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Elon goes to China, Rivian is selling stock for $3 billion, and Fiat’s cutest tiny EV

Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B. Rebecca Bellan…

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Welcome back to The Station, your central hub for all past, present and future means of moving people and packages from Point A to Point B.

Rebecca Bellan here, and yup, I’m still steering the ship.

The biggest news this week has been Elon Musk’s visit to China, a move that has the potential to strengthen Tesla’s ties with the world’s largest auto market. It’s Musk’s first visit since the COVID-19 pandemic, and his commitment to China isn’t surprising given how much China’s vehicle sales carry the automaker’s global sales. In Q1, China accounted for over half of Tesla’s deliveries.

Even though Twitter is banned in China, Musk has still managed to make himself something of a legend to the Chinese people, reports Rita. The CEO has over 2 million followers on Weibo, where Musk shares his admiration for China, his opposition to cutting off supply chains and his plans to expand his business in China.

“The China space program is far more advanced than most people realize,” wrote Musk on Weibo.

His sweet-talking has earned him the nickname “Iron Man.”

The pieces of Musk’s visit to China are still falling, and we’ll keep updating, but here’s what we know so far. Musk kicked off his trip by dining with Zeng Yuqun, chairman of CATL, one of the largest battery manufacturing companies. There have been talks lately of CATL and Tesla partnering to build cheaper batteries in the U.S., but there’s nothing solid yet.

Musk also paid a visit to the Shanghai Gigafactory, where he met the staff behind Tesla’s popular Model 3 and Model Y.

We’re keeping our eyes out for more news of Musk’s happenings in China. And with that, onto the rest!

Want to reach out with a tip, comment or complaint? Email Kirsten at kirsten.korosec@techcrunch.com. You also can send a direct message to @kirstenkorosec. Or you can reach Rebecca at rebecca.techcrunch@gmail.com or follow her at @rebeccabellan.

Reminder that you can drop us a note at tips@techcrunch.com. If you prefer to remain anonymous, click here to contact us, which includes SecureDrop (instructions here) and various encrypted messaging apps.

Micromobbin’

Cake is expanding into India via a partnership with Pepfuels under the brand name CollarEV.

Cowboy is being sued by eBikeLabs, a French startup that builds embedded software for e-bikes, for patent infringement and copying eBikeLabs’ tech in its latest feature, AdaptivePower. Cowboy has refuted the claims and accused eBikeLabs of running a smear campaign. As Romain Dillet reports, “This is a messy story about a business relationship that fell apart between a small startup that doesn’t have deep pockets and a popular consumer brand that wants to protect its reputation.”

Zoomo will start offering Urban Arrow’s electric cargo bikes on its e-bike subscription platform.

Residents of Santa Barbara can check out e-bikes on a weekly basis from a new e-bike lending library.

Honda filed patents for two new moped-style electric scooters called Dax:e and Zoomer:e. Both are poised to enter the Indian market.

Zeus launched a solar panel charging pilot program in Regensburg, Germany. Under the pilot, scooters parked at the company’s three “Zolar stations” will get a charge from the sun. Maybe they should be called Helios stations, amiright?!

Porsche has launched two new e-bike cross-performance models that look like they can absolutely shred mountains.

City Spotlight: Atlanta

On June 7, TechCrunch is going to (virtually) be in Atlanta. We have a slate of amazing programming planned, including the mayor himself, Andre Dickens. If you are an early-stage Atlanta-based founder, apply to pitch to our panel of guest investors/judges for our live pitching competition. The winner gets a free booth at TechCrunch Disrupt this year to exhibit their company in our startup alley. Register here to tune in to the event.

Image Credits: Bryce Durbin (opens in a new window)

Deal of the week

money the station

Lucid Group plans to raise $3 billion through a stock offering, the majority of which will come from Saudi Arabia’s Public Investment Fund (PIF). PIF already owns more than 60% of the company, and it’s agreed to buy 265.7 million shares in a private placement for about $1.8 billion, which suggests a price of about $6.80 per share. The rest will be raised from a public offering of 173.5 million shares of common stock, according to the company.

Shares immediately dropped 9% after-hours on the news as investors considered how much more money Lucid would need to surmount its rising losses and diminishing available capital. And all of this amid a looming recession, a Tesla-sparked price war, and the aftertaste of large-scale layoffs in March.

Sure, Lucid can bring in more cash, but the company really needs to cure its spending problem. In the first quarter, Lucid’s cash and cash equivalents dropped to $900 million, down from $1.74 billion at the end of Q4 2022.

Other deals that got my attention this week …

Boeing has fully acquired eVTOL startup Wisk Aero. The terms of the deal were not disclosed, but Boeing already owned part of Wisk and had committed $450 million in capital back in January.

A British consortium that includes mining company Glencore will invest $9 billion in Indonesia’s mining and EV battery sectors. Indonesia has the world’s biggest nickel reserves.

General Motors and South Korea’s Posco Chemical are getting C$150 million from Canada’s federal government and Quebec to build a battery materials facility. The companies aim to have the C$600 million project up and running by 2025.

Loewi, a Paris-based e-bike refurbishment startup, raised €1 million in funding to help it reach 300 refurbishments per month and expand globally.

Ola Electric, an Indian manufacturer of electric two-wheelers, is said to be preparing for an initial public offering before the year’s end. The company achieved a valuation of $5 billion during its most recent fundraising round in 2022.

Notable reads and other tidbits

Autonomous vehicles

A California bill that would require a trained human safety operator to be present anytime a heavy-duty autonomous vehicle operates on public roads passed the state’s Assembly floor. It’ll go to the Senate now and, if passed, to the governor’s desk. The AV industry argues the bill stifles California’s competitiveness and defeats the whole purpose of self-driving trucks. The bill’s authors are concerned about safety on highways and job security for truckers.

Cruise is expanding hours of operation in San Francisco for certain riders who have access to its free service. For some, rides will start at 9 p.m. and go until 5:30 a.m.

Einride announced a partnership with the UAE Ministry of Energy and Infrastructure to deploy 2,000 EVs, 200 autonomous vehicles, eight charging stations and Einride’s SaaS product Saga across 550 km of Abu Dhabi, Dubai and Sharjah. The partnership is expected to play out over the next five years. Einride did not share the financial terms.

Serve Robotics and Uber have expanded their existing partnership. Over the next couple of years, about 2,000 of Serve’s little autonomous sidewalk delivery robots will deliver food via the Uber Eats platform in multiple markets across the U.S.

Electric vehicles, batteries and charging

Arcimoto unveiled its new tiny, three-wheeled flatbed truck called the MUV. It has a customizable rear storage space, top speed of 75 mph, and about 102 miles of city range. The MUV is available now for $23,500, and Arcimoto is aiming to sell fleets.

Select 2024 Audi and other VW Group cars will have Webex available to download from the automaker’s in-app car store. Webex is also available on the 2024 Mercedes-Benz E-Class and in Ford vehicles.

Fiat’s new Topolino tiny EV is so cute we could scream. The remade Citroen Ami is a retro-looking quadricycle with a convertible top and ropes instead of doors, and aside from a teaser image, that’s really all we know about it. It probably won’t go any faster than the Ami, which hits around 28 mph, so it’ll be a no-go for the States. Which is sad because, again, it’s super cute and better for the environment and urban landscapes than an electric Hummer.

Ford’s CEO Jim Farley said the automaker might not break even on its EVs until 2030.

Geely is preparing to enter Thailand’s electric vehicle market.

The 2023 Mercedes-Benz EQS SUV is a practical, luxurious car with top-notch tech in the form of a Hyperscreen and a handful of driver-assist features. It’s great for tech-forward families who like the finer things in life and plenty of space. Only downside? The exterior is a bit meh. As Tim Stevens describes it, “The result is a bit of a blob that absolutely disappears into any parking lot.”

Polestar’s latest software update includes YouTube. Like other similar iterations, users can stream video while stopped, like if they’re waiting for a pickup or charging their vehicles. The Polestar 2 software update also includes an updated version of Apple CarPlay that lets you project Apple Maps onto the instrument cluster.

Rivian has teased its smaller, lower-cost R2 SUV design over the Memorial Day weekend during an Instagram Q&A. CEO RJ Scaringe stood in front of a clay model of an R2 covered with a black cloth, outlining a boxy-looking compact vehicle.

Tesla says all of its Model 3 sedans now qualify for the full $7,500 EV tax credit.

Toyota has committed another $2.1 billion to its battery factory in North Carolina. The automaker also said its first U.S.-made electric SUV will be built at its Kentucky factory.

Volkswagen has finally debuted its U.S. version of the Volkswagen ID.Buzz minivan after years of teasing. The specs on the U.S. van are, unsurprisingly, much bigger than the European bus. The whole feel of it is retro-meets-cool, and indeed, we have ourselves asking, Can VW make minivans cool? Once factoring in the nostalgia aspect, the answer is undoubtedly yes. And VW will need that as it coasts into EV-land.

Volvo revealed some details about the interior of its new EX30. From what we can tell, that good old Scandinavian design is really pulling through to optimize space in the small SUV.

Miscellaneous

Attending Apple’s WWDC this month? Check out this new website from flight tracking tool Flighty to find others who are traveling to the event and connect with them, maybe even en route!

Delta Air Lines is being sued in a class action lawsuit for allegedly greenwashing. The company made a $1 billion pledge in 2020 to become carbon neutral, but the plan relied on carbon credits to offset the airline’s pollution.

The National Highway Traffic Safety Administration proposed a new rule that would require all new cars and trucks sold in the U.S. to be equipped with automatic emergency braking systems.

Tesla has been given the all-clear by NHTSA after the agency closed an investigation into Tesla for allowing in-dash gaming while its vehicles were moving.

Bored of the standard navigation voice on Waze? Now you can have Roger Federer give you turn-by-turn directions, because why not?

Wingcopter and Siemens have signed an MoU to develop and roll out an integrated drone delivery solution to transport lab diagnostics and other medical supplies in Africa.

Ride-hail

Ford launched a new pilot called Ford Drive that will give Uber drivers in San Diego, San Francisco and Los Angeles access to flexible leases on Mustang Mach-Es.

Revel is diversifying its all-Tesla ride-share fleet with about 50 Kia Niro EVs.

Uber, Lyft, DoorDash and other app-based ride-hail and delivery companies will have to reimburse California gig workers potentially millions of dollars for unpaid vehicle expenses between 2022 and 2023. The backpay comes from a provision in Prop 22 that gives low-earning drivers a vehicle reimbursement fee of $0.30 per active mile driven. That fee was meant to increase with the rate of inflation, but for the past year and a half, it has remained stagnant.

Uber is dropping the 5% discounts on rides that it used to offer members of its Uber One subscription service. Instead, riders can now earn 6% Uber Cash on rides that can be spent on more Uber stuff. It’s a bold move, and one that might see the instant gratification seekers among us ditch their memberships. But if it works out for Uber, the company might see even more spend coming from its subscribers.

* A previous newsletter inadvertently had some missing words in the following write-up. Here is the complete sentence. QuantumScape, the solid-state battery company, is (sort of) pivoting. The company said it is planning to focus more on the consumer-electronics sector in an effort to bring in the capital it needs to commercialize automotive-grade cells.

Elon goes to China, Rivian is selling stock for $3 billion, and Fiat’s cutest tiny EV by Rebecca Bellan originally published on TechCrunch

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Government

Why so sad?

Over the past few years, consumer sentiment has increasingly run far below the level predicted by models based on economic data. The Economist illustrates…

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September 24, 2023

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Over the past few years, consumer sentiment has increasingly run far below the level predicted by models based on economic data. The Economist illustrates the issue with a graph:

The Economist attributes the gloomy outlook to the lingering effects of Covid.  I suspect the actual explanation is growing political polarization.  Consider the growing partisan gap in how voters evaluate the economy:

Back in the 1990s, there wasn’t much partisan difference in how voters evaluated the condition of the economy.  This was before the public had come to view people with different points of view as the enemy.  I suspect that the responses to polls were more honest back then.  After 9/11, opinion became more polarized.  After Trump was elected, polarization increased even further.  Today, voters in the two major parties live in completely separate worlds, consuming media that is tailored to fit their prejudices.  Thus it’s not surprising that they have radically divergent views of the world.

Voters seem to rate the economy much more highly when their preferred candidate is in power, perhaps partly due to the mistaken assumption that presidents somehow control inflation and the business cycle.  (A myth that is encouraged by our media.)

Until 2021, the biases of the two parties roughly offset, leaving the overall rating roughly equal to the rating one would expect based solely on the economic data.  This changed after Joe Biden became president.  Unlike with President Obama (who inherited a weak economy), Democratic voters are only lukewarm on the current president. 

In contrast, Republican voters have an extremely negative view of President Biden.  With only lukewarm sentiment from Democrats, there is nothing to offset the extremely low economic rating of Republicans.  This leaves the overall rating for the economy far below the level you’d expect with rising real wages, 3.8% unemployment, and 3.7% inflation.  At one point in 2022, consumer sentiment fell below the lowest reading of the early 1980s, when the economy was in far worse shape.

I don’t believe these consumer sentiment figures represent the actual views of the public.  Consumer spending is still very strong, an indication that people feel pretty good about the economy.  Actions speak louder than words.  I suspect the low reported sentiment is mostly a reflection of GOP voters expressing anger at the current political situation.

My own view is that recent economic policy (since 2017) is quite bad, but the negative effects will show up in future years, at a point where we will need to confront the effects of an out of control federal budget.  If people think the current economy is bad, wait until they see what’s coming down the road in a few years!

PS.  Note to commenters:  If you think the economic model is wrong, you need to explain why it fit the data for the 40-year period from 1980 to 2020.

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Government

Menendez indictment looks bad, but there are defenses he can make

The indictment of Sen. Bob Menendez is full of lurid details – hundreds of thousands of dollars in cash stuffed into clothes among them. Will they tank…

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2 hours ago

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September 24, 2023

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Senate Foreign Relations Committee Chairman, Sen. Bob Menendez, D-N.J., right, and his wife Nadine Arslanian. AP Photo/Susan Walsh, File

Reactions came quickly to the federal indictment on Sept. 22, 2023 of New Jersey’s senior U.S. senator, Democrat Bob Menendez. New Jersey Gov. Phil Murphy joined other state Democrats in urging Menendez to resign, saying “The alleged facts are so serious that they compromise the ability of Senator Menendez to effectively represent the people of our state.”

The indictment charged Menendez, “his wife NADINE MENENDEZ, a/k/a ‘Nadine Arslanian,’ and three New Jersey businessmen, WAEL HANA, a/k/a ‘Will Hana,’ JOSE URIBE, and FRED DAIBES, with participating in a years-long bribery scheme…in exchange for MENENDEZ’s agreement to use his official position to protect and enrich them and to benefit the Government of Egypt.” Menendez said he believed the case would be “successfully resolved once all of the facts are presented,” but he stepped down temporarily as the chairman of the Senate’s influential Committee on Foreign Relations.

The Conversation’s senior politics and democracy editor, Naomi Schalit, interviewed longtime Washington, D.C. lawyer and Penn State Dickinson Law professor Stanley M. Brand, who has served as general counsel for the House of Representatives and is a prominent white-collar defense attorney, and asked him to explain the indictment – and the outlook for Menendez both legally and politically.

What did you think when you first read this indictment?

As an old seafaring pal once told me, “even a thin pancake has two sides.”

Reading the criminal indictment in a case for the first time often produces a startled reaction to the government’s case. But as my over 40 years of experience defending public corruption cases and teaching criminal law has taught me, there are usually issues presented by an indictment that can be challenged by the defense.

In addition, as judges routinely instruct juries in these cases, the indictment is not evidence and the jury may not rely on it to draw any conclusions.

A man in a suit pointing at a poster board with various photos on it.
Damian Williams, U.S. Attorney for the Southern District of New York, speaks during a press conference on Sept. 22, 2023 after announcing the Menendez indictment. Alexi J. Rosenfeld/Getty Images

The average reader will look at the indictment and say “These guys are toast.” But are there ways Menendez can defend himself?

There are a number of complex issues presented by these charges that could be argued by the defense in court.

First, while the indictment charges a conspiracy to commit bribery, it does not charge the substantive crime of bribery itself. This may suggest that the government lacks what it believes is direct evidence of a quid pro quo – “this for that” – between Menendez and the alleged bribers.

There is evidence of conversations and texts that coyly and perhaps purposely avoid explicit acknowledgment of a corrupt agreement, for instance, “On or about January 24, 2022, DAIBES’s Driver exchanged two brief calls with NADINE MENENDEZ. NADINE MENENDEZ then texted DAIBES, writing, ‘Thank you. Christmas in January.’”

The government will argue that this reflects acknowledgment of a connection between official action and delivery of cash to Sen. Menendez, even though it is a less than express statement of the connection.

Speaking in this kind of code may not fully absolve the defendants, but the government must prove the defendants’ intent to carry out a corrupt agreement beyond a reasonable doubt – and juries sometimes want to see more than innuendo before convicting.

The government has also charged a crime called “honest services fraud” – essentially, a crime involving a public official putting their own financial interest above the public interest in their otherwise honest and faithful performance of their duties.

The alleged failure of Sen. Menendez to list the gifts, as required, on his Senate financial disclosure forms will be cited by prosecutors as evidence of “consciousness of guilt” – an attempt to conceal the transactions.

However, under a recent Supreme Court case involving former Gov. Bob McDonnell of Virginia for similar crimes, the definition of “official acts” under the bribery statute has been narrowly defined to mean only formal decisions or proceedings. That definition does not include less-formal actions like those performed by Sen. Menendez, such as meetings with Egyptian military officials.

The Supreme Court rejected an interpretation of official acts that included arranging meetings with state officials and hosting events at the Governor’s mansion or promoting a private businessman’s products at such events.

When it comes time for the judge to instruct the jury at the end of the trial, Sen. Menendez may well be able to argue that much of what he did not constitute “official acts” and therefore are not illegal under the bribery statute.

This case involves alleged favors done for a foreign country in exchange for money. Does that change this case from simple bribery to something more serious?

The issue of foreign military sales to Egypt may also present a constitutional obstacle to the government.

The indictment specifically cites Sen. Menendez’s role as chairman of the Senate Foreign Relations Committee and actions he took in that role in releasing holds on certain military sales to Egypt and letters to his colleagues on that issue. The Constitution’s Speech or Debate Clause protects members from liability or questioning when undertaking actions within the “legitimate legislative sphere” – which undoubtedly includes these functions.

While this will not likely be a defense to all the allegations, it could require paring the allegations related to this conduct. That would whittle away at a pillar of the government’s attempt to show Sen. Mendendez had committed abuse of office.

In fact, when the government has charged members of Congress with various forms of corruption, courts have rejected any reference to their membership on congressional committees as evidence against them.

Three men in suits, standing in front of a fire engine.
NJ Gov. Phil Murphy, left, seen here in 2018 with fellow Democrats Sens. Robert Menendez and Cory Booker, has called on Menendez to resign. AP Photo/Wayne Parry

How likely is Sen. Mendendez’ ouster from the Senate?

Generally, neither the House nor Senate will move to expel an indicted member before conviction.

There have been rare exceptions, such as when Sen. Harrison “Pete” Williams was indicted in the FBI ABSCAM sting operation from the late 1970s and early 1980s against members of Congress. He resigned in 1982 shortly before an expulsion vote. With current Democratic control of the Senate by a margin of just one seat, Sen. Menendez’ ouster seems unlikely even though the Democratic governor of New Jersey would assuredly appoint a Democrat to fill the vacancy.

“In the history of the United States Congress, it is doubtful there has ever been a corruption allegation of this depth and seriousness,” former New Jersey Sen. Robert Torricelli said. True?

That seems hyperbolic. The Menendez case is just the latest in a long line of corruption cases involving members of Congress.

In the ABSCAM case, seven members of the House and one Senator were all convicted in a bribery scheme. That scheme involved undercover FBI agents dressed up as wealthy Arabs, offering cash to Congressmembers in return for a variety of political favors.

In the Korean Influence Investigation in 1978 – when I served as House Counsel – the House and Department of Justice conducted an extensive investigation of influence peddling by Tongsun Park, a Korean national in which questionnaires were sent to every member of the House relating to acceptance of gifts from Park.

Going all the way back to 1872, there was the Credit Mobilier scandal that involved prominent members of the House and Vice President Schuyler Colfax in a scheme to reward these government officials with shares in the transcontinental railroad company in exchange for their support of funding for the project.

Stanley M. Brand does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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International

Von Der Leyen Speech Suggests Russia Dropped Nuke On Hiroshima 

Von Der Leyen Speech Suggests Russia Dropped Nuke On Hiroshima 

Von der Leyen just said what?…

This past Wednesday, President of the European…

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September 24, 2023

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Von Der Leyen Speech Suggests Russia Dropped Nuke On Hiroshima 

Von der Leyen just said what?...

This past Wednesday, President of the European Commission Ursula von der Leyen delivered a speech before the 2023 Atlantic Council Awards in New York, where she sounded the alarm over the specter of nuclear war centered on the Russia-Ukraine conflict. But while invoking remembrance of the some 78,000 civilians killed instantly by the atomic bomb dropped on Hiroshima at the end of WWII, she said her warning comes "especially at a time when Russia threatens to use nuclear weapons once again". She  actually framed the atomic atrocity in a way that made it sound like the Russians did it. Watch:

There was not one single acknowledgement in Von der Leyen's speech that it was in fact the United States which incinerated and maimed hundreds of thousands when it dropped no less that two atomic bombs on Japanese cities.

Here were her precise words, according to an Atlantic Council transcript...

You, dear Prime Minister, showed me the meaning of this proverb during the G7 summit in Japan last year. You brought us to your hometown of Hiroshima, the place where you have your roots and which has deeply shaped your life and leadership. Many of your relatives lost their life when the atomic bomb razed Hiroshima to the ground. You have grown up with the stories of the survivors. And you wanted us to listen to the same stories, to face the past, and learn something about the future.

It was a sobering start to the G7, and one that I will not forget, especially at a time when Russia threatens to use nuclear weapons once again. It is heinous. It is dangerous. And in the shadow of Hiroshima, it is unforgivable. 

The above video of that segment of the speech gives a better idea of the subtle way she closely associated in her rhetoric the words "once again" with the phrase "shadow of Hiroshima" while focusing on what Russia is doing, to make it sound like it was Moscow behind the past atrocities.

Via dpa

Russian media not only picked up on the woefully misleading comments, but the Kremlin issued a formal rebuke of Von der Leyen's speech as well:

In response to von der Leynen's remarks, Russian Foreign Ministry spokeswoman Maria Zakharova accused the European Commission president of making "no mention whatsoever of the US and its executioners who dropped the bombs on populated Japanese cities."

Zakharova responded on social media, arguing that von der Leyen's assertions on Moscow's supposed intentions to employ nuclear weapons "is despicable and dangerous" and "lies."

Some Russian embassies in various parts of the globe also highlighted the speech on social media, denouncing the "empire of lies" and those Western leaders issuing 'shameful' propaganda and historical revisionism.

Tyler Durden Sun, 09/24/2023 - 13:15

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