Amazon, Tesla, Rivian & Aurora: Latest Tech & EV News
The Station: A Weekly Transportation Newsletter
Greetings, readers! Welcome to The Station, your dedicated source for news concerning the evolution of transportation – encompassing all methods of moving both people and goods. Wishing you a Happy Halloween!
Tesla's Market Valuation and FSD Concerns
The past week has been remarkably eventful in the transportation sector. It began with Tesla achieving a trillion-dollar market capitalization, spurred by Hertz’s announcement of a 100,000-unit order for its electric vehicles.
Simultaneously, the debate surrounding Tesla’s Full Self-Driving (FSD) software beta continues to unfold. Jennifer Homendy, Chairwoman of the National Transportation Safety Board, has formally requested that Tesla modify the design of its advanced driver-assistance system.
This request, detailed in a letter addressed to CEO Elon Musk, aims to prevent driver misuse of the technology.
Will Tesla Owners Reconsider?
The FSD controversy shows no signs of abating. A key question arises: will Tesla owners, particularly those who invested in FSD early on, begin to question Musk and the company’s direction?
Musk’s recent statements are unlikely to be well-received by this group. He confirmed that Tesla vehicles equipped with Autopilot 2.0 will require a camera upgrade before their owners can access the FSD beta software, despite having already purchased the feature.
However, it’s possible these owners will willingly schedule the necessary upgrade. What are your predictions for how this situation will resolve?
Vehicle Comparison: Jeep Wrangler 4XE vs. Mercedes-Benz EQS580
This week, I transitioned from testing a Jeep Wrangler 4XE Unlimited Sahara plug-in hybrid to the all-electric Mercedes-Benz EQS580 4MATIC. These vehicles, provided for a week-long evaluation, represent vastly different approaches to automotive engineering.
Reflecting on my experiences with electric vehicles over the last six years, the advancements – and areas still needing improvement – are quite striking. A more detailed analysis of both vehicles will be forthcoming.
Stay Connected
Feel free to reach out with your thoughts, feedback, or insights. You can email me at kirsten.korosec@techcrunch.com or connect via Twitter — @kirstenkorosec.
Micromobility Developments
Recent noteworthy happenings in the micromobility sector emerged from the North American Bikeshare and Scootershare Alliance (NABSA) annual conference. A key discussion point was the introduction of seven principles designed to govern the responsible use of rider data. These guidelines, developed collaboratively by mobility companies – including Uber, Lyft, Spin, Bird, and Lime – alongside cities and other stakeholders, initiate a crucial conversation regarding data privacy for both urban authorities and service providers.
Updates from Micromobility Operators
Spin and TransLoc, a transportation technology and software company, have formalized a five-year partnership with the University of California San Diego. This collaboration aims to optimize mobility for the university’s 75,000 students and staff. Spin will expand its campus presence with 600 e-bikes and e-scooters, alongside a network of Spin Hub charging stations.
These charging stations will be seamlessly integrated with TransLoc’s existing transit software. Furthermore, TransLoc will manage the university’s shuttle buses and electric carts, providing on-demand transportation services starting next year.
Bird, also serving UCSD students, has announced an enhancement to its scooter design. The operator is increasing the size of the footboards on its Bird Three scooters to a more substantial 25 inches, asserting that this improvement will lead to a more stable and comfortable riding experience.
A new integration allows Bird users to access the Moovit transit planning application in 65 cities across 12 countries. This feature displays the availability of nearby Bird vehicles, including walking distances and battery charge levels, alongside Spin and Lime options.
Anticipation is building for Bird’s upcoming initial public offering (IPO) via a Special Purpose Acquisition Company (SPAC). A shareholder vote to approve the deal is scheduled for November 2nd, with the first Q3 earnings call planned for November 15th.
Cake, a Swedish manufacturer of electric motorbikes, is opening its first physical retail location. Dubbed the CAKEsite, this space will function as a showroom, retail outlet, test ride center, and service facility. Located in Stockholm, it represents the first of 25 planned sites across North America and Europe by 2025.
Successful City-Level Micromobility Initiatives
The Miami Riders Alliance reports that its e-scooter program has facilitated over 1.2 million rides in 2021. The program is projected to surpass the previous record of 1.3 million rides from 2019 before the end of November.
The pilot program has generated more than $3 million in revenue for the city, funds that are being allocated to the construction of new protected bike lanes downtown.
Wellington, New Zealand is considering converting a second Mt Victoria tunnel into a dedicated pathway for pedestrians and cyclists as part of its $6.4 billion transport package. This proposal represents a significant shift in a city traditionally focused on automobile transportation.
Plans also include the addition of a dedicated bus priority lane, which would enhance non-car transit options for residents of the eastern suburbs.
Paris is committed to becoming fully cyclable by 2026 and intends to invest $291 million in expanding its protected bike lane network by 180 miles. The city also plans to add 180,000 new bike parking spaces, remove 70,000 on-street car parking spaces, support businesses in adopting cargo bikes, and educate schoolchildren about safe cycling practices.
Lyft, in partnership with D.C. Mayor Muriel Bowser, is offering free 30-day Capital Bikeshare memberships to all D.C. residents. This initiative aims to mitigate travel disruptions caused by reduced Metrorail service, effectively integrating micromobility into the public transit system.
Investment and Funding in Micromobility
Tier Mobility has secured $200 million in funding as the “first close” of its Series D round, with plans to raise additional capital. The company anticipates a full round comprised of both debt and equity financing.
Rad Power Bikes, a manufacturer of fat tire e-bikes, has raised $154 million in Series D funding from existing investors, bringing its total funding to $329 million. These funds will be used to support technological and product innovation, expand distribution centers, and strengthen its supply chain.
New Product Launches
E-bike manufacturer Tenways has launched its inaugural model, the CGO 600, on Indiegogo with a price of $1,400. Designed for urban environments, it features a lightweight frame and a 250W motor for tackling hills. Despite being available on Indiegogo, the company asserts that production is already underway.
Serial 1, the electric bike brand from Harley Davidson, has unveiled its second single-edition e-bike, the MOSH/BMX. The bike will be auctioned, with bidding closing on Tuesday, November 2nd at 5pm MDT.
Future Motion is releasing two new Onewheel models: the GT and the Pint X. The GT is the company’s new flagship model, offering increased power, torque, and performance, with 3hp and a range of up to 32 miles. Pre-orders are being accepted, with shipping scheduled for January at a price of $2,200.
The Pint X is a more compact model, providing 18 miles of range and a top speed of 18 mph, priced at $1,400 and available for immediate shipment.
E-bike and e-scooter manufacturer Okai is introducing the Beetle EA10 seated electric scooter and the Neon ES20 portable, smart street scooter, catering to diverse user needs. The Beetle features a cushioned seat and shock absorbers, reaching a top speed of 16 mph. The Neon boasts a one-click folding design, customizable neon lights, and a range of 25 miles.
— Rebecca Bellan
Recent Investment Activity in the Automotive and Technology Sectors
A noteworthy development this week involves a revised understanding of Rivian’s relationship with Amazon, revealing the extent of the latter’s stake in the electric vehicle manufacturer.
Amazon has publicly stated its ownership of a 20% equity share in Rivian. This represents a significant investment!
Regulatory filings indicate that Amazon’s holdings in Rivian, as of September 30th, encompass preferred stock valued at approximately $3.8 billion. This figure demonstrates an increase from the $2.7 billion valuation recorded on December 31st, 2020.
Rivian’s initial public offering documentation reveals Amazon’s total investment in the company to be $1.345 billion. Furthermore, Amazon recently acquired $490 million in convertible notes, which will be exchanged for Class A shares following the IPO, contingent upon specific pricing conditions.
This situation suggests potential gains for Amazon should Rivian’s IPO prove successful. While operating as an independent entity, Rivian remains significantly influenced by Amazon’s investment and its role as a major customer. Amazon is anticipated to leverage this position.
Additional investment highlights from the past week …
Amazon further utilized its $2 billion climate fund, investing in Resilient Power and CMC Machinery for advancements in fast-charging technology. Additional capital was also allocated to Infinium, a company focused on renewable fuel technologies, which Amazon had previously supported.
Arc, a relatively new startup aiming to electrify marine transportation, has secured funding from a diverse group of investors. These include funds associated with Will Smith’s Dreamers VC, Kevin Durant and Rich Kleiman’s Thirty Five Ventures, and Sean “Diddy” Combs’ Combs Enterprises. This strategic investment round brings Arc’s total funding to over $7 million. Andreessen Horowitz previously led the company’s seed funding, with contributions from Chris Sacca’s Lowercarbon Capital and Ramtin Nami’s Abstract Ventures.
Aurora, an autonomous vehicle technology company preparing for a Nasdaq debut in November, has acquired Colrspace, a small computer graphics imagery startup operating in stealth mode. Aurora believes Colrspace’s technology, developed by former Pixar employees, will enhance its computer simulation tools used for testing and training self-driving systems. The acquisition also includes Colrspace’s intellectual property, combining CGI and machine learning.
Autochek, an automotive company operating in Africa, secured $13.1 million in a seed funding round. The round was led by pan-African venture capital firms TLcom Capital and 4DX Ventures, with participation from existing investors and new backers including ASK Capital and Mobility 54 Investment SAS, Toyota Tsusho and CFAO Group’s venture capital arm.
Autofleet, an Israel-based vehicle-as-a-service platform, experienced a productive week. The company raised $20 million in Series B funding, led by Keyframe Capital and including participation from Goodyear, Mizmaa Ventures, Maniv Mobility, and Next Gear Ventures. Autofleet also established a partnership with Fujitsu, which made a strategic investment through its corporate venture capital fund.
ClearFlame Engine Technologies completed a $17 million Series A funding round, led by Breakthrough Energy Ventures, with participation from Mercuria, John Deere, and Clean Energy Ventures.
Gringo, a Brazilian startup offering a driver support application, raised $8 million in a new funding round led by Kaszek, with participation from GFC and OneVC. Kaszek also led the company’s seed round in 2020, bringing the total funding to $10 million since its founding in 2019.
Hyundai Motor Group has made an undisclosed strategic investment in Factorial, a solid-state battery technology startup. Hyundai and Kia are also collaborating with Factorial to integrate its technology at various levels, from cell to system, and co-develop manufacturing specifications.
NI has acquired NH Research, a provider of test instruments and systems for industries including electric vehicles and batteries. The transaction closed on October 19, 2021. NI has also agreed to acquire the EV Systems business of Heinzinger GmbH, a European company specializing in high-current and high-voltage power systems, with the deal expected to finalize in Q1 2022.
ProLogium Technology Co., a Taiwanese battery manufacturer, secured $326 million in funding from dGav Capital, Primavera Capital Group, and SB China Venture Capital, as reported by Bloomberg.
Skyryse raised $200 million in a Series B round led by Fidelity Management & Research Company and Monashee Investment Management, with additional investment from ArrowMark Partners, Republic Capital, Raptor Group, Infinite Capital, Embedded Ventures, Fortistar, K3 Ventures, Rosecliff, SV Pacific Ventures, Laurence Tosi, and Dmitry Balyasny. This brings the startup’s total funding to $250 million.
Smart Eye, a supplier of driver monitoring systems, agreed to acquire iMotions, a human behavior software company, for $46.6 million, following its recent acquisition of emotion-detection software startup Affectiva.
Tactile Mobility, an Israeli startup leveraging vehicle sensor data for road and vehicle insights, raised $27 million in a Series C round led by Delek Motors, with strategic investments from Goodyear Ventures and Porsche Ventures, and support from Union Group, The Group Ventures, Zvi Neta, and Doron Livnat.
Vertical Aerospace secured $205 million in additional financing to support the scaling of production and certification for its electric vertical take-off and landing (eVTOL) aircraft. Mudrick Capital Management will invest $200 million through convertible senior secured notes, with an additional $5 million from Kouras SA.
Xeal, an EV charging startup, announced a $11 million Series A funding round and disclosed a previously unannounced $3 million seed round. The Series A included investors from climate tech and proptech, such as ArcTern Ventures and Moderne Ventures, alongside LPC Ventures, Harrison Street, Hunt Companies, and Align Real Estate. The seed round was co-led by Ramez Naam and Pasadena Angels.
Policy Updates
Welcome to another edition of Policy Corner. Recent months have witnessed a prolonged effort to enact both a budget reconciliation bill and an infrastructure bill.
Each of these legislative efforts is considered historically significant, carrying trillion-dollar price tags. However, the process remains incomplete.
President Joe Biden presented a revised Build Back Better budget proposal on Thursday. A substantial obstacle arose from within his own party.
Specifically, the progressive faction of the Democratic party continues to demand that both bills progress simultaneously through the voting process. This impasse forced President Biden to depart for the United Nations Climate Change conference in Glasgow without finalized climate provisions to present to global leaders.
The budget bill underwent several modifications, including the removal of a provision for a national paid family leave program. However, a key element for our focus at The Station is the survival of expanded electric vehicle incentives for consumers.
A $7,500 consumer tax credit for EVs has existed for some time, but advocates argue it requires modernization.
Key Changes to the EV Incentive
The proposed changes encompass the following:
- An additional $4,500 credit is offered for EVs manufactured in the U.S. at facilities with union representation.
- A further $500 credit is available for EVs utilizing batteries with at least 50% U.S.-sourced components.
- The existing cap limiting the credit to manufacturers selling fewer than 200,000 EVs is eliminated.
- Price limits are introduced, restricting the incentive to EVs costing under $55,000 (sedans), $69,000 (SUVs), and $74,000 (pickups).
- Individual income eligibility is capped at $400,000 annually, or $800,000 for joint filers.
A significant advantage for middle-income earners lies in the timing of the incentive. Currently, consumers claim the credit when filing their annual taxes.
Under the new proposal, the discount would be applied at the point of sale, potentially enabling EV purchases for individuals who cannot afford to wait until tax season.
This provision has garnered support from major stakeholders, including the Big Three automakers, the United Auto Workers Union, and the Sierra Club.
Conversely, opposition comes from automakers such as Honda Motor, Hyundai, BMW AG, Volkswagen, Nissan Motor, Tesla and Toyota Motor.
— Aria Alamalhodaei
Recent Developments and Industry Updates
Autonomous Vehicle Technology
AiMotive, a company specializing in automated driving systems established in 2015, has inaugurated a new facility in Munich. This location incorporates a workshop dedicated to testing and data acquisition within Germany, with trials anticipated to commence in 2022.
Bryan Salesky, the co-founder and Chief Executive Officer of Argo AI, has been appointed to the board of directors of PNC Financial Services Group. Furthermore, he will serve on the board’s technology subcommittee and a dedicated committee focused on equity and inclusion. Salesky also holds a position on the University of Pittsburgh’s Board of Trustees.
General Motors’ CEO and Chair, Mary Barra, expressed strong confidence that human drivers will be removed from Cruise vehicles by the year 2022. This statement was delivered during GM’s third-quarter earnings report, coinciding with Cruise’s preparations for initial commercial operations involving autonomous robotaxi and delivery services.
GE Appliances has chosen Swedish freight technology firm Einride to evaluate the performance of its electric, self-governing trucks and pods at its Louisville, Kentucky campus. This marks the first deployment of Einride’s trucks on American roads, where they will facilitate material transport between buildings within GE’s Appliance Park.
Starship Technologies is collaborating with North Carolina Agricultural and Technical State University and Sodexo, its food service provider, to implement an autonomous robot-based food delivery service for the university. Starship intends to deploy a fleet of 20 self-directed robots, delivering from three campus dining locations, with plans for expansion to additional retail outlets by the following spring.
Yandex is partnering with Russian Post to utilize its autonomous robots for parcel delivery. The pilot program will involve 36 robots delivering packages from 27 post offices throughout Moscow. While Yandex will manage maintenance and support, Russian Post personnel will be responsible for loading parcels, battery charging, and replacements.
Electric Vehicle Advancements
Arcimoto, the manufacturer of the compact, electric, three-wheeled Fun Utility Vehicle, is joining forces with car sharing provider REEF to support a zero-emission vehicle-sharing initiative. Arcimoto vehicles are now available for rent by the minute in Santa Monica through REEF’s platform.
Canoo has secured an agreement with Panasonic for the supply of batteries to power its all-electric lifestyle vehicle. Production of the vehicle, which will be handled by VDL Nedcar, is slated to begin in the fourth quarter of 2022.
Ford and Newlab have selected six startups for the inaugural cohort of the Mobility Studio, a program designed to facilitate the piloting of services and technologies aimed at accelerating the adoption of electric vehicles. The chosen companies include Autofleet, a vehicle-as-a-service platform, Rhombus Energy Solutions, an electric grid infrastructure developer, SparkCharge, a charging-as-a-service provider, EVPassport, an EV charging hardware and software company, and Fermata Energy, a vehicle-to-grid startup.
General Motors is committing approximately $750 million to charging infrastructure, intending to install up to 40,000 electric vehicle chargers across North America. This investment aims to attract drivers to GM’s expanding range of electrified models. The program will involve providing charging equipment to dealerships, who will then identify and install suitable locations within their communities.
Proterra will provide its H Series battery system technology to Komatsu for the development of battery-electric vehicles designed for underground mining operations. Commercial production is anticipated to begin in 2022.
Uber and EV charging and energy management company Wallbox have established a partnership to provide ride-hailing drivers with access to home charging solutions. Wallbox will offer drivers a discounted package encompassing a charger, installation services, and financing options. A pilot program will launch in the San Francisco Bay Area, with potential expansion to other regions in the US, Canada, and globally.
Xponent Power has created and is now releasing a retractable solar awning specifically for recreational vehicles. The awning, known as the Xpanse Solar Awning, generates over 1.2kW of solar power, capable of powering onboard appliances, and addresses the average RV’s annual energy consumption of approximately 7,200 kWh.
Other Industry News
Robert Bosch GmbH announced a further investment of €400 million ($467 million) to enhance its chip manufacturing capabilities in response to the ongoing global semiconductor shortage. This additional funding, allocated for 2022, will be directed towards expanding operations at its wafer fabrication plants in Dresden and Reutlingen, Germany, and its semiconductor component facility in Penang, Malaysia.
Stellantis has introduced a rewards program and accompanying mobile application developed in collaboration with startup Miles. The program, named Stellantis Miles, enables customers of Chrysler, Dodge, Jeep, Ram, Fiat, or Alfa Romeo vehicles to accumulate miles for all their travel, not solely for driving. The app, available for free download on iOS and Android, allows users to redeem miles for personalized rewards from over 250 retailers or donate them to charitable causes.