Who’s saving who? Volkswagen and Rivian’s $5B EV bet

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Good morning!

In today’s edition:

• Rivian and Volkswagen set $5B bet

• 2025 Polestar 3 cuts price and adds new features

• BYD Sealion 7 review & more.

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What’s new?

Rivian & Volkswagen throw each other a lifeline

Rivian and Volkswagen have partnered in a $5 billion joint venture to develop advanced EV software and electronic systems, aiming to address their respective challenges. Rivian brings innovation but faces cash flow issues, while Volkswagen, struggling with its software division and labor unrest, seeks to regain momentum in the EV race. Based in Palo Alto, the venture plans to release its first technologies by 2027, offering solutions for both automakers and potentially the broader market. However, internal competition and economic pressures make this a risky yet potentially transformative alliance.

57% of drivers could go electric by 2034

A new Accenture study reveals that while global EV adoption is set to reach 57% by 2034, growth is slowing, with sales increasing by just 35% in 2023 compared to 55% in 2022. The research highlights a need for automakers to shift focus from tech-savvy early adopters to mainstream buyers who prioritize affordability, reliability, and safety. Accenture identifies five consumer "mindsonas" — Strategists, Individualists, Carers, Conservatives, and Frugals — urging manufacturers to design EVs and strategies tailored to practical concerns like cost and charging infrastructure.

2025 Polestar 3 cuts price and adds new features

Polestar has unveiled a more budget-friendly 2025 Polestar 3 with a single-motor rear-wheel-drive (RWD) version starting at $68,900, down from $74,800 for the dual-motor AWD model. The RWD variant delivers 299 horsepower and an EPA-estimated 350 miles of range, outpacing the AWD's 315 miles. Despite the lower price, it retains premium features like advanced driver-assist systems and luxury design. This move underscores Polestar’s strategy to make EVs more accessible while maintaining performance and quality, solidifying its place in the competitive electric SUV market.

Tesla’s V4 Superchargers will be launched in 2025

Tesla has unveiled its V4 Supercharger Cabinet, debuting in 2025, which will deliver charging speeds of up to 500kW for EVs and an astounding 1.2MW for Tesla Semi trucks. This represents a game-changing leap from the current V3 chargers' 250kW capability. With its ability to support 400V to 1000V vehicle architectures, the V4 is poised to serve a broader range of EVs, including a 30% faster charge for Tesla’s Cybertruck. Notably, each V4 Cabinet can support up to 8 charging stalls, doubling the capacity of its predecessor, and features more efficient power electronics for quicker deployment and lower operational costs. Tesla aims to roll out the first V4 Superchargers in 2025, revolutionizing EV infrastructure and accelerating the adoption of electric mobility worldwide.

Trump team targets EV tax credit, aiming to cancel it

The incoming Trump energy policy team, led by oil executive Harold Hamm, is proposing to repeal the $7,500 federal EV tax credit, a cornerstone of President Biden’s Inflation Reduction Act (IRA). Automakers like GM and Ford, already grappling with high EV production costs, could face intensified financial pressure. Without the credit, these companies risk slowing production and losing ground to global competitors, particularly China, which heavily subsidizes its EV sector. Critics, including the UAW and Energy Secretary Jennifer Granholm, warn that repealing the credit could jeopardize thousands of jobs, weaken U.S. global market positioning, and stall clean energy progress. As discussions unfold, the decision could reshape America’s EV future and broader environmental strategy.