Hyundai’s $1B Investment in Start-Up Motional
In a major move within the autonomous vehicle sector, Hyundai has committed a whopping $1 billion to the AV start-up, Motional. This investment comes as part of a larger deal that includes buying out joint venture partner Aptiv. The investment is split into $475 million directly into Motional, and an additional $448 million to acquire 11% of Aptiv’s common equity interest in Motional.
Initially formed in 2019 as a joint venture between Hyundai and Aptiv, Motional has since been focusing on its autonomous vehicle technology, with plans to launch a robotaxi service using driverless Hyundai Ioniq 5 vehicles in 2024. With Aptiv acknowledging its financial limitations, Hyundai has stepped in to keep the venture afloat. The future will reveal whether Motional will seek other investors to meet its capital needs and continue pursuing its robotaxi goals.
Tesla’s Supercharger Network Team Dismissed
In a surprising move, Tesla CEO Elon Musk has dismantled the automaker’s global Supercharger network team. This decision has raised eyebrows within the industry, especially as non-Tesla EV drivers have just gained access to the network. Following the mass layoffs, communication from human resources has reportedly been lacking, leaving former employees in the dark about severance packages. The reasoning behind the decision remains unclear, with only Musk and perhaps the former head of the Supercharger team, Rebecca Tinucci, privy to the full details.
Other Industry News and Deals
In other mobility sector developments, EV start-up Fisker has laid off more employees in an effort to “preserve cash” as bankruptcy looms closer. Similarly, ride-hailing company Ola has cut about 180 jobs and ousted its chief executive, Hemant Bakshi, merely four months after appointing him to the post. Lidar company Luminar has also downsized its 700-person workforce by 20% as part of a restructuring to adopt an “asset light” business model.
Despite these economic challenges, there have been some bright spots in the sector. For instance, LiNova Energy, a start-up developing polymer cathode batteries, raised $15.8 million in a Series A funding round. Rivian received an $827 million incentives package from the state of Illinois, which will be used to build out production lines for its next-generation EV, the R2. Furthermore, Viking Holdings, a luxury cruise operator backed by private equity firm TPG and the Canada Pension Plan Investment Board, raised $1.54 billion in its IPO.
Looking Ahead
As the technology and mobility sectors continue to evolve and intersect, we can expect more surprising developments and strategic investments. Undoubtedly, the future of transportation is being shaped by these shifts, with autonomous vehicles and electric technologies playing an increasingly important role. As companies continue to adapt and innovate, the landscape of the industry will continue to transform in fascinating ways. Keep an eye out for more news and insights on the future of transportation – it’s sure to be an exciting ride.
