Welcome to the Daily 5 report for Wednesday, June 25.
With U.S. electric vehicle tax credits on the road to extinction, the interim CEO of EV startup Lucid Motors Inc. is making a plea for a little more time for companies like his.
Extending the $7,500 incentive through 2026 for EV newcomers such as Lucid would only be fair given that established brands have benefited from the credit for many years, Marc Winterhoff told Automotive News.
Republicans in Congress are debating two versions of a budget bill, our story by Laurence Iliff explains. The Senate proposal ends EV incentives for all automakers within 180 days of passage. The House version extends credits through 2026 for those that have yet to sell 200,000 EVs.
"It's widely known we haven't yet sold 200,000 EVs," Winterhoff said. "But many others in the past have, and they all had that credit."
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His argument could gain traction, but critics also might point out that while Lucid is a U.S.-based company, its largest investor is Saudi Arabia's Public Investment Fund. The Saudis have poured additional money into Lucid while it hemorrhages cash. Its first-quarter loss this year widened to $731 million from $685 million during the same quarter last year.
It's hard to tell whether lost EV credits would create an existential threat to Lucid because its vehicles cost above the eligible price cap, so only leased vehicles would qualify. But with 6,800 employees, a headquarters in Newark, Calif., and a plant in Casa Grande, Ariz., the company's case should carry weight with lawmakers who value U.S. manufacturing.
Meanwhile, a government-supported Waymo autonomous vehicle plant in Detroit, announced in 2019, has closed. It marks a quiet ending to the much ballyhooed project called the "world's first 100 percent dedicated Level 4 autonomous vehicle factory."
The 200,000-square-foot plant, which was expected to create as many as 400 engineering jobs, was seen as a major victory in Michigan's quest to become a next-generation mobility hub. That didn't happen. Kurt Nagl of Automotive News affiliate Crain's Detroit Business explains in this story.
Finally, if you haven't seen this year's Automotive News list of the top 100 global auto suppliers, click here. It's one of our finest annual lists.
That's it for now. Have a great rest of your day. If you want to view this story in your browser, click here.
— Philip Nussel, online editor
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