Rivian IPO & QuantumScape Battery Hire - The Station

The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving landscape of transportation, covering both current methods and future innovations for moving people and goods.

As many of our readers in the United States prepare for travel during the Memorial Day holiday – potentially their first extended trip in over a year – it’s important to note the occasion’s original purpose: honoring the U.S. military personnel who lost their lives in service. However, the long weekend has become widely recognized as the unofficial start of summer. According to AAA, travelers utilizing cars, trucks, or SUVs will encounter the highest Memorial Day weekend gasoline prices since 2014. The organization projects that approximately 37 million Americans will travel by car and plane throughout the holiday period, representing a substantial 60% increase compared to last year.

Exercise caution and prioritize safety while navigating the increased traffic volumes.

Las Vegas Loop System Contracts Under Scrutiny

The Boring Company’s Las Vegas Loop System is facing challenges. Recent investigation into the project’s contracts by Mark Harris revealed that stipulations imposed by Nevada regulators are hindering the company’s ability to achieve its contractual obligations for the LVCC Loop – Elon Musk’s inaugural underground transportation system.

Following the publication of this report, Steve Hill, president of the Las Vegas Convention and Visitors Authority (LVCVA), announced via Twitter that a recent Loop test, involving several hundred participants, successfully demonstrated the planned passenger capacity of 4,400 per hour. This positive outcome could lead to the release of $13 million in construction funds currently being withheld. Despite this encouraging development, the article highlights several other potential obstacles for the company, and we will continue to follow this story of tunnels and transportation.

TC Sessions: Mobility 2021 – A Virtual Event

We are just over a week away from TC Sessions: Mobility 2021, a one-day virtual event on June 9th. This event will gather leading experts in the transportation sector, including Mate Rimac, CEO of Rimac Automobili, Pam Fletcher, VP of Global Innovation at GM, Scale AI CEO Alexandr Wang, Joby Aviation founder and CEO JoeBen Bevirt, investor and LinkedIn founder Reid Hoffman (whose SPAC recently merged with Joby), and investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures, and Rachel Holt of Construct Capital.

Consider joining us by purchasing a ticket here. A ticket purchase also includes a month-long subscription to Extra Crunch and access to recordings of all conference sessions. If you are unable to attend, please don’t hesitate to contact me with any questions or topics you’d like to see addressed. I will be conducting interviews with many of the speakers.

Automakers and Robotics: Increasing Investment

We’ve recently added three new participants from Hyundai, Ford, and Toyota to discuss their companies’ growing focus and investment in robotics. Our guests include: Max Bajracharya, VP of Robotics at Toyota Research Institute (formerly of Alphabet’s X), Ernestine Fu, Director at Hyundai Motor Group leading development at New Horizons Studio, and Mario Santillo, a Technical Expert at Ford tasked with leading efforts at the company’s newly announced $75 million research facility at the University of Michigan, Ann Arbor.

Feel free to reach out with your thoughts, feedback, or tips. You can email me at kirsten.korosec@techcrunch.com or connect with me on Twitter @kirstenkorosec.

Micromobility Updates: Sustainability Focus from Bird and Lime

This week has seen announcements from leading micromobility companies, Bird and Lime, both emphasizing sustainability in their respective initiatives.

Bird has introduced its latest scooter model, the Bird Three, scheduled for launch in New York and Berlin during the summer months. This new generation features an extended-range battery, boasting a 1kWh capacity, alongside an enhanced diagnostic system designed to maximize battery longevity.

According to Bird, the improved battery technology and intelligent software contribute to a more sustainable scooter due to its extended lifespan and reduced charging frequency.

A more durable battery and sophisticated software are also expected to increase the overall lifespan of the scooter itself. This, in turn, could lead to reduced depreciation and lower maintenance expenses for Bird, factors that have historically challenged the company’s profitability.

Last week, Bird announced its intention to merge with Switchback II through a SPAC agreement. Documents filed with regulators revealed the significant challenges in achieving profitability, given the economic realities of operating shared scooter services.

Lime is also framing its revised subscription program, Lime Prime, as an environmentally conscious offering. For every new Lime Prime subscriber, Lime pledges to plant a tree in partnership with One Tree Planted.

Beyond the environmental aspect, the subscription service aims to provide cost savings for frequent Lime users. Prime members benefit from waived unlock fees on all vehicle types.

Furthermore, in cities without start fees, subscribers receive a 25% discount on ride costs. Free 30-minute vehicle reservations are also included as a perk for Lime Prime members.

Recent Developments in Electric Two-Wheel Transportation

Zaiser Motors has initiated a Wefunder campaign to secure funding for the advancement and manufacturing of their Electrocycle. The vehicle boasts a striking aesthetic, finished in charcoal black and diverging from conventional gasoline-era motorcycle designs.

Its styling evokes a modern, almost futuristic appearance, reminiscent of a compact, technologically advanced machine. The company emphasizes a commitment to sustainability, stating that all components are engineered for recyclability within the first decade of production.

The Electrocycle offers a range of 300 miles on a single charge and features swappable battery technology for extended usability. Importantly, the vehicle is priced below $25,000.

Innovative Scooter Design from Scotsman

In the electric scooter sector, Scotsman, a Silicon Valley company, has introduced a groundbreaking scooter constructed entirely from 3D-printed carbon fiber composite.

This innovative approach extends to every aspect of the scooter’s structure, including the frame, handlebars, stem, and baseboard. The utilization of this robust, sustainable, and lightweight material represents a significant advancement in scooter technology.

Furthermore, the 3D-printing process allows for a high degree of customization. Each scooter frame is individually printed to accommodate the owner’s specific dimensions – height, weight, limb lengths, and preferred riding posture.

With a starting price of $2,999, the Scotsman scooter represents a premium investment. However, this pricing may indicate a broader industry trend towards recognizing scooters as legitimate transportation alternatives, rather than simply recreational devices.

Pre-orders are currently being accepted.

— Rebecca Bellan

Industry Updates: Recent Investment and Acquisition Activity

The number of initial public offerings (IPOs) seems to be increasing recently. Notably, Full Truck Alliance, a Chinese digital freight platform also known as Manbang Group, has submitted its IPO filing. While the specific fundraising target wasn't disclosed, reports suggest the company aims to secure up to $1.5 billion, potentially achieving a $20 billion valuation.

The S-1 filing from Full Truck Alliance reveals valuable insights into the potential for revenue generation through the efficient connection of truckers and shippers. In 2020, approximately 20% of all heavy-duty and medium-duty truck drivers in China utilized the platform to accept shipping assignments. Over 2.8 million truckers completed shipments via the platform last year.

To date, Full Truck Alliance has secured $3.6 billion in private funding. Recent investors include SoftBank Vision Fund, holding a 22.2% pre-IPO stake, alongside Sequoia Capital China, Permira, Tencent, Hillhouse Capital, GGV Capital, Lightspeed China Partners, and Baillie Gifford.

This IPO follows a $1.7 billion funding round six months prior, with participation from SoftBank Vision Fund, Sequoia Capital China, Permira, Fidelity, Hillhouse Capital, GGV Capital, Lightspeed China Partners, Tencent, and YF Capital, owned by Jack Ma. Principal shareholders currently include Softbank with a 22.2% stake, Full Load Logistics (owned by CEO Hui Zhang) with 8.9%, Sequoia Capital China with 7.2%, and Master Quality Group Limited (also controlled by Zhang) with 6.6%.

Other Notable Transactions

E2open Parent Holdings Inc. has announced the acquisition of logistics execution platform BluJay Solution, as reported by Freightwaves. The transaction is estimated at $1.7 billion, comprising $760 million in cash and 72.4 million shares.

First Move Capital, a venture firm specializing in the automotive and transportation sectors, has successfully closed a new $150 million fund. These funds will be dedicated solely to new investments, with seven already committed to startups like Gatik, Tekion, Revolution Parts, Frontier Auto Group, Vroom, and Via.

Hydra Energy has received CAD$15 million ($12 million) from Just Business to facilitate the expansion of its hydrogen-powered trucking initiatives. This funding will support the development of Hydra’s hydrogen capture plant in British Columbia, along with its fueling infrastructure and conversion kits. The company has raised a total of CAD $22 million (USD $17.2 million) and plans to begin construction on its flagship project later this year.

Miles, a German car-sharing service, has attracted investment from Delivery Hero CFO Emmanuel Thomassin, HelloFresh CFO Christian Gärtner, Chargepoint CFO Rex Jackson, and Norwegian manager Stine Rolstad Brenna. Thomassin has also joined the company’s advisory board. The company reported €20 million ($24.39 million) in revenue for 2020, a fourfold increase from the previous year, leading to profitability in October 2020.

MotoRefi secured an additional $45 million in funding, led by Goldman Sachs, just five months after a $10 million investment. The company anticipates issuing $1 billion in loans by year-end, a fivefold increase compared to the previous year, though specific revenue figures weren’t disclosed.

Smart Eye, a Swedish provider of driver monitoring systems, has acquired emotion-detection software startup Affectiva for $73.5 million in a cash-and-stock deal. Affectiva, originating from MIT Media Lab in 2009, had secured development deals and funding but hadn’t achieved large-scale production contracts.

Smart Eye, having secured 84 production contracts with 13 automakers including BMW and GM, intends to integrate Affectiva’s technology with its own AI-based eye-tracking systems. This combination aims to expand beyond driver monitoring and into the broader “interior sensing” market, enabling services based on occupant emotional states.

Tritium, a Brisbane-based developer of DC fast EV chargers, has entered into a merger agreement with Decarbonization Plus Acquisition Corp. II, valuing the company at $1.2 billion. The transaction is projected to generate up to $403 million in gross proceeds, and Tritium will be listed on the stock market under the ticker “DCFC.”

This SPAC deal is unique in that it doesn’t include a private investment in public equity (PIPE). Tritium CEO Jane Hunter explained that the $400 million SPAC and shareholder commitment to a $200 million minimum cash closing reduces redemption risk. Furthermore, the company’s 56% compound annual growth rate (CAGR) since 2016 in key markets like the U.S. and Europe reduces reliance on new funding.

Wejo, a connected vehicle data startup backed by GM and Palantir, is planning to go public through a merger with Virtuoso Acquisition Corp. The combined company will have an enterprise valuation of $800 million, including debt.

The deal provides Wejo with $330 million in proceeds, including $230 million from Virtuoso and $100 million in PIPE investment. Palantir and GM were anchor investors in the transaction, though the specific amounts of their investments haven’t been disclosed. Existing shareholders will retain 64% ownership of the company.

Political Responses to EV Investment Plans

Senate Republicans have presented their alternative to President Biden’s $2 trillion infrastructure proposal. This counter-proposal allocates $928 billion, a reduction from the original plan.

A significant difference lies in the funding earmarked for electric vehicles. While Biden’s plan designates $174 billion for EV investments, the Republican proposal would limit this to just $4 billion.

Defining Infrastructure

The core disagreement between the President and Republican lawmakers centers on the interpretation of ‘infrastructure.’ Republicans favor a more conventional understanding of the term.

Consequently, their plan prioritizes traditional infrastructure projects, including roads, water systems, bridges, and broadband expansion.

Biden's EV Goals and Negotiations

President Biden’s initial plan encompassed consumer tax incentives, support for EV charger infrastructure, and funding to bolster domestic EV manufacturing.

The aim was to facilitate the installation of at least 500,000 public charging stations nationwide by the year 2030. Reports indicate President Biden intends to maintain his proposed investments, suggesting ongoing negotiations are anticipated.

Clean Energy for America Act Advances

On May 26th, the Senate Finance Committee advanced the Clean Energy for America Act, moving it closer to a Senate floor vote.

A key provision of this bill would eliminate the existing 200,000-unit cap on tax credits for EV purchasers. This change would allow consumers to apply the credit towards vehicles from manufacturers like Tesla, which previously exceeded the unit limit.

Additional Incentives Proposed

Sen. Debbie Stabenow (D-MI) introduced an amendment to the bill offering an additional $2,500 consumer credit for vehicles assembled within the United States.

A further $2,500 credit would be available for vehicles assembled in unionized facilities. If enacted, these additions could raise the maximum EV tax credit to $12,500, expiring in 2025.

Senator Stabenow emphasized the importance of domestic EV production, questioning whether these vehicles will be manufactured in Asia or America.

Conflict of Interest Resolution

U.S. Energy Secretary Jennifer Granholm divested her holdings in electric bus manufacturer Proterra following criticism from Republicans regarding a potential conflict of interest.

The concerns arose after President Biden virtually toured a Proterra factory in April. This sale resulted in a net profit of $1.6 million for Secretary Granholm, as reported by the Department of Energy.

— Aria Alamalhodaei

Industry Insights

Information is gathered and observed, and it is beneficial to share these observations. This week’s focus centers on significant personnel changes within the industry and how a particular appointment may signal a substantial upcoming IPO.

Executive Movements

Celina Mikolajczak has transitioned from her role as vice president of battery technology at Panasonic Energy of North America. Previously, she accepted a position on the board of directors at QuantumScape, a company specializing in solid-state battery technology.

Now, Ms. Mikolajczak is assuming the role of vice president of manufacturing engineering at QuantumScape, starting in July. This move necessitated her resignation from the QuantumScape board, as disclosed in a recent filing.

Mikolajczak’s Background

Ms. Mikolajczak possesses extensive experience in the research and advancement of lithium-ion battery technology. Her earlier work involved technical consulting at Exponent, concentrating on the safety and quality of lithium-ion cells and batteries.

She subsequently held a senior management position at Tesla, focusing on cell quality and materials engineering. During her tenure at Tesla, she was instrumental in the development of battery cells and packs for the Model S, Model X, Model 3, and Roadster Refresh vehicles.

Prior to Panasonic, Mikolajczak served as director of engineering at Uber Technologies, concentrating on battery development for rideshare vehicles. In 2019, she joined Panasonic Energy of North America as vice president of battery technology, leading a team exceeding 200 engineers and technical staff.

Her leadership at Panasonic focused on enhancing lithium-ion cell manufacturing and implementing cutting-edge cell technologies for mass production at the Gigafactory in Sparks, Nevada, specifically for Tesla.

Tesla Engineering Departure

Scott Sims, formerly director of engineering at Tesla, concluded his employment with the company this month. His responsibilities encompassed the design and engineering of vehicle user interfaces, streaming services, video games, and mobile applications.

Notably, Sims oversaw cloud computing infrastructure related to the Tesla mobile app, a vital tool for vehicle owners.

Rivian IPO Preparations

Rivian has reportedly selected underwriters for an initial public offering, as reported by Bloomberg on Friday. The company is potentially valued at $70 billion.

Confirmation of some, but not all, of Bloomberg’s reporting has been obtained. This development is being closely monitored and investigated.

Rumors of a potential Rivian IPO had circulated previously, but Bloomberg provided the key details.

Key Appointment at Rivian

The appointment of Ger Dwyer as vp of business finance at Rivian appears to be a strong indicator of the company’s preparation for an IPO. This information was initially shared by Dwyer on LinkedIn.

Previously, I reported on Dwyer’s departure from his position as CFO at Waymo. At the time, it was noted that the demand for experienced CFOs was increasing alongside the surge in public offerings, including those facilitated by special purpose acquisition companies.

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Recent Developments and Industry Updates

A wealth of news has emerged recently. Let's delve into the key highlights.

Self-Driving Technology

Aurora has released a blog post detailing new information regarding its testing and strategy for self-driving trucks in Texas. The company indicates that initial commercial trials will involve transporting goods along several “middle-mile” routes within the state. These trucks will feature a safety driver, operating autonomously between designated hubs. This hub-based approach mirrors strategies adopted by other autonomous vehicle (AV) companies, at least in the current phase of development. Aurora anticipates eventually completing routes without the need for intermediate consolidation points for shippers and carriers with established hubs and substantial freight volumes.

Furthermore, the company is expanding its presence in Texas with a second office, signaling growth in its workforce within the region.

Germany’s parliament has approved legislation enabling the operation of driverless vehicles on public roads starting in 2022, establishing a framework for the widespread deployment of robotaxis and delivery services. While autonomous testing is already permitted, this new law will allow for driverless operation without a human safety operator. Potential initial applications include public passenger transport, business and supply trips, logistics, employee shuttles, and transport to medical and retirement facilities.

PAVE, or Partners for Autonomous Vehicle Education, recently conducted a workshop with local governments across Ohio. This educational initiative, undertaken in collaboration with Drive Ohio, was not open to the public. However, Ed Niedermeyer, co-host of the Autonocast podcast and PAVE’s director of communications, shared insights into the workshop’s proceedings.

PAVE emphasizes its commitment to providing public policymakers with factual information to facilitate informed decision-making, rather than engaging in policy advocacy. This pilot program will serve as a foundation for a broader curriculum, recognizing the complexity of issues surrounding AVs and the potential impact of these workshops on elected officials.

Ed Niedermeyer highlighted the challenge of presenting potentially contentious topics, such as policy and regulation, in a neutral and unbiased manner. He emphasized the value of input from PAVE’s public sector and academic advisory councils. He also noted the practical value of sharing best practices developed by PAVE members and advisors during early AV deployments.

Kodiak Robotics, a U.S.-based self-driving truck startup, is collaborating with South Korean conglomerate SK Inc. to explore the potential deployment of its autonomous technology in Asia. Kodiak’s co-founder and CEO, Don Burnette, characterized the agreement as a preliminary step toward a commercial venture in Asia, but the extensive reach of SK Inc. should not be underestimated. SK Inc., the holding company of SK Group, comprises over 120 operating companies, including those involved in the logistics sector.

The partnership aims to facilitate the sale and distribution of Kodiak’s self-driving technology throughout the region. Kodiak will assess the integration of SK’s products, components, and technologies into its autonomous system, including AI microprocessors and advanced emergency braking systems. The companies will also collaborate on providing fleet management services to customers in Asia.

Electric Vehicle Sector

Ford Motor, following the unveiling of its F-150 Lightning electric truck, has increased its investment in EVs to $30 billion by 2025, a rise from its previous commitment of $22 billion by 2023. This increased financial commitment was announced during the company’s investor day as part of its Ford+ EV and battery development strategy.

Ford anticipates that 40% of its global vehicle volume will be fully electric by 2030. In the first quarter of 2021, the company sold 6,614 Mustang Mach-Es in the U.S., and has already received 70,000 customer reservations for the F-150 Lightning since its unveiling.

Hyundai recently showcased the all-electric Ioniq 5 crossover in North America. A noteworthy feature is the development of an in-car payment system that will debut with the Ioniq 5, enabling drivers to pay for EV charging, food, and parking. The payment system will launch with Domino’s, ParkWhiz, and Chargehub when the vehicle arrives in North America in fall 2021.

Lordstown Motors’ initial optimism regarding its SPAC funding has not materialized, as reported by Alex Wilhelm and Aria Alamalhodaei. The company’s first-quarter earnings revealed significant financial challenges, including higher-than-expected expenses, the need for additional capital, and a reduction in projected Endurance vehicle production from approximately 2,200 to 1,000 units. Consequently, the company is expected to consume more cash than previously anticipated and is further from mass production than initially promised.

Lucid Motors has revealed the in-cabin technology of its upcoming electric luxury Air sedan. Derek Jenkins, head of design at Lucid, provided a detailed overview of the vehicle’s technology, extending beyond the prominent curved 34-inch display and secondary touchscreen. The user experience, particularly the underlying software, is crucial for all vehicles, but is especially critical for the success of an electric vehicle model.

Lucid appears to be on the right track, though a comprehensive evaluation will require a test drive of the Air. Such an opportunity is eagerly anticipated.

Rivian has postponed deliveries of the R1T Launch Edition, the limited-edition release of its first “electric adventure vehicles,” by one month. Customers who preordered can now expect to receive their pickup trucks in July instead of June, with Launch Edition deliveries concluding by spring 2022. The delay is attributed to logistical challenges, including shipping container delays and the ongoing chip shortage, as well as ensuring the readiness of the service infrastructure. Rivian noted that it has been less affected by the chip shortage compared to other manufacturers due to the lower chip requirements of its products.

Tesla experienced a busy week with several notable developments. The company has established a data center in China to localize data storage, with plans for additional facilities in the future. This move is in response to new Chinese government regulations governing data collection and utilization by camera- and sensor-equipped automakers, requiring that personal and important data be stored within China.

Two seemingly contradictory safety-related announcements were also made by Tesla. First, the company began delivering Model 3 and Model Y vehicles without radar, aligning with CEO Elon Musk’s vision of relying solely on cameras and machine learning for its advanced driver assistance system and safety features. This decision has drawn criticism from the National Highway Traffic Safety Administration, Consumer Reports, and the IIHS regarding safety concerns.

Conversely, Tesla has finally activated the in-cabin camera in new Model Y and Model 3 vehicles, responding to persistent calls from industry and safety advocates. The camera will function as a driver monitoring system, addressing concerns about misuse of the Autopilot system, as evidenced by numerous videos posted online showing drivers neglecting their responsibilities while the system is engaged.

Additional Industry News

Apex.AI has appointed Paul Balciunas as its CFO. Balciunas previously served as CFO of Canoo and held executive positions at Deutsche Bank, including leading the initial public offering for Tesla in 2010, with a subsequent focus on auto tech and new mobility companies.

Blyncsy, a Utah-based movement and data intelligence company, has launched Payver, an AI-powered technology that utilizes crowdsourced video data to provide transport agencies with up-to-date information on road maintenance and improvement needs. Blyncsy is offering this service to governments at a reduced cost with no long-term commitment. The Utah Department of Transportation will pilot the program starting June 1, deploying Payver in the Salt Lake County region, covering over 350 road miles. Blyncsy plans to announce additional pilots in other states in the coming weeks.

Scale AI has hired Mark Valentine to lead its federal-focused division. Valentine brings extensive experience, including service as a commander in the U.S. Air Force, senior military advisor to FEMA, and most recently, GM of national security for Microsoft. He will oversee Scale’s government partnership efforts.

Scale AI has also appointed Michael Kratsios, former CTO of the White House, as managing director and head of strategy, focusing on accelerating AI development across industries. Kratsios joined the company at the end of the first quarter.