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EV Roundup: BYDDY's Acquisition of Rever & LCID's Recalls Draw Attention
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Last week, the Biden administration announced its decision to award nearly $2 billion in grants to boost electric vehicle (EV) manufacturing and assembly across eight states, including key battlegrounds in Michigan, Pennsylvania and Georgia. General Motors will receive $500 million to convert a Lansing, MI plant for EV production, supporting a U.S. battery supply chain. Fiat Chrysler is set to receive $335 million to convert an Illinois plant and $250 million for an Indiana facility to make EV components. Blue Bird will get $80 million to produce electric school buses in Georgia. Harley-Davidson has been awarded $89 million to expand its electric motorcycle production in Pennsylvania, while Volvo Group will receive $208 million to upgrade facilities in Pennsylvania, Virginia and Maryland for heavy-duty electric trucks.
On the news front, China-based EV giant BYD Company Limited (BYDDY - Free Report) announced its decision to buy a 20% stake in Rever Automotive to consolidate its presence in the Southeast Asia auto market and to enhance its competitiveness in Thailand's auto industry. The Californian EV startup Lucid Group (LCID - Free Report) issued a software recall over a power loss glitch. EV pioneer Tesla (TSLA - Free Report) introduced a new rear-wheel drive Model 3 vehicle and deferred its Robotaxi event by two months. Japanese auto giant Toyota (TM - Free Report) invested in IONNA to enhance EV infrastructure and promote sustainable transportation.
Last Week’s Top Stories
Lucid issued a recall for approximately 5,251 of its 2022-2023 Air luxury sedans due to a software issue that could lead to power loss, per the U.S. National Highway Traffic Safety Administration. The problem involves the High Voltage Interlock safety mechanism, which could be mistakenly activated when the vehicle is in Drive or Reverse, causing a power outage. However, the brakes, steering and displays would remain functional.
Additionally, LCID is recalling 2022-2024 Air sedans due to a faulty coolant heater that may fail to defrost the windshield, affecting 7,506 vehicles. Despite a low failure rate of 1.2%, Lucid has issued a software update to alert drivers if the High Voltage Coolant Heater (HVCH) malfunctions. Affected vehicles will receive a new HVCH at no cost.
The company also released its second-quarter production and delivery report last week. The EV startup produced and sold 2,110 and 2,394 vehicles, respectively, during the three months ended Jun 30.
Tesla introduced a new rear-wheel drive Model 3 long-range vehicle priced $5,000 lower than its all-wheel drive counterpart. The new variant starts at $42,490 and qualifies for a $7,500 federal EV tax credit, reducing its effective price to $34,990, which is less than the base Model 3. Prices for the base Model 3 long-range all-wheel drive and performance variants remain unchanged. The Model 3 and Model Y dominate Tesla's sales, accounting for 95% of global deliveries in the second quarter, with 422,405 units delivered.
Tesla's eagerly awaited robotaxi event, initially scheduled for Aug 8, has been postponed to October. On the first-quarter 2024 earnings call, Elon Musk confirmed plans to showcase the company’s purpose-built robotaxi or Cybercab in August, raising investor expectations. However, the delay has disappointed investors, leading to an 8% drop in Tesla's stock last Thursday, which ended an 11-day rally that had offset its losses for the year.
BYD inked a deal to purchase a 20% stake in Thai dealer Rever to strengthen its position in the Southeast Asia auto market. Both companies aim to enhance their competitiveness in Thailand's auto industry. BYD officially entered Thailand's passenger car market on Aug 8, 2022, through a joint announcement with Rever in Bangkok.
On Jul 4, 2024, BYD opened its factory in Thailand, marking the production of its 8 millionth new energy vehicle. Rever, which operates more than 100 showrooms in Thailand, began selling BYD vehicles in 2022, making BYD the country's top-selling EV brand. Per Liu Xueliang, general manager of BYDDY's Asia-Pacific auto sales division, currently, there are 115 BYD sales outlets in Thailand. With the new plant in operation, BYD plans to expand its local sales network.
BYD and Rever will broaden their collaboration beyond passenger cars to include commercial vehicles.The Thailand plant produces models like the all-electric Dolphin and Seal, as well as the Atto 3, which Rever sells in Thailand. BYD also plans to produce plug-in hybrid electric vehicle models, including the Sea Lion 6.
Toyota joined forces with seven major auto biggies by investing in IONNA, an EV charging network company. This strategic partnership aims to enhance charging accessibility for battery EV (BEV) users and promote the adoption of sustainable transportation.
Toyota's investment in IONNA aligns it with automakers such as BMW, Honda, General Motors, Hyundai, Kia, Mercedes-Benz and Stellantis, who have also pledged their support to IONNA. The collaboration among the eight automakers represents a unified effort to invest in and develop EV charging infrastructure, addressing a critical need for the growing EV market.
Together, these companies are backing IONNA's ambitious plan to install more than 30,000 high-powered charging ports across North America by 2030. This network will feature DC fast chargers equipped with both NACS and CCS connectors, catering to a wide range of BEV drivers. The deployment of DC fast chargers across the United States and Canada would boost customer confidence in BEVs and facilitate their adoption.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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EV Roundup: BYDDY's Acquisition of Rever & LCID's Recalls Draw Attention
Last week, the Biden administration announced its decision to award nearly $2 billion in grants to boost electric vehicle (EV) manufacturing and assembly across eight states, including key battlegrounds in Michigan, Pennsylvania and Georgia. General Motors will receive $500 million to convert a Lansing, MI plant for EV production, supporting a U.S. battery supply chain. Fiat Chrysler is set to receive $335 million to convert an Illinois plant and $250 million for an Indiana facility to make EV components. Blue Bird will get $80 million to produce electric school buses in Georgia. Harley-Davidson has been awarded $89 million to expand its electric motorcycle production in Pennsylvania, while Volvo Group will receive $208 million to upgrade facilities in Pennsylvania, Virginia and Maryland for heavy-duty electric trucks.
On the news front, China-based EV giant BYD Company Limited (BYDDY - Free Report) announced its decision to buy a 20% stake in Rever Automotive to consolidate its presence in the Southeast Asia auto market and to enhance its competitiveness in Thailand's auto industry. The Californian EV startup Lucid Group (LCID - Free Report) issued a software recall over a power loss glitch. EV pioneer Tesla (TSLA - Free Report) introduced a new rear-wheel drive Model 3 vehicle and deferred its Robotaxi event by two months. Japanese auto giant Toyota (TM - Free Report) invested in IONNA to enhance EV infrastructure and promote sustainable transportation.
Last Week’s Top Stories
Lucid issued a recall for approximately 5,251 of its 2022-2023 Air luxury sedans due to a software issue that could lead to power loss, per the U.S. National Highway Traffic Safety Administration. The problem involves the High Voltage Interlock safety mechanism, which could be mistakenly activated when the vehicle is in Drive or Reverse, causing a power outage. However, the brakes, steering and displays would remain functional.
Additionally, LCID is recalling 2022-2024 Air sedans due to a faulty coolant heater that may fail to defrost the windshield, affecting 7,506 vehicles. Despite a low failure rate of 1.2%, Lucid has issued a software update to alert drivers if the High Voltage Coolant Heater (HVCH) malfunctions. Affected vehicles will receive a new HVCH at no cost.
The company also released its second-quarter production and delivery report last week. The EV startup produced and sold 2,110 and 2,394 vehicles, respectively, during the three months ended Jun 30.
Tesla introduced a new rear-wheel drive Model 3 long-range vehicle priced $5,000 lower than its all-wheel drive counterpart. The new variant starts at $42,490 and qualifies for a $7,500 federal EV tax credit, reducing its effective price to $34,990, which is less than the base Model 3. Prices for the base Model 3 long-range all-wheel drive and performance variants remain unchanged. The Model 3 and Model Y dominate Tesla's sales, accounting for 95% of global deliveries in the second quarter, with 422,405 units delivered.
Tesla's eagerly awaited robotaxi event, initially scheduled for Aug 8, has been postponed to October. On the first-quarter 2024 earnings call, Elon Musk confirmed plans to showcase the company’s purpose-built robotaxi or Cybercab in August, raising investor expectations. However, the delay has disappointed investors, leading to an 8% drop in Tesla's stock last Thursday, which ended an 11-day rally that had offset its losses for the year.
Tesla carries a Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BYD inked a deal to purchase a 20% stake in Thai dealer Rever to strengthen its position in the Southeast Asia auto market. Both companies aim to enhance their competitiveness in Thailand's auto industry. BYD officially entered Thailand's passenger car market on Aug 8, 2022, through a joint announcement with Rever in Bangkok.
On Jul 4, 2024, BYD opened its factory in Thailand, marking the production of its 8 millionth new energy vehicle. Rever, which operates more than 100 showrooms in Thailand, began selling BYD vehicles in 2022, making BYD the country's top-selling EV brand. Per Liu Xueliang, general manager of BYDDY's Asia-Pacific auto sales division, currently, there are 115 BYD sales outlets in Thailand. With the new plant in operation, BYD plans to expand its local sales network.
BYD and Rever will broaden their collaboration beyond passenger cars to include commercial vehicles.The Thailand plant produces models like the all-electric Dolphin and Seal, as well as the Atto 3, which Rever sells in Thailand. BYD also plans to produce plug-in hybrid electric vehicle models, including the Sea Lion 6.
Toyota joined forces with seven major auto biggies by investing in IONNA, an EV charging network company. This strategic partnership aims to enhance charging accessibility for battery EV (BEV) users and promote the adoption of sustainable transportation.
Toyota's investment in IONNA aligns it with automakers such as BMW, Honda, General Motors, Hyundai, Kia, Mercedes-Benz and Stellantis, who have also pledged their support to IONNA. The collaboration among the eight automakers represents a unified effort to invest in and develop EV charging infrastructure, addressing a critical need for the growing EV market.
Together, these companies are backing IONNA's ambitious plan to install more than 30,000 high-powered charging ports across North America by 2030. This network will feature DC fast chargers equipped with both NACS and CCS connectors, catering to a wide range of BEV drivers. The deployment of DC fast chargers across the United States and Canada would boost customer confidence in BEVs and facilitate their adoption.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.