What We’re Reading
Ford to scale back plans for $3.5 billion Michigan battery plant as EV demand disappoints, labor costs rise (CNBC, November 21, 2023)
Due to projected declines in EV transition rates, supply chain constraints and increased labor costs, Ford Motor announced yesterday that it will significantly scale back production goals and expected employment at its $3.5 billion battery plant in Michigan. Ford also has postponed construction of an additional EV battery plant in Kentucky. These cutbacks follow Ford’s decision last month to reduce or delay planned EV investments by approximately $12 billion due to deteriorating economic conditions.
“We’re still very bullish on EVs and our EV strategy, but clearly, while there is growth, both in the U.S. and worldwide, clearly, the growth isn’t at the rate that we and others had expected,” Ford Chief Communications Officer Mark Truby said. “We’re trying to be smart about this and how we move forward.”
How the Tesla Cybertruck’s Price and Range Will Determine Its Fate (BNN Bloomberg, November 20, 2023)
Tesla’s Cybertruck Delivery Event on November 30 is quickly approaching. A Cybertruck can be seen on display at the Tesla showroom in San Diego, California, and many people have seen Cybertrucks in transport on US highways on their way to Texas.
In its 2019 reveal, the Cybertruck was advertised as having more than 300 miles of range per charge at a price point under $50,000 to compete with the Ford F-150. However, due to the unexpected cost of producing the vehicle, as well as inflation, the Cybertruck could end up at approximately $60,000, though the price has not yet been announced. And while a 300-mile battery range is still impressive, it pales in comparison to a Chevrolet Silverado EV truck, which has a 400+ mile battery range, and the recently announced Ram 1500 REV, which is expected to have 500 miles of range.
Jessica Caldwell, head of insights for Edmunds, stated “This is going to be the toughest vehicle for Tesla to launch. It’s going to sell really well initially because it does really resonate with some buyers, but not the mass market. That’s where the problem is.”
Over a million people have paid $100 to reserve their place in line to purchase a Cybertruck, a number that Musk has stated is enough to support several years of Cybertruck sales.
US lawmakers raise concerns over Chinese self-driving testing data collection (Reuters, November 16, 2023)
Increased testing of autonomous vehicles on U.S. roadways by Chinese technology companies has caught the attention of a bipartisan group of U.S. lawmakers, who requested 10 Chinese-related companies to answer questions by Nov. 29 regarding their ongoing collection and handling of sensitive personal data. The lawmakers concern stems from their belief that Chinese AV companies are routinely collecting “sensitive information about our citizens and their daily routines, the nation's infrastructure, and connected technologies.”
“There needs to be greater transparency around what information you collect while testing on American roads, and whether you are financially tied to the Chinese Communist Party,” according to the previously unreported letters.