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Tesla owners in China protest against surprise price cuts they missed | CNN Business

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Shanghai
Reuters
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Hundreds of Tesla owners gathered at the automaker’s showrooms and distribution centers in China over the weekend, demanding rebates and credit after sudden price cuts, which they said meant they had overpaid for electric cars they bought earlier.

On Saturday, about 200 recent buyers of the Tesla Model Y and Model 3 gathered at a Tesla delivery center in Shanghai to protest against the US carmaker’s decision to slash prices for the second time in three months on Friday.

Many said they had believed that prices Tesla charged for its cars late last year would not be cut as abruptly or as deeply as the automaker just announced in a move to spur sales and support production at its Shanghai plant. The scheduled expiration of a government subsidy at the end of 2022 also drove many to finalize their purchases.

Videos posted on social media showed crowds at Tesla stores and delivery centers in other Chinese cities from Chengdu to Shenzhen, suggesting wider consumer backlash.

After Friday’s surprise discounts, Tesla’s EV prices in China are now between 13% and 24% below their September levels.

Analysts have said Tesla’s move was likely to boost its sales, which tumbled in December, and force other EV makers to cut prices too at a time of faltering demand in the world’s largest market for battery-powered cars.

While established automakers often discount to manage inventory and keep factories running when demand weakens, Tesla operates without dealerships and transparent pricing has been part of its brand image.

“It may be a normal business practice but this is not how a responsible enterprise should behave,” said one Tesla owner protesting at the company’s delivery center in Shanghai’s Minhang suburb on Saturday who gave his surname as Zhang.

He and the other Tesla owners, who said they had taken delivery in the final months of 2022, said they were frustrated with the abruptness of Friday’s price cut and Tesla’s lack of an explanation to recent buyers.

Zhang said police facilitated a meeting between Tesla staff and the assembled owners at which the owners handed over a list of demands, including an apology and compensation or other credits. He added the Tesla staff had agreed to respond by Tuesday.

About a dozen police officers could be seen at the Shanghai protest and most of the videos of the other demonstrations also showed a large police presence at the Tesla sites.

Protests are not a rare occurrence in China, which has over the years seen people come out in large numbers over issues such as financial or property scams, but authorities have been on higher alert after widespread protests in Chinese cities and top universities at the end of November against Covid-19 restrictions.

Other videos appearing to be of Tesla owners protesting were also posted to Chinese social media platforms on Saturday.

One video, which Reuters verified was filmed at a Tesla store in the southwestern city of Chengdu, showed a crowd chanting, “Return the money, refund our cars.”

Another, which appeared to be filmed in Beijing, showed police cars arriving to disperse crowds outside a Tesla store.

Reuters was unable to verify the content of either video.

Tesla does not plan to compensate buyers who took delivery before the most recent price cut, a spokesman for Tesla China told Reuters on Saturday.

He did not respond when asked to comment on the protests.

China accounted for about a third of Tesla’s global sales in 2021 and its Shanghai factory, which employs about 20,000 workers, is its single most productive and profitable plant.

Analysts have been positive about the potential for Tesla’s price cuts to drive sales growth at a time when it is a year from announcing its next new vehicle, the Cybertruck.

“Nowhere else in the world is Tesla faced with the kind of competitors that they have here [in China],” said Bill Russo, head of consultancy Automobility Ltd in Shanghai.

“They are in a much bigger EV market with companies that can price more aggressively than they can, until now.”

In 2021, Tesla faced a public relations storm after an unhappy customer climbed on a car at the Shanghai auto show to protest against the company’s handling of her complaints about her car’s brakes.

Tesla responded by apologizing to Chinese consumers for not addressing the complaints in a timely way.

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January 8, 2023
Sony and Honda reveal their new car brand | CNN Business

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CNN
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Sony and Honda, which announced a joint venture last year to develop and build electric cars, have revealed the name of their new car brand. It will be called Afeela.

At a presentation during the Consumer Electronics Show, Sony Honda Mobility chief executive Yasuhide Mizuno revealed a prototype of the company’s first car, which looked like a mid-sized sedan, but he revealed little detail about it. The car will be available to order and even purchase in 2025, he said, but the first deliveries of the car would not take place in North America until 2026, he said. The car will be built at one of Honda’s factories.

“At the heart of this mobility experience is the word ‘feel,’” Mizuno said, explaining that focus will be on sensing and interacting with people.

The car will have safety and driver assistance systems from Honda along with entertainment and interactive features from Sony, Mizuno said. When developing the car, the emphasis has been on software and user interface technology as much as on driving dynamics and performance, he said.

Running above the car’s front bumper is a narrow exterior display screen the company calls the media bar. It will allow the vehicle to show information and interact with people outside the vehicle, Mizuno said.

Inside, the company is working with Unreal Engine graphics technology from Epic Games, the company that produces Fortnite, to design interfaces for the vehicle. Unreal Engine’s technology has also been used by other auto brands including General Motors, which used the technology in the Hummer EV. The car will come with a wealth of entertainment options, he said.

Mizuno also boasted of the 45 cameras and sensors inside and outside the vehicle, some of which are used to detect the condition of the driver to help ensure alertness and safety.

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January 5, 2023
A $3,300 self-driving stroller is at this year’s CES. Are parents ready? | CNN Business

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New York
CNN
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Hang onto your baby bonnets: Self-driving technology is coming to strollers.

Canadian-based baby gear startup Gluxkind was showing off its Ella AI Powered Smart Stroller at this year’s CES, the consumer electronics show in Las Vegas that offers some of the most cutting edge – and out-there – new technologies.

The smart stroller offers much of the same tech seen in autonomous cars and delivery robots, including a dual-motor system for uphill walks and automatic downhill brake assist. Like a Tesla with “Autopilot,” the Gluxkind’s stroller’s onboard technolgy has sensors that detect objects around it – but it’s meant to serve as an “extra pairs of eyes and an extra set of hands,” according to the company’s website – not a replacement for a caregiver.

The Ella stroller is able to drive itself for hands-free strolling – but only when a child is not inside. It uses cameras to monitor surroundings and navigate the sidewalks.

For parents who are probably and understandably nervous about putting their baby in a stroller with a mind of its own, Gluxkind provided a YouTube video with some use cases. A parent walking a stroller down hill rushes to save a child’s dropped toy that is rolling away. The stroller brakes on its own.

In another demo, a child is tired of sitting in the stroller and wants to be carried. The Ella strolls itself while the parent carries the child.

Still self-driving technology isn’t totally proven and certainly not ready for prime time. Although companies that have implemented the technology in cars say they add an element of safety when used properly and the driver is paying attention, putting children in the care of AI may not be for everyone.

Gluxkind, founded in 2020, also put additional stroller-specific features into the Ella including “Automatic Rock-My-Baby” and a built-in white noise machine to soothe sleeping toddlers. The entire system is outfitted with a car seat, infant bassinet and toddler seat.

“The development has been driven by our own experience as new parents.,” Anne Hunger, Gluxkind CPO and co-founder, wrote in a November press release. “We’ve put a lot of hard work into this product and are excited to get it into more customers’ hands in 2023.”

For $3,300, parents can join the pre-order list for the 30-pound Ella, one of the consumer tech products named as an Innovation Awards Honoree at the 2023 CES show. Deliveries of the stroller are expected to begin in April 2023, according to the company website.

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January 4, 2023
From increases in minimum wage to recreational marijuana, these new laws take effect in 2023 | CNN Politics

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CNN
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As President Joe Biden scored several legislative wins last year, voters across the country headed to the polls in November to decide on local measures.

The passage of several of those measures will lead to new state laws this year. And Americans in 2023 will also feel the impact of several provisions in the Inflation Reduction Act that was enacted over the summer.

Here are some of the state and federal measures set to take effect in 2023.

Nearly half of all US states will increase their minimum wages in 2023.

The hike went into effect in the following states on January 1: Arizona, California, Colorado, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, Ohio, Rhode Island, South Dakota, Vermont and Washington.

Minimum-wage workers in Connecticut will have to wait until June 1 to see the increase, while the change goes into effect in Nevada and Florida on July 1 and September 30, respectively. The hike went into effect in New York on Saturday for workers outside New York City, Long Island and Westchester County.

Of all states, Washington state has the highest minimum wage at $15.74, up from $14.49, followed by California, which now has a minimum wage of $15.50 for all workers, up from $14 for employers with 25 or less employees and $15 for employers with 26 or more employees.

However, Washington, DC, continues to have the highest minimum wage in the country. The increase from $16.10 to $16.50 went into effect Sunday and another hike to $17 is set for July 1.

The push for a higher wage across the country comes as the federal minimum wage has remained the same since 2009, the longest period without change since a minimum wage was established in 1938, according to the Department of Labor.

Efforts by Democrats to pass a $15 minimum wage bill stalled in the Senate in 2021.

Jeenah Moon/Bloomberg/Getty Images

Five states – Arkansas, Maryland, Missouri, North Dakota and South Dakota – had recreational marijuana on the ballot in the November midterm elections, and voters in Maryland and Missouri approved personal use for those 21 and older.

While legalization has taken effect in Missouri with an amendment to the state constitution, the Maryland law goes into effect on July 1.

The law will also allow those previously convicted of cannabis possession and intent to distribute to apply for record expungement.

Starting January 1, the amount of cannabis a person can possess in Maryland for a fine instead of a criminal penalty increases – from just over a third of an ounce, or 10 grams, to 2.5 ounces.

One of the most significant victories for Biden in 2022 was the Inflation Reduction Act, a $750 billion health care, tax and climate bill, which he signed into law in August.

As part of the legislation, the price of insulin for Medicare beneficiaries will be capped at $35 starting January 1.

About 3.3 million Medicare beneficiaries used insulin in 2020 and spent an average of $54 per insulin prescription the same year, according to the Kaiser Family Foundation.

The cap does not apply to those with private insurance coverage after Senate Democrats failed to get at least 10 Republican votes to pass the broader provision.

Keith Srakocic/AP

There will be changes to the tax credits for those with electric vehicles, also thanks to the Inflation Reduction Act.

The new rule stresses the use of vehicles that were made in North America, requiring much of their battery components and final assembly to be in the continent to be eligible for tax credits. It also mandates at least 40% of the minerals used for the battery to be extracted from the United States or a country that has free trade with the US.

Upon meeting the requirements, new vehicles are eligible for a tax credit of up to $7,500.

Those purchasing used electric vehicles can receive up to $4,000 in credits but it may not exceed 30% of the vehicle’s sale price.

Initially, buyers who purchase vehicles in 2023 will need to wait to receive the tax credit when they file their tax returns for the year in 2024. But starting on January 1, 2024, electric vehicle buyers will be able to receive the money immediately, at the point of sale, if they agree to transfer the credit to their dealership.

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January 1, 2023
Tax credit confusion could create a rush for electric vehicles in early 2023 | CNN Business

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CNN
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As the new year begins, a number of popular electric vehicles, specifically some Tesla and General Motors models, could be eligible for $7,500 worth of tax credits they weren’t eligible for in 2022. But that eligibility may last only last a few months.

That’s because limitations on new tax credits enacted in August as part of the Inflation Reduction Act won’t be put into force all at once, the Treasury Department announced this week. That means the rules will, temporarily, be more generous, allowing higher tax credits on more electric vehicles, for the first few months of the new year.

The US Treasury Department, which is implementing the rules, recently announced that rules for some of the new restrictions on the tax credits – including around where the vehicle’s battery pack is assembled and where the minerals used in it came from – were being postponed until at least March of 2023, when it announces proposed rules around that part of the requirements. According to language in the legislation, though, just the publication of the “proposed guidance” around these rules, which Treasury said would happen in March, will immediately trigger the reductions in tax credits. But some of the new rules are taking effect as originally scheduled in January. That leaves a roughly a three-month window in which some vehicles could be eligible for much higher tax credits than they will be eligible for later on.

General Motors, for example, has already said that once the full restrictions come into force – whenever that happens – its electric vehicles will only quality for a $3,750 tax deduction. It’s expected to be two or three years before GM vehicles can, once again, qualify for the full $7,500 tax credit, the company has said.

While that could create a buying opportunity in the first months of the year, the downside is that it just adds to confusion around what is already a baffling set of rules – even by tax regulation standards.

“I was kind of hoping for more clarity, not less,” said Chris Harto, a senior policy analyst with Consumer Reports. “It seems like things just seem to get more confusing each time they say something.”

Essentially, the tax rules are designed to incentivize automakers to make their electric vehicles and all the parts of those vehicles, as much as possible, in the United States, or in countries with which the US has trade agreements. They’re also designed so tax credits don’t go to wealthy Americans buying expensive luxury vehicles. The latest announcement, which will temporarily open up more tax credit money, is likely mostly a good thing for consumers.

The lopsided tax credit at the start of the year is just one of several potential sources of confusion.

Under the new EV tax credit rules, the Chevrolet Bolt EV and EUV are eligible for tax credits in the new year. They had previously been ineligible because, even though they’re built in North America – one of the requirements under the new rules – General Motors, Chevrolet’s parent company, and Tesla had long ago sold more than 200,000 plug-in vehicles. That was the limit for any given manufacturer under the outgoing tax credit requirements. New rules, enacted as part of the Inflation Reduction Act, do away with that limit, though.

Still, not every buyer and not every electric vehicle will be eligible for credits. For instance, besides the requirement that the vehicle must be built in North America, there will be restrictions on its price, too. If it’s an SUV, its sticker price must not be higher than $80,000 and, if it’s a car, not more than $55,000.

As a result, most Tesla models, including the Model X SUV and Model S sedan and even the Model 3, as it’s currently priced on Tesla’s web site, still won’t be eligible for tax credits. And the Mercedes EQS SUV, which is assembled in the United States and is currently eligible for tax credits, according to an IRS web site, will become ineligible in the new year.

“It shuffles the deck as to who’s eligible, and then the deck will get shuffled again when this guidance comes out [in March],” said Harto. “And it just makes a giant mess for consumers, and automakers, and dealers.”

Also, no flipping allowed. The person purchasing the vehicle has to be the end user. If you’re purchasing the vehicle just to immediately resell it to someone else, you can’t claim the credit.

There are also limits on the buyer’s income. The purchaser can’t have a “modified adjusted gross income” over $150,000 for an individual, $300,000 for a couple filing jointly, or $225,000 for a single head of a household. These restrictions will keep many luxury electric vehicle buyers from getting tax credits.

The best thing vehicle shoppers can do is ask whether the specific vehicle they’re buying qualifies for a tax credit, said Andrew Koblenz, vice president for legal and regulatory affairs at the National Automobile Dealers Association. Some vehicle models are made in more than one factory, so two identical looking electric SUVs on the same dealer lot might not both qualify or might not qualify for the same amount of credit.

“It’s a great time to be shopping. It’s great that there will be more vehicles eligible now but you’ve still got to make sure the one you’re interested in is eligible,” Koblenz said. “You need to ask your dealer and your manufacturer that question and you’ve got to make sure that you qualify, too.”

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December 28, 2022
Biden announces $2.5 billion loan to help GM and LG make EV batteries | CNN Politics

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CNN
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The US Department of Energy’s Loan Programs Office will announce Monday that it is issuing a $2.5 billion loan to help start three lithium battery manufacturing hubs in Ohio, Tennessee and Michigan.

The DOE loan programs office will loan the money to Ultium Cells LLC, a joint venture of General Motors and South Korean battery manufacturer LG Energy Solutions making batteries to power electric vehicles. General Motors has pledged to go all-electric by 2035, phasing out conventional gas and diesel-powered engines.

In a statement, US Energy Secretary Jennifer Granholm said the DOE loan would “jumpstart the domestic battery cell production needed to reduce our reliance on other countries to meet increased demand.”

“DOE is flooring the accelerator to build the electric vehicle supply chain here at home – and that starts with domestic battery manufacturing led by American workers and the unions that support them,” Granholm said.

Granholm is traveling to Michigan on Monday, where she’ll appear with Gov. Gretchen Whitmer and prominent lawmakers including Sens. Gary Peters and Debbie Stabenow.

In President Joe Biden’s first year in office, he set a target to have EVs make up half of all new vehicles sales in the US by 2030.

After the climate law Congress passed this summer, it’s yet another sign that auto companies are racing to start onshoring electric vehicle production. In order to take advantage of a federal EV tax subsidy in the Inflation Reduction Act, electric vehicles and much of their battery components be sourced, processed and assembled in North America.

LG Energy Solutions is also set to partner with Japanese automaker Honda on a $3.5 billion joint venture battery factory in southern Ohio.

In October, Biden introduced the American Battery Materials Initiative, which the White House has called “a new effort to mobilize the entire government and securing a reliable and sustainable supply of critical minerals used for power, electricity and electric vehicles.” At the same time, the Administration pledged $2.8 billion from the bipartisan infrastructure law passed last year to 20 manufacturing and processing companies for projects in 12 states.

DOE estimates the three Ultium Cells facilities would create over 11,000 jobs. The Warren, Ohio, Ultium facility will be represented by the United Auto Workers, after the plant voted to unionize on Friday.

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December 12, 2022
Nikola to pause truck production after posting bigger quarterly loss | CNN Business

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Nikola Corp on Tuesday reported a bigger quarterly loss and said it would pause production to streamline the assembly line at its Coolidge, Arizona factory amid sluggish demand for its battery-powered trucks.

Investors have focused at cash reserves at Nikola and other EV makers amid fears that slowing sales could push the companies to pursue more share sales to raise funds.

“At the end of May, we plan to pause truck production as we convert the line to accommodate both hydrogen fuel cell and battery electric trucks on the same line and will resume production in July with the first saleable hydrogen fuel cell trucks,” Nikola said.

Earlier in the day, Fisker Inc cut its full-year production target as the electric-vehicle startup seeks to keep a leash on expenses and reported a smaller first-quarter loss.

Nikola’s net loss widened to $169.09 million in the quarter, from $152.94 million a year earlier.

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April 12, 2021
Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

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President Joe Biden kicked off his reelection campaign Saturday at a union rally in his frequent haunt of Pennsylvania, the state that remains an intersection of his personal and political identities that he hopes can propel him to a second term.

The first official rally of his final political campaign was a moment for Biden to underscore recent economic wins that undergird his argument for another four years in the White House.

“Just think back. Remember what it was like when I came to office, we came into office. Remember the mess we inherited,” Biden told the audience in Philadelphia. “Now look at where we are today.”

To a roaring crowd, who repeatedly cheered “four more years,” the president touted several accomplishments, including the bipartisan infrastructure law, a coronavirus relief package, a bipartisan semiconductor chip manufacturing law and the recently negotiated debt ceiling deal that helped avert a US default.

Biden also criticized recent Republican tax proposals while describing what he called his middle-class vision for the American economy, referring to it several times as “Biden-omics.”

Biden made only brief mention of Donald Trump, the current front-runner for the 2024 GOP presidential nomination, steering clear of the former president’s recent federal indictment and arraignment but hitting him on infrastructure.

“Under my predecessor, infrastructure week became a punchline,” Biden said. “On my watch, we’re making infrastructure a decade headline.”

First lady Jill Biden, who spoke shortly before her husband, highlighted the president’s optimism. Wearing a corsage to mark their 46th wedding anniversary Saturday, the first lady recalled how she met Biden following the death of his first wife and baby daughter in a tragic car accident that also injured his two sons.

“What I love about Joe is that even though he has faced unimaginable tragedies, his optimism is undaunted,” Jill Biden said. “His strength is unshakeable.”

She added that the president was “not done.”

“He’s ready to finish the job,” she said. “He’s ready to win, and with your help, he will.”

Though his economic wins were the centerpiece of Biden’s opening campaign event, polls show many voters give him poor marks for his handling of the economy, particularly as prices have soared post-pandemic. Recent figures have shown inflation easing, however, and fears of an imminent recession have faded.

Biden has said more Americans will come to reward him for his economic stewardship once the benefits of some of his signature legislative achievements, including a new infrastructure law, begin taking hold.

Labor groups that threw their backing behind Biden ahead of his speech include the AFL-CIO, which said it was the earliest point in a presidential election cycle it had ever endorsed a candidate.

“There’s absolutely no question that Joe Biden is the most pro-union president in our lifetimes,” said AFL-CIO President Liz Shuler. “From bringing manufacturing jobs home to America to protecting our pensions and making historic investments in infrastructure, clean energy and education, we’ve never seen a president work so tirelessly to rebuild our economy from the bottom up and middle out.”

Biden, who made his first stop after announcing his reelection bid a legislative conference for North America’s Building Trades Unions in Washington, has long relied on union support for his political ambitions.

“I’m more honored by your endorsement than you can imagine – coming this early, it’s going to make a gigantic difference in this campaign,” Biden said during Saturday’s event in Philadelphia, where he called himself “the most pro-union president in American history.”

Not all unions have thrown their support behind Biden’s reelection bid. The powerful United Auto Workers said last month it was holding off on endorsing Biden, citing concerns over his policies that would encourage a transition to electric vehicles, according to a memo from the union.

The UAW has more than 400,000 members, and Biden has touted its support in the past. Last year he called American autoworkers “the most skilled autoworkers in the world.” The group’s membership is mostly concentrated in Michigan, a presidential election battleground.

Biden also rankled union members last year when he signed legislation that averted a nationwide rail strike – a step he said was necessary to prevent a stoppage of important freight movement.

Biden’s campaign has leaned into his economic record, including releasing a 60-second ad titled “Backbone” last month. The spot struck a populist tone, mixing audio of the president speaking about “investing in places and people that have been forgotten” and a narrator ticking through the administration’s work to boost infrastructure and manufacturing in the country.

“Joe Biden’s building an economy that leaves no city, no town, no American behind,” the narrator says.

This story has been updated with additional information.

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April 12, 2021
Elon Musk says Tesla is coming to India ‘as soon as humanly possible’ | CNN Business

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Hong Kong
CNN
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Tesla CEO Elon Musk said Tuesday the company is looking to invest in India “as soon as humanly possible,” following a meeting with Indian Prime Minister Narendra Modi in New York.

“[Modi] really cares about India because he’s pushing us to make significant investments in India, which is something we intend to do. We are just trying to figure out the right timing,” Musk told reporters.

“I am confident that Tesla will be in India and will do so as soon as humanly possible,” he said, without specifying a timeline. Musk said he tentatively plans to visit India next year.

Musk’s push into the Indian market has been in the works for a long time. Back in 2017, the CEO said that Tesla

(TSLA) was planning to sell cars in India as soon as that summer.

But that plan has been delayed because of Tesla’s efforts to negotiate lower import duties with local government. Musk tweeted in 2021 that Tesla wanted to enter India, “but import duties are the highest in the world by far of any large country.”

Tesla had sought to slash the duties, but the Indian government reportedly wants the company to make cars locally before considering any tax breaks, according to Reuters.

On Tuesday, Musk said he had a “fantastic meeting” with the Modi and feels “incredibly excited about the future of India.”

“[Modi] really wants to do the right thing for India. He wants to be open, he wants to be supportive to the companies. And obviously, at the same time, make sure that it accrues to India’s advantage,” Musk said.

Tesla currently has one gigafactory in Asia, which is located in Shanghai. The Shanghai factory is Tesla’s biggest car manufacturing plant outside the United States and accounted for more than half of Tesla’s global deliveries in 2022.

Last month, Musk said at an event that the company would likely pick a location for a new Tesla factory by the end of the year and that India was an interesting option, Reuters reported at the time.

Both China and India have been trying to attract global EV investment and boost the EV industry.

On Wednesday, China announced it would extend tax breaks for consumers buying new energy vehicles — which include battery electric cars, plug-in hybrids, and fuel-cell vehicles — through 2027, in its latest effort to boost sales and production in the world’s biggest EV market. The current policy allows purchase tax exemption on NEVs until the end of 2023.

The tax break is estimated to reach 520 billion yuan ($72.3 billion) from 2024 to 2027, said Xu Hongcai, vice minister of finance, at a press conference in Beijing on Wednesday.

The move follows a State Council meeting earlier this month, during which senior officials said they would study policies to promote NEV development and optimize tax exemption.

From May 30 to June 1, Musk made his first visit to China since the pandemic and met a string of government officials to discuss EV development and Tesla’s operations in the country.

He also visited the Shanghai gigafactory, thanking the workers and saying that they make the “highest quality” Tesla cars around the world, with the “most efficient production.”

Before leaving, Musk also met Chen Jining, the Communist Party chief of Shanghai, who encouraged him to boost investment and operations and “bring more new products, new technologies and new services” to the city, according to a statement by the government.

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April 12, 2021
Tesla smashed it last quarter but China’s BYD did even better | CNN Business

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BYD outpaced Tesla in the second quarter as the Chinese carmaker posted record sales of hybrid and electric vehicles.

Between April and June, BYD

(BYDDF) sold more than 700,000 vehicles, almost double the number sold in the same quarter last year and setting a new quarterly record.

On Sunday, Tesla

(TSLA) announced it had achieved its best quarterly results. The company produced nearly 480,000 vehicles and delivered over 466,000.

In June, BYD, which is backed by Warren Buffett, sold a total of 253,046 new energy vehicles, up 89% from a year ago, according to a company filing released Sunday. It was the best monthly sales it has ever achieved. New energy vehicles include both battery powered EVs and plug-in hybrids.

Tesla and BYD are among the bestselling EV makers in the world. BYD still lags behind Tesla globally in terms of pure EV sales. But in China, the Shenzhen-based company has raced ahead as the top brand.

In May, BYD sold around 119,000 pure EVs, more than double from the same period last year.

In comparison, Tesla’s Shanghai Gigafactory delivered 77,695 vehicles in May, up 142% from a year ago, according to the most recent statistics released by the China Association of Automobile Manufacturers.

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April 12, 2021
A flying car prototype just got an airworthiness certificate from the FAA | CNN Business

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The Federal Aviation Administration has certified for testing a vehicle that a California startup describes as a flying car — the first fully electric vehicle that can both fly and travel on roads to receive US government approval.

Alef Automotive said that its vehicle/aircraft, dubbed the “Model A,” is the first flying vehicle that is drivable on public roads and able to park like a normal car. It also has vertical takeoff and landing capabilities. It apparently will be able to carry one or two occupants and will have a road-range of 200 miles and a flying range of 110 miles.

The company expects to sell the vehicle for $300,000 each with the first delivery by projected for the end of 2025.

The FAA confirmed that it has issued the company a special airworthiness certificate, allowing for limited purposes that include exhibition, research and development.

Numerous companies are working on all-electric VTOLs, which stands for vehicle takeoff and landing aircraft. The FAA said that Alef is “not the first aircraft of its kind” to get a special airworthiness certificate. However, Alef noted that its vehicle is different because of its ability to function both on roads and in the air, to appear like a normal car and to park in a normal parking space.

“We’re excited to receive this certification from the FAA. It allows us to move closer to bringing people an environmentally friendly and faster commute, saving individuals and companies hours each week. This is a one small step for planes, one giant step for cars,” said Jim Dukhovny, the CEO of Alef.

The company’s website said the flying car will be a certified as a “low speed vehicle,” which means it won’t be able to go faster than about 25 miles per hour on a paved road. “The assumption is that, if a driver needs a faster route, a driver will use Alef’s flight capabilities,” the company posted on the site.

Regardless, It also still needs approval from the National Highway Traffic Safety Administration to go on roads.

Development has been underway on the vehicle since 2015. Four friends, Constantine Kisly, Pavel Markin, Oleg Petrov and Dukhovny, inspired by the “Back to the Future” movies (which foresaw flying cars being available in that year), decided to form a company to try to develop them.

According to the company, an initial automated test flight of a skeleton version of the car was successfully conducted in 2018, and a full-size prototype was flown the following year. But Alef said that it needed the FAA’s special airworthiness certificate to continue conducting the necessary research and development.

The company also said that earlier this year that it had taken refundable pre-orders for more than 400 of the vehicles, with the cost of $150 for to be in the general queue or $1,500 for the priority queue.

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April 12, 2021
EPA preparing to release strict vehicle emissions rules | CNN Politics

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CNN
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The US Environmental Protection Agency is preparing to release strict new proposed federal emissions standards for light-duty vehicles that, if implemented, would move the US car market decisively toward electric vehicles over the next decade.

The EPA is considering emissions standards that could make up to two-thirds of new passenger vehicles sold in the US electric by 2032, according to a source familiar with the proposal.

If implemented, the new greenhouse gas performance standards would start for light-duty vehicles that are model year 2027 and gradually increase through model year 2032.

By 2032, the rules would ensure that 64% to 67% of all new-car sales in the US would be electric vehicles, according to the source.

The EPA’s proposal, which was first reported by The New York Times, comes after California air regulators voted last year to ban the sale of new gasoline-powered cars by 2035 and set interim targets to phase these cars out.

EPA spokesperson Tim Carroll did not comment on the specifics of the proposal but said the agency is working on developing new standards “to accelerate the transition to a zero-emissions transportation future, protecting people and the planet,” as directed by a previous executive order from President Joe Biden.

“Once the interagency review process is completed, the proposals will be signed, published in the Federal Register, and made available for public review and comment,” Carroll said.

The new rules could come as soon as Wednesday.

The EPA proposal is a monumental step toward zero-emissions vehicles, coming as the US tries to keep up with other countries racing toward EV adoption, one expert told CNN.

“I believe it’s pretty doable,” said Margo Oge, chair of the International Council on Clean Transportation and a former Obama EPA official. “The industry is there. Europe is ahead of the US, China is ahead of Europe, and these companies are global companies.”

Oge noted that in the US, California is already proposing 70% new zero-emissions vehicle sales by 2030 and other states are planning to adopt California’s rules – meaning much of the US car industry will be transitioning ahead of any proposed federal rule.

Still, the EPA’s proposal takes a different approach from California’s policy. Whereas California is mandating car companies sell a certain percentage of electric vehicles, the EPA would gradually raise greenhouse gas emissions standards to increasingly stringent levels from 2027 to 2032, pushing the industry toward electric vehicles to meet those high standards.

The EPA rule would ensure that the rest of the country and the US car industry would follow California’s lead, Oge said.

Biden has made electrifying the cars that Americans drive a key part of his climate goals. In 2021, the president set a new target that half of all vehicles sold in the US by 2030 would be battery electric, fuel-cell electric or plug-in hybrid.

The US Treasury Department is set to release rules for new federal electric vehicle tax credits on April 18. While these tax credits are complex and could take time for consumers to take full advantage of, experts hope they will help accelerate the transition to EVs in the US.

“Given the industry, the [Inflation Reduction Act] and what companies are doing globally, I just don’t see this number as being out of reach,” Oge said.

The proposed EPA rules will go through a lengthy public comment process and could be changed before they are finalized.

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April 12, 2021
Accelerating the EV revolution whether you like it or not | CNN Politics

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CNN
—

The Environmental Protection Agency proposed a plan to remake the way car-obsessed Americans live, using public safety rules to accelerate the shift from internal combustion to electric vehicles.

Just a fraction of the current auto market is EVs, but under standards announced by the EPA Wednesday, up to two-thirds of new vehicles sold in the US would be zero-emission or plug-in hybrid within a decade.

The rules, which are not yet final, would use authority under the Clean Air Act to force auto companies to cut pollution and slash vehicle emissions by more than half. They would phase in with model year 2027 vehicles and be fully implemented by 2032. Read CNN’s full report.

While ambitious, the goals are not unprecedented. They put the federal government on track to catch up with state governments, led by California, that want to stop allowing the sale of internal combustion vehicles by 2035. Read this report from CNN Business about why that’s not as crazy as it seems.

There is a very big legal question mark looming behind California’s action and the EPA’s effort, which still has a public comment and revision period.

The current Supreme Court, dominated by conservative justices, has already shown its scorn for EPA rulemaking and its indifference to addressing climate change. Last year, the court nixed the Biden administration’s plan to curb emissions from existing power plants.

I asked CNN climate reporter Ella Nilsen for her takeaways from the EPA announcement. She offered these key points:

► The standards are ambitious, but doable

If enacted, the newly proposed EPA emissions standards would be one of the Biden administration’s most aggressive climate-change policies yet – moving the US auto market decisively toward electric vehicles in the next decade.

However, multiple experts said the standards are doable, and even lag slightly behind the California standards, which will completely phase out the sale of gas-powered cars by 2035 to usher in electric vehicles. The US is also following countries including the EU and China, which are moving more aggressively toward electric vehicles.

► Charging infrastructure and consumer incentives could be tricky

This new proposed rule won’t happen overnight; it would be gradually phased in over the next decade. At the same time, the US needs to build up a network of electric charging stations in addition to the ubiquitous gas station. Federal officials have also talked about needing to incentivize more Americans to buy EVs by bringing the cost down, with federal tax credits.

However, the new $7,500 tax credits (passed last year by Democrats in the Inflation Reduction Act) are incredibly complex due to manufacturing requirements. The credits could actually shrink the eligible number of cars that qualify (however, leased vehicles have more leeway under the new system). Regardless, it will take years for the EV infrastructure, incentives and supply to fall into place to make electric vehicles available to most Americans.

► This is a big deal for US climate policy

This rule will impact the US economy, but it’s also major climate policy. The proposed EPA tailpipe standards would cut planet-warming pollution from US cars in half. Combined with the agency’s medium and heavy-duty vehicles standard, the proposals could cut nearly 10 billion tons of CO2 emissions by 2055.

Given Americans’ reliance on cars, transportation is a big part of overall US emissions – it accounts for nearly 30% of all greenhouse gas emissions in the US, according to the EPA. Cutting down on tailpipe pollution from gas-powered cars and trucks is a big part of decarbonizing the US.

While the federal government and key states are all in on moving toward EVs, and auto companies are spending big to get competitive in the market, Americans generally are not yet completely embracing the idea.

Just 4% of Americans currently own an EV, and a scant 12% are seriously considering buying one, according to a Gallup poll released Wednesday. Less than half, 43%, say they would consider buying an EV in the future, and a sizable 41% are completely closed off to the idea.

The expected partisan breakdown applies to those figures. Most of the interest in EVs is among Democrats. Most of the staunch opposition is among Republicans. Younger Americans and those making $100,000 and above are also more interested in buying an EV in the future.

There are also key regional disparities. In the West, where states are already working to phase in EVs, only 28% say they would not buy an EV. Compare that to half of Southerners who would not consider buying an EV.

A majority of the country is skeptical that EVs will even have an effect on the climate, according to the poll, with 61% saying EVs will help address climate change only a little or not at all.

In a separate AP-NORC poll released this week, the most-cited major reasons for not wanting to purchase an EV – out of eight offered in the poll – were expense (60% said they cost too much) and convenience (50% said there aren’t enough charging stations available).

Access and affordability should be addressed as inventory increases, writes CNN’s Peter Valdes-Dapena, who covers the auto industry. A decade from now, charging should be quicker and easier, EV ranges should be longer and prices should be at or below the cost of an internal combustion vehicle. Read his full report.

Rather than fighting the rules, as the fossil fuel industry is sure to do, the auto industry is already investing heavily in EVs, responding to tougher regulation already imposed around the world and by California, which moved to ban the sale of new gas and diesel powered vehicles by 2035.

California actually took the lead on pushing for EVs in the years when the Trump administration was dialing back on federal climate policy. Other states, like Oregon, Washington and Minnesota, have tied their standards to California’s.

Valdes-Dapena notes that car companies with loyal customer bases are slowly making the switch. He writes:

Currently, Toyota offers only one electric model in the United States, the BZ4X SUV, but more are planned. Honda, another Japanese brand with a loyal following, offers no EVs currently but the company is gearing up factories in Ohio to build future EV models. Honda expects to offer its first EV next year. General Motors also has a number of EV models coming in the next year or two.

He also notes that GM has pledged to sell only electric passenger vehicles by 2035.

And no, this does not mean internal combustion vehicles will be banned. They will still make up the vast majority of vehicles on the road in a decade even if this rule is finalized and withstands challenges in court. But it would represent a tectonic shift.

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April 12, 2021
Uber is funding an e-bike trade-in program to curb battery fires | CNN Business

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CNN
—

Uber is funding a new program that aims to get electric bikes with dangerous non-certified lithium-ion batteries off New York City streets.

The company said on Wednesday it will soon allow the thousands of New York City delivery workers who use e-bikes the ability to trade-in their bikes for newer, safer models.

The news follows a string of fires caused by lithium-ion batteries, which have been known to overheat when charging and cause massive explosions.

Earlier this week, the New York City police department said an e-bike’s lithium-ion battery was behind a fatal two-alarm fire in Queens. The FDNY’s Chief fire marshal John Hodgens said it was the 59th fire in the city this year caused by a lithium-ion battery.

Part of the issue is that not all lithium-ion batteries are created equal. UL-certified electric bikes and scooters come from reputable retailers and undergo extensive battery safety tests. But other online marketplaces, which some delivery workers may have turned to for more affordable options in the absence of company-provided options or subsidies, often make it hard to tell the origin of these products and the quality of their batteries.

To get more UL-certified e-bikes on roads, Uber is now partnering with e-bike company Zoomo to offer credit to delivery workers willing to swap their existing e-bikes for ones with higher-quality batteries. It will also offer rent-to-own pricing models and priority access to repairs and services.

Uber is also piloting a trade-in program with The Equitable Commute Project, a non-profit, to provide discounted UL-certified e-bikes in exchange for a “noncompliant device.”

“Delivery workers should not have to choose between making a living and safety,” said Josh Gold, Uber’s senior director for public policy, in a statement. “By providing discounts and exchange opportunities for new UL certified e-bikes and certified lithium-ion batteries, the expensive price tag that too often acts as a blocker to safety should no longer have to be a concern.”

Steve Kerber, vice president and executive director of UL’s Fire Safety Research Institute, previously told CNN the number of lithium-ion battery-based fires is growing with enormous frequency both in the United States and internationally, particularly when it comes to e-bikes and e-scooters. That’s due to an uptick in purchases of these products during the pandemic.

“People started to get overcharged for them and turned to manufacturers which happened to have lower quality control with the battery systems,” Kerber said. “The quality manufacturers are not having issues.”

Despite the concerns, lithium-ion batteries continue to be prevalent in today’s most popular gadgets, from smartphones and laptops to e-bikes and scooters. Some tech companies point to their abilities to charge faster, last longer and pack more power into a lighter package.

But Dylan Khoo, an analyst at tech intelligence firm ABI Research, previously told CNN that electric bikes and scooters use batteries which can be around 50 times larger than the one in a smartphone. “So when a fire does happen, it’s much more dangerous,” Khoo said.

All lithium-ion batteries use flammable materials, and incidents are likely the result of “thermal runaway,” a chain reaction which can lead to a fire or catastrophic explosion, according to Khoo.

“This process can be triggered by a battery overheating, being punctured, or an electrical fault like a short circuit,” Khoo said. “In cases where fires occur spontaneously while charging, it is likely due to manufacturing defects.”

Anyone with a lithium-ion battery should follow proper charging and battery usage guidelines, such as keeping them in a cool, dry place, and not leave it charging for too long or while you’re asleep. Batteries should also be routinely inspected to make sure there is no cracking, bulging or leaking, and people should always use the charger that came with the device or use one from a reputable supplier, according to researchers at the University of Michigan.

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April 12, 2021