Einride, Argo AI, and Tesla: Autonomous Vehicle News

The Station: A Weekly Transportation Newsletter

Welcome to The Station, a newsletter focused on the evolving landscape of transportation. It delivers insights into how people and goods are moved, both presently and in the years to come. Sign up here to have it delivered directly to your inbox each weekend.

This Week in Transportation

The past week has been exceptionally busy in the transportation sector. A comprehensive overview is impossible within this format, so we’ll focus on key developments. While Elon Musk’s recent Saturday Night Live appearance generated significant discussion, commentary on that event is being omitted here.

Tesla Autopilot and Autonomous Driving Claims

It’s important to recognize a discrepancy between public statements made by Elon Musk regarding Tesla Autopilot and the actual state of the technology. This contrasts with information provided by Tesla employees to regulatory bodies.

A recently released memo details a meeting between California regulators and Tesla personnel. The document reveals that Musk’s assertions about the capabilities of the Autopilot system, as well as the timeline for achieving full autonomy, are not aligned with reality.

The memo, obtained through a Freedom of Information Act request and published by Plainsite, highlights an overstatement of the advanced driver assistance system’s functionality. Furthermore, it suggests the company’s projected delivery of fully autonomous features by year-end is unrealistic. Read the full report here.

Stay Connected

Your feedback is valued. Feel free to reach out with your thoughts, critiques, or any relevant information. You can email me directly at [email protected].

Alternatively, connect with me on Twitter – @kirstenkorosec – to share your perspectives.

Micromobility Updates

Recent news and announcements highlight the ongoing evolution and convergence of micromobility with broader transportation solutions.

Revel exemplifies this trend, having transitioned from a shared electric moped provider to encompass e-bike subscriptions, EV charging facilities, and a ride-hailing service utilizing a fully-electric, employee-driven fleet.

The strategic direction of the company prompted inquiry, and an interview with founder and CEO Frank Reig was conducted to provide insights into Revel’s progression and future objectives, which has been published for our readership.

The subscription-based model is also being actively pursued by Australian startup Zoomo. This company uniquely integrates the gig economy, subscription services, electric mobility, and enterprise solutions. Zoomo provides monthly e-bike subscriptions to delivery workers in the gig economy and businesses operating bike delivery fleets. Following an $11 million Series A funding round, the startup secured an additional $12 million to facilitate expansion into further U.S. markets and continental Europe, alongside the development of enhanced consumer subscription options.

Investment in E-Mopeds

Swiftmile, a micromobility charging infrastructure provider, is collaborating with European e-moped manufacturer GOVECS Group to establish Mobility Hubs. These hubs will provide charging and organized parking for both shared and commercial e-moped fleets. This approach, mirroring developments with e-bikes and e-scooters, offers a potential alternative to battery-swapping vans. The initial hubs are anticipated to appear in Germany during the first quarter of 2022.

Positive Development for JOCO

Last week’s coverage detailed the NYC Department of Transportation’s cease-and-desist order issued to the new e-bike-sharing platform JOCO. Despite the order, JOCO continued operations, asserting that its use of private garages exempts it from city regulatory control. The city responded with legal action, seeking an operational halt and associated penalties.

On May 7th, the court rejected the city’s request for a temporary injunction against JOCO’s operations. While the case remains ongoing, this represents a favorable outcome for JOCO, allowing continued operation and expansion as planned. A hearing is scheduled for June 16th, where the city is expected to emphasize its exclusive partnership with Lyft-owned Citi Bike.

#BatteriesForBirds Initiative

Having recently moved to New Zealand, it’s clear this nation holds a deep appreciation for its native bird population (and a corresponding aversion to non-native cats). Due to the country’s geographical isolation, its ecosystem lacks a significant mammalian presence, resulting in a thriving birdlife, insects, reptiles, and amphibians, with limited natural predators.

This context underscores the importance of Lime’s initiative to repurpose used scooter and bike batteries to power tools dedicated to protecting these vulnerable birds. In partnership with The Cacophony Project and 2040 Limited, damaged Lime e-bike battery cells will power thermal cameras used to identify predators threatening native bird species.

New E-Bike Models

CERO, the Los Angeles-based e-bike company, has begun accepting preorders for its CERO One electric cargo bike. Featuring a smaller front tire and a larger rear tire, along with racks above both wheels, the bike is designed to transport loads up to 77 pounds. Customers can select from Platform, Small Basket, and Big Basket configurations. The base price, including a front platform, is $3,799, with initial deliveries expected around August or September.

Aventon has also unveiled the latest iteration of its Aventure e-bike, equipped with fat tires and a color display screen. This screen integrates with smartphones to manage functions such as bike activation, mileage tracking, lighting control, and trip planning.

— Rebecca Bellan

Featured Investment News

Beyond mergers and acquisitions, and the buzz surrounding special purpose acquisition companies (SPACs), significant venture capital investments continue to shape the autonomous vehicle landscape, even amidst ongoing industry consolidation.

Einride, a Swedish innovator recognized for its uniquely designed electric and autonomous freight pods, secured $110 million in funding to accelerate its expansion across Europe and into the United States. This Series B funding round substantially surpasses previous raises of $10 million in 2020 and $25 million in 2019, and welcomed new investors including Temasek, Soros Fund Management LLC, Northzone, and Maersk Growth. Existing investors such as EQT Ventures, Plum Alley, Norrsken VC, Ericsson, and NordicNinja VC also contributed to this round.

To date, Einride has amassed a total of $150 million in funding. The company has not disclosed its post-money valuation.

Einride presents a compelling case within the autonomous vehicle sector. Currently, the company operates a thriving business centered around human-driven electric trucks, providing freight services to prominent clients like Coca-Cola and Oatly. Simultaneously, it is actively developing, rigorously testing, and preparing for the deployment of its Pod vehicles, which are engineered without traditional driver cabs. These Pods are intended for autonomous operation, and are also equipped with remote teleoperation capabilities, allowing for human oversight and control when needed.

Initial plans for U.S. expansion were temporarily delayed due to the COVID-19 pandemic. However, with this new influx of capital, co-founder and CEO Robert Falck confirmed the company intends to establish operational presence in the U.S. before year-end. The strategy involves establishing a headquarters in Austin, Texas, alongside additional offices in New York and Silicon Valley. Existing agreements with brands like Oatly, including their U.S. operations, are in place, with further announcements anticipated.

Einride’s entry into the United States, particularly within Texas, adds another key player to the region’s growing autonomous freight sector. Increased attention, interest, and investment are being directed towards middle-mile delivery solutions as 2021 progresses. The arrival of another competitor is expected to intensify competition, especially in the recruitment of skilled personnel.

Additional Investment Highlights …

Firefly Aerospace successfully raised $175 million, comprising a $75 million Series A round that valued the company at over $1 billion, and a $100 million secondary transaction involving the sale of holdings previously owned by Noosphere Ventures, a primary Firefly investor. The launch provider also announced its intention to secure an additional $300 million in funding later in 2021, following the anticipated inaugural launch of its Alpha rocket, currently scheduled for June.

Kneron, a company specializing in the development of semiconductors that enable artificial intelligence capabilities through edge computing, received a $7 million investment from Delta Electronics, a Taiwanese supplier of power components for major companies like Apple and Tesla. This $7 million investment brings Kneron’s total funding to over $100 million. Concurrently, Kneron agreed to acquire Vatics, a subsidiary of Delta Electronics’ Vivotek, for $10 million in cash, as reported by TechCrunch’s Rita Liao.

Reinvent Technology Partners X, a newly formed special purpose acquisition company spearheaded by Reid Hoffman and Mark Pincus, filed for an initial public offering (IPO). The filing indicates that the SPAC is targeting a merger with a late-stage company operating within the technology sector, potentially including consumer internet, online marketplaces, ecommerce, payments, gaming, artificial intelligence, SaaS, digital healthcare, autonomous vehicles, transportation, and related fields. This follows the duo’s previous SPAC announcement earlier this year, which involved an agreement to merge with Joby Aviation.

Solid Power, a Louisville, Colorado-based developer of solid-state batteries, secured $130 million in a Series B funding round, led by Ford and BMW, further demonstrating the two automotive manufacturers’ belief in solid-state batteries as the future of transportation. As part of the investment, Ford and BMW will hold equal equity stakes, and representatives from both companies will join Solid Power’s board. Volta Energy Technologies, a venture capital firm originating from the U.S. Department of Energy’s Argonne National Laboratory, also contributed to the round.

Youibot, a four-year-old startup focused on autonomous mobile robots for diverse applications, raised 100 million yuan ($15.47 million) in its latest funding round, led by SoftBank Ventures Asia, the Seoul-based early-stage investment arm of the global investment firm. Previous investors BlueRun Ventures and SIG also participated in the round. Notably, Softbank Ventures Asia also led a financing round in December for KeenOn, another Chinese robotics startup specializing in delivery and service robots.

Focus on Transportation Policy

The push for electrified transportation isn't limited to President Joe Biden; multiple legislative efforts are underway in Congress to accelerate the adoption of zero-emission vehicles nationwide.

Senator Charles Schumer (D-NY) and Senator Sherrod Brown (D-OH) proposed a $73 billion initiative on May 4th, titled “Clean Transit for America.” This plan aims to replace over 150,000 publicly owned diesel vehicles – including buses, vans, and ambulances – with zero-emission alternatives. Supporting infrastructure for charging these vehicles is also a key component.

The day following this announcement, Representatives Andy Levin (D-MI) and Alexandria Ocasio-Cortez (D-NY) reintroduced a revised “Electric Vehicles Freedom Act.” The goal is to establish a comprehensive network of EV charging stations throughout the country. A previous iteration of this bill received Democratic support last year.

Simultaneously, a House subcommittee on Commerce and Energy convened a hearing regarding the CLEAN Futures Act, initially introduced in March. This legislation represents the Democrats’ broad climate strategy, targeting a 50% reduction in national greenhouse gas emissions by 2030. Billions would be allocated to EV infrastructure and the bolstering of domestic EV component manufacturing, such as batteries.

However, the CLEAN Futures Act faced resistance during the hearing, particularly from Republican lawmakers. Representative Fred Upton (R-MI) voiced concerns that the bill might force EVs upon consumers prematurely.

He stated his worries centered on the bill’s potential disregard for American workers and car buyers, the increasing dependence on China for essential battery materials, and the potential strain on the existing power grid. These factors were cited as reasons for his opposition.

Representative Greg Pence (R-IN) argued against a standardized, federally mandated approach to transportation. He advocated for considering alternatives like hydrogen and renewable diesel alongside battery-electric technology.

The House subcommittee meeting also touched upon several other proposed bills, including the “NO EXHAUST Act,” the “Electric Vehicles for Underserved Communities Act of 2021,” and the “Advanced Technology Vehicles Manufacturing Future Act of 2021,” also known as the “ATVM Future Act.”

Representative Bobby Rush (D-IL), the sponsor of the NO EXHAUST Act, explained that it seeks to promote the electrification of the transportation sector to enhance air quality and expand access to EV infrastructure, with a particular focus on rural, urban, low-income, and minority communities.

— Aria Alamalhodaei

Industry Insights

Information reaches us constantly, and we aim to share relevant updates with you.

Recall from April a report originating from The Information, detailing that Bryan Salesky, CEO and co-founder of Argo AI, communicated to employees during a company-wide meeting the potential for a public offering later this year. As previously covered in The Station, this information required further clarification. While Salesky did indeed mention the possibility of an IPO during a routine weekly all-hands meeting, the complete picture was more nuanced.

These statements were made within the context of discussing key milestones anticipated in 2021, which would pave the way for either an IPO or a substantial funding round. Essentially, all avenues for securing capital were being considered, including a merger with a special purpose acquisition company, commonly known as a SPAC. (Argo AI has already secured $2 billion in funding.)

Currently, Argo AI appears to be prioritizing a conventional investment strategy – at least initially. In a recent interview with Ed Ludlow of Bloomberg, Salesky indicated the company intends to raise capital during the coming summer months. This public statement corroborates information received from trusted sources.

“We are truly enthusiastic about this endeavor,” Salesky stated during the interview. “We will be seeking funds from the financial markets and will also evaluate a future IPO. It’s a matter of assessing the optimal funding source for our next phase. We are exploring various options, but we are very optimistic about how this will enable us to expand the deployment of autonomous vehicles.”

Turning to further developments at Argo AI, the company has unveiled new specifications regarding a long-range lidar sensor. This sensor is claimed to possess the capability of detecting objects up to 400 meters away, delivering high-resolution, photorealistic imagery and effectively identifying dark or distant objects with minimal reflectivity. This technology stems from Argo AI’s acquisition of Princeton Lightwave and is expected to facilitate the deployment of commercially viable autonomous vehicles on highways and within urban environments starting next year.

The initial production run of these lidar sensors is already integrated into a portion of Argo AI’s test vehicle fleet, currently consisting of Ford Fusion Hybrid sedans and Ford Escape Hybrid SUVs. By year-end, the test fleet will be fully transitioned to approximately 150 Ford Escape Hybrid vehicles, each equipped with this internally developed lidar sensor. Ford, a key investor and customer of Argo AI, anticipates launching autonomous vehicle services for ride-hailing and delivery in 2022. Volkswagen, another investor and customer, projects the commencement of commercial operations in 2025.

TC Sessions: Mobility 2021

TC Sessions: Mobility 2021 is fast approaching, with the event slated for June 9th. A near-complete agenda was recently made available to the public.

Two additional announcements have been made regarding the speaker lineup. Pam Fletcher, currently spearheading innovative initiatives at General Motors, will participate in an interview during the event.

Furthermore, enthusiasts of autonomous vehicle technology will be pleased to learn that Karl Iagnemma, a co-founder and the current head of Motional, will be featured.

Joining him will be Chris Urmson, co-founder and CEO of Aurora. Both will appear on our virtual stage.

Do you have a question for either of these industry leaders? Please submit your inquiries via email.

The roster of speakers for TC Sessions: Mobility 2021 also includes JoeBen Bevirt, founder and CEO of Joby Aviation.

Reid Hoffman, a prominent investor and the founder of LinkedIn – whose SPAC successfully merged with Joby – will also be present.

Investor Insights

A panel of investors will contribute to the discussions. This includes Clara Brenner from Urban Innovation Fund, Quin Garcia of Autotech Ventures, and Rachel Holt of Construct Capital.

Ahti Heinla, co-founder, CEO, and CTO of Starship Technologies, is also scheduled to speak.

Focus on Equity and Accessibility

We are also assembling a discussion featuring Tamika L. Butler, a community organizer, transportation consultant, and lawyer.

Tiffany Chu, co-founder and CEO of Remix, and Frank Reig, co-founder and CEO of Revel, will join her.

This panel will address critical issues surrounding equity, accessibility, and shared mobility solutions within urban environments.

We look forward to connecting with you next week.