The Short Cut: EV startups face sliding stocks, and more

We know, we know – you’ve been waiting all week for this moment. It’s Short Cut time! As usual, we’ve done the heavy lifting and got this week’s news you need to know about all lined up for you to devour, so scroll on down!

How tire-ing! EV tires aren’t so hot when it comes to maintenance

Looks like EVs have a hidden cost when it comes to their so called ‘low-cost’ maintenance. According to Forbes EV tires wear out quicker due to three main reasons: EVs pack more pounds than gas cars, energy efficient low noise tires that gift an EV more range and keep them silent aren’t that hardwearing. What’s more, there’s a large number of EV drivers that like to make use of the sporty side of their vehicle, which places additional wear on the tires.

But it’s not all bad news. The article suggests several ways in which an EV driver can preserve their tires, so check it out to find out how to make your tires go the distance.

EV tires wear out quicker, adding a hidden cost.

How Tata Motors took over India’s untapped EV market

To delve into the EV market, Tata Motors repurposed a shop floor in order to produce India’s first EV. A company that could initially only churn out eight SUVs a day has now gone up to 100, thanks to another nearby factory. With India’s high tariffs and government subsidies keeping the market mostly unexplored by foreign EV makers, Tata has worked to create an affordable EV out of an already existing model.

It's now working on a more aggressive plan, which aims to produce 10 new EV models by 2026. This has attracted investments of almost $1 billion from the US private equity firm TPG. The automaker also announced its intention to open an EV only plant, as well as its plans to modify combustion engine platforms in order to create EVs with larger batteries and longer range. Reuters discusses the automaker’s rise and the challenges it faces amidst a global shortage of semiconductors that is plaguing the EV industry. With the huge potential of India’s market at their fingertips, Tata Motors has a lot going for them, should these shortages not hold them back.

Biden’s billion-dollar batteries

Has a nice ring to it, doesn’t it? Well, it looks like the Biden administration has pressed go on the shift to EVs, efforts begin this coming Monday, May 9. The government is aiming to increase production of advanced batteries, in order to encourage a growth in EV sales, The New York Times reports. It’s also being marketed as a way of protecting US citizens from the up and downs of the global oil market – something which has become even more critical in the wake of the Russian invasion of Ukraine. The switch to clean energy would achieve energy independence.

However, it’s not all sunshine and unlimited batteries – the essential materials needed to create a battery such as lithium and various other minerals are located in Asia, with China controlling approximately 80% of the world’s processing and refining of those ingredients. This has provoked concerns amongst American officials, as switching out reliance on oil rich countries for more dependance on China is not viewed favorably. However, a lot of the plan’s funding will go to providing support for the mining, processing and recycling of critical minerals. Looks like the US has a busy year ahead of them, building batteries with their billions.

Flash in the pan? EV startups face falling stocks

Amazon and Ford have announced a combined loss of $12.3 billion over the last 3 months due to a price drop in EV maker Rivian’s stock, CNN reports. Since its initial public offering last year, the startup’s stock has fallen 75%. After originally being valued more than Ford and GM, now, its valued at half of that. The EV maker has only managed to produce 1,015 vehicles in 2021, falling short of 1,200 unit goal.

But it’s not just Rivian facing setbacks. Startups such as Faraday Future, Lordstown Motors and Electric Mile Solutions – all companies that went public in the past few years – have felt the burn and seen stocks drop. This ‘boom-and-bust’ cycle is taking down startups not just in the US, but in China as well. EV automaker Nio’s stocks fell 49% in 2022. Tesla has faced a 27% loss in stock but remains the one to beat. As ever, longevity in this new and competitive industry remains the hardest battle, and it remains to be seen who will make it to the top.

EV startups face falling stocks, caught in a ‘boom-and-bust’ cycle.

Most popular automaker at school: VW sells out of EVs

VW has sold out of EVs in Europe and the US, the Financial Times reports. This is in part due to the supply chain issues that have been following the EV industry around like a needy pet.

VW has sold over 99,000 EVs in the first three months of 2022, aiming to hit 700,000 in sales by the end of the year. However, its bid to catch up with Tesla has been slowed down, as production faces difficulty keeping up with its intended output. This goes for the automobile industry in general, as raw materials continue to rise in price and component shortages worsen.