Lotus Lands a SPAC (2/6/23)

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Now to the headlines.

In this week's issue: 🚨  Making News: Lotus lands a SPAC, more EVs get credits, Mach-E production boost       🇪🇺   Europe Electrified: CATL Swiss listing, Tata eyes Spain & UK, NIO EL7 hits Europe 🧧  China Report: Tesla Shanghai steps up, Zeekr X brand, China tops 2022 cell list

🚨 Making News 🚨

Lotus to go public in $5.4 billion merger with SPAC tied to LVMH's Arnault. Thought SPACs were a thing of the past? Think again. Geely-owned Lotus Technology has agreed to a merger deal with L Catterton Asia Acquisition Corp, which combined with the private equity operations of Bernard Arnault's LVMH in 2016. LVMH remains a passive minority investor in the L Catterton. Geely and other owners are expected to retain 89.7% of Lotus after the merger. Lotus plans to launch its all-electric Eletre SUV later. 

Treasury Department revision opens more EVs to tax credits. The change in the department's vehicle classification definitions make more EVs from Ford, GM, Tesla and Volkswagen eligible for up to $7,500 in tax credits. Treasury now allows vehicles automakers consider crossover SUVs to qualify for credits. The decision raises the retail price cap to $80,000 from $55,000 for GM's Cadillac Lyriq, Tesla's five-seat Model Y, Volkswagen's ID.4, the Ford Mustang Mach-E and Escape Plug-in Hybrid.

The pipeline: 50 new all-electric vehicles coming soon. If you're overwhelmed by all the new EV announcements, fear not. U.S. News & World Reports has done the work for you. So sit back, relax and check out the future EV pipeline, from the Apple Car and Canoo pickup truck to the all-electric Bronco.

Other news:

• Faraday announces $135 million in convertible secured notes financing commitments

• Tesla bumps up Model Y price after EV tax credit adjustment

• Ford Boosts Production of Mustang Mach-E Electric SUV, cuts prices

• Tesla Cybertruck beta prototype spotted ahead of production start

• DoD awards Canoo battery module contract for advanced testing

• Tesla Expected to Announce Mexico Project Soon

• Rivian confirms it is developing an electric bike

• Ford CEO says next-gen EV pickup, new electric platform is ‘deep in development’

• BMW to invest $866 million in Mexico in EV push

• Volvo readies EV push in biggest product revamp under Geely

• EV battery maker ONE raises $300 million, now valued at $1.2 billion

• GM hires former Tesla exec to head mergers and acquisitions

• GM to co-develop Nevada lithium mine as it ramps up EV production

• Bollinger Motors revives B1 and B2

• GM doesn’t expect significant U.S. production of EVs until second half of year

• Mullen announces pilot with Loop Global and Menzies Aviation

• NIO hiring Head of Service Planning for U.S.

• 2023 Hyundai Ioniq 6 Beats the Tesla Model 3 on Range

🇪🇺 Europe Electrified 🇪🇺

CATL seeks to raise $5 billion in Swiss listing to fund Europe expansion. The listing could come as early as May and could increase to $8 billion depending on financial market conditions. The supplier for Tesla, Volkswagen Group, BMW Group and NIO raised $6.7 billion in a private placement last June in one of the world's largest equity capital market transactions for 2022. In August, CATL said it would build a 7.3 billion euro ($7.6 billion) battery plant in Hungary.

Lightyear's operating company Atlas Technologies declares bankruptcy. The news comes just a week after Lightyear announced it would stop production of its first solar vehicle, the $260,000 Lightyear 0, which was being manufactured by Valmet Automotive in Finland. Atlas Technologies is Lightyear's operating company, responsible for the production of solar cars. It was declared insolvent by a Dutch court.

Other news:

• Tata considers Spain, UK for EV battery plant

• Volvo design to be led by exec from EV startup Arrival

• NIO begins delivering EL7 SUVs in Europe

• XPeng launches G9 and new P7 in Europe, restarts efforts to build presence overseas

• Nissan plans to launch its first EV with a solid-state battery in 2028

🧧 China Report 🧧 

Tesla to raise Shanghai output after price cuts stoke demand. The increase in production will span over the next two months to meet demand stoked by aggressive price cuts in the country. Tesla plans to produce a weekly average of 20,000 units in February and March. In the first 29 days in January, Tesla's average daily retail sales in China surged 36% year-over-year, to 25,686 vehicles.

Zeekr names third model, the Zeekr X, and releases official images. After teasing the model, Geely's EV subsidiary Zeekr has finally unveiled the name of its third model along with official images. Zeekr said the Zeekr X SUV can accelerate from 0 to 100 kilometers per hour in under four seconds. The Zeekr X is 4,450 mm long, 1,836 mm wide and 1,572 mm high, with a wheelbase of 2,750 mm, according to the company's announcement. Zeekr first launched as an independent entity under Zeekr back in March 2021.

Chinese companies dominate list of top battery cell producers for 2022:

Other news:

• Former XPeng CEO assistant assumes vice president of Changan-backed AVATR

• BYD's NEV sales fall to 151,341 units in Jan, ending 10-month streak of growth

• Xiaomi demands payout from supplier after car designs leaked

• NIO swapped record 900,000 batteries in 17 days during the Chinese New Year

• Chinese EV MoM sales decline a blow to startups