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Canoo to deliver its first Oklahoma-built vehicles to the state

Credit: Canoo

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Electric vehicle (EV) startup Canoo is preparing to begin delivery of its first Oklahoma-built units, with the initial batch going to the state.

Canoo is set to begin delivering its first units of the Lifestyle Delivery Vehicle (LDV), produced at its Oklahoma City plant, to the state’s Office of Management and Enterprise Services (OMES), according to a press release shared on Monday. OMES plans to purchase its first three LDV units by the end of this year, and the parties have an agreement with Oklahoma for as many as 1,000 of the LDVs while Canoo continues ramping manufacturing.

“We are proud to be part of this historic moment as Canoo builds momentum on its road to full-scale production,” Oklahoma Governor Kevin Stitt said in the release. “This marks Oklahoma’s return to vehicle manufacturing and proves ‘The Sooner State’ is the right place to grow cutting-edge businesses and create new jobs.”

The milestone marks the beginning of Canoo’s plans for phased-ramp manufacturing in Oklahoma, with the company planning to continue ramping production in the coming years. The release also says that unit deliveries will be made to Canoo’s key customers and partners in the remainder of this year, and the company plans to increase delivered units in 2024.

Additionally, the electric vehicle (EV) maker is hiring at both its Oklahoma City and Pryor facilities, expected to create as many as 1,300 jobs. The automaker also announced its American Bulldog pickup just last week, entering the increasingly-competitive electric truck sector.

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“It’s an honor to partner with the state of Oklahoma and its workforce to create a legacy for electric vehicles in America’s Heartland,” Canoo Chairman and CEO Tony Aquila said.

“What is inspiring to me is that it takes just a small group of innovators and hardworking believers who find a way to win. I want to thank Governor Stitt and his team for believing in us. We want our vehicles to provide service to Oklahomans who have been our partners through this journey.”

The LDVs are built on Canoo’s configurable, multi-purpose platform and are intended for commercial and government fleet customers. Last December, Canoo delivered its very first units, Light Tactical Vehicles (LTVs), to the U.S. Army. In July, the startup also delivered three Crew Transportation Vehicles (CTVs) to NASA.

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Canoo says the vehicles are also made to help fleet operators cut operating costs, a point that was reiterated in the announcement by OMES Executive Director John Suter.

“We are excited to add Canoo vehicles to the state’s pooled fleet as part of a broader initiative to improve efficiency, cut waste and improve stewardship of taxpayer dollars,” Suter said. “We look forward to evaluating these new assets and the role they can play in modernizing Oklahoma’s vehicle use.”

The startup has also elicited large fleet orders from commercial customers, including Walmart, Zeeba and Kingbee.

Updated 11/15/23: Corrected the second paragraph to note that OMES is purchasing the initial units by the end of this year, after originally reporting that the first few units had already begun delivery.

Canoo continues rapid production expansion with yet another new facility

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla rolls out most aggressive Model Y lease deal in the US yet

With the promotion in place, customers would be able to take home a Model Y at a very low cost.

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(Credit: Tesla)

Tesla has rolled out what could very well be its most aggressive promotion for Model Y leases in the United States yet. With the promotion in place, customers would be able to take home a Model Y at a very low cost.

Zero downpayment leases

The new Model Y lease promotion was initially reported on X, with industry watcher Sawyer Merritt stating that while the vehicles’ monthly payments are still similar to before, the cars can now be ordered with a $0 downpayment. 

Tesla community members noted that this promotion would cut the full payment cost of Model Y leases by several thousand dollars, though prices were still a bit better when the $7,500 federal tax credit was still in effect. Despite this, a $0 downpayment would likely be appreciated by customers, as it lowers the entry point to the Tesla ecosystem by a notable margin.

Premium freebies included

Apart from a $0 downpayment, customers of Model Y leases are also provided one free upgrade for their vehicles. These upgrades could be premium paint, such as Pearl White Multi-Coat, Deep Blue Metallic, Diamond Black, Quicksilver or Ultra Red, or 20″ Helix 2.0 Wheels. Customers could also opt for a White Interior or a Tow Hitch free of charge.

A look at Tesla’s Model Y order page shows that the promotion is available for all the Model Y Premium Rear-Wheel Drive and the Model Y Premium All-Wheel Drive. The Model Y Standard and the Model Y Performance are not eligible for the $0 downpayment or free premium upgrade promotion as of writing. 

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Tesla is looking to phase out China-made parts at US factories: report

Tesla has reportedly swapped out several China-made components already, aiming to complete the transition within the next two years.

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(Source: Tesla)

Tesla has reportedly started directing its suppliers to eliminate China-made components from vehicles built in the United States. This would make Tesla’s US-produced vehicles even more American-made.

The update was initially reported by The Wall Street Journal.

Accelerating North American sourcing

As per the WSJ report, the shift reportedly came amidst escalating tariff uncertainties between Washington and Beijing. Citing people reportedly familiar with the matter, the publication claimed that Tesla has already swapped out several China-made components, aiming to complete the transition within the next two years. The publication also claimed that Tesla has been reducing its reliance on China-based suppliers since the pandemic disrupted supply chains.

The company has quietly increased North American sourcing over the past two years as tariff concerns have intensified. If accurate, Tesla would likely end up with vehicles that are even more locally sourced than they are today. It would remain to be seen, however, if a change in suppliers for its US-made vehicles would result in price adjustments for cars like the Model 3 and Model Y.

Industry-wide reassessments

Tesla is not alone in reevaluating its dependence on China. Auto executives across the automotive industry have been in rapid-response mode amid shifting trade policies, chip supply anxiety, and concerns over rare-earth materials. Fluctuating tariffs between the United States and China during President Donald Trump’s current term have made pricing strategies quite unpredictable as well, as noted in a Reuters report. 

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General Motors this week issued a similar directive to thousands of suppliers, instructing them to remove China-origin components from their supply chains. The same is true for Stellantis, which also announced earlier this year that it was implementing several strategies to avoid tariffs that were placed by the Trump administration. 

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Tesla owners propose interesting theory about Apple CarPlay and EV tax credit

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

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Credit: Tesla Raj/YouTube

Tesla is reportedly bracing for the integration of Apple’s well-known iOS automotive platform, CarPlay, into its vehicles after the company had avoided it for years.

However, now that it’s here, owners are more than clear that they do not want it, and they have their theories about why it’s on its way. Some believe it might have to do with the EV tax credit, or rather, the loss of it.

Owners are more interested in why Tesla is doing this now, especially considering that so many have been outspoken about the fact that they would not use it in favor of the company’s user interface (UI), which is extremely well done.

After Bloomberg reported that Tesla was working on Apple CarPlay integration, the reactions immediately started pouring in. From my perspective, having used both Apple CarPlay in two previous vehicles and going to Tesla’s in-house UI in my Model Y, both platforms definitely have their advantages.

However, Tesla’s UI just works with its vehicles, as it is intuitive and well-engineered for its cars specifically. Apple CarPlay was always good, but it was buggy at times, which could be attributed to the vehicle and not the software, and not as user-friendly, but that is subjective.

Nevertheless, upon the release of Bloomberg’s report, people immediately challenged the need for it:

Some fans proposed an interesting point: What if Tesla is using CarPlay as a counter to losing the $7,500 EV tax credit? Perhaps it is an interesting way to attract customers who have not owned a Tesla before but are more interested in having a vehicle equipped with CarPlay?

“100%. It’s needed for sales because for many prospective buyers, CarPlay is a nonnegotiable must-have. If they knew how good the Tesla UI is, they wouldn’t think they need CarPlay,” one owner said.

Tesla has made a handful of moves to attract people to its cars after losing the tax credit. This could be a small but potentially mighty strategy that will pull some carbuyers to Tesla, especially now that the Apple CarPlay box is checked.

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