World News
Tesla’s range-flation problem, Waymo reverses on self-driving trucks and Ford tweaks its EV playbook on July 30, 2023 at 11:29 pm
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Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B.
Hey frens! I’m back from vacation and who-wee — a lot happened this week from automaker earnings and the Tesla range inflation drama to Waymo tapping the brakes on self-driving and Cruise expanding to yet another city.
One other note, you can find me on TechCrunch’s Equity podcast, a place where I will show up on a semi-regular basis, including this episode that came out Friday!
Onward!
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Micromobbin’
Is there anything else to talk about besides Lyft mulling the sale of its ebike division?
Lyft posted on its blog that it had received “strong inbound interest” in its bikes and scooters business.
The company stated:
As a leading bikeshare provider, supplying solutions to over 53 markets across 15 countries, it’s only logical for Lyft to listen to credible proposals and explore strategic partners and options in several forms to serve more riders in more cities. We expect this part of the business to continue to be a meaningful part of Lyft’s offering now and into the future.
The announcement runs contrary to what newly appointed CEO David Risher has told reporter Rebecca Bellan in past interviews. Risher, who is known as a big supporter of ebikes, did say the company planned to focus on its core ride-hailing business and become profitable, but it didn’t seem like the two-wheeled share service was on the chopping block.
The news prompted some here at TechCrunch to declare that shared micromobility was officially dead. I’m not so sure.
What do you think?
Deal of the week
Instead of a deal of the week, I’d like to call y’all’s attention to the list of deals below. See a pattern emerging?
Yup, me too. Software and EV charging sure seems like a thing, eh?
Other deals that got my attention this week …
Ampcontrol, an EV fleet management software startup, raised $10 million in Series A funding round led by the Westly Group. Other investors included AngelPad and Lorimer Ventures.
Aurora raised $820 million in a public and concurrent private offering (a deal we covered last week.) As I mentioned in the Equity podcast, tucked inside the SEC filing detailing the deal we learn that Uber invested $1 million in the private placement and $74 million in the public follow-on. When taking into account the Class B shares, Uber has a 22% stake in Aurora.
EV.energy, the UK-based EV charging software startup, raised $33 million in a Series B round led by National Grid Partners with participation from new investors Aviva Ventures, WEX Venture Capital and InMotion Ventures, as well as existing investors Energy Impact Partners, Future Energy Ventures and ArcTern Ventures.
Flipturn, a startup that developed a software management system for EV truck fleets, raised $4.5 million in a seed round led by Accel.
Field, the battery energy storage systems developer launched by former Bulb Energy co-founder Amit Gudka, raised £200 million from DIF Capital Partners.
Voltpost, a New York City–based startup that developed hardware that converts lampposts into EV charging spots, raised $3.6 million in a seed round led by RWE Energy Transition Investments with participation from Twynam Funds Management, Exelon Foundation, Good News Ventures and Climate Capital.
VW Group made a pair of deals with Chinese automakers aimed at shoring up sales in China, including taking a 5% stake valued at about $700 million XPeng as part of a deal to jointly develop and produce two mid-sized EVs for China. In a separate agreement, Audi expanded a partnership with SAIC. Reporter Rita Liao provides insight on what this deal could mean for future alliances between China and the West.
Notable reads and other tidbits
Autonomous vehicles
Cruise self-driving vehicles arrived in Nashville this week for testing; a robotaxi service is expected to follow. Cruise will also begin testing in multiple, new cities as part of its aggressive commercial ramp, according to the company. If the company’s careers page provides any hints, it seems Atlanta is one of them.
Want evidence that Cruise is accelerating? One year ago, Cruise only operated in San Francisco. Cruise has since expanded to Austin, Dallas, Houston, Phoenix and most recently Miami.
Rafaela Vasquez, the safety driver who was behind the wheel of an Uber ATG self-driving vehicle when it struck and killed a pedestrian in Tempe in 2018, pleaded guilty to endangerment. Vasquez was sentenced to three years of supervised probation.
Waymo is tapping the brakes on self-driving trucks and shifting most of its capital, resources and talent to one commercial bet: ride-hailing. I won’t call it a complete shutdown as limited testing will continue. But the program as it once stood is over. It seems most people on the team have kept their jobs at Waymo, per sources. (However, it’s still early; we’ll see how it all shakes out once the program is wound down.)
Earnings
Ford and GM both posted earnings this week and there were some general themes; namely that business is good if you’re selling gas and hybrid trucks and SUVs. The EV business? Well that’s a bit of a money loser. Both companies raised profit guidance for the year and GM said it would cut costs another $1 billion as it focuses on earning more money.
Ford, which now breaks out earnings for three business units, is tweaking its EV plans. The big line item is that Ford expects its EV business to lose $4.5 billion in 2023 — double what it previously forecast. And the company seems to be more bullish than ever on hybrids, which reminds me of Bill Ford’s comments way back in 2016 about viewing hybrids as a transitional, or bridge technology. At the time, the sentiment was about consumer adoption. These days Ford is learning that hybrid technology applied to trucks is particularly attractive to buyers.
Electric vehicles, batteries & charging
Ample, a San Francisco-based startup, is bringing its modular EV battery swapping technology to Mitsubishi Fuso’s electric trucks this winter.
GM isn’t going to kill off the Chevy Bolt EV after all. This is going to be a next-gen Bolt EV based on the new Ultium platform and battery design. I’m fascinated by this reversal because it happened so quickly (3 months!). Will it still be assembled at the Orion plant? Reminder: Orion was supposed to be retooled for electric truck production once the Bolt went out of production at the end of 2023.
Tesla exaggerated the range estimates for its EVs for years, prompting owners to flood its service center over concerns that their vehicles needed service, according to a new detailed Reuters report. As I note in my own story, one of the nagging problems with range estimates is their variability, which allows some automakers to push the boundaries of the system. While the EPA does review and approve those estimates, it allows automakers to use one of two methods to reach those figures: use a standard formula that converts fuel economy results, or conduct additional tests to come up with their own range estimate. Tesla has always done the latter, which gives far better numbers.
Miscellaneous
Lacuna Technologies, a startup that sold software services to cities to help create and enforce transportation policies, has shut down, per a LinkedIn post from product lead Samuel Jackson. (h/t to the source who pointed me to the post).
Disrupt!
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The Station is a weekly newsletter dedicated to all things transportation. Sign up here — just click The Station — to receive the newsletter every weekend in your inbox. Subscribe for free. Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point
Business
The Cities Bracing for Trump’s Immigration Crackdown
In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.
Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.
Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.
Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.
In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.
Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.
These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.
As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.
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Business
How Trump’s Deportation Plans Could Reshape Major Cities
In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.
The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.
Economic Tremors
Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.
Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.
Community Fabric Under Strain
Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.
Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.
Cities at a Crossroads
As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.
Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.
Looking Ahead
As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.
What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.
As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.
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Business
Donald Trump Wins 2024 USA Election
Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:
Electoral College Victory
Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.
Battleground State Performance
Trump’s victory was largely secured by winning several critical swing states:
- Wisconsin: Trump’s win here was pivotal in securing his path to victory.
- Pennsylvania: This state flipped back to Republican control.
- Georgia: Another key state that Trump managed to win back.
- Michigan: Trump successfully flipped this traditionally Democratic stronghold.
Popular Vote and Voter Priorities
While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:
- Economy and democracy were top concerns for voters.
- Abortion and immigration also played significant roles in voter decision-making.
Congressional Control
The election results extend beyond the presidency:
- Republicans are set to take back the Senate majority, securing at least 51 seats.
- Control of the House of Representatives remains undetermined.
Media Implications
The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:
- Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
- Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
- Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
- Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
- Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.
It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.
As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
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