A previously announced joint venture between China’s Leapmotor and Stellantis has begun building EVs in Europe ahead of local deliveries targeted this fall. Leapmotor’s entry into local production and sales overseas begins with a small EV called the T03.

Today’s latest update on the production of Leapomotor BEVs in Europe comes just over a month after the Chinese automaker confirmed the new business venture with Stellantis. The new JV, named “Leapmotor International,” will expand to sell Chinese EVs in Europe this fall, with additional markets to follow.

Stellantis ($STLA) took a $1.6 billion stake in Chinese OEM Leapmotor last fall, and we have been following the progress of both companies getting into business together, especially as the threat of tariffs on Chinese imports in Europe looms following a recent decision by the EU commission.

With the joint venture officially established, Leapmotor and Stellantis are reportedly beginning to roll the initial BEV units of one model off assembly lines in Poland.

Reuters reported that Stellantis chose Tychy as the new home to Leapmotor production in Europe for cost-saving reasons. Leapmotor management told Jeffries that manufacturing costs at Tychy equate to about 400-500 euros ($429-$536) per BEV, similar to build prices in China (but without potential tariffs). Either way, it’s significantly more cost-effective than the estimated price of around 1,000 euros ($1,072) per unit to build the T03s at Stellantis’ plant in Italy.

The report also states that T03 will be followed by the production of Leapmotor’s A12 SUV, which is targeted to begin in Q1 2025. The Chinese automaker has also started to prepare localized component production to support BEV builds overseas.

Leapmotor also intends to sell its new C10 SUV in Europe, but it will build those EVs in China and export them. The previously mentioned tariffs may throw a financial wrench in those plans, but Leapmotor has a potential Plan B in Stellantis through the joint venture.

Mass production of the T03 in Poland remains on schedule to begin in September ahead of first deliveries.

A new low-cost EV is primed to hit the US market. Kia plans to build its new EV3 in Mexico as it looks to take advantage of the US electric vehicle tax credit.

Kia introduced the EV3 during its 2023 EV Day as part of a new line-up of affordable electric vehicles.

After opening orders in Korea earlier this month, we learned that the EV3’s starting price is roughly $30,700 (KRW 42.08 million). The EV3 is Kia’s third all-electric vehicle and the first of a new series.

Although it takes much of the design and tech from Kia’s three-row EV9 (in a smaller, more affordable package), the EV3 “carves out its own identity” to stand out in its segment. One of the first things you will see is Kia’s new “Tiger Face” grille, a modern take on its signature Tiger Nose design.

Kia is confident the EV3 will “elevate the perception of EV SUVs” with an advanced electric powertrain, bold design, and innovative tech.

Built on Hyundai’s E-GMP platform (the same one underpinning the IONIQ 5 and Kia EV9) and Kia’s fourth-gen battery tech, the EV3 features up to 373 miles (600 km) WLTP driving range and fast charging capability (10% to 80% in 31 mins).

Kia to build affordable EV3 in Mexico for US EV tax credit

Kia’s new EV3 is built for buyers who may be on the fence about going electric with long-range and fast charging capabilities.

“It will reassure those who may have been hesitant to make the switch to electric mobility and will lead the mass adoption of EVs,” Kia’s president and CEO, Ho Sung Song, boasted.

The inside is loaded with the latest software and connectivity tech. It includes Kia’s next-gen Connected Car Navigation Cockpit (ccNc) with dual 12.3″ screens and Apple CarPlay/ Android Auto support.

Although the EV3 is much smaller than the EV9, it is also more affordable. Kia’s EV9 starts at $54,900 in the US, which is still low for a three-row electric SUV.

With expected starting prices around $30,000 to $35,000, the EV3 will be among the most affordable EVs in the US.

Data from Cox Automotive, the cheapest EVs in the US in Q1 were the Nissan LEAF, with an average selling price of $27,956, followed by the Nissan Ariya ($35,556), Hyundai IONIQ 6 ($36,506), and Tesla Model 3 ($40,547).

Meanwhile, several new low-cost EVs are hitting the US market this year, including Volvo’s EX30 ($34,950) and Chevy Equinox EV ($34,995).

According to Korean auto media outlet The Korean Car Blog, Kia plans to build the EV3 in Mexico. With the potential $7,500 federal tax credit, EV3 prices could fall to as low as $22,500 to $27,500.

Kia’s Monterey plant in Mexico has a production capacity of up to 400,000 units. The K3 and Pride are currently built there. According to the report, Kia aims to build 110,000 EV3 models annually at the facility.

The Mexico-manufactured EV3 will be sold in North America, while the Korean-made model will be sold domestically and exported to Europe.

Would you buy the EV3 for $30,000? What about $23,000? Let us know in the comments below.

Tesla is asking the parties involved in Elon Musk’s CEO compensation case to interpret shareholders’ ratification last week.

Following Tesla shareholders voting again for Musk’s 2018 CEO compensation plan last week, the automaker’s lawyers now have to explain to the Delaware judge how this impacts the case that rescinded the compensation.

Tesla admitted that its use of ratification was novel in this case, but it does claim that it “significantly impacts” the case in a new letter to Judge McCormick:

“The approval of ratification by Tesla’s stockholders significantly impacts the claims and issues in this action, including the court’s final judgment.”

The automaker is asking all parties involved to explain their interpretation of the impact of shareholders’ ratification.

Tesla’s own argument is that including the judge’s decision in its proxy statement informs shareholders of all the governance problems highlighted by the judge, and if they decide to move forward with the compensation regardless, which they did, the judge should approve.

A lawyer representing the shareholder in the case told Reuters that they will argue the ratification has “no legal effect”:

Greg Varallo, a shareholder attorney in the case against the pay package, said the ratification had “no legal effect” on the case and that he would explain his argument in a brief due Friday.

Legal scholars familiar with Delaware business law have all agreed that this would be a brand new use of the ratification clause, but it’s not impossible that Judge McCormick would accept Tesla’s interpretation.

The full arguments from each side should be in front of the judge by Friday.

The next hearing for the case is set for July 8, when the judge should decide on the shareholder’s attorneys. The shareholders are asking for around $5 billion in Tesla stocks, while the automaker is countering at $13.8 million.