Core Viewpoint - Nio is considered an undervalued growth stock despite its disappointing performance over the past few years, with a current stock price of approximately $5 compared to its IPO price of $6.26 and a peak price of $62.84 in February 2021 [1][2]. Group 1: Business Expansion - Nio is expanding its battery-swapping network, which differentiates its vehicles from competitors and enhances customer loyalty. As of June, Nio operated 3,445 power swap stations, a significant increase from 777 stations at the end of 2021 [5][6]. - The company is collaborating with major investors, including CATL, to fund the growth of its battery-swapping network, which is expected to generate higher-margin recurring revenues through its "battery as a service" (BaaS) model [6]. Group 2: Delivery Growth - Nio's annual deliveries rose by 39% in 2024, reaching 221,970 vehicles, driven by strong sales of its ET series sedans and Onvo SUVs, as well as expansion into Europe [8][9]. - In Q1 2025, deliveries increased by 40% year over year to 42,094 vehicles, with total deliveries in the first half of 2025 rising nearly 31% to 114,150 vehicles, indicating continued growth potential in both China and Europe [9]. Group 3: Financial Performance - Nio's vehicle margin improved from 9.5% in 2023 to 12.3% in 2024, as the company sold a higher mix of premium sedans and streamlined production costs [11][12]. - Analysts project Nio's revenue to rise by 37% to 90.2 billion yuan ($12.6 billion) in 2025, with a compound annual growth rate (CAGR) of 26% expected from 2024 to 2027, reaching 132.7 billion yuan ($18.5 billion) [10]. Group 4: Valuation - Nio's current valuation is significantly lower than its growth potential, trading at an enterprise value of 67.9 billion yuan ($9.5 billion) and just 0.8 times this year's sales, compared to Tesla's 10.9 times [13].

So should we expect some more departures, Steve. Well, I think we may look another tough quarter for Tesla. Unit sales down 14% year over year.Q2 revenues coming in, we think at about 23.5% billion. That's down 8% year over year on track for 97 billion in total revenue. So we have here is flat growth.And when Tesla is hyping itself as a high tech company, which I think it is, it's hard to sell the flat growth story. So they need to keep talking top executives in place. They need to get new product to market ...

Regulatory Policy & Market Impact - China's ride-hailing association announces Beijing will completely ban gasoline vehicles from ride-hailing platforms starting July 20 [1] - Previous policies already forced pre-China VI emission standard gasoline vehicles out of the market, further restricting gasoline vehicle access [1] - The policy change has caused mixed reactions among ride-hailing drivers, with electric vehicle drivers welcoming the change [1] - Gasoline vehicle drivers face issues such as vehicle depreciation and outstanding loans [1] - The price of used gasoline vehicles used for ride-hailing has plummeted in the second-hand market [1]

Core Insights - Rivian is set to resume preparatory work on its Georgia factory in August, aiming to break ground early next year, following a $6.6 billion funding approval from the Biden administration's Department of Energy [1][9] - The company has invested over $80 million in the project as of June 20, 2025, with plans for "deep utilities" installation starting in August and "vertical construction" beginning in Q1 2026 [2] - Rivian is actively engaging with existing suppliers to explore co-location opportunities near the Georgia factory, which is expected to support the production of the R2 SUV and R3 hatchback by 2028 [3] Investment and Job Creation - As of June 2025, Rivian's investment in the Georgia factory has increased from $41 million in July 2024 to over $80 million, creating 46 full-time jobs so far [2] - The company plans to leverage Georgia's strong automotive supplier base to optimize logistics costs and enhance the supply chain, which is expected to promote regional and national job growth [14] Project Timeline and Challenges - Rivian initially announced the Georgia factory project post-IPO in late 2021, with original plans for construction to start in 2022 and production by 2024, backed by $5 billion investment and $1.5 billion in state incentives [7][8] - The project faced delays due to local opposition and supply chain issues, leading Rivian to prioritize expansion at its Illinois factory instead [8] - The timeline for the Georgia project was pushed back, with the company announcing the delay in 2024 during the unveiling of the R2 SUV and R3 hatchback [8] Government Engagement - Rivian's CEO RJ Scaringe met with Georgia's Governor Brian Kemp in May to discuss ongoing work and project updates, indicating a strong partnership with the state [4] - The company is coordinating with the state's economic development department to identify existing suppliers in the region that can support the factory's operations [13][14]

Stock Market & Investment - Tesla's stock closed at $313.51, up 1.17% [2] - ARK Invest bought 45,761 shares of Tesla for its ARKK fund, valued at approximately $14 million, making up 9.26% of the fund [2] - ARK also purchased 13,944 shares of Tesla for its ARKW fund, valued at around $4 million, representing 6.4% of the fund [2] Electric Vehicle Market & Sales - Electric vehicles account for 96.9% of new car sales in Norway [2] - Tesla's Model Y holds 27.2% market share in Norway [2] - Tesla's June sales in Norway increased by 54% year-over-year [2] - Model Y registrations in Norway increased by 115.3% year-over-year, reaching 5,004 vehicles [2] - Model Y accounted for 5,004 out of 18,376 new cars sold in Norway in June [2] - Tesla's new car sales in Europe have declined for the fifth consecutive month, despite strong performance in Norway, Spain, and Portugal [2] Full Self-Driving (FSD) & Safety - Australia's transportation authorities are delaying the rollout of Tesla's FSD (Supervised) system [3] - Tesla's data indicates that vehicles using Autopilot, including FSD, have a lower collision rate than the US average [3] - Tesla vehicles have a fire incident rate of 1/135 million miles, compared to the US average of 1/17 million miles [3] - Road deaths in Australia have reached 1,336 in the past 12 months, a 5.2% increase from the previous year [3] Tesla Semi & Charging Infrastructure - PepsiCo is building a Tesla Semi charging station in Charlotte, North Carolina, with 18 high-power charging stalls [3] - Each charging stall will provide up to 1 megawatt of charging power, capable of charging a Semi to 70% in 30 minutes [3] - The charging station will include an 8.19 megawatt-hour energy storage system composed of Tesla Megapacks [3] - Tesla plans to invest $100 million to build nine Tesla Semi charging stations in the southwestern US [3] Energy Storage & Virtual Power Plant (VPP) - Tesla has connected 63,122 Powerwalls in Puerto Rico to create a virtual power plant (VPP) [3] - Tesla pays $1 per kilowatt-hour (kWh) to residents who join the VPP [3] - Each Powerwall in the VPP is estimated to earn $500 to $1,200 annually [3]

Core Viewpoint - The utility sector is poised for significant growth due to a surge in electricity demand driven by advancements in artificial intelligence, data centers, and electric vehicles, with a projected increase in demand of 55% over the next 20 years compared to just 9% from 2000 to 2020 [3][4]. Industry Trends - Electricity demand grew by 9% from 2000 to 2020, but is expected to grow by 55% over the next two decades [3]. - The demand for electricity from AI and data centers is projected to increase by 300% in the next decade, while electric vehicles are expected to drive a staggering 9,000% increase in electricity demand by 2050 [4]. - By the middle of the century, electricity is projected to account for 32% of final energy demand, up from 21% [4]. Investment Opportunities - Vanguard Utilities Index Fund ETF (VPU) offers diversified exposure to the utility sector with a yield of approximately 2.8% [6]. - NextEra Energy (NEE) has a strong growth platform with a 10% annualized dividend increase over the past decade and a yield of around 3.2% [7][8]. - The Southern Company (SO) has recently started two nuclear reactors, enhancing its clean energy supply and yielding 3.2% [9]. - Duke Energy (DUK) focuses on regulated utility customer bases, with a dividend yield of about 3.5% [10]. - Dominion Energy (D) has a higher yield of 4.7% but has faced challenges with a dividend cut [11]. - Black Hills Corporation (BKH) has achieved Dividend King status with a yield of 4.8% and a growing customer base [12]. - Constellation Energy (CEG) operates the largest nuclear power fleet in the U.S. but has a lower yield of 0.5% [13]. - Brookfield Renewable offers a diversified clean energy investment with yields of 5.8% for the partnership class and 4.5% for the corporate class [14][15]. - Portland General Electric (POR) has a yield of 5.1% and operates in a region with potential for data centers despite wildfire risks [17]. - Eversource Energy (ES) focuses on regulated utility assets with a yield of approximately 4.7% [18]. Long-term Outlook - The trends driving electricity demand are expected to unfold over decades, presenting opportunities for long-term investors to build wealth as the demand growth story develops [19].

Trade Relations - Sino-European electric vehicle negotiations are nearing completion, pending EU's political will [1] - China's Ministry of Commerce will impose anti-dumping duties on brandy imported from the EU starting July 5, 2025, for a 5-year period [2] - The investigation determined that EU brandy was being dumped, threatening the domestic brandy industry, and a causal relationship exists between dumping and the threat of material damage [2]

Robotaxi Development - Tesla is expanding its Robotaxi service, currently testing in Austin, Texas, using Model Y vehicles equipped with potential LiDAR technology for mapping and calibration [2] - The company uses LiDAR to establish ground truth data for calibrating its vision system's depth perception and distance measurement, ensuring FSD system performance in specific areas [2] - Austin is considered Tesla's "ground-zero" location for Robotaxi development, allowing for concentrated calibration efforts before expanding service areas [2] Impact of the "大而美" (Great and Beautiful) Act on Battery Manufacturing - The "大而美" Act's 45X credit offers \$35 per kWh tax credit for battery cell production and \$10 per kWh for battery modules, contingent on US manufacturing and increasing domestic content requirements [2] - Tesla is building a new LFP battery factory in Nevada, expected to be completed by the end of 2025, to produce US-made LFP batteries and qualify for the 45X credit [2] - The 48E investment tax credit for energy storage systems like Megapack requires 55% domestic content by 2026, increasing to 75% by 2030, which Tesla is positioned to meet due to its US-based manufacturing of key components [2] - The company faces challenges in meeting the increasing domestic content requirements, potentially missing out on tax benefits if it continues to rely on Chinese CATL batteries or equipment [2][3] Sales and Market Performance - Tesla's UK sales rebounded in June 2025, growing by 12% with 7,891 vehicles delivered, driven by the new Model Y [3] - In Norway, Tesla sold 5,646 electric vehicles in June, a 53.8% increase year-over-year, with Model Y accounting for 88.6% of Tesla's total sales and 27.2% of all new car registrations in Norway [3] - Tesla sold over 4,500 electric vehicles in Australia in June, marking its highest record since 2025, boosted by new Model Y deliveries and incentives on Model 3 inventory [3]

Automotive Industry & Software Development - German automotive industry, including 11 manufacturers and suppliers, collaborates to develop an open and standardized in-vehicle software platform to accelerate software updates and enhance vehicle intelligence [2] - The collaborative platform will support over-the-air (OTA) software updates, improving vehicle safety and user experience [2] - The modular software for autonomous driving platforms is planned for launch in 2026, providing flexibility and scalability for various car models [2] - The collaboration aims to address the slow software development criticized in the German automotive industry, fostering agile development like tech companies [2] Tesla & Electric Vehicle Charging Infrastructure - Tesla officially launches the first batch of V4 Supercharger stations in China, with a maximum charging power of 350 kW, and up to 500 kW with V4 Supercharger cabinet, supporting vehicle battery architectures from 400 V to 1000 V [2] - By June 2025, Tesla has over 2100 Supercharger stations in China, providing over 11600 charging piles, with V4 Superchargers initially deployed in Shanghai, Gansu, Zhejiang, and Chongqing [2] - Other companies like BYD (1 MW), Zeekr (1.2 MW), and Huawei (1.5 MW) are also developing high-power charging solutions [2] Robotaxi & Autonomous Driving Challenges - Tesla may face approximately 100000 lawsuits annually, potentially costing $25 billion if each lawsuit averages $250000, assuming 1 accident per vehicle every 10 years across a fleet of 1 million Robotaxis [2] - Full Self-Driving (FSD) technology needs to achieve a reliability of 99999% or higher to significantly reduce accident rates [2] - Tesla needs to navigate varying state regulations to obtain permits for fully autonomous driving, with Texas requiring permits for driverless cars from September 2025 [2] - Expanding charging infrastructure is a challenge for Tesla as the Robotaxi fleet grows, requiring more charging stations and potentially wireless charging technology [2]

And Xiaomi shares have touched a record high after strong initial orders for its new $35,000 SUV intended to compete with Tesla's Model Y in China. The company says it got over 289,000 pre-orders for the YU7 within an hour, and that exceeded analyst's expectations. The new model is going to be a test of demand for Xiaomi cars after a fatal crash, which involved a different model sparking scrutiny from Chinese authorities.Let's get to Bill Russo now. He is founder and CEO of Auto Mobility, a global strategy ...