Electric vehicle (EV) startup Arcimoto entered into a contract manufacturing agreement with MOBIUS.energy Corporation to manufacture battery packs for the aviation market. EV king Tesla TSLA is contemplating manufacturing and selling battery storage systems in India. China-based BYD Co Ltd BYDDY reached a milestone by producing 500,000 Yuan Plus EVs.
Another Chinese EV maker NIO Inc. NIO completed a $1 billion offering of convertible senior notes, with the proceeds to be used for debt repurchase, balance sheet strengthening, and general corporate purposes. The company also ventured into the smartphone market, releasing an Android device priced competitively within the range of $900 to $1,000.
Japan’s auto titan Honda HMC also made it to the top stories. Dongfeng-Honda, the joint venture between Honda and China's Dongfeng Motor, has made a significant move in the Chinese EV market by introducing a new EV brand called Lingxi.
Last Week’s Top Stories
BYD reached a significant milestone by producing 500,000 Yuan Plus EVs, also known as Atto 3 electric sport utility vehicles (SUVs). The company achieved this milestone just 19 months after the model first hit the market. The Atto 3 is the first A-Class SUV to deploy BYD’s e-platform 3.0 for enhanced efficiency and safety. The base version of Atto 3, with a 49.92 kWh BYD Blade Battery and 430 km of range, starts at 135,800 yuan.
The company recently launched Yuan Plus Champion Edition, which ranges between 135,800 yuan and 163,800 yuan. The new trim offers two new colors — Oxygen Blue (with no additional charge) and Dynamic Purple (with an additional charge of 2,000 yuan). The new trim has a luxurious beige interior, front seat ventilation and heating function, private glass for the rear door and rear windshield, a 3D transparent panoramic image system, parent-child mode and wipe-screen mode.
Reportedly, Tesla is planning to establish a battery storage production plant along with a potential EV production plant in India. Tesla has submitted a proposal to officials in India to seek incentives to set up a battery storage factory. Currently, the automaker is discussing its plans to build a new EV factory in India that would produce a car priced around $24,000. Elon Musk, CEO of Tesla, believes that the company and India’s government will resolve the issue concerning import duties to let the company gauge demand by importing cars from other countries. The import duties discourage customers by excessively marking up the prices of cars.
The EV king proposed a plan to support India’s battery storage capabilities with Powerwall, a system that stores excess power from solar panels. The power can then be utilized during the night or power outages. Per sources, India’s government wants to help create a fair business model for Tesla by offering subsidies to customers buying these products. Both parties are currently reviewing the proposal and seem interested in the idea but the realization of the plan is uncertain.India officials want Tesla to work on reducing the prices of its battery storage products, adding that the government could help the company unlock market demand.
Arcimoto has inked a contract manufacturing deal with MOBIUS.energy, a leading energy tech firm. This partnership aims to elevate EV charging capabilities, create mobile charging solutions using FUV’s MUV platform and develop ultra-light aviation batteries. Per the agreement, Arcimoto will produce MOBIUS packs for existing and future customers. These packs are poised to revolutionize EV charging with rapid charging capabilities. Once prototypes are successfully tested and launched, Arcimoto plans to integrate MOBIUS technology into its production vehicles, achieving charging times of under 10 minutes for a full charge.
Arcimoto's CEO, Chris Dawson, described the partnership as a game-changer for the EV industry, highlighting its potential to revolutionize EV charging and contribute to the electrification of aviation. The collaboration is expected to accelerate EV adoption and extend innovative energy solutions to new markets, offering ultra-fast charging for Arcimoto vehicle owners, making electric transportation more accessible and practical. MOBIUS.energy's CEO, Eugene Choi, highlighted the partnership's significance in advancing EV charging and sustainable energy solutions.
NIO announced a $500 million offering of convertible senior notes due in 2029 and another $500 million due in 2030, with maturity dates of Oct 15, 2029 and Oct 15, 2030, respectively. The proceeds will be used to repurchase existing debt securities and bolster the balance sheet, along with general corporate purposes. The 2029 Notes carry an annual interest rate of 3.875%, payable semiannually on Apr 15 and Oct 15, beginning Apr 15, 2024. Meanwhile, the 2030 Notes have a 4.625% annual interest rate, with the same semiannual payment schedule, also commencing on Apr 15, 2024. The offering concluded on Sep 25, 2023.
In another development, Nio unveiled an Android smartphone, anticipating more than half of its users to opt for it. Priced between $900 and $1,000, the phone offers a $150 cost advantage compared to a similar Huawei device. Nio is the first upscale Chinese electric car brand to introduce its own smartphone, developed in about a year. Chinese electric vehicle companies have increasingly focused on in-car entertainment and mobile connectivity to enhance their vehicles' appeal. Deliveries of Nio's smartphone will commence on Sep 28, with orders open immediately.
Honda's joint venture in China, Dongfeng-Honda, has launched a new EV brand called "Lingxi," marking the first instance of a foreign partnership in China creating a wholly new EV brand. Lingxi aims to deliver exceptional smart driving experiences and incorporates a new EV platform separate from Honda's e:NS line. Lingxi will introduce an EV platform with unique pricing and positioning. Two key features of this platform are an advanced battery safety system and an immersive smart cockpit.
The brand's logo is inspired by a "flying bird" and "Lingxi Green" signifies its Chinese cultural heritage. This strategic move underscores Dongfeng-Honda's commitment to the Chinese EV market, covering various electrification segments. By 2025, Dongfeng-Honda anticipates that half of its product lineup will be electrified, with plans to launch more than 10 fully electric models by the decade's end. The Lingxi brand positions the joint venture to play a significant role in China's rapidly evolving EV sector, offering unique EV solutions to meet diverse market demands.
Honda currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The following table shows the price movement of some of the major EV players over the last week and the six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for the announcements of upcoming EV models and any important updates on the red-hot industry.
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