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Business

New suppliers race to plug in to electric car market

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WOKING, England, Jan 23 (Reuters) – The global auto industry has committed $1.2 trillion to developing electric vehicles (EVs), providing a golden opportunity for new suppliers to grab contracts providing everything from battery packs to motors and inverters.

Startups specialising in batteries and coatings to protect EV parts, and suppliers traditionally focused on niche motorsports or Formula One (F1) racing, have been chasing EV contracts. Carmakers design platforms to last a decade, so high-volume models can generate large revenues for years.

The next generation of EVs is due to hit around 2025 and many carmakers have sought help plugging gaps in their expertise, providing a window of opportunity for new suppliers.

“We’ve gone back to the days of Henry Ford where everyone is asking ‘how do you make these things work properly?’,” says Nick Fry, CEO of F1 engineering and technology firm McLaren Applied.

“That’s a huge opportunity for companies like us.”

Bought from McLaren by private equity firm Greybull Capital in 2021, McLaren Applied has adapted an efficient inverter developed for F1 racing for EVs. An inverter helps control the flow of electricity to and from the battery pack.

The silicon carbide IPG5 inverter weighs just 5.5 kg (12 lb) and can extend an EV’s range by over 7%. Fry says McLaren Applied is working with around 20 carmakers and suppliers, and the inverter will appear in high-volume luxury EV models starting January 2025.

Mass-market carmakers often prefer to develop EV components in-house and own the technology themselves. After years of pandemic-related parts shortages, they are wary of over-reliance on suppliers.

“We just can’t afford to be reliant on third parties making those investments for us,” said Tim Slatter, head of Ford (F.N) in Britain.

Traditional suppliers, such as German heavyweights Bosch and Continental (CONG.DE), are also investing heavily in EVs and other technologies to stay ahead in a fast-changing industry.

But smaller companies say there are still opportunities, particularly with low-volume manufacturers that cannot afford huge EV investments, or luxury and high-performance carmakers seeking an edge.

Croatia’s Rimac, an electric hypercar maker part-owned by Germany’s Porsche AG (P911_p.DE) that also supplies battery systems and powertrain components to other automakers, says an undisclosed German carmaker will use a Rimac battery system in a high-performance model – with annual production of around 40,000 units – starting this year, with more signed up.

“We need to be 20%, 30% better than what they can do and then they work with us,” CEO Mate Rimac says. “If they can make a 100-kilowatt hour battery pack, we must make a 130-kilowatt pack in the same dimensions for the same cost.”

NO TIME TO LOSE

Some suppliers like Cambridge, Massachusetts-based Actnano have had long relationships with EV pioneer Tesla (TSLA.O). Actnano has developed a coating that protects EV parts from condensation and its business has spread to advanced driver-assistance systems (ADAS), as well as other carmakers including Volvo (VOLCARb.ST), Ford, BMW (BMWG.DE) and Porsche.

California-based startup CelLink has developed an entirely automated, flat and easy-to-install “flex harness”, instead of a wire harness to group and guide cables in a vehicle. CEO Kevin Coakley would not identify customers but said CelLink’s harnesses had been installed in around a million EVs. Only Tesla has that scale.

Coakley said CelLink was working with U.S. and European carmakers, and with a European battery maker on battery wiring.

Others are focused on low-volume manufacturers, like UK startup Ionetic, which develops battery packs that would be too expensive for smaller companies to make themselves.

“Currently it costs just too much to electrify, which is why you see some manufacturers delaying their electrification launch,” CEO James Eaton said.

Since 1971, Swindon Powertrain has developed powerful motorsports engines. But it has now also developed battery packs, electric powertrains, e-axles and is working with around 20 customers, including carmakers and an electric vertical take-off and landing (eVTOL) aircraft maker.

“I realized if we don’t embrace this, we’re going to end up working for museums,” said managing director Raphael Caille.

But time may be running out.

Mate Rimac says major carmakers scrambled in the last three years to roll out EVs and now have strategies largely in place.

“For those who haven’t signed projects, I’m not sure how long the window of opportunity will remain open,” he said.

($1 = 0.8226 pounds)

Reporting by Nick Carey
Editing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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Business

Exclusive: Geely plans to turn maker of London black cabs into EV powerhouse

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COVENTRY, England, Jan 23 (Reuters) – China’s Geely (0175.HK) is planning a big investment to turn the maker of London’s iconic black taxis into a high-volume, all-electric brand with a range of commercial and passenger vehicles, executives at the unit told Reuters.

London Electric Vehicle Company (LEVC) also aims to expand its suite of services, which include cars arranging their own maintenance and recognising their owner’s interests to help them book activities.

“We need a developed product portfolio. We need to make big investments in terms of the technology and infrastructure,” LEVC Chief Executive Alex Nan said at the taxi maker’s headquarters in Coventry, central England. “Geely will make consistent investments into LEVC because this is a very unique project.”

LEVC builds a hybrid taxi model that starts at around 66,000 pounds ($81,500), which has a battery providing 64 miles (103 km) of range and a petrol range-extender giving it a total range of over 300 miles. The company’s business was hit hard by the pandemic and it laid off 140 staff in October.

Nan said LEVC and Geely would seek to attract other investors to its zero-emission portfolio and would look to partner with other carmakers to develop new technology.

Executives said the size of Geely’s investment would be disclosed later. So far the Chinese group, which took full control of LEVC in 2013, has invested 500 million pounds in it.

“Geely fully supports the new transition strategy laid out by LEVC’s board and executive team,” Geely said in a statement.

In 2021, Geely launched a 2 billion pound investment in another unit, niche British luxury sports carmaker Lotus, to massively expand production of its sports cars and build high-end SUVs and sedans in Britain and China. Geely is following a similar path in its plans to grow LEVC, executives said.

Britain’s EV ambitions were dealt a blow last week when startup Britishvolt, which had planned to build a major battery factory in northeast England, filed for administration.

“We need to make sure the UK environment as a whole is competitive and has its position on the world stage,” said LEVC managing director Chris Allen.

READY TO ACCELERATE

Geely owns multiple brands including Volvo (VOLCARb.ST) and – via a joint venture with Volvo – Polestar . Zeekr, another brand in the group, filed for a U.S. initial public offering last month.

As such, Geely faces a complexity that larger EV makers BYD (002594.SZ) and Tesla (TSLA.O) have avoided.

Allen said LEVC was exploring a range of commercial and passenger car models on a common electric platform. It can lean on other group brands that already have EVs to “move forward in a fast, agile way”.

The company already uses an infotainment system and software developed by Volvo and a steering wheel from the Swedish carmaker, allowing it to cut costs, Allen said.

“There’s nothing we couldn’t deliver in a very short time period if we needed to, but it’s just a question of timing,” he said, adding LEVC could easily have a full range of EVs on the road within five years.

“But in two years time, is the industry going to be ready, is the charging infrastructure going to be there, is consumer confidence going to be there?”

LEVC currently has the capacity to build 3,000 taxis a year running on a single shift at its Coventry factory. Allen said that could easily be increased to 20,000 and the plant had room to expand. It could also lean on production in China as Lotus has, Allen said. A major car plant produces on average around 300,000 vehicles per year.

“There’s a huge amount of value in our product that hasn’t ever really been maximised,” Allen said. “This is about growing LEVC into a much more recognizable brand on a global scale and expanding our product offering into as many spaces as we can.”

($1 = 0.8095 pounds)

Reporting by Nick Carey, Additional reporting by Zoey Zhange in Shanghai and Norihiko Shirouzu in Beijing
Editing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.

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World

Ukraine pushes for tanks as holdout Germany says new minister to decide

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  • New German defence minister announced as Boris Pistorius
  • Wary Berlin holding up tanks from other European allies
  • Death toll from missile strike in Dnipro rises to 44

DNIPRO, Ukraine/KYIV, Jan 17 (Reuters) – Ukraine came a step closer on Tuesday in its bid to win a fleet of modern battle tanks it hopes could turn the course of the war with Russia, after the West’s big holdout Germany said this would be the first item on its new defence minister’s agenda.

In the central city of Dnipro, authorities called an end to the search for survivors in the ruins of an apartment building destroyed during Russian missile attacks on Saturday.

Forty-four people were confirmed killed and 20 remain unaccounted for in the attack, the deadliest for civilians of a three-month Russian missile bombardment campaign, according to Ukrainian officials. Seventy-nine people were wounded and 39 rescued from the rubble.

Nearly 11 months after Russia invaded, Kyiv says a fleet of Western battle tanks would give its troops the mobile firepower to drive Russian troops out in decisive battles in 2023.

German-made Leopard battle tanks, workhorse of armies across Europe, cannot be delivered without authorisation from Berlin, which has so far demurred.

With Western allies meeting at a U.S. air base in Germany on Friday to pledge military support for Ukraine, Berlin is under intense pressure to lift its objections this week.

The decision sits on the desk of Germany’s new Defence Minister Boris Pistorius, named on Tuesday to replace Christine Lambrecht, who quit after comments critics called insensitive.

“When the person, when the minister of defence, is declared, this is the first question to be decided concretely,” German Economy Minister Robert Habeck told Deutschlandfunk radio broadcaster on Tuesday, before the appointment was announced.

FEARS OF ESCALATING CONFLICT

In his first comments on the job, Pistorius, a regional politician viewed as close to Chancellor Olaf Scholz, made no mention of weapons for Ukraine: “I know the importance of the task,” he said in a statement. “It is important to me to involve the soldiers closely and to take them with me.”

Pistorius will host U.S. Defense Secretary Lloyd Austin on Thursday ahead of Friday’s meeting of allies at Ramstein air base.

Germany has been cautious about approving weapons that could be seen as escalating conflict.

Scholz, speaking on Tuesday in an interview for Bloomberg TV, confirmed that discussions with Germany’s allies on tanks were ongoing but should not be conducted in public.

The Kremlin said last week that new deliveries of weapons, including French-made armoured vehicles, to Kyiv would “deepen the suffering of the Ukrainian people” and would not change the course of the conflict.

Vladimir Solovyev, a pro-Kremlin presenter on Rossiya 1 state television, said any Western countries which supplied more advanced weapons to Ukraine should be considered legitimate targets for Russia.

[1/5] A view shows a kitchen inside an apartment block heavily damaged by a Russian missile strike, amid Russia’s attack on Ukraine, in Dnipro, Ukraine January 15, 2023. REUTERS/Yan Dobronosov

Since President Vladimir Putin ordered troops into Ukraine on Feb. 24, the United States and its allies have given tens of billions of dollars’ worth of weaponry including rocket systems, drones, armoured vehicles and communications systems.

Ukraine’s top general, Valeriy Zaluzhnyi, said he had outlined his forces’ “urgent needs” in a first personal meeting on Tuesday in Poland with the chairman of the U.S. Joint Chiefs of Staff, General Mark Milley.

Poland and Finland have already said they would send Leopards if Berlin gives re-export approval.

Separately, Dutch Prime Minister Mark Rutte told U.S. President Joe Biden on Tuesday the Netherlands would join the United States and Germany in sending Patriot missiles to Ukraine.

British Foreign Secretary James Cleverly said NATO allies were conveying a clear message to Putin by boosting their arms supplies to Ukraine.

“The message we’re sending to Putin… is that we made a commitment to support Ukrainians until they are victorious,” Cleverly told a forum at the Center for Strategic and International Studies in Washington.

A senior Ukrainian official blamed Russia for carrying out the bulk of more than 2,000 cyberattacks on Ukraine in 2022, speaking at a news conference he said was itself delayed because of a cyberattack. There was no immediate comment on his allegations from Moscow.

CUDDLY TOYS AT MEMORIAL

Tens of thousands of people have been killed and millions driven from their homes since Russia launched last February what it calls a “special military operation” to eliminate security threats in Ukraine. Kyiv and its Western backers call Russia’s actions a land grab.

Ukrainian forces drove Russian troops back during the second half of 2022, but over the past two months the front lines have largely been frozen in place despite both sides enduring heavy losses in relentless fighting.

Moscow has turned since October to a tactic of raining missiles down on Ukrainian cities far from the front lines in the east and south, mainly targeting electricity infrastructure.

Russia says it aims to reduce Ukraine’s ability to fight; Kyiv says the attacks serve no military purpose and are intended to harm civilians, a war crime.

In Dnipro, residents left flowers and cuddly toys at a makeshift memorial near the apartment block devastated during a wave of missile attacks on Saturday.

Hundreds of mourners bade farewell to boxing coach Mykhailo Korenovskyi, killed in a strike, while footage showed the kitchen of his apartment, decorated in bright yellow colours, now exposed to the air after the external wall was torn off.

A recent family video, filmed in the same kitchen, showed Korenovskyi’s daughter smiling and blowing out four candles on her birthday cake while he stood behind her, holding another child in his arms.

Moscow denies intentionally targeting civilians, and blamed Ukraine’s air defences for the missile that hit the apartment block. Kyiv says it was hit by a notoriously inaccurate Russian anti-ship missile for which Ukraine has no defences.

Writing by Peter Graff and Gareth Jones; Editing by Nick Macfie, Alex Richardson and Mark Heinrich;

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World

German car giants and Asian battery kings: a match made in Hungary

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  • German, Chinese and S.Koreans head to Hungary
  • They dominate auto investment and subsidies
  • Orban’s Hungary keen to court foreign business

BERLIN/BUDAPEST, Dec 13 (Reuters) – German automakers and Asian battery suppliers are getting together in Hungary in a multi-billion-dollar marriage of convenience to drive their electric ambitions.

The companies are flocking to central Europe, where Viktor Orban’s government is defying Western wariness of China and offering generous benefits to host foreign operations and stake Hungary’s claim as a global centre for electric vehicles (EVs).

Investment in the Hungarian auto industry is being dominated by three countries – Germany, a champion carmaker, plus China and South Korea, EV battery leaders way ahead of European rivals.

Companies from those three countries have accounted for 29 out of the 31 cash subsidies handed out by Hungary for major investments in its auto and battery sector over the past decade, according to a Reuters analysis of government data that shows the scale of German, Chinese and Korean convergence there.

“Cathodes, anodes, separators, assembly lines, the full battery supply chain is here,” said Dirk Woelfer of the German-Hungarian Chamber of Commerce in Budapest. “This is a foot in the door to Europe.”

Recipients of such subsidies included the likes of German automakers BMW (BMWG.DE) and Mercedes-Benz (MBGn.DE), and battery makers such as China’s BYD and Korean rival Samsung SDI (006400.KS). The median subsidy level has been 15% of investment.

In total, Hungary has received over 14 billion euros ($15 billion) in foreign direct investment into its battery sector alone in the past six years, according to government figures.

Major investments are broadly classed as those worth over 5-10 million euros, varying with factors such as jobs created.

State incentives and the opportunity for automakers and battery suppliers to work next door to each other is proving a strong pull, according to interviews with about 20 industry players and consultants in Germany, Hungary, China and South Korea.

China’s CATL (300750.SZ), the world’s No. 1 EV battery maker, and Korean battery giants SK Innovation (096770.KS) and Samsung SDI, all told Reuters that the planned proximity to German carmakers was a key factor in their decisions to invest in Hungary, as well as being able to source separators and other components there.

CATL is investing $7.6 billion to build Europe’s largest battery plant in Hungary. This plant and the $2.1 billion BMW factory will both be sited in the city of Debrecen, which is attracting an ecosystem of suppliers, ranging from makers of brakes and battery cathodes to industrial machinery.

Mercedes-Benz is converting its factory in Kecskemet to produce electric cars, while Volkswagen’s (VOWG_p.DE) Audi is making cars and electric motors in Gyor.

Such big business could present a boon for Prime Minister Orban’s government as the country faces its toughest economic environment in more than a decade, with inflation running above 20%, the economy slowing and EU funds in limbo.

Yet the Hungarian EVs project also faces stiff obstacles, according to many of the industry insiders.

One key concern is the huge demands that massive battery plants will place on the electricity grid, which needs to shift away from fossil fuels towards renewables to meet the net-zero emissions targets of much of the auto industry, the people said.

A lack of specialised workers in Hungary to work in battery cell manufacturing could also drag on capacity, they added.

HIPA, the Hungarian Foreign Ministry agency responsible for attracting investments in areas ranging from batteries and cars to logistics, did not respond to Reuters queries about the EV industry.

‘CHINA’S MADE GOOD STEPS’

Hungary’s welcome to Asian battery makers might jar with concerns expressed by Brussels and Berlin about the perils of Europe becoming too dependent on China and other foreign powers, particularly in technologies central to the green transition.

Still, for now, the need to ramp up EV output leaves the European auto industry little choice but to source from Asian players, said Csaba Kilian of Hungary’s automotive association.

“I absolutely agree that European manufacturers should have their own sources … but it’s a competition, and China has made good steps,” he added. “There is a learning curve.”

Europe should have a EV battery manufacturing capacity of 1,200 gigawatt hours (GWh) by 2031 if current plans come to fruition, outstripping expected demand of 875 GWh, Benchmark Mineral Intelligence (BMI) estimates. But of that 1,200 GWh, 44% will be provided by Asian companies with factories in Europe, ahead of homegrown firms on 43% and U.S. pioneer Tesla (TSLA.O) with 13%, according to a Reuters calculation based on BMI data.

The prospects for developing a battery sector in Germany have been set back by record energy there as a result of the loss of Russian gas, according to autos consultants at Boston Consulting Group and Berylls Strategy Advisors.

Hungary offers a comparatively stable energy system bolstered by nuclear energy, as well as high subsidies and Europe’s lowest corporate tax rate of 9%.

The entire battery supply chain has come to the country, said Ilka von Dalwigk, policy manager at the European Battery Alliance, launched by the European Union in 2017 to kick-start a homegrown industry.

“Everything is located there. When we look at the forecast for 2025 and 2030, it looks like it will have one of the largest production capacities in Europe,” she added.

“It might very well be that Hungary is in fact the next big battery production cluster in Europe.”

Asked about concerns about reliance on Asia for technology, an EU official said the bloc – which must approve member state subsidies to investors – had a system in place to cooperate and exchange information on investments from non-EU countries that may affect security.

The European Commission is currently in talks with Hungary over the size of the subsidy the country will offer to CATL for building the Debrecen plant, the official added.

‘SENDING THE WRONG SIGNAL’

For some Western companies, setting up shop in Hungary is a tough decision.

German autos supplier Schaeffler said it was on the verge of setting up its primary electric motor plant in Hungary rather than Germany in August because of the appeal of Hungary’s incentives, but decided on Germany for fear of sending “the wrong signal” to Germans who fear a loss of jobs to overseas.

Other industry players expressed a range of concerns over potential pitfalls for the burgeoning Hungarian auto industry as factories ramped up, including the power grid issue.

Batteries, in particular, are highly energy-intensive parts of EVs to produce, requiring high amounts of power for the drying the materials and machine operation.

Hungary’s sources of energy in 2021 comprised 80% fossil fuels, 14.5% nuclear and 3.6% solar, according to a Reuters calculation of data from the BP Statistical Review of World Energy.

The mix spells trouble for carmakers who will soon need to showcase carbon-free credentials across their supply chains under new German and European legislation.

Hungarian Foreign Minister Peter Szijjarto met senior executives from BMW and auto suppliers including Schaeffler and Knorr-Bremse in Munich last month, ahead of the German carmaker announcing it was beefing up its investment in the country.

Topics discussed included plans to improve logistics infrastructure in Hungary and increasing the amount of renewables energy used for the power grid, according to one of the companies that attended.

When BMW first announced its plan to build its Debrecen plant, in 2018, the government committed to spending around 135 billion forints on improving local infrastructure, according to calculations by the German-Hungarian Chamber of Commerce.

On the battery side, CATL told Reuters it was considering developing solar power with local partners in Hungary.

Despite the risks, Alexander Timmer, a partner at Munich-based consultants Berylls Strategy Advisors who has worked on several autos and battery projects in Hungary, said the country presented an appealing package.

“The combination of cost advantages, state subsidies, and closeness to automakers’ plants makes Hungary increasingly attractive to battery producers, he added.

($1 = 397.54 forints; $1 = 0.9483 euros)

Reporting by Victoria Waldersee in Berlin, Gergely Szakacs in Budapest; Additional reporting by Heekyong Yang, Zhang Yan; Editing by Pravin Char

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Oil prices fall on economic fears, dollar strength

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LONDON, Dec 6 (Reuters) – Oil prices fell in a volatile market on Tuesday as the U.S. dollar stayed strong and economic uncertainty offset the bullish impact of a price cap placed on Russian oil and the prospects of a demand boost in China.

Brent crude futures were down 61 cents, or 0.74%, to $82.07 a barrel at 1447 GMT. West Texas Intermediate crude (WTI) fell 51 cents, or 0.66%, to $76.42.

Earlier in the session, both contracts fell by more than $1, while Brent rose by more than $1 in Asian trading.

Crude futures on Monday recorded their biggest daily drop in two weeks after U.S. services industry data indicated a strong U.S. economy and drove expectations of higher interest rates than recently forecast.

The U.S. dollar index edged lower on Tuesday but was still buoyed by bets of higher interest rates, following the biggest rally in two weeks on Monday.

A stronger greenback makes dollar-denominated oil more expensive for buyers holding other currencies, reducing demand for the commodity.

“Inflationary headwinds could still cause global economic turbulence in coming months,” said Tamas Varga of oil broker PVM, but added that “China’s gradual COVID opening is a tentatively positive development”.

In China, more cities are easing COVID-19-related curbs, prompting expectations of increased demand in the world’s top oil importer.

The country is set to announce a further relaxation of some of the world’s toughest COVID curbs as early as Wednesday, sources said.

The market was weighing the production impact of a price cap of $60 per barrel on Russian crude imposed by the Group of Seven (G7), the European Union and Australia, contributing to market volatility.

The price cap adds to the disruption caused by the EU’s embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain.

The embargo is likely to tighten market supply as the EU has to source crude from elsewhere, Commerzbank analyst Carsten Fritsch said in a note.

Russia has declared its intention not to sell oil to anyone who signs up to the price cap.

The threat of losing insurance will limit Russia’s access to the tanker market and could reduce crude exports by 500,000 barrels per day from February levels, said analysts from Rystad Energy in a note.

Russia’s January-November oil and gas condensate production rose 2.2% from a year earlier to 488 million tonnes, according to Deputy Prime Minister Alexander Novak, who expects a slight output decline following the latest sanctions.

Reporting by Rowena Edwards in London, additional reporting by Muyu Xu in Singapore; editing by Jason Neely and Barbara Lewis

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Business

Musk delivers first Tesla truck, but no update on output, pricing

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  • Tesla ships first Semi to PepsiCo five years after unveiling it
  • No details on orders or capacity for electric truck
  • Semi uses existing Tesla motors, to feature new Supercharger

Dec 1 (Reuters) – Tesla Inc (TSLA.O) Chief Executive Elon Musk delivered the company’s first heavy-duty Semi on Thursday to PepsiCo (PEP.O) without offering updated forecasts for the truck’s pricing, production plans or how much cargo it could haul.

Musk, who appeared onstage at an event at Tesla’s Nevada plant, said the battery-powered, long-haul truck would reduce highway emissions, outperform existing diesel models on power and safety and spin-off a fast-charging technology Tesla would use in its upcoming Cybertruck pickup.

“If you’re a trucker and you want the most badass rig on the road, this is it,” Musk said, noting that it was five years since Tesla had announced it was developing the all-electric truck. Still, industry experts remain skeptical that battery electric trucks can take the strain of hauling hefty loads for hundreds of miles economically.

At Musk’s first Tesla reveal since taking over Twitter – an acquisition some investors worry has become a distraction – the company did not announce pricing for the Semi, provide details on variants of the truck it had initially projected or supply a forecast for deliveries to PepsiCo or other customers. Tesla said it would begin using the Semi to ship parts to its plant in Fremont, California.

In 2017, Tesla had said the 300-mile range version of the Semi would cost $150,000, and the 500-mile version $180,000, but Tesla’s passenger electric vehicle prices have increased sharply since then.

Robyn Denholm, chair of Tesla, recently said the automaker might produce 100 Semis this year. Musk has said Tesla would aim to produce 50,000 of the trucks in 2024.

PepsiCo, which completed its first cargo run with the Tesla truck to deliver snacks for those attending the Nevada launch event, had ordered 100 trucks in 2017.

Brewer Anheuser-Busch (ABI.BR), United Parcel Service Inc (UPS.N) and Walmart Inc (WMT.N) were among other companies that had reserved the Semi. Tesla did not provide details on orders or deliveries to customers, nor an estimate on what the total cost of ownership for future buyers would be compared to diesel alternatives.

‘NOT IMPRESSIVE’

Musk said the Semi has been doing test runs between Tesla’s Sparks, Nevada factory and its plant in Fremont, California. Tesla said it had completed a 500-mile drive on a single charge, with the Semi and cargo weighing in at 81,000 pounds in total.

Tesla did not disclose the weight of an unloaded Semi, one key specification analysts had hoped to learn and an important consideration for the efficiency of electric trucks.

Musk has spoken in the past about the prospect of fully autonomous trucks. Tesla did not provide details on how Tesla’s driver assistance systems would function in the Semi it unveiled on Thursday or future versions.

[1/5] Tesla Chief Executive Elon Musk waves near Tesla Semi electric trucks during a live-streamed unveiling in Nevada, U.S. December 1, 2022, in this still image taken from video. Tesla/Handout via REUTERS

The Semi delivery presentation ended without Musk taking questions, as he often does at Tesla events.

“Not very impressive – moving a cargo of chips (average weight per pack 52 grams) cannot in any way be said to be definitive proof of concept,” said Oliver Dixon, senior analyst at consultancy Guidehouse.

Tesla had initially set a production target for 2019 for the Semi, which was first unveiled in 2017. In the years since, rivals have begun to sell battery-powered trucks of their own.

Daimler’s (MBGn.DE) Freightliner, Volvo (VOLVb.ST), startup Nikola (NKLA.O) and Renault (RENA.PA) are among Tesla’s competitors in developing alternatives to combustion-engine trucks.

Walmart (WMT.N), for instance, has said it has been testing Freightliner’s eCascadia and Nikola’s Tre BEV trucks in California.

‘LIKE A CHEETAH’

The Semi is capable of charging at 1 megawatt and has liquid-cooling technology in the charging cable in an updated version of Tesla’s Supercharger that will be made available to the Cybertruck, Musk said. The Cybertruck is scheduled to go into production in 2023.

Trucks in Semi’s category represent just 1% of U.S. vehicle sales but 20% of overall vehicle emissions, Tesla said.

Tesla said other, future vehicles would use powertrain technology developed for the Semi without providing details. The Semi uses three electric motors developed for Tesla’s performance version of its Model S, with only one of them engaged at highway speed and two in reserve for when the truck needs to accelerate, a feature that makes the truck more energy-efficient, Musk said.

“This thing has crazy power relative to a diesel truck,” Musk said. “Basically it’s like an elephant moving like a cheetah.”

In a slide displayed as part of Musk’s presentation, Tesla showed an image of a future “robotaxi” in development with a mock-up of the future car covered under a tarp.

The presentation took place after Tesla shares closed at $194.70. The stock has fallen about 45% so far this year, losing about $500 billion in market capitalisation, down to about $615 billion.

Among factors cited by investors have been Musk’s sales of Tesla shares to finance his takeover of Twitter, signs that a slowing global economy has started to cut into demand for Tesla’s premium-priced cars, and a warning by the company that it might not meet its target to grow deliveries by 50% this year.

Reporting by Akash Sriram in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Kenneth Maxwell

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World

Myanmar junta frees Australian economist, former UK envoy in mass amnesty

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  • Australian held for 650 days for state secrets breach
  • Opponents sceptical of junta’s motives
  • Turnell headed for Australia – PM
  • Amnesty a bright spot at ‘incredibly dark time’ – Blinken

Nov 17 (Reuters) – Myanmar’s ruling military on Thursday freed a former British ambassador, a Japanese filmmaker and an Australian economic adviser to deposed leader Aung San Suu Kyi, officials said, among nearly 6,000 prisoners included in a mass amnesty.

Australia said economist Sean Turnell left Myanmar on Thursday and had arrived in neighbouring Thailand, while a diplomatic source confirmed former British envoy Vicky Bowman had also left the country.

Myanmar’s state-run MRTV showed footage of the pair as well as Japan’s Toru Kubota, signing exit documents with officials. The United States said its citizen, Kyaw Htay Oo, was released.

Turnell was arrested a few days after the army seized power from Suu Kyi’s elected government in February last year, ending a decade of tentative democracy.

The coup sparked chaos and a bloody army crackdown on dissent that has drawn international condemnation and fuelled an armed resistance movement against the military.

Australian Prime Minister Anthony Albanese thanked the leaders of Thailand and Cambodia for pressuring the military to free Turnell, who was found guilty of a state secrets violation and sentenced in September to three years in jail.

“I’ve just spoken to Sean Turnell, who has been released from 650 days of unfair, unjust imprisonment in Myanmar,” Albanese told reporters in Bangkok, where he is attending the Asia-Pacific Economic Cooperation summit.

“He will travel overnight to Australia to be with his family.”

State-controlled media said the amnesty included 5,774 prisoners and foreigners were released “for the relationship with other countries and also for humanitarian purposes”.

Speaking in Bangkok, U.S. Secretary of State Antony Blinken said the release was “one bright spot in what is otherwise an incredibly dark time.”

“Whether this signals anything more broadly about the intentions of the regime, I can’t tell you – too soon to say.”

‘HOSTAGE TACTICS’

Myanmar’s shadow National Unity Government, which backs the resistance movement, said it was heartened by the amnesty, but said the world should not be duped.

[1/2] Mya Aye, a prominent political activist who was imprisoned following the military coup on February 01, 2021, is greeted as he walks free after his release from Insein prison, in Yangon, Myanmar November 17, 2022. Assistance Association for Myanmar Based Independent Journalists/via REUTERS.

“These types of hostage tactics by the junta should not fool the international community into believing that the military has changed its colours,” said Htin Linn Aung, an NUG minister and spokesperson.

A junta spokesperson did not answer Reuters’ calls seeking comment.

Bowman, Britain’s ambassador from 2002-2006 who heads a group promoting ethical business in Myanmar, had been jailed for immigration violations.

Kyaw Htay Oo was detained on terrorism charges, media has reported. Kubota was last month sentenced to 10 years in prison for violating sedition and communications laws.

Human rights groups have said their detentions, as well as thousands of others, were politically motivated. The junta has denied that.

Japan’s chief cabinet secretary Hirokazu Matsuno earlier on Thursday said Japan “will continue to demand Myanmar take specific and appropriate actions to rebuild democratic society, and to solve problems peacefully and seriously.”

Others included in the amnesty were 11 celebrities plus Kyaw Tint Swe, a former minister and a close aide to Suu Kyi, according to state media.

Suu Kyi’s former ruling party spokesperson Myo Nyunt and prominent democracy advocate Mya Aye were among those seen by witnesses leaving the Insein prison in the biggest city Yangon.

“I will be together with Myanmar people no matter what the situation is,” Mya Aye said.

The Assistance Association for Political Prisoners (AAPP), which has been documenting the military’s crackdown, said the junta had freed the foreigners to ease political pressure.

“Yet again, political prisoners are being used as bargaining chips,” it said.

Phil Robertson, deputy Asia director of Human Rights Watch, said people should not be jailed for expressing political views.

“One hopes this release will not be a one-off event but rather the start of a process by the junta to release all political prisoners,” he said.

Reporting by Reuters staff; Writing by Kanupriya Kapoor and Martin Petty; Editing by Lincoln Feast, Simon Cameron-Moore, William Maclean

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Business

Oil tumbles on inflation woes, Iraq exports

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The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, March 21, 2016. REUTERS/Leonhard Foeger

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LONDON, Aug 30 (Reuters) – Oil prices fell Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.

Brent crude futures for October settlement fell $2.45, or 2.33%, to $102.64 a barrel by 1022 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.

The October contract expires on Wednesday and the more active November contract was at $101.12 a barrel, down 1.76%.

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U.S. West Texas Intermediate crude was at $95.46 a barrel, down $1.55, or 1.6%, following a 4.2% rise in the previous session.

Inflation is near double-digit territory in many of the world’s biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more

“The economy will continue to remain slow with the Fed’s aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday,” said Kunal Sawhney, chief executive officer, Kalkine Group.

Prices took a tumble after comments from Iraq’s state-owned marketer SOMO that the country’s oil exports are unaffected by unrest, UBS analyst Giovanni Staunovo said. read more

Baghdad seeing its worst fighting for years as clashes between Shi’ite Muslim groups spill into a second day. read more

SOMO also said on Tuesday it can redirect more oil to Europe if required. read more

The market awaits the upcoming meeting of the Organization of the Petroleum Exporting Countries and allies such as Russia, known as OPEC+, on Sept. 5.

Saudi Arabia last week raised the possibility of production cuts from OPEC+, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.

“Possible reduction in OPEC+ production is the reason why the oil market has thumbed its nose at weakening equities and the strong dollar,” said Tamas Varga of oil broker PVM.

Meanwhile, the American Petroleum Institute, an industry group, is due to release data on U.S. crude inventories at 4:30 p.m. EDT (2030 GMT) on Tuesday.

U.S. crude oil stockpiles likely fell 600,000 barrels in the week to Aug. 26, with distillates and gasoline inventories also seen down, a preliminary Reuters poll showed on Monday.

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Reporting by Rowena Edwards, additional reporting by Muyu Xu in Singapore; Editing by Christian Schmollinger and Louise Heavens

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World

Oil settles lower as halted Russian pipeline flows appear temporary, demand fears rise

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Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant

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  • Russia oil exports halted via southern leg of Druzhba pipeline
  • EU puts forward ‘final’ text to resurrect Iran nuclear deal
  • API data shows crude oil inventories up last week – sources
  • Dollar edges lower as traders await U.S. inflation report
  • Recession, demand expectations also weigh on market

NEW YORK, Aug 9 (Reuters) – Oil prices settled slightly lower on Tuesday after a see-saw session as worries that a slowing economy could cut demand vied with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine.

Crude prices have been under pressure for weeks as fears mounted that a recession could cut oil demand.

Brent crude settled at $96.31 a barrel, losing 34 cents, or 0.4%. U.S. West Texas Intermediate (WTI) crude settled at $90.50 a barrel, shedding 26 cents, or 0.3%. During the session, both benchmarks rose and fell by more than $1 a barrel.

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Ukraine halted oil flows on the Druzhba oil pipeline to parts of central Europe because Western sanctions had prevented a payment from Moscow for transit fees from going through.

Flows along the southern route of the Druzhba pipeline have been affected while the northern route serving Poland and Germany was uninterrupted.

Oil initially moved higher on the pipeline news and expectations that the shutdown would tighten supplies, but prices reversed course as details became clearer around what caused the disruption and that flows were expected to resume within days. read more

“Considering the fact it is not the Russian side shutting down pipe, but the Ukrainian side, it would figure to be a situation that can resolved sooner rather than later,” Bob Yawger, director of energy futures at Mizuho in New York, said in a note.

Prices were pressured by talks of a last-ditch effort by European nations to revive the Iran nuclear accord. On Monday, the European Union put forward a “final” text to revive the 2015 Iran deal. A senior EU official said a final decision on the proposal, which needs U.S. and Iranian approval, was expected within “very, very few weeks”.

Talks have dragged on for months without a deal.

Iran’s crude exports, according to tanker trackers, are at least 1 million barrels per day below their rate in 2018 when former U.S. President Donald Trump exited the nuclear agreement.

Oil is now down more than $40 from its peak following Russia’s invasion of Ukraine, which took Brent briefly to $139 a barrel.

U.S. crude oil inventories were also signaling slacking demand, according to market sources citing American Petroleum Institute figures. Crude stocks rose by about 2.2 million barrels for the week ended Aug. 5. Analysts had forecast a small 400,000-barrel drop in crude inventories. Official government data is due on Wednesday at 10:30 a.m. EDT.

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Additional reporting by Alex Lawler, Sonali Paul and Emily Chow
Editing by Louise Heavens, Mark Potter, Barbara Lewis and David Gregorio

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Business

Choppy trading on Wall Street as Pelosi visits Taiwan

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  • Speaker Nancy Pelosi visits Taipei
  • Caterpillar falls after missing sales estimates
  • Uber surges after reporting positive cash flow
  • Indexes: S&P 500 -0.13%, Nasdaq +0.29%, Dow -0.70%

Aug 2 (Reuters) – Wall Street was mixed in choppy trading on Tuesday, with geopolitical tensions flaring after U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan.

Pelosi said her trip demonstrated American solidarity with the Chinese-claimed self-ruled island, but China condemned this first such visit in 25 years as a threat to peace and stability. read more

Shares of chipmakers heavily exposed to China were trading mostly higher, rebounding after early declines.Advanced Micro Devices (AMD.O) rallied about 3% ahead of its quarterly report after the bell.

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Industrial bellwether Caterpillar (CAT.N) dropped almost 5% after warning of a bigger drop in demand for its excavators in property crisis-hit China, piling more pain on the industrial bellwether grappling with supply-chain disruptions.

Financial markets have also been roiled by the Ukraine war, soaring inflation and tightening financial conditions.

U.S. job openings in June fell by the most in just over two years, as demand for workers eased in the retail and wholesale trade industries. Overall the labor market remained tight. read more

After the Fed raised interest rates by 75 basis points in July, investors have speculated about whether the central bank’s largest hikes are behind it.

“The market has to get really comfortable that they have fully baked in all the Fed’s rate hikes, and I think that remains an open question,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle. “The challenges and supply constraints aren’t necessarily done. They aren’t done and gone yet.”

Shares of U.S. defense companies Raytheon Technologies Corp (RTX.N), Lockheed Martin Corp (LMT.N), Northrop Grumman Corp (NOC.N) and L3Harris Technologies Inc (LHX.N) rose between 1% and 3%. The United States is Taiwan’s main supporter and arms supplier. read more

In afternoon trading, the S&P 500 was down 0.13% at 4,113.41 points.

The Nasdaq gained 0.29% to 12,404.69 points, while the Dow Jones Industrial Average was down 0.70% at 32,569.39 points.

The CBOE volatility index (.VIX), also known as Wall Street’s fear gauge, eased from the day’s high of 24.68 points. The Philadelphia SE semiconductor index (.SOX) bounced back from losses to rally about 0.6%.

A largely upbeat second-quarter reporting season has supported markets recently, with the benchmark S&P 500 index (.SPX)up about 12% from lows hit in mid-June.

Uber Technologies Inc (UBER.N) jumped 18% after the ride-hailing firm reported positive quarterly cash flow for the first time ever and forecast upbeat third-quarter operating profit. read more

Tesla Inc (TSLA.O)gained 2.7% after Citigroup hiked its price target on the electric car maker’s stock.

Pinterest Inc (PINS.N) surged almost 13% after activist investor Elliott Investment Management became the largest shareholder of the digital pin-board firm. read more

Across the U.S. stock market (.AD.US), advancing stocks outnumbered falling ones by a 1.0-to-one ratio.

The S&P 500 posted 2 new highs and 30 new lows; the Nasdaq recorded 37 new highs and 61 new lows.

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Reporting by Aniruddha Ghosh and Devik Jain in Bengaluru; Editing by Anil D’Silva, Arun Koyyur and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

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