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Electric Vehicles

Biden’s Plan to Jumpstart Offshore Wind

On the new auction schedule, Tesla earnings, and the Mercedes G-Class EV

Biden’s Plan to Jumpstart Offshore Wind
Heatmap Illustration/Getty Images

Current conditions: A Saharan dust storm turned skies red in Greece • More heavy rain is expected in China’s flooded Guangdong province • Red Flag fire weather warnings are in place across much of New Mexico.

THE TOP FIVE

1. Key takeaways from Tesla’s quarterly earnings report

Tesla reported first quarter earnings yesterday. The electric car company’s profits fell 55%, and revenue fell 9%. But shares rose more than 10% in after-hours trading following the shareholder update and earnings call. Here are a few things we learned from the report:

  • CEO Elon Musk said Tesla “should be thought of as an AI/robotics company,” and that “if you value Tesla as an auto company, that’s the wrong framework.”
  • Plans for a sub-$30,000 EV haven’t been entirely scrapped, as previously reported. The company said it will “accelerate” the launch of new and more affordable models, but indicated “that any new, cheaper vehicle would not necessarily be entirely new nor unlock massive new savings through an all-new production process,” wrote Heatmap’s Matthew Zeitlin. The robotaxi, however, will rely on a new platform.
  • Tesla’s energy business is growing faster than its car business. The company deployed just over 4 gigawatts of energy storage in the first quarter of the year, and its energy revenue was up 7% from a year ago. Profits from the business more than doubled.
  • Musk still wants to sell a “general purpose, bi-pedal, humanoid robot,” and said the Optimus robot would be in “limited production” in a factory doing “useful tasks” by the end of this year.

2. Biden administration plans to hold up to a dozen offshore wind auctions by 2028

The Interior Department today announced that it will hold up to 12 offshore wind auctions through 2028, with four of those auctions happening by the end of 2024. President Biden has a goal of 30 gigawatts of offshore wind capacity by 2030, but the industry has been blown off course thanks to inflation and disrupted supply chains. The Interior Department has held four offshore wind auctions so far during Biden’s presidency. The new schedule is an attempt to “jump-start the fledgling offshore wind sector” by expanding development potential, reported Bloomberg. “Our offshore wind leasing schedule will provide predictability to help developers and communities plan ahead and will provide the confidence needed to continue building on the tremendous offshore wind supply chain and manufacturing investments that we've already seen,” Interior Secretary Deb Haaland said in a statement.

3. Poll: Few climate-concerned voters know about Biden’s climate policies

In the last month alone, $37 billion from the Inflation Reduction Act has gone toward climate projects. That amount “exceeds what the recent foreign aid bill will give to Israel, Taiwan, and humanitarian aid in Gaza, combined,” reported Heatmap’s Robinson Meyer. As the election approaches, the Biden administration is spending funds from the IRA much faster than it was last year. But it seems President Biden’s climate investments and emission-slashing initiatives aren’t getting through to Americans. A CBS News/YouGov poll out this week found that even the Americans who are most concerned about climate change are unlikely to be aware of the administration’s efforts to combat it. About 45% of respondents said climate change is a very important issue, but just 10% of those said they had heard or read “a lot” about Biden’s climate policies. And 42% said the administration hadn’t done enough on the issue.

More than half of respondents said the outcome of the November election would have no effect on climate change. A recent analysis from Carbon Brief found that a second Trump presidency would likely cause the U.S. to miss its 2030 climate pledges, could lead to an additional 4 billion tonnes of greenhouse gas emissions, and result in more than $900 billion in damages. “A second Trump term that successfully dismantles Biden’s climate legacy would likely end any global hopes of keeping global warming below 1.5 [degrees Celsius],” the report said.

4. Global plastic treaty talks start in Canada

Negotiations on a global plastics treaty kicked off yesterday in Ottawa, Canada. The UN-led session is the second-to-last meeting before the treaty on reducing plastic pollution has to be finalized later this year, so the stakes are high, as are tensions between oil-producing nations and other countries that want to see plastic production dramatically reduced. The negotiations run through April 29.

5. Mercedes shows off new electric G-Class SUV

Mercedes unveiled the new all-electric version of its luxury G-Class offroader yesterday. The G-Class is “in many ways, Mercedes’ most prestigious car,” said Tim Evans at TechCrunch, so making an electric version is “the biggest test yet for the company’s recently scaled back electrification plans.”

Mercedes

The Mercedes-Benz G 580 with EQ technology (critics hate the name, by the way) can do a tank turn, and has one motor for each wheel, offering serious control for offroading. And it has a fake engine noise, the “G-Roar.” It’s also just a beautiful vehicle that seems to stay true to its design roots. The range, at about 293 miles, is relatively low but the sticker price, at about $150,000, is very high. It’ll be on sale in the U.S. in the second half of 2024. Here are some early reactions:

  • “The electric G-Class sounds like an impressive package, enough to woo any true fan of performance away from the models with internal combustion.” –Tim Stevens at TechCrunch.
  • “Is it a car the world needs? Probably not. But that’s never stopped the G – in any of its army or AMG forms – being one of the enduring off-road icons.” –Ollie Kew at Top Gear.
  • “This is a car that has been defined in many ways by excess, with the gas version getting just 14 miles per gallon. And yet here it is, in electric trim, with a huge battery (but not out of line with other huge EVs), beating the gas version’s performance both on- and off-road.” –Jameson Dow at Electrek.

THE KICKER

America’s first commercial big-rig hydrogen fuel station opened this week in Oakland, California.

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AM Briefing

Lala Lashes Hawaii

On the battery backlog, Canadian U, and Peter Thiel goes gas gaucho

Hurricane Lala.
Heatmap Illustration/Getty Images

Current conditions: Floodwaters swept through eastern Iowa, swelling the White River to its highest level in 113 years • A southwest monsoon, or hagabat, has capped off several weeks of storms in the Philippines that, combined, killed nearly two dozen people • Temperatures in Madrid are lingering near 100 degrees Fahrenheit until midweek, when the Spanish capital will cool off into the high 80s; the Greek capital of Athens, meanwhile, is bracing for the exact reverse.


THE TOP FIVE

1. Tropical Storm Lala leaves 200,000 without electricity in Hawaii

Tropical storms almost never hit the Hawaiian islands directly. The last time a tropical system struck the archipelago was in 2018, when Tropical Storm Olivia made landfall over Maui. It was, per CTV News, the first time a storm had come ashore like that since records began in the 1950s. The last full-blown hurricane to strike the state was in 1992, when Category 4 Iniki landed on Kauai, the chain’s northernmost island, as the strongest storm on record to hit the state. But the Big Island hadn’t seen a major storm make landfall since 1900. So Tropical Storm Lala, by some measures a Category 1 hurricane, left a mark. Nearly 200,000 homes and businesses — representing roughly 70% of the Big Island — remained without electricity on Sunday night as winds of up to 75 miles per hour and floodwaters hammered the state’s infrastructure. “Customers should prepare for extended outages lasting weeks or even months in the hardest hit rural areas of Hawaii island,” Hawaiian Electric, the utility that serves 95% of the state, told the Honolulu Star-Advertiser.

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Politics

How a Rhode Island Mayoral Race Became a Referendum on Climate Policy

In Providence, at least, climate change is still on the ballot.

Providence mayoral candidates.
Heatmap Illustration/Getty Images, Library of Congress

Here’s some trivia for you: What was the first state to see its average temperature break the 2-degree Celsius threshold for warming above pre-industrial levels? It wasn’t Alaska, the fastest-warming state, nor was it California or Florida, states with some of the most visible impacts of the extreme weather crisis. It was not Arizona or Texas, either, though “hot” and “warming” are often conflated.

The answer, in fact, is humble Rhode Island, which passed the international benchmark for accelerated climatic impacts back in 2019. It is perhaps less surprising, then, to learn that in the Ocean State’s largest city, Providence, climate change and how to adapt to it have become one of the central talking points in a heated mayoral race, which in the deep-blue city is likely to culminate in the September 9 primary.

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Q&A

How an ‘Abundance’ Policy Shop Is Approaching Data Centers

Chatting about win-win solutions with the Abundance Institute’s Ryan Norris.

Ryan Norris.
Heatmap Illustration

This week’s conversation is with Ryan Norris, senior fellow for energy policy at the Abundance Institute. The libertarian-leaning institute — whose name cleverly shortens to AI — is a new-ish entity with increasing relevance in energy and tech spaces. As Norris and I discussed, it’s starting to help shape policy on data center development and the generation that’ll power it all, especially in Republican circles. Norris himself previously worked with Americans for Prosperity, a right-wing political organization. I reached out to him and asked if we could chat because I wanted to know more about the institute’s work within the energy space. He wound up saying a lot more than I expected. So let’s dive into it.

The following conversation was lightly edited and abridged for clarity.

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