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Automakers have reported Q1 car sales and, well, it turns out that pricing definitely matters if you want to sell EVs. Who would have thought it? ONE recent survey with Edmunds reaches a similar conclusion (at least for American shoppers), finding a wide gap between what consumers want and what’s actually available on the market.
Here’s the bottom line. According to the Edmunds survey, 47% say they are looking to buy an EV under $40,000, and 22% are interested in electric vehicles priced under the $30,000 mark. Today, there are no new EVs under $30,000 and only four under the $40,000 mark. The average price of an EV in 2023 was $61,702, while all other vehicles were $47,450.
This reality mismatch is squeezing automakers as they try to move inventory by cutting prices. This downward pressure has forced automakers such as Passage to delay future EV launches and allocate more resources to hybrids. Even Teslaa leader in the EV world, fell well short of analyst expectations with deliveries down 20% from the fourth quarter of 2023. Meanwhile, the EV launched Rivian posted lukewarm results.
What is the answer? Well, at Tesla, it seems the solution is two-fold: drop prices again and try to earn revenue through sales of its $12,000 Full Self-Driving software, which is currently being offered on a one-month free trial to all customers.
Okay guys, let’s get to the rest of the news!
A little bird
Founders, investors, engineers, politicians and others tell us things. And we are here to convey the verifiable information that they little birds have shared with us.
This week, a little bird tipped us to close it Phantom autonomy, which had raised over $220 million and recently partnered with OpenAI. A few calls, emails and a new post on the company’s website confirmed the tip. About 100 people were affected.
As I noted in my article, Ghost has pivoted a few times since it was founded in 2017. When I asked founder and CEO John Hayes what happened, he said the company had completed a highway-driving product and was moving in urban environments through the described as “last mile delivery”.
“Ultimately, the years required to bring the product to market could not be funded,” he wrote to me in an email.
Do you have a tip for us? e-mail Kirsten Korosech at kirsten.korosec@techcrunch.com or Sean O’Kane sean.okane@techcrunch.com. If you prefer to remain anonymous, click here to contact uswhich includes SecureDrop (instructions here) and various encrypted messaging apps.
Offer of the week
Startup founders, listen up – a new fund just closed. Prepare your slide decks.
Manipthe Israel-based and now New York-based VC firm has raised a $140 million fund with plans to stick to its early-stage investment strategy of backing startups at the intersection of mobility, transportation and energy.
As I noted in my longer feature, the company’s approach has evolved a bit by expanding geographically and diversifying its investor base. The company has also largely stopped using the once-trendy umbrella term “mobility” (often leaving it out of its original name Maniv Mobility) and has chosen to talk about deep technology, decarbonisation and digitalisation of the transport sector. transportation.
Investors in the fund are no longer dominated by car manufacturers and Tier 1 suppliers. Instead, Maniv has opened up to a wider range of strategic and institutional financial investors, including BNP Paribas Personal Finance and the business arms of Shell and Enterprise Mobility.
The Maniv III fund also includes returning investors Valeo and Jaguar Land Rover InMotion Ventures. Toyota Motor Corp.’s Woven Capital, vehicle leasing company Arval, transportation infrastructure giant Ferrovial, industrial construction company ITT Inc., fleet payments business WEX and an unnamed European insurer also participated in the fund.
Other offers that caught my eye…
Alsym Energya Massachusetts-based startup developing non-flammable battery chemistry has raised $78 million in a Series C round led by General Catalyst and Tata, the Indian conglomerate, with participation from Drads Capital, Thomvest and Thrive Capital.
BlaBlaCarthe French carpooling and bus ticketing company, secured a €100m ($108m at today’s exchange rate) revolving credit facility.
Notable reads and other items
Autonomous vehicles
Waymo and Uber expanded to one ongoing collaboration that will affect Uber Eats customers in the Phoenix metro area. Now, when people order a burrito or a pizza or some other treat through Uber Eats, they can have their meals delivered by a Waymo vehicle. The tie-in will launch with select merchants in Chandler, Tempe and Mesa, including restaurants such as Princess Pita, Filiberto’s and BoSa Donuts.
Electric vehicles, charging & batteries
apple is laying off 614 employees in California after abandoning its electric car project. According to the WARN notice published by the California EDD, most of the affected workers worked in buildings related to the canceled auto project, while others worked at a next-generation display development facility, Bloomberg. mentionted.
Canoo finally reported 4th quarter and full year earnings. Tucked away in the regulatory filing is a nugget about the use of CEO Tony Aquila’s private jet — just one of many expenses that illustrates the gap between expenses and revenue at the EV startup. Tl;dr: Canoo spent twice its annual revenue on the CEO’s private jet in 2023.
Faraday Future narrowly avoided an eviction from its Los Angeles headquarters. The company reached an agreement with the building’s owner, Rexford Industrial, to remain on the premises as long as it meets certain conditions. If Faraday breaches any of the terms, Rexford has the right to trigger a 48-hour demand for payment and may initiate default if it does not pay. If Faraday Future makes its payments, it can stay in the building until September 2025, when the lease expires.
The National Road Safety Agency opened a third inquiry into Fischer’s Ocean SUV, this time focused on the problems with opening the doors.
Tesla is reportedly abandoning its plan to build a lower-cost EV believed to cost around $25,000, according to Reuters, despite this vehicle’s position as a pivotal product for the company’s overall development. Apparently, Tesla will focus on a planned robotaxi built on the same small EV platform that would also supposedly power the low-cost vehicle. This is where it gets a little silly. A few hours after the CEO of Tesla Elon Musk said Reuters was lying, posted on X that the Tesla robot taxi will be unveiled on August 8. Go figure.
This week’s wheels
This week’s wheels are taking a week off while I enjoy some vacation time. But don’t worry, he’s back next week and I’ve got a few vehicles lined up, including him Mercedes-Benz EQE 350 4Matic sedan, a Lexus LC500 hybrid and a Mercedes eSprinter. Additionally, some e-bikes will soon be in the mix.
What vehicles — including the two-wheeled variety — are you interested in reading about? I’ll put them on my list.
