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Climate

AM Briefing: BYD vs. Tesla

On quarterly EV sales, 2024 weather, and a darker shade of red

AM Briefing: BYD vs. Tesla
Heatmap Illustration/Getty Images

Current conditions: States in the Northeast are bracing for a major winter storm • Two months’ worth of rain fell in just three days in eastern Australia • Major floods brought parts of Saudi Arabia to a standstill.

THE TOP FIVE

1. Fewer cars eligible for 2024 EV tax credit

The number of electric vehicle models that are eligible for the government’s $7,500 tax credit has been more or less cut in half after new battery sourcing rules came into effect on January 1. Thirteen models now qualify, including the Tesla Model Y, the Chevy Bolt EV, and the Ford F-150 Lightning. Under the new rules, cars that use battery components made by Chinese manufacturers are disqualified, a move meant to wean the U.S. market off the Chinese supply chain. And the restrictions will become even tighter in 2025, targeting raw materials like lithium. U.S. automakers are working to expand their domestic manufacturing capabilities but this won’t happen overnight. In the meantime, propsective EV owners could consider leasing rather than buying, which will let you “skirt much of the red tape,” notesHeatmap’s Andrew Moseman.

2. BYD closes in on Tesla’s global EV lead

Tesla is expected to release its fourth quarter sales figures today and the big question is whether it will hold onto its position as the world’s top-selling EV maker. Yesterday Chinese automaker BYD announced it had sold 526,409 fully electric vehicles in the final three months of the year; analysts forecast Tesla’s sales to come in at around 483,200. BYD has been closing in on Tesla for a while, and if it takes the top spot, “it will be both a symbolic turning point for the EV market and further confirmation of China’s growing clout in the global automotive industry,” explainsBloomberg Green. Both BYD and Tesla are facing increasing competition from legacy automakers racing to catch up to their leads.

3. 2024 expected to bring more record-breaking weather

While 2023 was the hottest year ever recorded, experts predict 2024 will bring more extreme weather driven by a combination of man-made global warming and the El Niño weather pattern. The United Kingdom’s Met Office says the average global temperature for 2024 is forecast to be between 1.34 degrees and 1.58 degrees Celsius above the pre-industrial average. “We expect two new global temperature record-breaking years in succession, and, for the first time, we are forecasting a reasonable chance of a year temporarily exceeding 1.5 °C,” says the Met Office’s Dr. Nick Dunstone.

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  • 4. ‘Warming stripes’ updated for 2023

    One of the researchers behind the iconic “warming stripes” – a visual representation of annual global temperatures over time – has updated the graphics to include 2023. Climate scientist Ed Hawkins says last year was so warm, he may need to update his color palette:

    X/ed_hawkins

    5. U.S. property catastrophe reinsurance rates jump 50%

    A rise in extreme weather and natural disasters in the U.S. is prompting a big hike in so-called reinsurance rates, which is likely to trickle down to propery insurance costs. As Reutersexplains, “reinsurers provide insurance for insurers and the prices they agree at the beginning of each year set the trend for the cost of insurance for the next 12 months.” On January 1, U.S. property catastrophe reinsurance rates jumped by as much as 50% for policies that previously experienced natural disasters, according to broker Gallagher Re. The U.S. experienced at least 25 climate-related weather disasters with losses exceeding $1 billion last year, according to the National Oceanic and Atmospheric Administration. The annual average between 1980 and 2022 is about 8 events.

    THE KICKER

    “Solar is quietly eating the world. This is what an energy transition looks like.” –Eric Wesoff at Canary, on reasons to be optimistic about the energy transition


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    Elon Musk.
    Heatmap Illustration/Getty Images, Tesla

    Tesla already looked beleaguered last week as a tumbling stock price tied to public anger at CEO Elon Musk wiped out more than a half-billion dollars in value. The slide erased all the gains the company had garnered since new Musk ally Donald Trump was reelected as president. On Monday the stock went into full freefall, losing 15% of its value in one day. By Tuesday, Trump had to pose with Tesla vehicles outside the White House to try to defend them.

    With a crashing market valuation and rising rage against its figurehead, Tesla’s business is in real jeopardy, something that’s true regardless of Musk’s power in the federal government. If he can’t magically right the ship this time, this self-sabotaging MAGA turn will go down as one of the great self-owns.

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    Politics

    AM Briefing: Climate Grants Terminated

    On Lee Zeldin’s announcement, coal’s decline, and Trump’s Tesla promo

    The EPA’s $20 Billion Climate Grants Have Been Terminated
    Heatmap Illustration/Getty Images

    Current conditions: Alaska just had its third-warmest winter on record • Spain’s four-year drought is nearing an end • Another atmospheric river is bearing down on the West Coast, triggering evacuation warnings around Los Angeles’ burn scars.

    THE TOP FIVE

    1. Zeldin terminates $20 billion in climate grants

    EPA Administrator Lee Zeldin said yesterday he had terminated $20 billion in congressionally-approved climate change and clean energy grants “following a comprehensive review and consistent with multiple ongoing independent federal investigations into programmatic fraud, waste, abuse and conflicts of interest.”

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    Climate

    What the NOAA Layoffs Are Doing to Climate Science

    And how ordinary Americans will pay the price.

    A hand in the NOAA logo.
    Heatmap Illustration/Getty Images

    No one seems to know exactly how many employees have been laid off from the National Oceanic and Atmospheric Administration — or, for that matter, what offices those employees worked at, what jobs they held, or what regions of the country will be impacted by their absence. We do know that it was a lot of people; about 10% of the roughly 13,000 people who worked at the agency have left since Donald Trump took office, either because they were among the 800 or so probationary employees to be fired late last month or because they resigned.

    “I don’t have the specifics as to which offices, or how many people from specific geographic areas, but I will reiterate that every one of the six [NOAA] line offices and 11 of the staff offices — think of the General Counsel’s Office or the Legislative Affairs Office — all 11 of those staff offices have suffered terminations,” Rick Spinrad, who served as the NOAA administrator under President Joe Biden, told reporters in a late February press call. (At least a few of the NOAA employees who were laid off have since been brought back.)

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