The Unsustainable Strain Of AI’s Insatiable Power NeedsThis week’s Current Climate newsletter also looks at how electric cars could get much cheaper and Rivian’s RJ Scaringe on China’s EV price advantage.Read more: https://t.co/b7d08vY7aM ...

Tesla introduced a $39,990 version of the Model Y, making its top-selling vehicle more affordable to counteract the loss of US incentives for electric cars. https://t.co/uu8vE53XpI ...

Investment & Strategy - BMW's investment in its new architecture is the largest single investment ever made, exceeding €10 billion last year [1][3] - The company views this investment as a self-fulfilling prophecy, with widespread internal support [2] - BMW anticipates a profitable future from this platform, with iX3 deliveries expected in the first quarter of 2026 [3] Market & Competition - BMW aims to increase its global market share with its new electric car, alongside its existing combustion engine and plug-in hybrid X3 models [4] - The company believes its new car will be the industry benchmark in terms of performance and technology [5] - BMW expects to gain market share from Tesla, citing Tesla's sales decline in Europe, including double-digit drops in Germany and France [5][6] Technology & Performance - BMW emphasizes the first-mover advantage of its new car, highlighting its charging speed, range, and energy efficiency of 15 kilowatt hours per 100 kilometers [6][7] - The company believes its brand strength and high-quality recognition will give it an advantage over new entrants in the electric car market [8] Brand Perception & Customer Shift - BMW believes the pendulum is swinging back from Tesla to BMW, noting that in Europe, BMW already sells more electric cars than its competitor [8][9] - A 2019 survey indicated that many drivers were switching from BMW to Tesla Model 3s, but the trend is now reversing [8]

The competition between China’s electric-car hubs is not just a question of bragging rights https://t.co/8LZZMyTRJn ...

Core Viewpoint - Rivian Automotive is positioned for significant growth due to the introduction of new, lower-priced models, making its stock undervalued compared to market expectations [1][7]. Financial Outlook - Rivian's new R2 model, priced under $50,000, is set to begin production in early 2026, with additional models (R3 and R3X) expected to follow shortly [2]. - The company is anticipated to experience substantial improvements in financial performance as it scales production and sales of these mass-market vehicles [5]. Market Comparison - Historical data shows that when Tesla launched affordable models like the Model 3 and Model Y, their sales increased significantly, indicating a potential similar trajectory for Rivian [3]. - Rivian is projected to surpass Tesla in near-term sales growth due to multiple model introductions planned for 2026 and 2027 [5]. Profitability and Valuation - Rivian's gross margins are now comparable to Tesla's, although profit margins remain negative; this situation is expected to improve as sales scale [5]. - Rivian shares are trading at a price-to-sales discount of approximately 75% compared to Tesla, indicating a significant valuation gap despite the company's growth potential [7]. - With a market capitalization of $15 billion, Rivian's improving margins and sales growth suggest that the stock is not overpriced [7].

Core Viewpoint - Lucid Group is expected to experience significant sales growth in 2025, primarily driven by the new Gravity SUV platform, despite a recent decline in share price due to broader market corrections [1][2]. Group 1: Sales Growth Projections - Analysts predict that Lucid's revenue will nearly double in 2025, largely due to the launch of the Gravity SUV platform [1]. - In early 2024, analysts had also projected over 100% annual sales growth, influenced by a smaller sales base and one-time sales to the Saudi government exceeding $50 million [3]. - Historical data shows that despite spikes in sales growth projections, Lucid's stock price and valuation multiples did not significantly change [4]. Group 2: Market Sentiment and Valuation - The recent drop in Lucid's share price, approximately 20% since the beginning of 2025, is attributed to a general market correction affecting electric vehicle stocks [2]. - The market remains skeptical about Lucid's long-term survival due to its smaller size compared to competitors like Tesla, which affects its valuation [6][7]. - Lucid's growth trajectory has not always met expectations, leading to cautious market sentiment regarding future growth forecasts [7].