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These machines, known as mining rigs, work round the clock to find new units of cryptocurrency.

Benjamin Hall | CNBC

New York Gov. Kathy Hochul signed a law Tuesday banning certain bitcoin mining operations that run on carbon-based power sources. For the next two years, unless a proof-of-work mining company uses 100% renewable energy, it will not be allowed to expand or renew permits, and new entrants will not be allowed to come online.

“It is the first of its kind in the country,” Hochul said in a legal filing detailing her decision.

The governor added that it was a key step for New York, as the state looks to curb its carbon footprint, by cracking down on mines that use electricity from power plants that burn fossil fuels. The law also comes as the crypto industry reels from the implosion of Sam Bankman-Fried’s FTX, which was once one of the most popular and trusted names in the industry.

Can crypto clean up its dirty image?

New York’s mining law, which passed the state assembly in late April and the state senate in June, calls for a two-year moratorium on certain cryptocurrency mining operations which use proof-of-work authentication methods to validate blockchain transactions. Proof-of-work mining, which requires sophisticated gear and a lot of electricity, is used to create bitcoin, among other tokens.

Industry insiders tell CNBC it could have a domino effect across the U.S., which is currently at the forefront of the global bitcoin mining industry, accounting for 38% of the world’s miners.

“The approval will set a dangerous precedent in determining who may or may not use power in New York State,” the Chamber of Digital Commerce wrote in a statement.

Read more about tech and crypto from CNBC Pro

It is a sentiment echoed by Kevin Zhang of digital currency company Foundry.

“Not only is it a clear signal that New York is closed for business to bitcoin miners, it sets a dangerous precedent for singling out a particular industry to ban from energy usage,” said Zhang, Foundry’s senior vice president of mining strategy.

The net effect of this, according to Perianne Boring of the Chamber of Digital Commerce, would weaken New York’s economy by forcing businesses to take jobs elsewhere.

“This is a significant setback for the state and will stifle its future as a leader in technology and global financial services. More importantly, this decision will eliminate critical union jobs and further disenfranchise financial access to the many underbanked populations living in the Empire State,” Boring previously told CNBC.

As for timing, the law took effect after governor signed off.

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The irony of banning bitcoin mining

One section of the law involves conducting a statewide study of the environmental impact of proof-of-work mining operations on New York’s ability to reach aggressive climate goals set under the Climate Leadership and Community Protection Act, which requires New York’s greenhouse gas emissions be cut by 85% by 2050.

Boring tells CNBC the recent swell of support for the ban is related to this mandate to transition to sustainable energy.

“Proof-of-work mining has the potential to lead the global transition to more sustainable energy,” Boring told CNBC’s Crypto World, pointing to the irony of the moratorium. “The bitcoin mining industry is actually leading in terms of compliance with that Act.”

The sustainable energy mix of the global bitcoin mining industry today is estimated to be just under 60%, and the Chamber of Digital Commerce has found that the sustainable electricity mix is closer to 80% for its members mining in the state of New York.

“The regulatory environment in New York will not only halt their target – carbon-based fuel proof of work mining – but will also likely discourage new, renewable-based miners from doing business with the state due to the possibility of more regulatory creep,” said John Warren, CEO of institutional-grade bitcoin mining company GEM Mining.

A third of New York’s in-state generation comes from renewables, according to the latest available data from the U.S. Energy Information Administration. New York counts its nuclear power plants toward its 100% carbon free electricity goal, and the state produces more hydroelectric power than any other state east of the Rocky Mountains.

The state also has a chilly climate, which means less energy is needed to cool down the banks of computers used in crypto mining, as well as a lot of abandoned industrial infrastructure that’s ripe for repurposing. 

At the Bitcoin 2022 conference in Miami in April, former presidential candidate and New Yorker Andrew Yang told CNBC that when he speaks to people in the industry, he has found mining operations can help develop demand for renewable energy.

“In my mind, a lot of this stuff is going to end up pushing activity to other places that might not achieve the goal of the policymakers,” said Yang.

Andrew Yang explains how crypto and a universal basic income could intersect

Some in the industry aren’t waiting for the state to make a ban official before taking action.

Earlier this year, data from digital currency company Foundry showed New York’s share of the bitcoin mining network dropped from 20% to 10% in a matter of months, as miners began migrating to more crypto-friendly jurisdictions in other parts of the country.

“Our customers are being scared off from investing in New York state,” said Foundry’s Zhang.

“Even from Foundry’s deployments of $500 million in capital towards mining equipment, less than 5% has gone to New York because of the unfriendly political landscape,” continued Zhang.

The domino effect

Now that the crypto mining moratorium has been signed into law by the governor, it could have a number of follow-on effects.

Beyond potentially stifling investment in more sustainable energy sources, industry advocates tell CNBC that each of these facilities drives significant economic impact with many local vendors consisting of electricians, engineers, and construction workers. An exodus of crypto miners, according to experts, could translate to jobs and tax dollars moving out of state.

“There are many labor unions who are against this bill because it could have dire economic consequences,” said Boring. “Bitcoin mining operations are providing high-paying and high-grade, great jobs for local communities. One of our members, their average pay is $80,000 a year.”

Hochul addressed some of these concerns in her statement on Tuesday, noting that she recognized the important of “creating economic opportunity in communities that have been left behind” and that she will “continue to invest in economic development projects that create the jobs of the future.”

As Boring points out, New York is a leader when it comes to state legislation, so there is also the potential for a copycat phenomenon rippling across the country.

“Other blue states often follow the lead of New York state and this would be giving them an easy template to replicate,” said Foundry’s Zhang.

“Sure, the network will be fine — it survived a nation-state attack from China last summer — but the implications for where the technology will scale and develop in the future are massive,” continued Zhang.

However, many others in the industry think concerns over the fallout of a mining moratorium in New York are overblown.

Multiple miners told CNBC there are plenty of friendlier jurisdictions: Georgia, North Carolina, North Dakota, Texas and Wyoming have all become major mining destinations.

Texas, for example, has crypto-friendly lawmakers, a deregulated power grid with real-time spot pricing, and access to significant excess renewable energy, as well as stranded or flared natural gas. The state’s regulatory friendliness toward miners also makes the industry very predictable, according to Alex Brammer of Luxor Mining, a cryptocurrency pool built for advanced miners.

“It is a very attractive environment for miners to deploy large amounts of capital in,” he said. “The sheer number of land deals and power purchase agreements that are in various stages of negotiation is enormous.”

FTX heads to a Delaware courtroom as the biggest crypto bankruptcy case yet gets underway

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Read the wild email Tesla is sending to suppliers amid Supercharger chaos

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Read the wild email Tesla is sending to suppliers amid Supercharger chaos

After firing its entire Supercharger team, Tesla has sent out an email to suppliers which shows just how chaotic the decisionmaking leading up to the firings must have been.

Earlier this week, Tesla abruptly fired its entire Supercharging team, leading to an immediate pullback in Supercharger installation plans. Now we’ve seen the email that Tesla has sent to suppliers, and it’s not pretty.

When the firings were announced Monday night, there was little information about how they would affect Tesla’s plans.

On Tuesday, Tesla CEO Elon Musk said that “Tesla still plans to grow the Supercharger network, just at a slower pace for new locations and more focus on 100% uptime and expansion of existing locations.” According to Tesla’s website, Superchargers currently have 99.95% uptime.

But in the interim, we’ve already heard about Supercharger projects being cancelled, including halting rollout in the entire country of Australia, including sites that had already been subject to long-term leases and given the go-ahead for construction which will now be abandoned.

And Tesla has also sent out an email to all of its suppliers, which leaked to the internet. Here it is in full, but with contact information redacted:

To all concerned:

You may be aware that there has been a recent adjustment with the Supercharger organization which is presently undergoing a sudden and thorough restructuring. If you have already received this email, please disregard it as we are attempting to connect with our suppliers and contractors. As part of this process, we are in the midst of establishing new leadership roles, prioritizing projects, and streamlining our payment procedures. Due to the transitional nature of this phase, we are asking for your patience with our response time.

I understand that this period of change may be challenging and that patience is not easy when expecting to be paid, however, I want to express my sincere appreciation for your understanding and support as we navigate through this transition. At this time, please hold on breaking ground on any newly awarded construction projects and planned pre-construction walks. If currently working on an active Supercharging construction site, please continue. Contact [email redacted] for further questions, comments, and concerns. Additionally, hold on working on any new material orders. Contact [email redacted] for further questions, comments, and concerns. If waiting on delayed payment, please contact [email redacted] for a status update. Thank you for your cooperation and patience.

The email is remarkable for several reasons, largely because it shows a lack of structure and consideration to the decision to fire the entire team.

Firstly, Tesla states that it is “attempting” to connect with suppliers and that it may have sent multiple emails to some of them. This suggests that Tesla doesn’t have an established method of contact for all of its suppliers – either it doesn’t have a master contact list, or its previous method including points of contact within Tesla is not usable because, well, those points of contact would have been fired.

Second, it says that the “adjustment” (an odd word for firing an entire department) has led to a process of establishing new leadership roles. This is typically something that a company would consider before changing leaders, and ensure that there are current employees with experience who are ready to step up to take the position of a retiring leader, perhaps with a period of mentorship prior to the outgoing leader’s retirement.

Even in a situation where a firing is sudden, it’s typically reasonable to elevate a previous second-in-command to fill the void. This is why it’s beneficial to have a deep bench – something which Tesla has touted before.

Third, Tesla goes on to mention that these suppliers are “expecting to be paid,” which suggests that Tesla is likely to welch on its payment obligations, at least in the short term. We have seen Musk refuse to pay bills before, so mention of skipping out on payment must raise alarm bells for suppliers who have been working in good faith with Tesla.

Finally, Tesla asks for suppliers to continue construction on active projects, but to hold on breaking ground or doing pre-construction site walks. This could be considered unclear, as there are many parallel steps to approval, permitting and construction of sites, so it’s hard to set a single line that is easily communicated about which sites should continue and which sites shouldn’t. Presumably, site contacts within Tesla would be able to reach out to individual sites and tell them whether to continue construction or not – if they were still working there, which it seems they are not.

To ask for patience is reasonable when an unforeseen circumstance hits a company, but this is not an unforeseen circumstance – it is entirely self-inflicted by Tesla.

Other charging providers have reacted to Tesla’s disruption of its own Supercharger plans, with at least one company, Revel, suggesting that it’s ready to swoop in on “really good sites” that Tesla left on the table, particularly in Revel’s home in New York City.

Electrek’s Take

We have heard from several sources who told us that the reason for these firings is because Rebecca Tinucci, former head of Tesla’s EV Charging division, resisted Musk’s demand to fire large portions of her team.

While this is hearsay, it’s plausible considering the language in Musk’s letter announcing the firings – which claimed that some executives are not taking headcount reduction seriously, and made a point to say that executives who retain the wrong employees may see themselves and their whole teams cut. It isn’t a stretch to think that Musk included those demands since they were related to his firing of Tinucci and her team.

The Supercharging team was one of the more successful and crucial teams within Tesla, and many observers consider the Supercharger network to be Tesla’s primary “moat” that makes it better than the competition. Tinucci was also responsible for negotiating NACS agreements across the industry, leading to a huge win when Tesla’s plug became the de facto standard after basically every automaker adopted it over the course of the last year.

Superchargers are also incredibly important, especially in North America. In Europe there are more successful non-Tesla charge providers, but in NA, Tesla is the big dog. And if infrastructure is important, then Tesla pulling back is bad not just for Tesla but for EVs as a whole.

It seems abundantly clear that, whatever explanation we accept, the firing of the Supercharger team was not well-considered (and our readers seem to agree). Even if headcount reduction is necessary, the whole team shouldn’t be laid off. Even if it was necessary as a retaliatory measure – which would not be a good rationale – it still would be wiser to retain some part of it so as to avoid the chaos suggested by the email above.

Whatever mechanism led to the firing, it does fit into a pattern of increasingly erratic behavior that Musk has been showing lately.

Many possible explanations have been advanced to explain this behavior, and most of them don’t increase my personal faith that Musk will make the right decisions with Tesla.

As I said in our original post about Tesla’s first round of layoffs, we do need Tesla to keep pushing the industry forward. While Pandora’s box is open and EVs are here to stay at this point, regardless of Tesla’s ups and comparatively-rare downs, the rest of the industry is still trying hard to pump the brakes on the transition, even if it means America will be less competitive if those companies get their way.

Tesla is one of the few entities that is large enough and committed enough to dragging those timelines forward, whether the rest of the industry likes it or not. We need a healthy Tesla, and for that, we need steadier management. This email is not an example of that – and neither are most of Musk’s managerial actions recently.

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Podcast: more Tesla layoffs, charging team all gone, what is going on? Let’s talk about it

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Podcast: more Tesla layoffs, charging team all gone, what is going on? Let's talk about it

On the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the additional Tesla layoffs, the entire charging team’s departure, and more. Let’s talk about it.

Sponsored by SplitVolt: The Splitvolt Splitter Switch automatically shares power from your existing 240V dryer socket with your Level 2 EV charger. Learn more here.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.

Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET):

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Save up to $570 on Lectric e-bike bundles, Rad Power flash sale, EVOLV e-scooter special, and more

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Save up to 0 on Lectric e-bike bundles, Rad Power flash sale, EVOLV e-scooter special, and more

Today’s Green Deals are jam-packed once more with EV sales to get you geared-up for the cruising months ahead, led by Lectric eBikes’ 5-year anniversary celebration that is taking up to $570 off select e-bikes, like the XPedition Single-Battery Cargo e-bike at $1,399, while also giving away choices of five add-on accessories. It is joined by Rad Powers’ latest flash sale that is dropping the RadRunner 2 Utility e-bike to $1,299 and also offering free accessories on two other models, as well as a rare special from EVOLV that is dropping the PRO V2 Electric Scooter to its $1,799 low. Plus all of the other days’ Green Deals that are still going.

Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.

Lectric takes up to $570 off e-bike bundles

Lectric eBikes is currently celebrating its five-year anniversary, and wanting to extend the celebrations to its customers, has launched a new limited-time sale that is offering five free accessories along with your purchase of either an XP 3.0, XPedition, or XP Trike e-bike. A standout amongst the bunch is the XPedition Single-Battery Cargo e-bike for $1,399 shipped. Down from its usual $1,933 price tag, we only saw it fall to this price for a short-lived period in March before rising to stay at $1,475 since, but today’s deal is bringing things back to the all-time low once more. You’ll find the dual-battery model down to the second-lowest $1,699 rate. It should also be noted that you’ll automatically see the discounted rate once the e-bike and the accessories have been added to your cart.

The Lectric XPedition e-bike was designed for those who are always on the go – especially folks like parents dropping off and picking up their kids from school or delivery drivers who need long travel ranges. It comes equipped with an upgraded 750W rear hub-motor (1310W peak) alongside a 48V battery that carries the e-bike up to 75 miles on a single charge (150 miles with dual-battery), hitting speeds of 20 MPH using only the throttle and up to 28 MPH with the five levels of pedal assistance. It comes with a variety of features to enhance your ride: the integrated cargo rack, custom puncture-resistant tires, hydraulic mineral oil brakes paired with 180mm rotors, a headlamp, taillights, fenders on both wheels, and a backlit LCD display that gives you all the real-time performance data.

Rad Power RadRunner 2 Utility e-bike now $1,299

Rad Power Bikes has launched a flash sale through May 8 that is giving you three varying deals on three different e-bike models; either a $100 off discount or free accessories. The first of these deals is on the RadRunner 2 Utility e-bike for $1,299 shipped. Usually fetching $1,399 since the company lowered prices across its lineup of models, we’ve seen this e-bike included in most of the company’s holiday sales as well as several flash sales throughout the months, often falling to $1,299, but we have seen one instance of the price dropping further to the $1,199 low. Today’s deal is a solid $100 markdown off the going rate that lands at the second-lowest price we have tracked.

Carrying the mantle as Rad Power’s jack-of-all-trades model, the RadRunner 2 comes equipped with a 750W brushless-geared hub motor and 672Wh battery that propels it to a max speed of 20 MPH and travels up to 50 miles on a single charge. It features a four-level pedal assist with a low-profile cadence sensor, and a simple control panel that gives you the battery’s charge level and allows you to adjust pedal assistance settings. It also comes stocked with a rear-mounted cargo rack that offers a 120-pound payload, puncture-resistant fat tires, a standard LED headlight, and an integrated taillight with both brake light and flash mode capabilities.

The second deal is on the RadRunner 3 Plus for $2,099, which comes with a free accessory worth up to $100. This model comes with a 750W rear hub motor and 672Wh battery that hits a max speed of 20 MPH for 45+ miles on a single charge. It has been upgraded with one extra pedal assist level and offers much of the same array of features as the above deal, with the added bonus of fenders for both tires and a full digital display.

The RadTrike e-tricycle is also receiving a free accessory as part of this sale, albeit a pre-designated large basket for front-side mounting for $1,599. It comes with an equally powerful motor as the above models, but with a smaller 480Wh battery that only reaches a max speed of 14 MPH for a much longer 55+ miles of travel range on a single charge. You’ll also get the full list of features from the above deal as well to round out the package.

This flash sale will continue through May 8, with the discounts on the RadRunner 3 Plus and RadTrike being automatically applied in cart when you add both items to your cart. You can browse through Rad Power’s included accessories here. And head over to our Green Deals hub to look through all the other e-bike brands that are having spring sales, as well as deals on power stations, electric tools, water heaters, and more.

Three different frames with the EVOLV PRO V2 Electric Scooter against the night sky with city skyline in background, within post for Lectric 5-year anniversary sale that has the XPedition Cargo e-bike at $1,399

EVOLV PRO V2 Electric Scooter hits $1,799 low

EVOLV is offering a $200 off special on two of its electric scooter models, like the popular PRO V2 Electric Scooter for $1,799 shippedafter using the on-page promo code PROV2-ROCKS at checkout. Down from its $1,999 price tag, we’ve seen a few different discounts drop over the last year on this particular model since its release, all of them falling to the same $1,799 low during major holiday shopping events like Black Friday and Christmas sales. Today’s deal is no different, coming in as a solid $200 markdown that lands at the lowest price we have tracked.

The PRO V2 e-scooter comes equipped with dual 1,200W motors (2,600W peak) and a 52V battery that carries the scooter up to a max speed of 44 MPH for up to 37 miles on a single charge. You can also upgrade to the Pro-R V2 model for an additional $300 ($500 normally – the above promo code works for this upgraded model as well), boosting your motors to 1,400W of nominal power each and extending travel distance up to 50 miles on a single charge. They both feature front and rear spring suspension, front and rear hydraulic disc brakes, a front fender light, a taillight, running lights, turn signal lights, an IP54 water-resistance rating, and a smart center display – all with a foldable design for easy storage and transport when not in use.

The second model included in this special sale is the CORSA Electric Scooter for $2,635 shippedafter using the on-page promo code CORSA-ROCKS at checkout. This model also sports dual 1,200W motors (but with a 4,800W peak) and a larger 60V battery that hits 44 MPH for up to 37 miles on a single charge. It comes with 11-inch tubeless street-style grippy tires, front and rear shock suspension, dual hydraulic disc brakes, twin Halo LED headlights, in-deck lighting, twin LED taillights, turn signal lights, and a large center display.

Spring e-bike deals!

Other new Green Deals landing this week

The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.

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