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Automakers reported first-quarter auto sales, and it turns out that pricing definitely matters if you want to sell electric vehicles. Who would have thought? A recent survey by Edmunds came to a similar conclusion (at least for American buyers), finding a significant gap between what consumers want and what is actually available on the market.
Here is the crux of the matter. According to an Edmunds survey, 47% said they are looking to purchase an electric vehicle under $40,000, and 22% are interested in EVs under $30,000. Today, there are no new electric cars priced under $30,000, and only four under $40,000. The average price of an electric vehicle in 2023 was $61,702, while the price of all other vehicles was $47,450.
This mismatch actually puts pressure on automakers as they try to move inventory by lowering prices. This downward pressure has forced automakers like Ford to delay future electric vehicle launches and allocate more resources toward hybrids. Even electric vehicle leader Tesla fell well short of analysts' expectations with deliveries down 20% from the fourth quarter of 2023. Meanwhile, electric vehicle startup Rivian posted tepid results.
what is the answer? Well, at Tesla, the solution appears to be two-fold: lower prices again and try to capture revenue through sales of its $12,000 Full Self-Driving software that is currently being offered in a one-month free trial to all customers.
Alright guys, let's get to the rest of the news!
Little birds
Founders, investors, engineers, policy experts, and more tell us things. We are here to pass on the verifiable information that those little birds shared with us.
This week, a little bird informed us of the closure of Ghost Autonomy, which has raised over $220 million and recently partnered with OpenAI. Several calls, emails, and a new post on the company's website confirmed this information. About 100 people were affected.
As I mentioned in my article, Ghost has cycled several times since its founding in 2017. When I asked founder and CEO John Hayes what happened, he said the company had completed a product for highway driving and was moving in urban environments by what he said it was. It is described as “last mile delivery”.
“Ultimately, it was not possible to fund the years needed to bring the product to market,” he wrote to me in an email.
Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or Sean O'Kane sean.okane@techcrunch.com. If you prefer to remain anonymous, click here to contact us, which includes SecureDrop (instructions here) and several encrypted messaging apps.
Deal of the week
Listen up, startup founders, a new fund just closed. Prepare your slide decks.
Maniv, an Israeli venture capital firm now based in New York City, has raised a $140 million fund with plans to stick with its early-stage investment strategy to support startups at the intersection of mobility, transportation, and energy.
As I noted in my longer report, the company's approach has evolved slightly by expanding geographically and diversifying its investor base. The company has also largely stopped using the once-fashionable umbrella term “mobility” (often leaving it out of its original name, Maniv Mobility), and has instead chosen to talk about deep technology, decarbonization, and the digitization of the transportation sector.
Investors in the fund are no longer controlled by automakers and Tier 1 suppliers. Instead, Manif has opened up to a wide range of strategic and institutional financial investors, including personal finance bank BNP Paribas and the investment arms of Shell and Enterprise Mobility.
The Maniv III fund also includes returning investors Valeo and Jaguar Land Rover arm InMotion Ventures. Toyota Motor Corp.'s Woven Capital, car rental company Arval, transportation infrastructure giant Ferrovial, industrial manufacturing company ITT Inc., fleet payments company WEX, and an unnamed European insurance company also participated in the fund.
Other deals that caught my attention…
Alsym Energy, a Massachusetts-based startup developing non-flammable battery chemistry, has raised $78 million in a Series C round led by General Catalyst and Tata, the Indian conglomerate, with participation from Drads Capital, Thomvest and Thrive Capital.
BlaBlaCar, the French carpooling and bus ticketing company, has secured a €100 million ($108 million at today's exchange rate) revolving credit facility.
Notable Readings and Other Stories
Self-driving vehicles
Waymo and Uber have expanded on an ongoing partnership that will impact Uber Eats customers in the Phoenix metro area. Now when people order a burrito, pizza or some other food through Uber Eats, their meals may be delivered by a Waymo car. The partnership will begin with select merchants in Chandler, Tempe and Mesa, including restaurants like Princess Pita, Filiberto's and BoSa Donuts.
Electric cars, charging and batteries
Apple is laying off 614 employees in California after abandoning its electric car project. According to a WARN notice published by California's EDD, most of the affected employees were working in buildings related to the canceled car project, while others were working at a facility developing next-generation displays, Bloomberg reported.
Canoo finally announced its fourth-quarter and full-year earnings. Inside the regulatory filing is a nugget related to the use of CEO Tony Aquila's private jet — just one of many expenses that illustrate the gap between spending and revenue at electric vehicle startups. Tl;dr: Canoo spent double its annual revenue on the CEO's private jet in 2023.
Faraday Future narrowly avoided eviction from its Los Angeles headquarters. The company has reached an agreement with the building's owner, Rexford Industrial Corp., to remain in the facility as long as it meets certain conditions. If Faraday violates any of the terms, Rexford has the right to demand payment within 48 hours and can run the startup if it doesn't pay up. If Faraday Future makes its payments, it could remain in the building until September 2025 when its lease expires.
The National Highway Traffic Safety Administration has opened a third investigation into Fisker's Ocean SUV, this time focusing on door opening problems.
Tesla is reportedly abandoning its plan to build a low-cost electric car believed to cost around $25,000, according to Reuters, despite that car's status as a pivotal product for the company's overall growth. Apparently, Tesla will instead focus on a planned robotaxi that is built on the same small EV platform that was also supposed to power the low-cost car. This is where it gets a little silly. Just hours after Tesla CEO Elon Musk said Reuters was lying, X posted that Tesla's robotaxi will be unveiled on August 8.
Wheels this week
This week the wheels will be off for one week while I enjoy a little vacation time. But don't worry, it'll be back next week and I have a few vehicles, including a Mercedes-Benz EQE 350 4Matic sedan, a Lexus LC500 hybrid and a Mercedes eSprinter. In addition, some e-bikes will be added soon.
What vehicles – including the two-wheeled variety – are you interested in reading about? I will put them on my list
