Weekly Roundup: Rivian fumbles, Manchin makes a stand, used car market updates

Weekly Roundup

Earlier this week: Rivian’s stock dropped to its lowest, falling roughly 92% from the initial trading of $130 in 2021, used car prices declined 8.7% from February of 2022, while EVs have dropped 13.9%, EV startup Lucid plans to lay off roughly 1,300 employees, or 18% of its workforce, and more headlines to stay on top of this week in automotive industry news.

1. Manchin threatens legal action over upcoming EV tax credit revisions

Senator Joe Manchin has threatened legal action over upcoming rule changes to electric vehicle tax credits. In the coming weeks, the U.S. Treasury will announce guidance updates for EV battery and mineral sourcing requirements in the Inflation Reduction Act. The new rules will require 50% of the battery to be assembled in the U.S. and 40% of the materials to be procured domestically or in countries with whom the U.S. has a free trade agreement. Manchin criticized the anticipated revisions for allowing foreign manufacturers to profit from the bill. Read Here

2. Analysts makes cautiously optimistic prediction for Q1 auto sales

According to Cox Automotive’s first quarter sales forecast, the U.S. car market has performed better than analysts expected at the end of last year. Cox Auto estimates that sales volume will grow 5.7% compared to the same period in 2022, with sales expected to reach a total of 3.5 million units by the end of the quarter. The industry is expected to sell 1.3 million vehicles this month alone, up 2.6% from last March. The Seasonally Annual Adjusted Rate (SAAR) is predicted to reach 15 million, an increase of 6%. Read Here

3. EV startup Lucid plans to lay off approximately 1,300 employees

In an effort to reduce running costs and preserve cash before launching a second model next year, EV startup Lucid plans to lay off roughly 1,300 employees, or 18% of its workforce. By the end of Q2, the California-based company anticipates having concluded reducing its headcount. In an email written by Chief Executive Peter Rawlinson to employees, “the cuts would occur across the company’s U.S. operations,” which include executives. Read Here

4. Used car prices continue to fall in 2023, EVs impacted most

According to a new report from iSeeCars.com, used car prices have fallen steadily over the last year, with electric vehicles being the most affected. According to the report, used car prices have declined 8.7% from February of 2022, while EVs have dropped 13.9%. This translates to an average loss of $3,024 in preowned values. While prices fluctuated throughout last year, the current downward trend has lasted since November. The iSeeCars.com study analyzed half-year and full-year trends for used car prices. Out of all vehicles counted in the last six months, the $41,337 Tesla Model 3 electric sedan has dropped the most since September, costing 21.5% or $11,302 less than its price in 2022. Read Here

5. Rivian stock prices hit all time low while company mulls relocation

Rivian stock prices have dropped to their lowest, falling roughly 92% from the initial trading of $130 in 2021. Earlier this month, Rivian shares traded as low as $13.03, even as other electric vehicle brands such as Polestar and Tesla have made significant gains since the start of the year. The automaker has a current market cap of approximately $12.7 billion, 3.1 times its predicted sales total. The business has encountered multiple supply chain disruptions, and continues to suffer increasingly mounting operating losses. Read Here

6. Exclusive: What is the future of electric mobility in automotive? — Peter Leyden

It’s easy for business leaders and owners to get caught in the here-and-now instead of planning for the future, especially in light of the societal and economic transformations over the past few years. On this episode of Inside Automotive, we’re joined by Peter Leyden, futurist, entrepreneur, and foresight strategist. Leyden is also the former managing editor for WIRED Magazine, founder of media startup Reinvent, and co-author of The Long Boom: A Vision For The Coming Age Of Prosperity. Today he shares his perspective on the changes that might be coming in the next 25 years. Watch Now

7. How technology is changing auto dealership recruiting and retailing strategies

Technology and the global pandemic have accelerated much of today’s customer and employee expectations. On this edition of Inside Automotive, we’re pleased to welcome back Adam Arens, President of Patriot Automotive Group, to share how he’s continued to adapt in today’s market and land his stores on the list of best dealerships to work for. Watch Now

8. Customer Data Platform (CDP) building blocks: Identity, entity and household resolutions

Now that we have covered the benefits a Customer Data Platform (CDP) can provide to dealers, it is time to examine the basic building blocks which form these powerful tools. On this episode of Auto Marketing Now, host Brian Pasch, founder of PCG Companies and auto marketing expert, continues his new series exploring CDPs, what they have to offer and why dealers should start using these products. Watch Now

9. Why Pennsylvania dealers are keeping an eye on OEMs and lawmakers — John Delvin | PAA

On this episode of Inside Automotive, host Jim Fitzpatrick is joined by John Devlin, President of the Pennsylvania Automotive Association (PAA) to discuss the state of his local car market and how dealers are handling OEM and legal challenges. While he remains uncertain about the future, Devlin notes that early year sales numbers for Pennsylvania dealers have been abnormally high. However, he notes that consumer interest could soften as the year progresses, suggesting the positive trends could be short-lived. Watch Now

10. The road ahead for Jaguar and Hyundai considers its own EV charging network

O this week’s edition of The Future of Automotive, with Steve Greenfield, Founder, and CEO of Automotive Ventures, an auto technology advisory firm that helps entrepreneurs raise money and maximize the value of their companies. First up this week, we heard that Jaguar has started the process of reducing the number of Jaguar dealership locations by offering their dealers extra allocations of hot-selling Land Rover units if they give up their Jaguar franchises. It’s unclear how many dealers have already accepted the offer, but we understand that it could be as many as 40 locations so far. Watch Now