REUTERS
"EV startup Fisker to raise funds, pause production after missing interest payment"
Reuters
March 18, 2024
March 18 (Reuters) - Fisker said on Monday it would pause production of its electric vehicles for six weeks and raise up to $150 million in funding by selling convertible notes after missing an interest payment, as the startup tries to navigate a cash crunch.
The company added that none of its Ocean SUVs were produced in January, while its manufacturing partner Magna's Austrian unit made about 1,000 vehicles between Feb. 1 and March 15.
Fisker delivered about 1,300 vehicles in 2024 and the value of inventory of completed vehicles was more than $200 million, according to the company.
The senior secured convertible notes will have a 10% original issue discount for gross proceeds of up to $150 million.
The notes are being sold to CVI Investments, which is working through Heights Capital Management, and the Warsaw-based investment fund can convert the debt into equity in Fisker, the EV firm said in documents filed with the U.S. Securities and Exchange Commission.
Fisker said it did not make the $8.4 million interest payment on March 15 for some convertible notes due 2026 despite having enough liquidity, as it wanted to take advantage of a 30-day grace period to talk to its investors about its capital structure.
As of Friday, the company's balance of cash, cash equivalents and restricted cash was $120.9 million, down from $395.9 million at the end of last year.
Fisker reiterated on Monday that it was in talks with a large automaker for a potential transaction, but did not name the company.
Reuters reported earlier this month that Nissan was in advanced talks to invest in the company in a deal that could act as a financial lifeline for the cash-strapped EV startup.
Earlier this year, Fisker started to transition its sales strategy from a direct-to-customer model to leaning on dealers to sell cars as it faced issues with distribution and servicing.
The company flagged substantial doubt about its ability to continue as a going concern in February and paused investments in future projects until it secured a partnership with an automaker.
Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta
https://www.reuters.com/business/autos- ... 024-03-18/
ELECTRIC VEHICLES
Re: ELECTRIC VEHICLES
REUTERS
"US agency probes driver assistance system use in fatal Ford crash"
By David Shepardson
March 18, 2024
WASHINGTON, March 18 (Reuters) - The National Highway Traffic Safety Administration said on Monday it has opened an investigation into a recent Ford Mustang Mach-E fatal crash in San Antonio, Texas, where authorities suspect an advanced driver assistance system was in use.
On Friday, the National Transportation Safety Board opened a separate investigation into the Feb. 24 crash, saying initial information indicated the Ford struck the rear of a Honda CR-V that was stationary in a traffic lane on Interstate Highway 10.
A San Antonio police report said the Ford had "partial automation" engaged at the time of the crash.
NHTSA is opening a special crash investigation into the Fatal Ford accident.
The agency typically opens more than 100 special crash investigations annually into emerging technologies and other potential auto safety issues.
Since 2016, NHTSA has opened more than three dozen Tesla special crash investigations where advanced driver assistance systems such as Autopilot were suspected of being used with 20 crash deaths reported.
This is NHTSA's first special crash probe involving a Ford advanced system.
The police report said the driver of the Honda CR-V, 56-year-old Jeffrey Allen Johnson of Austin, was taken to a hospital and later pronounced dead.
Ford has said its BlueCruise is an advanced hands-free driving system that operates on 97% of U.S. and Canadian highways with no intersections or traffic signals.
The NTSB said it was investigating the crash "due to its continued interest in advanced driver assistance systems and how vehicle operators interact with these technologies."
A Ford spokesperson said the automaker "reported this incident to NHTSA as soon as we were made aware, and we are actively researching all available information."
"Safety is a top priority for all of us at Ford, and we will collaborate fully with any resulting investigation."
The NTSB has opened several investigations in recent years into advanced driver assistance systems, including Tesla's Autopilot.
Reporting by David Shepardson; Editing by Aurora Ellis
https://www.reuters.com/business/autos- ... 024-03-18/
"US agency probes driver assistance system use in fatal Ford crash"
By David Shepardson
March 18, 2024
WASHINGTON, March 18 (Reuters) - The National Highway Traffic Safety Administration said on Monday it has opened an investigation into a recent Ford Mustang Mach-E fatal crash in San Antonio, Texas, where authorities suspect an advanced driver assistance system was in use.
On Friday, the National Transportation Safety Board opened a separate investigation into the Feb. 24 crash, saying initial information indicated the Ford struck the rear of a Honda CR-V that was stationary in a traffic lane on Interstate Highway 10.
A San Antonio police report said the Ford had "partial automation" engaged at the time of the crash.
NHTSA is opening a special crash investigation into the Fatal Ford accident.
The agency typically opens more than 100 special crash investigations annually into emerging technologies and other potential auto safety issues.
Since 2016, NHTSA has opened more than three dozen Tesla special crash investigations where advanced driver assistance systems such as Autopilot were suspected of being used with 20 crash deaths reported.
This is NHTSA's first special crash probe involving a Ford advanced system.
The police report said the driver of the Honda CR-V, 56-year-old Jeffrey Allen Johnson of Austin, was taken to a hospital and later pronounced dead.
Ford has said its BlueCruise is an advanced hands-free driving system that operates on 97% of U.S. and Canadian highways with no intersections or traffic signals.
The NTSB said it was investigating the crash "due to its continued interest in advanced driver assistance systems and how vehicle operators interact with these technologies."
A Ford spokesperson said the automaker "reported this incident to NHTSA as soon as we were made aware, and we are actively researching all available information."
"Safety is a top priority for all of us at Ford, and we will collaborate fully with any resulting investigation."
The NTSB has opened several investigations in recent years into advanced driver assistance systems, including Tesla's Autopilot.
Reporting by David Shepardson; Editing by Aurora Ellis
https://www.reuters.com/business/autos- ... 024-03-18/
Re: ELECTRIC VEHICLES
REUTERS
"US eases tailpipe rules, slows EV transition through 2030"
By David Shepardson and Joseph White
March 20, 2024
WASHINGTON, March 20 (Reuters) - The Biden administration on Wednesday slashed its target for U.S. electric vehicle adoption from 67% by 2032 to as little as 35% after industry and autoworker backlash in the political battleground state of Michigan.
The Environmental Protection Agency instead adopted a “technology neutral” regulatory scheme that allows automakers far more freedom to meet emissions standards with gas-electric hybrids, which many environmentalists have opposed as a half-measure that delays the EV transition.
The agency also embraced “advanced gasoline” technologies to save fuel, such as turbo-charging, lighter vehicles or stop-start ignition systems.
EPA administrator Michael Regan told reporters the new rules would nonetheless achieve the same greenhouse-gas reductions as the original EPA proposal for a far more aggressive EV transition.
“Let me be clear, our final rule delivers the same, if not more pollution reduction," he said.
“We designed the standards to be technology neutral and performance-based to give manufacturers the flexibility to choose which combination of pollution control technologies are best suited for their consumers."
Regan emphasized there is “absolutely no mandate” to adopt electric vehicles.
The EPA acknowledged the rule cuts emissions by 49% by 2032 over 2026 levels compared with 56% under the proposal last year.
Regan said in an interview the reductions were "essentially the same" between the proposal and final rule.
The EPA's revised proposal reflects the political squeeze Biden faces in his re-election campaign.
For both Biden and his Republican rival, Donald Trump, the road to the White House goes through Michigan and other industrial states such as Wisconsin and Pennsylvania where workers fear that the EV transition threatens jobs.
Trump has repeatedly excoriated EVs.
The emissions rules likely mark the last major environmental policy move Biden will make before he faces the voters in November.
BIG POLLUTION REDUCTIONS
The new rules, while softened, will nonetheless force dramatic emissions reductions.
The EPA said the plan cuts fleetwide tailpipe emissions by 50% over 2026 levels and reduces greenhouse-gas emissions by 7.2 billion tons through 2055.
The EPA’s percentage targets for EV adoption are not mandates but forecasts of how automakers will change their fleets to meet regulations.
Its projection on Wednesday came as a wide range — between 35% and 56% of all sales between 2030 and 2032 — rather than a specific target, reflecting the flexibility it emphasized for automakers to pursue different pollution-cutting technologies.
The new regulations will be easier, but hardly easy, for automakers to meet given the relatively low levels of U.S. EV and hybrid adoption now.
EVs last year accounted for less than 8% of vehicle sales.
Hybrids, including plug-ins, accounted for about 9% of sales, according to Cox Automotive data.
Hybrid sales, however, have surged in recent months as EV demand slowed, suggesting the new regulations could set off a hybrid boom.
Environmentalists and electric-vehicle makers such as Tesla have often blasted hybrids as a side-road on the way to an urgently needed transition to fully electric vehicles.
Tesla executive Martin Viecha repeated that mantra on Wednesday, posting on the X social media platform: “Unfortunately, people use plug-in hybrids mainly as gas cars, which means their CO2 emissions are far worse” than the EPA suggests.
And yet Tesla policy executive Rohan Patel acknowledged the practicality of the new standards in another post, calling them "less ambitious and therefore even more achievable."
Some climate activists had a harsher take.
“This rule could’ve been the biggest single step of any nation on climate, but the EPA caved to pressure from Big Auto, Big Oil and car dealers and riddled the plan with loopholes big enough to drive a Ford F150 through,” said Dan Becker, director of the Center for Biological Diversity.
WIN FOR DETROIT
The United Auto Workers, which has endorsed Biden’s re-election campaign, cheered the more flexible regulations.
Its workers worry that EVs will cost auto jobs, which are often less plentiful and lower-paying in EV plants.
“By taking seriously the concerns of workers and communities, the EPA has come a long way to create a more feasible emissions rule that protects workers" building vehicles with internal-combustion engines, the union said, while also promoting "the full range of automotive technologies to reduce emissions."
The EPA rule goes easier on the Detroit Three's highly-profitable heavy duty pickup truck franchises than on passenger cars or lighter trucks.
By 2032, vehicles such as Ford's Super Duty pickups will be required to cut their CO2 emissions by 46%.
But they will still be allowed to emit more than three times as much as CO2 than a light-duty pickup such as the Ford F-150 or Chevrolet Silverado 1500, and nearly four times as much CO2 as a passenger car, according to an EPA statement.
Automakers won separate relief on Tuesday when the Energy Department softened and opted to phase in new rules that will reduce the mileage rating of EVs.
That will help the Detroit Three avoid billions of dollars in fines for not meeting fuel efficiency standards through 2032.
Shares in General Motors, Ford and Stellantis rose on Wednesday, with Ford up the most, up 3.5 % in afternoon trading.
Investors and analysts have been urging the Detroit automakers to slow investments in money-losing electric vehicles.
The Biden administration rules give them more leeway to do that.
The change in the final rules reflects lobbying by the UAW, automakers and car dealers.
The Alliance for Automotive Innovation, a trade group representing nearly all automakers except Tesla, said the new rules prioritize “more reasonable electrification targets in the next few (very critical) years of the EV transition."
Reporting by David Shepardson in Washington and Joseph White in Detroit, editing by Ben Klayman, Nick Zieminski and Brian Thevenot
https://www.reuters.com/sustainability/ ... 024-03-20/
"US eases tailpipe rules, slows EV transition through 2030"
By David Shepardson and Joseph White
March 20, 2024
WASHINGTON, March 20 (Reuters) - The Biden administration on Wednesday slashed its target for U.S. electric vehicle adoption from 67% by 2032 to as little as 35% after industry and autoworker backlash in the political battleground state of Michigan.
The Environmental Protection Agency instead adopted a “technology neutral” regulatory scheme that allows automakers far more freedom to meet emissions standards with gas-electric hybrids, which many environmentalists have opposed as a half-measure that delays the EV transition.
The agency also embraced “advanced gasoline” technologies to save fuel, such as turbo-charging, lighter vehicles or stop-start ignition systems.
EPA administrator Michael Regan told reporters the new rules would nonetheless achieve the same greenhouse-gas reductions as the original EPA proposal for a far more aggressive EV transition.
“Let me be clear, our final rule delivers the same, if not more pollution reduction," he said.
“We designed the standards to be technology neutral and performance-based to give manufacturers the flexibility to choose which combination of pollution control technologies are best suited for their consumers."
Regan emphasized there is “absolutely no mandate” to adopt electric vehicles.
The EPA acknowledged the rule cuts emissions by 49% by 2032 over 2026 levels compared with 56% under the proposal last year.
Regan said in an interview the reductions were "essentially the same" between the proposal and final rule.
The EPA's revised proposal reflects the political squeeze Biden faces in his re-election campaign.
For both Biden and his Republican rival, Donald Trump, the road to the White House goes through Michigan and other industrial states such as Wisconsin and Pennsylvania where workers fear that the EV transition threatens jobs.
Trump has repeatedly excoriated EVs.
The emissions rules likely mark the last major environmental policy move Biden will make before he faces the voters in November.
BIG POLLUTION REDUCTIONS
The new rules, while softened, will nonetheless force dramatic emissions reductions.
The EPA said the plan cuts fleetwide tailpipe emissions by 50% over 2026 levels and reduces greenhouse-gas emissions by 7.2 billion tons through 2055.
The EPA’s percentage targets for EV adoption are not mandates but forecasts of how automakers will change their fleets to meet regulations.
Its projection on Wednesday came as a wide range — between 35% and 56% of all sales between 2030 and 2032 — rather than a specific target, reflecting the flexibility it emphasized for automakers to pursue different pollution-cutting technologies.
The new regulations will be easier, but hardly easy, for automakers to meet given the relatively low levels of U.S. EV and hybrid adoption now.
EVs last year accounted for less than 8% of vehicle sales.
Hybrids, including plug-ins, accounted for about 9% of sales, according to Cox Automotive data.
Hybrid sales, however, have surged in recent months as EV demand slowed, suggesting the new regulations could set off a hybrid boom.
Environmentalists and electric-vehicle makers such as Tesla have often blasted hybrids as a side-road on the way to an urgently needed transition to fully electric vehicles.
Tesla executive Martin Viecha repeated that mantra on Wednesday, posting on the X social media platform: “Unfortunately, people use plug-in hybrids mainly as gas cars, which means their CO2 emissions are far worse” than the EPA suggests.
And yet Tesla policy executive Rohan Patel acknowledged the practicality of the new standards in another post, calling them "less ambitious and therefore even more achievable."
Some climate activists had a harsher take.
“This rule could’ve been the biggest single step of any nation on climate, but the EPA caved to pressure from Big Auto, Big Oil and car dealers and riddled the plan with loopholes big enough to drive a Ford F150 through,” said Dan Becker, director of the Center for Biological Diversity.
WIN FOR DETROIT
The United Auto Workers, which has endorsed Biden’s re-election campaign, cheered the more flexible regulations.
Its workers worry that EVs will cost auto jobs, which are often less plentiful and lower-paying in EV plants.
“By taking seriously the concerns of workers and communities, the EPA has come a long way to create a more feasible emissions rule that protects workers" building vehicles with internal-combustion engines, the union said, while also promoting "the full range of automotive technologies to reduce emissions."
The EPA rule goes easier on the Detroit Three's highly-profitable heavy duty pickup truck franchises than on passenger cars or lighter trucks.
By 2032, vehicles such as Ford's Super Duty pickups will be required to cut their CO2 emissions by 46%.
But they will still be allowed to emit more than three times as much as CO2 than a light-duty pickup such as the Ford F-150 or Chevrolet Silverado 1500, and nearly four times as much CO2 as a passenger car, according to an EPA statement.
Automakers won separate relief on Tuesday when the Energy Department softened and opted to phase in new rules that will reduce the mileage rating of EVs.
That will help the Detroit Three avoid billions of dollars in fines for not meeting fuel efficiency standards through 2032.
Shares in General Motors, Ford and Stellantis rose on Wednesday, with Ford up the most, up 3.5 % in afternoon trading.
Investors and analysts have been urging the Detroit automakers to slow investments in money-losing electric vehicles.
The Biden administration rules give them more leeway to do that.
The change in the final rules reflects lobbying by the UAW, automakers and car dealers.
The Alliance for Automotive Innovation, a trade group representing nearly all automakers except Tesla, said the new rules prioritize “more reasonable electrification targets in the next few (very critical) years of the EV transition."
Reporting by David Shepardson in Washington and Joseph White in Detroit, editing by Ben Klayman, Nick Zieminski and Brian Thevenot
https://www.reuters.com/sustainability/ ... 024-03-20/
Re: ELECTRIC VEHICLES
REUTERS
"Fisker deal talks with big automaker collapse, NYSE to delist stock"
By Akash Sriram and Zaheer Kachwala
March 25, 2024
March 25 (Reuters) - Cash-strapped Fisker's talks with a large automaker for a potential deal have collapsed and the New York Stock Exchange plans to delist the electric-vehicle startup's shares due to "abnormally low" price levels.
The NYSE has also suspended trading in the stock, it said on Monday, hours after trading was halted pending an announcement.
Fisker's shares were trading at $0.09 before the halt and closed at $0.13 on Friday.
The termination of talks with the unnamed automaker has led Fisker to search for strategic options including in- or out-of-court restructurings and capital markets transactions, the startup said on Monday.
The news comes a week after the company paused electric-vehicle production, fanning growing uncertainty around its future.
"I can't put it if it is next week or next year, but it is inevitable," Thomas Hayes, Chairman at hedge fund Great Hill Capital, said on the growing chances of Fisker likely to file for bankruptcy protection.
A potential bankruptcy will make Fisker the second failed auto startup from Henrik Fisker, who started his career as an automotive designer and was also a Tesla consultant.
His previous attempt, Fisker Automotive, fell victim to the 2008 financial crisis and filed for bankruptcy in 2013 despite fetching $192 million in loans from the Department of Energy.
Fisker's latest venture was founded in 2016 and went public through a merger with a blank-check firm for a valuation of $2.9 billion.
But a slew of supply chain issues, production delays and fundraising hurdles sent its market valuation crashing to less than $100 million.
Reuters had earlier this month reported that Japanese automaker Nissan was in advanced talks to invest in the startup.
STRUGGLES TO RAISE FUNDS
Fisker said on Monday it will be unable to meet a closing condition related to its attempt to raise up to $150 million by selling convertible notes after missing an interest payment.
The $8.4 million payment for some notes due in 2026 was supposed to be paid on March 15, but the startup said it did not pay despite having enough liquidity as it wanted to use the 30-day grace period to talk to investors about its capital structure.
Raising funds has been hard for loss-making EV startups, which have little by way of revenue as they struggle to ramp up production and deliver to customers amid strong competition and a tough economy.
Separately, Fisker said it would ask investors to vote on a proposal for a reverse stock-split at a shareholder meeting on April 24, as it looks to comply with the New York Stock Exchange's listing norms.
Fisker's shares have lost more than 90% of their value this year, after the startup flagged going-concern risk in February and paused investments in future projects until it secured a partnership.
It pivoted to a dealer-partner model earlier this year, after delivering less than half of the vehicles it made in 2023 due to logistics issues.
Fisker has pursued a different strategy from Tesla and other EV startups by relying on auto supplier Magna to assemble its vehicles rather than invest the capital to build and operate a factory on its own.
The Fisker Ocean competes with Tesla's Model Y SUV, and a growing crowd of mid-size electric SUVs such as the Ford Mustang Mach-E.
Reporting by Zaheer Kachwala and Akash Sriram in Bengaluru and Joe White in Detroit; Editing by Shilpi Majumdar, Arun Koyyur and Devika Syamnath
https://www.reuters.com/business/autos- ... 024-03-25/
"Fisker deal talks with big automaker collapse, NYSE to delist stock"
By Akash Sriram and Zaheer Kachwala
March 25, 2024
March 25 (Reuters) - Cash-strapped Fisker's talks with a large automaker for a potential deal have collapsed and the New York Stock Exchange plans to delist the electric-vehicle startup's shares due to "abnormally low" price levels.
The NYSE has also suspended trading in the stock, it said on Monday, hours after trading was halted pending an announcement.
Fisker's shares were trading at $0.09 before the halt and closed at $0.13 on Friday.
The termination of talks with the unnamed automaker has led Fisker to search for strategic options including in- or out-of-court restructurings and capital markets transactions, the startup said on Monday.
The news comes a week after the company paused electric-vehicle production, fanning growing uncertainty around its future.
"I can't put it if it is next week or next year, but it is inevitable," Thomas Hayes, Chairman at hedge fund Great Hill Capital, said on the growing chances of Fisker likely to file for bankruptcy protection.
A potential bankruptcy will make Fisker the second failed auto startup from Henrik Fisker, who started his career as an automotive designer and was also a Tesla consultant.
His previous attempt, Fisker Automotive, fell victim to the 2008 financial crisis and filed for bankruptcy in 2013 despite fetching $192 million in loans from the Department of Energy.
Fisker's latest venture was founded in 2016 and went public through a merger with a blank-check firm for a valuation of $2.9 billion.
But a slew of supply chain issues, production delays and fundraising hurdles sent its market valuation crashing to less than $100 million.
Reuters had earlier this month reported that Japanese automaker Nissan was in advanced talks to invest in the startup.
STRUGGLES TO RAISE FUNDS
Fisker said on Monday it will be unable to meet a closing condition related to its attempt to raise up to $150 million by selling convertible notes after missing an interest payment.
The $8.4 million payment for some notes due in 2026 was supposed to be paid on March 15, but the startup said it did not pay despite having enough liquidity as it wanted to use the 30-day grace period to talk to investors about its capital structure.
Raising funds has been hard for loss-making EV startups, which have little by way of revenue as they struggle to ramp up production and deliver to customers amid strong competition and a tough economy.
Separately, Fisker said it would ask investors to vote on a proposal for a reverse stock-split at a shareholder meeting on April 24, as it looks to comply with the New York Stock Exchange's listing norms.
Fisker's shares have lost more than 90% of their value this year, after the startup flagged going-concern risk in February and paused investments in future projects until it secured a partnership.
It pivoted to a dealer-partner model earlier this year, after delivering less than half of the vehicles it made in 2023 due to logistics issues.
Fisker has pursued a different strategy from Tesla and other EV startups by relying on auto supplier Magna to assemble its vehicles rather than invest the capital to build and operate a factory on its own.
The Fisker Ocean competes with Tesla's Model Y SUV, and a growing crowd of mid-size electric SUVs such as the Ford Mustang Mach-E.
Reporting by Zaheer Kachwala and Akash Sriram in Bengaluru and Joe White in Detroit; Editing by Shilpi Majumdar, Arun Koyyur and Devika Syamnath
https://www.reuters.com/business/autos- ... 024-03-25/
Re: ELECTRIC VEHICLES
REUTERS
"US closes $362 million loan to CelLink for vehicle wiring plant"
By Timothy Gardner
April 24, 2024
WASHINGTON, April 24 (Reuters) - The United States has closed a $362 million loan to CelLink Corp to help finance the construction of a plant in Texas to make components for electric vehicle assembly, the Department of Energy's loan programs office said on Wednesday.
WHY IT'S IMPORTANT
The financing from the government's Advanced Technology Vehicles Manufacturing loan program is for the development of lighter, more efficient flexible circuit wiring harnesses for automotive and other industries.
CelLink has developed a new method of connecting battery cells and packs, and transferring power and data across vehicle sensors, modules and electronic control units, according to the company.
Most wire harness production for the U.S. market is currently in low-cost labor countries due to the complex processes associated with traditional wire harness assembly, the Energy Department has said.
BY THE NUMBERS
Once operational, the plant is expected to produce enough wiring harnesses to support the manufacture of about 2.7 million EVs per year and more than 1,200 jobs.
KEY QUOTES
“EV sales have quadrupled since President (Joe) Biden took office, reaching historic levels just last year and projected to hit new records for 2024, underscoring why it's essential for the United States to harness manufacturing of all the key EV components," said U.S. Energy Secretary Jennifer Granholm.
WHAT'S NEXT
The Texas facility will eventually hold up to 25 manufacturing lines that will be brought online in stages over the next several years depending on demand.
The Biden administration last month slashed its target for electric vehicle adoption projecting that between 35% and 56% of all new vehicles will be electric between 2030 and 2032.
Auto workers in the political battleground state of Michigan had slammed the administration's tougher targets.
Reporting by Timothy Gardner; Editing by Kirsten Donovan
https://www.reuters.com/business/autos- ... 024-04-24/
"US closes $362 million loan to CelLink for vehicle wiring plant"
By Timothy Gardner
April 24, 2024
WASHINGTON, April 24 (Reuters) - The United States has closed a $362 million loan to CelLink Corp to help finance the construction of a plant in Texas to make components for electric vehicle assembly, the Department of Energy's loan programs office said on Wednesday.
WHY IT'S IMPORTANT
The financing from the government's Advanced Technology Vehicles Manufacturing loan program is for the development of lighter, more efficient flexible circuit wiring harnesses for automotive and other industries.
CelLink has developed a new method of connecting battery cells and packs, and transferring power and data across vehicle sensors, modules and electronic control units, according to the company.
Most wire harness production for the U.S. market is currently in low-cost labor countries due to the complex processes associated with traditional wire harness assembly, the Energy Department has said.
BY THE NUMBERS
Once operational, the plant is expected to produce enough wiring harnesses to support the manufacture of about 2.7 million EVs per year and more than 1,200 jobs.
KEY QUOTES
“EV sales have quadrupled since President (Joe) Biden took office, reaching historic levels just last year and projected to hit new records for 2024, underscoring why it's essential for the United States to harness manufacturing of all the key EV components," said U.S. Energy Secretary Jennifer Granholm.
WHAT'S NEXT
The Texas facility will eventually hold up to 25 manufacturing lines that will be brought online in stages over the next several years depending on demand.
The Biden administration last month slashed its target for electric vehicle adoption projecting that between 35% and 56% of all new vehicles will be electric between 2030 and 2032.
Auto workers in the political battleground state of Michigan had slammed the administration's tougher targets.
Reporting by Timothy Gardner; Editing by Kirsten Donovan
https://www.reuters.com/business/autos- ... 024-04-24/
Re: ELECTRIC VEHICLES
REUTERS
"Rivian receives $827 mln in incentives to expand Illinois facility, shares jump"
By Reuters
May 2, 2024
May 2 (Reuters) - Rivian Automotive said on Thursday it has received $827 million in an incentive package from the State of Illinois to expand operations at its Normal facility.
The Irvine, California-based company's shares rose nearly 10% in afternoon trade after having lost more than 60% of their value this year, as of Wednesday's close.
The Illinois plant, where Rivian also makes its electric delivery vans for its largest investor, Amazon.com, can produce 150,000 vehicles a year, the company said.
Rivian will be producing its less-expensive midsize SUV R2 model, unveiled in March and will take on Tesla's Model Y, at the plant
With the addition of the R2, Rivian expects a total annual capacity of 215,000 vehicles.
The company said the funds from the state of Illinois would be spent on expanding the plant, improving public infrastructure and job training programs for its workforce.
The incentive package would add to Rivian's balance of cash and cash equivalents of $7.86 billion at end of last year.
Earlier this year, Rivian had said it expects to spend about $1.75 billion in capital expenditures in 2024, driven by additional investment in a second facility just outside of Atlanta, Georgia facility, but it has since paused construction of the plant.
Construction would resume later in Georgia as that site "remains an extremely important part of its long-term strategy," Rivian said.
Rivian, which is set to report first-quarter results next week, raised more than $3 billion with two bond issuances last year, but some analysts and investors say it will need additional capital by 2026.
Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid
https://www.reuters.com/business/autos- ... 024-05-02/
"Rivian receives $827 mln in incentives to expand Illinois facility, shares jump"
By Reuters
May 2, 2024
May 2 (Reuters) - Rivian Automotive said on Thursday it has received $827 million in an incentive package from the State of Illinois to expand operations at its Normal facility.
The Irvine, California-based company's shares rose nearly 10% in afternoon trade after having lost more than 60% of their value this year, as of Wednesday's close.
The Illinois plant, where Rivian also makes its electric delivery vans for its largest investor, Amazon.com, can produce 150,000 vehicles a year, the company said.
Rivian will be producing its less-expensive midsize SUV R2 model, unveiled in March and will take on Tesla's Model Y, at the plant
With the addition of the R2, Rivian expects a total annual capacity of 215,000 vehicles.
The company said the funds from the state of Illinois would be spent on expanding the plant, improving public infrastructure and job training programs for its workforce.
The incentive package would add to Rivian's balance of cash and cash equivalents of $7.86 billion at end of last year.
Earlier this year, Rivian had said it expects to spend about $1.75 billion in capital expenditures in 2024, driven by additional investment in a second facility just outside of Atlanta, Georgia facility, but it has since paused construction of the plant.
Construction would resume later in Georgia as that site "remains an extremely important part of its long-term strategy," Rivian said.
Rivian, which is set to report first-quarter results next week, raised more than $3 billion with two bond issuances last year, but some analysts and investors say it will need additional capital by 2026.
Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar and Tasim Zahid
https://www.reuters.com/business/autos- ... 024-05-02/
Re: ELECTRIC VEHICLES
REUTERS
"Rivian sticks to annual production forecast, posts wider quarterly loss"
By Reuters
May 7, 2024
May 7 (Reuters) - Electric-vehicle maker Rivian on Tuesday reiterated its 2024 production forecast, keeping it well below analysts' expectations, as it focuses on restarting production after a shutdown last month to upgrade its assembly line and reduce costs.
Shares of Rivian, which reported a wider first-quarter loss, were down about 2% in after-hours trading.
The company also cut its annual capital expenditure forecast by $550 million to $1.2 billion, as it moved the start of production of its R2 midsize SUV to its Normal, Illinois plant.
Analysts were expecting capital spending of $1.59 billion.
In March, Rivian, known for its larger R1S SUVs and R1T pickup trucks, said it would start producing the more affordable R2 vehicles at its existing Illinois factory to speed up deliveries in the first half of 2026 instead of a proposed plant in Georgia.
That, it has said, would save the company more than $2 billion in expenses.
The company expects to make 57,000 units this year, while analysts expect Rivian to make 62,277 vehicles in 2024, according to nine analysts polled by Visible Alpha.
In February, Rivian introduced a lower-cost variant of the R1T pickup truck and R1S SUV to drum up demand that has slowed due to high interest rates and customers gravitating to less-expensive gasoline-hybrid vehicles.
The Amazon.com-backed company has been cutting costs by re-negotiating contracts with suppliers and building some parts in-house including its drive unit, dubbed Enduro, to reduce dependency on vendors.
Its transition to new suppliers will help quickly ramp up production of the newly unveiled smaller, less-expensive midsize R2 SUVs, the company had said.
Revenue for the January-to-March quarter stood at $1.2 billion, compared with analysts' average estimate of $1.16 billion, according to LSEG data.
The company's net loss widened to $1.45 billion in the reported quarter, from $1.35 billion a year earlier.
At the quarter ended March 31, Rivian said its cash and cash equivalents were $5.98 billion, compared with $7.86 billion in the fourth quarter of last year.
Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shailesh Kuber
https://www.reuters.com/business/autos- ... 024-05-07/
"Rivian sticks to annual production forecast, posts wider quarterly loss"
By Reuters
May 7, 2024
May 7 (Reuters) - Electric-vehicle maker Rivian on Tuesday reiterated its 2024 production forecast, keeping it well below analysts' expectations, as it focuses on restarting production after a shutdown last month to upgrade its assembly line and reduce costs.
Shares of Rivian, which reported a wider first-quarter loss, were down about 2% in after-hours trading.
The company also cut its annual capital expenditure forecast by $550 million to $1.2 billion, as it moved the start of production of its R2 midsize SUV to its Normal, Illinois plant.
Analysts were expecting capital spending of $1.59 billion.
In March, Rivian, known for its larger R1S SUVs and R1T pickup trucks, said it would start producing the more affordable R2 vehicles at its existing Illinois factory to speed up deliveries in the first half of 2026 instead of a proposed plant in Georgia.
That, it has said, would save the company more than $2 billion in expenses.
The company expects to make 57,000 units this year, while analysts expect Rivian to make 62,277 vehicles in 2024, according to nine analysts polled by Visible Alpha.
In February, Rivian introduced a lower-cost variant of the R1T pickup truck and R1S SUV to drum up demand that has slowed due to high interest rates and customers gravitating to less-expensive gasoline-hybrid vehicles.
The Amazon.com-backed company has been cutting costs by re-negotiating contracts with suppliers and building some parts in-house including its drive unit, dubbed Enduro, to reduce dependency on vendors.
Its transition to new suppliers will help quickly ramp up production of the newly unveiled smaller, less-expensive midsize R2 SUVs, the company had said.
Revenue for the January-to-March quarter stood at $1.2 billion, compared with analysts' average estimate of $1.16 billion, according to LSEG data.
The company's net loss widened to $1.45 billion in the reported quarter, from $1.35 billion a year earlier.
At the quarter ended March 31, Rivian said its cash and cash equivalents were $5.98 billion, compared with $7.86 billion in the fourth quarter of last year.
Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Shailesh Kuber
https://www.reuters.com/business/autos- ... 024-05-07/
Re: ELECTRIC VEHICLES
REUTERS
"US could ban Chinese connected vehicles or impose restrictions, US commerce secretary says"
By Reuters
May 8, 2024
WASHINGTON, May 8 (Reuters) - U.S. Commerce Secretary Gina Raimondo said on Wednesday the Biden administration could take an "extreme action" and ban Chinese connected vehicles or opt to impose restrictions but must first review extensive public comments.
The department in late February said it was opening an investigation into whether Chinese vehicle imports pose national security risks and accepted public comments through April 30 on the issue.
Raimondo told Reuters in a brief interview the department was reviewing public comments.
"We have to digest all the data and then figure out what action that we want to take," Raimondo said.
"We could take extreme action, which is to say no Chinese connected vehicles in the United States or look for mitigation."
Reporting by David Shepardson; Editing by Chris Reese
https://www.reuters.com/world/us/us-cou ... 024-05-08/
"US could ban Chinese connected vehicles or impose restrictions, US commerce secretary says"
By Reuters
May 8, 2024
WASHINGTON, May 8 (Reuters) - U.S. Commerce Secretary Gina Raimondo said on Wednesday the Biden administration could take an "extreme action" and ban Chinese connected vehicles or opt to impose restrictions but must first review extensive public comments.
The department in late February said it was opening an investigation into whether Chinese vehicle imports pose national security risks and accepted public comments through April 30 on the issue.
Raimondo told Reuters in a brief interview the department was reviewing public comments.
"We have to digest all the data and then figure out what action that we want to take," Raimondo said.
"We could take extreme action, which is to say no Chinese connected vehicles in the United States or look for mitigation."
Reporting by David Shepardson; Editing by Chris Reese
https://www.reuters.com/world/us/us-cou ... 024-05-08/
Re: ELECTRIC VEHICLES
REUTERS
"Tesla's EV charging team layoffs threaten to slow Biden's program to electrify highways"
By Abhirup Roy
May 10, 2024
SAN FRANCISCO, May 10 (Reuters) - Elon Musk's decision to gut Tesla's electric-vehicle charging team is scrambling plans for rolling out new fast-charging stations and may delay President Joe Biden's efforts to electrify U.S. highways.
Last year, the Biden administration announced rules for an ambitious plan to expand the country's charging infrastructure and jump-start EV adoption.
Under the National Electric Vehicle Infrastructure (NEVI) program, the government is doling out $5 billion to states over five years to build 500,000 EV chargers.
EV market leader Tesla, which also operates the largest network of fast chargers - called Superchargers - in the U.S. and is the biggest winner so far of those federal funds, was seen as a crucial part of that plan.
Since news of Tesla's abrupt EV charging layoffs surfaced, however, executives at charging companies say they have been receiving phone calls from landlords looking for a new partner for their private charging projects after Tesla pulled out.
Now, the charging companies are preparing for Tesla to pull out of the federal program.
That, they say, could throw a new wrench into an already-slow rollout.
"It's going to delay NEVI rollout."
"There's no question about it," said Aatish Patel, co-founder of XCharge North America, which makes EV chargers for fleets and charging station operators.
If Tesla backs out, then the solicitation by states for NEVI-funded charging projects starts over, he told Reuters.
"A lot of these sites aren't going to get built this year, or within the time frames that were initially dictated."
Patel said real estate companies representing about 10 non-NEVI sites in Texas, Louisiana and New York had called since news of the layoffs, saying that Tesla was pulling out and they were looking for a replacement.
Tesla has won awards to build chargers for 69 of the 501 NEVI-funded sites announced so far, according to San Francisco-based research firm EVAdoption.
"I'm speaking to any NEVI sites they've been awarded."
"They're not going to move forward on those," Brendan Jones, CEO of Blink Charging, told Reuters.
Blink has received three inquiries in two states about multiple private sites where Tesla had backed out of since the layoffs, he said.
Rollout of the federal program has been already sluggish.
Long-awaited rules on eligibility for federal funds were finally laid out early last year.
Only a handful of federally funded charging stations have been opened up for the public.
PULLING THE PLUG
Since the layoffs, Musk in a posting on his social media platform X said Tesla plans "to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations."
He did not respond to questions from Reuters on the implications of his decision.
In a subsequent post on Friday, Musk said Tesla will spend more than $500 million to expand its fast-charging network this year.
A spokesperson for the federal Joint Office of Energy and Transportation, which oversees the NEVI program, said in an email it does not expect individual business decisions to impact EV charging projects funded by the government.
States that awarded Tesla NEVI sites are closely monitoring the situation.
Colorado will adjust its program as needed, said Kay Kelly, chief of innovative mobility for the Colorado Department of Transportation.
Texas - the biggest beneficiary of NEVI funds - said it does not anticipate any impact from Tesla's layoffs.
Tesla's change of plans, however, will affect the entire EV industry.
Almost all automakers decided last year to adopt Tesla's North American Charging Standard (NACS) for their vehicles from next year.
That could provide a silver lining for other charging startups - and recently laid-off Tesla employees.
"There will be a lot more NEVI sites available if Tesla backs out of projects they have already won, or withdraw their applications," Rick Wilmer, CEO of charging company ChargePoint, told Reuters.
"It will be an opportunity for others to jump in and fill that void."
Rivals like EVgo are looking to hire those let go by Musk.
"If you were impacted by the recent Tesla layoffs, we invite you to explore EVgo's diverse range of job openings," a talent acquisition manager at the charging company said in a post on LinkedIn.
Reporting by Abhirup Roy in San Francisco; Additional reporting by Jarrett Renshaw in Philadelphia; Editing by Peter Henderson, Matthew Lewis and Diane Craft
https://www.reuters.com/business/autos- ... 024-05-10/
"Tesla's EV charging team layoffs threaten to slow Biden's program to electrify highways"
By Abhirup Roy
May 10, 2024
SAN FRANCISCO, May 10 (Reuters) - Elon Musk's decision to gut Tesla's electric-vehicle charging team is scrambling plans for rolling out new fast-charging stations and may delay President Joe Biden's efforts to electrify U.S. highways.
Last year, the Biden administration announced rules for an ambitious plan to expand the country's charging infrastructure and jump-start EV adoption.
Under the National Electric Vehicle Infrastructure (NEVI) program, the government is doling out $5 billion to states over five years to build 500,000 EV chargers.
EV market leader Tesla, which also operates the largest network of fast chargers - called Superchargers - in the U.S. and is the biggest winner so far of those federal funds, was seen as a crucial part of that plan.
Since news of Tesla's abrupt EV charging layoffs surfaced, however, executives at charging companies say they have been receiving phone calls from landlords looking for a new partner for their private charging projects after Tesla pulled out.
Now, the charging companies are preparing for Tesla to pull out of the federal program.
That, they say, could throw a new wrench into an already-slow rollout.
"It's going to delay NEVI rollout."
"There's no question about it," said Aatish Patel, co-founder of XCharge North America, which makes EV chargers for fleets and charging station operators.
If Tesla backs out, then the solicitation by states for NEVI-funded charging projects starts over, he told Reuters.
"A lot of these sites aren't going to get built this year, or within the time frames that were initially dictated."
Patel said real estate companies representing about 10 non-NEVI sites in Texas, Louisiana and New York had called since news of the layoffs, saying that Tesla was pulling out and they were looking for a replacement.
Tesla has won awards to build chargers for 69 of the 501 NEVI-funded sites announced so far, according to San Francisco-based research firm EVAdoption.
"I'm speaking to any NEVI sites they've been awarded."
"They're not going to move forward on those," Brendan Jones, CEO of Blink Charging, told Reuters.
Blink has received three inquiries in two states about multiple private sites where Tesla had backed out of since the layoffs, he said.
Rollout of the federal program has been already sluggish.
Long-awaited rules on eligibility for federal funds were finally laid out early last year.
Only a handful of federally funded charging stations have been opened up for the public.
PULLING THE PLUG
Since the layoffs, Musk in a posting on his social media platform X said Tesla plans "to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations."
He did not respond to questions from Reuters on the implications of his decision.
In a subsequent post on Friday, Musk said Tesla will spend more than $500 million to expand its fast-charging network this year.
A spokesperson for the federal Joint Office of Energy and Transportation, which oversees the NEVI program, said in an email it does not expect individual business decisions to impact EV charging projects funded by the government.
States that awarded Tesla NEVI sites are closely monitoring the situation.
Colorado will adjust its program as needed, said Kay Kelly, chief of innovative mobility for the Colorado Department of Transportation.
Texas - the biggest beneficiary of NEVI funds - said it does not anticipate any impact from Tesla's layoffs.
Tesla's change of plans, however, will affect the entire EV industry.
Almost all automakers decided last year to adopt Tesla's North American Charging Standard (NACS) for their vehicles from next year.
That could provide a silver lining for other charging startups - and recently laid-off Tesla employees.
"There will be a lot more NEVI sites available if Tesla backs out of projects they have already won, or withdraw their applications," Rick Wilmer, CEO of charging company ChargePoint, told Reuters.
"It will be an opportunity for others to jump in and fill that void."
Rivals like EVgo are looking to hire those let go by Musk.
"If you were impacted by the recent Tesla layoffs, we invite you to explore EVgo's diverse range of job openings," a talent acquisition manager at the charging company said in a post on LinkedIn.
Reporting by Abhirup Roy in San Francisco; Additional reporting by Jarrett Renshaw in Philadelphia; Editing by Peter Henderson, Matthew Lewis and Diane Craft
https://www.reuters.com/business/autos- ... 024-05-10/