EV adoption sentiments, Rivan and Lucid Q1 earnings, Tesla Autopilot under more scrutiny

Hey everyone. Before we get into today’s daily roundup, I wanted to share more about a really interesting LinkedIn post from a GM recruiter circulating online.

GM Talent Sourcing Strategist Laura del Amo put out a call on her profile for Tesla interns affected by downsizing to potentially join the GM team. Sounds like a great chance for students and graduates to get their foot in the door.

—CDG

1. Dealers share future EV adoption sentiments

Top line: Car buyer interest in EVs is very different from region to region, while far more car buyers across the U.S. are more likely to be interested in a plug-in hybrid, according to a new report.

Setting the stage: Feedback from over 250 dealership leaders across the country was gathered and analyzed to better understand the current sentiment about the future of EV adoption. 

Nearly half of the dealers surveyed are located in rural areas, 15% reside in urban areas, and 36% are in suburban locations. The vast majority of these dealers sell anywhere from less than 50 to 250 units every month and have 1 to 10 rooftops.

By the numbers: 

• 55% of West Coast (WA, OR, HI, AK, CA) dealers said their customers had a modest to extremely high interest in EVs.

• 38% of New England (MA, CT, ME, NH, VT) dealers said their customers felt the same. 

• Dealers from the West South Central (OK, LA, TX, AR) states said only 3% of their car buyers felt this way.
  

• Less than 25% of dealers from all other regions of the U.S. said their car buyers had a modest to extremely high interest in EVs.

• On the flip side, dealers across every region say at least 40% of their customers are either modestly or extremely interested in plug-in hybrid vehicles

• New England had the most amount of customers interested in a plug-in hybrid at 77%, according to dealers.

Why it matters: EV adoption in the U.S. will likely continue to be uneven for the foreseeable future. Until EVs have the same range, full-up time, and price comparable to gas-powered cars, hybrids and plug-in hybrids appear to be the way forward for most automakers.

Key background: In April, Ford announced it was delaying the release of its upcoming electric SUVs by two years while working on expanding its hybrid offerings across its North American lineup by 2030. Hyundai made a similar announcement for its Metaplant America EV hub near Savannah, GA. While these OEMs aren’t abandoning EVs altogether, they recognize the increasing importance of offering a diverse portfolio of vehicles.

2. Rivian, Lucid post losses in Q1

Lucid Motors released its Q1 2024 results, showing some progress in deliveries and revenue, building momentum ahead of its Gravity SUV launch. However, operational losses are still substantial. 

Deliveries inch up: Lucid delivered a record 1,967 Air sedans in Q1, a 13% increase from Q4 2023. However, production dipped to 1,727 units compared to Q4 2023 (down 27%). Lucid also confirmed its full-year guidance to produce roughly 9,000 vehicles.

Modest financial gains: Revenue reached $172.7 million, up from $149.4 million year-over-year. Losses narrowed slightly to $729.9 million (down from $772.2 million) and net losses to $680.9 million (down from $779.5 million).

Cash cushion: A recent $1 billion investment from Saudi Public Investment Fund (PIF) affiliate Ayar Third Investment Co keeps Lucid liquid with roughly $5.03 billion in hand.

What it means: Lucid's growth is slow but steady. While not setting the world on fire, the EV maker is playing the long game. Time will tell if the upcoming Gravity SUV will be a game-changer for sales.

Rivian's first-quarter results were also a mixed bag. Revenue hit a record $1.2 billion, but a hefty $1.45 billion loss showed that the EV’s cost-cutting measures needed work.

Earnings snapshot:

• Revenue: $1.2 billion (up 82% year-over-year)

• Net Loss: $1.45 billion

• Production: 13,980 vehicles (down 3,561 units from Q4)

• Deliveries: 13,588 vehicles (down 384 units from Q4)

Factory upgrades: Backed by a significant $827 million state incentive package, Rivian aims to improve efficiency and ultimately reduce per-unit production costs at its Illinois factory. 

R2 SUV production: The decision to shift R2 SUV production back to Illinois from Georgia will save Rivian a cool $2.25 billion and is expected to expedite the launch of future models.

Expanding the Rivian Adventure Network: The automaker also plans to open its charging network to other EVs which could be a future profit driver.

Big picture: Both Rivian and Lucid are still losing thousands on every vehicle it produces and will need to trim inefficiencies and increase volume as well as production capacity to stay competitive long-term.

3. Safety concerns linger after Tesla’s Autopilot recall

The National Highway Traffic Safety Administration (NHTSA) is cranking up the heat on Tesla, demanding answers about its Autopilot driver assistance system following a December 2023 recall.

• In December 2023, Tesla voluntarily recalled (over-the-air update) roughly 2 million vehicles in the U.S. equipped with Autopilot.
  

• The goal was to improve Tesla's driver-engagement systems, which monitor if drivers are using Autopilot features safely (like traffic-aware cruise control).

Zooming out: Despite the recall, at least 20 Tesla crashes potentially involving Autopilot have occurred since December.

• This follows a wider NHTSA investigation (January 2018 to August 2023) that linked Autopilot safety issues to at least 467 crashes and 14 deaths.
  

• Investigators found drivers weren't adequately engaged and that Autopilot warnings weren't effective in keeping them focused on the road.

Auto regulators step in: The NHTSA has set a July 1 for Tesla. If the EV maker doesn’t comply, it could face fines of up to $135.8 million.

The data requested includes crash information since the recall update, along with data and video stored in or streamed from Tesla vehicles related to Autopilot use. Additionally, the NHTSA wants records detailing Tesla's safety decision-making process, issue investigations, and testing procedures related to Autopilot.

The big question: Is Tesla overpromising on its Autopilot capabilities or is the NHTSA unfairly targeting the EV maker? Let me know in the comments.

• Apparently, Tesla owners can put a wet towel on a Supercharger handle To get it to charge faster.

• Orlando-based lidar manufacturer Luminar disclosed that Tesla was its “largest LiDAR customer in Q1,” despite criticisms of the technology from Elon Musk.

• China's EV giant, BYD, is now selling some of its vehicles for as low as $10,000.

• Auto loan interest rates ended April above 8% as rates across new and used-vehicle loans rose year over year.

• Turns out that “new car smell” you know and love, could be toxic.

We’ve got tons of great jobs hitting the CDG Job Board right now. Here are some standouts for anyone looking for their next move.

• SaaS company BizzyCar has put the call out for account executives in Los Angeles and Orlando (remote).

• Coming from the world of marketing? Automotive Marketing Gurus is looking for a new marketing director (remote).

• Feel at home in the dealership? Tom Whiteside Chrysler Dodge Jeep Ram, near Columbus, OH, is hiring a sales rep.

Looking to hire? Add your roles today—it’s 100% free.

Thanks for reading everyone.

— CDG