Tuesday, December 3, 2024
Rivian gets more government bailout money$!
Rivians got money problems,again!
Rivian Automotive received a conditional $6.6 billion loan from the U.S. Department of Energy's Advanced Technology Vehicle Manufacturing Program to help build a new electric vehicle factory in Georgia:
The loan will help Rivian complete construction on its stalled factory project
The first phase of construction is expected to be completed in 2028, which will increase annual production to 200,000 vehicles
A second phase will increase annual production to 400,000 vehicles
Rivian has also received other government incentives, including:
$1.5 billion in state and local incentives for the Georgia facility in 2022
$827 million in an incentive package from the State of Illinois to expand operations at its Normal facility in May
Rivian is set to receive a $6.6 billion federal government loan to construct its Project Horizon manufacturing facility in Georgia, which will manufacture up to 400,000 vehicles.
The loan will help create thousands of new American jobs and further strengthen U.S. leadership in EV manufacturing and technology.
Rivian plans to begin production at the Georgia plant in 2028, with an initial yearly production run of 200,000 vehicles, and the plant is expected to support up to 2,000 full-time jobs through construction and 7,500 operations jobs by 2030.
The loan is a conditional commitment, and Rivian must meet certain technical, legal, environmental, and financial conditions before the funds are delivered for financing.for complete article:yahoo finance
Friday, August 30, 2024
the cheapest ev's on the market in 2024.......................
Monday, June 12, 2023
Wednesday, May 17, 2023
China's electric car drive, led by BYD, leaves global brands behind
SHANGHAI, April 17 (Reuters) - China's auto market, the world’s largest, is accelerating toward an electric future – leaving established global brands stuck in the slow lane.
When auto executives convene in Shanghai for the auto show starting Tuesday, they will return to a sharply different market from the one they left in 2021 when the industry gathered for a limited event under strict COVID-19 controls.
The biggest change: China-made brands now lead in key segments and their rise has been powered by new electric-drive models that are gaining share at home and overseas.
The biggest winner has been BYD (002594.SZ), which will use the Shanghai show to unveil a new hatchback electric vehicle (EV) for value-seeking buyers and a pricier EV styled as an SUV.
BYD’s sales in China are up almost 69% this year, giving it an 11% share of the overall car market, more than the Volkswagen (VOWG_p.DE) brand or the Toyota (7203.T) brand, according to an analysis of sales data.
"The stratification of this market into clear winners and losers is becoming clear," Bill Russo, founder of consultancy Automobility said in a note issued on Tuesday. "And there are very few winners and a whole lot of losers."
China’s passenger car sales were down 13% in the first quarter, data from the China Passenger Car Association show.
But sales of EVs and plug-in hybrids – an area where Chinese automakers led by BYD now dominate – were up 22%. Sales of internal-combustion vehicles were down by an almost equal margin.
The result has been a double whammy for the likes of Volkswagen, General Motors (GM.N), Honda (7267.T) and Nissan (7201.T). Sales are down and so is market share.
More than 40 auto brands have followed Tesla in cutting prices on EVs since January in a price war that has supported sales of EVs and plug-in hybrid electric vehicles (PHEVs), both of which are classed as “new energy vehicles” in China. It has also cut into industry-wide profitability, analysts say.
THE ‘FINAL BASTION’ FOR COMBUSTION
For years, China’s entry-level market for passenger cars was dominated by combustion-engine cars made by global automakers in partnership with Chinese brands.
But for cars priced between $22,500 and $30,000, this year has been a wipeout for gasoline-only vehicles. Sales were down 20.5% in the first quarter, compared to a 68% gain for EVs and plug in hybrids.
BYD’s Song plug-in hybrid SUV, with a starting price of about $20,000, outsold the Nissan Sylphy, which had been China’s top-selling car for three straight years. BYD’s Dolphin EV, which starts at about $17,000, was ahead of the Volkswagen Passat.
Because of the cost pressure on EVs from battery materials, the entry-level market is likely to be “the final bastion” for gasoline-only vehicles in China, Xu Haidong, deputy chief engineer at the China Association of Automobile Manufacturers said.
In China’s premium market, with prices between about $52,500 and $60,000, electric-drive cars are already the best sellers.
BYD dominates China’s market for plug-in hybrids, cars that have a combustion engine but are capable of being charged and running for shorter distances on electric power.
Plug-ins represent more than half of BYD sales this year, giving the company scale to compete on price across its line-up, analysts say.
TESLA’S ‘HEART AND LUNGS’
Tesla saw a 27% increase in Chinese sales in the first quarter to just over 137,000 of its Model 3 sedans and Model Y crossovers. Tesla also increased share after cutting prices in China by between 6% and almost 14% in January.
That put starting prices for Teslas in China between $7,500 and about $10,700 lower than current U.S. prices, which have also been discounted.
Analysts and investors will focus on what that means for margins when Tesla announces first-quarter results on Wednesday.
“Gaining further share in the key China market will be the hearts and lungs of the Tesla growth story,” Wedbush analyst Daniel Ives said in a note on Monday.
In a further threat to established brands, China’s exports are growing fast, led by EVs and PHEVs. Industry-wide exports from China were up 83% last quarter from a year earlier.
BYD, which markets its cars in Europe and Southeast Asia, had a 13-fold increase in exports from China.
Reporting by Zhang Yan in Shanghai Writing by Kevin Krolicki in Singapore Editing by Mark Potter
*
FOR COMPLETE ARTICLE SEE: https://www.reuters.com/business/autos-transportation/chinas-electric-car-drive-led-by-byd-leaves-global-brands-behind-2023-04-17/
WHY DID FORD CUT TIES WITH RIVIAN TRUCK COMPANY???????
Ford Motor Company has sold a majority of its Rivian shares, according to regulatory filings. Ford’s stake in the electric vehicle maker, which has been dropping steadily since May 2022, is now at 1.15%, or 10.5 million shares.
The sell comes a week after Ford reported a $7.3 billion write-down on its Rivian investment last year. Since February 2022, Rivian’s stock has plummeted almost 70%.
Ford has followed this playbook with Rivian before: Report a write-down, then sell to recuperate some of the losses. Last April, Ford reported a $5.4 billion “mark-to-market loss” on its investment in Rivian. The following month, Ford sold 15 million shares in two separate transactions, bringing its stake in the EV maker below 10%.
Ford’s relationship with Rivian began with a $500 million investment in the precocious EV startup back in 2019. At the time, Ford also said it would build a vehicle on Rivian’s “skateboard” platform. The legacy automaker canceled those plans in November 2021, citing a shift in direction toward building its own lineup of EVs. Four months later, Ford increased its in-house electrification investment to $50 billion through 2026, up from the previous $30 billion by 2025. The automaker also said it would run its EV unit as a separate business from its combustion engine business.
Other companies, like Amazon, have reported several losses from their investment in Rivian. Last week, Amazon reported a $2.3 billion valuation loss in its Rivian stock, which caused a hit to its income.
Why are companies paying the price for investing in the promising, if not troubled, EV company? Recall that Rivian’s stock hit a high of $179.47 per share before falling to the $19.62 it is at today.
Rivian’s stock is down 2.29% in afternoon trading following reports of Ford’s sale.
FOR COMPLETE ARTICLE GO TO:https://techcrunch.com/2023/02/09/ford-sells-majority-stake-rivian/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAACb_fhnSQUnRT8OcAvY0jMU3E1K6Cx7GmpmIwMn1nH1vAMxBZnXQdjSNAf857SldM9Yvxph27MxMIqCyCs0h23m2UX7cTdJWFVP9RKfU6M7H0FzDmrfbEYCPv-AB6Vj8r77qZDCb2jET_oOTi845IRL4otB1GsvI7ROVDzsGtpce
Subscribe to:
Posts (Atom)
