Tesla TSLA This autumn 2021 car supply and manufacturing numbers

Visitors looking at a China-made Tesla Model Y electric vehicle at Auto Shanghai 2021 in Shanghai, China on April 27, 2021.

Qilai Shen | Bloomberg | Getty Images

Tesla am Sonntag said it delivered 308,600 electric vehicles in the fourth quarter of 2021, beating the previous record for a single quarter and analyst expectations. The automaker produced a total of 305,840 fully electric vehicles in the same period.

For the whole year, Tesla has delivered 936,172 vehicles, an 87% increase over 2020 when the company posted its first annual profit on deliveries of 499,647.

In the third quarter of 2021, vehicle deliveries reached 241,300, Tesla’s best quarter to date.

According to a consensus created by FactSet, Wall Street analysts had expected 267,000 Tesla deliveries in the fourth quarter and 897,000 for the whole of 2021.

The deliveries are closest to the sales reported by the CEO Elon Musks Electric car company.

Tesla summarizes the delivery figures of the higher-priced vehicles Model S and X as well as the cheaper vehicles Model 3 and Y. The company does not break down sales or production numbers by region.

Deliveries of the flagship Model S sedan and the Falcon Wing SUV Model X accounted for almost 3% of Tesla’s total deliveries in 2021. Model 3 and Model Y deliveries totaled 296,850 in the last quarter of 2021 and 911,208 for the full year.

Tesla manufactures Model 3 and Y vehicles at its Shanghai and Fremont, Calif., Facility, but only manufactures the X and Y models in Fremont.

Shake off bottlenecks

At Tesla’s annual shareholder in 2021 meeting, Musk lamented a year of supply chain problems that made it difficult to source enough microchips and other unspecified parts.

During the second year of a global coronavirus pandemic, Tesla increased vehicle deliveries by ramping up production at its first overseas factory in Shanghai and making engineering changes to the cars it produced in Fremont, California, some parts together.

Specifically, Tesla announced in May that it Remove radar sensors of Model 3 and Model Y vehicles built for customers in North America. These cars now rely on a camera-based system to enable Tesla’s driver assistance functions such as traffic-dependent cruise control or automatic lane keeping.

looking ahead

Musk has announced plans to increase Tesla’s vehicle sales to 20 million annually over the next nine years. To achieve that growth, Tesla is poised to begin production of the Model Y crossover at its new Austin, Texas factory this year. The aim is to open another factory in Brandenburg, Germany, afterwards.

The company recently relocated its headquarters to Texas. The CEO announced the plan in October, and Tesla made it official in early December.

Last month, Musk wrote on Twitter, with approximately 68.4 million followers, “Giga Texas is an investment of more than $ 10 billion over time that will create at least 20,000 direct and 100,000 indirect jobs.” According to public filings, Tesla plans to spend $ 1.6 billion on the Austin, Texas factory, which is now in phase one.

Despite advances and ambitions in Texas, Tesla has postponed plans to start mass production of its Cybertruck, a distinctly angular pickup truck, until 2023. The company’s semi and redesigned roadster are also still in the works.

Industry outlook

The company now dominates battery electric vehicle sales in the United States and much of the world. However, it is expected to lose market share overall as competitors launch their own all-electric models.

For example, Toyota told investors it will be Invest 35 billion dollars To bring 30 battery electric vehicles to market by 2030. Rivian recently started deliveries his battery-electric pick-up and SUV. and ford no more reservations for his F-150 flash Electric pickup after 200,000 orders.

Tesla sales are still expected to grow with overall demand for electric vehicles, which is in part driven by climate regulation.

Hoping to reduce air pollution from traffic, including states California and new York, are following in the footsteps of several European countries and cities by setting a date by which the sale of most gas-powered vehicles will be banned.

By 2030, Alix Partners predicts that around 24% of new vehicles sold worldwide will be fully electric.

– CNBC’s Jessica Bursztynsky and Jordan Novet contributed to the coverage.

Nissan to speculate $17.6 billion to ramp up electrical car providing

A Nissan electric concept car will be on display in the company’s showroom in Yokohama, Japan on November 29, 2021.

KAZUHIRO NOGI | AFP | Getty Images

Japanese automobile giant Nissan will invest 2 trillion yen (approximately $ 17.6 billion) over the next five years to accelerate the electrification of its product line.

Nissan announced on Monday that it would launch 23 new electrified models by 2030, 15 of which will be fully electric.

By the end of the decade, the company is aiming for a 50% electrification mix for its Nissan and Infiniti brands.

On the battery front, the company plans to launch all-solid-state batteries, or ASSB for short, by 2028. A pilot plant for ASSB in Yokohama, Japan, will be completed “in fiscal year 2024”, called Nissan.

In a speech outlining the plans, Nissan chief Makoto Uchida said his company is focused on ASSB’s internal development.

“This enables us to double the energy density compared to current lithium-ion batteries,” he said. “With smaller and thinner batteries, we can offer a flexible layout with more dynamic performance and expand it to larger segments like pickup trucks.”

Nissan is one of several well-known companies pursuing an electrification strategy. In March, Volvo Cars announced a “Full Electric Car Company” by 2030. Elsewhere, BMW Group By 2030, at least 50% of deliveries should be fully electric vehicles.

It comes at a time when major economies around the world are trying to reduce the environmental footprint of transport.

Read more about electric vehicles from CNBC Pro

The UK, for example, wants to stop sales of new diesel and gasoline cars and vans by 2030. From 2035, all new cars and vans will have to have zero tailpipe emissions.

Elsewhere, the European Commission, the executive branch of the EU, aims to reduce CO2 emissions from cars and vans by 100% by 2035.

Earlier this month, signatories of a statement at the COP26 climate summit said they will “work in leading markets by 2040 and no later than 2035 to ensure that all sales of new cars and vans worldwide are emission-free”.

While the US, China and the automakers including Volkswagen, Toyota and Nissan were absent from the statement, signatories included the governments of the United Kingdom, India and Canada, and automobile companies such as ford, General Motors and Volvo cars.

Speaking to CNBC’s Steve Sedgwick on Monday morning, Nissan’s Uchida said his company must be “equipped and ready.” [for] how the market for … electrification will develop. “

While charging, Uchida emphasized the importance of collaboration. “We don’t just concentrate [at] … Nissan but also in the alliance [on] how we can further … contribute to building the infrastructure with regard to the charging stations. “

Renault-Nissan-Mitsubishi is an automotive alliance founded in 1999. Mitsubishi joined the strategic partnership in 2016.

Tesla TSLA Q3 2021 car supply numbers

Tesla delivered 241,300 electric vehicles in the third quarter of 2021, the company announced on Saturday.

Deliveries for the quarter exceeded expectations. Analysts predict that Tesla will deliver around 220,900 electric cars by September 30, according to StreetAccount estimates.

The company produced 237,823 cars through September 30, 2021, Tesla said in its report. 228,882 of these were for the Model 3 and Y models, the cheaper mid-range offers.

The remainder amounted to 8,941 of the S and X models.

Last quarter, Tesla shipped 201,250 vehicles and produced 206,421 cars, although production of its S and X models fell below 2,500.

“Our delivery count should be viewed as a bit conservative, as we only count a car as delivered when it is handed over to the customer and all papers are correct. Statement.

Tesla does not break down the delivery figures by model, nor do they have any sales or production figures from China compared to the USA (deliveries are the company’s closest approximation of vehicle sales.)

Elon MuskThe electric vehicle maker now manufactures cars at its Shanghai facility and its US facility in Fremont, California, while continuing to manufacture batteries domestically with Panasonic at its sprawling facility outside of Reno, Nevada.

For the period ending September 30, 2021, Tesla started shipping some lithium iron phosphate batteries from China for use in Model 3 vehicles for customers in the US

Tesla has also temporarily shut down some operations at its vehicle assembly plant in Shanghai, where it makes cars for customers in China and Europe. The stops have been attributed to a global semiconductor shortage that has challenged Tesla year-round and plagued the entire auto industry.

New battery electric models, especially Rivians R1T and the long-delayed luxury of Lucid Motors Lucid Air limousine, are now in production and are being sold to customers in the United States, an indication that competition is intensifying for Tesla in key markets.

At the same time, interest in electric vehicles is growing, even in the US, which is lagging behind China and Europe.

According to a June 2021 survey by Pew research, 39% of Americans say that “the next time they buy a vehicle, there is at least a certain chance they are seriously considering an electric drive.” About 7% of Americans said they have already bought a battery-only electric or hybrid electric vehicle.

This demand is only encouraged by rising fuel costs and environmental regulations.

For example in China, Government programs make it much faster and cheaper to get license plates for electric vehicles than vehicles with internal combustion engines. The Chinese government has also offered subsidies, tax breaks, and invested in charging infrastructure to encourage the production and adoption of electric vehicles.

Meanwhile, President Joe Biden has a volunteer destination for half of all new car sales in the USA there should be electric models by 2030 – including battery electrics, plug-in hybrids and hydrogen fuel cell vehicles. The move is part of the Biden government’s commitment to Cut US emissions by half by 2030.

Piper Sandler Senior research analyst Alexander Potter, a bull with a target price of $ 1,200 on Tesla stock, wrote in a note on Sept. 27:

“Tesla’s share of the battery electric vehicle (BEV) market will almost certainly decrease – as many competitors have not yet started selling BEVs. However, we assume that Tesla’s share of the overall market will continue to grow, and we emphasize that BEV’s market share is falling. ”Should not be taken as a bearish signal … After all, Tesla competes with vehicles of all types – not just other electric vehicles . “

Sam Fiorani, vice president of Auto Forecast Solutions, agreed. He said, “Tesla is so far ahead of the competition in the EV market that it is unlikely that anyone will overtake them anytime soon. The Tesla cult will bind buyers to the brand in the years to come. Even Audi and Mercedes are difficult to acquire the same aura. While their market share will decline, Tesla will maintain the leadership position for years to come without any major missteps within the company. “

Rivian, electrical car maker backed by Amazon and Ford, information to go public

Amazon’s new delivery truck

Amazon

Rivian Automotive, a company that develops electric vehicles including commercial vans for Amazon, filed for an IPO on the Nasdaq on Friday. The company aims to trade on the Nasdaq under the ticker symbol “RIVN”.

It is Paperwork shows Rivian posted a net loss of $ 994 million on zero revenues for the first six months of 2021. In 2020, the company’s net loss was $ 1.02 billion.

The company wrote in its submission: “We are a company in the development phase and have not yet generated any significant revenue. Vehicle production and deliveries began in September 2021.”

CEO RJ Scaringe, who holds a Ph.D. from Sloan Automotive Laboratory at the Massachusetts Institute of Technology, founded in 2009 Rivian. The company is based in Irvine, Calif., And employed 6,274 people at the end of June. It operates a vehicle assembly plant in Normal, Illinois.

Amazon and ford everyone owns more than 5% of the company. Peter Krawiec, Amazon’s Senior Vice President, Global Corporate and Business Development, sits on Rivian’s board of directors.

Rivian’s commercial vehicle business will be heavily dependent on Amazon for the foreseeable future. The company said Amazon has some exclusive rights to purchase Rivian electric delivery vehicles for at least four years, and then the right of first refusal thereafter.

Rivian beat Tesla, GM and ford launched with an electric pickup truck, the R1-T, which has already received rave reviews.

– CNBC’s Lora Kolodny contributed to this report.

SEE: Rivian CEO: We’re ready for the electric pickup race

Consolidation in China’s electrical automobile house is ‘inevitable’

The electric vehicle sector is experiencing its “most exciting moment” – and a consolidation in the industry is inevitable, says Helen Liu of Bain & Company.

“I would say that consolidation is an inevitable trend in this industry,” Liu, a partner in the consulting firm, told CNBC’s Capital Connection on Tuesday. She cited reasons such as the capital-intensive and technology-heavy nature of the electric vehicle sector.

“Historically, we’ve seen invisible hands like the market, and also visible trends, regulations that continually navigated the industry through the consolidation trend,” she said.

On Monday, China’s Minister of Industry and Information Technology the country has “too many” EV manufacturers. These comments sparked fears about further regulatory action by Beijing, this time targeting the autonomous vehicle sector after earlier moves in other industries such as private education and technology.

IHS Markit’s Huaibin Lin said he saw little chance of regulatory interference from Beijing in the short term. Demands by the industry and information technology ministry for a consolidation of the auto sector are not new and have taken place in the last 20 years, he told CNBC’s “Squawk Box Asia” on Tuesday.

“We are in [an] an ever-growing market where we have seen tremendous growth in automotive sales over the past 20 years, “said Lin, manager China Automotive at IHS Markit, adding that the new energy vehicle market is currently experiencing very strong momentum.

“Are we going to see any drastic consolidation in the industry itself? We think there will be a big question mark as long as the market goes on,” he said.

For the next 10 years you will see very fierce competition within the new energy vehicle industry. Nobody knows who will actually survive in the end.

Helen Liu

Partner, Bain & Company

Liu of the consulting firm Bain agreed, saying that the momentum for growth and the outlook for the sector are currently very positive. This is underpinned by factors such as supporting guidelines and, above all, customer acceptance.

“Based on our Bain study this year, we found that the acceptance of electric cars by Chinese customers is leading global trends and we also believe it is steadily increasing,” she said.

China’s electric boom

For its part, China previously mentioned that it would be happy By 2025, 20% of all new cars sold are to be New Energy Vehicles.

Still, the two analysts say it’s too early to say who could be a clear winner in China’s EV space.

“I think it might be a little too early to say which brand or name will win in the end,” said Liu of Bain.

Read more about electric vehicles from CNBC Pro

Beyond domestic competition, IHS Markit’s Lin said China’s electric car makers are also expected to face increased capital competition over the next decade.

Some of this competition could come from long-standing established companies in the automotive sector, he said, with traditional internal combustion engine vehicle manufacturers such as: Volkswagen, BMW and Daimler’s Mercedes is now forging “drastic” electrification strategies.

“You will see very fierce competition in the new energy vehicle industry for the next 10 years,” Lin predicted. “Nobody knows who will actually survive in the end.”

As electrical automobile gross sales surge, discussions flip to noise and security

Martin Pickard | Moment | Getty Images

Hyperloop, Hydrogen powered trains train, and air taxis. As the 21st century progresses, the way people get from A to B is on the cusp of a major change driven by design and innovation.

While the above technologies may still be a few years away from widespread adoption, that doesn’t mean the change isn’t already underway.

Around the world, national and local governments are trying to reduce emissions and improve air quality in cities, with many betting on a growing sector: battery electric vehicles.

There is undoubtedly a dynamic behind the industry. According to a recent report by the International Energy Agency, around 3 million new electric cars were registered last year. a record amount and a 41% increase compared to 2019.

Looking ahead, the IEA says the number of electric cars, buses, vans and heavy trucks on the roads – its forecast doesn’t include two- and three-wheel electric vehicles – is projected to reach 145 million by 2030.

If governments step up efforts to meet international energy and climate goals, the global fleet could grow even further, reaching 230 million by the end of the decade.

A changing world

As the number of electric vehicles on the world’s roads increases, society must adapt.

Extensive charging networks, for example, need to be rolled out to meet increased demand and to dispel persistent concerns about “range anxiety” – the idea that electric vehicles cannot make long journeys without losing power and getting stranded.

Another area in which we will notice changes concerns noise: electric vehicles are not only emission-free, but also significantly quieter than their diesel and gasoline cousins.

Read more about electric vehicles from CNBC Pro

This means less noise pollution in urban areas – a clear thing – but it also poses a potential challenge for other road users, especially those with vision problems.

“It can be very difficult for blind or visually impaired people to judge traffic,” Zoe Courtney-Bodgener, Policy and Campaigner for the UK’s Royal National Institute of Blind People, told CNBC in a telephone interview.

Courtney-Bodgener explained that more and more “quiet” modes of transport are being used, using the example of bicycles and larger electric and hybrid vehicles.

“If you can’t always see these vehicles reliably or with your eyesight, the sound is even more important,” she said.

“And if the noise is not there or is not loud enough to reliably detect these vehicles, there is of course a risk, because … you cannot reliably know when a vehicle is approaching you.”

The law of the land

It should be noted that laws and technology have been put in place around the world to address this problem.

For example, in the European Union and the United Kingdom, all new electric and hybrid vehicles must use an audible vehicle warning system, or AVAS for short, from July 1st. This will build on and expand on the previous regulations that came into force in 2019.

According to the rules, the AVAS should step in and make noises when the speed of a vehicle is less than 20 kilometers per hour (about 12 miles per hour) and when it is reversing.

According to a 2019 UK government statement, the sound can “be temporarily turned off by the driver if necessary”.

According to the EU regulation, the noise generated by the AVAS should “be a continuous tone that informs pedestrians and other road users of a vehicle that is in operation”.

“The noise should easily reflect vehicle behavior,” it adds, “and should sound similar to a vehicle of the same category equipped with an internal combustion engine.”

RNIB’s Courtney-Bodgener told CNBC that while her organization was “happy” that the AVAS policy had been translated into UK law, it had not “done everything we asked of it”.

She went on to explain how the speed at which the AVAS turns on might need to be increased to 20 or 30 miles per hour.

“We are not convinced that if … a vehicle is traveling at a speed of 21 miles per hour, for example, it would generate enough noise on its own to be reliably recognized by noise.”

Another area of ​​concern concerns older vehicles. “There are already many, many electric and hybrid vehicles that were produced before this legislation came into effect that did not have the sound technology,” she said.

There are currently no plans to retrofit these, she added. “This is worrying because there are already thousands of vehicles on the UK’s roads that do not have AVAS technology.”

From the industry’s point of view, it appears to be satisfied with the existing regulations. In a statement emailed to CNBC, AVERE, The European Association for Electromobility, told CNBC that it supported the “current legislative status quo”.

“The limit of 20 km / h is sufficient, as other noises – especially rolling resistance – take over at this level and are sufficient for pedestrians and cyclists to hear approaching electric and hybrid vehicles,” added the Brussels organization.

“In fact, the requirement of additional noise above 20 km / h would deprive European citizens of one of the main advantages of electrification: lower noise levels at city speeds.”

Noise pollution can indeed be a serious problem. According to the European Environment Agency, over 100 million people in Europe are “exposed to harmful environmental noise”. The agency classifies road traffic noise as “a particular public health problem in many urban areas”.

Regarding the need for modernization of older cars, AVERE said: “Only a very small proportion of the electric vehicles on European roads would be subject to retrofitting obligations, as many existing vehicles were already equipped with AVAS in anticipation of the new ones and that the rules were introduced in good time to meet the expected mass consumption of To support electric vehicles in the years to come. “

Should it emerge that “additional requirements” are needed, AVERE is ready to work with policy makers.

The future

The discussions and debates on this topic are likely to go on for a long time and it is clear that a balance will have to be found in the future.

Whether you think current legislation goes far enough or not, the fact is that these types of systems will become an increasingly important feature of urban travel in the years to come.

Robert Fisher is Head of EV Technologies at the research and consulting company SBD Automotive.

He emailed CNBC that tests the company carried out had “shown AVAS to be quite effective,” but added that if a pedestrian is unfamiliar with the noise, “may not automatically do so with presence of an approaching “Connect Vehicle.”

“Currently, AVAS is mainly hampered by inconsistent legislation and a lack of innovation,” he said, and dared to look positively into the future.

“With the move away from the internal combustion engine, this technology has the potential to become an integral part of a car’s character, a point of brand differentiation and the ability to save lives.”

Jefferies on the carbon challenges in electrical car manufacturing

According to Jefferies’ Simon Powell, electric vehicle manufacturing is currently facing the “embedded carbon” challenge.

“To get the environmental dividend that governments are seeking, users will need to store it longer and drive it further than a traditional combustion-energy vehicle,” said Powell, director of global thematic research for the company. said CNBC’s “Road signs Asia” On Wednesday.

He explained that a “large amount” of carbon is released when materials like steel, aluminum and glass are made and put together to make vehicles. He said the problem is exacerbated with electric vehicles, which are currently heavier on average than their gasoline-powered counterparts.

“When they leave the factory, these (electric vehicles) are at a disadvantage,” he said. “They contain more steel. The brakes are bigger. The batteries are certainly heavier.”

The relatively higher weight of electric vehicles today is the result of manufacturers’ focus on the range of these cars, Powell said. In contrast to cars, which have been powered by combustion engines for decades, the charging infrastructure for electric vehicles is much less developed worldwide.

Meaning of “green steel”

However, Powell predicted that the “embedded carbon” in electric vehicles is expected to decrease to levels comparable to conventional vehicles.

“The way this whole thing is being resolved is green steel,” he said. “The use of hydrogen in the steel manufacturing process must also be examined.”

“I don’t think many people are talking about greening the steel industry,” the analyst said, admitting that decarbonising the sector around the world will be “very challenging.”

Read more about electric vehicles from CNBC Pro

Most of the metal today is made from coking coal, while making low-carbon steel is both more resource-intensive and more expensive.

“I think it’s going to take a long time. We’re talking about big investments with … long paybacks, long time horizons,” said Powell.

In the meantime, investors should also monitor battery technology development as more energy dense cells will help reduce the weight and potentially embedded carbon of electric vehicles, Powell said.

Cash & the Legislation: What to find out about motorized vehicle service contracts | Enterprise

Fraudulent sellers of extended vehicle “warranties” took hiatus about a decade ago. That’s because a big player on that stage, US Fidelis, went broke and its owners, brothers Cory and Darien Atkinson, went to jail. Prior to its collapse, US Fidelis had made approximately 1 billion robocalls in a single ten month period to sell its products.

But robocalls (and postcards) from companies warning vehicle owners that the manufacturer’s warranty is expiring and that they must act FAST to protect themselves from costly repairs are on the rise again. (At the Federal Communications Commission, robocalls of this type won the top prize for most complaints in 2020.) So what’s the truth here? After all, manufacturers’ warranties are void and vehicle repairs can be beyond the budget.

In the beginning, vehicle service contracts are not “guarantees” unless they come from the manufacturer of the vehicle. They are also not insurance policies as they are not made by insurance companies. Rather, it is merely a matter of contracts between a vehicle owner and a company who agree, for a fee, not to accept the risk of an “operational or structural error … due to a material or work deficiency or normal wear and tear” covered by a manufacturer’s guarantee.

Additionally, in 2016, Colorado law amended the law on automotive service contracts to protect against tires and wheels damaged by road hazards. stone damaged windshields; Doorbells and other physical injuries that can be mended using paintless repair methods; and lost keys and key fobs. (Have you set any of these prices lately?)

Companies that offer automotive service contracts have great flexibility in setting the terms of the contract. It is therefore important to pay close attention to these terms. Some contracts state what is covered and state that everything else is not covered. Others list what is not covered and state that everything else is covered. Vehicle service contracts are limited in time and kilometers and do not cover the need for repairs resulting from other than normal use of a vehicle, e.g. B. Off-road trips into the mountains or competitions on your local drag strip.

The cost of these contracts varies widely, and as you would expect, a bumper-to-bumper contract will cost more than a powertrain-only contract. If the manufacturer’s warranty is valid for a longer period of time before the service provider takes a risk, the contract costs less. Because of this, if you plan to keep a vehicle beyond the manufacturer’s warranty, you can save money by taking out a service contract when or shortly after purchasing the vehicle. Note here, however, that dealers get a healthy commission on the sale of service contracts and that you will likely get a selling point before you are allowed to leave the dealership.

Because some service contracting companies do a better job than others working under their contracts, this is an issue that you need to address as well. Your regular mechanic will be happy to tell you (probably in detail) the companies to avoid.

When you buy a car service contract, you can take modest comfort in the fact that under Colorado law no one can sell such a contract unless there is an insurance policy from an approved insurance company that protects the contract buyer from default by the contract seller . Failure to meet this requirement is a misleading commercial practice.

Jim Flynn is with Flynn & Wright LLC in Colorado Springs. You can contact him at moneylaw@jtflynn.com.

Electrical automobile agency Lucid Motors to go public in $11.eight billion blank-check merger

The Lucid Air sedan, which is slated to go into production at a facility in Arizona next year.

Clear

Electric vehicle company Lucid Motors plans to go public with a combined stock valuation of $ 11.75 billion and a pro forma stock value of $ 24 billion through a reverse merger with a blank check company founded by veteran investment banker Michael Klein.

The deal between Lucid of Newark, California and Churchill Capital Corp IV is the largest in a series of such amalgamations involving EV companies and blank check companies, also known as Special Purpose Acquisition Companies (SPACs).

Previous SPAC dealt with EV startups like Nikola, Fisker and Lordstown Motors scored less than $ 4 billion in pro forma valuations, but Lucid is ahead of these companies. Lucid will deliver its first vehicle – a Luxury sedan called Air – this spring.

The deal will generate approximately $ 4.4 billion in cash for expansion plans for Lucid, including the current Arizona factory.

Shares of CCIV fell around 30% to $ 40 in expanded trading.

Lucid is run by ex-Tesla Technical director and automotive veteran Peter Rawlinson, who joined the company in 2013 as Chief Technology Officer before adding CEO to his duties in April 2019. He will continue to assume these roles after the business is expected to close in the second quarter, according to the companies.

Lucid was founded in 2007 as Atieva, a name it now uses for its technical and engineering division that supplies batteries for the Formula E electric circuit. The company initially focused on electric battery technology before changing its name to an electric vehicle manufacturer in 2016, three years after Rawlinson joined the company to lead technology development.

Lucid struggled with some difficulty raising capital to fund his plans until he received $ 1 billion from the Saudi Arabian sovereign wealth fund in September 2018.

Rawlinson described SPAC deals last year as easy money, but not enough capital to get a vehicle into production, which companies like Fisker To seek contract manufacturers.

Prior to the announcement at Klein’s company, Rawlinson said the company had the funds to begin producing the air at a facility in Casa Grande, Arizona, southeast of Phoenix.

The new funding is intended to support Lucid in its expansion plans. Rawlinson expects the Air to be the catalyst for a number of future all-electric vehicles, including an SUV starting production in early 2023, and cheaper vehicles across the board.

Lucid currently employs almost 2,000 people. The US is expected to employ 3,000 people domestically by the end of 2022.

The deal includes a total investment of around $ 4.6 billion. It is funded with $ 2.1 billion in cash from CCIV and a fully committed PIPE of $ 2.5 billion at $ 15 per share from the Saudi Arabian state fund, as well as funds and accounts held by BlackRock, Fidelity and managed by others.

Which Electrical Automobile Shares Are Definitely worth the Cash?

Electric vehicles (EV) are a hot investment topic these days. Not so much because they make up a significant proportion of auto sales, but rather because prices of EV-related stocks skyrocket due to future speculation.

President Joe Biden said he wanted the entire federal vehicle fleet to be replaced with electric vehicles. Such an action will be expensive and unlikely to happen quickly, but it is significant news. This is on top of recent government bans in parts of the European Union and elsewhere on banning the sale of gas-powered vehicles at some point over the next 10 to 15 years.

All of these moves are creating additional buzz in the EV investment sector right now, and EV stocks are rising. Tesla (NASDAQ: TSLA) In the last 12 months alone, the stock rose by around 350%. Even a seasoned automaker General Motors(NYSE: GM) The stock is also getting an EV boost, reaching an all-time high compared to their bankruptcy protection filed in 2009.

It’s been difficult for investors to ignore this industry due to the recent spike in prices for EV-related stocks. But which EV stocks are actually solid long-term investments? Some would tell you to go with the young upstart. But I think the benefit – and the value – actually lies in the stocks of traditional automakers.

Image source: Getty Images.

Four EV-only games that could be appealing

Without a doubt, Tesla, currently the best-known EV inventory, is also the most profitable financially. It has updated products and lots of sales. Tesla reported full-year 2020 sales of $ 31.5 billion. According to generally recognized accounting principles (GAAP) Tesla reported earnings of $ 0.64 per diluted share for 2020, which translates to a trailing 12-month P / E of 1,275 times earnings. Tesla shares have a market capitalization of around $ 783 billion. Tesla shares appear to be permanently valued based on future speculation. Estimates of $ 4 per share in 2021 would give the stock a forward P / E ratio of roughly 212 times its earnings potential.

What made investors so in love with Tesla? The obvious pull here is the company’s manufacturing lead over other up-and-coming competitors.

Lordstown Motors (NASDAQ: RIDE) reached its EV popularity for one main reason: a focus on truck manufacturing. Pickup trucks are the most popular sales segment in the auto industry, which makes Lordstown Motors an interesting option. Lordstown is initially focusing on commercial sales, which makes sense as it allows “fleet” deals to be made for a large number of vehicles. By concentrating production at a former General Motors Ohio facility, Lordstown can capitalize on Biden’s goal of building the government’s American-built EV fleet.

But Lordstown Motors hasn’t sold any trucks yet. It currently only has a business plan and a market cap of around $ 4.4 billion. As of September, the company announced that full production would not begin until 2022. As of January 21, Lordstown had non-binding reservations for approximately 100,000 electric vehicles, but no confirmed sales. With an endurance pickup price of around $ 45,000 after a federal EV discount (total base price of $ 52,500), the company has potential sales of $ 5.25 billion for no-obligation orders to date. This suggests that Lordstown stock is currently trading at a discount to future sales (as long as those 100,000 reservations are met).

Another EV company to consider is Lucid Motors. Investors have invested a lot of money Churchill Capital IV (NYSE: CCIV) on a rumor that this SPAC could merge with Lucid. Lucid Motors also has no sales right now (the Lucid Air is expected to hit the market in the spring) but is fascinating because of its ties to Tesla. Lucid’s CEO is Peter Rawlinson, a former chief engineer on the Tesla Model S. Lucid is a highly speculative investment as the craze for it stems from automotive engineering (Lucid claims a range of over 500 miles per charge).

My favorite EV-only game is one that you can’t even buy. Privately owned Rivian has designed two “adventure vehicles” that are attractive to consumers. Rivian has what I consider to be the EV equivalent with their R1T pickup and R1S SUV Stellantisis Jeep brand and should appeal to outdoor enthusiasts with an environmental concern and financial means.

Rivian is rumored to go public this year with a valuation of $ 50 billion. This valuation seems highly speculative, even if Rivian has some appealing traits. Rivian has financial ties and support from Amazon and Ford engine (NYSE: F.). In addition to its sport utility vehicles, Rivian makes electric vehicles for Amazon’s shipping requirements. These order reservations have gone further than some other EV manufacturers.

Tesla is the most recognizable EV name among these four pure games, but Rivian is probably the best bet for investors. Its products are closest to what the American consumer wants, and his dealings with Amazon make them an extremely reliable customer.

Women plug in their electric car

Image source: Getty Images.

One argument in favor of traditional automakers is the best EV investments

While investors seem hot for the EV-only makers, they are ignoring the fact that big automakers are going nowhere. Even traditional vehicles (at least not for some time).

The big auto companies are all working on their own electric vehicles and their traditional vehicles. For example, GM and Ford have the infrastructure and industry expertise to currently manufacture electric vehicles. They continue to control the traditional gas-powered car market, providing investors with the best of all worlds for a fraction of the share price. General Motors trades at 12x profit and Volkswagen (OTC: VWAGY) with almost 20 times the income.

Electric vehicles haven’t really changed consumer demand for cars yet. Names like Ford, General Motors or Toyota (NYSE: TM) still control the auto industry. You have the dealer network that is required for maintenance and repair as well as for sales. Her move to electric vehicles will likely help maintain her current leadership positions.

Truck transport boat

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Ford’s electric F-150 is expected in 2023. The price is estimated at around $ 70,000. As the best-selling pickup of all time, any EV edition of an F-150 is a tough contender. General Motors has its new electric Hummer, which is said to have a range of over 350 miles and can reach 100 miles of chargeability in 10 minutes. This Hummer EV (slated for release this fall) is the main competitor to Rivian’s lineup.

The Porsche brand from Volkswagen is targeting the upcoming Lucid Motors Lucid Air and the high-end Tesla models with their Porsche Taycan. The car has a poor range of under 250 miles, but Volkswagen will continue to push the tech here.

Anyone who thinks that all of these companies will simply disappear is naive. Tesla and Lucid Motors won’t replace them BMW (OTC: BAMXF) and Daimler (OTC: DMLR.Y). These companies will bring together a number of internal combustion engines and electric cars and will continue to be major players in the automotive industry.

Increased competition will change history

For investors focused on short-term returns, EV startups are more attractive than a stock like General Motors. However, if you’re more interested in the wider EV industry dynamics, there is plenty of potential in traditional names. As the involvement of traditional automakers increases, the consumer segment will receive ever more EV options. As a result, every automaker will face more intense competition for market share. In that case, would you like to invest in companies that trade 20 times their actual turnover?

When investingRemember, these EV-only companies are competing for market share that the larger companies already control. General Motors’ recently pledged EV investment strongly suggests that the big guys won’t be giving it up that easily.