Hyundai delivered another strong performance in the third quarter as several popular EV models led to 27% EV sales growth. However, analysts believe with the new tax credit provisions from the Inflation Reduction Act, a drop in demand “seems inevitable” for foreign automakers like the Hyundai Group.
Despite plans to start construction on its first EV plant in the United States this month, Hyundai is one of the automakers that will lose eligibility for its electric models to qualify for the EV tax credit, according to the current rules.
Hyundai announced its intentions to build a dedicated electric vehicle facility in the United States in May, but since the Inflation Reduction Act was passed in August, the automaker has shortened its timeline.
The plant was initially slated to begin construction in early 2023, but the South Korean automaker has warned that the US EV tax credit rules can impact business.
Jose Munoz, global president, and chief operating officer at Hyundai, spoke at a Reuters Auto Conference, highlighting the significance of the EV tax credit.
It will be very, very astronomical if nothing happens, if nothing changes. The impact is huge. That’s why we’re taking actions through all the channels.
Meanwhile, the Hyundai Group, including Kia and Genesis, has been scaling EV production en route to claiming second place in terms of EV sales for the first half of 2022, behind only Tesla.
The high-flying Hyundai IONIQ 5 and Kia EV6 are leading the way with 3.2% and 3.0% of the overall US electric vehicle market this year to date. However, toward the end of the third quarter, the South Korean automaker saw its EV sales momentum slip as its federal tax credit expires.
Hyundai’s Q3 earnings, EV sales, and guidance
The release of the Hyundai IONIQ 6 and Genesis GV60 helped boost overall sales, with EVs claiming over 5% of the Hyundai Group’s total sales.
Even though Hyundai’s EV sales rose 27% in the third quarter of 2022, several analysts are questioning if the South Korean automaker can maintain its momentum in the United States without the assistance of a tax credit.
In the US market, the IONIQ 5 fell from 1,516 sales in August to 1,306 in September, down about 14%.
Lee Jae-il, an analyst at Eugene Investment & Securities, spoke about the impact, claiming:
The impact of the Inflation Reduction Act on Hyundai’s EV sales in the U.S. market seems inevitable as EV incentives are the key factor to U.S. EV shoppers.
Besides Hyundai’s electric vehicles, the automaker’s overall sales grew 30.6% from 2021, yet net profit plummeted over 52% due to recalls over engine issues that cost the company over $900 million.
Looking ahead, Hyundai expects between 19 to 20% sales revenue growth, up from the previous guidance of 13 to 14%. At the same time, the automaker lowered vehicle sales expectations from 4.32 million units to 4.01 million with higher input prices and ongoing supply chain bottlenecks.
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National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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