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- #716 - 🚗 Phone Maps
#716 - 🚗 Phone Maps
Ferrari's EV, Leaving China, and A Crown Changes Hands
Chris reeves
June 20, 2024
TOGETHER WITH
Until Wednesday, it feels like we are working uphill, but on Thursday morning, the “scissors start to glide” through the wrapping paper of our week.
What gift is packaged in your week?
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BUSINESS
Groovin’ With The News
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We love including music in these emails. Sometimes it is hard to fit all the music we want to share in one email, so instead we made a playlist.
When we the last time you had a friend make you a mix tape?
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Ferrari's High-Voltage Dreams: "More Than A Feeling?"
Ferrari's first electric car, set to launch next year, will cost over €500,000 ($535,000). The luxury automaker's new plant in Maranello, Italy, will produce this model, potentially boosting production by a third.
The price reflects Ferrari's confidence in the ultra-wealthy market despite rivals reducing EV prices.
The plant will open on Friday, produce hybrids, and increase Ferrari's capacity to 20,000 cars annually. Ferrari is already developing a second EV model, so we guess they expect this one to do well among the “my 2nd house is an EV” consumer base.
Ferrari Says "Maps" Are So Yesterday
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Speaking of Ferrari…
The company is eliminating in-car navigation from some models, including the new Purosangue and 12Cilindri, acknowledging that smartphones provide superior mapping. Emanuele Carando, Ferrari's head of product marketing, emphasized that customers prefer phone-mirroring systems like Apple CarPlay and Android Auto.
It’s like grandma used to say: “If you make dope cars, don’t waste your time trying to launch GPS rockets to provide consumers with a continual real-time feed of their location on a little digital map.” Grandma was full of sayings like that.
This move aligns with a broader trend, as a McKinsey & Co. survey reveals that one-third of shoppers won't buy a vehicle without these smartphone applications.
Survey Highlights:
30,000 consumers in 15 countries surveyed
30% of EV shoppers and 35% of internal combustion engine (ICE) owners consider app compatibility essential
In the U.S., 25% of EV buyers and 38% of ICE shoppers share this sentiment
Surprisingly enough, the survey suggests that people who won't go to the restroom without their phone, also want it involved with their driving.
"Should I Stay or Should I Go?" – BofA Analyst Tells Detroit to Exit China
Opinions aren’t news, but sometimes an opinion is based on enough data that we call it an "insight." Words are weird.
Bank of America's top automotive analyst, John Murphy, advises General Motors, Ford Motor, and Stellantis to exit China due to intense competition from local automakers like BYD and Geely.
How has GM's market share changed?
GM's market share in China has dropped from 15% in 2015 to 8.6% last year.
What additional challenges do they face?
President Biden's quadrupled tariffs on China-made electric vehicles add to the geopolitical risks.
What is Murphy's strategic recommendation?
Murphy suggests focusing on core products and profitable regions instead.
How is Tesla different?
Tesla has a $17,000 cost advantage in EV components.
China’s "Electric Avenue" vs. US and EU Glass Ceiling
The global electric vehicle market is expanding, but like pronouncing “caramel", growth varies by region.
China:
31% year-over-year increase from January to May
36% increase in May alone
Holds over 50% of the global plug-in market share
Europe:
4% year-over-year increase
9% decrease in May
New tariffs on Chinese EVs up to 38.1%
North America:
5% year-over-year increase
3% decrease in May
Quadrupled tariffs on Chinese EVs to 100%
Imported EVs no longer qualify for $7,500 federal tax credit
Tariffs and economic challenges are affecting growth in Europe and North America, while China continues to lead in EV expansion.
For real tho, is it Care-a-mel, Car-Mull, Kar-ah-mal. Send help.
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Do you prefer using your smartphone's navigation over built-in car navigation systems? |
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AROUND THE ASOTU-VERSE
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CULTURE
Nvidia Crowned as Most Valuable Company
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Sorry, Microsoft, Nvidia just became the most valuable company in the US, thanks to its high-demand AI chips.
Nvidia's chips are crucial for creating text, images, and audio for AI systems. This demand tripled their revenue, hitting $26 billion in the latest quarter.
How Did They Do It?
Nvidia's stock value tripled over the past year, reaching $3 trillion. To make it more accessible, they split shares 10-for-1.
A Bit of History:
The last time this happened was with Cisco during the dot-com boom. CEO Jensen Huang calls AI the new industrial revolution, with Nvidia at its heart.
Nvidia's rise highlights its pivotal role in AI, though some warn of a potential bubble.
Quick Hits
History
1782: The U.S. Congress adopts the Great Seal of the United States. 🦅
1903: Tom Fetch begins SF to NYC trip in a Packard 🏁
1975: The first summer blockbuster film, Jaws, premiered. 🦈
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