Tesla executives leave, Hyundai Motor Europe launches small electric vehicle | Overseas Daily

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Europe Continues to Push Forward Tariffs on Chinese Electric Vehicles

Key Points:

The EU has voted to advance the plan to impose tariffs on electric vehicles imported from China, despite recent attempts by Germany to block the proposal. The production of Chinese electric vehicles has increased significantly recently, thanks to its efforts to secure mineral contracts and build local vehicle manufacturing bases. This has led to a rapid rise in domestic sales and exports of electric vehicles. Chinese electric vehicles pose a challenge to European local manufacturers in the international market, and the EU accuses China of "dumping" electric vehicles and unfairly subsidizing the local automotive industry. The EU has decided to impose tariffs on Chinese electric vehicles, with a tax rate ranging from 7.8% to 35.3%, which is much lower than the recent increase from 25% to 100% in the United States. The European Commission held a final vote, with 10 member states in support, 12 abstaining, and 5 opposing. Germany is the main opponent, and Slovenia, Slovakia, Hungary, and Malta also oppose it, but the support of countries such as Italy, France, and Poland has allowed the proposal to pass. Germany opposes it because its automakers sell a large number of high-end and profitable vehicles to China and are worried about retaliatory tariffs. China has been investigating some EU product categories, and Germany believes that China's imposition of tariffs on European cars may accelerate its decline in the world's second most populous country's market. Europe's tariffs are much lower than those in the United States, and the EU has been communicating with China and may further adjust the tariffs, trying to appear more willing to cooperate than the United States to reduce the possibility of retaliation.

BYD Explorer 1 Unloading in Brazil (Source: Electrek)

Opinions:

According to the author Jameson, tariffs are popular but usually ineffective, as evidenced by many examples, and the views of most economists are usually correct on this issue. These tariffs can at most bring only a temporary relief to local manufacturers, but will immediately increase the prices for EU consumers and reduce the willingness or need of EU manufacturers to compete on price. At a time when countries around the world are recently struggling with inflation, it does not seem wise to make the things that families spend the most on more expensive, and it will also reduce people's willingness to replace fuel-consuming vehicles with cheaper electric vehicles, increase household fuel costs and the climate and health costs of using older vehicles. The author believes that this is not a wise choice. Although Germany has made the right decision, it could have played a leadership role earlier instead of playing tactical games and trying to please both the EU and China.

Tesla Key Figure David Zhang Leaves, Responsible for Multiple Star Models

Key Points:

Tesla has lost a top-level vehicle project manager, David Zhang. David Zhang is a chemical engineer with a background in business analysis. He joined Tesla in 2015 and initially led the business operations and financial work of the powertrain system, and later quickly rose to lead the entire vehicle project. He has been responsible for the Model S and Model X projects since 2018, the critical launch period of the Model Y project from 2020 to 2021, the Cybertruck project from July 2021 to June 2022, and served as the project manager for the Roadster and the next-generation models from February 2023 to earlier this year. David Zhang announced his departure from Tesla last weekend, stating that he is honored to have dedicated himself to Tesla's mission. His LinkedIn profile shows that he has not been with Tesla since July. Earlier this year, Tesla conducted a large-scale layoff, including in various departments, with many people being laid off, and some leaving on their own due to the company's ethical issues. Recently, in addition to David Zhang, another chief information officer and a European executive of Tesla have also left the company.

Tesla Model X and Model Y (Source: Tesla)

Opinions:

Tesla has always been an innovation leader in the automotive industry, and the launch of each of its models has caused a huge sensation. However, the recent departure of top vehicle project manager David Zhang from Tesla has raised concerns about the company's future development. The departure of Tesla executives has always been the focus of the industry, and a series of executive departures have reignited investors' concerns about whether there is a problem with Musk as the CEO, which has led to the successive departures of many important executives. Perhaps as Gene Munster, a managing partner at venture capital firm Loup Ventures, said: "Tesla is not a company for everyone, and the company's biggest challenge is how to retain the best talents. In a highly competitive market environment, talents are the core competitiveness of enterprises, and the loss of talents may affect the research and development progress and quality of its products. Tesla may need to take this opportunity to re-examine its talent management strategy, strengthen the motivation and training of employees, in order to attract and retain more excellent talents.

With the Increase of Substantial Discounts, Lucid Breaks Delivery Record Again in the Third Quarter

Key Points:
Lucid Motors has once again broken the delivery record in the third quarter of 2024, with new discount measures driving the growth in demand. The number of vehicles delivered by this electric vehicle manufacturer in 2024 has exceeded the total for the entire previous year. After delivering 2,781 vehicles in the third quarter, 7,142 electric vehicles have been delivered in 2024, exceeding the 6,001 in 2023, and with three months remaining this year, Lucid has set a new delivery record for three consecutive quarters, surpassing the 1,967 in the first quarter and the 2,394 in the second quarter. Despite the increase in deliveries, production in the third quarter dropped to 1,805 vehicles, lower than the 2,110 in the second quarter. To achieve the production target of 9,000 vehicles in 2024, 3,358 electric vehicles need to be produced in the fourth quarter. The significant discount measures have driven Lucid's high delivery volume, making its vehicles more competitive than ever. For example, the 2024 Air Grand Touring can save up to $17,500 this month, and the 2024 Lucid Air Pure offers a discount of up to $15,000, with a monthly lease cost of less than $550, which is much lower than the lease price of $749 for the 2023 Air Pure in September last year.

Lucid Air Model (Source: Lucid)

Opinions:

Rivian lowered its 2024 production target on Friday and now expects to produce 47,000 to 49,000 vehicles this year, lower than the previous target of 57,000, citing supply shortages that have hindered production at its Normal, Illinois plant. Similar to Rivian, Lucid is also preparing for the next growth stage and hopes to maintain its development momentum with the launch of its first electric SUV Gravity later this year. Lucid will release its third-quarter financial results on November 7, 2024. At the end of the second quarter, after the Saudi PIF once again committed to invest $1.5 billion, Lucid had $4.28 billion in liquid funds, enough to support until the fourth quarter of 2025. Last month, Lucid previewed the upcoming mid-sized electric SUV with a starting price of less than $50,000, aiming to compete with Tesla's best-selling Model Y. This will be the first of at least three low-cost Lucid vehicles to be launched in the next few years.

"Big Events"

Rivian's Share Price Drops After Cutting Electric Vehicle Production Plan and Declining Third-Quarter Deliveries

Rivian Commercial Electric Van, R1S and R1T (Source: Rivian)

Rivian no longer expects to produce as many vehicles in 2024 as it did in 2023. After a decline in third-quarter deliveries, Rivian has reduced its 2024 electric vehicle production plan. Rivian delivered 10,018 vehicles in the third quarter, a 27% decrease from the 13,790 in the second quarter and a 26% decrease from the first three months of 2024. Due to supply shortages in the third quarter, Rivian has cut its production plan for this year and now expects to produce 47,000 to 49,000 vehicles in 2024, lower than the previous target of 57,000. However, Rivian has reaffirmed its delivery guidance for this year, expecting a slight increase from last year's 50,122 and planning to deliver 50,500 to 52,000 electric vehicles in 2024. Rivian stated at its first investor day in July that it still expects to achieve its first gross profit in the fourth quarter of 2024. Rivian's second-quarter loss widened from $1.2 billion in the second quarter of 2023 to $1.46 billion, with a loss of $32,705 per vehicle in the last quarter. Rivian's third-quarter financial results will be announced on November 7, 2024.

BYD Delivers 100 Electric Buses to Uruguay

Uruguay's Bus Order (Source: BYD)

Chinese electric vehicle giant BYD has delivered 100 12-meter-long K9UD electric buses to Cutcsa, the largest electric public transportation operator in Uruguay. On September 19, BYD delivered 100 fully electric K9UD urban buses to Cutcsa, the largest electric public transportation operator in Uruguay. This is another significant sale for BYD in the process of expanding the transportation market in Latin America and has greatly promoted the green transportation cause in Uruguay. BYD's official press release did not detail the specific specifications of the K9UD in Uruguay, but it can be reasonably assumed that it is not much different from the European version. The 12-meter bus has a gross weight of 19.5 tons and can accommodate 85 people. Its 422 kWh lithium iron phosphate battery has a range of up to 450 kilometers (about 280 miles). These large electric buses are powered by a pair of 150-kilowatt in-wheel motors, totaling about 400 horsepower. Uruguay has become a customer of BYD, along with Brazil, Chile, Colombia, and Ecuador, and BYD is continuing to promote the decarbonization of public transportation in the region. There are practical, observable, and measurable benefits to replacing diesel vehicles with electric vehicles in densely populated areas, not only in terms of cost, but also in reducing surface air pollution and improving overall quality of life. There is absolutely no reason to choose other alternatives at present, especially hydrogen energy.

Hyundai INSTER EV Enters Europe, Challenging the Low-Cost Electric Vehicle Market

Hyundai INSTER EV (Source: Hyundai UK)

Hyundai is preparing to launch its first small electric vehicle, the Hyundai INSTER EV, in Europe. The starting price of the model in the UK is less than $31,000 (GBP 23,495). After its launch in June, Hyundai claims that it offers "segment-leading range" and advanced new technologies, with new design elements such as a pixelated front bumper design, signature LED daytime running lights, and pixel graphic turn signals. Hyundai claims that this car has a range of 229 miles, redefining the possibilities of small urban electric vehicles. Despite its small size, it has ample interior space. The car is smaller than the Kia EV3, Volkswagen ID.3, and Volvo EX30. The starting price in the UK is about $30,800 (GBP 23,495), and the higher-configured 02 model costs $35,000 (GBP 26,745) and adds some features. Ashley Andrew, President of Hyundai and Genesis UK, said that the car has attracted attention. Hyundai announced this summer that the starting price of the car in Europe is less than $27,500 (EUR 25,000) and that it is not planned to be launched in the United States. Its sister company Kia's EV3 is expected to be launched in the United States next year, with a starting price of about $30,000 to $35,000.

Tesla Cybertruck Non-Base Series Appears, Expected to be Delivered in October and November

Tesla Cybertruck (Source: Tesla)

More than ten months after the Cybertruck began deliveries, Tesla is configuring the non-base series. The first Cybertrucks were delivered on November 30 last year, and Tesla typically completes deliveries from top to bottom, shipping high-option limited-edition models first. The Cybertruck began deliveries in a fully loaded "base series" format, with tens of thousands of trucks delivered with an optional base package. Initially, Tesla said it would begin delivering non-base series vehicles several months ago, but it pushed it back to the end of 2024 in July. Now Tesla has begun sending email invitations to reservation holders to configure non-base