Take a look at Chinese EV maker Xpeng’s upcoming P5 sedan, which is undercutting Tesla’s Model 3 by a third

Xpeng P5 sedan
Xpeng expects to start deliveries of the P5 in the fourth quarter of 2021.

Chinese electric-vehicle startup Xpeng revealed the pricing for its new electric sedan, the P5, last week – and it’s undercutting Tesla’s Model 3 in China by more than a third.

Xpeng P5 sedan

Sources: Insider, Xpeng

Xpeng will sell six versions of its upcoming P5, priced between 160,000 yuan ($24,670) and 230,000 yuan ($38,550) after subsidies.

Xpeng P5 sedan

The names – and prices – of the six versions are based on their range and level of autonomy.

Xpeng P5

Its estimated cruising range starts at 286 miles, rising to 373 miles for the more expensive models.

Xpeng P5

As well as longer ranges, the more expensive versions come with the hardware for Xpeng’s XPILOT 3.5 autonomous driving assistance system, though the software and upgrades need to be bought separately.

Xpeng P5 sedan

Versions with XPILOT 3.5 feature 32 perception sensors, including 13 high-definition cameras.

Xpeng P5 sedan

Some versions come with light detection and ranging (Lidar) technology, too, which uses lasers to measure the distance, shape, and orientation of objects.

Xpeng P5

All six versions have a top speed of 105.6 miles per hour and can accelerate from 0 to 62 miles per hour in 7.5 seconds.

Xpeng P5

Compared to its pricier sports sedan, the P7, Xpeng is aiming the P5 at families.

Xpeng P5

The seats can be pushed back …

Xpeng P5 sedan

… to turn the car into a sleeping space …

Xpeng P5 sedan

… or a cinema, with the eight built-in speakers.

Xpeng P5 sedan

It’s equipped with a 15.6-inch touchscreen, too.

Xpeng P5 sedan

Xpeng launched pre-orders for the P5 in April and said it expects to start deliveries in the fourth quarter of 2021.

Xpeng P5 sedan
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The story of a man’s search for a charging station during his trip from Boston to New York demonstrates how Tesla owners still have an advantage over other electric-car owners

Mustang Mach E GT Performance Edition 03
Mustang Mach-E GT Performance Edition.

  • A Mustang Mach-E driver had to pull over four times to find a charging station during a 200-mile trip.
  • Axios editor Dan Primack said he felt panicked as he searched for a charger that would work with a non-Tesla car.
  • Increasing charging infrastructure is a key step toward electrifying transportation in the US.
  • See more stories on Insider’s business page.

Charging infrastructure poses a major hurdle for electric-vehicle adoption and one man found that it represents an even greater difficulty for drivers who don’t own a Tesla.

During a drive from Boston to New York City, Axios editor Dan Primack said his battery dropped past 23% before he was able to find a charging station that would work with his Ford Mustang Mach-E.

“EV owners not only need to plan, but also need backup plans when the original ones fall through,” Primack wrote.

Driving range anxiety has been identified as one of the main issues the US faces when it comes to the electrification of transportation. A June study found that last year one in five EV owners switched back to a gas-powered car due to the hassle of charging their electric car.

Primack said while the Mustang Mach-E, which has an estimated range of about 230 miles per full charge, has been efficient for short drives, he faced some difficulty on the over 200-mile commute to New York City. During what should have been a simple drive, he was forced to pull over at four different charging stations in order to find a station that he could use to recharge his Mach-E.

At two of the four stations, he was only able to find Tesla chargers, and at one there were no chargers. He said he was not able to recharge his car until he found the fourth station in a parking garage.

Primack said he felt “panic” during the experience – a feeling he had not expected to experience in an area of the country that had prioritized electrification. He pointed out that his trip cut through high traffic roads in the northeast – an area that was known for being early EV adopters.

His account raises the question of how much more stressful his trip could have been, had it taken place in a more rural area.

Efforts to expand the charging infrastructure in the US

Increasing the US network of charging stations is a top priority in President Joe Biden’s infrastructure bill, which sets aside billions of dollars for EV charging.

As of February, there are just under 100,000 electric car charging stations in the US, according to a report from I. Wagner, a researcher on traffic and motor vehicle manufacturing. To date, Tesla supercharging stations alone account for over 25,000 stations, according to data from the company’s website. While regular Tesla stations can be used with non-Tesla EVs through a special adapter, supercharging stations are not yet compatible with other electric cars.

Tesla CEO Elon Musk said on Twitter earlier in July that he plans to make Tesla’s entire charging network accessible to all EV drivers by the end of the year. Though, the CEO said during the company’s earnings call on Monday that non-Tesla drivers will have to pay extra to use the company’s supercharging network and would likely have to purchase an additional adapter.

“It is our goal to support the advent of sustainable energy,” Musk said at the meeting. “It is not to create a walled garden and use that to bludgeon our competitors, which is sometimes used by some companies.

For now, Primack’s story highlights the need for greater charging infrastructure in the US, as well as the advantage Tesla holds over its competitors when it comes to EV charging.

Read the full story on Axios.

Read the original article on Business Insider

Tesla shrugs off the global chip shortage to post its most profitable quarter yet

Tesla CEO Elon Musk in a black suit walks on stage in front of an image of a Model Y vehicle
Tesla reported its earnings for the second quarter of 2021 on Monday afternoon.

  • Tesla reported its earnings for the second quarter of 2021 on Monday afternoon.
  • The electric-car maker crushed Wall Street’s expectations for revenue and profit.
  • The company largely escaped the worst effects of a global semiconductor shortage straining the industry.
  • See more stories on Insider’s business page.

Tesla on Monday posted its most profitable quarter yet, beating Wall Street’s expectations even as a microchip shortage and other supply-chain troubles complicate car production.

Here are the important numbers:

  • Revenue: $11.958 billion, compared to an expected $11.36 billion
  • Earnings: $1.45 (adjusted) per share, compared to an expected $0.974 per share.

Elon Musk’s automaker reported $1.14 billion in (GAAP) net income, more than double the $438 million it made during the first quarter of 2021.

For the first time, Tesla’s quarterly profits exceeded $1 billion. It’s also the first quarter that Tesla turned a profit even without counting sales of zero-emission credits to other automakers, a revenue source it has historically relied on to stay in the black and which tallied $354 million for the quarter.

Tesla said it was able to grow its operating income mainly by increasing volume and reducing costs. That growth was offset by factors including a $23 million depreciation of its bitcoin holdings.

The company has posted strong sales figures in 2021 even as a global chip shortage hobbles vehicle production worldwide and forces automakers to idle production lines.

“Supply chain challenges, in particular global semiconductor shortages and port congestion, continued to be present in Q2,” the company said. “The Tesla team, including supply chain, software development and our factories, worked extremely hard to keep production running as close to full capacity as possible.”

However, Tesla said it has shifted production of its electric semi-truck to 2022 due to “global supply chain challenges” and to focus on ramping up production at upcoming factories in Berlin and Austin. The company said it expects to start production at both plants in 2021. The Berlin facility was supposed to open July 1, but bureaucratic hurdles and environmental concerns have delayed those plans indefinitely.

The electric automaker delivered 201,250 cars during the second quarter, smashing the 184,800-vehicle record it set during the previous three months. That put Tesla on the path toward selling more than 800,000 vehicles in 2021, a significant increase over the 500,000 it sold in 2020.

Shares moved higher by about 1.5% in late trading Monday following the release.

Read the original article on Business Insider

The 10 longest range electric cars you can buy in the US

Tesla Model Y crossover
Tesla reigns supreme when it comes to range.

  • Range anxiety is one of the biggest hurdles facing widespread adoption of electric vehicles.
  • Many EVs on the US market can go well over 200 miles on a charge.
  • But Tesla is still the brand to beat when it comes to range.
  • See more stories on Insider’s business page.

Range anxiety is almost always cited as one of the biggest hurdles to widespread adoption of electric vehicles.

Today, most people would rather own a car that they can drive vast distances and fill up with dinosaur goo in a matter of minutes over a battery-powered vehicle with limited range and a slower charge.

But the fear of running low on electrons without a plug nearby may soon be a thing of the past.

Battery technology is improving quickly, and there are several electric cars on the US market that can travel well over 200 miles between charges – plenty for most short or medium-length trips. The best of the best can go more than 300.

Here are the 10 longest-range EVs you can buy in the US today.

10. Kia Niro EV – 239 miles

2020 Kia Niro EV.
2020 Kia Niro EV.

Starting at $39,000, Kia’s electric crossover offers solid range for less than the price of the average new car in the US. Plus, when you factor in the $7,500 federal EV tax credit, the Niro becomes even more of a bargain. There’s also a fancier trim on offer for around $45,000.

9. Chevrolet Bolt EUV – 247 miles

EMBARGO 2/14/2022 4PM ET 2022 Chevrolet BoltEUV 010
2022 Chevrolet Bolt EUV.

For 2022, Chevrolet launched a compact crossover version of the Bolt EV – the Bolt EUV, standing for “electric utility vehicle.” The $33,995 EUV is a bit bigger and rides a bit taller than its cousin, giving it a slightly shorter range.

8. Hyundai Kona Electric – 258 miles

Hyundai Kona Electric
Hyundai Kona Electric.

The 2021 Kona Electric retails for $37,390 and puts out 201 horsepower. It’s built on the same platform as the Kia Niro. An Ultimate trim is available for around $46,000.

Read more: The 5 best companies to bet your career on in the booming electric vehicle industry

7. Chevrolet Bolt EV – 259 miles

EMBARGO 2/14/2022 4PM ET 2022 Chevrolet BoltEV 006
2022 Chevrolet Bolt EV.

Chevy gave the Bolt EV a radical redesign for the 2022 model year, keeping the hatchback’s egg shape but bestowing it with sharper looks all around. The new model has an identical range to its predecessor, but a reduced starting price of $31,995. That makes it one of the cheapest EVs you can buy.

6. Volkswagen ID.4 Pro – 260 miles

Volkswagen ID.4
Volkswagen ID.4.

Volkswagen is trying hard to catch up to Tesla, far and away the dominant force in EVs. And although its rebrand to “Voltswagen” turned out to be a badly timed April Fools’ Day joke, the company is making strides toward that goal. The ID.4, its first US-market EV, launched in early 2020 for $40,000.

5. Ford Mustang Mach-E – 305 miles

Mustang Mach E GT Performance Edition 03
Mustang Mach-E GT Performance Edition.

The Mustang Mach-E came on the scene in late 2020 as Ford’s first EV. Its California Route 1 trim has the most range, while the base Select model delivers 230 miles. Other ranges are available depending on whether customers choose a larger battery or all-wheel drive.

The Mach-E California Route 1 will run you $50,400 to start.

4. Tesla Model Y Long Range – 326 miles

Tesla Model Y.
Tesla Model Y.

The Model Y ranks at the bottom of Tesla’s lineup in terms of range, but it still beats out every other EV on the market. The Long Range model will run you $53,990. As with other Teslas, a pricier high-performance model is available with less range.

3. Tesla Model 3 Long Range – 353 miles

Tesla Model 3_4
Tesla Model 3.

The Long Range Tesla Model 3 delivers more than 350 miles of range for $50,000. The base model, by comparison, delivers 263 miles of range for $10,000 less.

2. Tesla Model X Long Range – 360 miles

2021 Tesla Model X crossover
Tesla Model X.

The $95,000 Model X crossover is Tesla’s second-oldest model behind the Model S. The burly family SUV not only has one of the most impressive ranges in the industry, it also claims to hit 60 mph in 3.8 seconds.

1. Tesla Model S Long Range – 405 miles

Tesla Model S
Tesla Model S.

Tesla’s flagship Model S has been the EV to beat for years. The sleek sedan leads the industry in range, and its most souped-up variant – the Model S Plaid – launched last month as the quickest production car in existence.

A handful of future EVs – notably the Lucid Air sedan – promise to go further than the Model S, but for now, Tesla remains the clear choice if range is your top concern.

Read the original article on Business Insider

2 of Tesla’s most promising rivals keep getting delayed

Lucid Air exterior_8
Lucid’s Air sedan is set to hit streets this year.

  • Lots of startups are aiming to take on Tesla in the ever-growing electric-vehicle space.
  • Rivian and Lucid Motors are two of the most promising contenders.
  • Both have delayed their debut vehicles due to the pandemic but plan to start deliveries in 2021.
  • See more stories on Insider’s business page.

Tesla has reigned supreme as the lord of electric vehicles for years, even as established manufacturers and scrappy startups attempt to come for its crown.

Two of the most promising upstart EV makers – Rivian and Lucid Motors – were on the brink of launching their first vehicles onto the US market this year. But the pandemic had other plans.

Rivian earlier this month told customers who had reserved Launch-Edition models of its adventure-focused SUV and pickup that they’d have to wait a few extra months to take delivery. The R1T truck’s launch was postponed from July to September, while the R1S SUV will now arrive later in the fall, Rivian CEO RJ Scaringe told customers in an email.

“The cascading impacts of the pandemic have had a compounding effect greater than anyone anticipated. Everything from facility construction to equipment installation, to vehicle component supply (especially semiconductors) has been impacted by the pandemic,” he said.

Rivian R1S
The Rivian R1S was delayed to the fall.

Rivian first pushed R1T deliveries by a month in May due to hurdles like shipping delays and the ongoing microchip shortage, a spokesperson said.

Read more: Rivian-rival Lucid’s CEO thinks the EV industry is due for a brutal shakeout because startups are missing one key ingredient

Similarly, Lucid in February delayed the launch of its debut luxury sedan – the Air – to the second half of 2021. Customers were supposed to receive their cars in the spring. In a letter, Lucid CEO Peter Rawlinson chalked up the delay to the pandemic’s impact on the startup’s testing activities, supply chain, and its preparations for sales and service.

That was the second time Lucid shifted its plans due to the pandemic; the startup first planned to start producing the Air in late 2020.

With a claimed range of more than 500 miles and a starting price of around $77,000, the Air is set to give the Tesla Model S a run for its money when it hits streets – on paper, at least. Tesla has led the industry in range for ages with its 400-plus-mile Model S.

Rivian R1T
Rivian says customers will start receiving their R1T pickups in September.

Lucid and Rivian represent two of the EV startups furthest along in their development. Both have operational factories, showrooms, and heaps of binding preorders, which can’t be said of most new companies trying to replicate Tesla’s success. Rivian has amassed several billion in funding from investors like Amazon and Ford. Lucid is preparing to go public through a reverse merger in a deal that will give it $4.5 billion in fresh funding.

Although Lucid is on track to start shipping cars this year, the pandemic has made the final stretch more difficult, Rawlinson told Insider. Lucid has run up against quality issues with some of its suppliers – problems that, under normal circumstances, would’ve been addressed long ago with trips to suppliers. The pandemic ruled that out.

But Rawlinson wants to get every detail spot on, and that’s why he pushed the Air’s launch.

“This is a one-shot deal to get it right. Why don’t we go really conservative?” he told Insider.

Read the original article on Business Insider

Tesla wants owners to pay $1,500 for hardware they thought they already had

A white Tesla Model S is pictured at a Tesla facility in Littleton, Colorado.
One long-time Tesla owner felt like the company is “screwing over its earliest supporters.”

  • Tesla launched a subscription option for its Full Self-Driving driver-assistance feature.
  • Tesla said in 2016 that all cars moving forward would have the hardware for Full Self-Driving.
  • But some owners are being asked to pay $1,500 to upgrade their cars’ computers.
  • See more stories on Insider’s business page.

Tesla launched a long-awaited subscription option for its Full Self-Driving feature this month, slashing the system’s cost from a hefty $10,000 one-time payment to $199 per month.

The subscription, which Elon Musk had been promising for months, is huge for some Tesla owners as it allows them to test out Full Self-Driving without blowing the college fund. Moreover, buyers can cancel at any time if they don’t think the feature – which automates some driving tasks but doesn’t make cars autonomous – is worth the cost.

But there’s an expensive catch that’s peeving some long-time Tesla owners.

People who bought their Tesla before the middle of 2019 need to fork over $1,500 to upgrade their vehicle’s computer if they want to subscribe. That directly contradicts the automaker’s 2016 announcement that all vehicles built from that point on would come equipped with the hardware to run Full Self-Driving.

“It feels like Tesla is screwing over its earliest supporters,” Arjun, who bought a Model 3 when it launched in 2018 and described himself as a “long-time Tesla supporter, stockholder, and fan,” told Insider. “We are not asking for a quick buck or a discount, we are just asking for the hardware we were told came preinstalled on our vehicles.”

Arjun, who asked that Insider not use his full name, said it was a “huge selling point” that his Model 3 came with Full Self-Driving hardware, given that he intended to purchase the software at some point down the line. He called Tesla’s move a “blatant bait and switch.”

Read more: Read the $1 million-penalty contract Elon Musk’s tunnel company used to keep its tech secret

Other Tesla owners in similar situations aired their grievances on social media.

“Would be nice to get a cheaper installation or something, considering we were helping them when dying was a real possibility for Tesla. However, I expect nothing,” one Reddit user said.

“I have a 2018 M3 and I’m furious,” another person said, referring to the Model 3 sedan. “I’d love to see some legal action taken.”

Some also lamented that in order to subscribe they have to buy Autopilot, a the company’s driver-assistance system that used to cost $3,000 but became standard on all Teslas in 2019.

Tesla didn’t return a request for comment.

When Tesla launched its latest-generation Full Self-Driving computer in 2019, it began offering free upgrades to owners who had paid full fare for the feature. But those who held out for the subscription are on their own.

Tesla has a shaky history of not delivering on its automated-driving tech. Musk has been saying since at least 2016 that full autonomy is right around the corner. He promised that by 2020, owners would be able to generate passive income by turning their cars into robotaxis.

But Full Self-Driving is still far from living up to its branding. The most advanced beta version of the software – currently in the hands of a couple thousand Tesla owners – requires full driver attention and still has major flaws.

Arjun says Tesla should cover the hardware upgrade costs for vehicles that Tesla claimed had the right computers to begin with.

“I love my Model 3 and continue to believe in the tech behind Tesla, but they’re no longer a start up and they have to behave like a company who stands behind their word,” he said. “I believe Tesla should waive the fee/absorb the cost, and then I’d be happy to try out the service. Until then, I’ll stay on my obsolete hardware.”

Read the original article on Business Insider

Tesla challenger Xpeng’s new P5 sedan will start at $24,670, more than a third less than the basic Model 3

Photo by BRITTA PEDERSEN:POOL:AFP via Getty Images
Elon Musk’s Tesla has faced a string of setbacks in China.

  • Xpeng just revealed the pricing for its P5 electric sedan, which starts at $24,670.
  • Tesla’s Model 3 sedan starts at $38,700 in China.
  • China is the world’s largest car market and accounted for a fifth of Telsa’s revenues last year.
  • See more stories on Insider’s business page.

One of Tesla’s closest rivals in China has revealed the pricing for its new electric sedan – and it’s undercutting Tesla’s Model 3 by more than a third.

Xpeng will sell six versions of its upcoming P5, priced between 160,000 yuan ($24,670) and 230,000 yuan ($38,550) after subsidies. Tesla’s Model 3, by comparison, costs from 250,900 yuan ($38,700) in China after subsidies, with a higher-end version priced at 339,900 yuan ($52,400).

China is the world’s largest car market and demand for electric vehicles is booming thanks in large part to generous government subsidies for “green” cars.

Tesla made around a fifth of its global revenues in China last year but it’s facing increasing competition from local rivals such as Nio, Li Auto, and Xpeng.

Read more: Rivian-rival Lucid’s CEO thinks the EV industry is due for a brutal shakeout because startups are missing one key ingredient

Xpeng says the P5 is semi-autonomous with 32 perception sensors, including 13 high-definition cameras alongside light detection and ranging (Lidar) technology, which uses lasers to measure the distance, shape, and orientation of objects.

The P5 has a top speed of 105.6 miles per hour and can accelerate from 0 to 62 miles per hour in 7.5 seconds. Its estimated cruising range starts at 286 miles, rising to 373 miles for the more expensive models.

Xpeng launched pre-orders for the P5 in April and said that it expects to start deliveries in the fourth quarter of 2021.

The P5 is Xpeng’s second sedan. It started deliveries of its pricier sports sedan, the P7, in June 2020. It also sells the G3, a long-range smart SUV.

The P5 pricing announcement from Xpeng comes as Elon Musk’s electric vehicle giant Tesla struggles in China.

Tesla suffered a huge sales hit in China in April after a string of crises. These included a meeting with Chinese regulators over quality issues like unintended acceleration and battery fires, reports that Chinese officials had restricted the use of Teslas among government personnel over their built-in cameras, and a protest at the Shanghai auto show because of apparent quality-control issues related to the automaker’s brakes.

Tesla’s sales bounced back in May – but it then had to recall 285,000 cars in June for a remote software update because drivers were accidentally turning on its Autopilot feature.

While Tesla is struggling with its reputation in China, Xpeng is reporting record growth.

Xpeng said that it delivered 30,738 vehicles between January and June, an increase of 459% year-over-year, including record monthly deliveries of 6,565 vehicles in June. This was made up of 4,730 P7s and 1,835 G3s.

Read the original article on Business Insider

From swerving into a median to narrowly missing poles, videos of Tesla’s latest Full Self-Driving update don’t inspire much confidence

The interior of a Tesla driving down the highway
Tesla interior

  • Tesla launched the latest version of its Full Self-Driving beta after a long delay this month.
  • Beta testers immediately started posting clips of the driver-assistance system.
  • The software is impressive and advanced, but still gets drivers into dangerous situations.
  • See more stories on Insider’s business page.

Earlier this month, Tesla rolled out a long-awaited update to its Full Self-Driving software for beta testers. It’s impressive – but it still doesn’t make cars autonomous.

The electric-vehicle maker first beamed out access to the pre-production tech in October, and it’s now in the hands of a couple thousand loyal Tesla owners. It takes Tesla’s existing driver-assistance system, which is mainly suited for predictable highway driving, and adds the ability to automate driving tasks on more complicated non-highway streets.

Videos of the new-and-improved software in action show that it can impressively navigate some tough driving situations, but there are plenty of dangerous flaws and glitches too.

In one clip, a Tesla confidently handles a tight, unmarked road with an oncoming car. The computer does pretty much exactly what a human would do: slow down and pull over to let the oncoming car go first, then pull forward once it’s clear that the other driver is giving right of way.

Another shows the system navigating stop-and-go traffic:

Another shows that it can see stop signs and make turns on dark – albeit empty – city streets, too. Some videos also show cars stopping for pedestrians and other vehicles.

Read more: Fort Lauderdale asked Elon Musk to build a commuter train tunnel. So how did it end up considering a $30 million beach tunnel for Teslas instead?

But the system still struggles with utterly basic driving tasks, putting drivers and bystanders in dicey situations. In one clip documenting a drive in downtown San Francisco, the car drunkenly swerves into a striped median, forcing the driver to take control.

In the same video, the car stumbles through a left turn and nearly oversteers into a parked car.

In a clip set in Chicago, the car slowly creeps through intersections, comes to random stops, and only notices a road closure at the last second. A bunch of orange barricades is something any average human driver would recognize before actually attempting a turn.

All of these dangerous hiccups show just how far Tesla is from replicating human driving. But one particularly alarming clip out of Seattle takes the cake.

In the nighttime video, the beta fails to recognize the massive concrete columns supporting the city’s monorail – and the car nearly steers into them twice in an attempt to change lanes.

If a highly automated car should be able to do one thing, it’s recognizing large stationary objects and avoid them. But it appears that the car had no idea the pillars were even there, judging by the visualization displayed on the center screen.

The people in the car wonder whether the failure is a result of Tesla shifting to a camera-only system that doesn’t use radar. And that’s certainly a possibility. Car companies, Tesla included, have relied on radar for years for features like emergency braking and cruise control. But Tesla in May decided to stop using the sensors and take them out of its future cars.

Tesla has adopted a fast-and-loose approach to its automated-driving tech that other automakers aren’t taking. And safety advocates have taken issue with Tesla’s strategy of having amateur drivers test unproven technology on public roads. Pedestrians, cyclists, and other drivers didn’t sign up to be subjects in this lab experiment, they argue.

But the company is under mounting pressure to deliver a final version of Full Self-Driving to customers, who have shelled out up to $10,000 over the years for the add-on under the promise that it would eventually enable Teslas to drive themselves. It’s increasingly looking like that’s not happening anytime soon.

Read the original article on Business Insider

GM could soar 50% as the auto maker trades more like a tech company in coming years, Wedbush says

A red Chevrolet Volt hybrid car is charging in a parking garage.
GM’s Chevrolet Volt hybrid car charges at a parking garage.

  • GM shares could pop up by about 50% over the next 12 months, Wedbush analysts say.
  • Investors may start seeing GM more as a play on disruptive technology and less of a traditional auto maker.
  • Analyst Dan Ives set a 12-month price target of $85 per share.
  • See more stories on Insider’s business page.

General Motors shares could jump by nearly 50% over the next year as the automaker’s plans for producing more electric vehicles sets the stock on course to trade as disruptive tech play, according to Wedbush.

The assessment comes as the company behind the Chevrolet, Buick and AMC brands in June pledged to increase investment to $35 billion toward research and development for electric vehicles through 2025.

“With [GM CEO Mary] Barra & Co. developing game-changing battery technology under the Ultium Platform, GM is in a great position to take advantage of a $5 trillion market emerging over the next decade. By leveraging this technology, the legacy auto will be able to eat up market share against pure-play EVs in all aspects of the industry,” said Wedbush analyst Dan Ives in a note published Thursday initiating coverage of GM with an outperform rating.

He set a 12-month price target of $85 from Tuesday’s close at $57.46, representing a possible climb of 48% in the stock. Shares during Friday’s session bounced up by more than 4% to trade above $58 each.

“We believe as GM proves out its EV vision over the coming years the stock will be re-rated more as a disruptive technology and EV play, rather than its traditional auto valuation,” said Ives.

2021 is setting up as an inflection point for GM as it works on delivering at least 20 new EV models within the next two years and 30 in the next three, that analyst said.

Meanwhile, the “software and services business attached to the EV shift, as autonomous/assisted driving capabilities and battery technology improves, represents a potential gold mine for the company bringing in $20 billion to $30 billion of incremental services and software we see over the next 5-7 years,” he said.

US consumers have nearly 20 electric vehicles to choose from for purchase and more than 10 new models will go on sale by the end of 2021.

Read the original article on Business Insider

Tesla’s first European plant was supposed to open on July 1, but permit delays, lizards, and other problems have postponed it indefinitely

Tesla CEO Elon Musk visits the Gigafactory Berlin construction site on May 17, 2021.
Tesla CEO Elon Musk visits the Gigafactory Berlin construction site on May 17, 2021.

  • Tesla’s new factory outside of Berlin, Germany, was supposed to open on July 1.
  • Permitting issues and environmental activists have delayed the plant’s opening.
  • Tesla plans to churn out 500,000 cars at the plant, which is critical to its European strategy.
  • See more stories on Insider’s business page.

“Deutschland rocks,” Elon Musk told reporters during a September 2020 visit to the construction site of Tesla’s first European car plant. Nearly a year later, Gigafactory Berlin’s planned July 1 opening date has come and gone, and there’s no word yet on when it will open.

Since beginning work on the sprawling plant in early 2020, Tesla has faced setback after setback over issues like environmental impact and permitting. It all means that Tesla is way behind schedule in opening up the factory, the cornerstone of its European strategy where it plans to churn out half a million cars annually.

With traditional carmakers like Volkswagen, BMW, and Mercedes-Benz doubling down on electric cars and breathing down Tesla’s neck, the company likely wants to avoid any more stumbles. But it remains unclear when the plant will open its doors.

Elon Musk vs. German bureaucracy

Tesla has hit one bureaucratic slowdown after another since it broke ground in the small town of Grünheide, near Berlin.

In December, Tesla was forced to temporarily stop constructing parts of the plant after it failed to pay a €100 million deposit on time. In June, it had to resubmit permit applications to account for a battery-production facility. The public now has until August 16 to review the documents and file any objections, according to the Brandenburg State Office for the Environment.

An aerial photo of the Gigafactory Berlin construction site.
A drone photo of the Gigafactory Berlin construction site on May 30, 2021.

This whole time, Tesla has been building the factory under a series of provisional permits – at its own financial risk – as it waits for full approval from the environmental authority in Brandenburg. Theoretically, it would have to dismantle the plant if the project isn’t given the green light, and it’s unclear when Tesla will get full authorization.

Tesla has gotten fed up with the delays. In April, the company sent a letter to the Brandenburg state government complaining about the “irritating” approval process that had begun 16 months earlier, Bloomberg reported.

The problems haven’t gone unnoticed by Musk, either.

“I think there could be less bureaucracy, that would be better,” the CEO told reporters at the Grünheide site in May.

A battle over lizards

Tesla has also met fervent opposition from environmental groups who are concerned about the mammoth plant’s impact on the local wildlife and water supply. Activists have mounted demonstrations and gone through the courts to make their voices heard.

In February 2020, as Tesla prepared the site for construction, a German court ruled that the company had to temporarily stop clearing trees while it considered objections from the Green League. Courts told Tesla to suspend deforestation efforts again in December after activists complained that construction was disturbing the habitats of hibernating snakes and lizards.

Tesla Berlin Germany factory construction site forest
A view of the Tesla Gigafactory construction site in Gruenheide near Berlin, Germany, December 8, 2020.

Environmentalists are also worried about the plant’s effect on the local water supply since part of it is located in a drinking-water protection area. Tesla has revised down its water demands.

A delayed opening

While Tesla’s sky-high share price makes it the most valuable car company on the planet, it didn’t earn that title by selling the most cars. Far from it.

The company moved a record 500,000 vehicles in 2020. Some of the world’s largest automakers sell that many of a single model. Expanding production volumes and ramping up sales is crucial to Tesla’s future profitability, especially as legacy manufacturers and startups begin to flood the market with new EVs.

So when will Gigafactory Berlin get up and running?

In April, Musk said Tesla could start limited production at the plant by the end of the year. But, as Musk himself admits, he’s not the best with predictions.

Read the original article on Business Insider