Tesla’s profits fall, Fisker’s flatline, California cities vie for AV leadership

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ah, tesla Earnings happened this week – yes, it was. a lot. A lot, you ask? There’s a lot of the same kind of promises and hand-waving that we’ve seen before, just wrapped in a slightly different package. This bet reminds me of the pre-profit Tesla era, around 2018.

Let’s be clear: Tesla has enjoyed profitability since 2020. However, the company is facing downward pressure on its profits, with its profits down 55% year-on-year, and its portfolio of best-selling vehicles continues to age. (Yes, we also covered the new Model 3 Performance variant. We’re talking about the new mass-market model here.)

Tesla CEO Elon Musk We need to create new sources of income. And fast. The company can’t wait two years or more before launching a new platform to offer sub-$25,000 EVs.

So Musk tweaked his plan based on what he knew so far. It’s not that much. During the company’s first-quarter earnings call, Musk laid out opaque plans with few details to launch multiple inexpensive EVs in 2025 (possibly late 2024).

Musk understands that being a forward thinker and innovator has been rewarded by the market in the past, even if his plans never materialize. So Musk also pulled that futuristic lever, promising higher levels of self-driving capabilities for his company’s FSD driver-assistance software and robotaxis. As a reminder, Musk announced during Autonomy Day in 2019 that Tesla plans to launch a robotaxi network by the next year. Musk spoke about Tesla Network and his ambition to allow owners to put their cars on ride-hailing apps since 2016.

Shareholders responded with glee, saying the future could be now or next year. Well, maybe around the end of the decade? It’s exciting anyway.

In an unrelated memo, a recently retired prominent Tesla executive said: Drew Baglino Approximately 1.14 million shares were sold value 181.47 million dollars. The filing describes this as an exercise of stock options.

Alright, let’s go!

small bird

a small bird pointed it out to me Valeo CTO Jeffrey Buco I am retiring from the company I worked for for 8 years. For those unfamiliar, Valeo is a French auto parts supplier that is expanding into the EV and self-driving space. The company also has his AI research center focused on automotive applications.

While this EV sector has been a promising area for Valeo, this recent quarter reflects what’s happening in other sectors. The company’s sales decreased in the first quarter as sales of high-voltage electrification systems fell by nearly half. Valeo is now Adjusting to suit car manufacturers We need a so-called hybrid.

Have a tip? Email Kirsten Kolosek kirsten.korosec@techcrunch.com, Sean O’Kane sean.okane@techcrunch.com or Rebecca Beran Rebecca.bellan@techcrunch.com. If you wish to remain anonymous, Click here to contact usthis includes SecureDrop (instructions here) and various encrypted messaging apps.

Great deal!

Who has a deal? that’s right. Here are a few that stood out.

chemixA company that utilizes AI to accelerate the development of next-generation EV batteries. raised $20 million In a Series A funding round led by Ibex Investors. Other participants include Mayfield Fund, Berkeley SkyDeck, Urban Innovation Fund, strategic investors his BNP Paribas Solar Impulse Venture Fund, Global Brain’s KDDI Open Innovation Fund III, and Porsche Ventures.

run the jetis a sustainable fuel technology company and fuel producer that received an undisclosed investment from Microsoft’s Climate Innovation Fund.a Reporting in Axios Pro The company has raised $100 million and expects to close this quarter.

outpostis an Austin, Texas-based startup that manages a network of semi-truck parking facilities. Raised $12.5 million In a Series A funding round led by GreenPoint Partners. The newly branded company, founded in 2021 under the name Semi-Stow, is also backed by Speedwagon Capital Partners.

radical, Seattle-based startup developing solar-powered, high-altitude autonomous aircraft raises $4.5 million in seed round led by Scout Ventures with additional funding from investors including Inflection Mercury Fund and Y Combinator was procured.

soleraThe automotive data and software-as-a-service company is considering an initial public offering that could raise more than $1 billion. reported by bloomberg.

stark futureA Spanish startup company that manufactures off-road electric motorcycles, 25 million euros From Big Bets. The company will use the funds to expand production capacity for its electric off-road motorcycle “Stark VARG.”

Notable reads and other trivia

ADAS

of National Highway Traffic Safety Administration A years-long investigation into Tesla’s Autopilot driver-assistance system has ended after investigating hundreds of accidents caused by its misuse. This included 13 fatalities and “an additional number of serious injuries.” Tl;dr: The agency said Tesla’s driver engagement system is “weak” and “not adequate for Autopilot’s permissive operating capabilities.”

self-driving car

TC reporter Rebecca Beran continues to track legislative activity in California, one of the hotbeds of AV activity. Get the latest on the four bills being considered in the state Legislature, and specifically how they could put cities in a stronger position.

electric car, charging, battery

faraday future trying to to start Stocks from the Nasdaq Capital Market, a tier within the exchange for companies with low valuations, are out because stock prices have been too low for too long.

fisker has cut 15% of its workforce and plans further cuts within two months. If the company is unable to raise the funds, it plans to file for bankruptcy protection within the next 30 days, according to a regulatory filing.

mercedes He gave me detailed information about the future. all electric g class — “Birkin Bag” in the automaker’s portfolio. Click here for a comparison with the gas-powered version.

Rivian is offering up to $5,000 off EVs and one year of free charging to customers who want to trade in eligible gas-powered trucks and SUVs. These target vehicles, including the Ford F-150, highlight the type of customers Rivian is targeting.

the future of flight

Amazon Prime Air drone delivery operations in Rockford, California have ended. The central California town of 3,500 people is the company’s second U.S. drone delivery hub after College Station, Texas.

joby aviationA California company developing electric aircraft has signed a memorandum of understanding agreement with three departments of the Abu Dhabi government. electric air taxi service Ecosystem.

zip line This week we passed a major milestone. One of the autonomous drones, called “Zip,” transported two bags containing intravenous fluids from Zipline’s distribution center in Ghana’s Western North Region to a local health facility. The company’s 1 millionth delivery.

Automotive technology

Here’s some geeky stuff I enjoyed.car electronics suppliers Electrobit Introducing EB corbos Linux for safety applications. What exactly do those words mean? At Ars Technica, nice explainer, But essentially, Elektrobit has developed an open source-based automotive operating system that is certified for automotive safety compliance. This is important if you are interested in “software defined vehicles”.

wheel of the week

Image credits: Kirsten Kolosek

of 2024 Lexus LC 500h It’s not an EV. But here at TC we’re also interested in hybrids. Plus, it’s been a minute since he spent time reviewing the Lexus brand’s numerous products. Prices for the Lexus LC 500h start at his $101,250, but the version I drove jumped to $113,350 thanks to additional luxury features like an upgraded audio system, retractable wing, and carbon fiber roof. Ta.

The Lexus LC 500h is not a car you see every day or even every year. I think it’s because coupes aren’t that popular these days, and crossovers are more mainstream, but I really like the look and proportions of the Lexus LC 500h and its V8 engine twin.

The vehicle is equipped with a 3.5L 6-cylinder hybrid engine that produces 354 horsepower with the addition of an electric motor that powers the rear wheels. Another electric motor charges the vehicle’s battery.

What’s interesting is that this vehicle has a multi-speed transmission. So this basically means that Lexus took the existing electronically controlled continuously variable transmission system and then added another gearbox (a 4-speed transmission). It is believed that this will give the driver a sportier experience and allow him to select between 10 different gears via paddles behind his steering wheel when the vehicle is in manual mode. Lexus’ multi-stage hybrid system has been around for years, but I had yet to actually try it.

My take: After using it in manual mode for a while, I found myself simply switching it back to “drive” and letting the car do the work.