AD #3321 – Rivian Loses Billions In Market Cap; Chinese Car Market Takes A Bath; Tesla Takes Big Steps Forward in Recycling
May 10th, 2022 at 11:54am
Listen to “AD #3321 – Rivian Loses Billions In Market Cap; Chinese Car Market Takes A Bath; Tesla Takes Big Steps Forward in Recycling” on Spreaker.
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Runtime: 11:06
0:08 Chinese Car Market Takes A (Covid) Bath
0:54 Rivian Loses $100 Billion In Market Cap
1:42 Foreign EVs Crack South Korea’s Protected Market
2:35 Tesla Takes Big Steps Forward in Recycling
4:17 Geely Buys Part of Renault-Korea
5:15 Bollinger & Roush Team Up for Production
5:56 Hyundai Deploys 30 Hydrogen Semis in California
6:34 Bentley Bentayga Believes Bigger Is Better
7:54 First Look: Sierra Denali Ultimate & AT4X
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CHINESE CAR MARKET TAKES A (COVID) BATH
Well, we knew this was going to be bad. New car sales in China fell off a cliff last month. The country is grappling with its zero-Covid policy that has many cities, including Shanghai, in a near total lockdown. That kept car production well below where it would normally be, and kept hundreds of thousands of consumers from going out and buying new cars. Only 1 million new cars were sold last month, down 35% from a year ago. And production was down 45%. Just to give you an idea of how hard the market was hit, Tesla sold an average of 60,000 cars in China every month in the first quarter. Last month it only sold 1,200 cars.
RIVIAN LOSES $100 BILLION IN MARKET CAP
When Rivian went public, the stock soared to the stratosphere. Now it’s coming back down to earth. At its peak 5 months ago, Rivian had a market cap of $127 billion. It was worth more than General Motors and Ford put together. But the EV startup started missing its production targets, and the market did not like that news. The stock started dropping. Then, yesterday, word got out that Ford was going to sell off 8 million of the 102 million shares it owns in Rivian. And the stock dropped even more. As of now, Rivian has a market cap of $20 billion. It has lost over $100 billion of value in only 5 months.
FOREIGN EVS CRACK SOUTH KOREA’S PROTECTED MARKET
Car buyers in South Korea are some of the fastest EV adopters in the world. According to Bloomberg, EV sales topped 100,000 units for the first-time last year. And new EV entrants to the market are seeing quick success. Tesla sold nearly 18,000 cars in South Korea last year, making it the 4th largest foreign automaker, pulling ahead of VW and Volvo. Yet Volvo’s EV brand, Polestar, had the top-selling foreign EV model in April, even though it only opened its first showroom there in December. So, foreign automakers are seeing some success in South Korea’s EV market. But it’s only in EVs. The South Korean market is dominated by Hyundai and Kia, which account for more than two out of every three vehicles sold.
TESLA TAKES BIG STEPS FORWARD IN RECYCLING
Tesla is taking big steps forward with battery recycling. Last year, it recycled 1,500 tons of nickel, 300 tons of copper and 200 tons of cobalt. With the surge in raw material prices, that copper is now worth $16 million and the nickel is worth $45 million. Tesla also said that at the end of 2021, it was recycling 50 tons of material per week. But because most of its customer batteries are relatively new, it’s only receiving a small number of batteries to recycle and most of them are from vehicles used as taxis or are scrap batteries from its R&D and Quality Control departments. Tesla says it will be some time before it starts recycling customer batteries in large volumes.
GEELY BUYS PART OF RENAULT-KOREA
We were talking about South Korea before the break but we’re not done there yet. About twenty years ago Renault bought Samsung’s automotive assets and has been selling and manufacturing cars ever since. But not with a lot of success. So it’s selling about a third of its stake in Renault Korea Motors to Chinese automaker Geely. The two are going to build ICE and hybrid vehicles off of Geely’s CMA platform, which is used by many Geely brands, including Volvo. They’ll be made at Renault’s plant in South Korea starting in 2024. These models will likely be sold in other markets as well, possibly including the US, which has a free trade agreement with Korea. When this partnership was first reported last year, we said the vehicles could be branded as Renaults and sold in China, since it ended its partnership with Dongfeng. And Geely could also use it for Lynk & Co vehicles in South Korea.
BOLLINGER & ROUSH TEAM UP FOR PRODUCTION
EV startup Bollinger Motors announced that Roush Industries is going to build its electric platforms and chassis cabs for Class 3 through 6 commercial vehicles. Bollinger will source and provide the materials needed to assemble the parts that will be done at Roush’s facility in Livonia, Michigan, which is not too far from Bollinger’s headquarters. Even though Roush is most famous for its racing activities, the company has extensive experience in vehicle development and assembly. It is especially good at low volume assembly. And this will help Bollinger avoid the manufacturing hell that’s bedeviled so many other EV startups.
HYUNDAI DEPLOYS 30 HYDROGEN SEMIS IN CALIFORNIA
Hydrogen power continues to make progress, at least in trucks. Hyundai announced plans to deploy 30 of its Class 8 6×4 XCIENT fuel cell heavy-duty trucks at the Port of Oakland, California in 2023. It made the announcement at this week’s Advanced Clean Transportation Expo in California, where it will also discuss the challenges, policies and business plans regarding hydrogen fuel cell vehicles. Visitors to the show can get a first-hand experience in Hyundai’s fuel cell trucks as part of a ride and drive program that it’s running.
BENTLEY BENTAYGA BELIEVES BIGGER IS BETTER
The Bentayga is already Bentley’s best-selling model and now it’s getting a new, long-wheel base variant. It’s 180 mm or a little over 7 inches longer, has rear-wheel steering and the Bentayga’s Dynamic Ride suspension as standard. There’s not a whole lot different in the styling department, but the interior features three seating configurations, including an all-new 4+1 layout. There’s also a cool feature on the doors. The leather is perforated with a bunch of little holes that let light through, which is meant to mimic the diamond stitch pattern you see on so many luxury cars. The new Bentayga LWB launches in the 4th quarter of this year.
FIRST LOOK: SIERRA DENALI ULTIMATE & AT4X
GMC invited us to test out the Sierra Denali Ultimate and Sierra AT4X models, which are new to the truck’s lineup. First, the similarities between the two. Both come standard with a 6.2L V8, that’s mated to a 10-speed automatic transmission. The Denali Ultimate is also available with a 3.0L diesel. Both models come standard with a 12.3-inch digital instrument cluster, a 13.4-inch infotainment screen and a 15-inch head-up display. And both come with leather-wrapped, massage seats. Ok, now onto the differences. Each truck has its own grille design and different styling cues in the interior. The Denali Ultimate comes standard with Super Cruise, which is optional in the regular Denali. It’s the latest version which adds automatic lane change and towing capability. While we only got to experience it briefly, the hands-free system performed well and handled the auto lane changes smoothly. Moving on over to the AT4X, it’s the off-road version of the Sierra. It features Multimatic DSSV spool-valve dampers, front and rear e-locking differentials, along with 18-inch wheels and 32-inch tires. It also has a two-speed transfer case with selectable modes, including Terrain Mode which allows one-pedal driving, which is especially helpful going up or down steep off-road trails. Speaking of which, the AT4X’s off-road capabilities are pretty impressive and smooth thanks to the Multimatic dampers. But it’s also a comfortable ride out on paved roads. Both models are available now and are aimed at a premium audience. And the pricing reflects that. The Denali Ultimate starts just under $83,000, while the AT4X is $77,400, including destination charges.
LINCOLN DESIGNER KEMAL CURIC ON AFTER HOURS
What did you think of that concept car that Lincoln showed off last month? They call it the Star. We’re wondering if this is a signal that Lincoln is heading in a new design direction as it goes electric? Is this the future face of Lincoln? And all those cool features on the car, are they gimmicks or are they really headed into production? Those are some of the questions we’ll be asking Kemal Curic, who’s the head of design at Lincoln, and who’s also our guest on Autoline After Hours this Thursday. So join John and Gary to learn more about how Lincoln hopes to transform itself as the auto industry goes electric.
But that’s it for today, thanks for tuning in.
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Comments (22)
May 10th, 2022 at 12:20 pm
Not trying to start a debate on Covid but is China having a lot of Covid deaths? I don’t catch the national news very often so maybe I’m just oblivious to what’s going in there. Are these shutdowns justified?
The Rivian stock drop makes me wonder if that was Fords plan all along. Take advantage of the stock price while knowing if the sell it will drop significantly. Or Does Ford know something more? Start-ups are seeing the difficulties in making it in the auto world.
May 10th, 2022 at 12:33 pm
Sean, Do you have any info on the business side of Tesla’s recycling program? My experience in the metals recycling industry leads me to believe this is financially a race to the bottom, with recyclers caught between having to pay savvy sellers for the metals in the batteries and then process and sell them on the open market. Great idea from the standpoint of conserving resources, but hard to make money on.
May 10th, 2022 at 12:55 pm
RIVIAN: Before we even talk about the market side, who would park something like that in their driveway? ACM
May 10th, 2022 at 1:27 pm
1 China isn’t having many covid deaths, and they want it to stay that way, thus the lockdowns. It seems that they may be overdoing things, though.
Does anyone know where Tesla does the battery recycling? The linked article doesn’t say, or I missed it.
May 10th, 2022 at 1:33 pm
GM certainly has a cash cow with the GMC Denali brand. Extending its offerings is smart.
Interesting that GMC pickups outsell Chevrolet pickups in Canada.
May 10th, 2022 at 1:38 pm
5 Are GMC and Chevrolet sold at the same dealers in Canada? There are a lot more Chevy dealers in the US, which is probably why Chevy far outsells GMC here.
May 10th, 2022 at 1:47 pm
Wow, Kemal Curic as a guest on AAH this week!! To me he is an automotive rock star. He designed my 2015 Mustang that (as a huge Mustang enthusist and multiple owner) I feel is one of the best looking vehicle designs ever! I usually am not this impressed. Now he has had a hand in the classy Aviator and this stunning Lincoln Star concept. Thank you Autoline.
May 10th, 2022 at 2:06 pm
Some tips for Kit on using 12 V-to-120 VAC inverter in a Prius.
Minimize AC power loss through extension cords with a more expensive sine wave generator. The modified sine wave inverters have sharp voltage transitions that treat the extension cord as a capacitor reducing the voltage at the other end.
Load test use a clamp-on amp meter on an inverter conductor. A portable space heater with adjustable levels makes it easy to monitor the load and voltage from hybrid into the inverter.
The hybrid drive will cycle the engine by putting a charge on the traction battery and then turning off. When the traction battery gets low, the engine will come on and operate at an efficient power point to restore the charge.
Add load with the highest inrush current first (aka., computers, motor, and TVs). Then add resistive and lighter loads.
May 10th, 2022 at 2:10 pm
China is probably having more suicides from lockdowns than deaths from covid. I can’t see how welding people into their apartments with or without food to survive is going to be anything less than a scene from the Walking dead
May 10th, 2022 at 2:26 pm
8 Thanks for the info. I now have a Highlander hybrid, not a Prius, but its powertrain is like a Prius, but scaled up. I would assume that its DC-DC converter would have at least the current capability of the one in a Prius.
May 10th, 2022 at 3:17 pm
Munro and his wife took delivery of a Rivian R1T a month ago. The good thing, it is an EV with less stuff to break, wear out, or need maintenance.
May 10th, 2022 at 3:28 pm
11 Did they take delivery of it to drive long term, or to tear down and see how it’s made?
May 10th, 2022 at 3:47 pm
@3 I would park it on my driveway but would cover those headlights.
May 10th, 2022 at 8:08 pm
The web link is to the longer of Sandy’s video. My impression is for their use.
May 10th, 2022 at 8:26 pm
While it has been long in coming, IMHO, when you consider what the competition has to offer in terms of size, even a longer wheel base version will still not measure up to other in the field! The Cullinan, DBX, Range Rover, GLS and X7, while not all are direct competitors, offer more space and ambiance for their top tier clientele. Attempting to compete on size against full size SUVs, with a midsize platform will just not measure up to those in the higher class. This stretched version will no doubt be the Bentayga’s starting point in its next generation. That said, unless Bentley introduces a full size SUV/CUV, in comparison to their competition, the Bentayga will always be the great thing that comes in a small package!
May 10th, 2022 at 8:32 pm
#16,)…sorry, that rant is in regard to the EWB ( or is that LWB) Bentayga!
May 10th, 2022 at 8:59 pm
Your Mark Reuss interview was great!
I had to deal with Jack Welch who was a mirror image of the brain-dead GM management of previous decades. Managers who built down their formerly great companies.
May 10th, 2022 at 10:10 pm
15 If you want size, don’t you just buy a Suburban or Expedition, which are bigger than any of those you mention, and save about $250K compared to some of them? Size is not what these obscenely expensive trucks are about. It’s name plate, and fancy interiors.
May 10th, 2022 at 10:25 pm
17 I remember Jack Welsh. Wasn’t he largely responsible for changing GE from “bringing good things to life,” into a money laundering company? Maybe younger people here wouldn’t remember those ads that GE ran for years, starting in the 1970s, back when they made light bulbs and appliances, before the appliance part of GE became owned by a Chinese company.
May 11th, 2022 at 6:28 am
18 That is true and just because things are small, does make them less special. Yet, in a world where big and bigger is viewed as better and a greater display of money and wealth could the midsize Bentayga be seen to be coming up short, as compared to the competition mentioned earlier? I why do a long wheelbase version in the first place then? ‘The give the customer…I should say clientele, more room and space, right? Sure, that maybe true! But, it can’t go unnoticed that their closest competitors already appears to have the room they lack, because their due to their larger accommodations! If more wasn’t better in the minds of those who have the disposable income to buy big-ticket items, why would hypercars and Exotics need to keep figuring out ways to come up with more horsepower, to only make their vehicles faster by only 10th of a second? Because more and bigger the number seems to make it better! To your point, if size was the only parameter, the Big Three, Toyota, Nissan, Mercedes and BMW got you covered! Yet, if you cross shop Aston Martin, Range Rover, Rolls Royce and Bentayga, to transport your Precious Cargo back and forth, having extra room to do so may be important. Or they could just buy a bus and be done with it!
May 11th, 2022 at 8:15 am
20 It turns out that the current Bentayga is longer than the DBX and standard Range Rover. The X7 and GLS are ~2-3 inches longer, and the Rolls is 8 inches longer. Are any of these machines 3 row, except the BMW and Mercedes? If so, the 3rd row must not be very roomy, because the vehicles are not much longer than a Highlander, which’s third row is only for small kids, or very short trips for adults.
May 11th, 2022 at 8:35 am
As someone that wants to tow, the Bentayga, Range Roller, BMW X7, Mercedes GLS, Aston Martin, et all are not appealing to me. I would just get a Suburban, Yukon, or Escalade. Probably a Suburban as the Escalade is too flashy for my tastes.