The EV world is still in somewhat of a tumult here in the United States. While the rest of the world continues to electrify, it seems like some of our biggest EV manufacturers are reconsidering how to move forward with electrification. This week, General Motors killed its EV delivery vans, throwing the Canadian plant that made the trucks into turmoil. Still, GM still says it has some big plans for its EVs and plug-in vehicles, some of which we’re learning about today.
Welcome back to Critical Materials, your one-stop shop for some of the biggest daily stories in the EV world.
In other news, Tesla is reporting earnings today—and all eyes are on whether its new cheaper EVs can pull sales out of a rut. And Uber is incentivizing a switch to EVs for its drivers via cold, hard cash.
Let’s hop in.
30%: New Cheap Teslas May Not Work
Photo by: Tesla
A little over a week ago, Tesla announced the Standard trim versions of the Model 3 and Model Y, priced about $5,000 cheaper than the trim now known as “Premium”. Of course, Tesla’s cost cuts may have gone too far for some folks—consider the removal of FM radio or a frunk liner—but the two cars are tangibly cheaper than what we’ve known.
However, not everyone is convinced that the new models are enough to pull the brand out of it’s sales stagnation or raise its profit margins. Basically, the Standard trim’s odd omission of options may be just a step too far, pushing buyers to consider the Premium trim anyway.
This isn’t good news for Tesla, especially since it’s coming up on its earnings call this week. The EV tax credit and other regulations may have buoyed sales and profits for years, but both of those are drying up. Things could be a little dicey going forward for Tesla, according to Reuters:
“The removal of components is enough to make a buyer think about moving up to the other model,” said [AutoForecast Solutions Vice President of Global Vehicle Forecasting] Sam Fiorani.
Tesla’s gross margin from automotive sales has dropped in the past few years as it slashed prices and offered incentives to stave off rising competition and waning demand due to high interest rates, an aging lineup and consumer backlash against Musk’s far-right political views.
“The big question is, how much incremental demand is there at this point with the staleness of their vehicle portfolio?” said Garrett Nelson, a senior equity analyst at CFRA Research.
The results will also show the speed at which a key driver of Tesla’s profit is disappearing. The U.S. government has changed policy on regulatory credits that traditional automakers bought from electric-vehicle companies to make up for the tailpipe pollution from their gasoline-powered vehicles. The new policy means future sales of the credits are unlikely – and they may have dried up in the third quarter as well.
We can talk about this until we’re blue in the face here: It’s clear that if Tesla wants to continue its sales volume and profits, it will need a new model. Specifically, one that was made to be downmarket from the (originally) Premium-oriented Model 3 and Model Y. A smaller “Model 2” would likely be just what the brand needs to get more drivers in its cars, and fight back against the onslaught of reasonably-priced global models (many of them Chinese) that are eating Tesla’s marketshare.
Instead, it looks like Elon Musk and Tesla are trying to boost profitability by pivoting to AI and going all in on robotaxis. Good luck.
60%: Uber Gives Cash to Drivers For EVs
If you’ve used the Uber rideshare car for the past five years or so, you’ve likely seen the Uber Green option. For some markets, this option in the app would allow the ride requester to ask for an electrified vehicle (often a hybrid) to drive them to their destination.
Well, Uber Green is out. Uber Electric is in. The rideshare app is changing the feature’s name, while also adding in some nifty features to make the driver’s life a little easier. For starters, it’s throwing $4,000 cash toward drivers switching from gas-powered cars to electric ones. Keep in mind that it’s not for all states, just California, New York, Colorado and Massachusetts. This is also on top of the $1,000 discount for drivers who buy a car for Uber through TrueCar.
Interestingly, the launch of the service also includes a new ride-matching feature for the driver. According to reporting from The Verge, it will allow drivers to be accurately matched to rides. Meaning, no ride will be too long for the car’s current state of charge:
The feature filters trip requests based on an EV’s battery level so drivers can accept trips that end near a charger or avoid trips that are too long for their battery. The feature is now launching in 25 countries in the US, Canada, and Europe. And it will now support EVs from Kia, Hyundai, Ford, Nissan, Volkswagen, and Mercedes-Benz.
Uber’s had big plans to go completely zero emission by 2040. If it keeps up these incentives to get drivers in EVs and out of combustion cars, it just might make that goal.
90%: It’s GM’s Big Tech Day
Photo by: Patrick George
Ultium may have had a lot of missteps, but unlike other manufacturers, GM isn’t abandoning EVs or the lessons learned in car making entirely. Today, the conglomerate has announced some big moves for its future products that we’re covering here at InsideEVs.
It’s touting a more powerful, centralized computing architecture that should create more sophisticated software-defined vehicles. From our own Suvrat Kothari:
The automaker said that it’s no stranger to rolling out software updates en masse. Some 4.5 million GM vehicles are already capable of receiving over-the-air updates, thanks to the Vehicle Intelligence Platform (VIP) that was upgraded in 2022 to incorporate infotainment and advanced driver assistance systems (ADAS) onto a single computing platform.
That was just the first step towards software-defined vehicles, the smartphones on wheels that the auto industry has been talking a big game about for years. GM thinks now it’s ready to go all in.
Plus, it’s planing to add eyes-free, hands-free functionality to Super Cruise. For the full scoop, check out our story from Patrick George:
GM plans to add “eyes-free” functionality to Super Cruise by 2028, the company said, meaning that users will be able to take their hands off the wheel but will no longer be required to stay focused on the road when the system is engaged. This function will debut on the Cadillac Escalade IQ—and that means the current model, not a new one, a GM spokesperson confirmed. It would be a true Level 3 advanced driving assistance system, one step up from the Level 2 system that currently defines Super Cruise and virtually every other system in the U.S.
100%: Would You Use Uber Electric?
Uber Green (and Uber Electric) came with a slight surcharge in ride, for riders willing to go out of their way to ride in an EV. For some, that extra dollar or so in fees is negligible enough to ensure that they’re doing their part to not harm the environment. Heck, I know people who are “EV or bust” even when it comes to renting a car on vacation. No matter where they are, they refuse to go back to gas, no matter the circumstance.
How about you? Are you EV-only for all of your transportation needs? Or is a one-off gas-guzzling rideshare okay every once in a while?
