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Yahoo
7 days ago
- Automotive
- Yahoo
Tesla's superfans and skeptics eagerly watch high-risk robotaxi rollout this month
Tesla investors, fans and critics are closely watching for the first signs of fully autonomous robotaxis on the streets of Austin this month as CEO Elon Musk either delivers on his decade-old promise of self-driving cars or postpones again. The stakes are high for the automaker as its vehicle deliveries stumble, falling 13 percent in the first quarter compared with the same period last year. Net income fell 71 percent, Tesla said. Tesla deliveries also dropped 1.1 percent in 2024 compared with 2023. Musk is trying to find more lucrative business lines through a robotaxi service that could span the globe, followed by Tesla humanoid robots. Tesla, Musk has said, is now a robotics and artificial intelligence company. The first critical hurdle on the journey from automaker to robotics starts in Austin with the planned launch of an autonomous ride-hailing service using a dozen or so Tesla vehicles, which will go head-to-head with current robotaxi provider Waymo. Tesla fans on social media and at Wall Street investment banks are hoping for success, since the Austin, Texas, company could potentially scale faster than Waymo given its car-making business. 'There will be many setbacks but given its unmatched scale and scope globally we believe Tesla has the opportunity to own the autonomous market,' said Dan Ives, an analyst at Wedbush Securities and a Tesla bull. 'The march to a $2 trillion valuation for Tesla over the next 12 to 18 months has now begun.' Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Ives said the robotaxi rollout should spark a new era for Tesla, which has been battered in the market of public opinion by Musk's political activism and side job as an adviser to President Donald Trump. Musk left his White House role in late May. 'We believe that Musk's days in politics is essentially over after this experiment that clearly morphed into brand damage for Tesla and took on a life of its own,' Ives said. Musk said he'll remain an informal adviser to Trump. In late May, Musk reiterated Tesla's target of launching the robotaxi service in June using 10 to 20 vehicles. Musk hasn't set a precise day for the formal launch. The autonomous Teslas won't have safety drivers but will have remote operators as a safety precaution. The service will be limited geographically to the safest areas of Austin for autonomous vehicle operation, Musk said. 'For the past several days, Tesla has been testing self-driving Model Y cars (no one in the driver's seat) on Austin public streets with no incidents,' Musk said on X May 28. He characterized Tesla's timeline as 'a month ahead of schedule.' Skeptics of Tesla's autonomy ambitions point to Musk's track record breaking a series of promises going back a decade. In one instance, Musk said in 2019 that Tesla would have a million robotaxis on the road by 2020 using its own vehicles. Tesla's failure to create a safe and reliable robotaxi five years ago, along with Musk's older predictions of having a vehicle drive cross-country by itself, hang over the Austin robotaxi launch, said Missy Cummings, a professor at George Mason University and former safety adviser for the NHTSA. 'There's a lot of hype around this. Elon Musk has been saying for what, 12 years now, that they're coming every year,' Cummings said on Musk's autonomous Tesla predictions. Given Tesla's sky-high market valuation, 'he's under immense pressure to make it work,' she said. Cummings said Tesla hasn't solved technical problems that prevented it from launching self-driving vehicles earlier. Unlike Waymo, which uses a variety of sensors including lidar, Tesla relies entirely on cameras for perception, which is a less robust approach, she said. 'During this demonstration in June, it's possible for the cars to go from point A to point B and not have any problems for a handful of trips,' Cummings said. But Tesla's robotaxis are likely to go slow and rely heavily on remote 'teleoperators.' 'They're going to be under very strict instructions to not let anything bad happen,' Cummings said. 'You're going to see uber conservative behavior and nothing that's going very fast because the slower you go, the better teleoperation works.' Cummings said that social media videos of Tesla owners using the latest version of its Full Self-Driving software, which for private vehicles requires human supervision, raise red flags about its readiness for fully autonomous operation. 'Just a quick perusal of YouTube and all the Full Self-Driving videos that have been posted there, where the car makes serious mistakes. There's no end to the problems. They have not solved self-driving with cameras only,' Cummings said. Once Tesla's robotaxi service is working adequately in Austin, Musk has said, the company will expand to cities such as San Francisco, Los Angeles and San Antonio. And after that, to other countries as regulation allows. 'We'll start with probably 10 for a week [in Austin], then increase it to 20, 30, 40,' Musk said on CNBC in May. 'We'll probably be at a thousand within a few months. And then we'll expand to other cities,' he said. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
Yahoo
03-04-2025
- Automotive
- Yahoo
Home charging remains an EV draw, but rising electricity prices frustrate customers
Home charging — a selling point for electric vehicles — is increasingly frustrating consumers because of rising electricity prices and slower-than-expected charging speed, according to J.D. Power. Charging at home continues to be important for EV owners, especially as federally funded public charging infrastructure becomes uncertain, according to the J.D. Power 2025 U.S. Electric Vehicle Experience Home Charging Study released March 25. More than 80 percent of regular charging happens at home, according to J.D. Power. Overall satisfaction with home charging is still high, but frustrations with charging equipment is increasing. Some EV owners are rejecting mounted Level 2 chargers, opting for slow-charging Level 1 systems that connect to a standard 120-volt electrical outlet, the firm said. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Level 2 charger usage is highest among owners of 2022 model-year vehicles, while usage of Level 1 chargers is increasing among owners of 2023 and newer model-year EVs. 'We see a pretty good percentage of people who have determined that a Level 1 charger just simply meets their needs. They may not be driving all that much and they don't need the extra power of the Level 2 charger,' Brent Gruber, executive director of the EV practice at J.D. Power, told Automotive News. Other EV owners are likely forgoing Level 2 chargers as many incentives from utilities and automakers expire. One utility had a program that allowed customers to spread the cost of charger installation over several payments, rather than paying at once, Gruber said. That program, along with many others, has ended, he said. A Level 2 charger costs $300 to $600 depending on the manufacturer and retailer, plus installation. Some discounts are still available, but consumers often don't know where to find them, Gruber said. Eaton has a rebate finder on its website to set expectations before they install a charger. If home charging doesn't meet consumers' cost, safety and reliability standards, 'they tend to have a bad experience, and then it just hurts the market,' said Dan Carnovale, director of Eaton Experience Centers. Overall, EV owner satisfaction with Level 2 permanently mounted chargers fell 11 points from a year earlier to 714 on a 1,000-point scale. Satisfaction with Level 1 chargers was flat at 581, J.D. Power said. Customers tend to prefer Level 2 chargers over Level 1 because they have more features, Gruber said. They connect to Wi-Fi, allow customers to manage their charging to optimize cost, and charge EVs much faster than Level 1 plugs. Charging speed 'increases satisfaction dramatically,' Gruber said. When home charging is slower than expected, satisfaction declines 141 points on average. J.D. Power compiled the home charging study in collaboration with PlugShare, an EV driver app maker and research firm. The study consisted of 10,472 EV and plug-in hybrid vehicle owners. It was fielded from November 2024 to January 2025 and measured satisfaction with the retail price of charging equipment, cord length, size of charger, ease of winding/storing cable, cost of charging, charging speed, ease of use and reliability. Cost savings is another major driver of satisfaction. EV owners typically save by charging at home rather than filling at a gas station, Gruber said. The average cost per-kilowatt-hour at a public EV charger was $0.342 on April 2, according to AAA. The average price of gasoline was $3.238 per gallon, AAA said. At about 4 miles per kWh, it costs roughly $8.55 for an EV to travel 100 miles. That compares with $12.95 for a car that averages 25 mpg. Home charging is usually a better deal for EV owners than public chargers, but the average cost to charge EVs at home has increased. EV owners said they spent $58 on electricity to power their EVs in March, up $2 from a year earlier. Frustration with charging cost 'may represent post-pandemic consumer weariness with pricing, along with the uncertainty of potential changes to federal EV support and energy regulation,' J.D. Power said in a statement. Electricity cost varies across the country. At more than $75 per month, charging an EV was the most expensive in New England and California, Gruber said. Home charging is one of the 'key reasons why people buy electric vehicles in the first place — that cost savings, the ability to take advantage of charging at home. That's part of the value proposition,' he said. When electricity prices rise, 'the value proposition decreases,' Gruber said. 'It's a critical part of the ownership experience.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
26-02-2025
- Automotive
- Yahoo
Lucid to report Q4 earnings after record deliveries, Gravity crossover launch
Lucid Motors reports fourth-quarter earnings Feb. 25 after record deliveries of its Air sedan and the December launch of its Gravity crossover amid industry uncertainty over the future of electric vehicle incentives under the Trump administration. The Newark, Calif., automaker delivered 3,099 vehicles in the fourth quarter, a 79 percent increase compared with a year earlier, the company said last month. Less than a dozen sales came from the Gravity, which launched a few days before the end of 2024. The relatively strong fourth quarter allowed Lucid to meet its full-year production guidance of 9,000 vehicles, the automaker said. Lucid offered generous financing and lease deals to spur sales last year, with incentives reaching $15,561 per vehicle sold, Motor Intelligence said. A year earlier, Lucid's incentives averaged $10,377 per vehicle. Air pricing starts at $71,400 with shipping. Despite the sales gain and the Gravity launch, Lucid's stock price is down 3 percent over the last year, as of the Feb. 21 market close. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Rivian Automotive, a competitor EV maker that, like Lucid, also launched its first vehicle in late 2021, warned in its own earnings report last week that it expected lower sales this year because of uncertainty in the EV market. 'External factors could impact Rivian's 2025 expectations, including changes to government policies and regulations and a challenging demand environment,' the company said Feb. 20. President Donald Trump suggested during last year's campaign that he planned to end EV subsidies, including the $7,500 tax incentive for buyers. The administration has already frozen some federal funds for EV chargers but has not moved to repeal broader incentives. In addition to selling the Air and Gravity models, Lucid has reached out to other automakers to buy its EV technology. The 2025 Lucid Air is the most efficient EV in the U.S. and also has the longest range at more than 500 miles on some trim levels. CEO Peter Rawlinson told InsideEVs in February that he sees the company as both an automaker and supplier of EV technology. 'I'd love it to be 20-80. Twenty percent doing cars, 80 percent licensing,' Rawlinson told the online publication. Lucid, which is majority owned by Saudi Arabia's Public Investment Fund, has been burning through billions of dollars every year since launching the Air more than three years ago. In third-quarter 2024, Lucid reported a net loss of $950 million. Sign in to access your portfolio
Yahoo
06-02-2025
- Automotive
- Yahoo
Pair of bills could dramatically alter direct-to-consumer EV sales in Washington state
A bipartisan bill in Washington state would allow electric vehicle brands Rivian and Lucid to sell direct-to-consumer, while a separate bill would end a decade-long exemption for Tesla which allows it to sell directly to consumers in the state. The two bills were introduced in the state Senate in January, and franchised dealers are voicing opposition. Washington state is a key EV market and is one of the states that adopted California's zero-emission vehicle program rules. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. The bipartisan Senate Bill 5592 would allow manufacturers of zero-emission vehicles to offer direct sales if a brand establishes at least two service centers in Washington and provides mobile service prior to commencing sales. The bill also would allow online direct sales if the vehicles are delivered through a designated service center, delivery center or 'an authorized partnered dealership.' Washington law now prohibits direct-to-consumer vehicle sales except for Tesla. Rivian and Lucid operate showrooms and service centers in the state, however. Multiple Washington dealers, in a state Senate labor and commerce hearing on Feb. 4., spoke against Senate Bill 5592 but were in favor of Senate Bill 5377, which would impact Tesla. Senate Bill 5377 would repeal an exemption given to Tesla in 2014 that allows the brand to sell direct to consumer and bypass franchised dealerships. Washington State Sen. Rebecca Saldaña, a Democrat, is a sponsor of both bills. She acknowledged the two bills seem contradictory, but said the state is nowhere close to reaching its goal of 100 percent of all new passenger vehicles and light-duty trucks being zero-emission by 2035. 'It has been, I feel, unfair that one company ... had this exemption for all these years, especially now when we have so many other companies,' Saldaña said before public comment. Dealer Brad Brotherton, who owns two General Motors dealerships in suburban Seattle, is against Senate Bill 5592. 'When Tesla entered the market, EVs were a novelty and exceptions were made,' Brotherton said during the hearing. 'That's no longer necessary.' Susan Daaga, general counsel for the Washington State Auto Dealers Association, also testified against Senate Bill 5592. Representatives for Lucid and Rivian both said during the hearing they opposed Senate Bill 5377, but support Senate Bill 5592. A representative for Tesla also opposed Senate Bill 5377. 'Tesla has been and continues to be Washington state's catalyst for electric vehicle adoption,' said Ava Ames, Tesla's Northwest regional sales and delivery manager. Ames said if Tesla was unable to sell direct to consumer, it would hurt Washington's continued transition to sustainable transportation and would limit consumer choice. Senate Bill 5592 was first read Jan. 30. A companion bill in the state's House of Representatives was first read Jan. 29 and is in the House's consumer protection and business committee. Senate Bill 5377 was first read Jan. 20 and is in the Senate's labor and commerce committee. The legislative session began on Jan. 13 and ends on April 27. Washington State Standard reported on Feb. 4 that franchised dealers opposed and blocked a similar effort in the 2024 session, despite strong support of then Gov. Jay Inslee, a Democrat. Inslee, a longtime EV advocate, did not seek reelection and was succeeded by Bob Ferguson, also a Democrat. Senate Bill 5592 also would include training and infrastructure grants from the Washington State Department of Commerce. The bill said the department must establish a zero emission vehicle technician training and infrastructure grant program at traditional dealerships. Funds would be used only for publicly available charging and equipment infrastructure, plus employee training on EV technology and service. The bill notes that a qualified zero emissions vehicle manufacturer could also partner with 'traditional auto dealers to operate as service centers or delivery partners for the direct sale of ZEVs.'
