Automotive Ventures Weekly Intel Report | Jan 29 2024
Intel Report: Mobility News
BY AUTOMOTIVE VENTURES | JAN 29 2024 | VIEW ONLINE
What We're Reading:
Toyota Chairman Akio Toyoda believes battery electric vehicles will reach at most 30% market share, with the rest taken up by hybrids, hydrogen fuel cell and fuel-burning cars. The world’s No. 1 carmaker has pushed back against criticism of falling behind in the transition to EVs, saying that its pioneering hybrid drivetrains, hydrogen technology and holistic approach will ultimately prove to be the right approach for the business, customers and the environment. | Automotive News ($)
Per preliminary data from JATO, these are the top 3 best-selling cars in 2023 on the planet. | The EV Universe
Elon Musk said that Chinese automakers will "demolish" global rivals without trade barriers, underscoring the heat the U.S. electric vehicle market leader faces from the likes of BYD, who are racing to expand worldwide. | Reuters ($)
59% of the EVs sold through U.S. dealerships in December were leased rather than bought outright — this calculation excludes the market leader Tesla, whose leasing share fell to 2% of deliveries in the fourth quarter. Tesla, which doesn’t have a banking arm like the traditional automakers, might intentionally be offering uncompetitive leasing terms so it doesn’t have to shoulder the residual-value risk within its core business. Tesla’s customers are the ones exposed to falling residual values instead. | The Wall Street Journal ($)
Americans need an annual income of at least $100,000 to afford a car, at least if they're following standard budgeting advice, which says you shouldn't spend more than 10% of your monthly income on car-related expenses. That means that more than 60% of American households currently cannot afford to buy a new car. For individuals, the numbers are even worse, with 82% of people below the $100,000 line. | Newsweek
The median range for an electric vehicle grew to 270 miles for the 2023 model year, a nearly 200-mile climb from the 82 miles of 2013, according to the EPA. The median increased 13 miles from the 2022 model year. The average driver in the U.S. covers 37 miles per day, according to the U.S. DOT. That means a full charge of 270 miles would enable more than a week of commuting for the average driver. | Automotive News ($)
A coalition of nearly 5,000 car dealerships sent a second letter to President Joe Biden, urging him to "hit the brakes" on an EPA proposal that is expected to be finalized this year. Biden and his administration have yet to respond to the first letter. | Automotive News ($)
The average repair bill for a traditional vehicle today runs $4,437. For an EV, the average fix is 49% higher, or $6,618, thanks to their added tech gadgetry and the special handling required to work with their electric powertrains. Insurers—who watched the average collision insurance claim soar 64% from 2018 to 2022, to $5,992, according to the Insurance Information Institute—have moved to offset the higher repair costs by aggressively hiking drivers’ premiums. | Bloomberg ($)
British drivers pay twice as much to insure electric vehicles as they do for combustion-engine models. Higher repair costs, more time spent in workshops and a lack of mechanics trained to fix EV batteries contribute to the difference. | Bloomberg ($)
The pain for home- and auto-insurance customers is quickly becoming investors’ gain. Insurance giants’ shares and profits are hitting records, thanks in part to steep rate hikes. | The Wall Street Journal ($)
The UAW’s Shawn Fain won Detroit auto workers their best deals in decades. Now he’s out to organize Tesla and the rest of the industry’s EV jobs. | Bloomberg ($)
Lincoln Motors shed 100 U.S. dealerships in 2023 and plans to slash 100 more this year as it seeks a smaller, more profitable retail network. By year-end, Ford's luxury arm expects to have roughly 400 stores, about 40% fewer than in 2021 but still more than most other luxury brands have. | Automotive News ($)
Vroom is shutting down its online used car marketplace and shifting all of its resources and capital into two business units focused on auto financing and AI-powered analytics. | TechCrunch
Black Book introduced the industry's first electric vehicle (EV) valuations, dubbed Battery Adjusted Values™, which incorporate battery condition adjustments based on data from Recurrent. | GlobeNewswire
Apple, reaching a make-or-break point in its decade-old effort to build a car, has pivoted to a less ambitious design with the intent of finally bringing an electric vehicle to market. After previously envisioning a truly driverless car, the company is now working on an EV with more limited features, looking to introduce the car in 2028 at the earliest. | Bloomberg ($)
A Chinese startup has unveiled a new nuclear battery that it claims can generate electricity for 50 years without the need for charging or maintenance. The company said the battery works by converting the energy released by decaying isotopes into electricity. | NUCNET
California senator Scott Wiener wants "SAFER" roads (the name of the bill he proposed), which would electronically cap a new vehicle's top speed to 10 mph over the speed limit. | The Drive
Tesla wants people to think of them as a tech company, but snags keep getting in the way. Despite being valued like a tech company, Tesla has run into an old-fashioned car-industry problem: the model cycle. | The Wall Street Journal ($)
Will modern battery-electric vehicles ever become collector cars? Most have a very limited lifespan. The primary factor limiting EV longevity is battery degradation. Lithium-ion batteries, used in most EVs, lose capacity over time: roughly 2.3% per year. A commonly accepted lifespan for the average EV battery is eight years. | Wards Auto
The Volta Foundation has released their 295-page "Battery Report": summarizing the most significant developments in the battery industry. | Volta Foundation
RMI released its new battery report, and this article highlights six key insights. | RMI
In the U.S., about 44 million drivers reported damage to their vehicles from potholes in 2022, a massive 57% increase over 2021, according to AAA. | BBC
Worldwide, there are 280 million electric mopeds, scooters, motorcycles and three-wheelers compared with just 20 million passenger EVs. Looking back in five years, we may conclude that electric cars were made for American suburbia and for almost nowhere else. | Financial Times ($)
From Crunchbase: Median and average seed round sizes in the U.S. have climbed through the past decade. In 2023, median and average raises are not far from the peak of 2022, and were well above pre-pandemic. | Crunchbase
After a freight train carrying hazardous chemicals derailed a year ago in East Palestine, Ohio, forcing the evacuation of hundreds of residents and upending life in the town for months, the rail industry pledged to work to become safer, and members of Congress vowed to pass legislation to prevent similar disasters. No bill was passed. And accidents went up. Derailments rose at the top five freight railroads in 2023. | The New York Times ($)
We have a new "Car of the Week": a 2011 Gumpert Apollo S. | Collecting Cars
Have a great week,
Steve Greenfield
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Notable & New
It seems like Recurrent is being cited in Automotive News almost daily. | Automotive News ($)
Steve is looking forward to catching up with Jim Fitzpatrick from CBT News live at the National Automobile Dealers Association (NADA) convention this week. | CBT News ($)
Congratulations to Jim Roche from WarrCloud for his recognition as a 2024 Titan 100, which recognizes the top 100 CEOs and C-Level Execs in St. Louis. | Titan 100
Thanks to Transport Topics for the great coverage (no pun intended) of Automotive Ventures portfolio company Wrapmate. | Transport Topics
Steve will be your MC at the new Auto Tech Investments conference at NADA this week: Friday, Dec 2nd. | Auto Tech Investments
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Companies to Watch
Revoy allows truck operators to keep their existing trucks, but burn less diesel fuel. The Revoy EV adds electric power to trucks, which then burn less diesel and save money. | Revoy
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