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Newsletter | Hertz orders 100,000 Teslas – Europe's EV sitrep – recycled cathodes better than new

Newsletter | Hertz orders 100,000 Teslas –  Europe's EV sitrep –  recycled cathodes better than new
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Ooh it's good to be back with a newsletter full of juicy electrons. Dig in!

- Jaan


Our new home πŸͺ

We launched the EV Universe's home base last week. Super happy about that.

Two things:

1. Pricing. I'm adding monthly option!

I got more than a few questions from you guys if I could add the monthly subscription, so I decided - let's do it. The monthly option is now there.

Here are the current early-birdie prices:
$5/month (50% early discount*) or
$50/year (50% early discount) or
$250 once lifetime deal with extra perks (1 of 5 left, then increases to $300).

*Regular price will be $10/month or $100/annual.

Discounted prices increase by $1/mo or $10/year per every 10 members joined, until regular price is achieved. The lifetime deal increases by $50 per every 5 lifetime members.

You can check out the current prices or jump in on our "paywall page" here.

A BIG thank you to Joel, Michael, Hilliard and Piyush, the first founding members that decided to join with the lifeteam deal. Your support means a lot in building this.

2. What's in it again?

I'll give you a condensed version here, in case you missed it:

  • The EV Industry extra-newsletter
  • One monthly Deep Dive essay
  • Full access to the community, app and resources, exclusive content.
  • Improved Map of the EV Industry, updated weekly (free gets drops 2x a year)
  • Dealbase, a database of investments in the EV industry
  • Events, like AMAs with experts, showcases, monthly gathering
  • Event calendar, I'm putting up every EV-related event out there
  • No ads (this free newsletter will get some relevant ads)

Here's a screenshot of what the home base looks like from today.

HomeBase screenshot

And if you've seen how this newsletter has progressed over the last year, you know I won't stop there. This place will be huge. :)

If you decided this might be for you, you'll find the entrance here. If not, I'm still super happy to have you here and will continue to provide value.


Tesla hits $1T

$TSLA on 28th Oct

Tesla's stock $TSLA shot up ~+31% within the last two weeks, hovering at around $1,077 which means the company is worth more than a trillion dollars now. An incredible feat for sure, whether you think the valuation is justified or not. Not here to discuss that.

A little fun fact before I go down the rabbit hole again - Elon Musk's personal net worth is now more than the market cap of Exxon Mobil Corp. I like the brave new world.

Hertzzzzz

One of the reasons for the latest spike seems to be public's reaction of Hertz ordering 100,000 Tesla Model 3's for its fleet, to be delivered by the end of next year. (link)

This is a huge sign of the times.

If you're familiar with the rental business, you know that a big portion of the business isn't connected to renting cars at all, but rather selling them. Simply put, rental companies order big fleets of the same brand/model cars and thus get considerable discounts, which in turn helps the profit margin through the lifetime (rent) and when the cars are sold. The depreciation is significantly lower.

The story is different here. Elon Musk confirmed, that Hertz did not receive any discount on the fleet order. Imagine that.

Hertz itself was forced to file for bankruptcy in the wake of the Corona crisis, This major order is the first of its kind for Hertz after it declared bankruptcy in the wake of the Corona crisis. The interim CEO that started in October is Mark Fields, the former CEO of Ford in 2014-17.

Hertz added that half of the 100k Teslas will go to Uber drivers in the US and this "could grow to 150k Teslas provided by Hertz to Uber over the next 3 years" (link)

A 100k EV fleet in the hands of renters and uber drivers will definitely expand the EV universe.

Here's the GOAT Tom Brady plugging in between a bunch of M3's:

How are the Tesla killers doing?

Here's a great graph from Piper Sandler research showing how many of these EV models have the carmakers sold cumulatively, considering the months since launch. Tesla MY and M3 aren't still being "killed". (link)

Ramping up on several fronts: Tesla's Drew Baglino said they want to triple the size of the Supercharger network over the next two years. That's 29,281 charging points installed in Q3 this year, times three.

Milestone

Tesla has now cumulatively sold more than 2 million EVs globally. More EVs than any automaker by far.

The ramp-up is clear and most OEMs are playing catch-up.

Here's a little bit of fun I had, looking up and adding what the media was saying during Tesla's EV ramp up, together with Q3 delivery numbers since 2013 that was put together by James Stephenson:

Q3 Tesla 2013-2021

Sitrep: Europe

JATO graph of monthly car regs by fuel type

I'll start doing these situation reports from time to time, to let you know what the EV adoption on the grand scale looks like at the moment.

If you're one of our newest members, then know that whenever I say "EV", I mean 100% battery-electric vehicles only. No hybrids, no hydrogen-powered or other such.

Looking at the Q3 2021 in Europe per ACEA, the EVs nearly doubled their share to 9.8% of all sales, compared to 4.9% in Q3 last year. That's huge, but also connected to overall decrease in car sales due to chip shortage - several automakers preferred to sell the EVs over ICEs.

Something else happened in Europe recently. Per JATO, more cars with a plug were sold in August than those running on diesel, for the first time ever.

And as our friend JosΓ© Pontes reported in CleanTechnica (link), the share of EVs in car sales in September was 15%, up 54% year over year.
Tesla was a sure leader of the electrified car sales with nearly 25k M3 and 9.5k MY cars delivered, VW ID.3 placed third with 8.4k sales.

Pontes - CT graph

I personally think the Ε koda Enyaq could have risen from the 5th place if it didn't have such supply problems - we've been waiting our ~13 cars to the fleet for a long time already.


⚑ The Znippets

Sono Sion

Sono Motors filed for an IPO on Nasdaq, ticker $SEV. No more info yet. (link).

Related: The €25,500 Sion reached 15k preorders today, with an avg down payment of $3,300 and the series production set for 2023. (link)

I've kept an eye on Sono and its Sion for years and this one isn't one of those "I just made an EV rendering" companies. We've seen proper supply chain deals, iterations and business expansions like solar integration tech licensing. Doesn't mean they can't fail, of course. I'm planning to see one of their 3rd gen prototypes as soon as possible.

  • Volkswagen will/might start importing the ID.6 models from its Chinese factory to Europe (link in Ger). As Andre put it well in our community: "German carmaker selling cars built in China to Germans".
  • Canada's Trade Minister Mary Ng sent a letter to the US government warning about the potential negative impacts of the proposed US EV tax credits. Her main concern was on the protectionist elements of the credits that discriminate against EVs and parts that are made outside of the US, like battery-materials from Canada. (link)
  • EVENT: MIT Energy Night 2021 takes place in ~10 hours, at 10 am - 9 PM EDT, 29th of October. Free. A lot of great speakers. Register here.
MIT Energy Night poster
  • I'm building out an EV-industry-only event calendar in our home base, where you'll be able to see all these events ahead of time.
  • Italy chips in another €100M for 0-and-low emission incentives of up to €6k per EV (link), and France extends its subsidies of €7k per EV until 1st of July '22 (link).
  • Ssangyong, the South Korean automaker likely found a buyer for its business, e-bus maker Edison Motors, and the new owners want to turn into an EV focused carmaker within 3-to-5 years. The purchase price is reported to be around $1.3B. (link)
  • Hyundai Mobis, a Hyundai subsidiary, unveiled an e-corner module, integrating the steering, braking, suspension and drive systems in one wheel. The company intends to accept orders from other automakers when ready. (link)

    Sounds very much like REEcorner we covered back in March already, which seems to have the proprietary tech developed. I love the modularity approach and it seems it's starting to look like a real solution.

    Sadly the videos of unveiling focus more on moving the wheel motor around than showing the tech and approach behind it:
Mobis
  • A LeasePlan report revealed that compact and mid-size EVs are now fully cost competitive with fossil cars in most of the 22 European countries analyzed. (pdf)
  • BlackRock is expected to invest €500M ($584M) into Ionity, the charging provider. Another €250M ($292M) will come from the all-equal OEM shareholders: Audi, Porsche, Daimler, BMW, Hyundai-Kia and Ford. (link)

    There have been rumors of Shell and Renault wanting to join the Ionity joint venture, but its still unclear.
  • Panasonic presented a prototype 4680 cell made for Tesla (link). And signed a battery supply contract with Canoo for its Lifestyle Vehicle. (link)
  • Is EV adoption so successful in China that the charging infra can't keep up? The Golden Week holiday starting on Oct 1 put the highway charging stations under four times the regular charging volume with 1.43M kWh per day. The lines for charging were up to four hours. (link)
  • A study in the journal Joule unveils that recycled cathode materials could be as good as new materials or even increase the performance of li-ion batteries. (link)
    The team tested batteries with recycled NMC cathodes, the process of this recycling is patented by Yan Wang, which they now plan to commercialize through his company Battery Resourcers.

    Related: we reported back in September Battery Resourcers raising $70M, led by Hitachi Ventures.

    This got a lot of attention from OEMs and really across the industry. Definitely a boost for recycling the batteries.
NMC recycled cathodes
  • Onto, the UK's all-inclusive electric car subscription company that I think is brilliant, signed a brand partnership with VW and now has e-up!, ID.3 and ID.4s on the service. 19 EV models are to choose from total. (link)
  • Polestar 2 is added to the Electrify America free-charging list, with two years of 30min ultra-fast charging for free. (link)

    Other EVs with similar deals with Electrify America previously are Volvo XC40 Recharge, Mercedes EQS, Audi e-tron, Hyundai Ioniq 5 and Kona, VW ID.4, Fisker Ocean, Mustang Mach-E, Porche Taycan, Lucid Motors.

    Lovely business model and I'm surprised others haven't done the same yet. I wonder what the $ behind the outside-of-VW-group deals are. Anyone know?
  • Volkswagen said its 18k executives can't order its EVs as company cars before the end of 2023 and have to go for an ICE car. Real scarcity of the electric models comes from high demand, lack of semiconductors, and in my opinion, a serious underestimation of world's transition to EVs. (link in Ger)
  • Atlis, the US electric pickup truck maker, closed its crowdfunding round with $5M from 4,108 investors at a $385M valuation (link). Claimed non-binding reservation value for the trucks is near $3B.
Atlis truck
  • Daymark says its Spiritus vehicle will have a special cryptocurrency suite to mine crypto while not in use. Depending on crypto prices, they estimate it can be $5-$12 a day. (link) Reminds me of those fellas mining Bitcoin with their Teslas at SuperChargers. H/t to Andre for this one.

πŸ—―οΈ Watch This:

Great Scott!

Electrify America and IONITY charging networks have now exceeded the combined power of 1.21 gigawatts and decided to celebrate accordingly. Featuring Mayor Goldie Wilson and of course the DeLorean.

A surprisingly knowledgeable video about the Tesla Plaid pack (via Trucks.vc):

Here's some new teaser footages of Tesla Cybertruck that are shown in the Tesla showrooms


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