TechCrunch Mobility: The triple punch headed for automakers

Welcome to the latest update from the world of transportation, where significant challenges are emerging for electric vehicle manufacturers and traditional automakers alike. Recent analyses of quarterly reports reveal that companies like Rivian and Lucid are grappling with the implications of tariffs and the cessation of federal tax credits. Both Rivian and Lucid explicitly mention the One Big Beautiful Bill Act (OBBBA) in their risk assessments, highlighting its potential to eliminate crucial tax incentives for electric vehicle buyers and undermine the zero-emissions credit market. These companies are clearly concerned about how these developments could affect their operations. Lucid is currently evaluating the OBBBA's ramifications, noting that any disruptions faced by their suppliers could hinder production and quality standards. On the other hand, Rivian maintains a cautiously optimistic outlook, emphasizing the ongoing availability of the 45X tax credit for domestic battery production. Legacy automakers Ford and GM are also addressing the potential fallout from the OBBBA, with GM admitting it cannot predict the financial consequences but acknowledging they could be significant, impacting electric vehicle profitability. Adding to the complexity is the looming threat of a 100% import tariff on semiconductor chips, a scenario that could exacerbate existing supply chain issues. The automotive industry is acutely aware of how chip shortages have previously disrupted production, with modern vehicles relying on thousands of chips for functionality. Amidst these uncertainties, there are hints of change as some Chinese companies in the autonomous vehicle sector are reportedly considering relocating to the U.S., potentially in response to a trade war and technology protection concerns. In other industry news, Joby Aviation has acquired Blade, the urban air mobility service, for up to $125 million, which includes access to Blade's operations in major markets like New York City. This acquisition positions Joby to enhance its commercial operations as it awaits FAA certification for its electric aircraft. Additionally, several notable investments have occurred: Drone startup Destinus is set to acquire Swiss autopilot developer Daedalean for $223 million, while Indian aerospace firm Jeh Aerospace has secured $11 million in funding. Meanwhile, Uzbek startup Uzum raised $65.5 million in a round led by Tencent and VR Capital. In a significant property deal, Foxconn sold a former GM factory and its EV-related machinery for a total of $375 million, with reports suggesting that the site may be transformed into an AI data center by the new owner, SoftBank. Lyft has partnered with Baidu to introduce autonomous vehicles in Europe by 2026, while Rivian is pursuing legal action in Ohio to enable direct consumer sales of its electric vehicles. As Tesla navigates its own challenges, including a jury ruling that holds it partly responsible for a fatal crash, the company has also approved a substantial compensation package for CEO Elon Musk, citing the competitive landscape in AI talent as a key factor. These developments highlight the intricate landscape of the automotive industry as it contends with economic pressures and evolving technologies, all while striving to adapt and innovate in a rapidly changing market.