Orange EV raises a truckload of cash to make yard trucks less dinosaur-y

Sure, they aren’t as sexy as a Tesla, and they don’t get the press columns of long-haul trucking, but so-called yard trucks are an interesting subset of vehicles that benefit disproportionally from being electric. Orange EV just raised a truck-load of cash to electrify one of the easiest-to-electrify corners of the logistics pipelines: the trucks that are commonly used to move trailers and containers in distribution centers, plants, warehouses, rail intermodals, ports, and other facilities where goods movement is mission critical.

The company has been around for a hot minute. Based in Kansas City, MO, it launched its very first electric yard truck back in 2015 and has been innovating ever since.

“Orange EV’s mission is to deliver electric vehicles that are better than legacy diesel ones in every way — for the earth, people, and the business bottom line,” said Kurt Neutgens, Orange EV co-founder and CTO in a statement to TechCrunch. “With this funding, Orange EV will be able to further scale its impact through continued investment in manufacturing to meet the demand that is outstripping our current facilities, as well as advance R&D to develop and deliver other products, which will further improve our customers’ operations while providing them significant savings.”

It’s the perfect storm for EVs; the trucks have incredible torque, are quiet, don’t blast a bunch of diesel fumes in dockworkers’ faces, and need essentially no maintenance. There’s also no fear of range anxiety: The trucks spend most of their lives in a two-mile radius of home base, which means they can be charged overnight and on lunch breaks, and if it runs low on juice, you can cruise over to the charging station and get a top-up.

The company today announced it closed a $35 million round of funding led by S2G Ventures and CCI. The money will be used to support and accelerate the company’s growth.

Arrival slashes production targets to just 20 EV vans as part of restructuring

Arrival, the U.K.-based commercial EV startup turned publicly traded company, has lowered its delivery plans from 400 vehicles to 20 as it postpones development of its battery-electric buses and shifts gears to focus on vans.

The company, which reported Thursday widening losses for the second quarter, said it no longer expects to generate revenue in 2022.

“We are switching from the mode where we have two products, two shifts and two micro factories to the mode where it’s one factory, one shift, one product,” CEO Denis Sverdlov said during a call with analysts. “We believe that this opportunity to switch gives us better chances to be successful.”

Sverdlov’s comments confirm a Financial Times report last week citing unnamed sources that the company was shelving its electric bus and an electric vehicle designed in partnership with Uber. plans to focus on the van. Arrival revealed in May 2022 at a TechCrunch event the first prototype of its purpose-built electric vehicle for ride-hailing.

For the second-quarter, Arrival reported a loss of $89.6 million, compared with a loss of $56.2 million in the second quarter of 2021. The adjusted EBITDA loss for the period was $76.2 million, compared with a $41.2 million loss during the same period last year.

The company has faced several delays since going public in March 2021 through a $660 million SPAC deal with CIIG Merger. Production delays triggered a class-action lawsuit against the company, which now plans to open its Charlotte, North Carolina, factory next year.   

Arrival had initially expected to deliver between 400 and 600 vehicles in 2022.

“Originally we wanted to make many shifts to push the volumes for the end of the year,” Svedlov said. “We decided that strategically it’s better for us to spend cash, be much more careful and focus on delivering first vehicles in perfect condition to our customers, and then scale from that point.”

Last month, Arrival signaled plans to slash costs and cut as much as 30% of its workforce in an effort to protect the business from a challenging economic environment while meeting its production targets. The plan was designed to allow the company to meet its targets through late 2023 using the $500 million of cash it has on hard, the company said at the time.

Arrival ended the second quarter with about $513 million of cash and cash equivalents and said it began restructuring the business to reduce costs. The company also is aiming to raise money through a $300 million at-the-market offering.

Ralph Nader asks NHTSA to recall Tesla’s ‘dangerous and irresponsible’ FSD

Ralph Nader, a political and consumer advocate and former presidential candidate, has issued a statement calling Tesla’s “so-called” full self-driving (FSD) technology “one of the most dangerous and irresponsible actions by a car company in decades.”

Nader is calling on the National Highway Traffic Safety Administration (NHTSA) to use its safety recall authority to order that FSD technology be removed in every Tesla. Per CEO Elon Musk’s recent statements, that’s about 100,000 vehicles.

The author of the bestselling book “Unsafe at Any Speed,” which criticized the American auto industry, cited research that found FSD malfunctions every eight minutes. That research was published in January by The Dawn Project, an organization aiming to ban unsafe software from safety critical systems that put out a full-page ad in The New York Times slating Tesla’s FSD, which analyzed data from 21 YouTube videos of Tesla owners using FSD beta software.

“This nation should not allow this malfunctioning software which Tesla itself warns may do the ‘wrong thing at the worst time’ on the same streets where children walk to school,” wrote Nader. “Together we need to send an urgent message to the casualty-minded regulators that Americans must not be test dummies for a powerful, high-profile corporation and its celebrity CEO. No one is above the laws of manslaughter.”

Nader’s callout comes as Tesla is gearing up to release the next version of its FSD software, version 10.69, on August 20. Musk tweeted out the announcement, saying nothing about the next iteration’s capabilities other than: “This release will be big.” During Tesla’s Q2 earnings call, Musk also said Tesla would increase the price of the software and that the automaker was hoping to “solve full self-driving” by this year.

Really, Nader should be targeting Tesla’s Autopilot, as well. Tesla and Musk have been adamant in the past that FSD has not been responsible for any crashes or deaths. (However, a recent YouTube video from AI Addict shows a Tesla in FSD mode colliding with a bike lane barrier post.) Autopilot, on the other hand, has likely been the cause of several crashes. NHTSA is currently investigating 16 crashes in which Tesla owners were potentially engaging Autopilot and then crashed into stationary emergency vehicles, resulting in 15 injuries and one fatality. Since 2016, there have been 38 special investigations into crashes involving Tesla vehicles, of which 18 were fatal.

Other automakers have come out with similar ADAS technology, and based on NHTSA’s recent ADAS crash report, appear to have far fewer crashes. It’s difficult to compare how dangerous Tesla’s technology is in relation to its rivals, in part because there are far more ADAS-equipped Teslas on the road than any other vehicle.

NHTSA did not respond immediately for a request for comment.

In a pair of July 28 filings, the California Department of Motor Vehicles accused Tesla of false advertising to promote its Autopilot and FSD technologies — both of which are advanced driver assistance systems and do not provide full autonomous driving. While Tesla’s website states that “the currently enabled features require active driver supervision and do not make the vehicle autonomous,” the DMV told the Los Angeles Times that the disclaimer “contradicts the original untrue or misleading labels and claims, which is misleading, and does not cure the violation.”

The California DMV also said earlier this year that it was revisiting its approach to regulating Tesla’s autonomous vehicle technology, as the agency does with every other company that claims to pursue full self-driving and does public road testing. Tesla has gotten away without reporting crashes and system failures to the DMV for so long because its systems fall under the ADAS category, which requires a human driver must be present. However, after reviewing dozens of videos showing “dangerous use” of that technology — and such use is informed by the way Tesla and its CEO Elon Musk speak about the technology — the DMV decided to reevaluate.

This reevaluation is ongoing, and the DMV told TechCrunch it could not comment until it is complete. That said, based on the DMV’s most recent claims that Tesla is falsely advertising, Tesla could be facing revocation of its licenses to make or sell its cars in California, in the worst case. That probably won’t happen, but if it did, it would spell trouble for the EV maker. California is home to Tesla’s most loyal buyer base.

Musk has had a fraught relationship with the state ever since May 2020, when Alameda County ordered Tesla to shutter its Fremont factory to stop the spread of COVID. In October last year, Musk announced Tesla would be moving its headquarters to Austin, Texas.

The celebrity executive has also repeatedly underlined the importance of FSD to the company, saying in June that without it, Tesla is “worth basically zero.” It is likely based on the belief by many, including Nader, that FSD is not what it’s cracked up to be; Nader went on to tweet Wednesday that Tesla’s stock is vastly overvalued.

“Tesla and @elonmusk exposed the technological stagnation of the auto companies and broke ground with EVs and other climate-benign technologies,” tweeted Nader. “However, a fast moving company can not obscure wildly speculative stock valuation on top of a general stock market bubble that could implode on pension and mutual fund savings of millions of Americans. Fundamentals can’t be ignored.” 

Nikola taps its president for CEO post

Electric truck maker Nikola announced Wednesday that President Michael Lohscheller will become CEO on January 1.

Lohscheller, who will replace CEO Mark Russell upon his retirement, has joined the Nikola Board of Directors, effective immediately. He served as CEO of Opel and VinFast, as well as CFO at Volkswagen Group of America and Mitsubishi Motors Europe, before joining Nikola as President in March, according to his LinkedIn profile.

Since then, the company brought its long-delayed Tre battery-electric vehicle into series production and began piloting a hydrogen fuel cell version of the Tre with Total Transportation Services.

“In his six months since joining our company, Michael has continued to bring an increased sense of urgency, high level of accountability, improved lines of communication and accelerated decision-making to Nikola Motor,” Steve Girsky, Nikola’s Chairman of the Board, said in a statement.

Nikola’s stock price rose 5.9% on the news during pre-market trading Wednesday. The share price was flat as of 10 a.m. ET.

The startup has struggled since going public through a $3.3 billion merger with special purpose acquisition company VectolQ in June 2020.

After making headlines for its eye-popping $29 billion valuation, the company was slowed by a string of controversies stemming from its founder Trevor Milton, which resulted in his removal as CEO and a $125 million penalty to the U.S. Securities and Exchange Commission for deceiving investors.

The SEC said that Milton misled investors on numerous fronts including the company’s technological advancements and production capabilities. Milton was charged with criminal fraud.

Nikola reported Thursday a second-quarter net loss of $173 million, or 41 cents per share, on revenues of $18.1 million.

The company said it had produced 50 Nikola Tre BEVs in its Coolidge, Arizona, factory and that it remains on track to deliver between 300 and 500 of the trucks by the end of the year.

 

 

Ford locks in solar energy deal with DTE Energy

Ford said Wednesday it has reached a deal with DTE Energy to power its electricity supply in Michigan with clean energy, a step toward its goal to become carbon neutral by 2050.

The automaker’s deal with DTE, Michigan’s largest producer of renewable energy, will add 650 megawatts of new solar energy capacity in the state by 2025, allowing the carmaker to assemble each vehicle it makes there with renewable energy.

Ford called the deal the largest-ever renewable energy purchase from a utility in the U.S. The arrangement will help Ford decarbonize its operations and meet its sustainability goals, including a target to power all of its global facilities with renewable energy by 2035.

Ford said the purchase will help it cut its carbon dioxide emissions by up to 600,000 tons. Overall, Ford’s arrangement with DTE will increase Michigan’s solar capacity by 70%, according to the automaker.

The announcement comes one day after Ford said it will raise the price of its electric F-150 Lightning pickup truck between $6,000 and $8,500 for new orders.

“Due to significant material cost increases and other factors, Ford has adjusted MSRP starting with the opening of the next wave of F-150 Lightning orders,” a statement read.

The entry-level Lightning will now retail for $46,974, while the top-tier “Platinum Extended Range” version starts at $96,874. The price increase will not apply to customers who have already ordered a truck and are awaiting delivery.

Ford also said the truck’s standard range battery can now travel 240 miles, up from 230 miles, on a full charge.

Elon Musk sells nearly $7 billion in Tesla shares

Tesla CEO Elon Musk is at it again selling shares of his electric vehicle company, per a regulatory filings. Since Friday, the executive has sold 7.9 million shares, which totals about $6.9 billion. This is the first time Musk has sold shares in Tesla since April, when he disposed of 9.6 million shares, worth about $8.5 billion.

Musk, usually an avid tweeter, has been mum on social media as to why he’s shedding his stake in the company yet again. Over the last ten months, Musk has sold around $32 billion worth of stock in Tesla.

Tesla shares were down 2.44% today but are trading relatively flat in after-hours, suggesting the stock sales are yet to have an effect on Tesla’s share price. Tesla’s stock took a hit late last year when Musk sold off more than $16 billion worth of sales after polling his Twitter fans on whether he should trim his stake, a move that got him in hot water with the Securities and Exchange Commission.

When Musk sold stake back in April, TechCrunch mulled the possibility of the executive putting the money towards his $44 billion Twitter acquisition. Last month, Musk told Twitter he’s killing the deal because he believed the social media company to be misleading in its bot calculations. However, over the weekend, the executive waffled a bit, tweeting: “If Twitter simply provides their method of sampling 100 accounts and how they’re confirmed to be real, the deal should proceed on original terms. However, if it turns out that their SEC filings are materially false, then it should not.”

The recent insider trading could also have something to do with Tesla’s plans to issue a three-to-one stock split, which was approved by Tesla shareholders last week. We’ll keep an eye out for Musk buying back those shares on the cheap once the split goes through.

Tesla’s next gigafactory might be in Canada

While onstage at Tesla’s annual shareholder event, CEO Elon Musk hinted that the automaker would choose the location for a new gigafactory by the end of the year. Musk jokingly asked his fans where the company should build, and when a few yelled out “Canada!” Musk replied, “I’m half Canadian. Maybe I should.”

It seemed like a throwaway comment at the time, but a July lobbyist registration from Tesla reveals the company might actually have its eyes set on the U.S.’s neighbor to the north.

Tesla recently added an amendment to its registration with Ontario’s Office of the Integrity Commissioner that sets forth the automaker’s plans to engage with the Ontario government to identify opportunities for “industrial and/or advanced manufacturing facility.” To sweeten the deal, Tesla’s lobbyists propose such a facility could “increase the competitiveness of Ontario and its ability to attract capital investment.”

Tesla did not immediately respond to TechCrunch’s requests for comment.

Ontario may not need much of a push to welcome a Tesla gigafactory into its lands. The region already has a thriving automotive ecosystem that plays off its neighbor Detroit. Ford and General Motors already have existing plants there. In fact, in April, the Canadian government invested about $415 million into GM’s two new plants in Ontario, including one that will produce electric vehicles.

“By making Ontario a competitive business environment, including reducing the cost of doing business by $7 billion annually, we have attracted nearly $16 billion in electric vehicle investments in the last 20 months,” Vic Fedeli, minister of Ontario’s economic development, job creation and trade, said in a statement shared with TechCrunch. “We are building an end-to-end supply chain right here in Ontario, and expect to continue to see more companies from around the world looking to our province as a place to invest and grow.”

Musk said during the shareholder meeting last week that Tesla could ultimately have 10 to 12 gigafactories globally. Even though Tesla has opened gigafactories in Berlin and Shanghai, the U.S. still makes up for the vast majority of Tesla vehicle sales globally, so it makes sense the company might choose another North American location for its next factory — especially considering the headaches the Shanghai factory has endured, what with consistent lockdowns and factory line updates causing vehicle sales in China to fall.

It’s possible that Tesla is rushing to find locations to build batteries and vehicles closer to home after the Inflation Reduction Act was approved on Sunday by the U.S. Senate. The $430 billion bill could restrict automakers from using Chinese-made materials and require them to use North American-sourced battery components if they want to be eligible for consumer tax credits for EV purchases.

Ford raises F-150 Lightning prices across the board

Ford is raising the price of the F-150 Lightning, with increases ranging from $6,000 to $8,500, depending on the model and trim level. The entry-level “Pro” badged F-150 Lightning will now retail for $46,974, while the top-tier “Platinum Extended Range” version comes in at nearly $100,000.

Ford cites rising costs for materials, as well as “other factors” as the reasons behind the bump, and noted that the increase will only be valid for new orders and will not impact those who have already placed an order for one of the electric pickups and are waiting on delivery of their vehicle. If you had a reservation and were offered an order but declined to make a purchase because the specific trim you were looking for was out of stock, Ford says you’ll get “a private offer for use in upcoming waves.”

Orders have been on hold due to availability and high demand, but Ford says it’s announcing the price hike now in anticipation of reopening the ordering process so that those who have registered their interest with the system will be able to “make an informed decision around ordering a Lightning” — aka decide whether they’re cool forking over more cash.

Ford says that they’ve sold “over 4,400” of the all-electric trucks to date, since they began selling them officially in April this year.

BMW hedges its EV bet, appears poised to repeat mistakes of the past

For a while, it seemed like BMW had turned a corner with its EV strategy. Its i4 and iX have received stellar reviews, and this spring the company announced an all-electric platform, the Neue Klasse, which it said will underpin EV versions of the 3-series sedan and the X3 crossover starting in 2025. The company that had squandered its once-promising EV lead seemed poised for a comeback.

Seemed.

It’s increasingly clear that Neue Klasse isn’t going to be a dedicated EV platform, at least not in the way just about every other automaker conceives of one. “We could also imagine a hydrogen drivetrain for this new vehicle generation,” CEO Oliver Zipse said in last week’s earnings call.

If BMW follows through and makes the Neue Klasse accommodate both batteries and hydrogen, it’ll have created yet another compromise platform, a futon of automotive engineering that doesn’t excel at anything except making waffling board members happy.

The iconic Meyers Manx dune buggy makes it return as an EV

The Meyers Manx, the iconic 50-year-old dune buggy that’s been copied thousands of times, is officially making its return in 2023. But this time around, it’s electric.

The Meyers Manx 2.0, which debuted Monday at an event in Malibu, will launch thanks to venture capitalist Phillip Sarofim and famed automotive designer Freeman Thomas, say they are committed to bringing back the dune buggy that is intimately connected to California’s surf history.

“I think in some ways I’m, I’m connecting to my childhood,” Sarofim, the CEO and founder of Trousdale Ventures, the VC firm that purchased Meyers Manx from Bruce Meyers in 2020, told TechCrunch, “I think the Meyers Manx represents so much. It’s a symbol of, of fun, of purity, of simplicity, and it also represents 1960s California optimism, and we want to bring that back.”

The Meyers Manx 2.0: An electric dune buggy

Details are still sparse on the little machine. The tl;dr is that it looks a lot like the iconic dune buggy designed more than 50 years ago and the real change is what’s underneath.

“We wanted to make sure to try and keep the exact same footprint of the original vehicle dimensionally,” Sarofim said, “But, everything is different except the housing for the headlights. Those two round pieces are the only thing that remains the same. Everything else has been re-engineered.”

The Meyers Manx 2.0 will come with two different power options: a 20 kWh battery with around 150 miles of all-electric range or a 40 kWh battery with a company estimated 300 miles of range.

The power comes from lithium-ion pouch batteries with an integrated battery management system. It will weigh an estimated 1,500 pounds with the smaller battery and around 1,650 pounds with the larger one. A pair of rear-wheel-mounted electric motors should make the Manx 2.0 a blast to drive. The company says in its tests with the 40 kWh battery pack, the new vehicle will do 0 to 60 miles per hour in 4.5 seconds.

The company hasn’t released any pricing information, but it plans to only make 50 of these vehicles as 2023 models. More details will be available when pre-orders open after the official launch at The Quail Motorsports Gathering event in Carmel, California, later this month.

“A lot of new startups want to get big, fast, and we’re low volume,” Thomas said. “We’re starting off walking before we run. That’s the main reason we want to do the 50 vehicles is that those are going to become more like test drivers. These are people that we will have relationships with. We will work out all the bugs and make sure that it’s perfect. And then, slowly, we will begin ramping up. And I think that because of that, it’s going to be a little bit of an exclusive product in the beginning.”

Both Sarofim and Thomas did say that the Manx 2.0 will get over-the-air updates once they begin to get feedback from initial customers.

This isn’t the first time that the Meyers Manx has shown up with an electrified powertrain. Bruce Meyers built and showed off an electric prototype in 2014. And back in 2019, Volkswagen showed off a concept called the ID. Buggy that was based on Meyers Manx.

Not much is know about the where these new vehicles will be manufactured except that the company has partnered with a “U.S.-based manufacturing entity.” Trousdale, Sarofim’s VC firm, is a shareholder in Coreshell, a company that has scaled the process of coating the inside of an EV battery for industrial manufacturing and is also working with the reimagined Meyers Manx.

When pressed for details about their manufacturing partner, Sarofim stated, “Our manufacturing partnership is a non-exclusive one, and it’s not with a car maker per se. Yeah. So it is a very good relationship, a symbiotic one, a friendly one and we’re, we’re really excited. It allows us to get up to speed in a much faster way.”

The team behind Meyers Manx 2.0

Trousdale Ventures purchased the Meyers Manx, Inc. directly from the founder, Bruce Meyers in 2020, just a few months before he passed away at age 94 in 2021. He and Freeman Thomas, the designer behind iconic vehicles like the iconic Audi TT and the Volkswagen New Beetle (the one from 1997), met at the well-known and controversial Malibu Cars & Coffee.

Sarofim says he drove a Manx to the impromptu car show where Freeman approached him about the little dune buggy. Both Sarofim and Freeman are automotive enthusiasts, and Thomas said he asked Sarofim if he’d ever met Bruce Meyers. From there, the two visited Meyers in his California home, and the three of them became fast friends. Sarofim says that Meyers was in his 90s at the time.

“We spent a couple of hours just hanging out.” Sarofim said, “And Bruce said, you know, I think you all should buy my company. And I thought, I don’t know that I necessarily want to be in the car business. And then, a year had transpired and I called Freeman and I said, we have to do this. We have to do this. And we got together with Bruce and a week later, we, we owned the company.”

Manx has about 50 full-time employees currently, according to Thomas, who is the CEO and COO of Meyers Manx, today. “I have designers that are coming from Porsche, from Audi, from Volkswagen, that just wanna be part of Manx,” Thomas said. “In some funny way, we are becoming the “It” brand among designers.”

The target audience for the Manx 2.0 will be the wealthy with multiple homes and multiple cars. “What will be really compelling is that you could be able to leave it in your garage for months and months on end. If it’s at your vacation house and all of a sudden you come there, there’s no smells, there’s no, you know, oil dripping,” Thomas said. “All you do is go. It”s like your laptop, you open it up and it’s ready to go.”

Sarofim and Thomas both say that the Manx 2.0 won’t be the only vehicle you might see from the revitalized company, however. “We do have other vehicles coming that will be unveiled in the next, I mean, coming years, and we do intend to reach new customers and new audiences, and different use cases as well,” Sarofim said. “But you know, who is the ideal Meyers customer, I think is the real question. It’s just someone who loves cars and has this spark in their eye and dreams with optimism. I think that’s the customer. Yeah. Someone who has a love of adventure.”