Climate Crisis AM Edition 1.5.24
Here are some stories we’ll be watching today and this weekend.
The 45th Consumer Electronics Show opens in Las Vegas on Monday, with more than 130,000 attendees from around the world gathering to sample the latest in technical innovation, including a surge in electric vehicle products. CES, traditionally the first major U.S. trade show of the year, has increasingly become a place for automakers in the last decade as cars and trucks have become more high-tech. A slew of EV innovations is expected, including a new series of electric and hybrid cars from Honda.
More EV news: EV prices are likely to rise in 2024.
Shares of electric vehicle maker Lucid (LCID) are expected to be volatile at the open after the U.S. National Labor Relations Board
filed a complaint against it for allegedly firing two employees for supporting an auto union. Lucid shares are down almost 40% in the last year as it struggles to find a market for its high-end vehicles.
Heavy traffic to news websites that published the Jeffrey Epstein documents will continue as journalists, lawyers, historians, and the
public continue to sift for big names associated with the late sexual offender. Any corporate CEOs connected could see the impact on their companies’ share.
The EV market share war between BYD and Tesla in China has heated up after BYD passed Tesla in total global sales in 2023. According to the FT, Tesla has done a much better job managing inventory, and its sales per store are more than twice those of BYD. Even with the difference in dealer efficiency, each gained market share in China. BYD’s rose from 21% in the first ten months of 2022 to 27% in the same period this year. Tesla’s share rose to 12% from 10% in the same period.
In more EV news, small manufacturer Fisker will abandon its direct-to-consumer car-selling approach. The company is struggling to survive. Its penny stock shares trade at $1.46, down 76% in the last year. According to The Wall Street Journal, as part of its change in sales strategy, it plans to have 50 dealers later this year. Fisker is among a small army of EV makers, which include Lucid and Rivian. Each sells only a few thousand vehicles a quarter and has a weak balance sheet.
EV sales have stopped growing in the UK compared to total vehicle sales. The EV share of the auto market was 16.5% last year, compared to 16.6% in 3022. This news is potentially bad for EV car sales in the US, where some of the world’s largest manufacturers struggle with modest sales. Among the reasons given for the difficulty in America are high prices compared to gas-powered cars, a small number of charging stations compared to the gas stations, the limited range an EV can travel on a single charge, and charging time compared to the time it takes to fill the tank of a gas-powered car.
In a sign of the extent to which EV news dominates the news about green tech today, Tesla has recalled 1.6 million cars in China. The reason is similar to the one that triggered a recall in the US late last year. Tesla’s autopilot features may lead to accidents. Tesla has defended its technology, claiming drivers who had accidents were using the autopilot incorrectly. Nevertheless, recalls are part of a larger investigation by the National Highway Traffic Safety Administration (NHTSA), which could cause Tesla legal problems this year.
So far, attacks on ships on their way to the Suez Canal have had only a limited effect on tanker traffic. There have been worries that oil prices would rise if ships carrying crude oil were forced to go around the Cape of Good Hope. Houthis rebels have fired rockets at some ships. Crude oil prices have not been affected by the threat.
