What Tesla’s Charging U-Turn Means for U.S. EV Adoption

By Felicity Bradstock - May 12, 2024

Tesla's reversal on EV charging expansion in the US, coupled with layoffs in the charging infrastructure team, has raised questions about the pace of EV uptake and charging infrastructure development.

Despite Tesla's setback, other automakers and private investors are expected to step in to fill the gap, spurred on by President Biden's pro-renewable energy policies and growing interest in the EV sector.

The shift in plans by Tesla may lead to greater competition in the charging space, with companies like EVgo eyeing opportunities to expand their charging infrastructure and expertise.


After high expectations for U.S. electric vehicle (EV) charging infrastructure, following big promises from market leader Tesla, plans have come crashing down as Musk scraps the company’s expansion scheme. Tesla announced this month that it would not be going ahead with plans for a major EV charging expansion programme. This followed hundreds of layoffs in April, which led many to question Tesla’s plans for sustained growth in the U.S. and global markets. The question now is whether other automakers will step in to roll out their own charging infrastructure across the country and whether this will lead the EV expansion to be severely delayed.

This month, Tesla’s CEO Elon Musk reversed the company’s plans to massively expand EV charging infrastructure in the U.S. This followed the lay-off of 500 employees in a team that was developing plans for U.S. charging infrastructure. The announcement has thrown the EV industry into turmoil and automakers question whether the U.S. charging infrastructure will expand at the pace needed to match rising EV uptake. It is uncertain whether other companies can step in to develop the charging capacity needed to ensure EV uptake continues to increase in the U.S. market.

Tesla continues to own the biggest charging network in the country, with 25,500 out of 42,000 fast chargers in the U.S. The company began developing its Supercharger stations as early as 2012, providing Model S owners with a place to charge their vehicles on the road. This has made the company experts in developing charging stations, which encouraged many investors to fund Tesla-led infrastructure projects across the U.S. The shift in direction has shocked many in the industry, particularly potential investors in the company’s EV charging scheme.

Despite fears of what this could mean for U.S. charging infrastructure, some experts believe that Tesla will not be missed. President Biden’s pro-renewable energy policies, such as the Inflation Reduction Act (IRA), have fuelled interest in the EV sector and encouraged private investors to fund the development of EV charging stations. The number of public fast chargers across the country has risen by almost 11,000, around 36 percent, from April 2023 to April 2024. Peter Slowik, an auto expert at the International Council on Clean Transportation, explained, “The public charging experience is going to get easier… I don’t think the charging market and the electric vehicle market is slowing down because of Tesla.”

The rapid development of a fast-charging network in the U.S. is seen as key to encouraging drivers to shift away from internal combustion engine (ICE) vehicles to electric battery alternatives, supporting the national green transition. At the beginning of 2024, Biden announced the ambitious goal of installing half a million EV charging stations across the country by 2030, investing $623 million in the sector. Tesla was once the market leader for fast chargers in the U.S., but in recent years fast charging equipment has become more standardised. Most automakers in North America recently agreed to use the charging plug developed by Tesla commencing in 2025 to make charging more straightforward for EV owners.

The National Electric Vehicle Infrastructure (NEVI) Programme said 10 states have chosen Tesla as the charging station developer, and it is now uncertain whether the company will fulfil its contracts with these states. However, a spokesperson for the NEVI stated, “Because NEVI provides grants to states, which run competitive procurements to select vendors, we don’t expect individual business decisions to impact EV charging projects funded by the Bipartisan Infrastructure Law… We are focused on delivering a positive charging experience for every driver and an even playing field for American companies.”

The shift in plans by Tesla has led many in the industry to believe that it could spur greater competition in the U.S. Badar Khan, the CEO of EVgo – an EV charging network developer, said that Tesla’s shift in plan is “a very significant change in competitive dynamics in the charging space.” Khan said that EVgo is in discussions with Tesla’s EV charging site hosts and may also be open to hiring ex-employees from the Tesla Supercharger team. This could provide EVgo with the potential to develop charging infrastructure on sites that have already acquired permits, as well as to expand its knowledge and expertise in fast EV-charging technology.

Tesla’s change of plan is expected to slow down the development of the U.S. EV charging network in the short term, as other companies compete to fill the gap. This could have a knock-on effect on EV adoption over the next few years. However, it could also leave room for more market competition, knocking Tesla off the top spot. Further, greater standardisation over the last few years will reduce potential complications around different, competing charging infrastructure, assuring consumers that they will be able to charge their EVs countrywide.

By Felicity Bradstock for Oilprice.com

 

Australia to Invest $15 Billion in Clean Energy Over the Next Decade

By Tsvetana Paraskova - May 14, 2024

Australia plans to invest as much as US$15 billion (AUS$22.7 billion) over the next decade to become a renewable energy superpower and boost its domestic critical minerals economy, the country’s Labor Government said on Tuesday.

The cabinet unveiled today a Future Made in Australia plan to bring new jobs and opportunities and “help Australia succeed and remain an indispensable part of the global economy as the world undergoes the biggest transformation since the industrial revolution.”

The 2024-25 Budget will invest the equivalent of US$15 billion over a decade to boost clean power generation and facilitate private sector investment in low-carbon energy solutions.

Australia will allocate funding to support innovative technologies, including green metals, batteries, and low-carbon liquid fuels. The new plan also introduces a Hydrogen Production Tax Incentive and a Critical Minerals Production Tax Incentive.

The government has also earmarked funding for a national hydrogen strategy to make Australia a global hydrogen leader by 2030.

Last year, Australia allocated $1.32 billion (AUS$2 billion) in the 2023-24 budget to accelerate large-scale renewable hydrogen projects, aiming to become a world leader in green hydrogen production. 

The country is also a major producer of lithium, the key mineral in the current leading global battery technology, and of nickel, which is also crucial for battery manufacturing. 

While allocating billions of dollars to low-carbon energy, Australia is recognizing that natural gas will play a key role in the energy transition.

The government said in its Future Gas Strategy last week that Australia would continue to back exploration and increased production of natural gas as the fuel will play a key role in the country’s transition to a net-zero economy by 2050 and help provide a reliable source of energy to Australia’s allies.  

“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions,” said Madeleine King, Australia’s Minister for Resources and Northern Australia.

Russia Discovers Massive Oil and Gas Reserves in British Antarctic Territory

  City A.M - May 13, 2024

• 
  
• Russia's Rosgeo uncovered oil and gas reserves in British Antarctic territory, estimated at around 511 billion barrels.
• 
  
• The discovery poses environmental risks and challenges the 1959 Antarctic Treaty, which prohibits oil developments in the region.
• 
  
• Geopolitical tensions rise as Russia's activities in Antarctica are viewed as a move towards resource extraction rather than scientific research, sparking concerns among international observers.

Russia has found huge oil and gas reserves in British Antarctic territory, potentially leading to drilling in the protected region.

The reserves uncovered contain around 511bn barrels worth of oil, equating to around 10 times the North Sea’s output over the last 50 years.

The discovery, per Russian research ships, was revealed in evidence submitted to the Commons Environment Audit Committee last week. The committee was assessing questions regarding oil and gas research on ships owned by the Kremlin’s Rosgeo, the largest geological exploration company in Russia.

Antarctica is currently protected by the 1959 Antarctic Treaty, which prohibits all oil developments in the area.

It was set up to ensure the region was used “exclusively for peaceful purposes” and would “not become the scene or object of international discord.”

The committee heard from minister David Rutley, who assured MPs Russia was conducting scientific research in the region. “Russia has recently reaffirmed its commitment to the key elements of the treaty,” he said.

But Klaus Dodds, a professor of geopolitics at Royal Holloway University, argued the Antarctic policy environment was “arguably at its most challenging since the late 1980s and early 1990s.”

Russia’s invasion of Ukraine has created “widespread concern that a worsening relationship with the country will spark strategic competition and make it even more explicit in Antarctica.”

He believes Russian activity in the region equated to hunting for oil and gas as opposed to scientific research.

“Russia’s activities need to be understood as a decision to undermine the norms associated with seismic survey research, and ultimately a precursor for forthcoming resource extraction,” Dodds said in comments reported by the Telegraph.

The Antarctic Treaty is the largest of Britain’s 14 overseas territories but it has faced competition claims from Argentina and Chile in the past.

The Foreign, Commonwealth and Development Office said: “Russia has repeatedly assured the Antarctic Treaty Consultative Meeting that these activities are for scientific purposes.”

Construction Industry Braces for Impact as Copper Prices Rise

WATCH FOR INCREASING JOB SITE  THEFT

By Metal Miner - May 14, 2024, 

Rising copper prices could increase building costs and result in budget overruns or project delays.

The construction sector faces uncertainty due to fluctuating copper prices, making it difficult to predict costs and plan projects accurately.

Construction companies need to employ sophisticated risk management strategies to mitigate the impact of copper price volatility, such as hedging against price fluctuations and exploring alternative materials.

The Construction MMI (Monthly Metals Index) remained firmly in a sideways trend, only budging upward by 1.28%. The rising price of iron ore PB fines in China had the heaviest impact on the index, holding it more up than down. After that, the next biggest factor was European commercial 1050 aluminum sheets. Meanwhile, all other components of the index’s metal prices trended sideways or down. Despite this, the recent ban on Russian aluminum and copper could impact aluminum and copper prices and snowball into the U.S. construction industry.

How Rising Copper Prices Impact the U.S. Construction Industry

Recent increases copper prices could pose a significant challenge for the U.S. construction industry and the copper market. The primary drivers behind the escalating prices is projected supply-demand imbalances and the recent LME and CME ban on Russian copper. With copper being a crucial material used in various construction applications, including electrical wiring, plumbing, and roofing, recent price increases could have ramification for construction projects all across the nation.

There are several ways that increasing copper prices could impact the construction sector. First of all, copper-based products could become expensive, forcing building costs to increase depending on how much copper is needed. This could result in budget overruns, project delays or even project termination. Furthermore, contractors and developers often find it difficult to precisely predict costs when significant fluctuations happen with copper prices. This adds a degree of uncertainty to bidding and planning procedures.

Furthermore, the consequences of the current copper price forecast go beyond the immediate expenses associated with the commodity. For instance, the economic burden on building projects may increase if manufacturers of copper-containing HVAC systems, electrical equipment and other items feel compelled to boost their pricing.

Mitigating Challenges in Copper Price Volatility

Some industry participants continue to look at other materials to lessen the impact of increased copper prices. For example, HVAC manufacturers continue to produce more air conditioners and heat exchangers out of aluminum since it is currently a more affordable option. Nonetheless, wholesalers and contractors may need to work together to persuade homeowners and contractors to choose these options.

Although the construction sector typically withstands changes in commodity prices, the recent spike in copper prices still poses a threat. Sophisticated risk management techniques, such as protecting against price fluctuations and investigating substitute materials, will be essential for construction companies to maneuver through these challenges.

Other U.S. Construction Market Trends: April and May 2024

The government’s increased funding for infrastructure development projects had a notable influence on the construction industry over the past couple of months. The government’s emphasis on enhancing the nation’s infrastructure resulted in a rise in building activity in a number of industries. Not only did this investment promote economic growth, it produced a wide range of job possibilities.

But despite this rise, the U.S. construction sector continues to face a skilled labor shortage. In fact, the need for trained labor grew right along with the demand for construction projects. Still, the lack of personnel with the necessary experience made it difficult for construction businesses to obtain professional labor.

By Jennifer Kary

Consumers Sue U.S. Shale Alleging Collusion to Boost Oil Prices

By Tsvetana Paraskova - May 14, 2024, 

Consumers are suing large U.S. oil companies for alleged price collusion in an attempt to boost oil prices.

This isn’t the first time consumers have sued major shale producers alleging anticompetitive behavior.

More class action lawsuits could emerge in the wake of the FTC complaint against Pioneer CEO Sheffield.


U.S. shale producers have been preaching and practicing capital discipline since the price crash of 2020 and haven’t deviated from their pledge to focus on shareholder returns instead of oil production growth since then.

Some of the biggest independent U.S. shale firms may have started to finally please investors with meaningful returns, but they have angered consumers.

Some of these consumers of retail gasoline, diesel, and marine fuels allege that the ‘discipline’ in capital allocation has actually been a collusion to boost the price of oil and pad oil firms’ bottom lines by withholding production to the market, not too different from what OPEC is doing with crude supply.

And these consumers are taking some of the top U.S. shale producers to court where the companies are called to answer allegations of fixing and keeping oil prices elevated by constraining domestic production.

Regulator Rattles Shale Industry

The class action lawsuits were filed months before the Federal Trade Commission (FTC) barred early this month Pioneer Natural Resources’ former CEO Scott Sheffield from gaining a seat on Exxon’s board of directors or serving in an advisory capacity at Exxon once it acquires Pioneer.Related: Memorial Day Travel Expected to Near Record High

The FTC alleges in a complaint that Sheffield has, through public statements and private communications, attempted to collude with OPEC and OPEC+ “to reduce output of oil and gas, which would result in Americans paying higher prices at the pump, to inflate profits for his company.”

Pioneer defended Sheffield and his actions, which, the company said, were “neither the intent nor an effect of Mr. Sheffield’s communications to circumvent the laws and principles protecting market competition.”

“On the contrary, Mr. Sheffield focused on legitimate topics” including “unfair foreign practices that threatened to undermine U.S. energy security; and, through dialogue with government officials, the need to sustain a resilient, competitive and economically vibrant oil and gas industry in the United States.”

While most of the lawsuits alleging anti-competitive behavior in the sector preceded the regulator’s move, the FTC complaint against Sheffield rattled the U.S. shale industry.

This FTC complaint could now serve as a starting point for lawyers in class action lawsuits to seek to unearth evidence of collusion in the industry, legal experts told the Financial Times.

US Shale Slapped with Class Action Lawsuits

The latest class action antitrust litigation lawsuit was filed earlier this month in the U.S. District Court for the District of New Mexico, in which Permian Resources, ExxonMobil, Pioneer Natural Resources, Centennial Resource Development, Chesapeake Energy, Continental Resources, Diamondback Energy, EOG Resources, Hess Corporation, and Occidental Petroleum were named as defendants.

This isn’t the first time consumers have sued major shale producers alleging anticompetitive behavior.

In January this year, residents of Nevada, Hawaii, and Maine filed a lawsuit against nine U.S. producers accusing them of padding their profits and ripping off consumers by engaging in anticompetitive behavior and collusion to withhold oil production and boost oil prices.

The class action complaint filed in a Nevada court says that “This action arises from Defendants’ conspiracy to coordinate, and ultimately constrain, domestic shale oil production, which has had the effect of fixing, raising, and maintaining the price of retail gasoline (gasoline purchased by consumers at gas stations) in and throughout the United States of America.”

In 2022, when oil rallied after the Russian invasion of Ukraine, the defendants – being “agile swing producers” whose breakeven prices “have never been lower and who operate in regions with a wealth of profitable opportunities” had the perfect market conditions to aggressively increase production, the plaintiffs said.

“But Defendants did not take advantage of this market opportunity. Rather, departing from their historical practice and rational independent self-interest, each Defendant limited their domestic shale production growth,” the lawsuit alleges.

The plaintiffs brought this class action complaint “to recover treble damages, injunctive relief, and/or other relief as appropriate, based on violations of the Sherman Act and numerous state antitrust and consumer protection laws” by the defendants.

More class action lawsuits could emerge in the wake of the FTC complaint against Pioneer’s Sheffield, and plaintiffs and their legal representatives in the existing and new lawsuits will seek to unearth evidence of collusion.

However, it’s not clear if statements in conference calls, or other communications could be actual evidence of collusion, legal experts have told FT.

“Private class-action lawyers will no doubt try and follow those FTC breadcrumbs in discovery in their own cases,” Eric Grannon, an antitrust lawyer at White & Case, told FT.

The FTC complaint against Pioneer’s Sheffield does not have any legal effect or bearing in the class action lawsuits and it’s not certain it is actual evidence of collusion, Grannon noted.

“A unilateral statement by an executive, even to their competitors, that it’s in their common interest to raise prices or cut output is not a violation of the antitrust laws,” Grannontold FT.

“It’s only a violation if there’s agreement.”

At any rate, the lawsuits show that the ‘disciplined spending’ touted by U.S. shale producers is seen by consumers and plaintiffs as a conscious attempt to drive up oil prices.

By Tsvetana Paraskova for Oilprice.com

AI hitting jobs like a tsunami, IMF chief warns

Updated on: May 14, 2024 
Gintaras Radauskas
Senior journalist

Most policymakers and business leaders are still cautious when they talk about the impact of artificial intelligence tools on the global labor market but the boss of the International Monetary Fund is already mentioning a tsunami.

At an event in Zurich, Kristalina Georgieva said that AI is likely to impact 60% of jobs in advanced economies and 40% of jobs around the world in the next two years.

“We have very little time to get people ready for it, businesses ready for it,” she said at the event organized by the Swiss Institute of International Studies, associated with the University of Zurich.

“It could bring a tremendous increase in productivity if we manage it well, but it can also lead to more misinformation and, of course, more inequality in our society.”

Georgieva has essentially repeated the message sent in January by the IMF in its report that said that some jobs will be wiped out completely, while a part of them will be complemented by AI.

“In most scenarios, AI will likely worsen overall inequality, a troubling trend that policymakers must proactively address to prevent the technology from further stoking social tensions,” Georgieva wrote in a blog post.

Back then, the IMF assessed how well 125 countries were prepared for AI, and the findings reveal that wealthier economies, including advanced and some emerging market economies, tend to be better equipped for AI adoption than low-income countries.

Singapore, the United States, and Denmark posted the highest scores on the index based on their strong results in all four categories tracked.

However, a recent paper from the Computer Science and Artificial Intelligence Laboratory at the Massachusetts Institute of Technology said that the actual risk from automation was a bit less drastic than many of the doomsayers predict.

 

Historic Revelation: Spanish City Emerges as Lead Production Hub of Antiquity

May 13, 2024

In a groundbreaking archaeological discovery, a Spanish city has been identified as the western ancient world’s top lead production center. Recent research has shed light on the significance of lead production and export in the province of Córdoba, unveiling a historic revelation that reshapes our understanding of ancient metallurgical networks.

The discovery revolves around three lead ingots dating back to the Roman era, unearthed at the Los Escoriales de Doña Rama deposit in southern Spain. These remarkable artifacts, measuring approximately 45 centimeters long and weighing between 24 and 32 kilos, bear a triangular shape reminiscent of a Toblerone bar. Despite the rarity of these ingots, recent analyses have provided invaluable insights into ancient Córdoba’s pivotal role in lead smelting.

Ancient Córdoba, serving as the capital of the Roman Empire’s region of Baetica, emerged as a thriving lead mining hub during the first century A.D. The discovery of these ingots not only confirms the city's status as a major center for lead production but also highlights its significance in the broader Mediterranean trade network. The ingots, adorned with an identifying mark referring to the Societas Sisaponensis, a prominent mining company headquartered in Córdoba, provide compelling evidence of the city’s industrial prowess and export-oriented economy.

Moreover, the chemical analysis of the ingots’ composition and stable isotopes has revealed fascinating details about their origin and production process. It has been determined that the ingots were desilvered and crafted from ore sourced from the district of Fuente Obejuna-Azuaga, underscoring the interconnectedness of mining sites and metallurgical activities in primitive Córdoba.

The significance of this discovery extends beyond mere archaeological curiosity.

It offers a glimpse into the sophisticated metallurgical networks and industrial capabilities of ancient civilizations. The presence of a mining town, complete with foundries, processing areas, and possibly even fortresses, suggests a level of industrialization and technical expertise that was previously underestimated.

Credits: University of Córdoba

As University of Córdoba researcher Antonio Monterroso Checa aptly notes, this revelation underscores the level of skill, knowledge, and commercial acumen required to achieve such remarkable feats of manufacturing. While much remains to be explored and studied, the discovery of the Doña Rama site represents a crucial milestone in our understanding of prehistoric metallurgy and trade networks.

In essence, the identification of Córdoba as a lead production hub of antiquity illuminates a lesser-known aspect of ancient history and reaffirms the city’s status as a cornerstone of Mediterranean trade and industry. This historic revelation not only enriches our understanding of the past but also highlights the enduring legacy of ancient civilizations in shaping the modern world.

Roman temple of Córdoba. Credits: Wikipedia

E3 Lithium and Imperial Oil Ramp Up Alberta Pilot Program

14-May-2024 
Journalist: Gabreilla Figueroa

E3 Lithium Ltd. (TSXV: ETL) (FSE: OW3) (OTCQX: EEMMF), commonly referred to as "E3 Lithium" or simply the "Company," a prominent figure in the Canadian lithium sector, is delighted to unveil a revision to its partnership arrangement with Imperial Oil Limited ("Imperial" or "IOL").

Within the ongoing collaboration between E3 Lithium and Imperial, initially disclosed in June 2022, both entities have reached an agreement to expand access to further freehold lands within the Clearwater Area. Additionally, the Company has consented to prolong the validity of the warrants (referred to as the "IOL Warrants") by an extra 12 months, now allowing exercise until July 8, 2025.

"This ongoing partnership between E3 Lithium and Imperial is reaffirmed today, reflecting our joint commitment to establishing sustainable lithium production in Canada," remarked Chris Doornbos, President and CEO of E3 Lithium. " E3 lithium are delighted to prolong this agreement and look forward to continued collaboration with Imperial in the future."

E3 Lithium suggests extending the expiration date of 3,413,979 existing prepaid common share purchase warrants of the Company, which were issued to Imperial Oil Limited ("IOL") and for which the Company received a prepayment of $6.35 million on July 8, 2022.

Every Warrant grants IOL the exclusive and non-negotiable right to exercise it for one common share of the Company at a price of $1.86 within 24 months from the grant date, with no additional cost to IOL. As of now, no Warrants have been exercised, and none are held by insiders of the Company.

Pending approval from the TSX Venture Exchange, the expiry date of the Warrants will be prolonged from July 8, 2024, to July 8, 2025. All other conditions of the Warrants will remain unaltered and fully enforceable. No action will be necessary from the Warrant holder to implement the aforementioned amendment.

E3 Lithium is a developmental firm boasting a total of 16.0 million tonnes of lithium carbonate equivalent (LCE) in Measured and Indicated resources, along with 0.9 million tonnes LCE in Inferred mineral resources located in Alberta. According to the Preliminary Economic Assessment by E3, the Clearwater Lithium Project exhibits an NPV8% of USD 1.1 Billion with a pre-tax IRR of 32% and USD 820 Million with an after-tax IRR of 27%. The primary objective of E3 Lithium is to manufacture high purity, battery-grade lithium products to fuel the expanding electric revolution. Backed by a substantial lithium resource and innovative technological solutions, E3 Lithium possesses the potential to supply lithium to the market from one of the world's premier jurisdictions.

US opens probe into Alphabet's Waymo self-driving vehicles

IT'S BEEN ON THE ROAD FOR HOW LONG?!

Updated on: May 14, 2024 
Reuters

Image by Rosemarie Mosteller | Shutterstock

U.S. auto safety regulators have opened an investigation into the performance of Alphabet's Waymo self-driving vehicles after reports of its robotaxis exhibiting driving behavior that potentially violated traffic safety laws.

The National Highway Traffic Safety Administration said its preliminary evaluation into an estimated 444 Waymo vehicles follows 22 reports of 22 incidents, including 17 collisions.

The agency said that in some of those cases, the automated driving systems "appeared to disobey traffic safety control devices," and some crashes occurred shortly after the automated driving systems "exhibited unexpected behavior near traffic safety control devices."

Waymo did not immediately respond to a request for comment.

This is the latest in a series of investigations opened by NHTSA into the performance of self-driving vehicles after initiated probes into General Motors Cruise and Amazon.com's Zoox < AMZN.O>.

In February, Waymo recalled 444 self-driving vehicles after two minor collisions in quick succession in Arizona, saying a software error could result in automated vehicles inaccurately predicting the movement of a towed vehicle.

NHTSA said all 22 incidents included either self-driving crashes or driverless vehicles that exhibited driving behavior that potentially violated traffic safety laws.

The incidents include collisions with stationary and semi-stationary objects such as gates and chains and collisions with parked vehicles.

NHTSA also cited incidents "such as vehicles driving in opposing lanes with nearby oncoming traffic or entering construction zones."

The auto safety agency will investigate the Waymo 5th Generation automated driving system performance "in the incidents identified in this resume and similar scenarios, as well as to more closely assess any commonalities in these incidents."

The investigation, which is the first stage before the agency could demand a recall if it believes the vehicles pose an unreasonable risk to safety, will evaluate Waymo vehicle's performance "in detecting and responding to traffic control devices and in avoiding collisions with stationary and semi-stationary objects and vehicles."

Waymo said in March it was beginning to offer free driverless robotaxi services to select members of the public in Los Angeles after receiving approval from a state agency to start its ride-hailing program, Waymo One, in Los Angeles and some cities near San Francisco.

SMARTPHONE ON WHEELS

Xiaomi electric car breaks down after just 24 miles (39 Km)

Updated on: May 14, 2024
Justinas Vainilavičius
Senior Journalist

Image by VCG/VCG via Getty Images


A brand new Xiaomi SU7 broke down and could not be repaired after traveling only 39 kilometers, or about 24 miles, its owner has complained.

The first electric car from the Chinese phone maker Xiaomi has been a blockbuster hit since it launched on March 28th in China, reportedly selling out for the entire 2024 within 24 hours.

There have been numerous positive reviews following the first shipments of the car that started on April 9th but also reports of significant defects.

These include one new owner, who said that his car malfunctioned just after he picked it up from the Xiaomi delivery center in Fujian after more than a month-long wait.

The man said he was driving on a highway when warning messages started to appear telling him to pull over because the drive system was “faulty,” according to a report from Car News China.

In a video apparently filmed by the owner, the car can be seen parked on the roadside with its hazard lights blinking. Inside, the screen can be seen displaying warning messages.

The car had to be towed back to the delivery center, where the owner learned that it was beyond repair and had to be returned to the manufacturer for analysis.

The delivery center confirmed the incident and said they were unable to work out what the problem was. The owner was offered a refund – something he was not happy about.

According to media reports, the man requested a new car rather than agreeing to compensation, as he did not want to be put on a waitlist again.

However, because of the fact that all cars currently in production had sold out, Xiaomi said it was unable to give him one and is reportedly negotiating a refund.

Xiaomi SU7 starts at 215,900 yuan, or $29,900, and has become one of this year’s best-selling cars in that category in China. In comparison, the base model of the Tesla Model 3 costs 245,900 yuan, or $34,600.

Xiaomi’s car plant in Beijing has an annual production capacity of 150,000 vehicles, with plans to increase production to 300,000 vehicles later.

Xiaomi

Xiaomi Corporation, commonly known as Xiaomi and registered as Xiaomi Inc., is a Chinese designer and manufacturer of consumer electronics and related software, home appliances, automobiles and household hardware. It is the second-largest manufacturer of smartphones in the world, behind Samsung, mos...Wikipedia