Welcome back to The Station—your ultimate destination for all things related to transportation. While Kirsten, our usual host, is busy off-roading at the Rebelle Rally, I’ll be taking over the newsletter. Let’s dive right in with some exciting news about Tesla.
But hold on, it’s actually Kirsten again! I couldn’t resist popping in to share my experience at the Rebelle Rally 2023—an epic off-road and navigation competition spanning over 2,120 kilometers. This event serves as a proving ground for both the 65 participating all-women teams and the stock manufacturer vehicles. The unique twist? GPS and electronic devices are strictly prohibited. So what’s catching my eye at this seemingly non-tech event? Electric vehicles (EVs) and green hydrogen, believe it or not.
Out of the 65 vehicles in the race, 10 fell under the electrified category, including the Jeep Wrangler Rubicon 4xe. Four of these electric vehicles were Rivian R1T pickups. What’s noteworthy is that one Rivian team clinched first place in the 4×4 class, making it the first time an all-electric vehicle secured the top spot. The victorious team, comprised of driver Lillian Macaruso and navigator Alexandra Anderson, are proud Rivian employees.
Now, back to you, Rebecca. This week, Tesla released its third-quarter earnings report, and all eyes were on the automaker’s margins amidst ongoing price cuts. Consequently, Tesla’s shares, often viewed more as a tech stock than an automaker’s stock, saw a decline. Investors expressed concern as the company’s gross margin dropped to 17.9% compared to 25.1% in the same period last year, and Q2’s margin of 18.2%. This decline led to a 44% decrease in profits, amounting to $1.85 billion in Q3 compared to the same period last year.
These falling margins and price cuts are seen by investors as a reflection of diminishing demand for Tesla vehicles, given increasing competition in the EV market and rising interest rates affecting affordability. Additionally, Tesla reported a 48% decrease in solar deployments in Q3 compared to the previous year. However, the company offset this slump with a remarkable 90% surge in energy storage deployments.
Tesla also provided updates on the much-anticipated Cybertruck, which has faced numerous delays. Initial deliveries are now scheduled for an event on November 30 at Giga Texas. Elon Musk acknowledged the challenges Tesla faces in scaling the Cybertruck and mentioned that it would take around 18 months for the pickup to become profitable. Despite these claims, it’s worth noting that Musk’s predictions aren’t always accurate, as evidenced by his initial announcement that the Cybertruck would hit the market in 2021. Therefore, it’s possible that these timelines may be further extended.
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Now, let’s delve into the world of micromobility. This week, Micromobility America hosted a trade show, and we’ve got some interesting highlights for you. Remember Bird, the company that shifted its focus to shared rides to achieve profitability last year? Well, they’ve made a surprising return to e-bikes in partnership with TradeHubb, an e-bike supplier, and Spring, a strategic retail growth company. The specifics of Bird’s recent moves remain a mystery, but I’m determined to find out more. If you have any tips, feel free to get in touch!
In other exciting news, Ride Review has launched the Rider’s Choice Awards, allowing individuals to cast their votes. Stay tuned until January 25 for the announcement of the winners. Additionally, Micromobility America’s team unveiled the Electric Rider Alliance, a membership organization designed to create an even playing field for the small electric vehicle ecosystem through standards, lobbying, and governance.
Now, onto some noteworthy developments. Bolt Mobility will soon introduce distance-based pricing for its micromobility vehicles. This move aims to incentivize riders to prioritize safety over speed, encouraging a more responsible riding experience. For those of you who yearn for an e-scooter with a Cybertruck aesthetic, you’re in luck! Check out Infinite Machine’s P1, a sleek e-scooter inspired by the Cybertruck, which is currently available for purchase. And let’s not forget about Shane, a fascinating two-wheeled EV concept resembling a futuristic space pod. Shane Chen, the creator of the original hoverboard, is the mastermind behind this unique vehicle.
Now, for our deal of the week—or should I say, the lack thereof. Convoy, the digital freight broker, announced its closure this week due to what executives described as a “massive freight recession.” Disrupting the freight business turned out to be a challenging feat. This abrupt shutdown not only affected Convoy’s employees but also wiped out the investments made in the company. It’s a stark reminder that building a successful startup isn’t always smooth sailing. To gain some insight into Convoy’s journey, take a look at the interview we conducted with co-founder and CEO Dan Lewis in May 2022. It’s interesting to note his motivation for entering the industry and the opportunities he saw.
Here are a few more deals and developments that have grabbed our attention:
– Hayden AI, an AI and geospatial analytics company, raised $53 million in a Series B funding round led by the Drawdown Fund. Their technology is being used by government agencies to enforce traffic violations, improve transit efficiency, and boost ridership.
– Laka, a European mobility insurtech company catering to e-bike riders, acquired Cylantro, a French e-bike insurance broker. Laka also secured a €7.6 million round led by Shift4Good, with participation from Ponooc, Autotech Ventures, ABN Amro Ventures, Porsche Ventures, and others.
– Nirvana Insurance, a startup specializing in commercial fleet insurance, raised a $57 million Series B to expand its big data platform, hire new staff, and grow its presence in the trucking industry. The round was led by Lightspeed Venture Partners, with General Catalyst and Valor Equity Partners also participating. This funding round doubled Nirvana’s valuation to over $350 million post-money.
– Transfix, a supply chain logistics company, raised $40 million in a Series F round. The company boasts backing from New Enterprise Associates, G Squared, and Canvas Ventures.
– EV charging company Wallbox acquired the operations and assets of German EV charging solutions startup ABL for €15 million. Together, their goal is to deploy more than 1 million chargers worldwide.
Lastly, here are some notable reads and tidbits that caught our attention:
Autonomous Vehicles:
– Cruise, General Motors, and Honda announced a joint venture to launch a robotaxi service in Japan. This service will debut in Tokyo in 2026 and will utilize the Origin vehicles.
– The National Highway Traffic Safety Administration (NHTSA) has initiated an investigation into Cruise, following multiple incidents involving pedestrians in San Francisco. The latest incident involved a woman becoming trapped under a Cruise robotaxi after being struck by a human-driven…
