Welcome back to The Station, your central hub for all past, present, and future means of moving people and packages from Point A to Point B. I’ll be your host for one more week while Kirsten Korosec is away. Let’s jump right into the latest developments in the world of autonomous vehicles and micromobility.
1. Introduction
The race to regulate autonomous vehicles on a larger scale has led to significant developments in the industry. The National Highway Traffic Safety Administration (NHTSA) plans to announce new rule-making in September that could benefit AV companies like Cruise and Zoox, both of which have plans to launch purpose-built robotaxis without traditional controls. General Motors, the owner of Cruise, is awaiting an answer on its petition to deploy thousands of Cruise Origins annually without human controls.
At the congressional level, lawmakers are hosting a hearing aimed at reviving long-delayed legislation on the safe and regulated adoption of self-driving cars. The hearing will address separate draft legislation from Representatives Bob Latta and Debbie Dingell, and it emphasizes the importance of outpacing China in the autonomous vehicle industry.
2. National Highway Traffic Safety Administration’s New Rule-Making
The NHTSA’s upcoming rule-making has caught the attention of AV companies like Cruise and Zoox. Both companies are looking to launch purpose-built robotaxis that eliminate the need for steering wheels or pedals, taking a step closer to full autonomy. General Motors, the parent company of Cruise, is keenly awaiting a decision on its petition to deploy up to 2,500 Cruise Origins annually without any human controls.
3. Congressional Hearing on Safe Adoption of Self-Driving Cars
Lawmakers are gearing up for a critical hearing on the safe adoption of self-driving cars. The long-delayed legislation aims to address concerns and provide a regulatory framework for the widespread use of autonomous vehicles. Representatives Bob Latta and Debbie Dingell have each put forth draft legislation, and the hearing will be convened by a House subcommittee titled “Self-Driving Vehicle Legislative Framework: Enhancing Safety, Improving Lives and Mobility, and Beating China.” The reference to beating China underscores the competitive nature of the industry and the quest for global dominance in autonomous vehicle technology.
4. Highlight on Tesla’s Stock Price and Margins
In the automotive industry, Tesla’s stock has recently taken a hit, dropping about 10% since the company reported its Q2 earnings. This has raised questions about why Tesla is often perceived as a tech company despite its automotive nature. The article delves into the margins and financial aspects of Tesla, shedding light on the reasons behind its stock fluctuations.
5. VanMoof’s Bankruptcy
The article discusses some grim news from VanMoof, a venture-backed e-bike company that has filed for bankruptcy. The company’s unique digital unlock key, connected to VanMoof’s servers, and its highly customized parts were not enough to prevent this outcome. The article investigates the reasons behind VanMoof’s financial troubles, such as over-ordering and marketing expenses, while neglecting supply chain and unit costs.
6. Micromobility News
Apart from the AV industry, there have been significant developments in the micromobility sector. London-based HumanForest has introduced Forest Parcel, a zero-emission, on-demand parcel-delivery service, emphasizing the growing trend toward sustainable transportation solutions. Additionally, Taur, a front-facing scooter manufacturer, has launched its second model, the Taur II, with an impressive range of up to 40 miles. Furthermore, Taur has started a campaign challenging the U.K. government’s stance on owned scooters, promising to reimburse customers for fines related to riding on U.K. roads.
7. Commsignia’s V2X Device for Micromobility Vehicles
Safety is a crucial factor in micromobility, and Commsignia has taken a significant step in this direction by launching a V2X device for e-bikes and micromobility vehicles. The device broadcasts messages about the cyclist’s position and direction to other road users while also receiving messages from other vehicles, alerting the rider to potential hazards.
8. Aurora’s Stock Sale and Financial Situation
Aurora Innovation, a company focusing on autonomous vehicles, has made headlines by selling $820 million worth of stock. The sale included a mix of public and private offerings, boosting the company’s capital and financial prospects. Aurora has been working hard to commercialize self-driving trucks by the end of 2024, making this funding crucial for its future endeavors.
9. Notable Deals in the EV and Micromobility Space
The electric vehicle industry has seen various deals and investments worth noting. Alpha Grid, an EV charging deployment optimization startup, raised a significant $2.5 million in pre-seed funding, showing the increasing interest in EV charging infrastructure. Meanwhile, Aqua Metals, a lithium-ion battery recycling company, has entered into a strategic partnership with Yulho, a battery materials company in South Korea, securing a $5 million equity investment.
Cycle, a Berlin-based e-bike subscription model startup, secured $11.3 million in Series A funding to expand its last-mile delivery service. EVgo, a fast-charging network, received $13.8 million in funding from Ohio’s DOT to deploy 20 fast-charging stations. Farizon, Geely’s electric and hybrid truck unit, raised an impressive $600 million to expand its operations outside of China. Fortescue Future Industries, a green energy and metals company, acquired EV truck maker Nikola’s Phoenix Hydrogen Hub project for $24 million.
Furthermore, Singapore’s Grab, the ride-hailing and food delivery company, will acquire Trans-Cab, one of Singapore’s largest taxi operators. Leverage, a New York-based supply chain and visibility startup, raised $7 million in a funding round led by Chicago Ventures.
Lastly, auto supplier Magna announced a massive $790 million investment to build three new supplier facilities in Tennessee, including two onsite at Ford’s BlueOval City. Indonesia’s Maka Motors raised $37.6 million in seed funding to mass-produce its two-wheeled EVs, aiming to deploy its first pilot EVs this month and start volume production in late 2024. Redwood Materials, the battery recycling startup founded by Tesla co-founder J.B. Straubel, is reportedly in talks to raise $700 million at a $5 billion valuation, though the company has not confirmed these reports. Finally, Hong Kong’s Rice Robotics raised $7 million in additional seed funding for its delivery robot startup, attracting investments from Alibaba Entrepreneurs Fund, Soul Capital, Audacy Ventures, and others. Truckstop was acquired by FreightFriend, a platform for capacity and freight management tools.
10. Earnings Updates from Carvana and Tesla
Carvana, the online used car retailer, reported higher-than-expected earnings of $2.96 billion in Q2, with adjusted EBITDA totaling $155 million. The company sold slightly fewer cars than analysts expected, but it announced plans to reduce its outstanding debt by over $1.2 billion. As part of this debt restructuring, Carvana may also sell up to $350 million in new stock.
Meanwhile, Tesla achieved $25 billion in revenue in Q2, slightly beating Wall Street estimates. However, Tesla’s stock experienced a slide of around 10% in response to the company’s automotive gross margins, which dropped to about 18% compared to 25% a year ago. The article explores the reasons behind this drop and the impact on Tesla’s stock price.
11. Latest News in the Electric Vehicle Industry
The electric vehicle industry has been bustling with developments. Ford recently reduced the price of its F-150 Lightning by up to $10,000, citing manufacturing efficiencies as the cause. However, Ford is now facing questions from House Republicans regarding its battery cell technology deal with China’s CATL in its upcoming $3.5 billion battery cell plant in Michigan.
General Motors is experiencing downtime at its CAMI plant in Canada, which builds the BrightDrop commercial EVs, to address parts-availability issues. The downtime will not impact GM’s overall EV production targets for North America.
The article also touches on the Kia Boys, a group that went viral on TikTok for stealing Kias using a USB cord. The article discusses a 14-year-old Texas boy who has been linked to nearly 40 thefts.
Additionally, the NHTSA has opened its third special investigation into a Tesla crash this year, this time related to a fatal crash involving a 2018 Model 3 and its Autopilot system.
In terms of charging standards, Nissan has joined the ranks of automakers adopting Tesla’s NACS charging standard for its Ariya and future EV models.
Rivian’s EV facility production plans in Georgia received the green light from the state’s Supreme Court, allowing the startup to proceed with its plans after addressing a challenge to the validity of tax breaks it expects to receive.
Stellantis, the automaker, has signed $11.2 billion worth of contracts through 2030 to secure semiconductors needed for its EVs and high-performance computing functions.
India’s Tata Motors announced plans to build a 40 GWh battery cell gigafactory in the United Kingdom, making a substantial investment of over $5.16 billion to deliver batteries for JLR and Tata Motors, with supplies starting in 2026.
Vietnam’s VinFast is moving forward with its electric vehicle factory in North Carolina, investing $4 billion to reach a capacity of 150,000 vehicles per year.
Volkswagen’s Knoxville Innovation Hub has published research breakthroughs to increase EV range and recycle vehicle materials, including a wireless EV charging concept.
12. TeslaCrunch: Tesla’s Q2 Earnings and Updates
Tesla made headlines recently with its Q2 earnings call. Elon Musk confirmed that Tesla was in talks with a major OEM to license its FSD (Full Self-Driving) software and hardware to them. FSD is Tesla’s advanced driver assistance system, and Musk’s statement stirred interest in its licensing potential. Tesla also introduced an in-app charging option for users with home solar and a Powerwall charger, allowing them to exclusively charge their vehicles with excess solar energy.
The automaker showcased its first Cybertruck built at Giga Texas, attracting considerable attention and excitement. However, some specifics, such as production capacity and price, were not addressed during the earnings call, leaving enthusiasts curious for more details.
Outside the U.S., Tesla is looking to expand its German factory, but residents are seeking assurances regarding water use, biodiversity protection, and environmental impact.
In addition to these developments, Tesla directors, including Elon Musk, are set to pay back $735 million to the company as part of a settlement with shareholders, who claimed excessive compensation for the directors. As part of the settlement, the directors have also agreed not to receive compensation for 2021, 2022, and 2023.
13. Miscellaneous News and Developments
ByteDance’s Douyin, the Chinese version of TikTok, has entered the food delivery market, highlighting the continued convergence of tech and food industries. This move comes as food delivery giant Meituan decided to add more video features to its app, creating an interesting development in the Chinese market.
In the U.S., policymakers have introduced a bill aimed at increasing fuel taxes for private jet travel from $0.22 to $1.95 per gallon. The bill also seeks to remove existing fuel tax exemptions for logging and oil or gas exploration. The revenue generated by this FATCAT Act would be allocated to a fund supporting air monitoring for environmental justice communities.
Spotify is enhancing its experience for Tesla users, providing features like QR codes for easy log-in, access to audiobooks, and one-touch jumps to artists and album pages.
Uber Freight has laid off almost 50 brokerage employees as part of its restructuring efforts.
14. People and Hires in the EV Industry
Archer, an EVTOL startup, has brought on Nikhil Goel, co-founder of Uber Elevate, as its Chief Commercial Officer. This follows the recent addition of former FAA administrator Billy Nolen to the team, as Archer continues to build a strong workforce in the EVTOL sector.
15. Ride-Hail and InDrive’s New Bid-Based Ride-Hail App
InDrive, a bid-based ride-hail app, has launched its services in Miami, marking its first entry into the U.S. market. The app allows customers to name their own fare, and nearby drivers have the option to accept, decline, or counter the offer, introducing a unique approach to ride-hailing pricing.
Meanwhile, Revel, a Brooklyn-based startup, has made waves with its shared e-mopeds, EV charging hubs, and employee-only ride-hail service. The company has hired over 1,000 New Yorkers as employee drivers in Q2.
Conclusion
The world of autonomous vehicles and micromobility is witnessing a surge in regulatory developments, financial ups and downs, and exciting innovations. From the NHTSA’s new rule-making to VanMoof’s bankruptcy and Aurora’s stock sale, there’s no shortage of fascinating news in the industry. Additionally, the earnings updates from Carvana and Tesla offer insights into the current state of the automotive market.
As we continue to witness breakthroughs in the electric vehicle industry and witness the ongoing journey of Tesla, the EV space remains one of the most dynamic and transformative sectors in modern transportation.
FAQs
1. Are Cruise and Zoox fully autonomous vehicle companies?
Cruise and Zoox are companies in the autonomous vehicle industry, but they are not fully autonomous yet. They have plans to launch purpose-built robotaxis that lack traditional controls like steering wheels and pedals, but these vehicles still operate with advanced driver assistance systems.
2. Why did VanMoof file for bankruptcy despite significant venture backing?
VanMoof faced financial troubles due to over-ordering and substantial marketing expenses without adequate consideration of supply chain and unit costs. The company’s decision-making in these areas contributed to its bankruptcy.
3. What is FSD software, and why is it being considered for licensing?
FSD stands for Full Self-Driving, which is Tesla’s advanced driver assistance system. Elon Musk has confirmed that Tesla is in talks with a major OEM to license its FSD software and hardware, indicating potential licensing opportunities for other companies interested in autonomous technology.
4. How has Tesla’s stock price been affected recently?
Tesla’s stock price has experienced a decline of about 10% since the company reported its Q2 earnings. This drop was likely due to concerns about Tesla’s automotive gross margins, which slid to around 18% compared to 25% a year ago.
5. What are the challenges faced by micromobility companies like Taur in the U.K.?
Micromobility companies like Taur face challenges in the U.K. due to the current legal restrictions on owning scooters. While there are shared scooter pilots, owned scooters are still illegal to ride on public roads. Companies like Taur are advocating for changes to these regulations and offering reimbursement for fines incurred by their customers while riding on U.K. roads.
