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Current Trends and Technological Advancements in Electric Vehicles and Robotics

GOOVER DAILY REPORT June 29, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Vehicle Safety and Incidents
  3. Strategic Shifts and Market Trends
  4. Emerging Technologies in Robotics
  5. Company Updates and Market Analysis
  6. Conclusion

1. Summary

  • The report delves into the most recent advancements and trends in the electric vehicles (EV) and robotics sectors, focusing on pivotal developments from key companies such as Tesla, Lucid Group Inc., and Rimac. It details significant incidents like the Tesla Model Y crash, which highlighted the effectiveness of advanced safety technologies. The report also covers Tesla's strategic shift articulated in Master Plan 4, emphasizing a move towards AI and robotics, potentially transforming its valuation. The analysis includes global EV market trends, notably Rimac's introduction of the autonomous Verne and the growing micromobility market. Additionally, it examines the emerging technologies in humanoid robotics, particularly comparing Tesla Optimus and Agility Robotics’ Digit. The comprehensive market overviews and corporate strategies of these companies provide an in-depth understanding of current industry dynamics.

2. Vehicle Safety and Incidents

  • 2-1. Tesla Model Y Crash and Safety Technology

  • The Tesla Model Y accident on a high-speed road resulted in the vehicle flipping multiple times. Remarkably, all occupants survived the crash without severe injuries. The incident, recorded on a dash cam, showcases the effectiveness of Tesla's safety technology. Following the crash, Elon Musk highlighted that safety is Tesla’s primary design goal. This event underscores the critical advancements in vehicle safety engineering. The Tesla Model Y 2024 received the Top Safety Pick+ rating from the IIHS, reflecting near-perfect scores in crash tests under stringent criteria.

  • 2-2. Importance of Adhering to Speed Limits

  • The Tesla Model Y crash also emphasizes the importance of adhering to speed limits for passenger safety. Reports suggest the vehicle was traveling at over 150 kmph, which contributed to the loss of control and subsequent flip into oncoming traffic. Although the exact cause remains unclear, it highlights the dangers of excessive speed and the necessity of following speed regulations to prevent severe accidents.

3. Strategic Shifts and Market Trends

  • 3-1. Tesla's Master Plan 4 and Its Focus Beyond Cars

  • According to a report from Morgan Stanley, Tesla's upcoming Master Plan 4 (MP4) signals a strategic pivot focusing on areas beyond just electric vehicles (EVs). Analysts predict that MP4 will highlight Tesla's declining emphasis on its core auto business in favor of developments in Artificial Intelligence (AI), robotics, and hybrid computing. The report notes a significant alliance between Tesla and Elon Musk's other ventures such as SpaceX, intending to form a broader technology ecosystem. Morgan Stanley suggests that Tesla's ambition in humanoid robotics and other non-car technologies will reshape Tesla's valuation, wherein the core auto segment will comprise only 20% of their price target valuation. This shift is attributed to potential challenges in the EV market and a strategic pivot towards new technologies like AI and robotics. Negative trends in the global EV market might still impact Tesla’s stock price but, analysts maintain an Overweight rating on Tesla with a price target of $310.

  • 3-2. Electric Vehicle Market Global Trends

  • An analysis from EVWORLD.COM suggests that the global electric vehicle (EV) market is showing consistent growth, despite some negative narratives surrounding the industry. According to Atlas Public Policy, the total cost of owning an EV is now lower than owning an equivalent gasoline-powered vehicle in the U.S. in 2023. Furthermore, Rimac Automobili is making significant advancements with their new Verne brand, which is working on self-driving cars and creating a two-seater autonomous vehicle that aims to revolutionize how people view car ownership and usage. Rimac's innovative approach signifies a broader trend in the market towards autonomous driving technologies. The micromobility market in Europe is also on the rise, expected to reach $520 billion by 2035, with e-bikes making up nearly 40% of the market. China continues to lead in electric bus adoption, which is poised to represent 86% of the global fleet by 2050 due to its extensive policies and investments in EV infrastructure. Lastly, electric cars set new records at the Pikes Peak International Hill Climb, demonstrating their high performance and growing acceptance in competitive automotive arenas.

4. Emerging Technologies in Robotics

  • 4-1. Tesla's Humanoid Robot Ambitions

  • Tesla's ambitions in the humanoid robot space are seen as potentially more significant than their advancements in autonomous cars, according to Morgan Stanley analysts. Tesla's humanoid robot, Optimus, leverages AI to drive transformational change in robotics. Analysts projected a substantial impact, suggesting that the humanoid opportunity is more considerable and faster-adopting than autonomous vehicles. The theoretical market size amidst a global $30 trillion labor market could see up to 63 million humanoid robots by 2050, impacting $3 trillion in wages. Tesla's unique positioning is supported by their vast data set, substantial manufacturing capabilities, and vertically integrated key infrastructures.

  • 4-2. Rimac Verne Robotaxi Development

  • Rimac has introduced its autonomous robotaxi, Verne, which presented a comprehensively different approach six weeks before Tesla's Robotaxi. The Verne robotaxi includes designs focused on practicality with features like sliding doors for easier access and a trunk, yet omits steering wheels and pedals, instead offering a median switch for control. Mobileye's technology, including cameras, radar, and lidar, powers Verne's autonomous capabilities. The robotaxi is set for road trials in Zagreb by 2026 with future expansion plans. This design emphasizes urban effectiveness, addressing the challenges of complex environments with robust sensor and autonomous systems.

  • 4-3. Comparison of Tesla Optimus and Agility Robotics Digit

  • Tesla's Optimus and Agility Robotics' Digit are leading the humanoid robot sector with different focuses. Optimus aims at affordability and broad application, specifically designed to be accessible with a target price under $20,000. It incorporates advanced AI and is designed for tasks that require human intervention. Digit focuses on logistics, with precise movement capabilities tailored for sorting and transporting packages, making it particularly valuable in warehousing. Optimus's design prioritizes a high degree of freedom and iterative cost-effective solutions, while Digit capitalizes on practical application with energy-efficient and precise design, particularly suited for logistics and manufacturing environments.

5. Company Updates and Market Analysis

  • 5-1. Lucid Group's Corporate Developments

  • Lucid Group, Inc., the maker of advanced electric vehicles, has announced several significant corporate developments: 1. **Leadership Changes**: In June 2024, Lucid appointed Nick Twork as Head of Global Communications. Twork will oversee the company's global communications, including product, corporate, financial, internal communications, media relations, and social media. Additionally, Lisa M. Lambert was elected to the board of directors, bringing extensive technology and sustainability expertise from her tenure at Intel and National Grid. Matt Everitt joined as General Counsel in January 2024, responsible for Lucid's global legal affairs. 2. **Financial Results**: The financial performance for the first quarter of 2024 included the production of 1,728 vehicles and the delivery of 1,967 vehicles. Revenue for Q1 2024 was $172.7 million, showing a 39.9% increase compared to Q1 2023. Additionally, Lucid successfully raised $1.0 billion through a private placement with an affiliate of the Public Investment Fund (PIF), ending the quarter with approximately $5.03 billion in total liquidity. 3. **Product Developments**: Lucid continues to innovate with its luxury EV lineup. The 2024 Lucid Air Grand Touring model came with enhancements for better range and faster charging. The company also adjusted the pricing for its Lucid Air model lineup to make their EVs more accessible. 4. **Market Performance**: Lucid's stock underwent various analyst ratings and adjustments. Citigroup resumed coverage with a new price target of $2.90, Cantor Fitzgerald downgraded the stock from Neutral to Underweight, setting a new price target of $4.00, and Stifel initiated coverage with a Hold rating and a price target of $5.00. Several other analysts from Needham, R. F. Lafferty, BofA Securities, and RBC Capital also provided new ratings and price targets, reflecting changing market sentiments.

  • 5-2. Ford's EV Strategy and Collaboration with Tesla

  • Ford Motor Co. CEO Jim Farley has highlighted the company's dedication to electric vehicles (EVs) while recognizing the hurdles and broader market reception. Key points include: 1. **Commitment to EVs**: Jim Farley expressed a genuine appreciation for EVs in a post on X, noting a shift from his lifelong preference for gas vehicles. Despite initial resistance, innovations have proven to be effective over time. He emphasized Ford's commitment to EVs driven by customer preferences rather than political or government influences. 2. **Market Challenges**: The article acknowledged challenges faced by EV owners, such as poor charging infrastructure and high costs. A recent McKinsey & Co.'s 2024 Mobility Consumer Pulse study highlighted that 46% of EV owners in the U.S. are considering switching back to gas vehicles due to these issues. 3. **Financial Performance**: Ford's EV segment faced significant financial losses. The first quarter of 2024 saw an EBIT loss of $1.3 billion, compared to $0.7 billion in Q1 2023, with revenue decreasing 84% year-over-year to $0.1 billion. For the full year 2024, Ford anticipated an EBIT loss between $5 and $5.5 billion for its EV division. 4. **Collaborative Efforts**: A significant collaboration between Ford and Tesla allows Ford's EV customers access to Tesla's supercharger network, showcasing a positive working relationship and mutual respect between Farley and Tesla CEO Elon Musk. 5. **Product Lineup**: Ford focuses on making lower-cost EVs to meet customer demand and compete with Tesla and Chinese EV makers. Their current EV models include the Mustang Mach-E SUV, F-150 Lightning, and E-transit vans, with the Mach-E being the best-selling EV in the U.S. as of May 2024.

6. Conclusion

  • The report's findings illustrate the robust advancements in EV and robotics technology, emphasizing the impact of innovations by Tesla, Lucid Group Inc., and Rimac. The Tesla Model Y's safety features underline the importance of continuous improvements in vehicle safety technologies. Tesla's Master Plan 4 indicates a significant strategic pivot towards AI and robotics, reshaping its market valuation and opening new avenues for growth. The introduction of the Rimac Verne and the Tesla Optimus humanoid robot signifies a noteworthy shift towards autonomous and AI-driven technologies in urban transport and labor markets. Despite these advancements, challenges remain, including market competition and economic barriers such as high costs and inadequate infrastructure. Future prospects in these sectors appear promising, with potential expansions in autonomous driving and humanoid robotics revolutionizing traditional automotive and labor markets. Ultimately, the practical applications of these technologies could significantly enhance urban mobility, safety, and operational efficiencies across various sectors.

7. Glossary

  • 7-1. Tesla Model Y [Product]

  • The Tesla Model Y is highlighted for its advanced safety features that protected passengers in a severe crash, emphasizing the importance of vehicle safety technologies and adherence to speed limits.

  • 7-2. Master Plan 4 [Strategy]

  • Tesla's upcoming Master Plan 4 marks a strategic move away from traditional electric vehicles towards broader technological ventures like AI, robotics, and hybrid computing, as analyzed by Morgan Stanley.

  • 7-3. Lucid Group Inc. [Company]

  • Lucid Group is noted for its various corporate advancements, including new appointments, financial results, and the introduction of the 2024 Lucid Air Grand Touring model, illustrating its active role in the electric vehicle market.

  • 7-4. Rimac Verne [Product]

  • The Verne is a two-seater autonomous electric car by Rimac, designed for urban transport without a steering wheel or pedals. It signifies advancements in autonomous vehicle technology and aims to challenge traditional public transportation.

  • 7-5. Tesla Optimus [Technology]

  • Optimus is Tesla's humanoid robot designed for affordability and mass production, targeting a variety of applications. It's compared with Agility Robotics’ Digit, showing different utilizations within the robotics industry.

  • 7-6. Ford Motor Co. [Company]

  • Ford’s innovative strategies in the EV sector include collaboration with Tesla and the launch of lower-cost EVs to maintain competitiveness, despite financial challenges in its EV division.

8. Source Documents