Cruise, NIO, and Rivian: Latest EV News

The Station: A Transportation Newsletter

Welcome to The Station, a weekly newsletter focused on the evolving landscape of transportation. Subscribe here – simply click The Station – to have it delivered directly to your inbox each weekend.

Updates and Announcements

A brief pause will occur in our policy coverage. Reporter Aria Alamalhodaei shares the following:

“The transportation policy news roundup will be temporarily suspended. I anticipate resuming coverage in the second quarter of 2022. Please direct any tips or policy-related news to Kirsten or Rebecca. I look forward to reconnecting next year!”

Additionally, I, Kirsten, will be taking some time off for the holidays and will return with the next edition in the new year. I extend my best wishes for a joyful holiday season and good health to all readers.

Remembering Ryan Popple

The transportation sector mourns the loss of a prominent figure this week. Ryan Popple, a veteran of the U.S. Army and a key early contributor to Tesla’s financial operations, passed away unexpectedly at the age of 44.

He progressed through various roles, eventually becoming a partner at Kleiner Perkins and the CEO of Proterra, an electric bus manufacturer. He leaves behind his wife and three children. Mr. Popple had recently transitioned to G2 Venture Partners.

G2 Venture Partners honored Popple with the following statement: “Ryan exemplified an entrepreneurial mindset and dedicated his career to building a more sustainable future. His leadership at Proterra prioritized expanding access to affordable, eco-friendly solutions and fostering a zero-emission transportation system for the benefit of both the environment and public health. His work with Kleiner Perkins focused on driving sustainable transformation across industries. As a former officer in the U.S. Army, Ryan consistently demonstrated a commitment to service.”

I had the opportunity to interview Ryan in 2016. Throughout our conversations, I consistently noted his unique blend of enthusiasm and pragmatic thinking. He will be deeply missed.

Farewell to Hazel Chapman

Hazel Chapman, a co-founder of Lotus Cars and a former British racing driver, also passed away this week at the age of 94.

Stay in Touch

Feel free to reach out via email at kirsten.korosec@techcrunch.com with any feedback, suggestions, or insights. You can also connect with me on Twitter – @kirstenkorosec.

Micromobility Updates

Let's delve into the latest developments within the micromobility sector.

Tier, a rapidly expanding micromobility provider headquartered in Berlin, has finalized the acquisition of Wind Mobility’s operations in Italy. While the financial details of this transaction remain confidential, this marks Tier’s second acquisition in recent times. Similarly, Wind has divested another segment of its business, having previously sold its Israeli operations to Yandex, a prominent Russian technology company.

Furthermore, Tier has recently published data concerning its London trial program. Since its commencement in June, Tier scooters have accumulated over 218,000 miles of completed journeys.

Zoomo, an Australian company offering e-bike subscriptions tailored for businesses and gig economy delivery personnel, has unveiled its latest e-bike model, the Zoomo One. The company positions this vehicle as a potential replacement for traditional mopeds.

The Zoomo One is engineered to carry substantial loads, with a rear capacity of 88 lbs and a front capacity of 40 lbs. Zoomo asserts that the e-bike is capable of handling deliveries in diverse weather conditions and across varied terrains.

Unagi, a manufacturer of electric scooters, has announced a nationwide rollout of its all-access subscription service. This plan offers users flexible payment options, including a monthly pay-as-you-go rate of approximately $50 or an annual subscription at $39 per month.

The Unagi subscription boasts a commitment-free structure, eliminating cancellation fees and providing users with peace of mind.

Gogoro has initiated a new urban battery swapping program leveraging Gogoro-enabled smart parking meters. These meters were jointly developed with Shengming Technology.

The company states that these meters will equip cities with advanced smart city technology, accelerating the implementation of wireless connectivity and independent power solutions for various applications, including parking administration.

Currently, the meters are being deployed in New Taipei City, Taiwan, and are scheduled to become operational in early 2022. An additional 6,000 meters are planned for deployment throughout the country before the year's end.

— Rebecca Bellan

Notable Transactions of the Week

Harley-Davidson recently declared its intention to make its electric motorcycle division, LiveWire, a publicly traded entity. This will be achieved through a merger with a special purpose acquisition company (SPAC) backed by AEA Investors and Bridges Fund Management executives.

Let's examine the specifics of this arrangement. The agreement involves AEA-Bridges Impact Corp (ABIC), and is supported by $400 million currently held in trust by ABIC. Additional funding comes from a $100 million investment by Harley-Davidson and a further $100 million from Kymco.

Upon completion of the transaction, Harley-Davidson is projected to retain approximately 74% ownership of the newly formed company. Shareholders of the SPAC will hold a 17% stake, while the remaining 4% will be distributed between the SPAC founders and Kymco.

The combined entity is anticipated to have an enterprise value of around $1.77 billion and a post-money equity value of approximately $2.31 billion when the deal finalizes. The expected closing date for this merger is in the latter half of 2022.

The significance of this move lies in Harley-Davidson’s ability to maintain substantial ownership while simultaneously providing LiveWire with access to public market capital. Furthermore, it establishes Kymco as a crucial strategic partner.

Looking ahead, it is predicted that 2022 will see an increase in public spin-outs, building on the trend of SPACs observed in 2020 and 2021. More established companies are likely to adopt a similar strategy to Harley-Davidson’s LiveWire.

Additional investment activity this week included…

Apex.ai, a mobility software company established by former Bosch employees Jan Becker and Dejan Pangercic, secured a $56.5 million Series B funding round, spearheaded by Orillion. The round also saw participation from AGCO, Canaan, Lightspeed Venture Partners, Airbus Ventures, Jaguar Land Rover’s InMotion Ventures, Continental, and ZF.

To date, Apex.ai has raised a total of $74 million, encompassing prior investments from Volvo Group Venture Capital, Toyota Ventures, and HELLA Ventures. ZF will acquire a 5% equity stake in Apex as part of this funding.

Gopuff is currently in the process of securing $1.5 billion in funding, potentially reaching a valuation of up to $40 billion.

Solvento, a platform facilitating immediate capital access for trucking companies, raised $4.5 million in a funding round led by Dynamo Ventures, with contributions from Wollef Ventures and Zenda Capital. This funding also includes a $3 million debt facility from Marco Financial.

Vay, focused on accelerating the deployment of self-driving car services through a teledriven approach, has obtained $95 million in Series B funding. This capital will support the launch of its initial commercial service in Hamburg, Germany, anticipated sometime in 2022.

Vertical Aerospace, a company specializing in aerospace and technology, commenced trading on the New York Stock Exchange under the ticker symbol EVTL.

Voly, a Sydney-based startup only five months old, offering rapid deliveries (within 15 minutes) of a wide range of products for a flat fee of AUS$2.99 ($2.14), has secured AUS$18 million (approximately $13 million) in a seed funding round. These funds will be used to expand its operations to additional cities and towns across Australia.

WeRide, a Chinese autonomous vehicle technology firm, has received a strategic investment from Guangzhou Automobile Group (GAC Group). The specific terms of this investment were not disclosed.

Recent Developments and Industry Updates

Self-Governing Vehicles

The past week brought significant activity within the realm of autonomous vehicles.

Aurora is currently utilizing its self-driving trucks to transport goods for Uber Freight clients in Texas, as part of a phased commercial trial designed to integrate the operations of both companies more effectively. The company is leveraging the Uber Freight platform, connecting trucking services with shippers, to manage freight transport between Dallas and Houston. Aurora anticipates expanding its service routes as it establishes additional terminals.

Einride, a Swedish company specializing in electric and autonomous freight, has launched its inaugural NFT – a digital representation of the initial sketch of its autonomous Pod. This marks the company’s first venture into the cryptocurrency space. Einride intends this to be the first in a series of NFTs, serving as a gateway to the web3 environment.

GM announced the departure of Dan Ammann from his position as CEO of Cruise in a concise and unexpected statement. Numerous tips, rumors, and speculations circulated following the announcement regarding the reasons behind Ammann’s exit. Sources within Cruise HQ described the situation as “chaotic,” “hasty,” and a “surprise.”

In a separate development, Lucas Watson, Cruise’s senior vice president of go-to-market strategy, also left the company last week. This is reportedly an unrelated event, but it signifies the loss of two key figures focused on Cruise’s business strategy.

Mobileye has expanded its autonomous vehicle testing program to include Paris. The company will collaborate with RATP, the French public transport provider, to offer an on-demand autonomous vehicle service for employees of the Galleries Lafayette Paris Hausmann shopping center.

Motional is collaborating with Uber to initiate an autonomous delivery pilot program in Santa Monica. Uber Eats customers will have the option to order restaurant meal kits for delivery via Motional’s retrofitted all-electric Hyundai Ioniq 5 robotaxis, starting in early 2023.

Pony.ai, a Chinese autonomous driving startup with a U.S. presence, has temporarily suspended its driverless pilot program in California. This pause occurred approximately six months after receiving regulatory approval to test autonomous vehicles without a human safety driver. The California DMV suspended Pony’s permit following a collision reported in Fremont on October 28.

TuSimple has reached an agreement to integrate its autonomous vehicle technology into the operations of DHL Supply Chain. As part of this agreement, DHL has reserved 100 autonomous trucks currently being co-developed by TuSimple and Navistar. This deal increases TuSimple’s total truck reservations to 6,875, with initial deliveries scheduled for 2024.

TuSimple is already utilizing its self-driving trucks for daily freight transport for DHL on a route between San Antonio and Dallas.

Waymo confirmed that a self-driving Jaguar I-Pace involved in an incident with a pedestrian in San Francisco was operating in manual mode, responding to an initial report on Reddit.

Electric Vehicles

Abigail Bassett has shared her initial impressions of the 2022 Porsche Taycan GTS Sport Turismo.

Ample co-founder John de Souza participated in our final founder Q&A session of the year.

Canoo has terminated its contract with VDL Nedcar, a Dutch automotive manufacturing company, to serve as its European contract manufacturer. The company is now exploring a new agreement with VDL Groep, another Dutch auto manufacturer, to produce vehicles within the United States.

Lightyear, a company focused on developing long-range solar cars, has signed an agreement with LeasePlan, a car-as-a-service provider, to reserve 5,000 units of Lightyear’s second model for inclusion on its platform by 2025.

Kia has announced an estimated EPA range of 310 miles for its new EV6 model when equipped with a 77.4 kWh battery and rear-wheel drive. The EV6 is scheduled for release in the first quarter of 2023.

GM executive Pamela Fletcher, an engineer instrumental in launching the Chevrolet Bolt and recently serving as vice president of global innovation, has left the company to join Delta Air Lines.

Nio, a Chinese electric vehicle manufacturer, unveiled the ET5, a mid-sized sedan described as “smart,” offering a range of 550 to 1,000 kilometers depending on the battery pack. The vehicle features a panoramic digital cockpit called Panocinema, incorporating AR and VR technology, including custom augmented reality glasses developed in partnership with Nreal, capable of projecting a 201-inch screen six meters in front of the driver.

Proterra, a U.S. commercial electric vehicle company specializing in transit buses and charging systems, is establishing its third battery factory in Greer, South Carolina. Production is expected to commence in the second half of 2023, with a capacity of “multiple gigawatt hours of annual battery system production.”

Rivian released its first earnings report as a publicly traded company. Key announcements included an expansion of production capacity at its Normal, Illinois factory from 150,000 to 200,000 electric vehicles annually, and the construction of a second factory near Atlanta with a targeted annual production capacity of 400,000 vehicles. This Georgia facility will also house a co-located battery cell production facility. Construction is slated to begin in summer 2023, with production commencing in 2024. Reporter Mark Harris investigated Rivian’s early backing from Space Florida.

Toyota outlined its electric vehicle strategy, aiming to introduce 30 battery electric vehicles by 2030 and achieve global sales of 3.5 million units within the same timeframe. The company also intends to transition Lexus into an all-electric brand by the end of the decade. During its announcement, Toyota also playfully “rickrolled” the audience.

The Gig Economy

Rebecca Bellan investigates the question: Who bears the financial responsibility when an Uber driver is involved in a fatal incident?