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Recent disclosures of auto sales by automakers for Q1 have shed light on a significant relationship between pricing strategies and the sales performance of electric vehicles (EVs). A recent survey conducted by Edmunds further underscores this correlation, especially among American consumers, revealing a notable misalignment between consumer preferences and the current offerings in the market.
The survey findings indicate that 47% of respondents are in the market for EVs priced below $40,000, with 22% expressing interest in options below the $30,000 mark. However, there are currently no new EV models available below $30,000, and only four below the $40,000 threshold. In 2023, the average price of an EV stood at $61,702, compared to $47,450 for conventional vehicles.
This disparity is exerting pressure on automakers to recalibrate their pricing strategies to stimulate sales. Consequently, companies like Ford are postponing the launch of upcoming EV models and reallocating resources towards hybrid alternatives. Even industry leader Tesla witnessed a decline in deliveries, falling short of analysts’ expectations by 20% compared to Q4 2023. Similarly, Rivian, a newcomer in the EV space, reported disappointing results.
In response to these challenges, Tesla has adopted a dual approach: revising prices downward once again and pivoting towards revenue generation through sales of its Full Self-Driving software, currently available with a complimentary one-month trial for all customers.
Now, let’s delve into the latest developments!
Insider Insights: In this segment, we provide exclusive insights from founders, investors, engineers, policy experts, and more.
This week, insider sources revealed the closure of Ghost Autonomy, a company that had amassed over $220 million in funding and recently partnered with OpenAI. Confirmation from the company’s official channels corroborated the closure, impacting around 100 employees.
Founded in 2017, Ghost Autonomy had undergone multiple transformations, focusing on developing products for highway driving and urban environments, particularly last-mile delivery. However, funding constraints ultimately impeded the company’s ability to bring its products to market.
Additionally, Maniv, a venture capital firm originally based in Israel and now expanding to NYC, has successfully concluded a $140 million fund. The firm remains steadfast in its early-stage investment strategy, targeting startups operating at the intersection of mobility, transportation, and energy.
The firm’s approach has evolved to encompass geographic expansion and a broadening of its investor base. Moving away from the term “mobility,” Maniv now emphasizes deep tech, decarbonization, and digitization within the transportation sector. Notable investors in the fund include BNP Paribas Personal Finance, Shell’s venture arm, and Enterprise Mobility.
Other Noteworthy Deals:
Alsym Energy, headquartered in Massachusetts, secured $78 million in a Series C round led by General Catalyst and Tata, with participation from Drads Capital, Thomvest, and Thrive Capital. BlaBlaCar secured a €100 million revolving credit facility ($108 million) for its carpooling and bus ticketing services.
Recent Developments and Highlights:
Autonomous Vehicles: Waymo and Uber have expanded their partnership, enabling Waymo vehicles to fulfill Uber Eats orders in the metro Phoenix area.
Electric Vehicles, Charging, and Batteries: Apple has laid off 614 employees in California following the cancellation of its electric car project. Canoo reported its Q4 and full-year earnings, revealing significant expenses, including CEO Tony Aquila’s private jet costs. Faraday Future narrowly avoided eviction from its Los Angeles headquarters after reaching an agreement with the building’s owner. The National Highway Traffic Safety Administration initiated a third investigation into Fisker’s Ocean SUV, focusing on door functionality issues. Tesla reportedly abandoned plans to develop a lower-cost EV in favor of a robotaxi, leading to controversy and conflicting reports.
Stay tuned for next week’s edition of This Week’s Wheels, featuring the Mercedes-Benz EQE 350 4Matic sedan, a Lexus LC500 hybrid, and a Mercedes eSprinter, along with exciting e-bike reviews. Share with us your preferences for vehicles, including two-wheelers, you’d like to see covered!
