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Electric vehicles are one of the main characters in this newsletter, so I thought it was worth noting a less visible – but fundamental – aspect of the history of electric vehicles here in North America.
I am talking about the new directives of the US Treasury Department (through the Department of Energy) regarding what it will take for electric vehicles to qualify for the federal tax credit, starting January 1.
The long-awaited guidance disqualifies electric vehicles from the tax credit if any of the battery components are manufactured or assembled by a foreign entity of concern such as China, Iran, Russia and North Korea. (China is the country to pay attention to since the country is the dominant and main supplier of components and raw materials for batteries.) The guidelines extend in 2025 to cover raw minerals that are mined, processed or recycled by one of these entities of concern.
It is important to note that departments go further in specifying how they determine what a “foreign entity of concern” or FEOC is. There are two ways: if an entity is subject to the jurisdiction of a foreign country that is a covered nation (such as China) or if a company is owned, controlled by or subject to the direction of a government of a country foreigner who carries out the relevant activities in a covered country. What does owned or controlled by mean? Both departments have an answer: the entity has cumulative direct or indirect control greater than 25% of the board seats, voting rights or equity interests of a covered country or if a non-FEOC has entered into a licensing agreement with an FEOC that gives it “effective control” over business operations.
THE Zero Emission Transportation Association deepens the advice for those who want the complete analysis. Here is also an overview of North American battery factories (we update this list and chart periodically).
The problem is that it will become more difficult for electric vehicles to benefit from the tax incentive. However, the industry appears to support the rule because it provides much-needed guidelines and a greater level of certainty as automakers invest billions of dollars in domestic manufacturing of electric vehicles and batteries.
Would you like to contact us with advice, comments or complaints? Email Kirsten at kirsten.korosec@techcrunch.com or Rebecca at rebecca.techcrunch@gmail.com.
Reminder that you can send us a message at tips@techcrunch.com. If you prefer to remain anonymous, Click here to contact uswhich includes SecureDrop (instructions here) and various encrypted messaging applications.
Micromobbin’
We hear that there are more layoffs in Bird. We don’t have all the details, like how many employees are now out of work, but a few employees have posted information about the latest wave of layoffs on Linkedin. According to social media posts, the layoffs affect a range of teams, from data to strategy and operations. One laid-off employee worked as an electronics engineer and helped design Bird’s consumer scooter.
This is Bird’s third go-round in the last two years. More recently, in October, Bird laid off employeesciting layoffs after acquired Spin for $19 million. In August 2022, Bird also removed 23% of staff and shuttered its scooter retail product in an effort to curb previous executives’ rampant cash burn.
Bird did not explain why it reduced its workforce, but layoffs typically occur when a company is trying to reach profitability. Just look Floorwhich also issued layoffs (around 140 people) this week. Tier being still private, it’s difficult to say if he will manage to get out of the red. Bird, however, is so far from profitability that I’m not sure it will ever get there.
In September, Bird was written off of the stock market for failing to maintain a market capitalization of more than $15 million for 30 consecutive trading days. As of September 30, 2023, Bird was $19.8 million in the hole and had accumulated a $1.6 billion deficit since its inception. Bird’s going concern warning remains in effect: the company does not have enough cash to survive the year, given its current cash burn.
In short, Bird is knocking on the door to bankruptcy, and I’m skeptical whether these layoffs will provide enough savings to get Bird through the next 12 months.
If you have been affected by the recent layoffs and would like to speak to me anonymously, please contact us: rebecca.techcrunch@gmail.com.
Offer of the week
Proterra, you may recall, filed for bankruptcy earlier this year. I dug “which led to the bankruptcy of the company” in August. Now part of Proterra will officially live under a new owner.
Proterra received final approval in U.S. Bankruptcy Court for the sale of the company’s Proterra Powered business to Volvo Battery Solutions LLC. The $210 million transaction is expected to close in the first quarter of 2024.
Other aspects of the activity are still pending, but will likely be completed shortly. The sale of its ride-hailing business to Phoenix Motor Inc. is still pending with a hearing scheduled for Dec. 12. The sale of its energy unit to private funds controlled by Cowen Equity will take place through a Chapter 11 reorganization plan upon emerging from bankruptcy. .
Other offers that caught my attention this week…
EMotoradean Indian startup manufacturing electric bikes, raised $20 million in a Series B round led by Panthera Growth Partners of Singapore. Alteria Capital, xto10x Technologies and Green Frontier Capital also participated. The financing round includes $2.5 million in debt.
GoMetroa South African technology company that operates in the field of fleet management, raised £9 million ($11.4 million) in a Series A funding round led by Zenobē Energy, a strategic investor renowned for financing and operating electric buses. Other investors include new backers Futuregrowth, ESquared Ventures, Kalon Venture Partners and angel investor Greg Fury. Existing investors including 4 Decades Capital, Hlayisani Capital and Tritech Global also participated.
Monterra, a software company that automates the design and planning of electric vehicle charging installations, raised $2.5 million in a pre-seed round led by Base10 Partners. Future Climate Venture Studio, Very Serious Ventures and a handful of other angel investors, including some of Monterra’s first clients, also participated.
Richard Branson I won’t invest any more money in Virgin Galactic but says the space tourism company has enough funds to take it through 2026, according to the FT.
ZeroAvia, the hydrogen electric aviation startup, has raised $116 million in a Series C funding round co-led by Airbus and Barclays Sustainable Impact Capital and NEOM Investment Fund. UK Infrastructure Bank joined the round as lead investor.
Notable readings and other information
Autonomous vehicles
Cruise will be much smaller in 2024, according to parent company GM. GM Chairman and CEO Mary Barra and Chief Financial Officer Paul Jacobson said the automaker cut spending at Cruise “hundreds of millions of dollars” in 2024, a move expected to lead to massive layoffs at the San Francisco-based company that employs about 3,800 people.
Nvidia is recruiting to fill around twenty positions for a autonomous driving team distributed across the Chinese cities of Beijing, Shanghai and Shenzhen. The unit, comprised of positions in software, end-to-end platform, systems integration, mapping and product, is led by Xinzhou Wu, recognized for bringing intelligent driving to mass-produced vehicles in China in recent years. .
Cybertruck
Yeah, the Tesla Cybertruck gets its own section this week. As I wrote earlier this week, the Tesla Cybertruck is loved and hated. For fans, it’s a symbol of what Tesla and its CEO Elon Musk represent: creativity, irreverence, rebellion. Others see it as an act of pride. It could be both. The Cybertruck will test if customers always trust Elon.
For editor Darrell Etherington, the delivery event provided the answer: the end of Elon.
here is a Cybertruck FAQs To start, a look at everything that Elon Musk – and others – revealed on the CybertruckA comparison with other EV microphones on the market and when the cheapest version to arrive at.
Electric vehicles, charging and batteries
Fisker reduced its annual production forecast with the aim of freeing up $300 million in working capital. This is the fourth time this year that Fisker has reduced its forecast.
Our next energyan electric vehicle battery start-up, has laid off a quarter of its staff, Automotive News Reports.
by Polestar bot tweeting about climate is not really a robot, and for good reason.
Rivien launched a limited program that will offer customers in 14 U.S. states rental option a fully electric R1T van. The company announced that it will expand the rental program to include other models and regions.
Journalist TC+ Tim de Chant explains why GM and Toyota are coming the biggest losers in the EV transition.
You’re here won a little battle against Swedish trade unionists when a court asked the country’s transport authority to issue license plates to the car maker. These deliveries were blocked by striking postal workers in an attempt to force Tesla to sign a collective bargaining agreement for the country’s mechanics.
I salute you
Uber runners in London will soon be able to hail an iconic black taxi in the city. London taxi drivers can now start signing up for Uber travel referrals, but the service won’t roll out until early 2024. This isn’t the first partnership Uber has struck with a taxi company, and it won’t be the last.
