Rivian Gets $6.6 Billion to Build a New Factory in Georgia, Porsche Continues to Maintain the Market for Fuel and Hybrid Vehicles | Overseas Daily
"Top 3 News"
Porsche Plans to Maintain the Market of Fuel Vehicles and Hybrid Vehicles in the Face of Slowing Electric Vehicle Sales
Key Points:
Porsche, the German luxury car brand, is adjusting its electrification strategy as the sales growth of electric vehicles in the market has slowed. According to the latest reports, Porsche plans to launch a series of new fuel vehicles and hybrid models to cope with the slowdown in electric vehicle sales. Previously, Porsche had set a goal of hoping that the sales of electric vehicles would account for 80% of the total sales by 2030, but in July this year, the company has abandoned this goal. Porsche's only electric model, Taycan, saw a 50% drop in sales in the first nine months of 2024. Porsche's Chief Financial Officer Lutz Meschke acknowledged at the company's third-quarter earnings conference call that the company is experiencing a "slowdown in the BEV (Battery Electric Vehicle) transformation". This slowdown is not only happening in China, where more advanced and low-cost competitors are flooding the market, but also in Europe and the United States. Despite Porsche launching an upgraded 2025 Taycan earlier this year, which increased the cruising range, performance, and improved the design, sales still declined.
Meschke told investors: "Many customers, especially in the high-end and luxury car market, are still interested in fuel vehicles." Therefore, Porsche plans to update its fuel vehicle models, such as Panamera and Cayenne. This shift occurs while the delivery volume of Porsche's first electric Macan is still increasing. Porsche expects that in the fourth quarter, with the first full sales quarter of the Macan, the demand for electric vehicles will rise. Although the second-generation Macan will be launched as a pure electric model, Porsche now plans to continue selling the fuel version in key markets including the United States. Porsche has already showcased the upcoming electric Cayenne this summer, but the company also said it is developing fuel and hybrid models. After the Macan EV, Porsche will launch the electric 718 model, which is expected to make its debut later this year. The highly anticipated Porsche Cayenne EV is planned to make its debut in 2026. After that, Porsche plans to launch a super-luxury electric SUV with the internal code "SUV K1".
Porsche Macan EV (Source: Porsche)
Opinions:
Porsche's strategic adjustment reflects the complexity and uncertainty of the growth of the electric vehicle market. Although electric vehicles are the future trend of the automotive industry, the current market demand for fuel vehicles and hybrid models is still strong. Porsche's decision may be based on a keen insight into market demand and a thoughtful consideration of its own product line and brand positioning. From the perspective of environmental protection and sustainable development, electric vehicles are undoubtedly the direction of future development. However, the acceptance of electric vehicles by consumers, the improvement of charging infrastructure, and the progress of battery technology are all key factors affecting the growth of the electric vehicle market. While maintaining fuel vehicles and hybrid models, Porsche is also actively promoting the development of electric vehicle models. This balanced strategy may be a reasonable response to the current market environment. In addition, as a high-end brand, Porsche's customer group has high requirements for vehicle performance, comfort, and brand image. In the case that the electric vehicle technology is not yet fully mature and may affect these core values, Porsche's choice to continue to provide fuel and hybrid models may be to maintain brand competitiveness and customer loyalty.
California Plans to Offer $7,500 State Electric Vehicle Tax Rebate to Counter Trump's Cancellation of Federal Tax Credit
Key Points:
California Governor Gavin Newsom announced that if Trump cancels the federal electric vehicle tax credit, California will propose to provide a $7,500 state electric vehicle tax rebate to residents. This news was put forward against the background that after Trump was elected president, he repeatedly stated that he would cancel the $7,500 tax credit for new electric vehicles and the $4,000 tax credit for used electric vehicles created by the Biden administration's Inflation Reduction Act. Tesla CEO Elon Musk supports the end of the federal electric vehicle tax credit, but he is dissatisfied with Tesla being excluded from the California state electric vehicle tax rebate. He said on social media: "Even though Tesla is the only company that manufactures electric vehicles in California! This is crazy."
Tesla moved its headquarters from California to Texas in 2021, and Musk said this year that SpaceX and other companies will also make the same move. Trump has repeatedly stated that if he wins the election, he will cancel the federal electric vehicle tax credit. In response, Newsom proposed to create a new version of the state's "Clean Car Rebate Program", which was launched in 2010 and phased out in 2023. California initially provided a $5,000 rebate for electric vehicles, and later increased it to $7,500. During its life cycle, the Clean Car Rebate Program has funded more than 594,000 vehicles and saved more than 456 million gallons of fuel. Newsom's statement said that the funds for the state electric vehicle rebate may come from the "Greenhouse Gas Reduction Fund", which is funded by polluters under the state's cap-and-trade program.
Newsom said in the statement: "If the Trump administration cancels the federal tax credit, we will intervene and double our commitment to California's clean air and green jobs. We will not go back to the future of clean transportation - we will make it more affordable for people to drive non-polluting vehicles." Newsom's statement did not explain how the rebate will work, but he is expected to share more details in his appearance today. The governor needs the support of the state legislature to restore the rebate program. California continues to lead the United States in the adoption of zero-emission vehicles, with more than 2 million electric, plug-in hybrid, and hydrogen-powered vehicles sold statewide. By 2035, all new cars and light trucks sold in California must be zero-emission vehicles, and 50% of all new heavy-duty trucks must also be zero-emission.
Tesla Model Y (Source: Tesla)
Opinions:
California's move shows the state's firm commitment to promoting clean energy and reducing greenhouse gas emissions. In the case of a possible reversal of policies at the federal level, California demonstrates its leadership in environmental protection and responding to climate change by proposing a state-level electric vehicle rebate plan. This policy not only helps protect the interests of consumers by reducing the cost of purchasing electric vehicles, but also helps promote the development of the electric vehicle market and accelerate the transition to zero-emission transportation.
However, Tesla's exclusion from the rebate plan may cause some controversy. Tesla, as a pioneer in the electric vehicle market, has been promoting the development and popularization of electric vehicle technology. If Tesla is excluded from the rebate plan due to the relocation of its headquarters, this may be seen as a punishment rather than a reward for innovation and the clean energy transition. This may also affect Tesla's sales in California and further intensify the company's decision to relocate its headquarters. In the long run, the cancellation or retention of the electric vehicle tax credit policy will have a profound impact on the electric vehicle market. California's state-level rebate plan, if implemented, will provide an example for other states to respond to changes in federal policies. This may also prompt the federal government to reconsider its policy on electric vehicle tax credits to ensure that the United States remains a leader in the global clean energy competition.
California's Electric Vehicle Sales Exceed 2 Million Mark
Key Points:
The United States' California has made significant achievements in promoting a zero-emission future, with electric vehicle sales exceeding 2 million, making it the state with the highest sales in the country. According to the latest data from the California Energy Commission (CEC), in the third quarter of 2024 alone, California residents purchased 115,897 electric vehicles, accounting for 26.4% of all new vehicle sales in the state. California has a 30.3% share in the US electric vehicle market. The state is continuously strengthening its leadership in the electric vehicle field by expanding and improving the charging network to meet the growing demand of drivers. This commitment ensures that everyone can have a convenient and seamless electric vehicle experience.
Although the total sales of new light vehicles in California decreased in the third quarter of 2024, the decline in electric vehicle sales was relatively small, resulting in an increase in market share. This trend highlights that even in challenging market conditions, consumers' preference for electric vehicles is growing, emphasizing the stability and increasing attractiveness of electric vehicles compared to internal combustion engine vehicles. The top ten best-selling electric vehicles in California in the third quarter of 2024 include: Tesla Model Y, Tesla Model 3, Hyundai IONIQ 5, Toyota RAV4 Prime, Ford Mustang Mach-E, Tesla Model X, Volkswagen ID.4, BMW i4, Tesla Cybertruck, and Jeep Wrangler. This milestone reflects California's firm commitment to zero-emission transportation. Governor Newsom announced the state's achievement of 2 million electric vehicle sales and reaffirmed this commitment, promising to restart the Zero Emission Vehicle (ZEV) subsidy program if the federal tax incentive measures are cancelled.
VELOZ Electric Vehicle Report (Source: ElectricCarsReport)
Opinions:
California reaching the 2 million milestone in electric vehicle sales is not only a numerical achievement but also a powerful boost to the global electric vehicle revolution. This achievement marks California's leadership in reducing greenhouse gas emissions and responding to climate change, while also showing the popularity and market acceptance of electric vehicles among consumers. From a market perspective, the growth in electric vehicle sales indicates consumers' dual demand for environmental protection and economic benefits. Although the initial purchase cost of electric vehicles may be higher than that of traditional fuel vehicles, the long-term energy savings and lower maintenance costs make electric vehicles an increasingly popular choice for more consumers. In addition, the driving experience and technological innovation of electric vehicles are also important factors attracting consumers. At the policy level, the active promotion and subsidy policies of the California government are crucial for promoting the popularization of electric vehicles. The uncertainty of federal tax incentives may have an impact on the market, but the California government's commitment to restart the ZEV subsidy program shows that even in the case of policy fluctuations at the federal level, the state government has the ability to maintain and promote the development of the electric vehicle market. In addition, California's achievement provides a successful case for other states and countries, indicating that through policy guidance and market incentives, the popularization of electric vehicles can be effectively promoted. With the progress of technology and the reduction of costs, it is expected that the electric vehicle market will continue to grow, further promoting the global transition to sustainable transportation. California's experience tells us that through the joint efforts of the government, enterprises, and consumers, it is entirely possible to achieve a zero-emission future.
"Big Events"
Rivian Receives $6.6 Billion Loan to Build Georgia Factory
The California-based electric vehicle manufacturer Rivian has announced that it has received a conditional loan of up to $6.6 billion from the US Department of Energy for the construction of a production facility in Georgia. This is Rivian's second US factory after the one in Illinois. However, this loan comes with a significant condition: the company must not actively oppose union organizing activities. Rivian has been planning to build the Georgia factory, but due to the severe economic situation, the company's stock price has dropped by about 50% this year, causing the project to be temporarily shelved. Currently, Rivian is producing the smaller and more economical R2 SUV at its Normal, Illinois factory, while also manufacturing its flagship products, the R1S SUV and R1T pickup truck.
Rivian's CEO RJ Scaringe said in a statement: "This loan will enable Rivian to more actively expand our manufacturing footprint in the United States and support our competitively priced R2 and R3 models, which emphasize both performance and affordability." The loan is "conditionally" approved, meaning that Rivian needs to "meet certain technical, legal, environmental, and financial conditions before the Department of Energy will disburse the loan," the company said.
Rivian (Source: Electrek)
Rivian's factory in Normal employs about 7,400 workers and is one of the largest employers in the city, with multiple family members working at the factory in some cases. The loan for Georgia comes from the government's Advanced Technology Vehicle Manufacturing Loan Program, which has also provided loans to Tesla, Ford, and General Motors. Rivian's electric vehicle factory in Georgia is the second-largest development project in the state, second only to the $7.6 billion facility that Hyundai began production at last week. When the Department of Energy considered the loan in October, it said the factory will help Rivian bring 400,000 electric vehicles to the market and into use.
The factory covers 1,744 acres, located 40 miles east of Atlanta, and will include two production areas, each with an annual capacity of up to 200,000 vehicles. Rivian expects to begin construction in the second quarter of 2026. On Monday, Rivian announced that the loan includes $6 billion in principal and $600 million in capitalized interest. Previously, Rivian completed a $5.8 billion investment with Volkswagen as part of their technology joint venture. As early as 2022, Rivian received $1.5 billion in state and local incentives for the Georgia factory. In May, the electric vehicle manufacturer received $847 million in state incentives to expand its Illinois factory.
Renault Trucks to Launch Long-Range E-Tech T Electric Truck in the Second Half of 2025
Renault Trucks has announced that it will start accepting orders for the extended version of its E-Tech T model in the second half of 2025. This electric truck has a single-charge range of 600 kilometers, providing new possibilities for the decarbonization of long-distance transportation. Renault Trucks' electric trucks have already saved 29,000 tons of carbon dioxide emissions through 30 million kilometers of actual use. The launch of this new model further expands Renault Trucks' range of sustainable transportation solutions and supports customers in their energy transition. The range improvement of the E-Tech T electric truck is achieved by integrating a new component - the electric axle. The electric axle technology enables all elements of the powertrain - the electric motor and the transmission system - to be centrally installed at the rear of the vehicle, freeing up space between the side beams to accommodate additional battery packs. The Renault Trucks E-Tech T equipped with an electric axle is capable of achieving a single-charge range of 600 kilometers.
Emmanuel Duperray, Senior Vice President of Electric Mobility at Renault Trucks, explains: "The arrival of this electric truck will accelerate the transition to electric mobility. We believe that by 2026, a single-charge range of 600 kilometers, combined with the development of the public charging infrastructure network - especially through our joint venture Milence - will enable us to achieve operational parity with diesel technology as expected by our customers." This long-range Renault Trucks E-Tech T is designed to enhance the manufacturer's electric product line without replacing the current solutions.
