Climate Money Work: Special EV Edition

Welcome to Climate Money Work, a weekly newsletter that connects revenue generation with sustainable business solutions. Discover how companies worldwide are showcasing innovative practices, creating value from sustainability, increasing revenue, and improving customer experiences. Send questions, feedback, and pitches to [email protected], or just hit reply. Meantime, enjoy our Special Electric Vehicles Edition.

Safety Concerns Mount: Tesla Faces Probe Over Autopilot System

Federal highway safety investigators are asking Tesla for a clear view on the development of a fix implemented in a recall affecting over 2 million vehicles with the Autopilot system. Concerns lie in the remedy's effectiveness, with Tesla reporting 20 crashes post-implementation.

The recall aims  to enhance safety, but  there are still questions about adequacy of driver warnings, prompting further evaluation by the U.S. National Highway Traffic Safety Administration. The agency's careful examination highlights continued worries about how automated driving systems are created and used. This points to the likelihood of further discussions about how technology and human actions affect how safe our vehicles are.

Sources:

• US seeks information from Tesla on how it developed and verified whether Autopilot recall worked | AP News

Behind the Numbers

Lucid Quarterly Loss 

Lucid, the electric vehicle maker, unveiled mixed first quarter results this week, with a wider-than-expected loss despite rolling out its Gravity SUV's 2024 debut. Revenue surpassed expectations at $172.7 million, up nearly 16% from a year ago, the loss per share of $0.30 and adjusted EBITDA loss of $598.4 million missed estimates.

Despite lower vehicle production and higher deliveries compared to the previous quarter, investors were encouraged by rising delivery numbers. Lucid's recent EV price cuts likely boosted sales, amid growing concerns about their impact on margins,

Source:

• Lucid stock down on Q1 loss, confirms Gravity SUV on track for 'late 2024' launch (yahoo.com)

Material Matters: Could EV Tax Credit Extension Be the Break EVs Need

We’ve reported on the challenges electric vehicle makers are facing, including consumer preference and cost. They might just be catching a break.

The Biden administration extended tax credits for EVs allowing consumers to receive up to $7,500 for cars containing Chinese graphite until 2026, providing a two-year reprieve before tighter supply-chain requirements kick in. This adjustment offers car manufacturers a smoother path to produce and sell vehicles eligible for the full tax credit. John Podesta, White House clean-energy adviser, said this brings certainty and clarity to a rapidly growing marketplace. However, Senator Joe Manchin criticized the extension, arguing it delays domestic investment while benefiting foreign adversaries like China and Russia.

Automakers are revisiting supply chains in hopes of complying with requirements and qualifying for the tax credit, including focusing on battery and mineral sourcing.

Sources:

• EV Makers Get Two-Year Reprieve on Tax-Credit Restrictions - WSJ

Charging Ahead: The Battle for EV Supremacy

As EVs rise in prominence globally, they've become a focal point of intense commercial rivalry and national security apprehensions between the world's two largest economies. China's thriving EV sector, centered in its Silicon Valley equivalent, is spearheading the nation's quest for dominance in the lucrative global market, with companies like BYD challenging Western automakers like Tesla. Despite Chinese EVs' technological edge and lower prices, barriers persist in the U.S., fueling concerns about market dynamics and potential trade conflicts.

Sources:

• China’s booming electric vehicle companies eye U.S. competitors they see as ‘not ready’ (nbcnews.com)

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