EV Universe Electric Newsletter #019

• Innovative design: Polestar 4 introduces a new approach to SUV coupé design, combining the aerodynamics of a coupé and the space of an SUV to create a unique driving experience. The car’s immersive rear occupant experience is achieved through design elements such as the elimination of the rear window, adjustable ambient lighting inspired by the solar system, and reclining seats that cocoon rear occupants in an intimate environment.
• Sustainable materials: Polestar 4 incorporates more circular and low-carbon materials than traditional cars, including recycled PET, bio-attributed vinyl, and Nappa leather with animal welfare-secured sourcing. The car features a mono-material approach to interior materials, which enables easier and more efficient recycling. Polestar is committed to transparency in its supply chain and will publish a full lifecycle assessment (LCA) of the car’s carbon footprint in 2024.
• Impressive performance: Polestar 4 is the fastest production car that the brand has developed to date, with a 0-100 km/h sprint time of just 3.8 seconds. The car is equipped with a 102 kWh battery and has a preliminary range target of up to 560 km WLTP. Polestar 4 offers a choice of dual- or single-motor versions, with the dual-motor version featuring all-wheel drive and semi-active suspension for added control.
• Advanced technology: Polestar 4 features a host of advanced technology features, including a 15.4-inch landscape-oriented infotainment system powered by Android Automotive OS and the Snapdragon Cockpit Platform. The car also offers a leading connected experience, with Google built-in, including Google Assistant, Google Maps, and Google Play. Polestar 4 also comes with a Harman Kardon audio system and over-the-air (OTA) updates that allow for new features and improvements to be sent remotely to all vehicles.
• Strong safety features: Safety is a top priority for Polestar, and Polestar 4 is no exception. The car features leading safety technology, including a SuperVision Advanced Driver Assistance System from Mobileye, up to nine airbags, and a driver monitoring system that tracks the driver’s eyes and head movements to help avoid incidents related to fatigue or incapacitation. Polestar 4 also offers a head-up display (HUD) with a snow mode function that switches the text color from white to yellow, improving visibility in snowy environments.

“Tesla Doubles Down on Price War Amidst Rising Competition and Economic Uncertainty”

• Tesla cuts prices to spur demand and fend off competition. During the first quarter of 2023, Tesla aggressively slashed prices in markets such as the United States and China to spur demand and defend against rising competition, resulting in its lowest quarterly gross margin in two years. CEO Elon Musk affirmed that the company would prioritize sales growth over profit in a weak economy, stating that it is better to shift a large number of cars at lower margins and harvest that margin in the future as Tesla perfects autonomy.
• Tesla’s automotive gross margin declined. Tesla’s automotive gross margin in the first quarter of 2023, excluding regulatory credits, fell to 19% from 24% in the previous quarter. The company did not disclose its automotive gross margin figure, which is closely monitored by investors. Musk attributed the weakness to the current economic situation, which makes it difficult to provide margin outlook.
• Tesla faces pressure to cut prices further. Analysts suggest that Tesla may need to reduce prices further to compete in a price war, especially in China, where local EV manufacturers are gaining ground. The EV maker’s new factories in Berlin and Texas are churning out cars, and its record inventory of $14.38 billion indicates the need to increase sales further.
• Tesla aims to cut assembly costs by half. Tesla announced plans in 2020 to produce a new battery cell that would halve the cost of the most expensive part of an EV. However, the company has been struggling to ramp up production for those cells. Tesla plans to cut assembly costs by half but has not specified when it will launch affordable electric vehicles. Musk expects to hold a delivery event for Cybertruck in the third quarter of 2023.
• Tesla’s net profit declines due to increased costs. Tesla’s net profit for Q1 2023 dropped by nearly a quarter to $2.51 billion compared to the previous year due to higher raw-materials, logistics, and warranty costs, as well as the production ramp-up of its 4680 battery cells. Despite this decline, the company still believes that its operating margin will remain the highest among major car manufacturers. Tesla burned $154 million in cash during the quarter, but it was offset by a $1.6 billion gain from “proceeds from maturities of investments.”

“Maserati Electrifies the Shanghai Auto Show with 100% Electric Lineup Debut“