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In addition to being one of the world's leading premium light-vehicle manufacturers, BMW Group produces BMW motorcycles and provides financial services. Premium light-vehicle brands include BMW, Mini, and ultraluxury brand Rolls-Royce. Operations include 31 production facilities in 15 countries, research and development facilities in 17 countries, and a sales network reaching over 140 countries. In 2023, worldwide sales volume was over 2.5 million automobiles and over 209,000 motorcycles.

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Legacy automakers struggle to catch up in EV software race, with only 3 in top 10 digital automaker index. Chinese competition also faces challenges.

Tesla And Chinese EV Startups Outpace Toyota, Volkswagen In Critical Software Race: Report

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Europe’s biggest automaker, Volkswagen (OTC: VWAGY) is considering plant closures for the first time in its 87-year-old history.

Volkswagen&#39;s Crisis Is The Reflection Of Europe&#39;s Automotive Struggles

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Ford launch ChargeScape joint venture with BMWYY and HMC, appoints CEO and CTO for the venture. 

ChargeScape Powers Up: Ford, BMW, Honda Launch Vehicle-Grid Joint Venture

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Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), and General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) are lagging behind Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and several Chinese competitors regarding critical software needed to power electric vehicles (EVs), the Financial Times <a target="_blank" href="https://www.ft.com/content/7e5677b8-87fa-41fa-8648-9009ac7f14fc" rel="noreferrer noopener">reports</a>.
Only three legacy automakers—Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors, and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>)—made the top 10 in their &#8220;digital automaker index,&#8221; the Financial Times cites a Gartner report. Tesla, Chinese companies like Nio Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) and Xpeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), and startups such as Rivian Automotive, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) dominated the list.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39880027/should-elon-musk-be-worried-toyota-hyundai-and-ford-challenge-tesla-on-home-turf-with-more-evs-on-us" rel="noreferrer noopener">Should Elon Musk Be Worried? Toyota, Hyundai, And Ford Challenge Tesla On Home Turf With More EVs On US Roads As Billionaire&#8217;s Auto Giant Faces Sales Slump</a>
The automotive industry transition to software development proved challenging for major players like Toyota and Volkswagen, who need help to keep pace with changes focused on software controlling EV batteries, safety systems, and self-driving technology.
However, Chinese EV stocks are also facing <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks" rel="noreferrer noopener">a challenging year</a>, as the domestic economic slowdown led to a price war. The stocks are down 31%- 42% in the last 12 months.
The U.S. sanctions on advanced artificial intelligence chips further affected the industry. Tesla is up 0.80% in the last 12 months.
Meanwhile, another U.S. embargo on the auto industry posed <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks" rel="noreferrer noopener">an additional problem</a>. The U.S. Commerce Department is considering restricting importing and selling Chinese-made vehicles that contain critical communications and automated driving systems, citing national security concerns.
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<li><a href="https://www.benzinga.com/markets/asia/24/09/40745366/toyota-scales-back-2026-ev-production-plans-by-30-trims-target-to-1m-cars-as-global-demand-weakens-r" target="_blank" rel="noreferrer noopener">Toyota Scales Back 2026 EV Production Plans By 30%, Trims Target To 1M Cars As Global Demand Weakens: Report</a></li>
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Disclaimer: This content was partially produced using AI tools and reviewed and published by Benzinga editors.
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Europe&rsquo;s biggest automaker, Volkswagen (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vwagy#OTC">VWAGY</a>) is considering plant closures for the first time in its 87-year-old history. But Volkswagen is merely a reflection of a struggling European auto industry that is currently challenged on many fronts, with its struggles being both the global competition and its declining appeal.&nbsp;
Europe&rsquo;s automotive industry is struggling with many issues simultaneously.&nbsp;
According to&nbsp;Bloomberg Intelligence, one in three European factories of carmaking behemoths, namely Volkswagen, Bayerische Motoren Werke Aktiengesellschaft (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>), Mercedes-Benz Group AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mbgaf#OTC">MBGAF</a>)(OTC: <a class="ticker" href="https://www.benzinga.com/stock/mbgyy#OTC">MBGYY</a>), Stellantis N.V. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stla#NYSE">STLA</a>) and Renault (OTC: <a class="ticker" href="https://www.benzinga.com/stock/rnlsy#OTC">RNLSY</a>) is underutilized.&nbsp;Meanwhile, Chinese automakers such as BYD (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddy#OTC">BYDDY</a>) are off to conquer Europe. To avoid tarrifs on China-made EVs, they are planning to make their own factories on the European continent.&nbsp;
Volkswagen is only one of the first victims.
Volkswagen Group CEO Oliver Blume&nbsp;openly spoke of the serious situation that Europe&rsquo;s automotive industry is facing with Germany in particular falling from grace as a competitive manufacturing location. Volkswagen has also fallen from grace in China, its single biggest market. During the first half of 2024, Volkswagen&rsquo;s deliveries in China dropped 7%&nbsp;YoY with group operating profit tumbling 11.4%&nbsp;to $11.2 billion. Volkswagen is losing out to local brands in China like BYD and those brands are now going for its home market.&nbsp;&nbsp;
Stellantis has also been hit by slowing demand in Europe.
In Italy, Stellantis is hitting the brakes. In response to the sales crisis, Stellantis halted production of its electric Fiat 500e for a month at its Mirafiori facility that is located near Turin. Stellantis also revealed that the site will be undergoing a significant transformation that will involve an investment worth&nbsp;&euro;100 million. Stellantis is expected to start making a hybrid version of the Fiat 500&nbsp;sometimes next year.&nbsp;
In addition to its European struggles, Stellantis is also facing a shrinking share in North America. During the first half of 2024, net revenues dropped 14% YoY while net profit took a 48% YoY plunge.
With Chinese EV makers navigating new roads, determined to conquer the world, simple cost-cutting measures won&rsquo;t do.&nbsp;
European automakers are having a hard time keeping up with Chinese EV makers. The increased tariffs that the EU imposed on Chinese EV makers led to significant backlash and concerns that this will make it more difficult for the EU to achieve its net-zero goals as Chinese EVs are more popular with consumers, both due to their more favorable pricing and greater features. Moreover, tarrifs are seen as&nbsp;a minor speed bump for an EV powerhouse like BYD.&nbsp;Regardless of their legacy, European automakers who fail to adapt quickly enough will be left on the sidelines as Chinese EV makers like BYD threaten to leave them in the dust.
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Volkswagen's Crisis Is The Reflection Of Europe's Automotive Struggles

Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are trading higher on Wednesday. Ford, Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and, Honda Motor Company, Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>) launched operations for the joint venture, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40917799/bmw-ford-and-honda-begin-operations-of-vehicle-grid-integration-joint-venture-chargescape-name-jos" rel="noreferrer noopener">ChargeScape, that was announced last year</a>.
ChargeScape, the vehicle-grid integration joint venture, is a software platform that connects electric vehicles (EVs) to the power grid, helping to stabilize the grid and reduce charging costs for drivers.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40906726/us-port-strike-in-october-could-lead-to-major-supply-chain-disruptions-says-container-trade-expert" rel="noreferrer noopener">US Port Strike In October Could Lead To Major Supply-Chain Disruptions, Says Container Trade Expert</a>
The companies disclosed the appointment of Joseph Vellone as ChargeScape&#8217;s first CEO and Kalidindi Raju as its Chief Technology Officer (CTO).
Vellone said, &#8220;The U.S. has set ambitious targets for renewable energy deployment and EV adoption, and ChargeScape is here to bridge that gap between supply and demand of electricity.&#8221;&nbsp;
&#8220;We want to transform EVs from a liability into an asset for the power grid and help deliver a clean transportation future for our country.&#8221;
Raju said, &#8220;Although the vehicle-grid integration market is expected to be highly competitive, our partnerships with the world&#8217;s largest automakers gives us a significant edge. With direct access to the vehicles, we enable utilities to optimize EV charging securely and reliably.&#8221;
ChargeScape&#8217;s technology wirelessly connects to electric vehicles and collaborates with utilities to manage energy flow based on real-time grid conditions.
EV drivers can be financially rewarded for their flexibility, while ensuring their vehicles are charged by the specified time.
This month, Ford sold 8,944 electric vehicles in August in the U.S., marking a jump of 29% from the<a target="_blank" href="https://www.benzinga.com/news/24/09/40745466/fords-august-ev-sales-surge-29-driven-by-cybertruck-rival-f-150-lightning-despite-its-slowing-future" rel="noreferrer noopener"> corresponding month last year</a>.
This week, the company said that it is looking to start production of a high-performance race car variant of the&nbsp;Mustang&nbsp;for street <a target="_blank" href="https://www.benzinga.com/news/24/09/40895791/ford-to-roll-out-limited-edition-street-legal-race-car-variant-of-mustang-as-early-as-this-year" rel="noreferrer noopener">use as early as this year</a>.
Investors can gain exposure to the stock via&nbsp;First Trust Nasdaq Transportation ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXR#NASDAQ">FTXR</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Price Action: F shares are trading higher by 1.01% at $11.01 at the last check Wednesday.
Image via Shutterstock
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In a recent development, German automaker BMW AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) has adjusted its financial guidance for 2024 due to a slump in global sales.
What Happened: As per a press release from BMW on Tuesday, the company&#8217;s Board of Management has revised the 2024 financial year guidance. The decision was influenced by several factors, including delivery stops and technical issues related to the Integrated Braking System (IBS) supplied by a vendor. These problems are expected to negatively affect sales in the latter half of the year.
The IBS-related technical issues impact over 1.5 million vehicles, leading to additional warranty costs in the third quarter. Moreover, despite government stimulus measures, the company is facing subdued demand in China.
Consequently, BMW now expects a slight decrease in deliveries compared to the previous year, an EBIT margin between 6% and 7%, and a Return on Capital Employed (RoCE) between 11% and 13% for 2024. The Free-Cash-Flow in the Automotive Segment is anticipated to be above €4 billion ($4.41 billion) for the financial year.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40758803/did-a-potential-stock-sale-by-elon-musk-lead-to-fall-in-tesla-shares-top-analyst-sa?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Did A Potential Stock Sale By Elon Musk Lead To Fall In Tesla Shares? Top Analyst Says It Could Instead Because Of Broader Selloff In AI Stocks</a>
The revised earnings and additional inventory are expected to impact the third quarter more than the fourth. The full quarterly results and the adjusted outlook report will be published on Nov. 6, 2024.
Why It Matters: The revision in BMW&#8217;s financial outlook comes on the heels of a series of events that have impacted the company&#8217;s performance. In September, BMW had to recall over <a href="https://www.benzinga.com/markets/equities/24/09/40682126/bmw-recalls-over-140k-mini-cooper-se-electric-vehicles-globally-due-to-battery-overheating-risks">140,000 Mini Cooper SE</a> electric vehicles globally due to battery overheating problems. 
This followed a significant achievement in August, when <a href="https://www.benzinga.com/news/24/08/40521564/bmw-outpaces-tesla-with-more-bev-registrations-in-europe-in-july-than-elon-musks-ev-giant-for-the-fi">BMW outpaced Tesla</a> with more BEV registrations in Europe for the first time. The recent technical issues and the recall have, however, dampened the company&#8217;s momentum, leading to the revised financial outlook.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/09/40772132/volkswagens-5b-deal-with-rivian-leaves-software-arm-cariad-workers-frustrated-ceo-left-out-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Volkswagen&#8217;s $5B Deal With Rivian Leaves Software Arm Cariad Workers Frustrated, CEO Left Out: Report</a></li>
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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

BMW Revises 2024 Financial Outlook Amid Sales Slump And Technical Issues Impacting 1.5M Vehicles

By <a href="https://elplanteo.com/author/lucia-tedesco/" target="_blank" rel="noreferrer noopener">Lucía Tedesco</a> via <a href="https://elplanteo.com/canamo-industra-automotriz/" target="_blank" rel="noreferrer noopener">El Planteo</a>
<a href="https://elplanteo.com/que-es-el-canamo-hemp/">Hemp</a> is gaining ground in the automotive industry. Interior panels and structural components are some of the parts now being made from the plant's fibers.
Major automakers like Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAPY#OTC">VWAPY</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VLKPF#OTC">VLKPF</a>), BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and Ford (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) are actively exploring hemp use in their vehicles, driven by the need to reduce carbon emissions, improve fuel efficiency and respond to the growing demand for eco-friendly products from consumers.
<h3 class="wp-block-heading">A Commitment Between The Auto Industry And Hemp</h3>
Volkswagen, in collaboration with biomaterials startup Revoltech GmbH, has launched a research project to develop a leather substitute, creating a hemp-based artificial alternative. The new material, called LOVR, is vegan, oil-free, recyclable and compostable, designed to meet the company&#8217;s sustainability standards.
See also: <a href="https://www.benzinga.com/markets/cannabis/22/06/27820626/isiah-thomas-hemp-cars">This 12-Time NBA All-Star Is Making Autoparts With Plants, Predicts &#8216;All Plastics Will Be Made From Cannabis&#8217;</a>
The brand plans to begin using this material in its models starting in 2028, according to Hemp Today. Additionally, the use of hemp fibers, which are byproducts of local agricultural waste, highlights the effort to maximize resource use and minimize waste.
BMW, another renowned automaker and the world's most sustainable, according to the S&amp;P Dow Jones stock index, has incorporated hemp into the door panels of its i3 <a href="https://www.benzinga.com/electric-vehicles">electric vehicles</a> to reduce its carbon footprint. In addition to enhancing sustainability, using the plant helps reduce the vehicle&#8217;s weight, improving fuel efficiency.
The company is also exploring the use of other natural fibers, like flax and kenaf, and is developing "wood foams" made from 100% renewable materials. These efforts are part of a larger goal to cut carbon dioxide emissions by 40% by 2030.
<h3 class="wp-block-heading">Blast From The Past</h3>
<a href="https://elplanteo.com/coches-canamo-ford/">Henry Ford'</a>s vision of a car made from sustainable materials continues to inspire the auto industry. In 1940, he introduced a prototype car made from hemp fiber and resin, described as "ten times stronger than steel." While the idea didn't take off at the time, it's now seen as a precursor to current efforts to use renewable materials in car manufacturing.
Ford has already tested hemp fibers in its interior car components and has incorporated natural fiber composites into models like the Ford Focus.
Mercedes-Benz (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) and Audi are also exploring hemp for their vehicles. Both brands are incorporating the fibers into interior components to reduce weight and enhance sustainability.
Despite advances, integrating hemp into mass automotive production presents technical challenges related to the material's consistency and durability under different conditions. Additionally, the supply chain to source hemp sustainably and at scale remains a developing area. Manufacturers must still balance the cost of implementation and scalability with the environmental benefits.
Cover image by El Planteo, based on the following assets:
<ul>
<li>FDRMRZUSA, Public domain, via Wikimedia Commons</li>
<li>See page for author, Public domain, via Wikimedia Commons</li>
<li>Mercedes-Benz, Public domain, via Wikimedia Commons</li>
<li>SVG based on this imagede:Datei:Ford.svg, Public domain, via Wikimedia Commons</li>
<li>BMW, Public domain, via Wikimedia Commons</li>
</ul>
This article is from an external unpaid contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

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5 Auto Giants Embracing Hemp For Sustainability, From Ford To BMW

<a href="https://www.bmwgroup.com/en/news/general/2024/hydrogen-cooperation.html#:~:text=The%20BMW%20Group%20and%20the%20Toyota%20Motor%20Corporation%20will%20jointly,commercial%20and%20passenger%20vehicle%20applications" title="https://www.bmwgroup.com/en/news/general/2024/hydrogen-cooperation.html#:~:text=The%20BMW%20Group%20and%20the%20Toyota%20Motor%20Corporation%20will%20jointly,commercial%20and%20passenger%20vehicle%20applications">https://www.bmwgroup.com/en/news/general/2024/hydrogen-cooperation.html#:~:text=The%20BMW%20Group%20and%20the%20Toyota%20Motor%20Corporation%20will%20jointly,commercial%20and%20passenger%20vehicle%20applications</a>.

Toyota, BMW Update Partnership On Hydrogen Fuel Cell Vehicles, Sign New MoU To Accelerate Development Of Zero-Emission Cars; BMW To Launch First Hydrogen Model In 2028

The world-renowned German automobile manufacturer Volkswagen (OTCPK:VWAGY) could soon be changing the way it produces its faux leather.
What Happened: The second largest auto maker in the world by vehicle sales partnered with the German start-up Revoltech GmbH to research and develop sustainable materials based on industrial hemp. These could be used as sustainable surface materials in Volkswagen models from 2028.
"The sustainable use of resources is a key pillar in our ACCELERATE strategy and is therefore firmly anchored in our mindset and our actions," <a href="https://www.volkswagen-newsroom.com/en/press-releases/leather-from-industrial-hemp-innovative-and-sustainable-material-for-future-car-interiors-18665">stated</a> Andreas Walingen, head of strategy at the Volkswagen brand. "Our clear goal is to fuse customer wishes, sustainability requirements and corporate interests."
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.
<h2 class="wp-block-heading">Groundbreaking LOVR Material</h2>
The 100% biological material, called LOVR – "leather-free, oil-free, vegan and residue-based," is made from industrial hemp grown for the food industry. Material made from 100% bio-based hemp uses residues of the regional hemp industry. It can be produced on existing industrial plants and recycled or composted at the end of its service life in an automobile.
 "Our innovative surface material called LOVR that we are developing and testing for the automotive industry in cooperation with Volkswagen is scalable and groundbreaking for sustainability in the automotive sector," Lucas Fuhrmann, CEO and co-founder Revoltech GmbH said in a statement.
The first presentations of the innovative material have already received positive responses and feedback from customers.
"In our search for new materials, we are very open to new ideas from many different industries. At Technical Development, we place a strong focus on innovative, creative and sustainable solutions for holistic, resource-saving vehicle development," said Kai Grünitz, Volkswagen brand board member for technical development.
Other automotive giants have already researched or used these hemp-based materials in their cars. For example, BMW's (OTCPK:BMWYY) i3 electric cars have door panels made from a combination of hemp, natural fibers and a bio-based plastic, <a href="https://hemptoday.net/volkswagen-says-it-is-developing-hemp-fiber-based-material-to-replace-faux-leather/">writes</a> Hemp Today.
Ford (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) is known for experimenting with sustainable materials, including hemp. Its famous model Ford Focus has natural fiver composites in its interior. Mercedes-Benz (OTCPK:MBGAF), as well, included hemp-based material in various parts of its cars' interiors.
<h2 class="wp-block-heading">Hemp's Versatility</h2>
Hemp has the ability to blend with various polymers, which makes it suitable for various exterior applications. Used in composites, hemp fibers enhance the stiffness and strength of structural parts of a car, improving crash performance and overall structural integrity, writes the outlet. Furthermore, hemp fibers are known to be solid insulators, which is why are used in panels and materials that need to have soundproofing and thermal properties.
Material made from industrial hemp is also used in construction building and is called hempcrete. It is an eco-friendly building material that blends the inner core of industrial hemp with a lime-based binder, creating a bio-composite. Its benefits include climate-friendly and fireproof properties. Hempcrete is considered a "carbon negative" material as its production absorbs more carbon pollution out of the air than it releases.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/21/12/24508964/9-crazy-benefits-of-hemp-fabric">9 Crazy Benefits Of Hemp Fabric</a>
<h2 class="wp-block-heading">The Timing</h2>
Volkswagen's decision to explore hemp's potential comes on the heels of the German government changing its cannabis and hemp laws and aiming to <a href="https://www.benzinga.com/markets/cannabis/24/07/39840487/green-wave-in-germany-now-includes-hemp-new-bill-promotes-industrial-production">promote the industry</a>. In July, the German Federal Ministry of Food and Agriculture published a <a href="https://internationalcbc.com/german-federal-ministry-of-food-and-agriculture-publishes-draft-industrial-hemp-bill/?utm_source=ICBC+Combined+List+Newsletter+and+Outreach&amp;utm_campaign=078816e21e-EMAIL_CAMPAIGN_2024_07_15_03_37&amp;utm_medium=email&amp;utm_term=0_-078816e21e-%5BLIST_EMAIL_ID%5D" target="_blank" rel="noreferrer noopener">draft</a> bill aimed at modernizing the policies surrounding industrial hemp cultivation and handling. The proposed&nbsp;Industrial Hemp Liberalization Act (NLG)&nbsp;is set to eliminate legal uncertainties and open new avenues in the industrial hemp sector, <a href="https://internationalcbc.com/german-federal-ministry-of-food-and-agriculture-publishes-draft-industrial-hemp-bill/?utm_source=ICBC+Combined+List+Newsletter+and+Outreach&amp;utm_campaign=078816e21e-EMAIL_CAMPAIGN_2024_07_15_03_37&amp;utm_medium=email&amp;utm_term=0_-078816e21e-%5BLIST_EMAIL_ID%5D" target="_blank" rel="noreferrer noopener">reported</a> InternationalCBC.
In May, Ministry of Food and Agriculture (BMEL) Minister Cem Özdemir confirmed lawmakers removed the controversial&nbsp;&#8220;intoxication clause&#8221; that states it is theoretically possible that an individual could get high by consuming large amounts of industrial hemp.
Germany, the biggest country in Europe by population, reformed its cannabis laws this year. Partial legalization <a href="https://www.benzinga.com/markets/cannabis/24/04/38023610/heres-what-you-need-to-know-about-weed-legalization-in-germany-that-just-took-effect" target="_blank" rel="noreferrer noopener">took effect in Germany on April 1</a>, allowing adults over 18 to possess up to 25 grams of dried cannabis and cultivate up to three plants at home.
Cannabis clubs became legal on July 1, 2024, and the first such marijuana social clubs <a href="https://www.benzinga.com/markets/cannabis/24/07/39690787/first-cannabis-club-in-germany-opens-lawmaker-says-it-will-stem-illicit-marker-cops-say-the-oppo" target="_blank" rel="noreferrer noopener">opened their doors on July 8</a> in Lower Saxony. However, across many other states, applications for cannabis cultivation associations <a href="https://www.benzinga.com/markets/cannabis/24/08/40100562/germanys-cannabis-clubs-face-setbacks-amid-reg-hurdles-christian-democrat-leader-wants-to-revers" target="_blank" rel="noreferrer noopener">face multiple setbacks</a>.
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<li><a href="https://www.benzinga.com/markets/cannabis/24/08/40418137/industrial-hemps-14b-projected-growth-an-investment-opportunity-too-good-to-miss">Industrial Hemp&#8217;s $14B Projected Growth: An Investment Opportunity Too Good To Miss</a></li>
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Photo: Benzinga edit with images from <a href="https://commons.wikimedia.org/wiki/User:High_Contrast">High Contrast</a> via <a href="https://commons.wikimedia.org/wiki/File:VW_Logo_am_Heizkraftwerk_Wolfsburg_Nord.jpg">Wikimedia Commons</a> and by <a href="https://unsplash.com/@elsaolofsson?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Elsa Olofsson</a> via <a href="https://unsplash.com/photos/a-close-up-of-a-green-plant-with-lots-of-leaves-_lB_DHGmkeQ?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Unsplash</a>

Volkswagen Considers Hemp To Develop Sustainable Substitute For Imitation Leather

BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) recalling its Mini Cooper SE electric vehicles due to battery overheating problems, <a href="https://www.benzinga.com/markets/equities/24/05/38923402/bmw-mini-cooper-imports-linked-to-banned-chinese-components-report">potentially impacting over 140,000 cars globally.</a>
What Happened: According to the company, around 39,000 vehicles in Germany could be affected. The automaker emphasized that there have been no disclosed accidents or injuries related to this issue, Reuters reported on Monday.
The battery system issues could lead to overheating, and &#8220;a vehicle fire, even when the vehicle is parked, cannot be ruled out,&#8221; the statement noted.
The car&#8217;s software includes a diagnostic function that detects battery malfunctions and alerts the driver. Customers receiving this alert are advised to visit a Mini partner, the company added, according to the report.
See Also: <a href="https://www.benzinga.com/news/24/09/40672229/starlink-ineligible-for-nearly-900m-in-subsidies-says-fcc-spacex-ceo-elon-musk-says-it-is-flat-out-l?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Starlink Ineligible For Nearly $900M In Subsidies, Says FCC: SpaceX CEO Elon Musk Says It Is &#8216;Flat-Out Lying&#8217;</a>
Why It Matters: This recall is part of a broader trend of safety concerns for BMW. Recently, the company recalled nearly 721,000 vehicles in the U.S. due to <a href="https://www.benzinga.com/news/24/08/40460548/bmw-recalls-nearly-721k-vehicles-in-us-over-short-circuit-worries-both-gas-and-hybrid-electric-cars">short-circuit risks</a>, which could also lead to fires. This recall included both internal combustion engine (ICE) and hybrid electric cars.
Earlier in August, BMW recalled over 105,000 vehicles in the U.S. due to fire risks stemming from <a href="https://www.benzinga.com/news/24/08/40248854/bmw-recalls-over-105k-vehicles-in-u-s-over-fire-risks-due-to-overheating-starter-motor">overheating starter motors</a>. This issue similarly posed significant safety concerns. 
Additionally, BMW is working to solidify its partnership with Toyota Motor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>) to expedite the development of fuel cell vehicles (FCV), aiming to enhance its <a href="https://www.benzinga.com/news/earnings/24/08/40603154/toyota-bmw-to-solidify-partnership-to-expedite-fcv-development">competitiveness in the hydrogen-powered car market</a>.
These recalls come at a time when Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) is reportedly losing its &#8220;cool factor&#8221; among younger consumers, while brands like BMW continue to <a href="https://www.benzinga.com/news/24/08/40244060/teslas-cool-factor-ebbing-while-these-2-auto-brands-command-more-loyalty-than-elon-musks-ev-giant-mo">command strong loyalty</a>, according to a Morgan Stanley survey released in August.
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</ul>
Image: BMW
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Global

BMW Recalls Over 140K Mini Cooper SE Electric Vehicles Globally Due To Battery Overheating Risks

Global markets started September cautiously, with thin trading volumes as U.S. stock markets were closed for <a href="https://www.benzinga.com/markets/equities/24/09/40674353/is-the-market-open-on-labor-day">the Labor Day holiday</a>.
European markets closed the session marginally in the green, as traders anticipate imminent interest rate cut by the European Central Bank, The pan-European Euro Stoxx 50 index gained 0.3% for the day, closing at its highest level since mid-July. In Germany, the DAX index edged up 0.1%, setting a new record for its closing price.
Among large-cap European stocks, Sanofi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNY#NASDAQ">SNY</a>) led the gains with a 3.6% rise, followed by Orange (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORAN#NYSE">ORAN</a>) and Telefonica SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TEF#NYSE">TEF</a>), which climbed 1.7% and 1.5%, respectively.
The biggest laggards were Airbus SE (OTCPK: EADSY) , which fell 1.4%, Adidas AG (OTCPK: ADDY), down 0.9%, and both Kering SA (OTCPK: PPRUY) and BMW AG (OTCPK: BMWYY), each slipping 0.8%.
<h3 class="wp-block-heading">Other Markets</h3>
In the currency market, the euro rose 0.2% to 1.1070 against the dollar as of 2:00 p.m. ET: , snapping three straight sessions of declines. The British pound inched 0.1% against the greenback, while the Australian dollar rose 0.4%. 
The Japanese yen was the weakest performer on Monday, dropping 0.4% against the dollar, extending the trend from last week amid a reduction expectations for an aggressive Federal Reserve rate cut. 
In commodities markets, U.S. natural gas futures surged 2.8% to $2.10 per Million British Thermal Units, spurred by heightened demand for cooling. The Midwest region faced record-breaking temperatures over the weekend, prompting intense heat warnings for more than 60 million residents and driving up air conditioner usage.
Crude oil futures rose 0.5%, while gold eased 0.2% with the yellow metal falling slightly below $2,498.91. 
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose over 2% to 58,550, after dropping 2.8% on Sunday. 
<h3 class="wp-block-heading">Monday&#8217;s Major Company News</h3>
<ul>
<li>The German automaker BMW is recalling its electric Mini Cooper SE vehicles due to battery issues that could potentially impact over 140,000 cars globally, according to Reuters.</li>
<li>In a note released on Monday by the European Medicines Agency (EMA), Dutch pharmaceutical company Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVO#NYSE">NOVO</a>) advised healthcare professionals to continue restricting the initiation of new patients until the supply situation stabilizes. Shares of Novo Nordisk fell 1%.</li>
<li>Private equity giant Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) has reached an agreement to acquire an 80% stake in a European warehouse portfolio managed by landlord Burstone Resources Inc. (OTCPK: BBSRF). </li>
</ul>
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<li><a href="https://www.benzinga.com/24/09/40676774/september-market-seasonality-why-this-month-is-historically-the-toughest-for-investors">September Market Seasonality: Why This Month Is Historically The Toughest For Investors</a></li>
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$BTC

BBSRF

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EADSY

NOVO

ORAN

PPRUY

European Stocks Little Moved On Labor Day, German DAX Mark Record Close, Natural Gas Futures Rise: What's Driving Markets Monday?

Toyota Motor Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tm#NYSE">TM</a>) and BMW AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>) are set to deepen their collaboration on fuel cell vehicles (FCV) to boost the competitiveness of their hydrogen-powered cars.
Per Nikkei Asia, under this expanded partnership, which is expected to be officially announced on Sept. 5, 2024, Toyota will supply essential components like hydrogen tanks and fuel cell systems to BMW, which will then manufacture and sell mass-produced FCVs over the next few years.
Toyota and BMW originally teamed up on FCV development in 2012 to create greener vehicles amid stricter environmental regulations. Hydrogen fuel-cell vehicles produce only water as emissions and don&#39;t face the range anxiety associated with battery electric vehicles (BEVs). They also refuel as quickly as traditional internal-combustion-engine vehicles. However, FCVs are currently expensive to produce, resulting in low profit margins, and require hydrogen storage at extremely low temperatures. The expanded partnership aims to standardize components and reduce the cost of FCVs, which have struggled to gain popularity due to affordability issues.
Toyota, a leader in FCV technology, launched the world&#39;s first mass-produced FCV, the Mirai, in 2014. However, due to the high price of the model of more than 7 million yen compared with the average car price in Japan of 2.64 million yen in 2023, TM sold only about 26,000 units since then, making a small fraction of the company&#39;s total annual sales of more than 10 million vehicles.
Per WardsAuto, BMW has developed a concept FCV, the iX5 Hydrogen, which features two hydrogen tanks and offers a range of more than 310 miles, with a refueling time of just 3-4 minutes. Incorporating Toyota&#39;s fuel cell system could help BMW accelerate the iX5 Hydrogen&#39;s production timeline. Despite the potential of FCVs, they have not yet achieved widespread success, mainly due to the scarcity of hydrogen refueling stations. The expanded alliance is also expected to focus on the development of hydrogen infrastructure in Europe. Per the European Automobile Manufacturers&#39; Association, there are currently only 270 hydrogen filling stations, much less than 632,000 public BEV charging stations in the European Union as of the end of 2023.
<h2>Zacks Rank &amp; Key Picks</h2>
TM &amp; BMWYY currently carry a Zacks Rank #3 (Hold) each.
Some better-ranked stocks in the auto space are Dorman Products, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dorm#NASDAQ">DORM</a>) and Douglas Dynamics, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/plow#NYSE">PLOW</a>), each sporting a Zacks Rank #1 (Strong Buy) at present.
The consensus estimate for DORM&#39;s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW&#39;s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 30 days.
<a href="https://www.zacks.com/stock/news/2328316/toyota-bmw-to-solidify-partnership-to-expedite-fcv-development?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2328316">To read this article on Zacks.com click here.</a>

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DORM

PLOW

Toyota & BMW to Solidify Partnership to Expedite FCV Development

German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) <a href="https://www.benzinga.com/news/24/08/40155730/tesla-registrations-in-uk-dip-13-till-july-end-while-warren-buffett-backed-byd-mg-motor-register-gro">trumped American EV giant </a>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) in BEV registrations for the first time in Europe last month, according to market research firm JATO Dynamics.
What Happened: According to the firm, BMW saw 14,869 of its battery-electric vehicles registered in July, winning over Tesla, which had 14,561 registrations, by a slight margin.
Europe&#8217;s most popular automaker Volkswagen, meanwhile, delivered just 12,213 EVs. However, the automaker continues to lead in overall vehicle sales. 
Key Models: Despite the fall in registrations as compared to July 2023, the Tesla Model Y was the bestselling EV last month, with 9,544 units registered. <a href="https://www.benzinga.com/news/23/12/36345955/bmw-plans-half-a-million-ev-deliveries-in-2024-partners-with-mercedes-report">BMW&#8217;s BEV registrations</a>, meanwhile, were spurred by the popularity of the company&#8217;s new models including iX1, i4, and i5.
Dwindling EV Demand: Overall, the demand for EVs fell in July with market share falling to 13.5% from 14.6% in the corresponding month of last year. 
"The lack of clarity around the incentives for &#8211; and future of &#8211; EVs continues to present a barrier to consumers considering an EV. These factors, alongside the low residual value of EVs contributed to the decline seen in July," Felipe Munoz, Global Analyst at JATO Dynamics,&nbsp;said. 
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
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</ul>
Photo courtesy: BMW

BMW Outpaces Tesla With More BEV Registrations In Europe In July Than Elon Musk's EV Giant For The First Time

German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) is <a href="https://benzinga.com/topic/recall">recalling</a> 720,796 vehicles in the U.S. owing to concerns of a short circuit and increased risks of fire.
What Happened: The recall population includes several model years of both gas and hybrid electric vehicles. Several units of X5, X3, and even a few units of the 2 series convertible are included in the recall. 
An improperly sealed electrical connector on the water pump of some of these vehicles may short circuit on being exposed to water, the National Highway Traffic Safety Administration (NHTSA) said. This may increase the risk of a fire, the auto safety regulator added. 
As for a solution, the company&#8217;s dealers will inspect and replace the water pump as well as the plug connector if required and install a protective shield at no cost to the customer, the regulator said. 
Why It Matters: BMW took cognizance of the issue after it was contacted by the Korean Ministry of Land, Infrastructure and Transport regarding an incident involving a thermal event in March earlier this year.
While the company is not aware of any accidents or injuries related to the issue, it is aware of about 18 related customer concerns in the U.S. market, the regulator added.
Earlier this month, BMW <a href="https://www.benzinga.com/news/24/08/40248854/bmw-recalls-over-105k-vehicles-in-u-s-over-fire-risks-due-to-overheating-starter-motor">recalled over 105,000 vehicles</a> citing concerns of a starter motor overheating and increasing the risks of fire in the engine compartment. 
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
Read More:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40457848/elon-musk-agrees-with-ark-invest-analyst-on-biggest-challenge-of-ride-hailing-opera">Elon Musk Agrees With Ark Invest Analyst On Biggest Challenge Of Ride-Hailing Operations, Echoes Sentiment On Offering Incentives For Tesla Owners To Let Their Vehicles Be Used As Robotaxis During Peak Hours</a></li>
</ul>
Photo courtesy: Shutterstock

BMW Recalls Nearly 721K Vehicles In US Over Short Circuit Worries: Both Gas And Hybrid Electric Cars Affected

German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) is recalling <a href="https://www.benzinga.com/news/24/08/40244060/teslas-cool-factor-ebbing-while-these-2-auto-brands-command-more-loyalty-than-elon-musks-ev-giant-mo">105,588 vehicles in the U.S. </a>citing risks of fire owing to an overheating starter motor.
What Happened: The recall population includes several 2019-2021 model year vehicles including the BMW X7, X6, X5, and 8 Series Convertible, among others. 
The starter motor in these vehicles may overheat due to electrical overload upon repeated attempts to start the vehicle in case of a motor failure. The overheating can cause the nearby materials in the engine compartment to catch fire, the U.S. auto safety regulator National Highway Traffic Safety Administration (NHTSA) said. 
BMW told the regulator in a filing that the company is aware of about twelve customer complaints and associated field incidents related to the issue but no accidents or injuries. 
BMW dealers will update the vehicle software at no cost to the customer to prevent the electric overload on the starter and mitigate the fire risks. 
Why It Matters: Last month, <a href="https://www.benzinga.com/markets/equities/24/07/39801780/eu-nations-divided-over-tariffs-on-chinese-evs-commission-considers-compromise-for-bmw-and-volks">BMW issued</a> a recall for over 291,000 2018-2023 model year X3 vehicles in the U.S. citing concerns that the attachment for the interior cargo rail may become damaged in a rear crash and cause a cargo rail detachment. 
The company then said that its dealers would replace the rear cargo rail attachment bolts at no cost to the customer to resolve the concern. 
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link</a>.
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<li><a href="https://www.benzinga.com/news/24/08/40245102/nasa-abandoning-boeing-starliner-space-agency-might-bring-back-sunita-williams-and-butch-wilmore-wit">NASA Abandoning Boeing Starliner? Space Agency Might Bring Back Sunita Williams And Butch Wilmore With 2 SpaceX Crew-9 Astronauts In February 2025</a></li>
</ul>
Photo courtesy: BMW

BMW Recalls Over 105K Vehicles In U.S. Over Fire Risks Due To Overheating Starter Motor

The Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) brand is losing its charm among the younger generation, while there has been a continued preference for all things Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Morgan Stanley said in a report released Sunday.
ICEs Over EVs: Morgan Stanley&#8217;s survey of 575 summer interns, who will likely grow to be the next-gen business leaders, revealed that they preferred gasoline-powered cars over electric vehicles by nearly a 2:1 ratio. 
The ideas of these are bound to challenge the status quo, the firm said.
The preference for EVs fell for a second year, with only 15% favoring these vehicles. This was 22% in 2023 and 30% in 2022. On the other hand, ICEs were favored by 28%, up from 23% in 2022.
The data affirms Morgan Stanley&#8217;s view as it took down its 2030 EV penetration forecast from 25% to 20%.
A little more than 50% think owning/leasing a car will still be necessary in 2030, up from 48% of the respondents who thought likewise last year.
The percentage of respondents who said they would not use robotaxis increased from 12% last year to 19% in 2024. &#8220;Full autonomy may be farther out than most predict – particularly from a consumer trust standpoint,&#8221; Morgan Stanley said.
See Also: <a href="https://www.benzinga.com/money/best-electric-vehicle-stocks">Best EV Stocks</a>
Tesla&#8217;s &#8220;cool factor&#8221; is cooling, the firm said, with only 11% of the respondents saying it is the most desirable brand, down from 14% last year and 30% in 2021. Tesla&#8217;s loss translated to gains for Mercedes-Benz Group AG&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) Mercedes brand and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>). The former was the most desirable for 19% of the respondents, while the latter for 15%.
Apple Brand Pull Intact: Morgan Stanley said there has been continued preference for &#8220;all things Apple&#8221;. The survey found that the iPhone was the dominant smartphone brand, with 93% ownership, up two points from 2023. The preference for the iPhone stems from the focus on superior battery life and compatibility with other owned technology devices.
But only 4% mentioned AI-powered features as one of the most important drivers of smartphone purchases, which will be key to iPhone upgrades this next cycle. 
A recent BofA report said <a href="https://www.benzinga.com/news/earnings/24/02/37372651/apple-customers-remain-loyal-to-iphone-feel-vision-pro-is-too-pricey">Apple customers remain loyal to the iPhone </a>— with its unique iOS operating system being the chief selling point among a generation of&nbsp;iPhone users&nbsp;— they may not embrace the Vision Pro just yet.
Beyond the iPhone, respondents&#8217; Apple ecosystem spending remained robust, with 68% of them spending on Apple Services in the last 6 months, and 93% owning at least one Apple device in addition to an iPhone, with AirPod, Mac and iPad at the top of the list. However, only 1% of the respondents currently owned the Apple Vision Pro AR/VR headset.
Tesla fell 1.13% to $189.59 in premarket trading, according to<a href="https://benzinga.grsm.io/register174"> Benzinga Pro data, </a>while Apple moved down 0.83% to $208.07.
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Image via Shutterstock

AAPL

Tesla's 'Cool Factor' Ebbing While These 2 Auto Brands Command More Loyalty Than Elon Musk's EV Giant, Morgan Stanley Survey Finds

LG Energy Solution Ltd., a South Korean battery manufacturer, is slowing down the construction of its third plant with General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) in Michigan due to weak demand for electric vehicles and concerns over potential <a href="https://www.benzinga.com/markets/equities/24/07/39871513/trump-pours-cold-water-on-industry-tesla-falls-ahead-of-earnings-week-fords-step-back-in-ev-plan">political shifts in the U.S.</a>
LG Energy said it is "adjusting the speed of overall investment" and exploring "flexible operation" options for its facilities, according to a message sent to <a href="https://www.bloomberg.com/news/articles/2024-07-22/lg-slows-ev-cell-plant-with-gm-in-us-as-political-worries-swirl?srnd=phx-industries&amp;sref=TBDibEcD">Bloomberg News</a>. 
LG Energy and GM commenced the project in 2022 with an investment of approximately $2.6 billion, targeting the first half of next year for operational commencement. 
Also Read: <a href="https://www.benzinga.com/news/24/07/39856649/gms-cruise-attempts-to-build-better-relations-with-emergency-responders-after-its-avs-involvement-in">GM&#8217;s Cruise Attempts To Build Better Relations With Emergency Responders After Its AV&#8217;s Involvement In An Accident Last Year</a>
Additionally, Korean firms are apprehensive about the U.S. presidential election, having invested significantly in North America following President Joe Biden's clean energy initiative, which promotes domestic EV production and reduces dependence on Chinese suppliers.
Former President Donald Trump has pledged to dismantle the Inflation Reduction Act and reverse Biden&#8217;s pro-EV measures if he returns to office. At last week&#8217;s Republican National Convention, Trump promised to "end the electric vehicle mandate on day one." 
The Biden administration set a goal for 50% of all new vehicles sold to be electric by 2030. 
Earlier this month, LG CEO Kim Dong Myung emphasized the need to adjust investment speeds and urged employees to seek ways to enhance investment flexibility and efficiency.
Meanwhile, GM is also revising its expectations for its EV program. CEO Mary Barra recently stated that the company would <a href="https://www.benzinga.com/markets/equities/24/07/39786382/gm-delays-1m-ev-production-target-beyond-2025-market-isnt-developing-were-going-to-be-guided-by-">not meet its goal of producing one million EVs</a> by the end of next year.
Samsung SDI Co., another major Korean battery maker and supplier for BMW AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), has highlighted the slowdown as "a new crisis."
The company has two planned plants with Stellantis in Indiana and another with GM in the same state. Similarly, SK On Co., a supplier for Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and Hyundai Motor Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HYMTF#OTC">HYMTF</a>), has declared an emergency after reporting significant losses in Q1.
Parent company SK Innovation Co. is evaluating options to enhance SK On's competitiveness, including potential restructuring.
SK On has two operational plants in Georgia, with another planned in collaboration with Hyundai. The company also intended to establish three additional plants with Ford—two in Kentucky and one in Tennessee—financed through Biden's administration funds. 
However, the start of a second Kentucky facility has been postponed due to slowing EV sales.
A June report from the Korea Institute for Industrial Economics &amp; Trade indicated that Korean battery manufacturers might consider scaling back their U.S. investment plans if the IRA is altered following the US presidential election.
Read Next: 
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<li><a href="https://www.benzinga.com/news/24/07/39858300/tesla-sees-24-drop-in-california-registrations-as-ev-competition-heats-up">Tesla Sees 24% Drop In California Registrations As EV Competition Heats Up</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

HYMTF

LG Energy, GM Adjust US Plant Plans Due To Waning EV Market

Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) experienced a 24% drop in car registrations in California during the second quarter, according to data from the <a target="_blank" href="https://www.cncda.org/news/california-new-car-dealers-association-releases-q2-2024-auto-outlook-report-2/" rel="noreferrer noopener">California New Car Dealers Association</a>. This marked the third consecutive quarter of declining sales in this critical market.
Tesla's registrations in California fell to 52,211 vehicles in the second quarter, while the battery electric vehicle market only declined by 1.3% during this period, hybrid vehicle sales surged by 22% in California.
The Model Y crossover remains Tesla's top-selling model in California, although its market share dropped to 53.4% in the first half of the year, down from 64.6% in the same period last year.
High interest rates and increased competition have led to a decline in demand for electric vehicles as consumers turn towards more affordable hybrid options.
Reuters reported that Potential Tesla buyers in the U.S. are reportedly deterred by CEO Elon Musk's divisive public persona.
Musk's endorsement of <a target="_blank" href="https://www.benzinga.com/news/24/07/39804113/exclusive-elon-musk-is-burning-his-own-blue-bridges-by-donating-to-trump-says-market-expert" rel="noreferrer noopener">Republican candidates and controversial statements</a> have raised concerns about Tesla's brand, particularly in liberal states like California, which accounts for 10% of the company's global deliveries.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39813896/tesla-extends-model-3-delivery-times-in-china-report" rel="noreferrer noopener">Tesla Extends Model 3 Delivery Times In China: Report</a>
"Tesla's allure seems to be wearing off, signaling potential trouble for the direct-to-consumer manufacturer," the report noted.
Tesla relocated its headquarters from California to Texas in 2021, and Musk announced this week that other ventures like SpaceX and X would also move, following disagreements with Governor Gavin Newsom's policies on <a target="_blank" href="https://www.benzinga.com/news/24/07/39846836/california-ev-subsidies-made-tesla-what-it-is-but-elon-musk-is-ready-to-cut-them-off-remove-subsidie" rel="noreferrer noopener">transgender issues</a>.
From January to June, Tesla's registrations in California decreased by 17%. Meanwhile, competitors like Hyundai Motor Company (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HYMTF#OTC">HYMTF</a>), Kia Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/KIMTF#OTC">KIMTF</a>), BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGYY#OTC">MBGYY</a>), Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), and Rivian Automotive Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) saw significant sales increases.
Tesla is set to release its quarterly results on Tuesday, July 23. The company delivered more vehicles than analysts anticipated in the second quarter, though these figures were still lower compared to the previous year.
Tesla reported second-quarter deliveries of 443,956 compared to a<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39598234/tesla-q2-deliveries-the-appetizer-to-the-main-event-analyst-says-worst-in-the-rearv" rel="noreferrer noopener"> Street consensus estimate of 437,800</a>.
Tesla stock has lost more than 14% in the last 12 months. Investors can gain stock exposure via&nbsp;the Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and the Fidelity MSCI Consumer Discretionary Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDIS#NYSE">FDIS</a>).
Price Action: TSLA shares are trading higher by 0.24% at $249.82 in premarket at the last check on Friday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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Tesla Sees 24% Drop In California Registrations As EV Competition Heats Up

European Union governments have expressed differing opinions on the imposition of EU tariffs on imports of electric vehicles (EVs) manufactured in China, as indicated in a <a target="_blank" href="https://www.benzinga.com/electric-vehicles" rel="noreferrer noopener">non-binding but influential vote.</a>
The European Commission, responsible for the EU&#8217;s trade policy, has imposed provisional tariffs of up to 37.6% on electric vehicles imported from China and has sought input from EU member states in a consultative vote.
Twelve EU members endorsed the tariffs, four opposed them, and eleven abstained from voting, Reuters reported, citing people familiar with the discussions.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/07/39787139/chinese-ev-thrive-despite-tariff-hikes-foreign-rivals-struggle" rel="noreferrer noopener">Chinese EV Thrive Despite Tariff Hikes, Foreign Rivals Struggle</a>
The Commission is likely to consider these votes when determining whether to proceed with definitive duties in what is the EU&#8217;s most prominent trade case to date.
France, Italy, and Spain supported the tariffs, whereas Germany, Finland, and Sweden abstained.
A German source told Reuters that their abstention was in the spirit of &#8220;critical solidarity&#8221; with the Commission.
An official from the Finnish embassy expressed doubts about the measure aligning with EU interests, noting not all European car manufacturers supported it.
Swedish trade minister Johan Forssell emphasized the importance of dialogue between the Commission and China to resolve the issue.
Beijing has warned of extensive retaliatory measures.
The Commission plans to extend its investigation for three months before deciding on proposing definitive duties, typically lasting five years, Reuters added.
Any proposed tariffs would require a binding vote among EU members, and could be blocked if 15 member countries representing 65% of the EU population vote against.
As a gesture of compromise, the European Commission has indicated potential consideration for a reduced tariff on BMW&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) China-made electric Mini and Volkswagen AG&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VLKAF#OTC">VLKAF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) Cupra Tavascan.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Shuttershock
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VLKAF

EU Nations Divided Over Tariffs On Chinese EVs; Commission Considers Compromise For BMW And Volkswagen Models: Report

Conversations are <a href="https://www.benzinga.com/news/24/06/39448914/china-agrees-to-discuss-ev-tariffs-with-eu-germany-welcomes-it-as-first-step-but-says-many-more-will">moving forward between China and the European Union</a> on a deal that could benefit electric vehicle (EV) companies from both economic powerhouses.
Willingness from both sides to de-escalate a looming tariff war for the car industry can be read as an oasis of mutual trust within the growing trend of protectionism and economic decoupling that has marked relations between China and the West in recent months.
<h3 class="wp-block-heading">New Tariffs On EVs Threaten Carmakers In China, EU</h3>
Germany is fearful of the effects of a recent EU decision to slap an extra tax of up to 38% on some Chinese EV brands, on top of an already-existing tariff of 10%.&nbsp;
For some Chinese EV makers, like SAIC Motor Corp., this could mean a 48% tax on all units sent to the EU. Geely Automobile Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GELYF#OTC">GELYF</a>) could have its cars face a 30% tax and BYD Company ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>), 27%.
According <a href="https://www.bloomberg.com/news/articles/2024-06-24/china-floats-perks-for-german-carmakers-in-bid-to-stop-ev-levies?srnd=homepage-europe&amp;sref=TBDibEcD">to</a> Bloomberg, Beijing has suggested that Germany could benefit if the EU were to drop the announced raise.
An agreement would primarily benefit luxury German brands like Mercedes Benz Group ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGYY#OTC">MBGYY</a>), DR ING H C F PORSCHE ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/DRPRY#OTC">DRPRY</a>) and Bayerische Motoren Werke ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), whose units are in risk of receiving extra tariffs in China.
If the EU were to move forward with its decision, launching the new tariffs by July, China could retaliate with higher tariffs on EU-made cars.
Read Also: <a href="https://www.benzinga.com//node/39444946">Tesla Analysts Temper Expectations, Fisker Shuts Down Shop, Nikola&#8217;s 30-for-1 Reverse Split And More: Biggest EV Stories Of The Week</a>
In May, Beijing said it could take its 15% tariff on EU-made cars to up to 25% for large-engine vehicles, in a move that is putting pressure on Germany to act. Large-engine vehicles are considered those with 2.5 liter engines and above, a hallmark of German luxury car brands, which enjoy a healthy market in China.
In the U.S., Chinese EVs have had difficulty gaining market share given high tariffs,<a href="https://www.benzinga.com/news/24/05/38758049/biden-plans-new-tariffs-on-china-targets-electric-vehicles-and-other-strategic-sectors-report"> which are due to climb above 102% for Chinese electric cars</a> this year.
The decision was announced last month by the Biden administration, quadrupling tariffs on China-made EVs and EV components in an effort to protect the domestic car industry and avoid a flood of Chinese cars in U.S. soil.&nbsp;
U.S. carmakers like Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Rivian Automotive Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) and Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) welcomed the decision.
<h3 class="wp-block-heading">Can Germany Push The EU To A Halt?</h3>
During conversations held over the weekend between Robert Habeck, Vice-Chancellor of Germany and his Chinese counterpart Wang Wentao, China proposed lowering existing tariffs of 15% on large-engine cars in exchange for dropping the announced tariff hikes by the EU.
Habeck, who performs as Germany's economy minister, has been on an official visit to the Asian nation.
Yet Germany has to convince the bloc that the planned hike isn't worth pursuing, and pressure by the bloc's largest economy could stir conflict within the bloc.&nbsp;
The EU's decision came as a way to level the playing field after a probe concluded that Chinese government subsidies left European car companies at a disadvantage.
The new tariffs were described as a legal action stemming from a months-long probe, while any change to that decision would be politically and economically motivated.
Germany has declared itself against the EU tariffs and Chancellor Olaf Scholz said Monday that he expects a negotiation to result favorable before the EU tariffs begin being collected.
For now, the EU's tax is provisional and would be set definitely in November unless changed.
Now Read: <a href="https://www.benzinga.com//node/39430780">Chinese EV Maker Xpeng Offers Test Drive Of Its ADAS To Tesla CEO Elon Musk After He Xiaopeng Tries FSD</a>
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Deal Between Germany, China Could Stop Looming Tit-For-Tat On EV Tariffs

Chinese carmakers have reportedly called upon Beijing to raise tariffs on European gasoline-powered cars. This move is seen as a retaliatory measure against the <a href="https://www.benzinga.com/news/24/06/39292802/eu-tariffs-on-chinese-evs-raises-red-flags-battery-maker-warns-of-dwindling-demand-for-material-shor">European Union&#8217;s restrictions</a> on the export of Chinese-made electric vehicles.
What Happened: The Chinese auto industry appealed during a closed-door meeting on Tuesday. The meeting was organized by China&#8217;s Ministry of Commerce and was attended by both Chinese and European car companies, including SAIC, BYD (OTCPK: BYDDY), Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), Volkswagen (OTCPK: VWAGY), and Porsche Automobil (OTC:<a class="ticker" href="https://www.benzinga.com/stock/POAHY#OTC">POAHY</a>), Reuters reported citing the state-backed Global Times.
The industry representatives suggested that Beijing should consider raising the provisional tariff on gasoline cars with large-displacement engines. This request comes in response to the EU&#8217;s recent imposition of tariffs to protect its car industry from Chinese competition.
&#8220;Personally, I think it is unfair to start a tariff war solely on the basis of (China&#8217;s) capacity utilization rate and insufficient demand for China&#8217;s new energy vehicles,&#8221; said Zhang Yansheng, chief research fellow, China Center for International Economic Exchanges.
See Also: <a href="https://www.benzinga.com/news/24/06/39393913/nancy-pelosis-visit-to-dalai-lama-tibetan-parliament-in-exile-angers-china-ahead-of-biden-signing-ke?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Nancy Pelosi&#8217;s Visit To Dalai Lama, Tibetan Parliament-In-Exile Angers China Ahead Of Biden Signing Key Bill On Region: &#8216;Resolute And Forceful Measures&#8217; Will Be Taken</a>
The European Commission has indicated that it is open to discussing a mutually agreeable solution to the situation.
Why It Matters: EU car exports to China totaled €19.4 billion ($20.8 billion) in 2023, according to figures from the EU statistics agency. During the same period, the EU imported €9.7 billion worth of electric vehicles from China. China represents approximately 30% of sales for German carmakers.
Germany, the largest exporter of vehicles with engines of 2.5 liters or above, has exported $1.2 billion worth of such vehicles to China since the start of this year, according to Chinese customs data.
The EU&#8217;s decision to impose anti-subsidy duties on Chinese EVs in June has sparked a series of responses from China. The country has vowed to <a href="https://www.benzinga.com/news/24/06/39291257/china-vows-to-firmly-safeguard-interests-against-new-eu-tariffs-as-ev-makers-experts-give-mixed-reac">safeguard its interests</a> and take all necessary steps to defend its rights. The move is seen as a response to China&#8217;s &#8220;unfair&#8221; use of state support for its EV manufacturers.
These new tariffs could <a href="https://www.benzinga.com/news/24/06/39306681/fresh-eu-tariffs-could-slow-down-tesla-chinese-rivals-but-warren-buffett-backed-byd-can-profitably-e">potentially slow down</a> Chinese automakers, but companies like Warren Buffet-backed BYD are expected to remain competitive. However, a <a href="https://www.benzinga.com/markets/asia/24/06/39311054/bain-partner-warns-chinese-ev-makers-price-wars-abroad-could-jeopardize-product-quality-and-brand-re">Bain &amp; Co. partner has cautioned</a> that the ongoing price wars among Chinese EV manufacturers in overseas markets could potentially raise doubts about the quality of their products.
Read Next: <a href="https://www.benzinga.com/markets/asia/24/06/39362931/why-alibaba-stock-could-rally-golden-cross-in-sight?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Why Alibaba Stock Could Rally: Golden Cross In Sight</a>
Photo courtesy: Shutterstock.
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

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POAHY

Chinese Carmakers Urge Beijing To Increase Tariffs On EU Gasoline Cars In Retaliation For EV Tariffs: Report

Key contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Hon Hai Precision Industry Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HNHPF#OTC">HNHPF</a>), more popularly known as Foxconn and an Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) iPhone assembler, are guiding global supply chain shifts amid political and business changes.
TSMC, serving clients like Apple and Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), has expanded to vital automotive hubs like Dresden, Germany, near automotive giants like Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), and Porsche.
This site attracts co-investors like Bosch and Infineon, ensuring that suppliers also establish operations nearby, Bloomberg <a target="_blank" href="https://www.bloomberg.com/opinion/articles/2024-06-09/tsmc-and-foxconn-will-guide-the-global-supply-chain?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/06/39226348/taiwan-semi-rides-ai-wave-reports-7-1b-revenue-in-may" rel="noreferrer noopener">Taiwan Semi Rides AI Wave, Reports $7.1B Revenue In May</a>
In Japan&#8217;s Kumamoto prefecture, TSMC partners with Sony Group Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>), Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), and Denso to serve Japan&#8217;s automotive and electronics industries.
The Arizona facility was established due to client pressure and government incentives, attracting suppliers like LCY Chemical and Topco Scientific.
TSMC earmarked $44 billion in 2022, up from $31 billion in 2021,&nbsp;to boost its chip-making capacity.&nbsp;The chipmaker won $6.6 billion in U.S. chip funding, the Verge <a target="_blank" href="https://www.theverge.com/24166234/chips-act-funding-semiconductor-companies" rel="noreferrer noopener">reports</a>.
Foxconn, renowned for assembling Apple&#8217;s iPhones and Nvidia&#8217;s AI servers, is expanding its global footprint with 205 sites in 24 countries.
Foxconn&#8217;s expansions into Mexico, India, and Southeast Asia and partnerships with European industrial firms like Siemens and Stellantis show its strategic push into factory automation, transportation, logistics, aerospace, and alternative energy.
Price Action: TSM shares were trading higher by 2.59% to $168.66 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Ivan Marc via Shutterstock

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