#715 - 🚗 Making An Impact

Farewells, Mid-June Data, and Grid Grind

Author

Chris reeves
June 19, 2024

TOGETHER WITH

Wednesday!

Seems as good a day as any to revisit our definition of a “good day.” Maybe it’s a good balance of work, recreation, and family. Maybe it’s learning something new. Maybe it’s making it through the day without drinking too much coffee (if there is such a thing).

Whatever it means to you, we hope you have a good day today, and we hope you’ll tell us all about it sometime.

Keep Pushing Back
-Paul, Kyle, Chris & Kristi

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BUSINESS

News: Farewell Fisker?

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Today's email covers Fisker's financial struggles, Toyota's boardroom dynamics, and the latest plans from GM, Wuling, and BYD for electric vehicles. Then we will meet the newest member of the robo-drivers you may be sharing the road with soon: Semi trucks (hooray?)

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Fisker Files for Bankruptcy

Electric vehicle maker Fisker has filed for Chapter 11 bankruptcy protection, citing market and economic challenges. The California-based company, founded by designer Henrik Fisker, listed assets between $500 million and $1 billion and liabilities between $100 million and $500 million, with up to 999 creditors.

Despite efforts to compete with industry leaders like Tesla, Fisker struggled due to slow EV sales and rising inflation. The company will pursue asset sales under Chapter 11. Fisker Inc. and some subsidiaries are not included in the filing, and the company is in talks for financing and asset sales.

Toyota Shareholders Re-elect Toyoda

Yesterday, we reported that Toyota shareholders were considering kicking Toyoda to the curb, but their coup was short-lived. Despite governance concerns and certification test scandals, Toyota Chairman Akio Toyoda and nine other board members were re-elected at the annual general meeting, securing support due to record business results and firm investor backing.

GM, Wuling, and BYD: Future Plans for Electric Vehicles

  • GM's Wuling: SAIC-GM-Wuling unveiled teaser images of the new Starlight S electric SUV, set to compete with BYD and Tesla. Priced around $9,700, this compact SUV follows the successful Starlight sedan. It features a 201 hp electric motor and an LFP battery pack.

  • BYD: Chinese EV giant BYD accounted for over 40% of German EV imports through April 2024, despite new EU tariffs looming. BYD's market share increased even as imports declined slightly, demonstrating resilience in the European market. The company faces additional tariffs but continues to maintain strong profitability.

  • Tesla: Tesla's RWD Model Y, priced at $35,500, remains a crucial competitor in the Chinese market. However, the Starlight S and BYD models offer more affordable alternatives, challenging Tesla's dominance.

Waabi Secures $200M in Series B Funding

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Autonomous trucking startup Waabi raised $200 million in a Series B funding round led by Uber and Khosla Ventures, with new investments from Nvidia, Porsche, and Volvo's venture arm. The Toronto-based company plans to launch fully driverless trucks by 2025 and extend its generative AI technology to humanoid and warehouse robots.

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Which of today's stories will have the most significant impact on the industry?

Try to resist the urge to make a "robo-truck IMPACTING the walls of their training course" if you can.   

TOGETHER WITH ACTIVATOR

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Click the image to register now!

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/MTCM

Wanna honor somebody on your team for the way they serve your community with their heart, mind, or hands? Send their story our way, and we will feature them in a future email.

DATA & INSIGHT

Cox Data on the First Half of June

Data is like the weather in [insert your home town here]: if you don’t like it, wait five minutes. Here is some Cox data from the first half of the month.

  • Price Decline: Wholesale used-vehicle prices fell by 0.3% from May in the first 15 days of June. The Manheim Used Vehicle Value Index dropped to 196.8, down 8.5% year-over-year. Non-adjusted prices fell 1.6% from May and 9.5% year-over-year.

  • Segment Performance: All major segments saw year-over-year price declines, with pickups performing best with a 7.5% drop and compact the worst with an 11.2% drop. SUVs, compact cars, and midsize cars showed slight monthly increases.

  • Electric Vehicles: EV prices fell 17.0% year-over-year and 7.1% from May, while non-EV prices decreased by 8.9% year-over-year but rose 0.4% from May.

  • Supply Levels: Wholesale supply remained flat at 26 days from May to mid-June, aligning with long-term levels.

Consumer Sentiment Down in June

  • Consumer Sentiment: The University of Michigan's June reading showed a 5.1% decline to 65.6, the lowest since June 2023, with vehicle buying conditions at their lowest since November 2022.

CULTURE

It’s Getting Hot, Will the Grid Hold Up?

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Contrary to popular belief, EVs won't overload the US electric grid, even during peak summer demand. That's a bold claim, so let's look at the data (somebody more sciency than us collected) to back it up.

Upgrades are Outpacing Increases
Projections suggest power consumption will only increase by about 15-20%. So, some utilities are investing heavily in grid upgrades, with $168 billion spent in 2023 alone.

Wind, Solar, Battery
Renewable Energy is becoming more affordable, efficient, and common by the day. Coupled with Bidirectional charging, EVs may actually benefit the grid during peak hours.

Yeah, it is Hot, but it’s the Cold that Gets Ya.
Future grid demand is expected to peak in winter due to increased electric heating, shifting pressure away from the summer months.

Tech Solves Tech Problems
The answer seems to be more mindful consumption or technology to mitigate the issue. So luckily, businesses, scientists, and government entities are working on technology to mitigate the issue as we speak.

Hey, if the need for power increases, somebody will develop a way to sell it. Even AC DC got in on the high-voltage business for a bit.

Quick Hits

  • Satellites orbiting the earth can actually help predict when earthquakes, way down under the earth, will strike. 🛰️ 

  • As renewable energy floods the grid, electricity prices in France have turned negative (as in using it costs less than 0). ⚡️ 

  • Google’s AI efforts are a story about not letting mistakes stop you (even when maybe you should indeed stop). 🤖 

History

  • 1846: The first official game of baseball is played in Hoboken, New Jersey. ⚾️ 

  • 1911: The General Motors Export Company is founded in order to handle international sales of GM products. 🚢 

  • 1978: The first Garfield comic strip appears in 41 US newspapers. 😼 

Thanks for reading, friend! I hope you enjoy this curated tour through the day’s news. One of the things I like to do when digging down into a story is leave all the naysaying, doom-glooming, and know-it-all right where I found it so you can read some news that won’t insist you have a bad day. What’s the point of that?