top 50 in October, just one month after finishing as Europe’s overall top-seller.’” [Electrek, 12/29/22 (=)]

 

Tesla Takes Delivery Of Army Of Robots To Build Cybertruck. According to Electrek, “Tesla is taking delivery of a little army of Kuka robots, and the timing suggests that they will be used to build the Cybertruck electric pickup truck. We are not talking about an army of Tesla Bots… not yet. Kuka robots are mostly industrial arm robots used in manufacturing. It is Tesla’s preferred robot for most of its production line along with some FANUC robots. We reported on Tesla taking a massive delivery of Kuka robots at Gigafactory Texas to build the Model Y production lines last year. Now Tesla is taking delivery of another large order of Kuka robots, according to a bill of landing spotted by Twitter user @gregtruck: While a significant number, 66 robots are not actually that many for most automotive production lines. Of course, this could be one of several shipments coming, but Tesla has also been working to simplify its production lines, and it has been able to significantly reduce production spaces needed and the number of robots over the last few years.” [Electrek, 12/24/22 (=)]

 

Tesla Charging

 

Tesla Celebrates 10,000 Superchargers In China. According to Inside EVs, “Tesla announced that its Supercharging network on the Chinese Mainland has reached a milestone of 10,000 individual connectors (stalls). The jubilee Supercharging stall was installed at the Shanghai Oriental Pearl Tower Supercharging Station. Shanghai also has more than 100 stations and over 1,000 stalls. The cumulative number of Tesla Supercharging stations on the Chinese Mainland is currently above 1,500, compared to 1,000 units in October 2021. On top of that come destination charging stations (more than 700, with more than 1,900 individual stalls). The first Tesla Superchargers in China were installed in 2014 (compared to 2012 in the case of the US) and in 2016, the company reached the milestone of 100 stations. Currently, with coverage of more than 320 cities, the fast charging network is considered one of the densest and accessible in China. The high number of Superchargers in China closely follows the local sales of Tesla cars, which in recent years, significantly increased. According to the China Passenger Car Association (CPCA)’s data, the company sold in China over 850,000 Made-in-China (MIC) Model 3 and Model Y as of the end of November 2022.” [Inside EVs, 12/28/22 (=)]

 

Tesla Corporate

 

Tesla Makes China Boss Highest-Profile Executive After Musk. According to Reuters, “Tesla Inc’s (TSLA.O) China chief Tom Zhu has been promoted to take direct oversight of the electric carmaker’s U.S. assembly plants as well as sales operations in North America and Europe, according to an internal posting of reporting lines reviewed by Reuters. The Tesla posting showed that Zhu’s title of vice president for Greater China had not changed and that he also retained his responsibilities as Tesla’s most senior executive for sales in the rest of Asia as of Tuesday. The move makes Zhu the highest-profile executive at Tesla after Chief Executive Elon Musk, with direct oversight for deliveries in all of its major markets and operations of its key production hubs. The reporting lines for Zhu would keep Tesla’s vehicle design and development - both areas where Musk has been heavily involved - separate while creating an apparent deputy to Musk on the more near-term challenges of managing global sales and output. Tesla did not immediately respond to a Reuters request for comment. Reuters reviewed the organizational chart that had been posted internally by Tesla and confirmed the change with two people who had seen it. They asked not to be named because they were not authorized to discuss the matter.” [Reuters, 12/28/22 (=)]

 

Exclusive: Tesla’s Head Of China Takes Over Sales In North America. According to Electrek, “Tesla’s head of China, Tom Zhu, has taken over responsibilities for sales, service, and deliveries in North America, according to sources familiar with the matter. Last month, we reported on a rumor that Zhu, president of Tesla China, would replace Musk as CEO of Tesla. We were skeptical of the report as it came from a Chinese outlet that was just found guilty of spreading fake news about Tesla in China and was ordered to compensate the company. However, other reports are starting to add validity to Zhu at least having a greater role at Tesla, albeit not necessarily the role of CEO. We did report that Zhu was tapped to go lead Gigafactory Texas – though it’s unclear if the role is permanent. Over the last few weeks, it was also reported that he has stepped down as the official representative of Tesla’s China corporation, and he is reportedly being groomed for a bigger role in the US. Now Electrek has learned that Zhu has started to take a broader role in the US – starting with responsibilities for sales, deliveries, and service in North America. Officially, Zhu’s official title remains vice president in charge of Asia/Pacific, but sources familiar with the matter told Electrek that he has now been added to the North American sales, service, and delivery organization chart.” [Electrek, 1/2/23 (=)]

 

Tom Zhu To Take Over As CEO For Tesla. According to Electrive, “Tom Zhu appears set to become Tesla’s most influential manager after CEO Elon Musk. In addition to his role as China boss and highest-ranking manager for Tesla’s sales in the rest of Asia, Zhu will be given additional responsibilities in North America and Europe. As stated in a Reuters article, Zhu will now also take over the supervision of the electric car manufacturer’s US assembly plants as well as sales activities in North America and Europe. The news agency refers to an organisational chart published internally by Tesla. Zhu joined Tesla in 2014. He is from China but holds a New Zealand passport. In late 2022, he and some members of his team were already called in to fix production problems in the United States. Zhu reports to the Tesla country managers in China, Japan, Australia and New Zealand – and this will apparently remain the case.” [Electrive, 1/3/23 (=)]

 

The Real-World Effect Of Elon Musk's Online Drama. According to Axios, “Tesla’s future sales could help answer a defining question of the social media age: how much Twitter reflects the real world versus distorting it, Ben writes. The big picture: Elon Musk’s Twitter purchase in October is amplifying his rightward shift. Think support for Ron DeSantis, belittling trans people and more. His politics enrage online progressives, and there’s evidence of people vowing not to buy Teslas. Driving the news: Tesla yesterday reported 405,278 deliveries in Q4, a record that nonetheless fell short of analysts’ expectations. But it’s an incomplete snapshot of buyer sentiment. Musk’s Twitter purchase only closed in late October, and also the numbers partially reflect orders before Q4. The intrigue: It’s hard to know how much the online drama will spill into consumer behavior going forward. It’s a cousin of a question that has roiled Democrats: whether strategists confuse Twitter sentiment with the party’s wider electorate. Threat level: Signs of consumers abandoning Tesla are largely anecdotal, though a mid-November Morning Consult survey found erosion of Tesla’s favorability among Democrats. ‘If the Tesla brand becomes increasingly right-leaning, that could put it out of alignment with core electric vehicle purchasing profiles,’ it notes.” [Axios, 1/3/23 (=)]

 

Musk Tells Tesla Workers Not To Be 'Bothered By Stock Market Craziness'. According to Reuters, “Tesla Inc (TSLA.O) Chief Executive Elon Musk told employees that they should not be ‘bothered by stock market craziness’ after the company’s shares fell nearly 70% this year on jitters over softening demand for electric vehicles and Musk’s distraction with running Twitter. In an email sent to staff on Wednesday and reviewed by Reuters, Musk said he believes that long term, Tesla will be the most valuable company on earth. He also urged employees to ramp up deliveries at the end of this quarter, after the automaker offered discounts on its vehicles in the United States and China. ‘Please go all out for the next few days and volunteer to help deliver if at all possible. It will make a real difference!’ he said in the email. Analysts expect Tesla to deliver 442,452 vehicles in the fourth quarter, according to Refinitiv data. Tesla’s plummeting share price has hurt the value of shares owned by the EV maker’s employees. Tesla has offered stock compensation for most employees including factory workers. The company’s shares rebounded on Wednesday, following an 11% slump in the previous session on a Reuters report that the automaker planned to run a reduced production schedule in January at its Shanghai plant. The news sparked worries of a drop in demand in the world’s biggest car market.” [Reuters, 12/28/22 (=)]

 

Tesla Stock Suffers December Selloff Amid Demand Concerns, China Production Pause. According to The Wall Street Journal, “Tesla Inc.’s stock has endured a bruising December as shares in the car maker that are headed for their worst-ever year have stumbled on new demand concerns and a shutdown at its China factory. Elon Musk’s electric-vehicle maker is cruising toward its worst December stock performance and endured a seven-day losing streak through Tuesday’s close. It was Tesla’s longest losing streak since September 2018 when the company was struggling to get its new Model 3 into customer hands. Tesla gave up almost a third of its value during the recent seven days of losses, trading back at August 2020 levels. Shares recovered somewhat Wednesday, closing 3.3% higher. Despite the company’s delivering consistent earnings and being on-pace for its biggest ever annual profit, Tesla investors have been spooked by a variety of factors, including Mr. Musk’s pursuit of Twitter Inc., which has kept the car maker’s chief executive focused on buying and then turning around the social-media platform.” [The Wall Street Journal, 12/29/22 (=)]

 

Tesla Shares Extend Losses On Demand Worries In China. According to Reuters, “Tesla Inc (TSLA.O) shares fell 11.4% on Tuesday after a Reuters report that Tesla was planning to run a reduced production schedule in January at its Shanghai plant sparked worries of a drop in demand in the world’s biggest car market. The stock, which fell to its lowest in more than two years and had its worst day in eight months, was the biggest drag on the benchmark S&P 500 index (.SPX) and the tech-heavy Nasdaq index (.IXIC). It has lost more than half its value since the start of October as investors worry that Twitter was taking much of Chief Executive Elon Musk’s time while fretting about his stake sale in the electric-car maker. The world’s most valuable automaker’s production cuts at the Shanghai plant come amid a rising number of COVID-19 infections in the country. ‘There’s no question there are demand fears,’ Great Hill Capital Chairman Thomas Hayes said, citing a delivery forecast cut from Chinese rival Nio Inc (9866.HK), in the key market.” [Reuters, 12/28/22 (=)]

 

Tesla To Run Reduced Output In Shanghai In January, Plan Shows. According to Reuters, “Tesla (TSLA.O) plans to run a reduced production schedule at its Shanghai plant in January, extending the reduced output it began this month into next year, according to an internal schedule reviewed by Reuters. Tesla will run production for 17 days in January between Jan. 3 to Jan. 19 and will stop electric vehicle output from Jan. 20 to Jan. 31 for an extended break for Chinese New Year, according to the plan seen by Reuters. Tesla did not specify a reason for the production slowdown in its output plan. It was also not clear whether work would continue outside the assembly lines for the Model 3 and Model Y at the plant during the scheduled downtime. It has not been established practice for Tesla to shut down operations for an extended period for Chinese New Year.” [Reuters, 12/27/22 (=)]

 

In A Bad Year For Stocks, Tesla Plunged 65%. According to The New York Times, “In a down year for stocks, the 65 percent drop in Tesla’s share price stands out for the scale of wealth vaporized and the unorthodox behavior of its chief executive, Elon Musk. The collapse of Tesla’s stock price destroyed about $672 billion in market value. And Mr. Musk, once hailed as a genius who remade the car industry, appears increasingly distracted by his acquisition of Twitter and is using the social network to vent his frustrations. He insulted one of his critics this week by describing him as having ‘tiny testicles.’ The spectacle has stunned investors and analysts. And many are asking what will happen to the stock, the company and Mr. Musk in 2023. The answer largely depends on Mr. Musk and Tesla’s board of directors. Will he return his attention to Tesla and its myriad challenges? Or will he remain camped out at Twitter? Will Mr. Musk sell more Tesla shares to keep Twitter going after spending $44 billion to buy that company, despite promising not to? Will the Cybertruck, Tesla’s first new passenger vehicle in three years, finally be available for sale? And, perhaps most important, will Tesla’s board do anything to rein in Mr. Musk?” [The New York Times, 12/30/22 (=)]

 

Tesla Shares Record Rare Jump This Month On The Way To Worst Year. According to Reuters, “Shares of Tesla Inc (TSLA.O) snapped a seven-session losing streak on Wednesday, in their rare rise this month on the way to what will be the electric-vehicle maker’s worst year on record. The stock gained 3.3% on the day. It is set to round off 2022 with a 68% drop - the most among the big U.S. technology firms - as fears mount over slowing demand in China and top boss Elon Musk’s growing distractions with Twitter. ‘The shorts are piling on and the stock is way oversold here, which could drive a bounce-back rally,’ Wedbush analyst Dan Ives said. The company, whose meteoric rise over the last few years had burned many bearish investors, is the third most shorted stock in dollar value after Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O), according to financial analytics firm S3 Partners.” [Reuters, 12/28/22 (=)]

 

Tesla Stock Has Worst Year Ever, Is Down Almost 70 Percent YTD. According to Inside EVs, “Tesla stock (TSLA) has seen a dramatic drop this year, losing almost 70 percent through December 22 year to date. This means TSLA is on pace for a record annual decline that will see it erase about $626 billion of shareholder value, according to Bloomberg. A year ago, Tesla shares reached a record high, pushing the company’s valuation to more than $1 trillion for the first time. Now investors are struggling to see a bottom, though, with Tesla shares closing at $125.35 on December 22, compared to an all-time high of $409.97 on November 5, 2021—technically $1,229.91 as Tesla performed a 3-for-1 stock split since.” [Inside EVs, 12/23/22 (=)]

 

Tesla Announces A New ‘Investor Day’, Will Discuss New Vehicle Platform. According to Electrek, “Tesla announced today that it will hold a new ‘Investor Day’ on March 1, 2023 where it will discuss a new vehicle platform. Over the last few years, Tesla has started to hold regular events like ‘Battery Day’ and ‘AI Day’ to give updates on some of its most important programs and recruit talent to build them. Now it looks like the automaker is adding one to the list: Investor Day. Tesla wrote about the event in a press release: We plan to host Tesla’s 2023 Investor Day on March 1, 2023. The event will be live streamed from our Gigafactory Texas, with the option for some of our institutional and retail investors to attend in person (details to follow). Our investors will be able to see our most advanced production line as well as discuss long term expansion plans, generation 3 platform, capital allocation and other subjects with our leadership team. At first glance, it might sound like a shareholder meeting, which Tesla holds annually and generally in the summer.” [Electrek, 1/2/23 (=)]

 

South Korea Fines Tesla $2.2 Mln For Exaggerating Driving Range Of EVs. According to Reuters, “South Korea’s antitrust regulator said it would impose a 2.85 billion won ($2.2 million) fine on Tesla Inc (TSLA.O) for failing to tell its customers about the shorter driving range of its electric vehicles (EVs) in low temperatures. The Korea Fair Trade Commission (KFTC) said that Tesla had exaggerated the ‘driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers’ on its official local website since August 2019 until recently. The driving range of the U.S. EV manufacturer’s cars plunge in cold weather by up to 50.5% versus how they are advertised online, the KFTC said in a statement on Tuesday. Tesla could not be immediately reached for comment. On its website, Tesla provides winter driving tips, such as pre-conditioning vehicles with external power sources, and using its updated Energy app to monitor energy consumption, but does not mention the loss of driving range in sub-zero temperatures.” [Reuters, 1/3/23 (=)]

 

Op-Ed: How To Destroy A Brand, Musk Style. According to an op-ed by Paul Krugman in The New York Times, “As I wrote in my last newsletter, the main reason to believe that Tesla’s huge market value doesn’t make sense has little to do with Musk’s antics at Twitter. The problem instead is that Tesla’s dominance of the electric vehicle market is already fading as we speak, so the company is unlikely to generate the kind of extraordinary long-term profits that would justify its stock price. That said, Musk has indeed been acting very oddly — and in ways that seem almost perfectly calculated to drive away his best customers. After all, what does it mean to buy a Tesla? It’s a luxury car, but there are other luxury cars. What’s special about a Tesla is that it’s an electric, zero-emission luxury car — one that purports to be a glitzy ride to a sustainable future. Also, until just the other day, Musk himself was widely seen as a cool guy. And cool in a futuristic sense: His company sends rockets into outer space; he was living with a popular musician who released an album inspired by the science-fiction novel ‘Dune’ (a book that, by the way, was recently made into a terrific movie).” [The New York Times, 12/30/22 (~)]

 

Toyota Motor Corp.

 

Hybrid Or Electric Power: Toyota's Dilemma. According to Inside EVs, “Toyota is the world’s largest automobile manufacturer by production and sales. Thanks to its commitment to quality and the efficiency of its factories around the world, this Japanese manufacturer is known in every single country. It has a strong presence on five continents through manufacturing factories and design centers. Much of Toyota’s popularity is due to its ability to offer the right vehicle in every market. Better than its Japanese, US, and European rivals, Toyota is quite good at creating cars to the tastes of the markets in which it operates. And usually, these are global products. The Corolla, RAV4, Land Cruiser, and Yaris are just four examples of a wide range of cars that cater to all markets. The other part of this explanation stems from hybrid engines. Toyota has been building hybrid cars for over 20 years, selling millions of units in that time. The investment in this powertrain is paying off: the brand is ahead of its rivals in terms of fuel emissions and makes money with these cars.” [Inside EVs, 12/25/22 (=)]

 

Volkswagen Group

 

Volkswagen To Unveil A New Electric Model At CES In January. According to Inside EVs, “Volkswagen confirmed today that a new member of its all-electric family will be introduced at the upcoming 2023 Consumer Electronics Show (CES) in early January. The German manufacturer did not reveal any details, teasers, or even the name of the car yet (it will be announced at the show). The only thing that we know is the debut date, which is January 3, and that it will be a camouflaged version. The brand will have its display at the Las Vegas Convention Center at Tech East in booth CP-5 from January 5th to the 8th. We can guess that Volkswagen intends to show a close-to-production version of the upcoming electric global sedan, which as the Volkswagen ID. Aero concept, was shown in June (see unofficial renderings here). The market launch of the MEB-based sedan is scheduled for the second half of 2023. However, it could be something completely different as well. There is also the station wagon/estate version in the cards (rumored ID.7 Tourer).” [Inside EVs, 12/27/22 (+)]

 

 

Electric Vehicles

 

EV Sales & Transition

 

Which Electric Vehicles Qualify For Federal Tax Credits? According to The New York Times, “The Treasury Department on Thursday published a partial list of new electric and plug-in hybrid cars that will qualify for tax credits of up to $7,500. The list is expected to be updated over the coming days and weeks. The credits will apply to sedans that cost no more than $55,000 and sport utility vehicles and pickup trucks that cost up to $80,000. In addition, only buyers who earn less than $150,000 a year as an individual or $300,000 a year as a couple can claim the credits. The list could change in March, when new rules take effect that require automakers to use battery raw materials and components from North America or a trade ally. Those rules are still being formulated, and it’s not clear exactly when they will start to apply.” [The New York Times, 12/29/22 (+)]

 

Tax Credits For Electric Vehicles Are About To Get Confusing. According to The New York Times, “Next year could be confusing for anyone shopping for an electric car. A law that takes effect on Jan. 1 will both expand and scramble the list of vehicles that qualify for federal tax credits of up to $7,500 in ways that officials and carmakers are still trying to sort out. The Biden administration on Thursday put out a new list of cars that will qualify for the credits. That list, which included models from Ford Motor, Nissan, Rivian, Volkswagen, Stellantis, Tesla and Volvo, is not complete, and the Treasury Department said it would be added to ‘over the coming days and weeks.’ Although they were not included on the list, models from General Motors, which had exceeded a cap on the number of cars that could collect subsidies under an older law, are expected to be eligible again in January because the new law, the Inflation Reduction Act, abolishes the cap. But imported cars that qualified under the old law will no longer be eligible; these include vehicles made by brands like Hyundai and Kia.” [The New York Times, 12/29/22 (=)]

 

Analysis: Changes To EV Tax Credits May Turbocharge Sales In Early 2023. According to Freight Waves, “The market for electric vehicles is on the cusp of one of its biggest tests so far. Federal tax credits for commercial and passenger electric vehicles will take effect Jan. 1, which the bulk of buyers and probably every manufacturer has known for months. What they may not have seen coming was the White House’s sudden alteration to the provisions just weeks before they were set to be implemented. The U.S. Treasury Department on Dec. 19 announced that the rule’s critical minerals and battery component requirement, which makes up half of the $7,500 credit for new passenger EVs, won’t take effect until March. That could open the floodgates for EV sales, and here’s why. The Inflation Reduction Act, enacted by Congress and signed into law by President Joe Biden in August, sets out three different tax credits for EV buyers: $7,500 for new passenger vehicles, $4,000 for used ones and $40,000 for commercial vehicles if the buyer is considered a business owner. The credits are part of a protracted push from federal and state policymakers looking to make EVs more affordable, and therefore more prevalent. The White House is targeting a deadline of 2030 for half of all new vehicle sales to be electric, with several states adopting similar goals.” [Freight Waves, 12/28/22 (=)]

 

AP | 2023 Tax Credits For EVs Will Boost Their Appeal. According to The Detroit News, “Starting Jan. 1, many Americans will qualify for a tax credit of up to $7,500 for buying an electric vehicle. The credit, part of changes enacted in the Inflation Reduction Act, is designed to spur EV sales and reduce greenhouse emissions. But a complex web of requirements, including where vehicles and batteries must be manufactured to qualify, is casting doubt on whether anyone can receive the full $7,500 credit next year. For at least the first two months of 2023, though, a delay in the Treasury Department’s rules for the new benefit will likely make the full credit temporarily available to consumers who meet certain income and price limits. The new law also provides a smaller credit for people who buy a used EV. An electric vehicle charges at an EVgo fast charging station in Detroit, Wednesday, Nov. 16, 2022. Certain EV brands that were eligible for a separate tax credit that began in 2010 and that will end this year may not be eligible for the new credit. Several EV models made by Kia, Hyundai and Audi, for example, won’t qualify at all because they are manufactured outside North America. The new tax credit, which lasts until 2032, is intended to make zero-emission vehicles affordable to more people. Here is a closer look at it:” [The Detroit News, 12/26/22 (+)]

 

2023 Will Be The Year Of The Electric SUV. According to Bloomberg, “In the evolution of the electric vehicle, 2022 will be remembered for its megafauna: Massive electric trucks finally roamed the land, with equally outsized prices. Next year, however, should bring some subspecies — a diaspora of SUVs, including some slightly smaller options and, rarer still, a precious few with more modest window stickers. If you are in the market for a car, here are four prognostications to keep in mind. Somewhere around 20 all-new electric vehicle models are expected to launch in the US over the next 12 months, roughly the same amount as debuted this year. Critically, however, many of them are aimed at a sweet spot in the American market, which is to say good for carrying cargo and families, and not extremely expensive. Days ago, Nissan’s long-awaited Ariya finally rolled into dealerships with a starting price of $43,190. A few months from now, Chevrolet says it will add its Blazer EV at just shy of $45,000, followed by the smaller, cheaper Equinox EV in the fall. Kia’s EV9, a bonafide three-row, will probably land in somewhat affordable territory as well, if it tracks its smaller sibling, the EV6. And on the startup front, VinFast, a Vietnamese manufacturer, will debut with its VF 8, a small SUV priced at $40,700 (though the battery is packaged in a monthly subscription plan).” [Bloomberg, 12/31/22 (+)]

 

Time To Adopt A New Approach To EV Marketing. According to Automotive world, “At first glance, it appears that adoption of electric vehicles (EVs) in the US is going according to plan. Data from Axios shows that 4.6% of new vehicles registered in the US during May 2022 were electric, compared to just 1.9% during May 2021. Bloomberg’s July report detailing how the US crossed a major tipping point of 5% of all vehicles sold consisting of EVs caused quite a stir, with the report indicating that the country should hit 25% adoption by 2025. That level of optimism is welcome news for auto brands dedicating millions of dollars in R&D and marketing toward rolling out dozens of EV models over the next few years. This optimism doesn’t come without a few reasons for pause, however. The Bloomberg analysis established trends based on 18 countries that hit the 5% adoption rate prior to the US, all of them located in Europe aside from China, South Korea, New Zealand and Iceland. Given the relative homogeneity of Europe in terms of demographics, income, and EV infrastructure compared to the US, where a single state holds nearly 40% of all EV registrations, the gap that must be overcome in the US becomes evident. Thus far, the available market for EVs represents just a small portion of the population, those that can afford an average price of more than US$66,000.” [Automotive world, 12/28/22 (=)]

 

Op-Ed: Americans Are Realizing Tesla Isn’t The Only Electric Car. According to an op-ed by Farhad Manjoo in The New York Times, “Not long ago, Tesla’s electric vehicles were far and away the best on the market. If you wanted a stylish, long-range, easy-to-charge and feature-packed E.V., Elon Musk would be your most likely supplier — even if you hated his guts. But not anymore. In the past year I test drove many fantastic new E.V.s that hit the market in 2021 and 2022 — cheap ones, expensive ones, big ones, small ones, strange ones, boring ones. Ford’s F-150 Lightning, the electric version of the longtime best-selling vehicle in America, and its Mustang were terrific inside and out, nicely designed, roomy and fun to drive. The Kia EV-6’s striking, futuristic exterior had strangers stopping me to ask what cool ride I was driving. There are also great models by Chevy, Mercedes and Rivian. Although I liked the Teslas I drove (the uber-expensive Model S Plaid, which can go from 0 to 60 m.p.h. in about two seconds, was terrific fun), the truth is that many of the best electric wheels on the market today are not made by Musk.” [The New York Times, 12/23/22 (+)]

 

EV Infrastructure

 

Will Electric Vehicles Crash The Grid? According to Inside EVs, “There’s little doubt that the automobile industry is beginning the greatest transformation it has ever seen. The internal combustion engine, the heart of the automobile for over 100 years, is being phased out in favor of battery electric powered vehicles. Industry experts know that it’s no longer a question of will electric vehicles take over, the only question remaining is how quickly will it happen. If electric vehicle adoption accelerates faster than many have predicted, can the power grid handle the additional load needed to ‘fuel’ tens of millions of EVs? There’s been a lot of debate on this subject, with, not surprisingly, those opposed to EVs predicting doomsday scenarios including power outages, increased electricity rates, and frequent calls from utilities asking customers to stop charging their cars. There have also been articles written that indicate the grid will be able to handle the increased power demand needed to fuel a fully electric transportation fleet. Some even explain how electric vehicles will actually help grid stability, not cause problems.” [Inside EVs, 1/1/23 (+)]

 

EV Resources & Technology

 

Shift To EVs Triggers Biggest Auto-Factory Building Boom In Decades. According to The Wall Street Journal, “The U.S. auto industry is entering one of its biggest factory-building booms in years, a surge of spending largely driven by the shift to electric vehicles and new federal subsidies aimed at boosting U.S. battery manufacturing. Through November, about $33 billion in new auto-factory investment has been pledged in the U.S., including money for the construction of new assembly plants and battery-making facilities, according to the Center for Automotive Research, a nonprofit organization based in Michigan. The 11-month total adds to the $37 billion in new auto-factory spending committed in 2021, when a number of new projects were revealed in states such as Tennessee, Kentucky and Michigan. The annual figure is up from $9 billion in 2017 and a more than eightfold increase from two decades ago, the center found. About two-thirds of the new auto investment revealed over the past two years is going to sites in the U.S. South, the data shows, tilting activity farther away from the Great Lakes region, the auto industry’s stronghold for a century.” [The Wall Street Journal, 1/1/23 (+)]

 

NDAA Seeks To Speed FUDs Cleanups, Creates EV Battery Recycling Program. According to InsideEPA, “In addition to the [formerly used defense sites (FUD)] cleanup requirements, the bill also incorporates bipartisan legislation requiring federal agencies to develop a strategic plan for recycling batteries from the growing fleet of federally owned EVs, a measure its sponsors say is intended to help the Biden administration meet its goals of boosting recycling of batteries as a way to address the limited supply of critical minerals, such as lithium, needed to produce batteries. The legislation, originally sponsored in the Senate by Sens. Mitt Romney (R-UT) and Gary Peters (D-MI), requires the General Services Administration (GSA) to coordinate with the Office of Management and Budget (OMB) to create a strategic plan for federal EV battery management, with EPA and other agencies acting in consultation, within two years of its becoming law. It further requires the agencies’ strategic plan to maximize both cost and environmental efficiencies, incorporate guidelines for optimal charging practices to maximize battery longevity, and establish guidelines for reusing and recycling batteries of retired vehicles. Additionally, it requires a study of federal fleet vehicles, in which the federal Comptroller General, within two years of enactment, would provide a report to Congress on how the costs and benefits of operating and maintaining EVs in the federal fleet compares to costs and benefits of operating and maintaining internal combustion vehicles.” [InsideEPA, 12/27/22 (=)]

 

Lithium Miner Sees 25% Price Drop In Boon For EV Industry. According to Bloomberg, “Lithium’s going to get less expensive in 2023, according to a Chinese supplier of the battery metal, potentially offering some relief to electric-vehicle makers squeezed by soaring costs. Prices have already softened after a spectacular two-year rally labeled ‘insane’ by Elon Musk and ‘unreasonable’ by China’s BYD Co. The cool-off is poised to continue as more supply emerges to trim abnormally high margins for lithium producers, Wang Pingwei, chairman of Sinomine Resource Group Co. said in an interview on Tuesday. ‘We believe the gradual, downward trend for lithium will continue next year,’ Wang said, predicting a drop of around a quarter from current levels that will still leave the company with ‘good’ profits. Prices won’t fall off a cliff as the market remains tight, said Wang, whose company operates mines in Zimbabwe and Canada. Lithium’s relentless rise since 2020 has hurt buyers and contributed to the first annual increase in battery costs since BloombergNEF started tracking them nearly a decade ago. Benchmark prices in China are still about twice as high as the start of 2022 — despite declining this month — as demand from the fast-expanding EV sector outstrips supply.” [Bloomberg, 12/28/22 (=)]

 

EV Service And Repair: The Next Frontier To Overcome. According to Automotive world, “Market growth for electric vehicles (EVs) continues to accelerate as companies improve battery technology and public recharging infrastructure and overcome barriers to purchase, such as high prices. Surging EV sales are testimony to this fact. During H1 2022, sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) stood at 4.3 million, up 62% against H1 2021. For the full year 2022, the number of BEVs is expected to reach 8 million, while PHEVs will reach 2.6 million, according to the EV-Volumes report. The growing adoption of EVs has gradually dispelled consumers’ concerns about their range, price, and reliability. Many consumers, however, are unaware of post-purchase service scenarios, especially those related to batteries. The battery is the most expensive part of an EV. Its failure, or gradual decay, can make repairing a working EV with many potential years of life uneconomical. Though battery failures would be rare, lost capacity, consequently leading to range drop, is the most likely possible event foreseen in the battery repair/service ecosystem. OEMs are offering protracted battery warranties (typically eight years or 160,000 kms) to assuage consumers’ concerns. Below are some battery warranty offerings by prominent OEMs.” [Automotive world, 1/2/23 (=)]

 

 

States & Local

 

California

 

Groups Elevate Clash Over Possible Sweeping Changes To CARB’s LCFS. According to InsideEPA, “Clashes are intensifying among a variety of groups regarding potential sweeping changes to California’s low-carbon fuel standard (LCFS), with key flashpoints around the possible phaseout of biomethane and crop-based fuels, the stringency of new carbon intensity (CI)-reduction targets, and how to credit various biofuels and clean electricity. ‘[W]e are concerned about scenarios that phase out avoided methane crediting or disincentivizes the use of non-fossil derived biomethane from the LCFS program,’ state Dec. 19 comments by the California Association of Sanitation Agencies to California Air Resources Board (CARB) staff, which last month held a workshop to present new modeling data, scenarios and alternatives for the landmark program. ‘We strongly urge CARB to maintain the use of our biogas as a viable LCFS fuel in perpetuity since it will always be produced, and its beneficial use should be promoted,’ adds the waste agency group, which expects to produce much more biomethane, also known as renewable natural gas (RNG), from the required collection of organic waste from homes and businesses. But some environmental groups are pressing CARB to phase out LCFS credits for RNG generated from methane dairy digesters much faster than two alternatives proposed by staff last month. ‘We believe that neither of these options adequately addresses the pressing current dilemma created by the valuable credits assigned to biomethane from anaerobic digesters by the current LCFS program,’ argue Dec. 14 comments from three environmental groups, which criticize the process as perpetuating air and water pollution from larger ‘farm factories.’” [InsideEPA, 12/22/22 (=)]

 

SDGE’s Fleet On Its Way To Achieving Zero Emissions. According to Fleet Owner, “To advance its own and California’s goals to reach net-zero emissions by 2045, San Diego Gas & Electric (SDGE) has electrified more than 20% of its over-the-road fleet and is on track to reach 100% electrification of its passenger cars, pickup trucks, and sport utility vehicles by 2030, the company recently announced. In a press release, SDGE stated this puts the company ‘well on its way to achieve its goal of operating a fully zero-emissions fleet by 2035, ahead of state mandates.’ The latest additions to SDGE’s fleet include eight fully electric, Ford F-150 Lightning trucks and a zero-emissions hydrogen fuel cell car. SDGE’s fleet also consists of plug-in and non-plug-in hybrids and vehicles with idle mitigation technologies. ‘Our service trucks are out in our community daily, doing everything from routine appliance checks to equipment repairs, to keep energy flowing safely and reliably to our customers,’ Jennifer Jett, SDGE’s VP of operations support, said. ‘Our goal is for our fleet vehicles to leave no trace of pollution behind.’ SDGE is decarbonizing its fleet because transportation accounts for about 40% of California’s greenhouse gas emissions, making it the state’s single largest source of pollution. Additionally, transportation-related emissions heavily impact low-income communities located near busy roadways and industrial facilities.” [Fleet Owner, 12/27/22 (+)]

 

Maryland

 

Maryland General Assembly To Consider Ways To Entice You — And Your Neighbor — To Buy Electric Cars. According to WYPR-Radio, “If you’ve been thinking about buying an electric car but have been holding off because of the high cost, state officials are hoping they can entice you to take the plunge. A lot of Marylanders need to go electric for the state to have any chance of meeting emissions goals the Maryland General Assembly passed last year. The Climate Solutions Now Act calls for the state to reduce greenhouse gasses by 60% before the end of the decade, by 2031. In order to do that, Michael Powell, who serves on the Maryland Commission on Climate Change, said we have to do something about cars and trucks spewing carbon dioxide. Powell said transportation by far accounts for the largest source of greenhouse gasses in Maryland. ‘If you don’t deal with transportation, you might as well fold your tent and go home,’ Powell said. ‘It is the big guerilla in the room that we have to deal with. The greenhouse gasses from transportation are nearly twice that from all the power plants in Maryland and the power plants that we import power from outside of Maryland.’ The climate change commission makes recommendations to the state on how it can meet its goals. There are more than 5.2 million registered vehicles in the state, according to the Maryland Department of Transportation. About 60,000 of those are hybrid or electric cars. That’s just over 1%. The state has a goal of 300,000 zero emission vehicles on the road by 2025.” [WYPR-Radio, 1/3/23 (+)]

 

Minnesota

 

MN Electric Vehicle-Share Program Finds Success After False Start. According to Public News Service, “A pioneering electric-vehicle car-sharing service in the Twin Cities saw steady growth during the first half of 2022, exceeding the expectations of backers during the program’s first six months following a relaunch. Evie Community Carshare claimed to be the nation’s first all-electric, renewably powered car-share service when it launched last year. It now has over 100 vehicles serving a 35-square-mile area of Minneapolis and St. Paul chosen for its high concentrations of poverty and pollution. ‘It’s been a hit,’ said James Vierling, head of growth, marketing and communications for HourCar, which operates Evie. ‘We’ve been growing a lot faster than we thought we would.’ The service logged nearly 25,000 trips totaling almost a quarter million miles between February and July, reducing an estimated 741 metric tons of greenhouse gas emissions. It also helped members save an estimated $2.6 million on transportation, including about $850,000 for very low-income households. ‘It’s going wonderfully,’ said Will Schroeer, executive director of East Metro Strong. ‘We’re exceeding our projections and we’ve seen new record use each month since our launch. Trips and membership continue to increase every month and that’s what you want to see.’” [Public News Service, 12/26/22 (+)]

 

North Carolina

 

The Environmental Impacts Of The Vinfast Electric Car Factory In Chatham County. According to NC Policy Watch, “With stands of loblolly pine, rivers, creeks and expanses of farm fields, southeastern Chatham County feels like the country. But this neck of the woods is home to many polluting industries: Arauco, a wood products company with a history of air quality violations; the Shearon Harris nuclear plant; the former Brickhaven mine, where 7.3 million tons of coal ash is buried in lined cells; Duke Energy’s now-defunct Cape Fear coal-fired power plant and an associated STAR facility, which burns the old fly ash for use in cement. Now a mega-project east of Moncure and near the Chatham-Wake County line would fill in wetlands and streams — in an area already prone to water pollution. VinFast, an electric car manufacturer, plans to build a factory on 1,300 acres of forested land, currently used for timbering, near Old US Highway 1 and Corinth Road. It is expected to create 1,700 jobs and generate millions of dollars in tax revenue to the area. ‘The VinFast project is an enormous site in Chatham County, with a mission to increase electric vehicles and reduce carbon emissions,’ Haw Riverkeeper Emily Sutton said. ‘But this company that has touted an environmental conscience has submitted a proposal that would destroy thousands of feet of streams, cross the Haw River, and permanently fill dozens of acres of wetlands.’” [NC Policy Watch, 1/2/23 (=)]

 

Pennsylvania

 

All New Cars And Trucks In New York Will Be Zero-Emission By 2035. According to Albany Times Union, “All new passenger cars and trucks sold in New York will be zero-emission vehicles by 2035, the state Department of Environmental Conservation said. New York is the latest state to adopt the Advanced Clean Car II regulations, a move legislators say will reduce greenhouse gas emissions and provide significant air quality and health benefits statewide, especially in low-income communities burdened by transportation-related pollution. The state will invest more than $1 billion in zero-emission vehicles of all weight classes over the next five years to meet the goal of 100 percent of vehicle sales being all-electric by 2035. The plan is to increase the percentage of light-duty vehicle sales to be zero-emission each year, starting with 35 percent in 2026. In addition to reducing ozone and related health concerns for disadvantaged communities near transit routes with heavy traffic, the plan intends to promote sustainability and renewable energy. The regulations include revised pollutant standards for passenger cars, light-duty trucks and medium-duty vehicles with internal combustion engines made between 2026 through 2034, a timeline meant to offer flexibility for manufacturers. Adoption of Advanced Clean Cars II, which has been in the works since the enactment of the Climate Plan in 2019, will support the state in achieving its goal of reducing greenhouse gas emissions by 85 percent by 2050 from 1990 levels as required by the Climate Act.” [Albany Times Union, 12/31/22 (+)]

 

 

International

 

China

 

Plug-In Car Sales Increased By 50% In November 2022. According to Inside EVs, “The overall car sales in China decreased in November, but the plug-in electric car market does not stop growing, not even for a while. According to EV Volumes’ data, shared by Jose Pontes, some 625,205 new passenger plug-in electric cars were registered in China in November, which is 50 percent more than a year ago and the second-best result ever (after 636,223 units in September). Plug-in car share out of the total market improved to 35 percent and there is a big chance that it will move towards 40 percent in 2023. Both all-electric and plug-in hybrid car sales improved quite noticeably. PHEVs were up 88 percent year-over-year, setting their seventh monthly record in a row. Nonetheless, the BEV segment is still much bigger than the PHEV one. Results for the month: BEVs: about 453,000 (up 40%) and 25% share PHEVs: about 172,000 (up 88%) and 10% share Total: 625,205 (up 50%) and 35% share” [Inside EVs, 1/2/23 (=)]

 

Italy

 

Italy’s Meloni Says 2035 Combustion-Engine Ban ‘Not Reasonable’. According to Bloomberg, “The European 2035 ban on combustion engines doesn’t make sense for Italy and is harmful to the country’s business, Prime Minister Giorgia Meloni said Thursday. ‘That’s not reasonable, and I think there’s also a certain alignment by other European countries on our position,’ Meloni said in a conference with reporters. Carmaker Stellantis NV, formerly Fiat SpA, is among Italy’s largest manufacturers. Italy Says EU’s 2035 Ban on Combustion Engines Makes No Sense Earlier this year the European Union reached a landmark deal to effectively ban new combustion-engine cars from 2035, which would reshape transportation and mark a significant step on the path to reduce carbon emissions. In November, EU Internal Market Commissioner Thierry Breton said Europe’s push for its auto industry to go all-electric poses risks to employment and vehicle affordability, urging manufacturers to keep making combustion cars.” [Bloomberg, 12/29/22 (=)]

 

Norway

 

Norway Hits New Record With 32,714 BEVs Registered In December. According to Electrive, “In Norway, 32,714 new electric cars were registered in December, compared to 138,292 for the whole of 2022, giving fully electric cars a new registration share of 82.8 per cent in December. The most successful model in Norway in 2022 was the Tesla Model Y. It was already apparent in November that there would be a new BEV record for the year: With the cumulative 105,573 pure electric cars to date, EV registrations were already very close to the figure for the whole of 2021 after eleven months – at that time 113,751 battery-electric cars were newly registered within twelve months. The fact that it became such a clear record in Norway with 138,292 new electric cars in the full year was due to the strong December: with 32,714 new electric cars, the end of the year was by far the strongest month in 2022. Compared to the full year 2021, the growth amounts to 21.6 per cent. From December 2021 (13,803 new e-car registrations) to December 2022, growth was a whopping 137 per cent.” [Electrive, 1/3/23 (=)]

 

Tesla In Pole Position In Norway's Race To EV Goal. According to Reuters, “Four out of five new cars sold in Norway in 2022 were battery powered, led by Tesla, but some in the industry say new taxes could thwart the country’s goal of becoming the first to end the sale of petrol and diesel automobiles by 2025. Elon Musk’s electric-only Tesla Inc. (TSLA.O) sold more cars in Norway than any other brand for a second consecutive year, clinching a 12.2% share of the overall market ahead of Volkswagen (VOWG_p.DE) with 11.6%, registration data showed. While China is by far the biggest car market overall, Norway with its 5.5 million inhabitants, has achieved the world’s highest proportion of electric vehicles with the help of generous subsidies, making it a proving ground for auto makers launching models. The share of battery electric vehicles (BEV) sold rose to 79.3% of all new cars in 2022 from 65% in 2021, up from 2.9% a decade ago, the Norwegian Road Federation (OFV) said.” [Reuters, 1/2/23 (=)]

 

 

Research & Analysis

 

Electric Vehicles: What To Watch For In 2023. According to E&E News, “Over the past two years, the Biden administration and Congress have teed up billions in spending to help the country transition to electric vehicles, including for tax credits and charging infrastructure. Significant developments are expected in the new year. Here’s what we’ll be watching in 2023. New tax incentives begin: The Inflation Reduction Act eliminated the current cap for EV tax credits of 200,000 vehicles per manufacturer, clearing the way for vehicles from industry leaders like Tesla and GM to again be eligible. The new law also imposes income caps to qualify, as well as caps on the cost of a vehicle. And, for the first time, used EVs will be eligible for a tax credit, though smaller than what’s available for new cars. A new $40,000 credit for commercial clean vehicles will also be available, without the same sourcing and income requirements as consumer credits. Sourcing requirements ramp up: Starting in 2023, 40 percent of critical minerals in an EV battery, by value, will need to be mined or processed in the United States or a country with which the U.S. has a free trade agreement, or recycled in North America, in order for a vehicle to be eligible for half of the $7,500tax credit. To qualify for the other half, 50 percent of battery components, by value, must be made or assembled in North America. The ‘foreign entities of concern’ rule, which will essentially eliminate the ability to source battery minerals from China, takes effect in 2024 for battery components and 2025 for critical minerals.” [E&E News, 12/28/22 (=)]

 

 

 

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