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Big Oil fights back against electric vehicle revolution, “EVs are not the silver bullet everyone is looking for”

Flickr: Paul Lowry

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The purveyors of old technologies have always done what they could to impede the adoption of new ones, not only by pointing out the drawbacks of the new products, but also by making their old products better. In the last days of the Age of Sail, shipbuilders crafted super-fast clipper ships, which shared the seas with steamships for many years. Typewriters steadily added high-tech features, evolving into stand-alone word processors before they were superseded by computers.

However, never in history has there been an industry as profitable, powerful and all-pervasive as the oil industry – an industry whose lifeblood is a soon-to-be-obsolete technology. Big Oil, supported by its allies in the auto industry and numerous national governments, is fighting the nascent electromobility revolution on several fronts. Its decades-long campaign to discredit the science of climate change, and its financial support of backwards-looking political figures, are well known. Now that EVs are emerging as an existential threat, industry players are also working to sow doubts about their viability in the public mind – the media churns out “EVs are a bust” articles on a daily basis, often employing quotes helpfully provided by auto industry trade groups and oil-friendly think tanks.

On a somewhat more constructive front, oil producers and automakers are working together to make legacy vehicles ever more fuel-efficient, hoping to delay demand for electric alternatives.

Oil giants including Exxon, BP and Shell are working with automakers such as Ford and Fiat Chrysler to create a new generation of super-slick engine lubricants in a quest to squeeze even more efficiency out of traditional engines. “It’s really important that we are able to squeeze the lemon,” Shell VP Andrew Hepher told the Wall Street Journal. “The combustion engine has still got a long way to run…Car makers are very, very heavily motivated to improve the economy of their fleet.” BP’s CEO Bob Dudley adds, “EVs are not the silver bullet everyone is looking for.”

Governments of petroleum-producing countries are also getting proactive about prolonging the reign of the ICE. The Persian Gulf state of Qatar, which has the world’s third-largest reserves of oil and natural gas, acquired 17 percent of Volkswagen’s voting rights in 2009, becoming the third-biggest investor in VW. “We are really committed to VW,” said VW supervisory board member Hessa Al Jaber. “They are taking steps to mitigate any future risks on emissions.”

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A recent article in the Detroit Free Press reports that the Saudi national oil company, Aramco, came to the Detroit auto show for the first time ever this year, to spread the word about its cutting-edge research to improve legacy gas engines.

https://youtu.be/lYaXMEQiuuI

Above: Aramco cranks up the PR machine with a booth at the Detroit Auto Show (Youtube: aramcoservices)

“In an era of climate change concerns, battery electric vehicles have become a symbol of innovation, promising to disrupt the automotive industry,” said Ahmad Al Khowaiter, Aramco’s Chief Technology Officer. “Yet hidden in plain sight are some of the most disruptive technologies the industry has ever seen; and they happen to be new and improved internal combustion engines.”

“Ironically, as countries announce plans to phase out gasoline- and diesel-powered vehicles in favor of battery electric vehicles, new fuels and engine designs are making internal combustion engines greener than ever, and far more efficient,” Al Khowaiter said.

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Aramco has invested hundreds of millions in global R&D – it is the third-largest holder of oil industry patents, behind Exxon and Chevron. It has research facilities all over the world, including in Detroit and Houston, and works with researchers at Stanford, MIT and the University of Michigan.

“Public policy should be technology-agnostic,” Al Khowaiter said. “Neither the battery electric vehicle nor the internal combustion engine is the perfect solution in all scenarios; both are needed for a sustainable and affordable mobility future.”

Donald Runkle, a mechanical engineer who ran product engineering at GM, told the Free Press that fuel economy is increasing every day. “The combustion engine is not going away in the foreseeable future, not for 15 or 20 or 30 years. It has proven, and continues to prove, to be the low-cost approach to moving things. Yes, there will be electrification, adding batteries and all that. It just improves the overall efficiency of the internal combustion engine.”

Obviously, the oil and electricity camps disagree about the timeline for electrification. However, all seem to agree that any technology that reduces emissions is a good thing. Don Anair, Research Director for the Union of Concerned Scientists’ Clean Vehicles Program, acknowledged the conflicting/complementary goals. “We need an 80% or more reduction in oil use,” he told the Free Press. “No matter how you look at it, to address climate change, we can’t continue to power our transportation system with oil. We need to continue to improve emissions from conventional vehicles while we accelerate the transition toward electric vehicles powered by clean energy.”

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Note: Article originally published on evannex.com by Charles Morris

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Investor's Corner

Tesla welcomes Chipotle President Jack Hartung to its Board of Directors

Tesla announced the addition of its new director in a post on social media platform X.

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Credit: @ArthurFromX/X

Tesla has welcomed Chipotle president Jack Hartung to its Board of Directors. Hartung will officially start his tenure at the electric vehicle maker on June 1, 2025.

Tesla announced the addition of its new director in a post on social media platform X.

Jack Hartung’s Role

With Hartung’s addition, the Tesla Board will now have nine members. It’s been a while since the company added a new director. Prior to Hartung, the last addition to the Tesla Board was Airbnb co-founder Joe Gebbia back in 2022. As noted in a Reuters report, Hartung will serve on the Tesla Board’s audit committee. He will also retire from his position as president and chief strategy officer at Chipotle, and transition into a senior advisor’s role at the restaurant chain, next month.

Hartung has had a long career in the Mexican grill, joining Chipotle in 2002. He held several positions in the company, most recently serving as Chipotle’s President and Chief Strategy Officer. Tesla highlighted Hartung’s accomplishments in a post on its official account on X.

“Over the past 20+ years under Jack’s financial leadership, Chipotle has seen significant growth with over 3,700 restaurants today across the United States, Canada, the United Kingdom, France, Germany, Kuwait and the United Arab Emirates. Jack was named ‘CFO of the Year’ by Orange County Business Journal and Best CFO in the restaurant category by Institutional Investor,” Tesla wrote in its post on X.

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Tesla Board and Musk

Tesla is a controversial company with a controversial CEO, so it is no surprise that the Board of Directors tend to get flak as well. Two weeks ago, for example, Tesla Board Chair Robyn Denholm slammed The Wall Street Journal for publishing an article alleging that company directors had considered a search for a potential successor to Elon Musk. Denholm herself has also been criticized for offloading her TSLA shares.

More recently, news emerged suggesting that the Tesla Board of Directors had formed a special committee aimed at exploring a new pay package for CEO Elon Musk. The committee is reportedly comprised of Tesla board Chair Robyn Denholm and independent director Kathleen Wilson-Thompson, and they would be exploring alternative compensation methods for Musk’s contributions to the company.

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Rivian stock rises as analysts boost price targets post Q1 earnings

Rivian impressed with smaller-than-expected losses & strong revenue, pushing analysts to raise price targets.

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(Credit: Rivian)

Rivian stock is gaining traction as Wall Street analysts raise price targets following the electric vehicle (EV) maker’s first-quarter earnings report. Despite a dip after the announcement, optimism surrounds Rivian’s cost control and upcoming lower-priced cars.

Last week, Rivian reported a better-than-expected Q1 gross profit, surpassing Wall Street’s forecasts with adjusted losses of $0.48 per share against expectations of $0.92 per share. The company also reported a revenue of $1.24 billion compared to the $1.01 billion anticipated.

However, the EV automaker cut its 2025 delivery forecast and capital spending due to President Donald Trump’s tariffs. It explained that it is “not immune to the impacts of the global trade and economic environment.” RIVN stock dropped nearly 6% post-earnings, closing at $12.72 per share.

Wall Street remains upbeat about Rivian, citing progress toward launching lower-priced vehicles in 2026 and effective cost management. On Monday, Stifel analyst Stephen Gengaro raised his RIVN price target to $18 from $16, maintaining a “Buy” rating. He highlighted Rivian’s “solid progress” toward key milestones.

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Conversely, Bernstein’s Daniel Roeska gave RIVN a “Sell” rating. However, Roeska also lifted his Rivian price target to $7.05 from $6.10, acknowledging “better” Q1 results. He warned that profitability remains distant and hinges on multiple product launches by the decade’s end.

Overall, Wall Street’s average price target for RIVN climbed from $14.18 to $14.31, a modest 13-cent increase reflecting positive sentiment. About one-third of analysts covering Rivian rate it a Buy, compared to the S&P 500’s average Buy-rating ratio of 55%.

On Monday, Rivian stock rose 2.7% to $14.64, slightly trailing the S&P 500 and Dow Jones Industrial Average, which gained 3.3% and 2.8%, respectively. The uptick may also stem from broader market gains tied to news of a temporary U.S.-China tariff suspension.

As Rivian navigates trade challenges and scales production at its Illinois factory, its Q1 performance and analyst support signal resilience. With lower-priced EVs on the horizon, Rivian’s strategic moves could bolster its position in the competitive EV market, offering investors cautious optimism for long-term growth.

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Tesla (TSLA) poised to hit $1 trillion valuation again amid reports of Trump China deal

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket.

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(Credit: Tesla)

Tesla shares (NASDAQ:TSLA) are on a tear on Monday’s premarket amidst reports that the United States and China have agreed to significantly roll back tariffs on each other’s goods for an initial 90-day period.

As of writing, the premarket price of TSLA shares suggests that the electric vehicle maker might end Monday with a $1 trillion valuation once more.

Tesla and China

TSLA stock was up about 8% at $322.56 per share on Monday’s premarket. As noted in a report from Barron’s, these prices suggest that the company could achieve a trillion-dollar valuation again, a level not seen since late February. Similar to Tesla, the S&P 500 and the Dow Jones Industrial Average were also up 2.8% and 2.1%, respectively, on Monday’s premarket.

The United States and China’s decision to roll back its tariffs would likely be appreciated by CEO Elon Musk. Despite working for the Trump administration’s Department of Government Efficiency (DOGE), and despite Tesla being least affected by the Trump administration’s tariffs due to its strong domestic supply chains in the United States, China, and Europe, Musk has noted that he is a supporter of non-predatory tariffs.

The United States and China’s Agreement

In a joint statement from the United States and China posted on the White House’s official website, the two countries agreed to lower reciprocal tariffs on each other by 115% for 90 days. This means that the United States will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, as noted in an ABC 12 report. China, on the other hand, will also lower its tariffs on American goods from 125% to 10%.

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The talks were led by Chinese Vice Premier He Lifeng and Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, as per the joint statement. Bessent shared his thoughts about the matter in a comment in Geneva. “The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs … was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade. And I think both sides are committed to achieving that,” he said. 

A spokesperson from China’s Commerce Ministry also shared a statement about the matter. As per the spokesperson, the deal was an “important step by both sides to resolve differences through equal-footing dialogue and consultation, laying the groundwork and creating conditions for further bridging gaps and deepening cooperation.”

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