Latest news with #EVsector
Auto Express
2 days ago
- Automotive
- Auto Express
More Chinese EV price cuts as MG responds to EV grant confusion
The Government's announcement that buyers of pure-electric cars priced under £37,000 could receive a grant worth up to £3,750 has been met with plenty of confusion. To help clear things up and entice buyers even more, MG has announced it will give all private buyers of the MG4 and MGS5 EV its own £1,500 'grant'. That's in addition to whatever comes from the official Electric Car Grant. Advertisement - Article continues below David Allison, Head of Product and Planning for MG Motor UK, told Auto Express that customers had been 'put off' by the grant thanks to a lack of clarity over which cars meet the eligibility criteria and if a car's price tag would be lowered to dip under the £37,000 grant ceiling in the near future. MG is yet to find out if its Chinese-built MG4 and MGS5 EV will be able to meet the sustainability criteria to qualify for the UK Government's grant - whether that's the maximum £3,750 or the second tier £1,500 figure. However, MG has said it is still in the 'process of securing any of the Government-backed support which has been made available'. As a reminder, the MG4 sits under the £37,000 grant cut-off for the Electric Car Grant, coming in at £26,995 in SE specification and topping out at £36,495 in Trophy Extended Range form. The MGS5 EV in SE trim is priced from £28,495 and goes up to £33,495 for the Trophy Long Range. Guy Pigounakis, Commercial Director for MG Motor UK said, 'MG has been a key contributor to the EV sector. Today's announcement underlines this commitment and in addition to this, we will also seek to work constructively with the Government to further increase the sale of EVs.' MG also said the Cyberster roadster (which starts from £54,995) would not be a part of its £1,500 discount scheme and neither would the incoming IM5 and IM6 models. Since 2019 MG has been the fifth most popular EV brand with car buyers in the UK. A total of 95,000 MG electric cars have found homes. MG is not the first brand to preemptively offer its own electric car 'grant' in the wake of the official Government announcement. Leapmotor and Ora are taking similar measures to circumvent any confusion buyers might be feeling around the cars that will or will not qualify for the scheme. Did you know you can sell your car through Auto Express ? We'll help you get a great price and find a great deal on a new car, too .
Coin Geek
22-05-2025
- Business
- Coin Geek
RBI scrutinizes select e-wallets after taxi app collapse
Getting your Trinity Audio player ready... The Reserve Bank of India (RBI) is reportedly reviewing certain digital wallets linked to electric vehicle (EV) services following the abrupt shutdown of BluSmart, the country's largest all-electric taxi platform. The collapse left thousands of users unable to retrieve money stored in the app's wallet, prompting concerns over the safety of funds in such closed-loop payment systems, according to a Bloomberg report. These wallets, which can only be used within a single platform, are common across India's expanding digital services sector, particularly in the EV space for tasks like booking rides or accessing charging stations. Unlike open-system wallets under the RBI's direct oversight, closed-loop wallets operate with fewer regulatory safeguards, making users vulnerable during business failures. According to the report, the RBI has begun informal discussions with EV charging operators and other app-based platforms to evaluate consumer protection measures. The central bank may soon convene a formal meeting with stakeholders to explore potential regulatory changes. One proposed measure includes requiring closed-loop wallet providers to place customer funds in escrow accounts—similar to requirements for payment aggregators—to ensure users can recover their money if a company ceases operations. The RBI is also considering applying elements of its Prepaid Payment Instruments (PPI) rules to large-scale closed wallets. A prepaid payment instrument (PPI) is a financial tool that enables users to load funds onto a card or digital wallet for future transactions. In India, PPIs encompass mobile wallets like Paytm, PhonePe, and MobiKwik, as well as payment gateways such as Razorpay. So far, the RBI has permitted PPI users to conduct Unified Payments Interface (UPI) transactions through third-party mobile apps, enhancing the scope of digital payment services in India. This means that users can transfer or receive funds through UPI in their PPI wallet using third-party apps, making it interoperable. BluSmart, once a major rival to Uber in India's ride-hailing market, halted new bookings despite operating the country's largest all-electric fleet of over 8,000 vehicles. Its suspension of services in Delhi, Mumbai, and Bengaluru sparked an online backlash. While some users reportedly said they received wallet refunds, others face a 90-day wait. The crisis deepened after Indian market regulator, the Securities and Exchange Board of India (Sebi), accused co-founders Anmol and Puneet Singh Jaggi of diverting loans meant for vehicle leasing to fund personal luxury purchases. BluSmart's reliance on corporate leasing—mainly through Gensol Engineering Limited, also run by the founders—has further raised concerns over financial mismanagement and transparency. While no formal regulatory action has been taken yet by the RBI, expanding oversight of app-specific wallets could significantly impact India's digital economy, where prepaid balances are widely used to promote customer loyalty and frequent usage. This is especially significant at a time when India, the fastest-growing large economy, expects its digital economy to grow almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2030. This means that, in about five years, the share of the digital economy will become larger than that of agriculture or manufacturing in the country. Agriculture employs around 45% of India's workforce and contributes nearly 15% to its $3.5 trillion economy. In India, e-wallets—also known as digital wallets—are mobile applications or software tools that let users securely store their payment details for both online and offline transactions. Functioning like virtual versions of traditional wallets, these platforms allow for cashless payments, eliminating the need to carry physical currency or cards. The growing use of e-wallets in the world's most populous nation has played a key role in driving the shift toward a cashless economy, making transactions faster and more convenient for millions of users. PhonePe is a widely used digital payment platform in India, built on the Unified Payments Interface (UPI). It facilitates money transfers and bill payments and provides access to financial services like insurance and investment products. Google Pay (NASDAQ: GOOGL) has also emerged as a major player in India's digital payments space. It offers a smooth and secure interface for conducting UPI payments, whether online or at physical stores. Amazon Pay (NASDAQ: AMZN), integrated within the Amazon app, functions as a closed-loop wallet in India but is also accepted by several partner merchants, making it useful beyond Amazon's ecosystem. Other popular digital wallets in India include MobiKwik, Ola Money, and Airtel Money. These platforms enable quick payments, mobile recharges, and utility bill settlements. Watch: RockWallet is the go-to app for everyone title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Entrepreneur
21-05-2025
- Automotive
- Entrepreneur
Rivian Stock Below $20: Charging Up or in the Breakdown Lane?
Rivian Automotive's stock is set for growth, driven by operational milestones, partnerships, and a strong product pipeline in the expanding EV sector. This story originally appeared on MarketBeat Rivian Automotive, Inc. (NASDAQ: RIVN) is a key player in the electric vehicle (EV) market, and the company's stock is currently trading just below $20, marking a potential inflection point for investor consideration. Investors often analyze key moments (such as dropping below a multiple of 10) to differentiate volatility from fundamental changes in a company's growth strategy. [content-module:CompanyOverview|NASDAQ:RIVN] Rivian's recent achievements, including its second consecutive quarter of positive gross profit in Q1 2025, suggest that the company is refining its production processes and financial management. Yet, Rivian's stock price is currently finding it difficult to stay above the $17.00 level consistently, which seems odd because in Rivian's history, higher stock peaks have been achieved with seemingly less justification. When you look at Rivian's strategic initiatives and underlying business principles, it reveals a persuasive growth story as it aims for a leading position in the EV sector. So the question then becomes, are investors just waiting on the batteries to charge so they can take off again, or has Rivian gone into limp mode as it coasts into the breakdown lane? Turning the Corner: Rivian's Strategic and Fiscal Advancement Rivian's first quarter of 2025 earnings report revealed that the company had achieved its second consecutive quarter of positive gross profit, reaching $206 million (17% gross margin), indicating improved manufacturing efficiency and progress toward profitability. This positive financial performance is expected to unlock a $1 billion investment from Volkswagen Group (OTCMKTS: VWAGY) by June 30, 2025, as part of a strategic joint venture worth up to $5.8 billion to develop next-generation EV technology, starting with Rivian's R2 platform. In the first quarter of 2025, Rivian's production reached 14,611 vehicles, and they delivered 8,640, meeting their anticipated targets. To enhance the efficiency and reduce the expenses associated with their initial R1 platform, Rivian undertook a retooling shutdown in the second quarter of 2024. The continued development of the R2 platform is progressing as planned, with production slated to begin in the first half of 2026, and it is expected to have significantly lower material costs than the R1. Rivian is also actively growing its commercial vehicle business, having recently established a collaboration with HelloFresh (OTCMKTS: HLFFF) to utilize Rivian equipment for deliveries and its partnership with Amazon (NASDAQ: AMZN), providing the same continues to flourish. The company has observed considerable consumer enthusiasm, demonstrated by more than 36,000 demo drives conducted in the first quarter of 2025. Is Rivian's Profitability on the Horizon? In Q1 2025, Rivian reported a net loss of $541 million and an Adjusted EBITDA loss of $329 million, which is typical for a rapidly growing manufacturing company focused on scaling operations. The company's financial strategy centers on achieving positive gross profit as a key step towards overall profitability. As of March 31, 2025, Rivian had a strong liquidity position with $7.178 billion in cash, cash equivalents, and short-term investments, supporting its operations and capital expenditures. This is further strengthened by a $6.6 billion loan from the U.S. Department of Energy for its planned Georgia manufacturing facility, providing substantial funding for expansion. Rivian has also demonstrated progress in cost management by reducing the cost of goods sold per vehicle by $31,000 in Q4 2024 compared to the previous year. Rivian has updated its 2025 delivery outlook to between 40,000 and 46,000 vehicles and increased its capital expenditure guidance to $1.8 billion to $1.9 billion, reflecting the current global trade and economic conditions, including potential tariff impacts on consumer demand. However, the company's U.S.-based manufacturing and primarily domestic or USMCA-qualified sourcing of materials (excluding cells) helps to reduce some global uncertainties. Despite these external factors, management remains confident in achieving a "modest positive gross profit for the full year 2025," indicating ongoing improvements in operations and cost efficiency. [content-module:TradingView|NASDAQ:RIVN] Rivian's Moat: The Ecosystem Advantage Rivian's strategic moat is its commitment to vertical integration, including the design and manufacturing of its own battery packs, drive units, and vehicle software, which reinforces its control over critical components and innovation. The company's dedicated charging infrastructure, the Rivian Adventure Network and Waypoints, provides a comprehensive ecosystem for its owners, enhancing the overall product value proposition. The continued expansion of its commercial vehicle offerings and the development of the more accessible R2 and R3 platforms are poised to broaden its market appeal significantly. This multi-pronged strategy, combined with a disciplined focus on cost efficiency and manufacturing scalability, positions Rivian for sustained growth. Rivian Is Driving Towards Sustainable Returns Rivian Automotive is charting a clear course toward becoming a significant force in the electric vehicle industry. The company's recent achievement of positive gross profit marks a pivotal moment, signaling increasing operational maturity and the effective implementation of cost reduction strategies. The strategic alliance with Volkswagen Group not only provides crucial capital but also validates Rivian's technological prowess and future direction. While scaling an automotive manufacturer is capital-intensive, Rivian's cash position, coupled with strategic financing, provides a solid foundation. Consistent progress in production efficiency, the development of cost-optimized future platforms like the R2, and the expansion into commercial vehicle segments underscore a well-defined growth strategy. For investors with a long-term vision, Rivian Automotive, Inc. appears poised to continue its growth trajectory, moving beyond early-stage challenges to solidify its position as a compelling "charging station for growth" in the rapidly expanding market for electric vehicles. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
