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Europe’s “green dream” Northvolt has filed for bankruptcy protection in the US after a rescue package failed to go through, leaving the battery maker with just one week’s worth of cash in the account. Cofounder and CEO Peter Carlsson, who spearheaded a costly expansion, has also quit.

The Swedish-owned battery maker filed for Chapter 11 in the Southern District of Texas, reports Bloomberg, with $5.8 billion debt. CEO Peter Carlsson, Telsa’s former chief products officer, stepped down from his role as CEO after the filing, but will remain onboard as advisor and director.

According to a statement, Northvolt said that its main factory will maintain business as usual during the reorganization, as the company now has a buffer from creditors, giving it time to restructure the balance sheet. However, the company said that this will not impact its business in Germany, and through the court process, Northvolt now has access to about $145 million in cash collateral. An additional $100 million in debtor-in-possession financing will be added to the pot via one of its customers, the report said.

In recent weeks, Northvolt has been in intense negotiations in the hope of securing a $300 million rescue package to give the company a bit more time to seek longer-term funding. But when that deal fell through, the battery maker was forced to seek protection from creditors via the Chapter 11 filing.  

The company still has a $7 billion project in place in Quebec – a new campus that is set to include a cell production plant, battery recycling, and cathode active-material production facilities –  and the bankruptcy won’t affect those plans, the company said on its website. “Northvolt Germany and Northvolt North America, subsidiaries of Northvolt AB with projects in Germany and Canada, are financed separately and will continue to operate as usual outside of the Chapter 11 process as key parts of Northvolt’s strategic positioning.”

The plant is expected to have capacity to produce 30 GWh of battery cell every year, with an expansion set to double that output, making it enough to power 1 million EVs. The Canadian government is putting $1.334 billion CND toward the project, with Quebec chipping in another $1.37 billion CND.

Northvolt has hit hard times in recent months, once thought of as Europe’s best shot to homegrown EVs and the makers of “the world’s greenest battery.” Enthusiasm mounted as the company opened the doors to its first plant in Sweden, in the small town of Skelleftea near the Arctic Circle, in 2021. Billions of dollars have been invested into the company, and Volvo, VW, and BMW rushed to place future orders.

All of this enthusiasm has been fueled by a vision to cut dependency on China by creating greener EV batteries using 100 percent recycled nickel, manganese, and cobalt. Plans were put in place to build factories in Gothenburg, in southern Sweden, and Poland, Germany, and Canada, all backed by huge government subsidies. Back in January, the company raised an additional $5 billion, firmly locking in its position as one of Europe’s best-funded startups and recipient of the largest-ever green loan in the EU.

But then things started going south, with Northvolt’s production problems and massive delays forcing BMW to cancel its €2 billion battery cell order with the company. This past May, Northvolt also announced that it pushing back its plans for an IPO until next year. The interim report that followed revealed the dire state of its finances and how far its production had fallen short of goals, with Carlsson admitting he had been “too aggressive” with the company’s expansion plan.

Since Northvolt has put in place a series of changes to reset the company’s course, including bringing onboard a new CFO, leaving the former CFO to focus solely on expansion plans. Plus the company started making cuts, including closing down its research center, Cuberg, in San Francisco and deprioritizing secondary businesses. At the end of September, Northvolt announced that it would cut 1,600 staff from three Swedish sites and about 20 percent of its international workforce.

Last month, Volvo started proceedings to take over their joint venture with Northvolt, while Volkswagen Group’s representative to Northvolt’s board stepped down this month. Sweden, for its part, is ruling out taking a stake to save its homegrown enterprise, Bloomberg reports. Carlsson had said last month that the company needs more than $900 million to permanently shore up its finances.

Photo credit: Northvolt


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Tesla hacker reveals a new Model Y with 6 seats is in the works

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Tesla hacker reveals a new Model Y with 6 seats is in the works

A Tesla hacker has revealed that through a new software update, the automaker is working on a new Model Y with a 6-seat configuration.

Last week, we reported that Tesla referenced an upcoming 7-seat configuration for the new Model Y in communications with customers.

The automaker previously offered a 7-seat configuration for the Model Y, before the design refresh earlier this year. It was never very popular.

Now, we learn that Tesla is also working on a 6-seater configuration, which would be completely new to Model Y. Tesla offers a 6-seater configuration for the Model X, but it never did for other models.

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Green, an infamous Tesla hacker who often reveals upcoming features by sifting through the code in new Tesla software updates, made the discovery and commented:

“The much-rumored 6-seater Model Y made an appearance in the firmware.”

There had been several rumors about the 6-seater Model Y in the past, but they were almost exclusively in China and referenced a potential longer wheelbase Model Y that never made it to production.

Now, Green notes that his findings point to the new version likely not being only for the Chinese market.

It’s not clear what a Model Y 6-seater could look like, but it would likely feature a 2+2+2 seating configuration with captain seats in the middle, much like the Model X.

Electrek’s Take

This is interesting. If Green is discussing it, it’s in the code, and Tesla is undoubtedly working on it, but it has not been confirmed to be made available. I’ll believe it when I see it.

For my money, if Tesla wants to introduce a 2+2+2 configuration on the Model Y with captain seats in the middle, you kind of need a longer wheelbase. Otherwise, something is getting smushed.

The third row in the previous Model Y was already tiny and only suitable for children or very small adults. A 2+2+2 configuration does give the opportunity to open up that third row a bit with potential for more legroom, but I’m really curious to see how that second row looks like in a Model Y after that.

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Zero announces its new low-cost electric motorcycles have begun production

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Zero announces its new low-cost electric motorcycles have begun production

Zero Motorcycles announced this week that production of its new XE and XB electric motorcycles is now officially underway, with the first units set to begin shipping soon. The milestone marks a major step forward in Zero’s plan to expand beyond its high-performance electric motorcycles and tap into the growing market for more affordable EVs on two wheels.

“Bikes are rolling and the wait is almost over!” the company shared on its social media channels. “Zero XEs and XBs are coming off the production line and begin shipping worldwide over the next few weeks.”

The Zero XE and XB were first unveiled in November 2024 as part of the company’s shift towards smaller, less expensive electric motorbikes that could appeal to a wider customer base than the brand’s traditional $15,000–$25,000 flagship models. With new models that directly compete against Sur Ron and Talaria-style electric motorbikes, Zero is hoping to carve out a section of the much higher volume light electric dirt bike market.

Zero has long been considered one of the dominant players in the heavyweight electric motorcycle industry, but its pricing has remained out of reach for many would-be riders. Now these upcoming smaller and cheaper bikes aim to change that.

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By leveraging Asian designs and manufacturing, the new XE and XB are significantly more affordable. The Zero XB is priced at $4,395, while the larger XE comes in at $6,495. That puts them in direct competition with smaller, value-focused e-moto brands like CSC, Ryvid, and even trail bikes like the infamous Sur Ron or Talaria.

However, the non-street legal status of the bikes in the US means that sales could be hindered, unlike in Europe where the XB and XE models are homologated for use on public roads.

While the price may be lower than the brand’s bigger flagship models, both bikes still wear the Zero badge. The pair is claimed to have been designed by Zero’s California-based engineering team and use a simplified version of Zero’s Z-Force powertrain system, though the models unveiled at EICMA still had a number of obviously Chinese-origin parts and stickers, including labels written in broken English. Now, over six months later, the production models are presumably rolling off the line with a bit closer inspections.

As far as specs go, the Zero XE carries a 4.3 kWh removable battery – one of the largest removable batteries in the industry. That battery powers a 15.5 kW (21 hp) peak-rated air-cooled motor that propels the bike up to 85 km/h (53 mph). 

The slightly smaller XB has a more modest 7.5 kW (10 hp) motor and 2.4 kWh battery, which is also easily removable for charging. The bike has a slower top speed of just 28 mph (45 km/h), making it better suited for riders who want to focus on their skills or learn to jump, instead of merely riding fast. Zero rates the XB with a range of 47 miles (75 km), though time will tell how accurate that figure proves to be.

Zero has made it clear that these bikes are not meant to compete with its premium lineup but rather to complement it, offering a stepping stone into electric motorcycling for newer riders or urban commuters who don’t need highway performance, at least if those urban commuters are located in Europe.

With production now underway and shipping soon, we’ll soon see whether Zero’s bet on the low-cost electric motorcycle segment pays off. One thing is certain: with more affordable options like the XB and XE, Zero is signaling that the future of motorcycling isn’t just fast – it’s flexible.

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Tesla is asked to delay Robotaxi launch in Austin by Texas lawmakers

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Tesla is asked to delay Robotaxi launch in Austin by Texas lawmakers

Texas lawmakers have officially requested that Tesla delay its planned Robotaxi launch in Austin by a few months due to a new law being implemented.

It’s a Godsend for Elon Musk.

As we previously reported, Tesla’s planned Robotaxi launch in Austin, Texas, now “tentatively” scheduled for June 22, is a moving of the goal post for Tesla.

CEO Elon Musk himself has previously described what Tesla plans to launch as “not really self-driving”, but the CEO is using the new strategy as a way to claim a win in autonomous driving after years of missed deadlines and failed promises.

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Since last year, Musk has discussed launching the service in Austin this summer. For the last few months, he had indicated that it would happen in June, with the June 22nd date being officially shared last week.

For Musk to claim his win, Tesla would need to stick to the deadline, which would be a first for Tesla when it comes to its autonomous driving roadmap.

However, Texas lawmakers have just given Tesla an out.

A group of seven Austin-based lawmakers in the Texas Senate and House have signed a letter asking Tesla to delay its launch until September:

As members of the Austin delegation in the Texas Senate and Texas House of Representatives, we are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September I, 2025. We believe this is in the best interest of both public safety and building public trust in Tesla’s operations. If Tesla opts to proceed with the June 22, 2025, launch date, we request that you respond to this letter with detailed information demonstrating that Tesla will be compliant with the new law upon the launch of driverless operations in Austin.

Texas has had very few regulations affecting autonomous driving, and the new law maintains this status quo. However, it also introduces requirements for following federal guidelines, and the latest version of the bill references SAE autonomous driving levels.

It doesn’t sound like the lawmakers are forcing Tesla to delay the launch for now. They are more politely asking to delay until the new framework is in place.

here’s the full letter from the Texas lawmakers:

Electrek’s Take

This appears to be a Godsend for Tesla and Musk. Even with the significantly reduced scope of the program compared to what Tesla has promised for years, and the fact that Waymo has been doing exactly what Tesla is trying to accomplish for years, it appears that Tesla is having difficulties delivering on that.

As we previously reported, testing without a safety driver has been extremely limited based on sightings, and it appears that Tesla has simply relocated the “safety driver” to the passenger seat with a kill switch for optics.

Now, Tesla can claim that it has to delay the launch to please the regulators rather than because it is not ready.

There’s also NHTSA, which put a deadline for today for Tesla to answer a bunch of questions about its planned Robotaxi launch in Austin. So, that could also play a role.

Now, let’s see if Tesla takes the out or decides to move forward. For everyone’s sake, I hope they take the out.

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