The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving landscape of transportation. It delivers insights into how people and goods are moved, both presently and with an eye toward future innovations.

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Tesla and Cryptocurrency: A Shifting Position

A recent development highlights the volatile relationship between the automotive industry and cryptocurrency. Weeks after Elon Musk, CEO of Tesla, and Zach Kirkhorn, the CFO, expressed confidence in the long-term viability of bitcoin, the company has revised its position.

Musk, who also holds the title of Technoking, announced via Twitter that Tesla would be halting vehicle purchases using bitcoin. This decision stems from concerns regarding the escalating consumption of fossil fuels – particularly coal – associated with bitcoin mining and processing transactions.

Market Reaction and Alternative Cryptocurrencies

The announcement from Musk immediately impacted the price of bitcoin. However, the situation quickly became more complex.

Musk clarified that while bitcoin was no longer accepted, Tesla remained open to exploring other cryptocurrencies. He stated, “We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”

Given Musk’s previous support for Dogecoin, many anticipated his next move. On May 13th, he tweeted, “Working with Doge devs to improve system transaction efficiency. Potentially promising.”

Consequently, Dogecoin – previously described by Musk as a “hustle” during a Saturday Night Live appearance – may become Tesla’s preferred cryptocurrency.

Stay Connected

Your feedback and insights are valuable. Feel free to reach out via email at kirsten.korosec@techcrunch.com with any thoughts, critiques, or information.

You can also connect directly with me on Twitter – @kirstenkorosec.

Micromobility Updates

Recent developments in the micromobility sector are headlined by Bird, the electric scooter sharing company operating in over 200 cities globally. The company is set to become publicly listed through a merger with a special purpose acquisition company (SPAC), Switchback II, aiming to secure funding and achieve profitability by 2023, as initially reported by dot.LA following access to Bird’s investor presentation.

The financial arrangements for this deal include a $160 million private investment in public equity led by Fidelity Management & Research Company, supplemented by a $40 million asset financing contribution from Apollo Investment Corp. and MidCap Financial Trust.

According to the SPAC documents, Bird experienced losses of $387.5 million in 2019 and $208.2 million in 2020, despite workforce reductions of 400 employees in 2020. Given its substantial cost structure and currently unprofitable revenue streams, exacerbated by the impact of the pandemic, the success of this deal is crucial for Bird’s future. A strategic shift in business models appears necessary, as directly purchasing and deploying scooter fleets internationally proves financially unsustainable. The company’s transition to a “franchise” model, enabling smaller businesses to operate fleets under the Bird brand, generated 94% of its “sharing” revenue during the latter half of 2020. This suggests a potential path to viability, particularly as the company plans further expansion into European markets.

Expanding Operations

Neuron Mobility, an e-scooter sharing provider based in Singapore and successful in Australia and New Zealand, has announced plans to broaden its presence within the Commonwealth. Having recently secured a contract to operate in Ottawa, Neuron will commence services in Canada within the next month, with intentions to extend to additional cities nationwide. As a gesture of support, the company will offer complimentary monthly passes to qualifying Public Health and Emergency Service personnel in the Canadian capital.

Developments in Africa

SafeBoda, a Ugandan-based ride-hailing platform specializing in two-wheeled transport, has reported surpassing 1 million completed rides in Ibadan, Nigeria. SafeBoda is modernizing the traditional motorcycle taxi services – known as boda-bodas in Uganda and okadas in Nigeria – and is currently outpacing larger competitors like uberBODA and Bolt boda. Despite the significant resources and brand recognition of Uber and Bolt, SafeBoda’s success is notable. The company facilitates approximately 80,000 rides daily in Uganda, compared to roughly 10,000 rides completed by Uber and Bolt combined.

Latest Product Releases

Stromer’s latest e-bike, the ST2 S-Pedelec, is available for $5,699 and boasts considerable power. Equipped with a 750-watt CYRO rear-wheel motor and a 618kWh battery, it achieves speeds of up to 28 mph and a range of up to 75 miles. Integrated 3G and Bluetooth connectivity provide GPS tracking and a Smartlock feature for theft protection. The bike is offered in sport or comfort frames, available in royal blue or dark grey.

Razor, renowned for its iconic silver fold-up scooters of the early 2000s, has introduced the RipStik Rush, an electric version of its RipStik 2.0. Designed for more adventurous riders, the scooter’s rear end allows for maneuvers such as fishtailing, carving, and drifting, similar to snowboarding or wakeboarding, according to the manufacturer. Razor will also be releasing its C25 e-scooter, targeted towards daily commuters, at retail locations this summer.

— Rebecca Bellan

Featured Investment Opportunities

During the previous year, approximately twenty-four companies focused on transportation became publicly listed through mergers with special purpose acquisition companies (SPACs). A significant portion of these were involved in electric vehicle technology and the development of lidar systems.

Currently, we are observing a broadening scope of transportation-related companies pursuing similar paths, exemplified by autonomous trucking firm TuSimple and, more recently, Plus AI.

This week, Plus unveiled its intention to merge with Hennessy Capital Investment Corp. V. The resulting entity is projected to have a valuation of $3.3 billion. Following the merger, Plus is slated to be traded on the New York Stock Exchange under the ticker “PLAV.”

The transaction is further bolstered by a $150 million private investment in public equity (PIPE), originating from funds managed by BlackRock and the D. E. Shaw Group.

The company stated that the capital acquired through public markets will facilitate the commencement of mass production for its PlusDrive autonomous vehicle platform in 2021. This production will be in collaboration with heavy-truck manufacturer FAW.

Plus is also collaborating with IVECO to co-develop autonomous trucks for deployment across China, Europe, and other global regions.

Other Notable Transactions

Clarios, a battery manufacturer based in Wisconsin acquired by Brookfield Asset Management in 2019, has confidentially filed for an initial public offering (IPO), as reported by Bloomberg.

Brookfield is reportedly aiming for a valuation exceeding $20 billion for the company in the IPO.

ForU Worldwide, a Chinese freight-as-a-service platform, has submitted an application for a $100 million IPO.

Innovusion, a lidar company established five years ago and a supplier to the Chinese electric vehicle manufacturer Nio, has secured a Series B funding round totaling $64 million.

This new investment increases the company’s total funding to over $100 million. However, as Rita Liao of TechCrunch points out, while substantial, this amount is comparatively smaller than the funding raised by larger competitors like Velodyne and Luminar.

Temasek, the sovereign wealth fund of Singapore, spearheaded Innovusion’s latest financing round. Additional investors included Bertelsmann Asia Investment Fund, Joy Capital, Nio Capital, Eight Roads Ventures, and F-Prime Capital.

Telkomsel, a subsidiary of Indonesia’s leading telecom operator Telkom, has made a further investment of $300 million in ride-hailing and payments company Gojek.

This investment follows a previous $150 million contribution made by the network provider to the Southeast Asian firm just months prior.

The announcement coincides with Gojek’s ongoing efforts to finalize a merger with e-commerce platform Tokopedia. This $18 billion deal is expected to create a new entity named GoTo.

Telkomsel’s recent investment positions it as one of GoTo’s eight largest investors.

WeRide, a Chinese autonomous driving technology company, has completed its Series C funding round, resulting in a post-money valuation of $3 billion.

While WeRide has not disclosed the specific amount raised beyond stating it is “in the hundreds of millions,” this round occurred only four months after securing $310 million in Series B funding.

WeRide plans to allocate these funds to research and development, as well as commercialization efforts, focusing on the advancement of Level 4 autonomous driving technology. This level allows vehicles to operate without human intervention under specific conditions.

The company is also preparing to launch its technology commercially.

Waymo: Leadership Transitions and Operational Challenges

Recent weeks have presented a period of notable activity for Waymo’s public relations department.

Reports surfaced concerning the departures of key executives, specifically Ger Dwyer, the Chief Financial Officer, and Adam Frost, who led automotive partnerships and corporate development. Both individuals held long-standing positions within the autonomous vehicle company.

These exits follow a series of leadership changes initiated earlier this year with the resignation of CEO John Krafcik in April. Prior to this, Deborah Hersman, the Chief Safety Officer, departed in December.

Further personnel shifts occurred in February with the leaving of Tim Willis, formerly head of manufacturing and global supply chain, and general manager of Waymo’s Laser Bear lidar division. Sherry House, who served as treasurer and head of investor relations since 2017, also left in April, subsequently assuming the role of CFO at Lucid Motors.

Despite these changes, several crucial leaders and their direct reports remain with the company. Tekedra Mawakana and Dmitri Dolgov have stepped into co-CEO roles, succeeding Krafcik.

LinkedIn profiles indicate that most department heads reporting to Mawakana and Dolgov are still employed at Waymo, with limited exceptions. David Twohig, previously director of Future Automotive, and Qi Hommes, former head of system safety, both departed in March. Hommes is now contributing his expertise as director of system safety engineering and analysis at Zoox.

Such alterations at the executive level frequently trigger subsequent adjustments in roles and, at times, further departures. Additional changes are anticipated in the coming weeks and months.

Concurrently, a Waymo One user shared a video documenting an experience with the company’s ride-hailing service, which utilizes both fully driverless vehicles and those equipped with safety operators. The journey encountered difficulties when the vehicle entered a construction zone marked by traffic cones.

The vehicle experienced confusion and became immobilized. Waymo’s remote team attempted to rectify the situation by sending path planning instructions, but initially provided incorrect guidance, exacerbating the problem. Ultimately, a roadside assistance team intervened physically to complete the trip.

This incident underscores the substantial work that remains in the development of autonomous vehicle technology. It also highlights the considerable human support required to operate even a single driverless vehicle on public roads. Similar occurrences are expected to arise throughout the industry.

Notably, a competitor, Cruise, released a video showcasing its vehicle successfully navigating a construction zone. The timing of this release appears, at least, strategically aligned.

Recent Developments in Policy

This report provides an update on recent policy changes. We will begin this week’s overview with news concerning the United States Postal Service.

As you may recall, the USPS announced in February a substantial contract award to OshKosh Corp. This contract is for the replacement of a significant portion – between 50,000 and 165,000 – of the current aging vehicle fleet with new delivery vehicles utilizing both diesel and electric powertrains over the coming decade.

Postmaster General Louis DeJoy subsequently informed Congress that approximately only 10% of these new vehicles would be electric. This figure was met with considerable criticism from numerous parties in Washington D.C. and across the nation, who contended that a higher percentage was necessary.

Gina Coplon-Newfield, Director of the Sierra Club’s Clean Transportation for All campaign, stated that the USPS’s limited commitment to fleet electrification is inconsistent with the Biden administration’s objectives and executive directives aimed at reducing pollution from government vehicles.

Currently, members of the House of Representatives are progressing a legislative measure that would authorize an additional $8 billion in funding for the USPS. This funding is specifically intended to facilitate a transition to electric vehicles. The provision for these funds was added to a bill focused on enhancing the tracking of mailed ballots.

Considering President Joe Biden’s January statement regarding his commitment to transitioning the federal government’s fleet of roughly 650,000 vehicles to electric models, the USPS’s decision to select a mixed diesel-electric bid just a month later appeared incongruous.

In related news, Washington State Governor Jay Inslee utilized his veto power to reject a portion of a bill. This section would have prohibited the sale of new vehicles with internal combustion engines (ICE) beginning with the 2030 model year.

Had it been enacted, this would have marked the first instance of a state mandating all-electric vehicle sales through legislative action, rather than through an executive order. Both California and Massachusetts, states with existing ICE phase-out policies, implemented these through executive orders signed by their governors, with a start date of 2035.

• The USPS contract with OshKosh Corp. covers 50,000 to 165,000 vehicles.
• Only around 10% of the new USPS fleet is planned to be electric.
• A House bill proposes an additional $8 billion for USPS electric vehicle adoption.
• Washington State’s proposed ICE vehicle ban was vetoed by Governor Inslee.

— Aria Alamalhodaei

Recent Developments in Automotive Technology and Industry Trends

A collection of noteworthy updates and insights from the automotive world has emerged recently, covering autonomous driving, in-car technology, delivery services, electric vehicles, and more.

Self-Driving Technology

An update was recently provided by Volkswagen Group and Argo AI, the latter being the supplier of the self-driving system intended for commercial use in transporting both people and goods by 2025. While much of the information presented was previously known, new details surfaced regarding the commencement of testing on European roadways later this year, following initial trials at a dedicated test track near Munich airport.

Advancements in Vehicle Software

Ford Motor is enhancing its in-vehicle software capabilities through the integration of a built-in Alexa voice assistant and a wireless software update system. Ford’s over-the-air updates, branded Power-Up, will be capable of updating “virtually all” computer modules in new vehicles, extending beyond just infotainment systems, according to a company statement released Thursday. The automaker anticipates Power-Up will be able to update over 80 computer modules in higher-end models, with a goal of equipping 33 million vehicles with this service and Alexa by 2028.

Amazon Delivery Operations

A five-month investigation by Paris Martineau of The Information examined Amazon’s delivery operations and documented over 50 serious crashes involving its semi-trucks over the past three years.

The Electric Vehicle Landscape

Companies like Arrival, Canoo, Fisker, Lordstown Motors, and Nikola Corp experienced significant attention when they entered the public market through SPAC mergers. A Bloomberg report indicated these five companies held a combined value of $60 billion upon their initial public offerings. However, recent months have presented considerable challenges. Three of these companies reached new lows this week due to short-seller scrutiny, leadership instability, and difficulties in execution, resulting in a combined loss of over $40 billion in market capitalization from their peak valuations.

California Gov. Gavin Newsom unveiled a new proposal allocating $3.2 billion to bolster EV infrastructure and adoption within the state. More than half of this $3.2 billion budget will be directed towards replacing 1,150 trucks, 1,000 transit buses, and 1,000 school buses with electric alternatives. An additional $800 million will support the state’s Clean Cars 4 All program, assisting lower-income drivers in upgrading to zero- or near-zero emission vehicles, alongside further rebates for clean vehicles. The proposal also designates $500 million for infrastructure and $250 million for manufacturing grants. Specific infrastructure programs qualifying for funding were not detailed, though charging infrastructure is likely to be a key focus.

Fisker has entered into an agreement with Foxconn, the Taiwanese manufacturer of iPhones, to jointly develop and produce a new electric vehicle. Production of this vehicle, branded under Fisker, is slated to begin in the U.S. by the end of 2023, with sales targeted for North America, Europe, China, and India.

Both Ford and BMW have appointed representatives to the board of Solid Power, a solid-state battery company that recently secured $130 million in Series B funding. Ford selected Ted Miller, manager of electrification subsystems and power supply research, while BMW chose Rainer Feurer, a senior vice president of corporate investments.

Ford has officially named its all-electric pickup truck the F-150 Lightning, reviving a name previously used for the SVT F-150 in the 1990s. While details regarding the powertrain, range, and other specifications remain limited, Ford President and CEO Jim Farley shared new information about the upcoming electric pickup. Notably, the F-150 Lightning’s battery is expected to have the capacity to power a home during a power outage, a capability previously demonstrated by Ford’s Hybrid F-150 for job sites and tools.

Harley-Davidson has established LiveWire as an independent brand for its electric motorcycle line, complete with a new logo and brand identity. The initial LiveWire electric motorcycle was unveiled in 2018 with a price of $29,799, positioning it at the higher end of the motorcycle market. Production commenced the following year, though experienced some initial challenges, including a temporary halt due to a charging-related issue. The “first LiveWire-branded motorcycle” is scheduled for launch on July 8, with a public debut at the International Motorcycle Show the following day.

Hyundai Motor Group announced a $7.4 billion investment in the U.S. by 2025, dedicated to the production of future electric vehicles, improvements to production facilities, and the development of smart mobility solutions. The company will also invest in advancements in both electrification and hydrogen energy technologies.

Subaru revealed further details about its first-ever EV, planned for release in 2022. The vehicle will be named the Solterra, a fitting choice for a brand associated with outdoor adventures and nature. Subaru’s inaugural full-fledged EV will be an SUV equipped with the manufacturer’s renowned all-wheel-drive system. The Solterra is built on a new platform developed in collaboration with Toyota, which will utilize it for its bZ4X crossover.

Ultium Cells LLC, a joint venture between General Motors and LG Chem, has reached an agreement with Canadian company Li-Cycle to recycle critical materials from manufacturing scrap generated at Ultium’s Lordstown plant, beginning later in 2021. These materials will be sent to Li-Cycle’s recycling facility in Rochester, New York, for processing and reintegration into the battery supply chain.

Hydrogen Fuel Cell Technology

Toyota has partnered with Japanese company ENEOS to co-develop the hydrogen fuel cell system that will power its Woven City, a futuristic prototype city. The 175-acre city is envisioned as a fully connected ecosystem powered by hydrogen fuel cells, where residents will live and work alongside Toyota’s projects, including autonomous e-Palette shuttles and robots. ENEOS, a Japanese petroleum company investing heavily in hydrogen, will contribute to realizing Toyota’s “human-centered” city of the future. This collaboration underscores Toyota’s commitment to hydrogen over electric power and could aid Japan in achieving carbon neutrality by 2050.

Industry Research and Analysis

Global consulting firm AlixPartners now estimates the ongoing semiconductor shortage will result in $110 billion in lost revenue for automakers globally this year, an increase from its earlier estimate of $61 billion in late January. The firm now forecasts a total production loss of 3.9 million vehicles in 2021. The shortage, exacerbated by a fire at a key chip fabrication plant, severe weather in Texas, and a drought in Taiwan, has significantly impacted the automotive industry, as noted by Mark Wakefield, global co-leader of AlixPartners’ automotive and industrial practice.

The situation is not expected to improve quickly. Modern vehicles contain up to 1,400 chips, and the demand from the consumer electronics sector continues to strain the automotive industry’s supply. While supply chain resilience has always been important, there is now a broader industry and governmental push to strengthen the supply chain for the long term.

Nexar, a company specializing in AI-based dashcam technology for road safety monitoring, deployed 36 vehicles in Milan in February. Utilizing dashcam images and AI, the company mapped 262,163 on-street parking spots in a single month. This data is part of a broader study by Nexar to better understand curbside usage patterns.

Nexar demonstrated that vision data, specifically from car cameras, can accurately identify parking spots, replicating human understanding of parking availability. The company’s goal is to leverage this technology to create a crowd-sourced map of free parking locations.

Upcoming Events and Opportunities

Several noteworthy events are scheduled in the near future, extending beyond just TC Sessions: Mobility 2021.

Ford Motor Company is set to conduct its Capital Markets Day on May 26th. The event will commence with a webcast at 9:15 a.m. EDT, followed by the formal start at 9:30 a.m. EDT. Following the presentation, CEO Jim Farley, CFO John Lawler, and additional Ford leaders will engage in a Q&A session with analysts. Further details and access to the event can be found here.

The Petersen Automotive Museum is initiating a new incubator program spanning three months, specifically designed to support women-led ventures within the automotive industry. Annually, the museum will select a California-based startup—limited to five or fewer employees—and provide comprehensive mentorship, access to its network of sponsors and partners, and an investment ranging from $25,000 to $30,000. Applications undergo review by a dedicated selection committee. Accepted startups will collaborate with the Petersen’s mentorship team to tailor a program aligned with their specific business objectives. The application window is currently open and closes on July 31, 2021. Apply through this link.

Self Racing Cars is slated for October 16-17, 2021, taking place at Thunderhill Raceway. Organized yearly by Joshua Schachter, this event embodies an autonomous racing series with a strong maker community focus. It emphasizes both the practical aspects of building and troubleshooting as much as the racing itself.

Despite the competitive nature, a collaborative spirit prevails among the teams. I distinctly recall the inaugural event hosted by Schachter. It was there I first connected with Alex Roy, who is now a co-host on the Autonocast podcast. This event also marked the occasion where George Hotz of Comma.ai successfully navigated the track—with Alex and myself as passengers—and ultimately secured the win. Furthermore, it was at this event that I was introduced to Austin Russell, a then-unknown individual who was secretly developing Luminar, a lidar company.

Visit the event website for comprehensive information and registration details. Currently, Nvidia has confirmed its participation, and this list is expected to expand in the coming months. I anticipate seeing many of you there this fall.

Don't miss TC Sessions: Mobility 2021! This event, happening on June 9th, is fast approaching, and your attendance is highly encouraged. The one-day virtual event boasts a comprehensive agenda. Explore the full agenda here.

Here are a few key highlights:

A panel discussion focusing on self-driving deliveries will feature Ahti Heinla, co-founder and CTO of Starship Technologies, Amy Jones Satrom, head of operations at Nuro, and Apeksha Kumavat, co-founder and CTO of Gatik. Exclusive one-on-one interviews are scheduled with Pam Fletcher, leading innovation at GM, Mate Rimac, founder and CEO of Rimac Automobili, Alex Wang, co-founder and CEO of Scale AI, and Jesse Levinson, co-founder and CTO of Zoox.

We will also host discussions with prominent investors, including a panel with Clara Brenner from Urban Innovation Fund, Quin Garcia of Autotech Ventures, and Rachel Holt of Construct Capital. Additionally, LinkedIn founder and investor Reid Hoffman, whose SPAC merged with Joby Aviation, will join Joby’s founder and CEO, JoeBen Bevirt, to discuss future developments. A further panel will bring together Tamika L. Butler, a community organizer, transportation consultant, and lawyer, Tiffany Chu, co-founder and CEO of Remix, and Frank Reig, co-founder and CEO of Revel, to address equity, accessibility, and shared mobility in urban environments.

A dedicated panel, previously unannounced, will concentrate on China and robotaxis. This panel will include Jennifer Li, VP of Finance at WeRide, Jewel Li, COO of AutoX, and Huan Sun, head of Momenta Europe. These leaders, representing three prominent Chinese robotaxi companies—with operations also in Europe and the U.S.—will share insights into the unique challenges of developing and deploying this technology in China, and how it differs from other regions.

More details are available, and questions are welcome! Please submit any questions you have for these participants. Live Q&A sessions will be incorporated into select panels.