Car Product Managers Prepare To Go Electric

The future is coming, will car product managers be ready?
The future is coming, will car product managers be ready?
Image Credit: American Tobacco Campus

If you are a product manager for a car, then you have a pretty well-defined life. Every couple of years, you work with your team to create an updated version of your product, work to get it manufactured, do the marketing, and then go do battle with all of the other car product manager. However, now things are starting to change. The way that cars are going to be made in the future will be different from the way that they are being made today. This means that the job of a car product manager is about to be turned on its head. Will they be ready?

Change Is Coming

Product managers know that a barrage of new plug-in hybrid and battery-electric SUV and truck models, including electrified versions of popular nameplates like the Jeep Wrangler and Ford F-150 pickup, are expected to hit U.S. dealerships in the next few years. Even General Motors is set to revive the Hummer nameplate as an electric pickup truck. Keep in mind that this was a onetime symbol of gas-guzzling excess. Product managers are trying to better reflect consumer preferences, which in recent years have tilted heavily toward taller, more versatile vehicles such as pickups and SUVs. Product managers realize that these models typically command higher profits than lower-margin sedans, helping product managers better absorb the still-expensive battery costs of electric vehicles.

Customers shift to bigger electric vehicles is also being driven by improved EV technology, which is enabling car companies to build more powerful battery packs that can move larger vehicles and provide more travel range on a single charge. Product managers realize that if you really want people to pay attention to electrics, you need to be playing where they’re interested. By next year, shoppers will have 78 plug-in hybrid and battery-electric SUVs to choose from, up from 38 last year and just four five years ago. Just to make things even more competitive analysts expect about a half-dozen battery-electric pickups to hit the market within the next two years. New larger vehicle offerings will range from plug-in hybrids which are vehicles that can run on electricity but also have gasoline engines to fully electric models.

It’s not just the run-of-the-mill cars that are made for the masses that are going the way of electrification but also the European luxury brands like Audi and Jaguar. These firms have been unveiling new electric SUVs in the U.S. that have more than 200 miles of range in the past few years. U.S. performance cars are also going electric. Ford has announced that it will begin selling its battery-electric Mustang Mach-E SUV. The Ford product managers are investing $700 million to produce hybrid and electric versions of its F-150 pickup, the best-selling vehicle line in the U.S. Also, Toyota will be rolling out a plug-in version of its best-selling RAV4 compact SUV.

The Future Is Electric

For years, most product managers largely built electric vehicles as so-called compliance cars, or fuel-saving models that could help them meet stricter regulations on tailpipe emissions. Customers who were looking to buy an electrified model were mostly limited to smaller vehicles like the Chevrolet Bolt and Nissan Leaf. Product managers realize that those offerings have failed to gain broader appeal. Sales of plug-in models accounted for only about 2.4% of the overall U.S. market last year. Product managers are now realizing that if they want to stimulate broader demand for these vehicles they are going to have to move beyond selling them only on environmental benefits. It is no longer possible to just rely on government subsidies and incentives. Product managers need to be proactive.

With the industry pledging more than $225 billion globally toward building more electric models in two years, product managers are eager to see a return and are looking to their reliable profit generators – SUVs and pickups – to provide it. However, product managers need to understand that there are risks. It still isn’t clear whether customer demand will materialize or if product managers can sell enough vehicles to justify the costs. Product managers need to keep in mind that consumer appetite for electrified vehicles in the past has been limited.

What has to be realized is that electric and plug-in models are still far more expensive than gas-engine options. They can cost customers anywhere from around $6,000 to $20,000 more, depending on range and vehicle type. There are federal and state tax credits that can be used to narrow the price gap, but the difference still can be substantial on many larger models. And people often buy large SUVs and trucks for towing. However, they may have to make compromises with an electrified model, because hauling is likely to deplete the vehicle’s range. And the new electric cars will likely have to deal with many of the same challenges electric cars have faced in the past, such as drivers with little electrified-car experience worrying about not finding a place to plug in or getting stranded without enough battery charge.

What All Of This Means For You

Car product managers have had to deal with a great deal of competition for a very long time. The good news for them has been that cars themselves have not changed all that much. However, it is starting to look like that is getting ready to change. Electric cars that used to be just a curiosity are now starting to go mainstream. When this happens, product managers are going to have to adjust to the new reality. What do they need to do?

Product managers have been producing electric cars for a while. They’ve been creating them in order to balance out the emissions that their gas-powered cars produce so that they can meet government regulations. However, product managers are now viewing larger electric vehicles as potential sources of new revenue. Building larger electric cars is being made possible by improved EV technology that allows larger cars to be built that will be able to travel longer distances. Not only are ordinary cars going electric, but also performance cars from European car companies and U.S. companies also. There is a fundamental question as to if consumers are going to want to purchase the new cars. Additional challenges are that electric vehicles cost more and may not be able to easily tow heavy loads.

It’s pretty clear that the world in which we live is changing. Electric cars are a new thing, but to consumers they are starting to make more and more sense. What was once a novelty will soon become a real option when people go shopping for their next car. Product managers need to understand that this is going to be a new experience for most people. That means that their questions about switching to an electric vehicle are going to have to be answered before they are going to feel comfortable buying one of these cars. If we take the time to work with our new electric car customers, then we can make this new breed of electric car a big success.


– Dr. Jim Anderson Blue Elephant Consulting –
Your Source For Real World Product Management Skills™


Question For You: How can product managers best answer customer’s questions about electric cars?


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What We’ll Be Talking About Next Time

I’m pretty sure that even if you didn’t know it, there are more Subway sandwich restaurants out there than there are McDonald’s restaurants. With the chain being that large, you would expect that they must be doing quite well. In the past that has been the story. Much of what the Subway product managers have been spending their time doing has been looking for ways that they can power the chain’s expansion. However, lately things have changed. The Subway product mangers now have a new challenge on their hands.

The post Car Product Managers Prepare To Go Electric appeared first on The Accidental Product Manager.

Chinese EVs have yet to succeed in Europe. The Middle East could be different

For Chinese electric car manufacturers, Europe has long been a priority destination for international expansion. With its affluence, environmental consciousness, and relatively friendly attitude towards China, the continent has attracted established players like BYD as well as emerging brands like Nio and Xpeng.

Despite their ambitious plans, Chinese EV makers yet to achieve the level of success they had hoped for in Europe. In 2022, BYD held a mere 0.3% market share across 14 major European markets, while Xpeng and Nio, which both entered Europe in 2021, each accounted for 0.1% of the region, according to auto data tracking site EU-EVs. Western carmakers continue to dominate the market, with Tesla enjoying a 15% share, Volkswagen with 11.3%, and BMW with 6.2%.

It’s too soon to say if China’s ambitious EV makers will ever establish a strong foothold in Europe, but the early tepid performance is driving them to hedge their bets. They are setting their sights on a region halfway between Europe and China — the Middle East.

As countries around the world accelerate efforts to phase out fossil fuels, the oil-rich countries in the Middle East are also joining the fray to electrify the auto industry. In a controversial move, the United Arab Emirates, a country known for its abundant oil reserves, will host the 2023 United Nations-sponsored climate talks, more commonly known as COP28.

“Oil is relatively cheap [in the Gulf countries] but can be exported for a big profit margin. The money made from export can then go towards subsidizing the domestic EV industry,” Emma Meng, an auto influencer with over one million followers on Weibo who is also an EV consultant based mostly in the UAE, explained in an interview with TechCrunch.

Chinese electric vehicle manufacturers are taking note of these developments. The Middle East, with an EV market that is still nascent, offers a wealth of potential for growth. But the same challenges that Chinese EV makers have faced in Europe will arise once again in this land of opportunities.

Pushed to go beyond China

China’s EV makers feel an increasing urgency to expand overseas as consumer demand weakens amid an economic slowdown and Tesla’s aggressive price cuts heighten domestic competition.

The price war started by the American titan has triggered some 40 Chinese EV brands to slash prices. Even Nio, which prides itself on its premium brand image and pledged not to join the price war, gave in eventually.

“The Chinese market is too cut-throat. EV makers have no choice but to get out,” suggested Meng.

The momentum in Europe is driving Chinese EV makers to look elsewhere. Meanwhile, the increasing level of government-level interactions between China and the Middle East is offering reassurance for automakers to invest in the region.

In early December, President Xi Jinping traveled to Saudi Arabia, marking one of his first trips abroad since China closed its borders to control the COVID-19 pandemic. His meeting with Crown Prince Mohammed bin Salman was widely viewed as China’s attempt to assert more influence in the region. In June, Saudi Arabia signed a historic $5.6 billion oil deal with China, further solidifying the economic ties between the two countries.

Almost all major Chinese EV makers have now developed plans for expansion into the Middle East, according to Meng. For carmakers already present in Europe, the region represents a natural next step as their European Union homologation makes it much easier for the companies to obtain certification for the Middle East. The Middle East also serves as a nice springboard for expansion into North Africa, which shares similarities in terms of religion, language, and climate, with vast desert landscapes and sparse rainfall, Meng suggested.

Win-win partnership

Having Chinese EVs in the Middle East could potentially create a mutually beneficial situation. To establish the necessary network to power EVs, the oil-rich nations need to seek external know-how. It come down to two options.

“There are only two types of EV companies in the world: Tesla, or Chinese EV makers,” said Meng. China’s reputation for infrastructure development makes it an ideal candidate to help build facilities like charging stations.

According to one industry report, demand for EVs in the UAE is projected to grow by an annual rate of 30% between 2022 and 2028, with Dubai alone expected to require 70,000 charging points by 2030.

Meng’s consulting firm is one of many Chinese businesses tapping the region’s thirst for EV expertise. In a joint venture with Shenzhen Bus Group, it won a bid to assist in the electrification of Abu Dhabi’s public transport system through the deployment of electric taxis and buses.

Slowed down by red tape

Despite the eagerness of Chinese manufacturers to enter the Middle East, only BYD has managed to open stores in the region thus far. This slow pace is partly attributed to the challenging process of obtaining the Gulf Cooperation Council (GCC) certification, which is partially needed to demonstrate that the cars can withstand the region’s harsh weather conditions.

Timing is crucial for getting the approval to sell in the GCC. As Meng pointed out, there is a brief period during the summer when EVs can be tested to show they could perform well in hot weather. If this window is missed, manufacturers would need to wait another year.

Nio recently scored a significant investment of $738.5 million from the Abu Dhabi government. However, there has been no indication of when the company can begin selling in the country.

Like other governments, the Middle East expects foreign firms to play a role in driving the local economy. But setting up, say, production on the foreign land could undermine Chinese manufacturers’ competitiveness — a complete supply chain and affordable labor at home that lead to lower prices.

Chinese EVs exported to Europe and the Middle East are already considerably more expensive than their domestic prices. BYD’s popular ATTO3 (known in China as Yuan Plus) model is priced at roughly twice as much in the UAE as in China mostly due to steep logistics and homologation costs, according to Meng.

Wait times for Chinese EVs are also lengthy. Given the relatively small export volume, manufacturers are still prioritizing their domestic models. Long wait times, coupled with the absence of an established brand reputation and less competitive pricing, undercut Chinese EV cars’ appeal to their foreign buyers. The upcoming year will be key to determine if the Chinese carmakers will stand a better chance of success in the region.

Chinese EVs have yet to succeed in Europe. The Middle East could be different by Rita Liao originally published on TechCrunch

Kate is a new car maker focused on micro-cars for everyday use

Meet Kate, a French company that wants to create a tiny car that you can use for your daily commute and various errands. In addition to CEO Matthias Goldenberg and CTO Pierre Escrieut, Kate is also co-founded by Thibaud Elzière, the serial entrepreneur behind Hexa, the startup studio formerly known as eFounders.

While Kate is a car manufacturer at heart, it doesn’t want to produce big SUVs with sophisticated entertainment systems. The company wants to change mobility by producing the most minimalistic electric car possible.

Instead of starting with the vehicle, Kate is starting with the use case. “We want to sell this to people who really need a vehicle, people who live on the outskirts, in mid-sized cities or even in the countryside,” Kate CEO Matthias Goldenberg told me.

In Europe, people moving from A to B use a large vehicle — like a regular car — for 84% of their trips. It represents 11% of the CO2 emissions. And yet, 98% of trips are shorter than 80 kilometers (that’s 50 miles).

That’s why it doesn’t make sense to use a car with extremely comfy seats and long-range batteries if you’re just dropping your kid at school and then heading to the office in the small city nearby. You can always rent a car for your next vacation.

But creating a new car manufacturer from scratch isn’t that easy. That’s why Kate isn’t exactly a “new company”. Thibaud Elzière invested in a French company called NOSMOKE that produces electric vehicles inspired by th Mini Moke.

Kate then straight up acquired NOSMOKE to reuse some of the company’s work on a new type of vehicle. Instead of producing a leisure car that you would park next to your beach house, Kate wants to create a mass-market vehicle.

This is what the Kate Original looks like:

The Kate Original. Image Credits: Kate

On paper, Kate’s upcoming vehicle, the K1, will be an L7e vehicle — a heavy quadricycle. There will be four seats and it will reach a top speed of 90km/h (56mph). You will be able to drive it with a B1 driving license in France, which you can get at the age of 16 or later.

“With the K1, we want to have a vehicle that sits right in the no-go zone between the Citroën Ami that costs €8,000 and the Renault Zoe that costs around €25,000 to €30,000,” Goldenberg said.

Kate is targeting an entry price at around €15,000 with a battery range of 200 kilometers (124 miles). Of course, there will be models with better engines and batteries that will cost more than that.

When it comes to design, Kate wants to manufacture a car that is as modular and durable as possible. There will be some connectivity components so that the company can identify issues remotely.

But the idea is that you should be able to keep your Kate K1 for years and years. There will be hardware and software updates, but the car should remain usable for a long time even if you don’t change any component. For instance, Kate has opted for LFP batteries (with lithium, iron and phosphate) so that it offers a considerably longer cycle life.

The Kate K1. Image Credits: Kate

When it comes to the entertainment system, there will be some basic software features in the car. You will be able to play some music or get some directions. But if you want better driving directions or if you want to listen to your own podcasts, you will have to rely on your smartphone.

“The smartphone has to be at the center of the experience but you should also be able to drive the car if you’re out of battery,” Goldenberg said.

Last year, NOSMOKE/Kate produced nearly 200 vehicles. This year, the company is updating NOSMOKE’s car and calling it the Kate Original. “Our goal is that we should produce four times more vehicles every year. In 5 years, we will jump from 200 vehicles per year to 200 vehicles per day,” Goldenberg said.

Kate wants to properly introduce the K1 later this year and start selling it in 2024. In other words, the company has ambitious goals and is targeting an unproven market. But given the success of the Citroën Ami in France with wealthy high schoolers in the French countryside, there could be an even bigger opportunity with tiny cars for adults.

The Kate Original. Image Credits: Kate

Kate is a new car maker focused on micro-cars for everyday use by Romain Dillet originally published on TechCrunch

Panasonic considers Oklahoma for next EV battery factory

Panasonic is eyeing Oklahoma as the home for its next lithium-ion battery plant, according to a report Friday by the Wall Street Journal.

The proposed venture, which is expected to supply Tesla with a high-capacity, range-boosting battery, is part of a movement to bring auto manufacturing onshore as car companies and suppliers try to mitigate inflation, geopolitical conflict and short supply of the raw materials required to make electric vehicles.

TechCrunch is seeking independent confirmation and will update if more information becomes available.

Panasonic is working on a battery expected to increase energy capacity fivefold, boost range by more than 15% and cut production costs.

In July, the Japanese electronics maker announced plans to build a $4 billion battery plant in Kansas that will manufacture and supply lithium-ion batteries to EV makers. That project, which represents the largest economic development project in Kansas history, is slated to be larger than the Gigafactory it operates with Tesla in Sparks, Nevada, which is already one of the largest lithium-ion battery factories in the world.

Automotive manufacturers and suppliers have announced more than $38 billion in investment through 2026 to boost battery production in the U.S., according to AlixPartners. Those projects, which won’t begin production until mid-decade, include the largest-ever economic development projects in North Carolina and Georgia. A number of other EV plants dot southern and Plains states such as Tennessee and Oklahoma.

Toyota’s first U.S. battery factory — the $1.3 billion plant near Greensboro, North Carolina ­— is expected to open in 2025. Hyundai is investing $5.5 billion to build an EV and battery manufacturing facility in Georgia. Rivian is also building a $5 billion factory in Georgia and newcomer Canoo, which moved its headquarters to Bentonville, Arkansas, has plans to build an EV factory in Oklahoma. VW’s all-electric ID.4 is now being assembled at its Chattanooga, Tennessee plant.

Shortening the supply chain will ultimately help manufacturers control costs and reduce dependence on foreign sources for raw materials. The Inflation Reduction Act passed by Congress this month is expected to accelerate the development of the domestic EV industry by providing manufacturers with $40 billion in tax credits.

2023 Mercedes-Benz EQS SUV begins production in Alabama

Mercedes-Benz began production of its first battery-electric SUV for the U.S. market on Thursday, fronting a movement expected to bring auto manufacturing onshore over the next decade.

The 2023 Mercedes-Benz EQS SUV will be made at the automaker’s plant in Tuscaloosa, Alabama, using batteries supplied by a battery factory it opened nearby in Bibb County in April.

Spurred by inflation, geopolitical conflict and volatile supply for materials, global automakers have begun large-scale efforts to move operations to the U.S. The Inflation Reduction Act passed by Congress this month intends to turbocharge the growth by providing manufacturers with $40 billion in tax credits and requiring that EVs eligible for tax credits be made with more American-made parts.

So far, car companies and suppliers have announced more than $38 billion in investment through 2026 to boost battery production in the U.S., according to AlixPartners. Major projects include Panasonic’s $4 billion battery plant in Kansas, which is slated to be one of the largest lithium-ion battery factories in the world, and Hyundai’s $5.5 billion EV and battery manufacturing facility in Georgia.

The five-passenger EQS SUV is based on Mercedes’ largest utility vehicle, the GLS, and underpinned by the same modular architecture used for Mercedes’ EQS flagship and EQE midsize sedans. Using a common platform allows the automaker to scale operations quickly.

An optional third row boosts the SUV’s seating capacity to seven, making the EQS SUV one of the largest fully electric utility vehicles in the popular full-size utility vehicle category. It features the MBUX Hyperscreen, a three-screen system that merges under scratch-resistant glass to appear as a single, 56-inch display.

The SUV will come in two flavors: the 335-horsepower EQS 450+ base model and a high-performance EQS 580 4MATIC version that achieves 536 horsepower. It can travel more than 372 miles on a full battery charge, according to WLTP estimates.

Pricing has not been announced.

Ford reopens order bank and raises prices for 2023 Mustang Mach-E

Ford began taking reservations for its 2023 Mustang Mach-E on Thursday after a four-month hiatus due to short supply.

The automaker also boosted the battery-electric SUV’s range and upped the price amid economic headwinds such as inflation and rising costs for battery materials. Ford closed the order bank for the 2022 model year last spring when a global semiconductor shortage stymied production.

The new pricing, which goes into effect Thursday, is “due to significant material cost increases, continued strain on key supply chains, and rapidly evolving market conditions, and will continue to monitor pricing across the model year,” the company said in a statement.

Pricing for new orders will start at $46,895 for the rear-wheel-drive base trim with standard range (about a 7% increase) and just below $70,000 for the top-of-the-line GT Extended Range edition.

The Mach-E SUV’s Premium models with the Extended Range battery will be able to travel 290 miles on a fully charged battery, 13 miles longer than the outgoing model.

Ford is also adding its Co-Pilot360 Driver Assist Technology as a standard safety feature. The software will enable customers to receive future over-the-air updates for its Advanced Driver Assistance Systems (ADAS), according to Marin Gjaja, chief customer officer for Ford’s Model e division.

The automaker, which aims to sell more than 2 million EVs annually by 2026, is investing tens of billions of dollars to boost its production capacity worldwide. Ford said Monday it plans to lay off about 3,000 salary and contract workers to manage costs.

“We are eliminating work, as well as reorganizing and simplifying functions throughout the business,” Executive Chairman Bill Ford and CEO Jim Farley wrote in a letter to employees.

Earlier this month, Ford raised the price of its F-150 Lightning battery-electric pickup truck with increases ranging between $6,000 to $8,500 depending on the trim. The 2023 Lightning will start at $46,974 and top out at nearly six figures.

 

Tesla doesn’t need to hit the panic button over China heat wave disruptions just yet

Some parts of China are suffering from record high temperatures in the past few weeks, prompting local governments to halt industrial power use, including those of battery plants.

When news reaches the West, it generates fear-mongering headlines like “China heat wave shuts Tesla suppliers” which have likely rattled investors (because Tesla is all we care about, right?). But is the EV giant really suffering from China’s scorching heat?

First off, we need to look at which factories are affected. Lithium battery giant CATL is among the companies that have been ordered to shut down production in the landlocked province of Sichuan, according to a local media report. The pause, which lasts from August 15 to 20, is part of the province’s effort to ration electricity as it suffers from a devastating drought and heat wave.

While CATL, a major battery supplier to Tesla, might have trouble fulfilling some orders for customers, there’s no indication that Tesla is the one to bear the cost. For one, CATL has production plants all over China, from Guangdong, Jiangsu to Shanghai, so it’s unlikely that a temporary, regional rest — even though six days may seem long in the auto industry — will collapse the multi-billion business’ well-oiled supply chain.

Suppliers are also more likely to prioritize demand coming from Tesla because of its reputation and sheer volume. The American firm was the third-best-selling electric carmaker in China in the first half of 2021, according to an auto industry association.

“In China, Tesla enjoys a privilege just like Apple with all the manufacturers clamoring to be its suppliers. Even if production is restricted, it’s very likely that suppliers will prioritize Tesla’s orders while putting others’ on hold,” a Tesla parts supplier told TechCrunch.

The supply chains for Tesla and its local EV rivals like Xpeng and Nio are concentrated in manufacturing hubs around the Pearl River Delta, which include megacities like Guangzhou and Shenzhen, as well as the Yangtze Delta, which is home to Tesla’s Gigafactory in Shanghai and scores of chip makers around Suzhou, an employee at a Chinese EV startup pointed out to us.

Shanghai has been a victim of China’s recent heat wave, though there are no signs that the weather is stopping production at Gigafactory yet.

Shanghai already had its tough times in spring when a two-month-long COVID-19 outbreak forced Gigafactory to halt production twice.

Precisely due to these sporadic COVID-induced shutdowns over the past two years, “suppliers have become a lot more flexible,” the Tesla supplier said. “Many large manufacturers are stocking up on supplies to create a buffer for absorbing COVID shocks.”

Lastly, it’s worth noting that China is gathering steam to recover its sluggish economy at all costs. And it’s likely that industries that have been designated as the state planner’s top priorities, such as the EV sector, will receive more support when resources are limited.

As the heat wave tests the country’s ability to keep its manufacturing running, vice premier Hang Zheng highlighted “the importance of the energy and power supply for social and economic stability.”

“The country will also beef up policy support and take multi-pronged measures to help related enterprises address difficulties,” Han added.

GM is launching an online EV service to educate and woo consumers

General Motors launched a program Monday to educate car shoppers on electric vehicles and target first-time buyers as the automaker searches for ways to catch up to and outpace rival Tesla.

The automakers hopes EV Live, a digital platform that connects shoppers with EV specialists, will speed EV adoption and create a larger market for its new battery-electric models, including the just-launched Chevrolet Blazer SS. Available seven days a week, EV Live provides real-time answers on EV-related questions such as how to use a public charging network or install a home charging station.

Addressing “common misconceptions about EVs will accelerate widespread EV adoption,” said Hoss Hassani, GM vice president of EV Ecosystem.

Users can learn more about EV technology, sustainability and mobile apps through one-on-one live video tours, where the specialist can hear but not see the user. GM said it plans to add group tours and pre-recorded sessions later this year.

U.S. sales of new EVs rose 13%, to 196,788 units, between April and June 2022, compared with the first three months of the year, according to Cox Automotive. However, a lack of education around battery-electric cars, trucks and SUVs remains a barrier to adoption, according to a Consumer Reports survey released this month. American drivers surveyed reported confusion over how EVs work, charge their batteries and unlock tax incentives.

“EV Live lets us meet people where they are and have a real conversation about electrification,” Hassani said. “We’re selling the EV experience, rather than specific EVs.”

EV Live is among a range of initiatives the automaker announced this summer to supplement its $750 million investment in charging infrastructure. In July, GM said it plans to partner with Pilot Flying J to build out a national DC fast-charging network for EVs.

The automaker said in June it will equip its battery-electric models with “Plug and Charge” capability to help standardize public charging. Charging logistics is the top barrier to purchasing or leasing an EV, with 61% of drivers surveyed reported concern, according to Consumer Reports.

Elon Musk discloses that Tesla owns Dogecoin, but how much does it have?

Despite announcing that Tesla had sold 75% of its Bitcoin holdings in Q2, CEO Elon Musk disclosed in a quarterly investor call that the company also held Dogecoin and had not sold any of those holdings.

“We have not sold any of our Dogecoin; we still have it,” Musk said in the call.

Musk has detailed in the past that he personally owns Dogecoin but has not indicated that Tesla does, though the electric car company has been accepting Doge payments for some merchandise on their website. It’s unclear whether the company has simply been holding on to the tokens used for merch purchases or has made dedicated buys of the dog-themed “joke” cryptocurrency that Musk has repeatedly voiced his support for on Twitter.

The company disclosed that it currently owns $218 million worth of digital assets after selling $963 million worth of Bitcoin. The bulk of that $218 million is likely its remaining Bitcoin.

Tesla reportedly had around 42,000 Bitcoin heading into the second quarter, so after selling 75% of them, it should have had around 10,500 at the end of the quarter. Now, to determine exactly how much of that total holding is Bitcoin, we’d have to know exactly when the snapshot was taken. It was assumedly taken sometime the last day of June when fiscal Q2 ended, so 1 Bitcoin would have been trading for between $18,750 and $20,300 throughout the day, which at 10,500 coins would mean that around $197 million to $213 million of its total “digital assets” would be in Bitcoin.

That napkin math leaves a much smaller amount of room left for Dogecoin holdings, though perhaps still a healthy amount to have been made solely on merchandise sales. Tesla has not disclosed holding any major cryptocurrencies other than Bitcoin and, now, Dogecoin.

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Tesla dumped 75% of its Bitcoin holdings

Elon Musk apparently isn’t trying to hodl Tesla’s bitcoin during a crypto winter.

During the company’s Q2 earnings report, the electric car company revealed it has sold 75% of its Bitcoin holdings this quarter. The company appears to have lost around $150 million on its bet in the cryptocurrency since its 2021 purchase, selling the coins for $963 million.

Tesla said the value of its remaining “digital assets” is $218 million.

In February of last year, the company announced it had purchased $1.5 billion worth of the cryptocurrency with its balance sheet capital and furthermore that they would soon accept Bitcoin as payment for its vehicles. That announcement sent the crypto markets into a frenzy driving a number of cryptocurrency prices up and cementing Musk as a de facto crypto leader. Later, when he suddenly announced that they were abandoning plans to accept crypto payments, much of that goodwill with the community was reversed.

The company’s selloff comes after a steep decline in the price of cryptocurrencies across the board, including both Bitcoin and Dogecoin, which Musk has personally supported in his social media postings and in his position as CEO of Tesla.

In an earnings call, Musk said the reason for the sale was a desire to maximize cash positions during the uncertainty of China’s COVID lockdowns. He also noted that Tesla currently also owns Dogecoin, but he did not specify how much.

“We are certainly open to increasing bitcoin holdings in future. So this should not be taken as some verdict on Bitcoin. It’s just that we were concerned about overall liquidity for the company given COVID shutdowns in China and we have not sold any of our Dogecoin, we still have it,” Musk said.

The company’s Q2 earnings report, which beat expectations with $2.26 billion in profit, didn’t affect the stock price much at the time of writing in after-hours trading.

Rebecca Bellan contributed to reporting.

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