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ExxonMobil Corp. and Saudi Basic Industries Corp. (Sabic) Gulf Coast Growth Ventures petrochemical complex under construction in Gregory, Texas, U.S., on Wednesday, July 28, 2021.
Eddie Seal | Bloomberg | Getty Images

LONDON — The world’s largest oil and gas majors are seeking to lure back investors by returning more cash to shareholders. Market participants, particularly those looking to the long term, remain highly skeptical.

It comes at a time when oil and gas companies are raking in their highest profits since the onset of the coronavirus pandemic amid a sustained period of stronger commodity prices.

A robust showing in the three months through June built on better-than-expected first-quarter earnings and lent further support to the industry’s efforts to pay down debt and reward investors.

In the U.S., ExxonMobil said late last month that it would back shareholder returns through its dividend and Chevron announced it would resume share buybacks at an annual rate of between $2 billion to $3 billion.

In Europe, meanwhile, the U.K.’s BP, France’s TotalEnergies, Norway’s Equinor, Italy’s Eni and Anglo-Dutch oil giant Royal Dutch Shell all announced share buyback programs or increased dividend payouts — or both. It reflects a broader industry trend of energy majors seeking to reassure investors that they have gained a more stable footing amid the ongoing Covid-19 crisis.

Share buybacks are designed to boost the firm’s stock price, benefiting shareholders. Dividend payments, meanwhile, reflect a token reward to shareholders for their investment. Both are options available to a company seeking to reward investors.

These investments are likely to become stranded assets, and investors don’t want to be left holding the bag.
Kathy Hipple
Finance professor at Bard College

Ahead of the second-quarter results, energy analysts had warned that Big Oil still faced a host of uncertainties and challenges. Some of these include the remarkable success of shareholder activism in recent months, a “tremendous degree” of ongoing investor skepticism and intensifying pressure to massively reduce fossil fuel use.

“Day traders may reap short-term profits, but serious long-term investors have concluded that the old energy of the past — oil and gas extraction, is just that — old, with a sell-by date that is moving closer by the day,” Kathy Hipple, finance professor at Bard College in New York, told CNBC via email.

“Once institutional investors determine that demand has peaked — which likely has already happened — they will abandon the sector permanently,” she added. “Many already have, based on the stock performance of the sector over the past several years.”

IPCC report a ‘death knell’ for fossil fuels

The energy sector, alongside financials, is one of this year’s top performers on the S&P 500, up almost 30% year-to-date. Yet, share prices of many oil majors continue to trail the earnings outlook considerably.

In the U.K., for instance, BP has seen its stock price climb nearly 20% so far this year, but the oil and gas giant recorded a collapse of more than 47% in 2020. BP has previously described 2020 as “a year like no other” due to the impact of the Covid-19 crisis on global energy.

Oil prices have since rebounded to near $70 a barrel and all three of the world’s main forecasting agencies — OPEC, the IEA and the U.S. Energy Information Administration — expect a demand-led recovery to pick up speed through to 2022.

Hipple said that savvy long-term investors would shy away from oil and gas majors “unless and until” they fully acknowledge the climate crisis. “These investors understand that the oil majors are still investing tens of billions in unnecessary oil and gas infrastructure, ignoring the IEA findings that no additional infrastructure is possible to meet a 1.5 [degrees Celsius] scenario,” Hipple said, referring to a critically important target of the Paris Agreement.

“These investments are likely to become stranded assets, and investors don’t want to be left holding the bag.”

Last week, the world’s leading climate scientists delivered their starkest warning yet about the deepening climate emergency. The Intergovernmental Panel on Climate Change’s landmark report warned a key temperature limit of 1.5 degrees Celsius could be broken in just over a decade in the absence of immediate, rapid and large-scale reductions in greenhouse gas emissions.

U.N. Secretary-General, António Guterres, described the report’s findings as a “code red for humanity,” and said it “must sound a death knell” for coal, oil and gas.

Energy majors are typically still overwhelmingly reliant on oil and gas revenues for their earnings — a concept that is irreconcilable to the demands of the climate emergency.

“We frankly just don’t think these are very good businesses,” David Moss, head of European equities at BMO Global Asset Management, told CNBC’s “Street Signs Europe” on Friday.

European energy majors are currently generating “very strong” cash flow following a sustained rebound in oil prices, Moss said, but noted that many are choosing to keep spending relatively tight rather than invest in future production projects.

“With the oil companies, we still just don’t think they represent good long-term businesses,” Moss said. “They don’t generate consistent returns on capital or cash flow, albeit at the moment they look to be in a pretty good place.”

Not everyone is as downbeat on the outlook for the oil and gas industry, however.

Rohan Reddy, analyst at Global X, a New York-based provider of exchange-traded funds, says there are currently a number of positive signs for energy majors, citing rising stock prices, an upswing in second-quarter earnings and increased shareholder distributions.

“Right now, the energy sector is the best performing one within the S&P 500 and many European markets, and even though some of the big majors like BP and Shell have lagged the broader energy sector, we think right now that’s just due to hesitancy around the delta [Covid] variant,” Reddy told CNBC on Aug. 11.

“We think there is going to be a lot more investors starting to pile into to some of those big energy names.”

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Aptera shows its production-intent solar EV at CES, ships this year? (Update)

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Aptera shows its production-intent solar EV at CES, ships this year? (Update)

Aptera has publicly unveiled the production-intent version of its long-awaited solar EV, which it says will start deliveries by the end of this year.

Update: We swung by the booth a took a few pictures of Aptera’s production-intent vehicle chassis, see below.

Aptera has a long history in the automotive space, dating all the way back to its original founding in 2006 by co-founders Steve Fambro and Chris Anthony. It has had the same basic teardrop design all along, but at the time it was going to be fueled by a small gas engine, promising 330 miles per gallon.

But the last iteration of Aptera hit many bumps in the road, and went defunct in 2011, having to return thousands of customer deposits.

Then, in 2019, the company was relaunched, by the same original founders as before. But this time, it had a solar-powered electric car – which, frankly, makes a lot more sense for a futuristic vehicle than a gas engine does.

That’s the iteration we’re on now, and six years later – and nearly 20 years after the company’s first founding – Aptera says it’s finally ready to produce its solar EV.

It’s showing off its production-intent chassis at the Consumer Electronics Show this week, offering the public a chance to see this vehicle which it says will go into production and delivery this year. Its booth is in the central plaza, outdoors in the sun – where a solar EV belongs.

The company has been showing off its progress towards production intent over the course of the last years, doing wind tunnel testing of what it claims will be one of the lowest-drag vehicles ever (with a previously-claimed .13 Cd), receiving carbon bodies in August and completing its first low-speed drive in October.

Now the car is out and about driving normally at CES (and Aptera is offering media ride-alongs, which we’ll hopefully get a chance to fit in). Aptera says that it drove the car for around 20 miles yesterday, and it ended the day with more charge than it started due to its extensive solar panels, which Aptera is showing off in production-intent form for the first time.

The panels cover the vehicle’s hood, dash, roof and hatch and Aptera says they can generate up to 40 miles of free driving per days, powered by sunlight. In sunny climates, this will give owners over 10,000 miles per year of solar-powered driving.

On a sunny Las Vegas winter day, as it was for the reveal, the solar panels should be working quite nicely (though they would work even better if it weren’t one of the shortest days of the year).

The unveil included a short livestream at Aptera’s outdoor booth in the Central Plaza, which you can watch below:

The livestream included a short speech by co-CEO Chris Anthony and a quick vehicle walkaround, including showing off the vehicle’s NACS port, which Aptera was the first to announce adoption of way back in 2022.

Aptera says it has another announcement coming soon regarding the vehicle’s battery pack, and that its anticipating offering track time in the car in a few months for investors (the company is funding itself through a crowdfunding campaign through which it has raised $135 million of equity).

Previously, Aptera said the vehicle would have multiple battery options, with 250, 400, and even 1,000-mile (!) battery packs (which this author thinks is unrealistically excessive, and frankly a sign for pause). But Aptera has backed off from talking much about its previous 1,000-mile target, and all we heard about during this reveal is the 400-mile, 45kWh pack that will be included on the company’s $40,000 launch edition vehicle (which will have limited options otherwise).

Aptera says that it anticipates first deliveries of its launch edition by the end of this year – a timeline which the company has stated before, but which we wouldn’t be surprised to see slip. Nevertheless, that’s the messaging.

Aptera says it has 50,000 reservations for its vehicle, at $100 a pop (or $70, if you use our Aptera referral link). You can reserve an Aptera over at Aptera’s website.


But if you have an EV that *isn’t* covered with solar panels, maybe you can install solar panels on your home’s roof and charge your vehicle through solar anyway. Find a reliable and competitively priced solar installer near you on EnergySage, for free. They have pre-vetted installers competing for your business, ensuring high-quality solutions and 20-30% savings. It’s free, with no sales calls until you choose an installer. Compare personalized solar quotes online and receive guidance from unbiased Energy Advisers. Get started here. – ad*

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Check out Hyundai’s new electric minivan caught undisguised for the first time

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Check out Hyundai's new electric minivan caught undisguised for the first time

Who said minivans weren’t cool? Hyundai’s first electric minivan (which could double as a camper van) was spotted in public without camouflage, giving us a better look at what to expect. Check out the upcoming EV below.

When will Hyundai’s first electric minivan launch?

Hyundai is preparing to launch its first all-electric minivan this year. The Staria is the electric successor to the Starex, Hyundai’s multi-purpose vehicle (MPV) introduced in 2021.

Last March, Hyundai revealed its new ST1 electric business van platform, based on the Staria powertrain. The ST1 is Hyundai’s first commercial EV with configurations including a refrigerated van and chassis cab. Meanwhile, the minivan will get its own model in 2025.

According to Korea’s Newsis, Hyundai will convert one of its production lines at its Ulsan Plant 4 on January 25, 2025, for the Staria electric.

Ahead of its official debut, we are already getting a look at Hyundai’s first electric minivan undisguised. The Staria EV was spotted by the online community “Family Staria” in a Korean parking lot without camouflage.

You can see that the EV model has a design similar to that of Hyundai’s Staria Lounge, which transforms from a seven- or nine-seat limousine into a full-fledged camper van.

Outside of the grille, which is now closed and includes a charging port, the electric minivan is a near replica of the premium Staria Lounge.

Hyundai's-first-electric-minivan
Hyundai Staria Lounge(Source: Hyundai)

Given it’s still a test vehicle, the design could change once finalized. A tag on the windshield reads “Vehicle for UT Evaluation of the Road Vulnerable,” suggesting it has a few more tests before being released to the general public.

The Staria electric is expected to feature Hyundai’s latest 84 kWh batteries. Local reports suggest it will be able to handle over 10% more capacity than the ST1.

Hyundai's-first-minivan-camper
Hyundai Staria Lounge Camper Van (Source: Hyundai)

Hyundai’s first electric van is expected to launch in overseas markets. According to The Korean Economic Daily, Hyundai plans to start production of the Staria EV in Europe in the first half of 2026. European-made models will be sold locally and overseas, such as in Australia and Thailand.

Will Hyundai launch a camper van version like the Staria Lounge? More info will likely be released soon with an official launch expected this year. Stay tuned for updates.

Source: Mobility Post

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Elon Musk claims Tesla is doing ‘unsupervised self-driving trials’ while playing video games

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Elon Musk claims Tesla is doing 'unsupervised self-driving trials' while playing video games

Elon Musk is claiming that Tesla has started doing ‘unsupervised self-driving trials internally’. He made the claim while playing video games, and It should be taken with a grain, or pound, of salt.

Yesterday afternoon, on a Tuesday, Elon Musk, CEO of Tesla and defacto in charge of 6 companies and a government department, was playing video games and streaming on X for more than an hour.

During the stream, fans were asking him questions and one of them was about Tesla’s self-driving effort.

Musk said:

Tesla Full Self-Driving unsupervised, maybe I’ll mention, we are going to [correct himself], we actually are doing trials of that with Tesla employees already and we expect to have that in commercial service sometime this year, which I mentioned at the last earnings call.

There are two things that Musk said at the last earnings call. He did indeed claim that Tesla would launch its “unsupervised Full Self-Driving” capability in California and Texas around Q2 2025.

He also said that Tesla started testing its robotaxi ride-hailing app with employees in the Bay Area:

We have for Tesla employees in the Bay Area. We already are offering ride-hailing capabilities. So, you can actually — with the development app, you can request a ride, and it will take you anywhere in the Bay Area.

However, he also said that Tesla had “safety drivers” behind the wheel for this test program, which means that it is no more than its current “Supervised Full Self-Driving,” a level 2 driver assist system. It is mainly to test the ridesharing features of the app rather than a different version of its self-driving system.

That makes sense, considering that Tesla would need a permit to operate a self-driving vehicle in California, even as part of a test program, and we haven’t found Tesla’s permit application yet

With this new comment, Musk clearly said “unsupervised” self-driving.

Electrek’s Take

I wouldn’t be shocked if Elon misspoke here while playing video games or he is plain confused about the situation.

Considering Tesla doesn’t have any permit to operate driverless vehicles, if it is operating a “unsupervised self-driving trials internally”, it has to be doing it on private property, which could be no more than the Cybercabs we have seen driving around Gigafactory Texas.

It’s not much different than Tesla’s ‘We, Robot’ event, which was purposely located at Warner Bros’ studio lot, which are private roads.

I seriously doubt that Tesla is currently operating unsupervised self-driving vehicles on public roads.

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