What We’re Reading

• Tesla urges EPA to finalize tougher US heavy-duty emissions cuts (Reuters, June 21, 2023)

  In April, the U.S. Environmental Protection Agency proposed new Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles, which would impose stricter emissions limits on commercial vehicles such as delivery and garbage trucks, buses, and tractor-trailer cabs starting in model year 2027. The proposed rule anticipates significant electrification in the sector, estimating that “50% of new vocational vehicles like buses and garbage trucks could be EVs by 2032, along with 35% of new short-haul freight tractors and 25% of new long-haul freight tractors.”

  In a comment submitted earlier this month, however, Tesla urged the administration to go even farther with the limits based on its belief that electrification is occurring faster than the EPA has estimated. “Tesla cited its Tesla Semi production in making the case for tougher emissions rules, noting it anticipates production levels of a Class 8 Day Cab tractor at 50,000 per year with significant production volumes beginning in late 2024.” [You can see the Semi in action here and here.]

  On the other side of the debate, industry group the American Trucking Associations (ATA) opposes the proposed standards as too aggressive, claiming electric trucking technology is too new and untested.

• 3 Things About Mobileye That Smart Investors Know (The Motley Fool, June 24, 2023)

  Mobileye Global continues to be a favorite among investors due to its market leading ADAS features, which are currently installed in roughly 70% of all new vehicles. Mobileye powers its platform with its own EyeQ chips that it designed from the ground up to eventually power fully autonomous driving stacks.  

  Earlier this year, Mobileye rolled out its latest ADAS stack, SuperVision, which is being touted as a superior alternative to Tesla’s Autopilot. The updated platform is intended to allow hands-free driving with driver oversight and will “function largely like an autonomous vehicle.” SuperVision is the planned predecessor to Mobileye’s Chauffeur system, which will allow fully autonomous driving with both hands-off and eyes-off features, as discussed in the article below regarding Bentley’s upcoming EV. 

  Industry experts, however, caution that Mobileye is still heavily dependent on a limited supply chain to manufacture its EyeQ chips, which may continue to cause inventory shortages until the end of the year. Additionally, Intel, who retained a 94% stake in Mobileye after its IPO last year, recently liquidated $1.5 billion of those shares to free up cash for expansion of its own foundries. This selloff caused Mobileye’s stock to decline, although it is still trading at almost 62 times forward earning due to its growth potential in the driverless market. 

  So what does this all mean for the future of Mobileye? On the one hand, Mobileye’s dominance in the ADAS space and its frontier SuperVision and Chauffeur autonomous tech bode well for significant first-to-market returns in the driverless vehicle space. On the other hand, Mobileye still faces significant headwinds with supply chain constraints and possible overvaluation.  Time will tell if the bears or bulls prevail on these points.

• Bentley’s First EV To Come With Hands-Off Self-Driving Tech (InsideEVs, June 25, 2023)

  Luxury automaker Bentley recently announced that its highly anticipated first fully electrified model will initially offer partial hands-off self-driving technology followed shortly by fully autonomous driving through over-the-air software updates. Bentley CEO Adrian Hallmark further confirmed that Bentley’s new autonomous stack will utilize Mobileye’s SuperVision system, which features 11 camera sensors.

  The new two-door sports coupe EV will reportedly boast an eye-popping 1,400 horsepower (1,044 kilowatts) and will be capable of accelerating from 0 to 60 mph in as little as 1.5 seconds. Bentley plans to launch a new EV every year until the end of the decade.

  Competitor Rolls-Royce also will throw its hat into the electrification ring when it launches its first EV, the Spectre, this fall. This luxury coupe will purportedly feature a dual-motor layout powered by a 120-kilowatt-hour battery pack with a claimed range of 310 miles. Coming in with a top speed of 155 mph and reaching 0-60 in 4.4 seconds, this EV will also pack quite an electric punch.