Trade News – Page 91

Elon Musk loses bid to end SEC ‘muzzle’ over tweets

A federal appeals court on Monday rejected Elon Musk's bid to modify or end his 2018 securities fraud settlement with the U.S. Securities and Exchange Commission that required a Tesla Inc. lawyer to approve some of his tweets in advance.

The 2nd U.S. Circuit Court of Appeals in Manhattan rejected Musk's claim that the SEC exploited his consent decree to conduct bad-faith, harassing investigations that violated his First Amendment free speech rights under the U.S. Constitution.

Musk's decree resolved an SEC lawsuit accusing him of defrauding investors with an Aug. 7, 2018, tweet that he had "funding secured" to take his EV company private.

It required advance review of tweets that might contain material information about Tesla. Musk and Tesla each also paid $20 million in civil fines, and Musk gave up his role as chairman.

In the appeal, Musk's lawyers called the pre-approval mandate a "government-imposed muzzle" that amounted to an illegal prior …

Tesla’s new car-making process stokes debate among industry experts

Tesla Inc.'s new vehicle-assembly system, which created instant buzz when it was unveiled in March, ignited a debate among auto manufacturing experts on whether CEO Elon Musk's so-called unboxed process is radical, revisionist or derivative -- or all of the above.

Musk believes the company needs to radically rethink conventional manufacturing methods in order to build more affordable - and profitable - EVs in higher volumes.

Investors have been waiting for Tesla to announce what is perceived as the company's holy grail: An EV priced under $30,000. Right now, the least expensive Tesla starts at more than $40,000.

The unboxed assembly process is intended to enable Tesla to hit that ambitious price target.

One expert described the process as "revolutionary," with the potential to upend the auto industry's traditional moving assembly line. Others questioned whether a process that relies on previously tested techniques such as modular assembly c…

Stellantis stops construction of Canada EV battery module plant over federal funds

Stellantis and LG Energy on Monday ceased some construction of its planned electric-vehicle battery factory in Canada as it continues to spar with the federal government over financial assistance.

The automaker is accusing Ottawa of reneging on a previously made promises regarding the plant in Windsor, Ontario, which borders Detroit.

“As of today, the Canadian Government has not delivered on what was agreed to therefore Stellantis and LG Energy Solution will begin implementing their contingency plans. Effective immediately, all construction related to the battery module production on the Windsor site has stopped,” Stellantis said in a statement Monday.

The C$5 billion ($3.7 billion USD) plant, slated to begin operations in August 2024, will be able to produce 45 gigawatt-hours of lithium-ion cells and modules a year to feed the automaker’s assembly operations in Canada and the U.S., Stellantis previously said.

Cells…

Tesla contributes almost 25% of Shanghai’s total auto production

Tesla Inc. contributed almost one-quarter of Shanghai's total automotive production value last year, local media reported, in a sign of how quickly the electric car maker has ramped up output in China.

The U.S. company, which rolled out its first car from its Shanghai factory in 2019, generated production value of 183.9 billion yuan ($26.4 billion) in 2022, accounting for 23 percent of Shanghai's total automotive manufacturing production, Chen Kele, an official at the Shanghai Municipal Commission of Economy and Information, said during a media tour of Tesla's Shanghai plant, according to local media reports.

More than half of Tesla's global deliveries in 2022 were manufactured at the Shanghai plant, which can now produce a maximum of 1.1 million cars a year.

The production value generated by Tesla's China factory also increased Shanghai's overall industrial production by 1.3 percentage points last year, Chen said. The automaker's push to localize parts …

Column: EV only companies grabbing share, profits from franchised dealers, but how much?

At first glance, the numbers Automotive News reporter Hannah Lutz highlights in her report on electric vehicle makers disrupting franchised dealers in California and a handful of other states are startling.

Dealers, who once had a hand in every new light-vehicle sale in California, have lost nearly 12 percent of the market to Tesla, Rivian and Lucid, companies that sell directly to consumers.

The average California dealer lost about $700,000 in gross profit opportunity last year. The market erosion for dealers is spreading to Colorado, Washington and other states that follow many of the Golden State's environmental and motor vehicle policies.

While Tesla and other EV startups have capitalized on the direct sales model, it's unclear how far that can go. That top line may represent Tesla's success and a dearth of compelling EVs from legacy automakers, something that's about to change with the rollout of dozens of new models in the coming years.

Then…

The Intersection 5-14-23

EV only companies grabbing share, profits from franchised dealers, but how much?

At first glance, the numbers Automotive News reporter Hannah Lutz highlights in her report on electric vehicle makers disrupting franchised dealers in California and a handful of other states are startling.

Dealers, who once had a hand in every new light-vehicle sale in California, have lost nearly 12 percent of the market to Tesla, Rivian and Lucid, companies that sell directly to consumers.

The average California dealer lost about $700,000 in gross profit opportunity last year. The market erosion for dealers is spreading to Colorado, Washington and other states that follow many of the Golden State's environmental and motor vehicle policies.

While Tesla and other EV startups have capitalized on the direct sales model, it's unclear how far that can go. That top line may represent Tesla's success and a dearth of compelling EVs from legacy automakers, something that's…

Blink Charging’s Brendan Jones on building a reliable charger network (Episode 198)

The president and CEO of Blink Charging discusses his company’s new contract with the U.S. Postal Service, his time spent launching the Nissan Leaf and global charging needs in an age of electrification.

How do I subscribe?

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Highlights from the latest Daily Drive podcasts, May 8-10

Here are highlights from the latest episodes of 'Daily Drive', Automotive News' weekday podcast, May 8-10, hosted by Jamie Butters with Kellen Walker.

“Somewhere in the middle, the pendulum has to settle between being extremely entrepreneur-friendly as it was for the last couple of years, to right now, being a little bit more investor-friendly.” — Steve Greenfield, founder and CEO of Automotive Ventures

“The product will do the convincing, right? We think we have a best-in-class product … that will convince customers.” — Michael Lohscheller, CEO of Nikola

GM is “going to secure about 150,000 tons of steel, of green steel, that will go in a variety of their platform vehicles as we speak.” — Kenneth Jaycox, chief commercial officer of U.S. Steel, talking about the company’s supply agreement with General Motors for U.S.-sourced sustainable verdeX Steel

— Listen to these and other shows at autonews.com/dailydrive.

Nautilus production in China a betrayal

TO THE EDITOR:

Lincoln is importing a crossover from China? What a disappointment (“2024 Lincoln Nautilus to be made in China, sold in U.S.,” autonews.com, April 17)!

I’ve been a Lincoln owner for the last nine years and must say that I’ve found their cars mostly very good. The drivetrains are excellent.

As my car ages, I face the prospect of its replacement. I thought I’d stay with Lincoln with their Nautilus model.

However, with the Chinese production announcement, there’s no way I’ll consider it. I feel a bit betrayed. We as Americans have been implored for years by Detroit to buy American. Additionally, with everything going on between the U.S. and China, Lincoln does this? What a betrayal!

THOMAS SHIELDS, Rossford, Ohio

How much is that used EV worth?

TO THE EDITOR:

The automotive world is slowly coming to grips with the realization that it is selling batteries, not automobiles.

At present, there is no way to judge a battery’s condition or longevity, thereby putting into question the residual value of a used electric vehicle. It’s a guess at this point.

It used to be that when you drove a new car off the lot, you could refer to any number of qualified publications and/or auctions. No longer.

Not only are automakers making a big gamble on EVs, they are expecting consumers to do the same.

I am not among those who intend to buy a fancy battery.

PETER C. GRANATA, President, Granata Design, Bluffton, S.C.Granata Design designs boats and off-road vehicles.

Editorial: California bill limiting self-driving trucks is wrong

Legislation introduced in California would prohibit the testing or commercial operation of self-driving big rigs without a human driver. It should be withdrawn or defeated.

California regulations already restrict testing of self-driving technology in such large vehicles. The passage of the legislation would make those restrictions permanent, regardless of any technological progress.

On the surface, California Assembly Bill 316 would seem a sensible safety regulation for a technology that has proved to be expensive, difficult to develop and not necessarily ready for deployment on the nation's highways.

But codifying the restriction permanently into law would have a darker outcome: to obstruct development of a potentially lifesaving and infrastructure-extending technology in the name of saving some high-paying, blue-collar occupations that don't require a college degree.

Let us be clear: We remain highly dubious of the saf…

Evergrande EV unit shareholders sign off on restructuring

HONG KONG -- Shareholders of China Evergrande New Energy Vehicle Group accepted a proposal to dispose of two subsidiaries in a restructuring, according to a filing with the Hong Kong stock exchange on Friday night.

More than 50 percent of the votes under the EV company, a unit of embattled property developer China Evergrande, were cast at a Friday general meeting in favor of a proposal raised in late April, the filing said.

The EV unit on April 25 announced the plan to sell two debt-laden companies to another unit under China Evergrande as part of the automaker's restructuring.

The EV unit was expected to book a $3.6 billion gain from the transfer, while the two companies to be sold held 47 real estate projects altogether, said a previous stock filing by the EV unit.

The deal would help the EV unit focus on the new energy vehicle segment and could help improve its valuation and eventually "may help to attract investors to Evergrande Auto a…