AD #3448 – Should U.S. Mandate Tesla Charging Tech?; EVs To Reach Cost Parity In 2025; Mercedes Peels Off the FTX Logos

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

ELON MUSK FACES $56 BILLION LAWSUIT
Elon Musk is the richest man in the world. But he may have to give back that $56 billion payout he got in 2018. A small Tesla shareholder is taking Elon to court this week. He alleges that Musk used his power over the board of directors to get easy terms to qualify for that $56 billion payout, and that shareholders were tricked into agreeing to it. But Musk and Tesla’s board deny the allegations. They say the pay package incentivized Musk to hit his performance targets and that sent the stock soaring. The trial starts today and Elon could testify tomorrow. Here’s something to keep an eye on. The judge who will hear this case is the same one who heard the case that ended up forcing Elon to buy Twitter.

EVS TO REACH COST PARITY IN 2025
One of the biggest complaints against EVs is that they cost so much more to build than piston-powered vehicles. But that could soon change. Sylvain Filippi, the head of Envision Racing, which competes in Formula E, recently said that EVs will reach cost parity with gas powered vehicles in 2025. And Volvo’s CEO Jim Rowan agrees. Rowan says technology will bring down the cost of batteries which will help EVs reach cost parity with ICE vehicles by the middle of the decade. He says one of the driving forces is that technology will improve range which will allow smaller batteries to be used, and that will help drive down cost.

 

MERCEDES PEELS OFF THE FTX LOGOS 
Mercedes-Benz won the Brazilian Grand Prix yesterday–took first and second, a huge step forward for the team this year. But one thing was missing on their cars as they took the checkered flag: the logo of one of their biggest sponsors, FTX. Maybe you heard already. FTX was one of the biggest crypto companies that saw its stock crater as the crypto sector tanked this year. Its business was in chaos. Even so, last Thursday, Mercedes said it was sticking with its sponsor and would keep its logos on its cars. But on Friday FTX filed for bankruptcy and its CEO Sam Bankman Fried resigned. There was no way that Mercedes-Benz was going to have its Grand Prix cars race around a track in front of a global TV audience with the logo of a bankrupt company on them, so they peeled the stickers off before the race got going.

FRANCE MANDATES PV PANELS AT PARKING LOTS
France leads the world in using nuclear energy. But now it’s turning towards the sun. The French Senate just approved a bill that requires parking lots to install solar panels. Starting next year, parking lots with 80-400 parking spaces have five years to cover half the area in solar. Bigger lots only have three years. Some can file for exemptions, and the government says it’s aimed primarily at parking lots off freeways and other major routes. But France estimates it could generate 11 gigawatts of electricity this way, which is the equivalent of 10 nuclear reactors.

MORE SPECS ON HYUNDAI’S NEW FLAGSHIP 
We showed you Hyundai’s all-new flagship sedan, the Grandeur, which is sold in other markets as the Azera, about a month ago and now we can fill in a few more details. Power will come from one of two engine options, either a 1.6L turbo hybrid that makes about 180 horsepower or a 3.5L gas unit that offers roughly 300 horsepower. The interior is highlighted by a large display that combines the instrument cluster and infotainment into one big unit, which sits above a slightly smaller digital screen for the HVAC controls. Hyundai says the Grandeur will have “a serenely quiet interior made possible by sound-proof glass, separable carpet and noise-canceling tires.” Its new flagship sedan goes on sale in select global markets in the second quarter of next year.

SHOULD US MANDATE TESLA CHARGING TECH?
CCS or Combined Charging System is the main charging type in North America for electric vehicles right now, but should it be? I think Tesla is pretty widely considered to have the best charger and now the EV maker has opened its charger design to the entire world. It’s inviting charging operators and manufacturers to install its connector and charge port on their equipment and vehicles. Tesla even changed the name of its system to North American Charging Standard or NACS. And it already has one company in its corner. Three-wheeled electric solar vehicle maker Aptera launched a petition earlier this year to change the standard from CCS to Tesla’s design in North America and has almost 40,000 signatures. It’s easy to see why some people would want to adopt it. Tesla’s design is sleeker, its stations are more reliable and it has way more power without the need for liquid cooling. Based on power outputs released by Tesla its system is capable of charging around 900 kW of output, which is much higher than what its stations currently operate at and more than double the output of CCS. So, what do you think? Should Tesla’s NACS become the new standard?

 

AUDI OPENS CHARGING SALON IN CHINA
​​Audi is following in Tesla’s footsteps and is opening its own dedicated EV charging network in China. And these stations will pack a real punch. Each one will have a peak charging power of 360 kW with a maximum voltage of 1,000 volts. The stations also feature liquid cooled terminals to lower the heat produced while fast charging. Audi owners just need an app to pay for the charge and the locations will be integrated into the vehicle’s nav system. The first stations will open in major cities in China by the end of the year with more to open at a later date.

VW TO USE DEVELOPING NATIONS FOR ICE PRODUCTION
Sales of electric vehicles represent the fastest growing segment in the auto industry. But that’s only true in developed countries. So what are automakers going to do in developing countries, where EV adoption could take another decade or two to catch on? Volkswagen is giving us a hint of its strategy. Its operations in South Africa, Brazil and India are emerging as the manufacturing centers for ICE vehicles for developing countries. South Africa makes about 500,000 vehicles a year which are mostly exported to Europe. Ford, Nissan and Toyota are there and BMW even used to export 3-series sedans to the U.S. But now those companies are going to start shipping their exports to developing countries. At some point these ICE factories will have to convert to EVs, but that’s not going to happen for years to come.

WULING KFC & CADILLAC RAGNAROK
We’re seeing the beginnings of a marketing trend in China that could catch on across the world. And it’s all about co-branding. Take a look at this crazy version of the Wuling Mini EV. It’s the KFC edition! Yeah, you hear right, Kentucky Fried Chicken. It’s one of the prizes you can win in a contest KFC is running in China. Wuling has done a brilliant job of coming up with colorful variants of this car, which is the best-selling EV in China. And co-branding editions like the KFC will help keep this car in the headlines. And then there’s the Cadillac CT5 God of War Ragnarok edition. That’s a co-branding campaign with Sony’s popular and very violent Playstation game. Get ‘em while they’re hot. Cadillac is only going to sell 120 of them. No word yet on how much more it’s going to cost.  

But that brings us to the end of today’s show. Thanks for tuning in.