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Motions - Issue #51
XPeng's Strategic Acquisition, Ford Retires Gas Models for EVs, and Volvo's New Electric People Mover 💸⚡
🌟 In the Spotlight
XPeng's acquisition of Didi's smart electric car unit sent ripples through the industry, marking a significant milestone in its ambitious growth strategy. From its P7 sedan to the G3 SUV, XPeng has been a rising star in the EV market. Here's what you need to know...
What happened: XPeng announced its plans to acquire the electric vehicle division of ride-hailing service DiDi for over $740 million. XPeng shares rose nearly 13% following the announcement.
Why it matters: The acquisition is a strategic move that underscores XPeng's aggressive ambitions in the EV market. By acquiring DiDi's electric vehicle division, XPeng aims to consolidate its position and gain a technological edge.
The other side: The deal is still subject to regulatory approval, and integrating DiDi's technology into XPeng's existing lineup will be challenging. However, the scale of the acquisition signifies XPeng's willingness to make bold moves in a rapidly evolving space.
What's next: XPeng and DiDi plan to launch a new mass-market EV brand next year with a starting price of around 150,000 RMB (roughly $20,500). All eyes will be on how XPeng integrates this new brand into its existing portfolio and delivers on its promises.
🗓 August in Review
🚗 Vehicles: Ford is phasing out three gas-powered models to make way for new electric vehicles. Volvo teased its spacious EM90 new people mover, calling it "a Scandinavian living room on the move." The SAIC-GM-Wuling joint venture launched Yun Duo EV, expanding its lineup in China with an all-electric family car. Jaguar announced it would abandon the I-Pace by 2025 in lieu of next-gen EVs.
💼 Business: Stellantis is considering a joint venture to expand its footprint in China. Tesla licensed its North American Charging Standard (NACS) to connector manufacturing giant Volex. Tesla and Lexus ranked highest in luxury brand customer satisfaction, according to a recent study.
🏛️ Regulatory & Policy: Despite support for EVs, many automakers are quietly fighting proposed EPA emissions rules requiring expanded EV sales. NHTSA hinted at forcing changes on Tesla's driver monitoring system as the Autopilot safety probe is about to end. The DOE will award up to $37 million to advance electric vehicle battery recycling, transportation, and design. California is pivoting its major EV incentive program to focus on middle- and low-income drivers.
💫 Startups & Partnerships: Polestar and Mobileye are collaborating to bring autonomous driving technology to the Polestar 4. Geely restructured its JIDU partnership with Baidu as “JI YUE” to bring the ROBO-01 EV to market. GM plans to use Google AI chatbot for its OnStar service. ElectraMeccanica, a maker of three-wheeled EVs, will merge with U.K.-based truck manufacturer Tevva in a bid to grow their combined market share. Beep and Oxa partner to deploy autonomous vehicles driven by Oxa in the US. JLR announced an EV battery recycling partnership with Wykes Engineering. TomTom and StreetLight are partnering to deliver transportation data and insights.
💸 Investments & Acquisitions: Redwood Materials, the battery recycling startup, raised $1B in a Series D funding round. VinFast finalized its SPAC Merger and began trading on the Nasdaq stock market. Lavoie has acquired E-bike startup VanMoof out of bankruptcy, with plans to invest in the brand and relaunch the business. Mitra Chem, a battery technology startup, raised $60M, led by GM. Stellantis invested more than $100M in a California lithium project.
🚀 On the Horizon
Looking forward, here's a sneak peek into some of the things we're keeping our eyes on this month… GM has received the green light to conduct autonomous driving tests in Shanghai. Mercedes-Benz will open its first EV charging hubs this fall. Analysts projected that Tesla could access up to $20B in revenues from Supercharger deals.
🔎 Interesting Read
California is experiencing an electric surge, setting new records that outpace the rest of the US. In Q2 alone, the state saw a 59% year-over-year increase in EV sales, with Tesla's once-dominant market share beginning to wane. What's driving this electric boom, and what does it mean for the future of mobility? Dive into this article for a deep dive into the forces shaping California's electric journey and what it signals for the broader automotive landscape.
Thank you for joining us for this month's journey through the world of transportation and mobility services! We'll return in October with more of the latest and greatest mobility news. 📰🚘
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