the latest news on Rivian, EV tax credits, and autonomous aircraft:

1. Rivian is reportedly planning to produce electric bikes, assigning a small team of engineers to the project. The company previously filed patents for e-bike components and designs.  Q: Rivian recently delayed the production of a smaller R2 model to 2026 and announced a focus on the production of its current models and profitability. How do you think Rivian’s supposed side bet on micro-mobility will play out? Share your thoughts.

2. Sun Country Airlines reported $15.1M in operating income in Q4, increasing from $10.2M in Q4 2021. The regional airline increased its total operating revenue for 2022 by 44% YoY, $894.4M, driven by demand growth amid expansion.  Q: Do you think charter demand will remain high throughout the economic downturn? Share your thoughts.

3. Canoo revealed its plans to issue 50 million new discounted shares to institutional investors to raise $52.5M. In November, the EV maker announced it only had $6.8M in cash.  Q: In July, Walmart placed an order for 4,500 Canoo Lifestyle delivery vehicles, with an option for up to 10,000 vehicles. Do you think the cash influx from the new shares will enable the EV maker to meet the order? Let us know.

4. The U.S. Treasury revised the qualifications for EV tax credits under the Inflation Reduction Act, enabling crossovers, such as the Tesla Model Y and Cadillac Lyriq, to qualify as sedans. The Treasury Department is expected to give guidance on the materials qualification in March.

5. BMW plans to invest ~$866M to produce EV batteries and Neue Klasse models in San Luis Potosi, Mexico. The automaker expects EVs to exceed 50% of its sales by 2030.

6. Flytrex received Standard Part 135 Air Carrier Certification from the Federal Aviation Administration, which enables small drones to carry cargo for commercial purposes beyond the line of sight. The company has four operating areas in North Carolina and one in Texas.

7. Oakland-based Pyka unveiled an autonomous electric aircraft with a range of 200 miles. The aircraft, which contains six processors on two separate computers and forward-facing lidar, is expected to reach the market in H2 2023.