In a recent report, the community-driven, nonprofit electric provider in Texas, Denton Municipal Electric (DME), is attracting interest from several crypto mining companies seeking to establish operations. These companies are eyeing a five-year agreement for powering their mining activities. Texas’ Denton Municipal Electric in Talks With Unnamed Crypto Miners On Feb. 16, the Denton Record […]
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To hear him speak, you would think Volvo Cars’ Scottish chief executive Jim Rowan is very much an electric vehicle crusader.
Standing beside the company’s new EX30 as he unveiled the Swedish carmaker’s full-year results on Thursday, Rowan said Volvo was leading “a paradigm shift for us and for our entire industry”, boasting that only Tesla had stronger profit margins on sales of electric cars.
But that enthusiasm apparently no longer extends to Polestar, Volvo’s dedicated electric marque.
On Thursday, Volvo said it would no longer provide financial support to Polestar and would look at offloading some of its 48pc stake in the company to other shareholders, including China’s Geely. (Most of the rest of Polestar is already owned by Geely chairman Eric Li.)
The news is the latest blow to Polestar, an early mover in electric cars that has struggled to keep up with premium rivals such as Tesla and which remains heavily loss-making despite its cars receiving critical acclaim.
It is also the latest rupture in the electric vehicle industry. Battery-powered cars were once predicted to dominate the vehicle market by the end of this decade, but their sense of inevitability has faded in recent months as sales slow and as targets have been pushed back.
Electric vehicle (EV) sales are expected to decline for the first time in seven years in 2024 in Germany, Europe’s biggest car market, and Renault earlier this week scrapped plans to spin-off its EV unit, Ampere, blaming a lack of strong interest from investors and a slowdown in sales.
“There is a bigger-picture story here. After a period of growth, interest in EVs isn’t as strong as it once was,” says Peter Wells, the director of the Centre for Automotive Industry Research at Cardiff University. “There is a loss of momentum in the market.”
Sales of electric cars in the UK flatlined last year and used prices plummeted, raising questions about their residual value. Globally, sales rose by 31pc, according to market research firm Rho Motion, but this compared to 60pc growth the prior year.
Just as driver interest is moderating, competition is heating up. The market has become increasingly cut-throat as low-priced Chinese manufacturers have expanded internationally, sparking price wars in the US and Europe.
Last week, Tesla’s shares fell by 12pc after the company warned that growth would be “notably lower” in 2024 than shareholders had become accustomed to.
The Polestar name dates back to a Swedish motorsport team in the mid Nineties but was acquired by Volvo in 2015, five years after the Scandinavian car company was sold to Geely.
It originally served as a prototyping station for Volvo concept cars but was spun out as a separate electric car brand in 2017 as a joint venture between Volvo and Geely.
This year was a peak for electric car optimism – it was the year Theresa May introduced the 2035 ban on new petrol and diesel cars (later moved to 2030 by Boris Johnson before Rishi Sunak reversed the move last year).
Its first model, the Polestar 1 sports car, was released two years later, followed by the £45,000 Polestar 2 in 2020.
In 2022, the company went public in New York at a $20bn (£16bn) valuation. It was one of a clutch of electric carmaker IPOs, many of them start-ups that had yet to sell a vehicle. At the time, Polestar’s chief executive Thomas Ingenlath distanced the company from those upstarts, predicting profitability within three years.
But so far, there are few signs of that. Profit has remained elusive, with the company losing $730.9m in the year to the end of September.
The company delayed the release of its next vehicle, the Polestar 3, last year and while sales continue to climb, growth has slowed down. Last year, the company cut delivery targets from 80,000 cars to 70,000 and then 60,000. It eventually delivered 54,600 vehicles.
Volvo, which continues to own a 48.3pc stake, has financially supported the company, including with an $800m loan in 2022.
Other backers have not kept the faith. Shares have fallen by more than 80pc in the last 18 months, putting the company’s market value below $4bn.
“Polestar is an expensive car and a new brand, that combination is quite a difficult one to sustain in a very competitive part of the market,” says Wells. “The European prestige manufacturers want to be in that market. It is largely sustained by corporate buyers but there is only so much corporate buying that can go on and the retail market is harder to reach.”
Polestar has also struggled to make up ground on Tesla, the market leader when it comes to high-end EVs. Decades of development have helped Tesla to drive down manufacturing costs. Polestar, which produces its cars at Volvo and Geely factories, does not have the same luxury, Wells says.
Meanwhile, Volvo’s in-house electric car business has also faced setbacks. Issues delayed the release of new cars last year and just 16pc of its vehicles were electric last year. Volvo remains a way off its 50pc target for 2025 and meeting that goal will require more investment, meaning the company is no longer willing to fund Polestar.
Rowan only had optimistic words about the electric vehicle brand on Thursday. “It’s a natural evolution that they spread their wings. They go and get their own funding and become a more independent company,” he said, adding that the companies will continue to work on production and that Volvo will remain a major Polestar shareholder.
Despite this assurance, and Geely’s insistence that it would “continue to provide full operational and financial support”, Polestar’s shares fell by 14pc on Thursday, hitting a new low.
Meanwhile, shares in Volvo Cars, which had traded at all-time lows, jumped by 26pc. Rowan may insist the relationship is simply becoming more arms length, but investors celebrated what looked like a break-up.
Tesla (TSLA 1.25%) and BYD (BYDDY -0.33%) are the leaders in electric vehicles (EVs). It’s a burgeoning market, but prosperity isn’t a given — a reality that Rivian Automotive (RIVN 2.62%) is slowly coming to terms with these days.
Taking a closer look at where Rivian stands now and its future plans helps illustrate why Tesla and BYD remain the top choices for those looking to ride the wave of the EV industry’s growth, while cautious investors may want to steer clear of Rivian for the time being.
Image source: Getty Images.
First let’s delve into Rivian’s current standing. This will provide a benchmark for Tesla and BYD.
Scaling up production and delivering vehicles is the name of the game in the EV industry. From this perspective, Rivian is making commendable progress. In Q4 2023, the company disclosed that it had manufactured 17,541 vehicles and delivered 13,972. Both those numbers are up more than 70% compared to last year. Over the entirety of 2023, it produced 57,232 vehicles (up 135%) and delivered 50,122 (up 147%). Not too shabby!
But while the company has made improvements to scale production, it has yet to generate any real profits as expenses have soared. As of Q3 2023, Rivian reported a net loss of more than $1.3 billion. Thia means that for every vehicle it sold, it lost $33,000. Without any income, its initial cash position of $19.9 billion in 2021 is now down more than 60% to under $8 billion.
There is reason to be cautiously (emphasis on cautiously) optimistic about Rivian. It’s undeniably on the right track in increasing production, and a future megafactory in Georgia that would increase production nearly 10-fold could be a game changer. However, until more tangible results come about, like turning a profit, these developments remain nothing more than hopeful. If something doesn’t change, and fast, Rivian’s future looks bleak.
Now, let’s look at Tesla and BYD. As with Rivian, I will break down production and deliveries first.
At this point, it’s like clockwork for Tesla to break records, and this past year was no different. In Q4 2023, the company produced 494,989 vehicles and delivered 484,507. In 2023, vehicle deliveries grew 38% from last year to 1.81 million, while production grew 35% to 1.85 million, both new records for yearly totals.
Then there is the Chinese-based BYD, considered the second-best EV maker but quickly closing the gap on Tesla. In 2023, BYD built more than 3 million vehicles. However, 1.57 million of these cars were electric-only models, as the company still produces hybrid vehicles that use gasoline to increase driving ranges. Still, BYD’s car production is up more than 70% this year, and when hybrids are accounted for, total production rose by 62% from last year.
Beyond sheer production and delivery numbers, financial prowess sets Tesla and BYD apart. As of Q3, Tesla boasted net income of more than $1.8 billion and gross profit margins just shy of 18%, while BYD raked in $1.4 billion and achieved margins around 22%. In stark contrast, Rivian has lost more than $10 billion in just over two years with profit margins hovering near a negative 35%.
RIVN Net Income (Quarterly) data by YCharts
Arguably, the most compelling value propositions of Tesla and BYD are their future growth trajectories. Tesla is not only constructing new factories to increase production but also exploring several technological frontiers such as artificial intelligence, autonomous driving, and robotics. Each of these endeavors holds the potential to generate new revenue as the technology becomes refined and integrated into society.
While BYD is less active on the technological innovation front, the company still holds significant future upside. Thanks to its perfection of the EV supply chain, BYD can manufacture a vehicle in as little as 18 months and sell it for as little as $11,000. As the company expands beyond China into Southeast Asian and Latin American markets, it will likely find new levels of success as its suite of cost-friendly models can cater to consumers even in emerging economies.
As for Rivian, its future prospects appear uncertain at best. Although it plans to build a megafactory in Georgia, there are considerable risks as these projects are often susceptible to additional unforeseen costs and delays. By focusing solely on this project, Rivian is taking a big gamble without having established a proven business model.
A banner for electric scooter rental company Bird is displayed outside of the New York Stock Exchange as the company goes public via a SPAC on Nov. 5, 2021.
Spencer Platt | Getty Images
The electric scooter company Bird, once valued at $2.5 billion by investors, filed for Chapter 11 bankruptcy protection in Florida federal court Wednesday.
The company has entered into a “stalking horse” agreement, which sets a floor for Bird’s value, with its existing lenders, according to a release. Bird said it will use the bankruptcy proceeding to facilitate a sale of its assets, which it expects to complete within the next 90 to 120 days.
Bird’s electric scooters are touted as an environmentally friendly alternative to driving and other forms of public transit. They exploded in popularity before the onset of the Covid-19 pandemic, and the company raised more than $275 million in 2019, which pushed its valuation to $2.5 billion.
But after customers stopped riding as they were forced into lockdown in 2020, Bird struggled to recover. The company went public via a merger with a special purpose acquisition company in 2021, but its share price tumbled.
Bird’s bankruptcy proceedings come after the New York Stock Exchange delisted the company in September. Bird failed to comply with the exchange’s requirements after it was unable to keep its market capitalization above $15 million for 30 consecutive days.
The company’s shares began trading on the over-the-counter exchange later that month. As of Wednesday, the stock was trading at less than $1 per share.
Bird Canada and Bird Europe are not part of the company’s Wednesday filing and will “continue to operate as normal,” according to the release.
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The 2026 Cadillac Vistiq EV.
Cadillac
DETROIT — Cadillac plans to round out its upcoming lineup of all-electric SUVs with a three-row vehicle called the Vistiq, a replacement for its current gas-powered XT6.
The General Motors luxury brand on Thursday released images of the Vistiq, which is expected to be its fifth EV, and slot between the company’s current all-electric Lyriq and upcoming Escalade IQ.
Cadillac declined to disclose pricing, availability and other specifics of the 2026 Vistiq, which is expected to go on sale in the U.S. in 2025.
“Our brand now has an EV entry in most luxury segments, offering customers a range of choices, and Cadillac EVs will cover most luxury SUV segments across critical global markets in the next two years,” John Roth, vice president of Cadillac, said in a release.
With confirmation of the Vistiq, Cadillac’s forthcoming EV lineup now matches its traditional internal combustion engine vehicle lineup, aside from an extended ESV version of the Escalade.
The electric SUVs — Optiq, Lyriq, Vistiq and Escalade IQ — are expected to replace their gas-engine counterparts in Cadillac’s lineup by 2030, when the brand has said it will exclusively offer EVs. It’s also producing a bespoke $300,000-plus Celestiq hatchback.
Cadillac has yet to reveal EV replacements for its two current CT4 and CT5 sedans.
The 2026 Cadillac Vistiq EV.
Cadillac
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Media company
named its 2024 car of the year on Thursday. It’s electric, to a degree. The winner is a
hybrid.
2025 Ram 1500 Ramcharger Tungsten
Ram
DETROIT — Automaker Stellantis plans to produce an industry-first electric pickup truck called the Ram 1500 Ramcharger that’s equipped with an electric generator and a gas engine.
If that sounds like an oxymoron, here’s how it works: The truck can operate as a zero-emissions EV until its battery dies and an electric onboard generator — powered by a 27-gallon, 3.6-liter V6 engine — kicks on to power the vehicle.
The outcome is a truck with the benefits of an EV, such as fast acceleration and some zero-emissions driving, without the range anxiety synonymous with most current electric vehicles, according to Ram CEO Tim Kuniskis.
“This is the ultimate answer for the battery-electric truck. No one else has got anything else like it,” Kuniskis told reporters during an event. “This is going to be a game changer for battery-electric trucks.”
The 2025 Ram 1500 Ramcharger is expected to go on sale in late 2024 alongside a previously revealed all-electric Ram 1500 truck without a gas-powered engine or range-extending electric generator.
Stellantis estimates the range of the Ramcharger to be up to 690 miles, including up to 145 miles powered by a 92 kilowatt-hour battery when fully charged without the extended-range power from the gas engine and 130 kilowatt electric generator.
That range compares with up to an expected 500-mile range of the all-electric Ram 1500 REV pickup. It also tops the current Ram 1500, which has a 3.6-liter V-6 engine and an up to 26-gallon tank with a total range of up to 546 miles, according to the U.S. Environmental Protection Agency.
Stellantis did not announce pricing of the Ramcharger, which was revealed Tuesday as part of a redesign of current gasoline-powered Ram 1500 pickups for the 2025 model year.
Kuniskis said the Ramcharger is meant as a bridge between traditional trucks with internal combustion engines and all-electric ones, which currently face significant hurdles regarding charging infrastructure and range anxiety, especially when the vehicles are towing — a main reason to purchase a truck.
Such improvements could be a differentiator for the brand, according to Stephanie Brinley, associate director of AutoIntelligence for S&P Global Mobility.
“It works to address the fact that right now the industry and the pickup truck segment in particular is not ready to just flip to EVs 100%,” she said. “It addresses some of those performance and range anxiety concerns, and it’s strong.— But the difficult part is going to be getting consumers to really understand what it does.”
2025 Ram 1500 Ramcharger Tungsten
Ram
Similar propulsion technology — referred to as extended-range electric vehicles, or EREVs — is available in overseas markets, specifically China. It’s also similarly been offered in vehicles such as the discontinued Chevrolet Volt sedan from General Motors.
Stellantis engineers said the main difference between the technology of the Ramcharger and the Volt is that the truck is being exclusively propelled by electric motors, not the vehicle’s engine, once the battery dies. It’s also expected to be the first application of it in a production full-size pickup truck.
The Ramcharger features 663 horsepower and 615 foot-pounds of torque and can achieve 0 to 60 miles per hour in 4.4 seconds, Stellantis said. The truck will be capable of bidirectional charging, where the vehicle acts as a generator to power appliances or even an entire home, the company said.
Kuniskis, who also leads Stellantis’ Dodge brand, declined to comment on whether the technology of the Ramcharger will be used in other vehicles. Other Stellantis brands include Chrysler, Jeep and Fiat in the U.S.
The Ramcharger operates differently from current plug-in hybrid electric vehicles, or PHEVs, that offer a range of all-electric driving, followed by an engine powering the vehicle after the battery is depleted.
Dodge CEO Tim Kuniskis unveils the Charger Daytona SRT concept electric muscle car on Aug. 17, 2022 in Pontiac, Mich.
Michael Wayland / CNBC
“The Ramcharger is not a PHEV,” Kuniskis said. “It’s a battery-electric truck with its own onboard, high-speed charger.”
“There’s no connection between the engine and the wheels,” he said. “The gas generator is only there to charge the battery.”
Ram’s truck strategy is different from its leading competitors GM and Ford Motor. The latter is offering traditional, hybrid and all-electric versions of its F-150 full-size truck, while GM has said it plans to transition from traditional trucks to electric ones without the use of hybrids.
Stellantis currently offers PHEV versions of vehicles such as the Chrysler Pacifica minivan and Jeep Wrangler and Grand Cherokee SUVs.
The design of the Ramcharger is a mix between the all-electric Ram 1500 REV and the refreshed gas versions of the traditional trucks, which will be available early next year.
The Ramcharger includes illuminated lines across its grille from the headlamps, new badging that debuted on the all-electric truck and other design and facia elements between the two.
For the traditional Ram 1500 models, the biggest change is the company is dropping its well-known Hemi V-8. Replacing the current 5.7-liter Hemi engine offered in the truck will be a twin-turbocharged, inline-six-cylinder engine called the Hurricane.
Ram’s 2023 Super Bowl ad debuts the production version of the Ram 1500 REV electric pickup that is expected to go on sale in late 2024.
Screenshot
“Some customers are going to be upset that you’re not going to have a Hemi in there,” Kuniskis said. “Sure, the Hemi’s an absolute legend. Americans love the Hemi, but this thing flat out outperforms the Hemi.”
The 3.0-liter Hurricane engine is rated at 420 horsepower and 469 foot-pounds of torque, while a high-output version of the engine is rated at 540 horsepower and 521 foot-pounds of torque. That compares with the current V-8 Hemi at 395 horsepower and 410 foot-pounds of torque.
Inline-, or straight-, six-cylinder engines have been used in U.S. vehicles by automakers such as BMW and Jaguar, however, they’re far from mainstream in the U.S.
Other changes to the trucks include a new luxury model called Tungsten and a performance variant called RHO replacing Ram’s high-output TRX pickup that is equipped with a Hemi 6.2-liter V-8 capable of 702 horsepower and 650 foot-pounds of torque.
LONDON (AP) — When Laima Springe-Janssen was looking to replace her French-made gasoline-powered SUV with an electric car, she considered models from Volvo and Nissan.
The Volvo extras she wanted would have busted her budget, while the Nissan lacked the “wow factor.” The Copenhagen, Denmark, resident ended up buying a compact SUV from China’s BYD.
“I really, really love the car,” Springe-Janssen said. For the equivalent of about $50,000, the Atto 3 SUV came with “all these goodies” like a 360-degree dash cam, two years of free charging and an extra set of winter tires.
Her husband likes it so much he’s considering buying another BYD to replace their other car, from Volkswagen’s Skoda brand.
“I’m sorry, Europe. Go home,” she said. “China has a better offer.”
Her enthusiasm underscores how Chinese automakers are winning over drivers as they make major inroads into Europe’s electric vehicle market, challenging long-established homegrown brands in an industry that’s key to the continent’s green energy transition.
The competitive threat has spurred the European Union to launch an investigation into Beijing’s support for its EV industry. That adds to tech-related tensions between the West and China, which is one of Europe’s biggest trading partners and the world’s biggest auto market.
China’s EV onslaught, along with massive U.S. clean energy funding that has drawn investment away from Europe, shows how the 27-nation bloc is caught in the middle of the global race for green technology.
Chinese EV makers are drawn to Europe because auto import tariffs are just 10% versus 27.5% in the U.S., independent auto analyst Matthias Schmidt said. Europe also has the world’s second-biggest EV battery market after China.
Nevermind the geopolitics. Climate-conscious car buyers in Europe who are grappling with an increased cost of living rave about how Chinese EVs are affordable yet packed with features and stylish design. Concerns about the threat to local carmakers and jobs just aren’t a factor for them.
British retiree John Kirkwood replaced his Volkswagen Passat three years ago with an MG5 station wagon because the 30,000-pound ($36,000) price tag “wiped the floor” with its nearest rival — a Kia that cost thousands more.
“It’s nice. It’s quiet, it’s refined” and very quick, Kirkwood said, adding that he had few qualms about British brand MG’s Chinese ownership.
MG — owned by SAIC Motor, China’s biggest automaker — is the largest Chinese EV player in Europe. BYD, backed by billionaire investor Warren Buffett, is growing fast. There’s also Geely, which owns Sweden’s Volvo and a stable of EV brands including Polestar, Lynk & Co. and British sportscar maker Lotus.
Behind them are a slew of startups, like NIO and Xpeng.
Their combined sales are a sliver of the 9.2 million vehicles sold in Europe every year, but they have been gobbling up a piece of the smaller EV market at an astonishing pace.
Chinese automakers account for only about 3% of Western Europe’s overall car market but 8.4% of the EV market, up from 6.2% last year and almost nothing in 2019, according to Schmidt’s data.
The surge is stoking fears about Europe’s automotive industry, an economic powerhouse centered in France and Germany that employs millions of workers, staying competitive as it transitions from fossil fuels to electricity.
European Commission President Ursula von der Leyen says “global markets are now flooded with cheaper Chinese electric cars,” with prices “kept artificially low by huge state subsidies.”
The commission, the EU’s executive arm, formally opened its investigation this month, saying it would take up to 13 months and could result in import duties.
Beijing voiced “strong dissatisfaction” and vowed to “firmly safeguard“ Chinese companies’ rights. The Chinese Commerce Ministry said the EU probe is based on “subjective assumptions,” lacks enough evidence and goes against World Trade Organization rules.
Complicating matters, global automakers build vehicles in China and have exported 164,300 this year to Europe, including BMW’s iX3 SUV made in northeastern Shenyang and Tesla’s Model 3 and Y produced in Shanghai, according to Schmidt’s data. That means one in every five EVs sold in Europe is a Chinese import.
A commission spokesman said the investigation is looking at China’s EV exports “regardless of the brand.”
Stellantis, which owns French auto brands Peugeot and Citroen as well as Italy’s Alfa Romeo and Fiat, is vowing to fight back against China’s EVs. In a recent earnings call, CEO Carlos Tavares said the world’s No. 3 automaker is responding to a “Chinese invasion in a European market” with a new Citroen e-C3 cheap compact.
Stellantis faces added pressure from a union strike in the U.S. over EV battery plant jobs.
Executives at Shanghai-based Aiways, a startup headed by Volvo’s former China sales chief, rejected accusations that Beijing provides a helping hand.
“We’re not selling inside China, we’re not being subsidized in China,” said Alexander Klose, vice president of overseas operations. “Yes, we obviously have some subsidies for putting a plant somewhere, which is, I think, what everybody has in Europe.”
Aiways is focusing on Europe and Israel instead of China, where the auto market is so crowded that “we don’t think it makes sense to compete right now,” Klose said.
The EU should be working on getting to a green future “rather than keeping competition out,” he said.
One reason Chinese companies can offer high-quality cars at affordable prices stems from the rules to enter the Chinese market. Global automakers had to team up with local companies, providing them crucial automaking knowhow.
“They were kind of like the sous chefs to the Western companies,” said Schmidt, the auto analyst. “The situation now is those sous chefs are opening up their own restaurants and, in some cases, better than their masters’ restaurants.”
Also helping level the playing field is battery-powered motors being less complex to build than internal combustion engines and requiring fewer workers. That’s a problem for European brands with big workforces that will need years to revamp operations, Schmidt said.
Chinese EV makers, meanwhile, are trying to stand out in a crowded field.
SUV maker Great Wall Motors’ EV sub-brand Ora is targeting women, with cars it says are designed for their body sizes and daily needs.
The Ora Funky Cat, with throwback round headlights, an exclamation mark on its hood badge, and a 32,000-pound ($38,600) price tag, appealed to British scriptwriter Justin Nicholls, who bought one for his wife.
“The looks are awesome, and the tech great. It’s so easy to drive, yet feels like a lot larger car and feels premium,” he said.
It also appealed to Nicholls because it’s different from the Volkswagens, Peugeots and BMWs common on British roads: “I think it is a lot more quirky than European cars.”
The stock market as a whole had a fine Tuesday, but electric vehicle (EV) stocks — and those of companies related to their business — really had a fine trading session. Many were well in positive territory.
SUV maker Fisker (FSR 5.50%), for example, closed nearly 6% higher. Charging station specialist ChargePoint Holdings (CHPT 9.78%) added just under 10% to its share price, while battery recycling company Li-Cycle (LICY 11.64%) rose by just under 12%. Canoo (GOEV 1.67%), a utility vehicle maker, advanced nearly 2%.
Several factors were pushing up the prices of EVs and affiliated companies.
A major one is the United Auto Workers (UAW) strike, which continues to intensify. Each day seems to bring news of layoffs at, and a work stoppage targeting, at least one of the three incumbent carmakers targeted by UAW — General Motors, Ford, and Stellantis.
While the strike is deleterious to the auto industry as a whole, EV and related companies aren’t directly affected. That’s why the Fiskers, Canoos, and ChargePoints of the world are generally looked on more favorably than any of the Big Three these days.
Another factor bringing investors back to EV and adjacent stocks is bond yields. The benchmark 10-year Treasury note yield came down notably after market hours Monday. It’s now retreated from multiyear highs.
This development with Treasuries can be seen positively for the EV segment in two important ways.
First, the production of vehicles and related products (like batteries) is an expensive activity undertaken by companies that are frequently still at an early stage of their business lives. Many have had to take on debt to fund their operations, so cheaper borrowing can benefit them financially.
Second, since Treasuries (and other federal government debt instruments) are considered to be among the safest investible assets, if their yields decline, they become less attractive to investors. And a flight from safety often benefits riskier assets; the market is more willing to take a chance on relatively uncertain plays.
While the rare EV maker or affiliated stock is no longer considered to be high risk — hello, Tesla! — for the most part, such titles are lumped into that somewhat intimidating category.
As I’ve warned previously, no investor should casually fling money at any EV or related company due to short-term factors. The strike won’t last forever, while it’s entirely conceivable that the Federal Reserve will hike interest rates again (a move certain to broadly increase yields).
Rather, it’s smart to be very choosy when investing in the segment, as its companies are very much not created equal. Some (Canoo, for instance) have compelling and offbeat product lines, while others (ChargePoint) have become dominant in their niches.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends General Motors and Stellantis and recommends the following options: long January 2025 $25 calls on General Motors. The Motley Fool has a disclosure policy.
The new Nio smartphone, though outwardly resembling a conventional mobile device, harbors unique features that make it a game-changer for Nio’s customers.
In a surprising and bold move, Nio Inc (NYSE: NIO), the distinguished Chinese electric car brand, has ventured into the world of smartphones. Nio’s CEO, William Li, recently disclosed in an exclusive interview with CNBC that the company anticipates at least half of its users to purchase this innovative Android smartphone.
“I believe this portion of users are very likely to use this new form [of device] when they are changing their phones,” Li stated, pointing to the smartphone’s overall performance and its strong integration with Nio’s electric vehicles as the driving factors behind this assumption.
Another key aspect driving the expectation of high adoption rates among Nio users is the existing user base’s composition. Among Nio users who contribute significantly to the company’s profits, there is an even split between iPhone users and those utilizing flagship Android phones, including those from Huawei and other leading brands.
The popularity of the Nio smartphone app, with a daily user count of approximately 600,000 active users, further demonstrates the demand for Nio’s ecosystem and services. Surprisingly, this number exceeds the count of Nio car users, highlighting the broader appeal of Nio’s offerings.
The Nio smartphone, priced competitively at approximately $900 to $1,000, is designed to cater to the needs and preferences of Nio’s dedicated user base. Li emphasized that this device offers remarkable value, coming in at around $150 less expensive than a comparable Huawei smartphone.
The new Nio smartphone, though outwardly resembling a conventional mobile device, harbors unique features that make it a game-changer for Nio’s customers.
One standout feature of the Nio smartphone is a dedicated button that functions as a key for Nio’s electric cars. This innovation is not only practical but also represents a step forward in terms of user convenience and integration.
Beyond the innovative car key feature, the Nio smartphone provides improved connectivity between the phone and the vehicle. CEO Li stressed that this connectivity allows for seamless transitions between phone and car, even during online meetings. The highly anticipated Nio smartphone is set to hit the market soon. Orders are scheduled to begin immediately, and delivery is slated to commence on September 28th.
CEO Li emphasized that the Nio smartphone is not limited to Nio car owners. It is available to all consumers in China, however, the smartphone is not slated for release in Europe, at least not in the near future. Nio is present in five European countries, including Germany, and the company needs time to work on creating local automotive services, according to Li.
Currently, the Electric Vehicle (EV) industry is undergoing a remarkable transformation, where companies are expanding their horizons beyond just manufacturing cars.
This shift towards diversification is exemplified by the recent announcements from notable EV manufacturers like Polestar Automotive Holding (NASDAQ: PSNYW), as well as tech giants like Apple Inc (NASDAQ: AAPL), Xiaomi Corp (HKG: 1810), and Huawei, who are all venturing into new territories to cater to the evolving needs of their customers.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.