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Axios Generate

Indian auto heavyweight Tata Motors is planning a major expansion of its electric vehicle lineup, staked by the big TPG Rise Climate fund and Abu Dhabi-based sovereign wealth fund ADQ.

Driving the news: Tata is creating a new unit that aims to develop a portfolio of 10 EVs over the next five years and, working with Tata Power, build out charging infrastructure in India, the company said.

The two funds are investing $1 billion in a new Tata EV unit and will hold an 11%-15% equity stake at a valuation of $9.1 billion.

Why it matters: It's the "first major fundraising by an Indian carmaker to push clean mobility," Reuters reports.

The story, quoting a top Tata exec, says the company is planning to invest $2 billion overall over the next five years.

It's also among the first investments from private equity giant TPG's climate fund, which in July said it raised $5.4 billion in its opening round and has major corporate backers.

India's Tata Motors nabs $1 billion for EV plans

Tata is creating a new unit that aims to develop a portfolio of 10 EVs over the next five years.

Electric vehicles

Transportation

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

The National Highway Traffic Safety Administration (NHTSA) questioned Tesla in a letter Wednesday on why the company did not file a recall when it updated the self-driving software for some of its vehicle models last month.

Why it matters: Federal law requires automakers to submit a recall when they issue an "over-the-air" update that mitigates a defect that poses an unreasonable risk to drivers.

The big picture: Tesla updated its Full Self-Driving software in late September so the system could detect flashing emergency vehicle lights in low light conditions and adjust vehicle speed in response.

Tesla should have issued a recall "no more than five working days after the manufacturer knew or should have known of the safety defect or noncompliance," NHTSA said.

In a separate letter, the agency questioned why the company allegedly required people to sign non-disclosure agreements in order to participate in beta testing for its Full Self-Driving feature.

NHTSA said the agreements "limit the participants from sharing information about [Full Self-Driving] that portrays the feature negatively, or from speaking with certain people about [Full Self-Driving]" and limited its ability to function as a regulator, since it significantly relies on reports from consumers as a source for information.

What's next: The agency ordered Tesla to send it requested information by Nov. 1 or face daily penalties up to a total amount of more than $114 million.

Telsa did not immediately comment on the NHTSA letter. 

Go deeper: Tesla to move headquarters from California to Texas

U.S. questions Tesla over lack of recall after self-driving update

Automakers are required to submit a recall when they update a defect that poses a risk to drivers.

A person entering a Tesla factory in Lathrop, California, in September 2021.

A person entering a Tesla factory in Lathrop, California, in September 2021. Photo: David Paul Morris/Bloomberg via Getty Images

Tesla

Southwest Airlines canceled more than 350 flights and delayed around 600 others on Monday after mass cancellations over the weekend from what the airline called "operational challenges," according to AP.

Driving the news: The cancellations started after its pilots asked a court to block the company's new COVID vaccine mandate, though Southwest said Sunday the service disruptions were not a result of a planned labor demonstration by its pilots, Axios' Michael Mooney and Ben Montgomery report.

The Dallas-based airline canceled about 1,900 flights over the weekend, citing air traffic control issues and bad weather, AP reports.

The big picture: The company said Monday it expects normal service to return this week, according to Reuters.

The Southwest Airlines Pilots Association said Saturday that its pilots were "not participating in any official or unofficial job actions."

Go deeper: Southwest Airlines denies that pilot "sick out" drove weekend of delays

Southwest cancels over 350 flights, delays around 600

The airline said it expects normal service to soon return after a weekend of mass cancellations.

A person walking past a Southwest Airlines airplane Baltimore Washington International Thurgood Marshall Airport on Oct. 11.

Southwest Airlines

Axios Pro Rata

Dorel Industries agreed to sell its portfolio of bike brands, including Cannondale, Schwinn and Mongoose, for $810 million to Dutch mobility group Pon Holdings.

Why it matters: This creates one of the world's largest analog bike makers, and also reflects surging e-bike usage in the U.S.

Flashback: Dorel in early 2021 rejected a US$371 million takeover offer from Cerberus Capital Management. 

The bottom line: "E-bikes now make up 70% of sales at Pon's bicycle arm. The company has been rolling out new services in Europe, including the popular 'Swapfiets' in Amsterdam where users pay a monthly fee and get repairs and replacement bikes for free." — Reuters

Go deeper: Electric bikes jolt U.S. cities

$810 million deal creates one of world's largest bike makers

Dorel Industries agreed to sell its portfolio of bike brands to Dutch mobility group Pon Holdings.

Mergers and acquisitions

An illustration shows a bike with quarters as the wheels

Axios What's Next

Vaccination rates in popular travel destinations

Data: Our World in Data; Chart: Jared Whalen/Axios

If you're traveling internationally this holiday season, make sure you know all the COVID-related requirements at your destination. 

Why it matters: International travel poses an increased risk of infection even for fully vaccinated travelers. If you don't follow local rules on masks, testing or quarantine, you could be forced to return to the U.S.

What's happening: While domestic air travel has bounced back strongly, international trips are still 56% below pre-pandemic levels, according to data compiled by Airlines for America. 

Mexico and the Dominican Republic are by far the most popular destinations from the U.S. In September, air traffic to those destinations even surpassed 2019 levels.

Be smart: Travel restrictions continue to evolve. Check frequently with your airline and destination for the latest requirements.

In any case, you will be required to get a COVID-19 test before your return to the U.S., even if you are fully vaccinated. 

Go deeper: CDC guidelines on international travel

Pent-up demand for international holiday travel meets COVID

Even fully vaccinated travelers can catch and spread the virus

Air travel

Tesla CEO Elon Musk announced at a shareholder meeting Thursday that the Tesla headquarters will move from Palo Alto, California, to Austin, Texas. 

Why it matters: Tesla isn't the first tech company to leave California. Oracle and Hewlett-Packard Enterprise moved their headquarters from Silicon Valley to Texas in December 2020.

The big picture: Musk said the company plans to increase production in its California facility despite the relocation, which will take time to reach full production. 

Musk cited housing affordability and commutes among reasons for the move. 

“To be clear we will be continuing to expand our activities in California,” Musk said Thursday. “Our intention is to increase output from Fremont and Giga Nevada by 50%. If you go to our Fremont factory it’s jammed.”

Musk decamped to Texas from California in December 2020.  

Tesla to move headquarters from California to Texas

Tesla is the latest tech company to leave Silicon Valley for Texas.

Close up of Tesla logo on a charger at a Supercharger rapid battery charging station for the electric vehicle company Tesla Motors, in the Silicon Valley town of Mountain View, California

Photo: Smith Collection/Gado/Getty Images

Student transportation startup Zum raises $130 million

School bus transportation has become a nationwide problem due to driver shortages.

General Motors is offering detailed revenue goals for its electric vehicle business and new info about plans for new models.

Driving the news: Here are the juicy bits of their investor presentation and announcements Wednesday.

GM's gunning for "leadership in EV market share" — a shot across Tesla's bow — with a broad portfolio of high-volume EVs.

These include a $30,000 Chevrolet crossover SUV, and an electric Chevrolet Silverado pickup, Buick crossovers and Cadillac EVs.

Overall, as part of wider plans to double revenues over the next decade, GM sees $90 billion in revenues from EVs in 2030.

And that doesn't even include the $10 billion they project from its new BrightDrop line of electric delivery vehicles.

The intrigue: Beyond vehicles, GM announced a collaboration with GE to boost supplies of rare earth materials used in EVs and renewable power.

GM also said it's increasing its investment in charging infrastructure to about $750 million through 2025.

The bottom line: GM's betting big on the transition to cars and trucks with a plug, even as it also sees a long-term future for gas-powered models.

Electric takeaways from General Motors' new business plan

GM's betting big on the transition to cars and trucks with a plug.

General Motors

Congress "missed an opportunity" to include autonomous vehicle (AV) regulations in the infrastructure bill, Rep. Cathy McMorris Rodgers (R-Wash.), the top Republican on the House Energy & Commerce Committee, said at an Axios event Wednesday.

Why it matters: Though widespread adoption of AV technology is still years away, members of Congress have made long-shot efforts to get ahead of self-driving vehicles and regulate them for cybersecurity, safety and other standards, but no strict federal standards have been put in place.

The House passed the SELF Drive Act in 2017, but that bill later failed in the Senate because of disagreements over certain liability provisions within it.

What they're saying: "I believe in order for America to lead and win this race around autonomous vehicles, which is certainly a priority for me, that we should be moving right now to provide that national framework for autonomous vehicles," Rodgers said.

"And the infrastructure package that is before Congress right now would have been the perfect opportunity to provide the certainty, as well as the flexibility, to the developers to advance this transformative lifesaving technology for the American people," she added.

"I believe that this is a missed opportunity. I've been beating the drum both in committee and on the floor as we work through this infrastructure package. But it is disappointing right now that some are walking away at the very time that we should be leading."

The big picture: Rodgers said she believes the SELF Drive Act could and should be revived to encourage new innovations within the technology and that disagreements over who exactly should be held liable if there's an accident can be ironed out.

Manufacturers have the resources to produce AV, but they lack direction from Congress, Rodgers said.

"America has led in so many other fields when it comes to innovation," she said. "It is our future, and it may be as big as when we move from horse and buggy to the first Model T Ford back when. This is going to be transformative, and we need to be leading."

Go deeper: Self-driving technology reaches a crossroads

Cathy McMorris Rodgers: Congress not ready to regulate autonomous vehicles

The U.S. still has no strict federal regulations over the rapidly emerging technology.

Congress

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

General Motors plans to double its revenues over the next decade as it transitions to an all-electric future, tapping into software and subscription services that enable new vehicle experiences and connect customers' digital lives, the company told reporters on Wednesday. 

Why it matters: It's an extraordinary target for a lumbering industrial giant that is trying to transform itself from automaker to "platform innovator."

GM previewed key elements of its growth strategy with journalists ahead of an investor meeting today at its technical center outside Detroit. Key highlights include:

Revenue will double by 2030, along with higher profit margins, it said.

Chief executive Mary Barra said the company sees "moderate growth" with its current portfolio of gasoline-powered vehicles and automotive financing. 

But most of the growth will come from the addition of electric vehicles to its lineup, as well as new subscriptions and services, including OnStar insurance.

GM also plans to add revenues from other businesses, including its GM Defense unit, Brightdrop commercial delivery business, Cruise robotaxis — which are getting closer to commercialization — and selling fuel cell technology to partners like Honda. 

More electric vehicles: GM says it plans to reach "leadership in EV market share" — surpassing Tesla — with a broad portfolio of high-volume plug-in models, including a $30,000 Chevrolet crossover utility. 

GM confirmed an electric Chevrolet Silverado will debut at CES in Las Vegas in January.

The Silverado-E will offer a range of more than 400 miles and will feature an optional glass roof and four-wheel steering. 

GM plans to follow it up with an electric version of the GMC Sierra pickup.

"No one is going to be able to touch us in the battery truck space," GM President Mark Reuss, hinting at a unique approach to electric trucks. 

Buick crossovers and Cadillac EVs, including the Lyriq and Celestiq, are also coming, along with the trucks.

GM said 50% of its factories in North America and China will be capable of EV production by 2030.

Hands-free driving: GM unveiled Ultra Cruise, a new advanced driver assistance technology that aims to enable hands-free driving in 95% of all driving scenarios. 

Ultra Cruise will be available on premium vehicles like Cadillac, while GM's existing highway-assistance technology, Super Cruise, will be available on mainstream cars and trucks. 

"The combination of Ultra Cruise for premium offerings and Super Cruise for lower-cost products will enable us to offer driver assist technology across price points and segments," said Doug Parks, GM's executive vice president of global product development, purchasing and supply chain.  

Ultra Cruise will initially cover more than 2 million miles of roads in the U.S. and Canada — 10 times as many as today's Super Cruise — and will eventually cover 3.4 million miles (essentially every paved road in the U.S. and Canada.)

GM plans to double revenues by 2030 as it rolls out EVs and services

The company wants to double revenues by 2030 as it adds EVs and services.

Image of GM CEO Mary Barra with the carmaker's EV platform. 

Beta Technologies, a Burlington, Vermont-based electric aviation company, announced the close of a $375 million Series B funding round on Wednesday, bringing total venture funding for the maker of electric vertical takeoff and landing aircraft (eVTOL) to nearly $800 million.

Why it matters: Beta aims to achieve FAA certification by 2024 and transform the short-range cargo delivery market, from transporting organs to patients to making last-mile and regional cargo deliveries.

The big picture: The funding, led by TPG Rise Climate and Fidelity Management & Research Company, will allow Beta to continue to hone its technology.

The company's aircraft prototype, currently in flight testing, is the dragonfly-like ALIA-250. It can carry up to 1,400 pounds of cargo, or five people plus a pilot.

The plane needs less than an hour to charge after a full mission, the company said in a statement, and on three battery packs (it can hold up to five), the max flight duration is about two hours.

The company is also making a charging network that works for its planes and for electric vehicles.

United Therapeutics, a biotech company founded by Beta director Martine Rothblatt, plans to use the aircraft and chargers for moving manufactured and repaired organs for human transplantation.

The initial charging network includes Bentonville, Arkansas, home to Wal Mart's headquarters. Because the planes take off and land vertically, the stations are not limited to traditional airports.

By the numbers: UPS has ordered 10 aircraft with an option for 140 more. It has also reserved the right to buy Beta's charging stations and sees eVTOL as a way to improve service to smaller markets while reducing its emissions.

Beta's eVTOLs can fly up to 250 miles at 170 mph on a single charge, or about 50 miles further than the distance between Washington, D.C., and New York City.

Blade, a helicopter charter service, ordered five of the ALIA aircraft, with an option for up to 20, for use in transferring passengers between airports or along commuter routes.

The U.S. Air Force is also evaluating Beta's aircraft for its use.

Yes, but: The company has competition in the eVTOL space, several of which went public for financing. These include Lilium Air Mobility, Joby Aviation and Archer Aviation.

Beta stands out for relying on VC funding and institutional investors and focusing on the cargo segment.

Elroy Air, which has raised $50 million, is a competitor in the cargo sector.

Our thought bubble, from Axios transportation correspondent Joann Muller: It's easy to see how electric cargo planes with vertical takeoff and landing capabilities could help companies like FedEx, Amazon and Walmart shuttle goods among warehouses more safely and efficiently.

The trick is balancing the tradeoffs between payload and power. Batteries are bulky and heavy, and they suck a lot of energy just taking off and landing. That cuts down on their flying range and the amount of cargo they can carry.

Editor's note: This article has been updated to clarify that Beta Technologies stands out for relying on institutional investors and VC funding.

Electric aviation startup Beta Technologies raises $375 million

The company is pursuing eVTOL planes and a charging network that can scale.

An ALIA aircraft from Vermont-based Beta Technologies. Photo courtesy of Brian Jenkins/BETA Technologies

Aircraft

Climate change

The electric vehicle revolution is underway, led by the un-sexiest of plug-in models: the commercial truck. 

Why it matters: Growing demand for cleaner trucks means 2021 will be a pivotal year for  electric vehicles — just not the kind you might have expected.

Driving the news: With transportation now the biggest source of greenhouse gas emissions, governments and corporations are embracing new sustainability goals.

Fifteen states and Washington, D.C. this summer announced a plan to require all new trucks, vans and buses in their states be electric by 2050.

The impact of the pandemic is adding to the urgency: E-commerce has exploded while people have been staying home, putting more polluting trucks on the road. 

"Amazon could become the world's single biggest entity for emissions" — aside from China's coal plants, the firm's automotive analyst Adam Jonas told attendees at an online conference Thursday. 

That's why the giant retailer's sweeping climate change strategy includes an aggressive plan to deploy 100,000 electric delivery trucks by 2030, he noted.

What's happening: Leading truck manufacturers are rolling out a bevy of electric models ranging from local delivery trucks and beverage haulers to garbage trucks and long-haul semi-trucks. 

The latest is Volvo's new VNR electric model, a regional hauler with a range of up to 150 miles that can be recharged in a little over an hour. Launched Thursday after two years of pilot tests, it will go into production early next year in Virginia.

Freightliner, Tesla and China's BYD are among other companies bringing electric big rigs to market in the next year or so.

At the other end of the spectrum, Ford just introduced its E-Transit cargo van, which goes on sale late next year, and GM is reportedly planning an electric delivery van, too.

A slew of startups are also rushing into the electric truck space, including Rivian, Arrival and Nikola. 

One company that hasn't gotten much attention until now is Lion Electric, which got its start selling electric school buses and has 300 already on the road. 

The Canadian company has been around since 2008 — about as long as Tesla — and just announced plans to go public via reverse merger with Northern Genesis Acquisition, a special purpose acquisition company (SPAC).

After the deal, which gives it access to $500 million in new capital, Lion will be worth an estimated $1.9 billion.

The company has a multi-year purchase agreement with an unnamed customer to buy up to 2,500 electric trucks between now and 2025. As part of the deal, Lion issued the customer a warrant to buy just under 20% of the company.  

The first 10 trucks are going to Amazon. It also has orders from CN and Waste Connections, among others.

The trucks will be manufactured at Lion's Canadian facility, which can produce up to 2,500 per year, but with funds raised through the SPAC deal, Lion plans to open a much larger factory in the U.S.

The bottom line: Consumers might still be reticent about electric cars, but the momentum for electric trucks is growing. 

Clean trucks are paving the road to the electric vehicle era

The impact of the pandemic on e-commerce is adding to the urgency.

Energy

Alternative energy

Boeing expects demand for commercial airplanes over the next decade to be 11 percent lower than what it was forecasting just a little over a year ago — a direct result of the economic shock from the coronavirus pandemic. 

Yes, but: Long-term growth rates should return after 2030, the company said Tuesday.

Why it matters: The pandemic upended what had been a long, steady ascent for the global aviation industry, with U.S. domestic passenger traffic down 70 percent and by as much as 90 percent internationally.

By the numbers: Boeing's annual forecast, published since 1961, is considered one of the most accurate forecasts in the aviation industry.

The company estimates the total market for planes, products and services will be $8.5 trillion over the next decade, down from the $8.7 trillion forecast a year ago.

It projects demand for 18,350 commercial airplanes in the next decade — 11% lower than the comparable 2019 forecast — worth about $2.9 trillion. Many of them will be replacements for existing planes. 

Demand for defense and space aircraft remains strong, a market worth $2.6 trillion, with 40 percent outside the U.S. 

Longer term, the trends look more stable, Boeing said: 

Over the next 20 years, passenger traffic growth is projected to increase by an average of 4% per year. 

The global commercial fleet is expected to reach 48,400 by 2039, up from 25,900 airplanes today. 

Asia-based airlines will continue to expand their share of the world’s fleet, to nearly 40%, from about 30% today.

There's also some good news on the jobs front. Despite massive furloughs during the pandemic, demand for pilots and technicians remains strong.

Boeing estimates the industry will need 2.4 million aviation personnel worldwide between now and 2039. 

The bottom line, says Boeing's chief strategy officer, Marc Allen: 

“While this year has been unprecedented in terms of its disruption to our industry, we believe that aerospace and defense will overcome these near-term challenges, return to stability and emerge with strength."

Boeing expects to sell fewer planes over the next decade

The lowering demand is a direct result of the economic shock from the coronavirus pandemic.

Image of a Delta Air Lines planes at Salt Lake City airport. 

(Photo by DANIEL SLIM/AFP via Getty Images)

Boeing

Business

Gasoline-powered cars may be going the way of the woolly mammoth, even if it will take decades to replace them and seems hard to fathom today. 

The big picture: Internal combustion engines (ICEs) have powered automobiles for more than 100 years. But the shift to electric vehicles, slow to materialize at first, is now accelerating due to tightening government policies, falling costs and a societal reckoning about climate change.

Driving the news: California said this week it plans to phase out sales of conventional new cars by 2035 in favor of zero-emission vehicles that run on electricity.

Gov. Gavin Newsom's executive order no doubt faces a giant legal fight and could depend heavily on the election outcome and the shape of the Supreme Court, Axios' Ben Geman explains.

The rest of the world is far ahead, with at least 15 countries already banning new gasoline cars and others adopting strict policies to spur EV adoption. 

Eyeing the end of gas-powered cars

"Europe and China have woken up to the fact that [the combustion engine] is dead."

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