Business

(NEW YORK) — Mate Rimac has a tall order: trying to convince drivers that electric supercars are superior to combustion vehicles.

Rimac, the 36-year-old engineering savant from Croatia who started his namesake company 15 years ago, recently pulled the sheet of his latest creation: the Nevera R, an aerodynamically perfected supercar designed to hug every tight corner and give maximum driving pleasure. The performance numbers are nearly impossible to comprehend: 2,107 horsepower and a 0-60 mph time of 1.74 seconds.

This insanely powerful supercar is breaking industry records. There are, however, snags in Rimac’s master plan. He has acknowledged that turning enthusiasts to electric proselytes could take months, if not years.

Rimac spoke to ABC News earlier this month about the challenges of selling his seven-figure sports cars, taking over French marque Bugatti as CEO and why government officials are making a mistake by pushing electric-vehicle mandates. He’s also a big supporter of autonomous driving.

The interview below has been edited.

ABC News: You introduced the Nevera R electric hypercar to the world at Monterey Car Week. The horsepower that car produces — 2,107! — is mind-blowing. How did you accomplish this?

Mate: I started the company 15 years ago when I was like 20 years old in order to push the limits and show what technology can bring to the table … that the future of automotive is not going to be boring. And the whole goal, my whole focus of the company and of me the last few years, has been to achieve that. It’s not just the car. It’s building the capabilities, the company around it, to actually do it in Croatia, a country that has never built cars before.

The last 15 years of this journey has been leading up to developing this technology, the team, the resources, the factory, the equipment and actually a whole industry.

ABC News: Is horsepower the one metric that matters most to your customers?

Mate: No, absolutely not. It’s the whole package. So performance is being commoditized right now. More and more cars come to the market at a relatively affordable cost that offer quite good performance, incredible performance actually when you compare it to a few years ago when it was only reserved for extreme hypercars. It’s all about emotions and that’s always a challenge with electric cars: How do you convey emotion without the sound of a combustion engine? But everyone who tries a Nevera is like, “Yes, we can see that this car was developed by people who love cars, like proper car guys.” Despite being electric, the Nevera offers a lot of emotion. That’s the most important thing.

ABC News: And how exactly are you delivering that emotion?

Mate: Well, there’s different things. The Nevera has four electric motors that can do crazy drift modes and on a flip of a switch it’s like a track monster. Everything changes — the suspension, the power distribution, it goes from rear-wheel drive to all-wheel drive, it can adjust it exactly as you want. Like it gives a totally different experience.

Emotion for me is the ability to go sideways, to control the car, stuff like that. And we can do all of that with this car.

ABC News: Why are you limiting production of the Nevera R to 40 units? When does production begin?

Mate: The Nevera was 150 units, and the Nevera R is 40 additional. We want to keep exclusivity. The Bugatti Tourbillon is limited to 250 and we could have sold a lot more, but for us it’s important to have exclusivity and it’s also important for the value of the cars later.

We start production early next year and the cost of a Nevera R is 2.3 million euros.

ABC News: Here we are, talking about the electric Nevera R, an engineering triumph, but you made a comment this past spring that high-end buyers don’t want electric supercars. Is that still true? Are you having trouble selling the Nevera to enthusiasts?

Mate: I think electric cars, in any category, need to bring something special. Just making an car electric is not going to cut it. People are thinking, “Let’s just make an electric car and it will sell … or the regulation will force people to go electric.” And I am not totally against that — I am totally against forcing this on people who don’t want an electric car. I am all for bringing something unique, something cool, something different that’s better and maybe more affordable — maybe not in this market segment but in general.

An electric car should be better in every aspect, including price, compared to its competition and then people will buy it.

ABC News: There’s another trend in the industry where automakers are taking electric sports cars but giving them gearboxes and fake engine sounds. Is this something you’ve thought about?

Mate: No, we don’t do this. We have decided from the beginning we only do authentic things. There are no fake sounds, there are no artificial gear shift changes. The Hyundai Ioniq 5 Ns have that, it’s a gimmick. But we don’t think that’s appropriate for this category of cars.

ABC News: When do you think electric sports and supercars cars will be widely accepted?

Mate: Oh, I think that will be a while. People in this segment still prefer combustion cars. But I think we are the player when it comes to electric performance in this segment.

ABC News: So will the next Rimac sports car or Nevera successor have an internal combustion engine?

Mate: It could be anything. From the beginning, I never said that we are exclusively electric. We were whatever is most exciting. The Nevera R has four electric motors — that is not something you can achieve with a combustion engine. But when it comes to power source, it can be anything. It could be a combustion engine with an interesting fuel, it could be fuel cell that does not run on hydrogen. We are really looking at lots of stuff. The next car doesn’t necessarily have to be purely electric — whatever is most exciting and most technically interesting. I have been doing electric cars now for 15 years … I am very excited to look at other stuff as well.

ABC News: Where are you seeing the most demand for your cars?

Mate: The U.S. is the biggest customer base, closely after that is Europe. So like 40% [of sales] are in the U.S., 30% is Europe and then the rest of the world.

ABC News: What are the challenges of running two high performance and ultra luxe brands like Bugatti and Rimac? They compete for the same customers and that’s a very limited pool.

Mate: These customers have multiple cars, it’s not just like they buy just one car. They want to be a part of something. It’s about the people behind it, it’s about the events, meeting each other. [Customers] are becoming part of a story. They’re also becoming a part of history. We are creating history together.

Many of the customers decided to join Rimac because they’re also part of Bugatti or vice versa and they deal with the same people, they go to Croatia, they have the Croatia experience, so it actually works well. With Bugatti you have to be careful, it’s an old brand with a lot of heritage. You have to be very respectful to the brand. You cannot do something that’s crazy. A lot of our Nevera customers are also Bugatti customers.

ABC News: What is the biggest obstacle for all automakers and the industry right now?

Mate: There are three big topics. One is electrification. A lot of people invested a lot into electrification and maybe it was a bit too fast. The other area is China. The third one is autonomous driving and finding new ways of moving around where ownership isn’t really necessary anymore. The lower-end brands are really in the trenches, they have issues. It’s for sure an interesting time and in the next year we’ll see lots of changes in the industry.

ABC News: There are concerns about a recession in the U.S. Has the company been impacted at all?

Mate: This talk has been going on for years, basically since COVID started. We have never been more successful. We sold out of the Tourbillon — all 250 cars. We just presented it two months ago. It’s completely sold out. We are basically sold out until the end of this decade with Bugatti for a car that’s $4.6 million. The market is still strong in this segment.

ABC News: You’re also developing a driverless robotaxi that could be in service as soon as 2026. These types of vehicles have received a lot of bad press lately and have been involved in serious safety accidents. Why robotaxis? You design cars for real-life drivers.

Mate: Yeah, but do you really like to drive in every situation? Like how many times would you rather spend your time doing something else — watching a movie, or typing on your phone or typing some emails but you can’t because you’re driving or even worse you’re doing it while you’re driving. Not every drive is necessarily exciting and let’s be honest — how many people really care about it? I am not saying car ownership should go away or people shouldn’t drive cars anymore. God forbid.

We just think it makes sense. When an autonomous car in this stage has an accident, even if it’s a minor one, of course it will be blown out of proportion. But eventually autonomous cars will be a lot safer, a lot safer than human drivers and they will save millions of lives.

ABC News: So you have taken over Bugatti, you’re building electric hypercars and you also want to build robotaxis.

What is next on your list to accomplish?

Mate: [laughs]. Oh Jesus Christ, nothing. I made a vow to myself to finish all these things and then I don’t know. I might take a long vacation.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Two major Canadian freight rail companies locked out thousands of workers on Thursday, shutting down cross-border shipping routes and risking serious damage for the U.S. economy, industry experts told ABC News.

The rail lines carry everything from chemical inputs to auto parts, holding the potential to cause shortages for a range of products American consumers and businesses depend on. While the damage is minimal so far, a prolonged shutdown of weeks or months could slow U.S. economic growth, rekindle inflation and put some workers out of a job, the experts said.

“Right now, I do not think the sky is falling,” Joseph Schofer, a professor emeritus of civil and environmental engineering at Northwestern University, told ABC News. “In a week or two, effects will begin to develop.”

The shutdown will cost the Canadian economy about $250 million per day, according to Brendan La Cerdaa, director of economic research at Moody’s Analytics. If the strike continues for a week or two, the U.S. economy could start suffering costs of about $70 million per day, La Cerda said.

More than 9,000 Teamsters workers are off their jobs after Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC) locked them out when they failed to reach a deal on a new contract. It’s the first time both railways have been simultaneously halted.

“Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck. The railroads don’t care about farmers, small businesses, supply chains, or their own employees. Their sole focus is boosting their bottom line, even if it means jeopardizing the entire economy,” Teamsters Canada Rail Conference President Paul Boucher said in a statement on Thursday.

In a statement, CN said it had negotiated with workers in good faith for nine months, offering better wages and shorter hours.

“Without an agreement or binding arbitration, CN had no choice but to finalize a safe and orderly shutdown and proceed with a lockout,” the company said on Thursday.

Similarly, CPKC said the lockout came about after months of unsuccessful negotiations.

“We fully understand and appreciate what this work stoppage means for Canadians and our economy. CPKC is acting to protect Canada’s supply chains, and all stakeholders, from further uncertainty and the more widespread disruption that would be created should this dispute drag out further resulting in a potential work stoppage occurring during the fall peak shipping period,” the statement said.

What does the Canadian rail shutdown mean for the U.S. economy?

A brief shutdown of the top two Canadian freight rail companies would not meaningfully impact the U.S. economy, experts told ABC News. However, they added, a prolonged lockout would damage the nation’s economic performance and risk accelerating inflation.

Many companies rely on Canadian rail lines to deliver raw goods that play a vital role in the supply chain. Affected industries include auto companies, chipmakers and fertilizer manufacturers, experts said. Perishable goods also reach U.S. consumers on trains from Canada.

As a smaller-scale version of the supply blockage incurred during the COVID-19 pandemic, a Canadian freight rail shutdown could hinder economic activity of businesses that import raw materials, rising prices for consumers who encounter shortages for some products.

“The producers will probably absorb some of those price increases in the short term, but eventually they could get passed on to consumers,” Kyle Handley, a professor of economics at the University of California, San Diego, told ABC News.

Over the coming weeks, a shutdown could slow gross domestic product growth and cause layoffs at directly impacted firms, such as auto factories, Jeff Macher, a professor of strategy and economics at Georgetown University’s Center for Business and Public Policy, told ABC News.

“A prolonged stoppage could lead to a certain amount of job losses,” Macher said.

The potential supply disruption could arrive at a vulnerable period for the U.S. economy. Growth is cooling but remains solid. Price increases have slowed dramatically but remain higher than the Federal Reserve’s target level.

For now, questions remain over the duration and scale of the U.S. economic fallout, experts said.

“If the stoppage ends within a week or so, it’ll have no effect on U.S. GDP,” Macher said. “If it extends beyond that, then it could bleed into and impact the U.S.”

ABC News’ Aaron Katersky and Zunaira Zaki contributed reporting.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Hawaiian Airlines and Alaska Airlines are one step closer to closing a $1.9 billion deal that would mark the largest consolidation of any U.S. carrier since 2016.

The deadline for regulatory review by the Department of Justice expired earlier this week without any interference, meaning the two companies have cleared the first major hurdle for their merger plans, which were first announced last December.

In order for the deal to move forward, it will need to pass scrutiny from the U.S. Department of Transportation — a customary closing condition — which includes an interim exemption application.

The Justice Department has already been skeptical of airline partnerships and most recently blocked the proposed merger of JetBlue and Spirit.

While it’s not immediately clear how long the approvals process could take, experts have said it can take years for the behind-the-scenes logistics to settle into place.

Pending the remaining approvals, this acquisition would be the second for Alaska Airlines within the past decade, after it beat out JetBlue in a bidding war for Virgin America.

Under the proposed Hawaiian-Alaska merger, both airlines would remain intact and continue to operate under their current names.

Alaska Airlines statement on next steps for Hawaiian merger

“This is a significant milestone in the process to join our airlines,” the SeaTac, Washington-based carrier announced in a statement this week. “During the HSR [Hart–Scott–Rodino Antitrust Improvements Act] time period, Alaska worked closely with the Hawai’i Attorney General to reinforce and expand upon our commitments for the future of Hawaiian Airlines and to Hawai’i consumers. These include plans to maintain the Hawaiian Airlines brand and local jobs and continue providing strong service between, to, and from the Islands.”

The airline also said that following the potential next steps, “we will complete work to close the transaction, and proceed with integrating the two companies, welcoming Hawaiian Airlines guests and employees into Alaska Air Group, and expanding benefits and choice for consumers throughout Hawai’i, the Asia-Pacific region, continental United States and globally.”

Governor of Hawaii comments on possible airline merger

After the latest details on the merger were released, Hawaii Gov. Josh Green said in a statement that he and his staff have worked with Alaska Airlines leadership over the past few months “to carefully review the potential impacts of a consolidation, and we insisted that any changes expand travel options for our residents and preserve union jobs.”

“Alaska has reinforced commitments to our state and will maintain the Hawaiian Airlines brand, preserve and grow union jobs in our Hawai’i, as well as continue to provide crucial passenger and air cargo service to, from, and within the islands,” he said. “The merger will vastly expand the number of destinations throughout North America for Hawai’i residents that can be reached nonstop or one-stop from the islands, and HawaiianMiles members will retain the value of their miles while gaining access to more destinations around the world.”

Green added that he’s “confident” this merger would “offer more travel options for Hawai’i residents and local businesses” and “enhance competition across the U.S. airline industry.”

What a merger of Alaska and Hawaiian Airlines means for travelers

The travel experts at Going.com — formerly Scott’s Cheap Flights — weighed in on the possible deal and what it could potentially mean for customers.

“Competition between airlines is the single biggest cause of cheap flights. A merger between two airlines — whose route maps have a portion of flights that overlap — would result not in more cheap flights for consumers but, to some extent, fewer,” Katy Nastro, a spokesperson for Going, told ABC News.

Additionally, the team of experts believe that certain markets may be affected worse than others.

“The Justice Department did not require concessions, meaning that Alaska could eventually make some cuts on routes that consistently underperform, such as the inter-island routes,” she explained.

There has been no official statement from the airline about when or where any possible changes to routes would take place.

Copyright © 2024, ABC Audio. All rights reserved.

(WASHINGTON) — Vice President Kamala Harris has unveiled a comprehensive agenda focused on cooling inflation, but many economists consider the fight against price increases to be nearly finished.

Inflation stands below 3% for the first time since 2021, U.S. government data earlier this month showed. The Federal Reserve is widely expected to cut interest rates at a meeting in September, suggesting that the central bank could retreat from its yearslong battle to slow prices.

Still, consumer prices have climbed more than 20% over the last three years, demoralizing shoppers and straining household budgets. Inflation continues to top lists of voter concerns.

Economists who spoke with ABC News described current price levels as an unfortunate reality that would be nearly impossible to undo, since an outright lowering of prices typically accompanies economic hardship that would require medicine more painful than the ailment.

However, some economists said Harris’ proposals could reduce prices for some essential goods, like food, while slowing inflation for items such as housing that are still seeing rapid price increases. Other economists said the measures amount to a solution for a problem that no longer exists, saying the tardy legislative fixes could stunt economic activity.

“We can’t unwind prices back to a certain place,” Catherine Pakaluk, a professor of economics at the Busch School of Business at Catholic University, told ABC News.

Since overall prices depend on a worldwide tug of war between supply and demand, general cost reductions would demand a significant economic shock to send that balance askew, Pakaluk added.

“All prices are linked together,” Pakaluk said. “We all have a sense, ‘If only we could reset prices back to where they were three years ago.’ But there’s no mechanism for that.”

In response to ABC News’ request for comment, the Harris campaign pointed to a speech that she delivered on Friday.

“When I am elected president, I will make it a top priority to bring down costs and increase economic security for all Americans. As president, I will take on the high costs that matter most to most Americans, like the cost of food,” Harris said.

“We all know that prices went up during the pandemic when the supply chains shut down and failed, but our supply chains have now improved and prices are still too high,” Harris added.

While acknowledging the difficulty of achieving overall price decreases, some economists noted a potential for price reductions in certain industries, especially the food and grocery sector targeted by Harris’ proposals.

Harris points to the market power of large corporations in the grocery industry as a key cause of rapid price increases for food, saying companies use their outsized role to raise prices without fear of a competitor offering a comparable product at a more affordable price. Consumers, the Harris campaign says, are left with nowhere to turn.

“Extreme consolidation in the food industry has led to higher prices that account for a large part of higher grocery bills,” the campaign said in a statement on Friday.

Dan Scheitrum, a professor of agribusiness at California Polytechnic State University, San Luis Obispo, said Harris’ plan to crack down on potential anti-competitive practices within the food sector could end up lowering prices for some household staples.

“If price fixing is taking place and it gets addressed, I expect that could undo some of the price increases,” Scheitrum said.

While general inflation has moderated, price increases for housing remain highly elevated. Housing prices climbed 5.1% over the year ending in July, soaring at a pace more than twice as fast as the overall inflation rate.

The Harris campaign proposed restoring affordability through a combination of boosting home supply and easing the price pressures for some homebuyers.

Economists who spoke with ABC News largely applauded Harris’ efforts to boost the housing supply but offered mixed opinions about a potential $25,000 subsidy for first-time homebuyers.

“We as economists commonly disagree, but the question of housing supply is something we kind of all agree about,” Pakaluk said

On the other hand, a $25,000 subsidy for some homebuyers could allow them to increase their bids and send prices higher, Pakaluk added. “It might have the opposite effect on price than they want,” Pakaluk said.

Peter Morici, a professor emeritus at the University of Maryland’s School of Business, warned against the economic consequences of any attempt to cool prices when they’re well on their way to normal levels.

“The price increases that we’ve seen are very difficult to reverse,” Morici told ABC News. “It can’t be solved, except with draconian measures.”

Other economists indicated that a wide-ranging effort to address inflation could play an important preventative role, safeguarding the economy against a price spike in the event of an emergency, such as another pandemic.

“Even if you’re back to being on budget rather than on edge, you’re still scared. You’ve had a really terrible experience from no fault of your own,” Isabella Weber, an economics professor at the University of Massachusetts Amherst who studies price controls, told ABC News.

“We have to prepare for the next shock,” Weber added.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Trump Media & Technology Group’s stock dropped more than 11% this week, suffering from sour sentiment after a weak earnings report and the return of former President Donald Trump to rival social media platform X.

The company’s woes stretch back to the middle of last month. Since then, the stock for the Truth Social parent company has plummeted by about 43%. Yet as the stock continues to slide, some of its investors remain unfazed, telling ABC News they are optimistic about the company’s financial outlook, or intend to stand by it as an expression of their support for Trump.

Todd Schlanger, an interior designer from West Palm Beach, told ABC News that he purchased shares in Trump Media because he supports Trump’s politics and believes in his businesses.

“I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech,” said Schlanger, who said he owns approximately a thousand shares of the company.

A frequent user of the social media platform, Schlanger boasted about the user interface – “It’s like a combination of X and Facebook” – and said he looked forward to the expansion of the company’s streaming services.

“I think it’s going to be as strong as Facebook or Twitter,” said Schlanger.

Other investors said they primarily saw Truth Social as a way to support the former president.

“I did it more as a statement to President Trump and to show support at the time. I wasn’t really looking to make a lot of money,” said Teri Lynn Roberson, who bought five shares of the company as the company neared its peak stock price after going public in March.

Roberson said she was unconcerned about the stock’s poor performance or the impact of Trump’s potential return to rival X, the latter of which she said could benefit Trump’s presidential campaign by expanding his audience of supporters beyond the “echo chamber” of Truth Social.

“I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said.

Truth Social’s stock performance holds significant financial implications for the former president, who owns a 65% stake in the company. Truth Social shares make up a large portion of Trump’s overall net worth, according to Fortune.

Truth Social did not immediately respond to ABC News’ request for comment.

Truth Social’s recent losses

An earnings report released last Friday showed, Truth Social had lost more than $16 million over a three-month period ending in June. The company brought in revenue of about $836,000, down 30% from $1.2 million a year earlier, the earnings report showed.

In a statement released following the earnings report, Truth Social CEO Devin Nunes applauded the company’s balance sheet, including $344 million in cash and no debt.

“From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing,” Nunes said.

Investors, however, reacted poorly to the quarterly report when trading opened on Monday, and the stock price continued to drop when Trump then posted on rival X for the first time in roughly a year. It marked just his second post on the platform since January 2021, when the company suspended Trump in the aftermath of the Jan. 6 attack on the Capitol “due to the risk of further incitement to violence.”

After tech billionaire Elon Musk purchased what was then known as Twitter in Oct. 2022, he lifted the ban the following month. On Monday, Musk spoke with Trump in an interview that was broadcast on the platform.

While the former president is bound by an exclusivity agreement with Trump Media & Technology Group to post personal content first to Truth Social, Trump can make “politically-related” posts on other social media sites, according to the agreement. Other than a series of political posts on Monday, Trump has refrained from using social media sites beyond Truth Social.

Michael Rogers, who owns a masonry company in Asheville, North Carolina, said he first bought shares of Truth Social in 2022, before the company went public. Since then, Rogers has acquired more than 10,000 shares, he said.

Rogers, who said he plans to vote for Trump in November, bought the shares as both an expression of political support and as a sign of confidence in the company’s financial outlook, he said. “It’s a 50-50 balance of the reasons I started investing in Truth Social,” Rogers told ABC News.

Trump’s return to X this week did not bother Rogers, since the platform allows Trump to reach a larger audience, Rogers said. The weak earnings report last Friday did concern him, however.

“The revenue just isn’t there,” Rogers said. “That’s something the company has to work on.”

Despite the stock’s recent struggles, Rogers said he retains confidence in the business.

“I’m in it for the long haul,” Rogers said.

Analyst outlook

Analysts described the performance of Truth Social as the characteristic fluctuation of a so-called “meme stock.” The term – made famous by pandemic-era examples such as GameStop and AMC – indicates a company that largely appeals to investors on the basis of ideology, rather than financial outlook.

Truth Social’s value climbed about 30% in the immediate aftermath of an assassination attempt against Trump in July, reaching a price of $40 a share. That figure marked the highest level for the stock in more than a month, but shares still stood well below a peak of about $66.

The share price now stands at about $23, amounting to a drop of nearly two-thirds from its peak.

Tyler Richey, an analyst at Sevens Report Research, said the decline of the stock price in recent weeks has coincided with the emergence of Vice President Kamala Harris as the Democratic presidential nominee. A surge for Harris in voter surveys has damaged perception of Trump’s election prospects, Richey told ABC News.

“The stock has ebbed and flowed with sentiment toward former president Trump,” Richey said. “It doesn’t help that Trump was pretty much exclusively using Truth Social and decided to join Elon Musk with X.”

Jay Ritter, a professor of finance at the University of Florida, said Truth Social’s poor financial performance leaves it vulnerable to negative news and darkens its long-term outlook.

“For a long time, I’ve been saying that the stock will be volatile but that the long-run trend will be down,” Ritter said.

“What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter added, noting by contrast that it makes sense for die-hard Trump supporters to back the stock.

“I don’t think it’s irrational for people to do that,” Ritter said. “On the other hand, I generally don’t go out of my way to further line the pockets of billionaires.”

Trump supporters rushing to purchase shares in Truth Social provided other investors an opportunity to cash in on the company’s tumultuous stock price. With anticipation building ahead of Trump Media & Technology Group’s merger in March with Digital World Acquisition Corporation, Mitchell Standley exercised a few call options – contracts that allow an investor to buy a stock at a predetermined price – to make a 1,500% return on his investment.

“It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.”

Since March, Standley has avoided the company, he said, attributing its volatile stock performance to a lack of business fundamentals.

“I made my money and am staying away from it,” Standley said.

Copyright © 2024, ABC Audio. All rights reserved.

(WASHINGTON) — On the road to the 2024 presidential election, Vice President Kamala Harris and former President Donald Trump’s views on electric vehicles (EVs) have offered two different visions of America’s automotive future.

Harris has been vocally supportive of the administration’s push to expand access and manufacturing of EVs in the U.S., while Trump has pledged to undo those policies.

Earlier this week, however, Trump appeared to soften his staunch anti-EV views when he spoke to Tesla CEO Elon Musk on X.

“You do make a great product,” Trump said to Musk, referring to Tesla vehicles. “That doesn’t mean everybody should have an electric car, but these are minor details … your product is incredible.”

Before his conversation with Musk, the former president had maintained that electric vehicle production and sustainable energy sources are bad for the economy. He has vowed on “day one” to repeal the Biden-Harris administration’s sustainable energy policies in favor of domestic oil production.

“I will end the electric-vehicle mandate on day one, thereby saving the U.S. auto industry from complete obliteration,” Trump told the audience at the Republican National Convention in July.

Biden-Harris pro-EV policies

While there is no federal electric vehicle mandate, the Biden-Harris administration has issued regulations calling on automakers to reduce emissions produced by their fleets, including by producing more electric and hybrid vehicles.

The administration’s 2022 Inflation Reduction Act – which Harris cast the tie-breaking vote to pass in Congress – marks the largest climate investment in United States history.

The legislation aims to reduce U.S. carbon emissions by 40% by 2030 and channels $370 billion into wind, solar, battery and electric vehicle production over the next 10 years.

Through the Inflation Reduction Act, candidate Harris has advocated for substantial investments in domestic electric vehicle car manufacturing, including funding for charging stations, and offering consumer incentives to buy EVs.

In May, Harris traveled to Detroit, Michigan, where she announced $100 million for small- and medium-sized auto manufacturers to upgrade their facilities for EV production.

“This investment will help to keep our auto supply chains here in America,” Harris said then, “which strengthens America’s economy overall and will keep those jobs here in Detroit.”

If elected, Harris is expected to continue advocating for eco-friendly fuel and emissions standards, increase funding for research and development for EV technology, and focus on leveraging EV industry growth to create more jobs.

An ABC News request to the Harris campaign for comment about their EV plans was not immediately returned.

EV sales impact on economy, climate

More Americans are starting to embrace EVs. Sales of electric cars and trucks last year totaled 1.4 million in 2023, up from 1 million in 2022, U.S. Energy Secretary Jennifer Granholm announced in January.

“The progress that’s been made is phenomenal,” Albert Gore III, executive director of the nonprofit coalition Zero Emission Transportation Association, told ABC News. “The United States has been a leader in electric vehicle manufacturing and also has really been a leader in a lot of good policymaking with regard to investment in every part of the EV and battery supply chain.”

Gore also noted that electric vehicles can have a significant impact on the economy, saying, “There’s a huge amount of opportunity.”

The industrial Midwest, Southwest and Southeast already have seen investment and job opportunities in the production of minerals and battery components for EVs. Georgia, Nevada, Texas, Ohio and Kansas have grown as domestic hubs for battery manufacturing, while Georgia, Tennessee, Ohio and Arizona have risen as leaders in EV manufacturing.

“So a lot of really exciting economic opportunity in these places, and oftentimes it’s multiple parts of the supply chain,” Gore added.

Last month, the Biden administration awarded nearly $2 billion in grants to General Motors, Stellantis and other automakers to expand electric vehicle manufacturing in eight states, including key election swing states Michigan, Pennsylvania and Georgia.

“It’s really important that we create a transportation system where our cars are made by union workers with good jobs, which we’re starting to do courtesy of the Biden-Harris Inflation Reduction Act,” Craig Segall, former deputy executive officer of the California Air Resources Board and current vice president of Evergreen Action, a nonprofit climate change advocacy group, told ABC News.

“We must stabilize the climate and America should lead that effort,” Segall added.

Segall believes a Harris-Walz White House promises a continuation of the Biden administration’s push for EV manufacturing, and a chance to further those goals.

“When I think about what we could have at the end of her first term, I think we’re talking about much clearer skies and much healthier communities,” Segall said.

Because they have zero emissions, electric vehicles typically have a smaller carbon footprint than gasoline cars, even when accounting for the electricity used for charging, according to the Environmental Protection Agency.

Obstacles to EV sales in the U.S.

Despite the push by carmakers and government officials, the EV market in the U.S. is still small compared to sales of gas-powered vehicles. Of the roughly 286 million cars on the road in 2023, just 9.3% were electric vehicles, according to Experian Automotive’s Market Trends report.

“The EV market is currently going through a bit of a rough patch,” Jessica Caldwell, head of insights at Edmunds, told ABC News.

Caldwell explained that consumers’ hesitancy to buy electric vehicles largely surrounds the charging infrastructure, range, prices, and battery longevity.

“In order for its buyer base to evolve from early adopters to mainstream consumers, EVs will likely rely on continued government support to hit volume sales targets across all brands,” Caldwell said. “Even with the enthusiastic backing of a fresh presidential administration, enacting such a dramatic shift in the vehicle market is a massive undertaking and the politically charged rhetoric surrounding EVs will likely place extra pressure on any new policy decisions.”

In order to combat consumer hesitancy, electric vehicles need to be offered at every price range, according to Alan Jenn, an assistant professor at the UC Davis Institute of Transportation Studies.

“In order to see EVs get even more mainstream than they are now, we want to see a larger release of vehicles in segments that are more affordable,” Jenn told ABC News.

The average transaction price for electric cars in June 2024 was $56,371 versus gas-powered vehicles at $48,644, according to Kelley Blue Book.

Segall believes a Harris presidency could bring federal investments and further tax credits to lower the costs of EVs.

Currently, the government offers tax credits up to $7,500 for eligible new electric vehicles and up to $4,000 for eligible used electric vehicles, according to the Department of Energy.

“They’re really well placed to stop paying for gas forever right now, and that’s only going to be a better story,” Segall said.

Copyright © 2024, ABC Audio. All rights reserved.

(RALEIGH, N.C.) — When Vice President Kamala Harris unveils her economic policy proposals in Raleigh, North Carolina, on Friday, it will include a proposal to provide up to $25,000 in down payment support for first-time homebuyers, according to a campaign official.

The campaign is vowing that during its first term, the Harris-Walz administration would provide working families who have paid their rent on time for two years and are buying their first home up to $25,000 in down-payment assistance, with more generous support for first-generation homeowners.

In a preview statement obtained by ABC News, the campaign says, “Many Americans work hard at their jobs, save, and pay their rent on time month after month. But they can’t save enough after paying their rent and other bills to save for a down payment — denying them a shot at owning a home and building wealth. As the Harris-Walz plan starts to expand the supply of entry-level homes, they will, during their first term, provide working families who have paid their rent on time for two years and are buying their first home up to $25,000 in down-payment assistance, with more generous support for first-generation homeowners.”

“The Biden-Harris administration proposed providing $25,000 in downpayment assistance for 400,000 first-generation home buyers — or homebuyers whose parents don’t own a home — and a $10,000 tax credit for first-time home buyers. This plan will significantly simplify and expand the reach of down-payment assistance, allowing over 1 million first time-buyers per year – including first-generation home buyers – to get the funds they need to buy a house when they are ready to buy it,” the Harris campaign said.

Prior to Harris’ speech on Friday, an official also released more details on the housing component of Vice President Harris’ lower costs plan to “help end the housing supply shortage” that includes calling for the construction of 3 million new housing units and stopping Wall Street investors from buying homes in bulk.

Officials said she will propose a new $40 billion innovation fund — doubling that of the $20 billion Biden-Harris proposed innovation fund — that will be used for local governments to fund local solutions to build housing and support “innovative” methods of construction financing. It will also allow for certain federal lands to be eligible to be repurposed for new housing developments.

“Harris will work in partnership with workers and the private sector to build the housing the country needs, both to rent and to buy, and take down barriers that stand in the way of building new housing, including at the state and local level. This will make rents and mortgages cheaper,” according to the campaign.

Harris is also proposing two acts, the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act and the Stop Predatory Investing Act to help bring down the cost of rent. These acts aim to take on “corporate and major landlords” to stop them from “jacking” up prices.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Slow and steady may win the race for a tortoise vs. a hare, according to Aesop’s Fables. However, in reality, this turn of phrase does not ring true when applied to the gradual climb of consumer prices, especially with the latest exorbitant cost increases on items like eggs.

Egg prices soar nearly 20% since last year

The latest data from the Bureau of Labor Statistics showed prices on some household staples rose slightly slower than the overall rate of inflation, but food prices once again spiked upwards in July by 2.2% compared to last year.

Despite a dip in prices for rice, flour, and fish, the cost of a carton of eggs has been steadily on the rise, with a 19% increase from July 2023.

Since June, the price of eggs shot up 5.5% month-over-month.

The consistent increases have been attributed to a combination of factors, largely including a supply-driven price spike as a result of avian flu outbreaks that have wreaked havoc on poultry farms nationwide.

Earlier this spring, with a resurgence of highly pathogenic avian influenza (HPAI) in egg-laying flocks, the United States Department of Agriculture’s Animal and Plant Health Inspection Service reported that 13.64 million table egg-laying hens had been lost to the disease since the beginning of November.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Slow and steady may win the race for a tortoise vs. a hare, according to Aesop’s Fables. However, in reality, this turn of phrase does not ring true when applied to the gradual climb of consumer prices, especially with the latest exorbitant cost increases on items like eggs.

Egg prices soar nearly 20% since last year

The latest data from the Bureau of Labor Statistics showed prices on some household staples rose slightly slower than the overall rate of inflation, but food prices once again spiked upwards in July by 2.2% compared to last year.

Despite a dip in prices for rice, flour, and fish, the cost of a carton of eggs has been steadily on the rise, with a 19% increase from July 2023.

Since June, the price of eggs shot up 5.5% month-over-month.

The consistent increases have been attributed to a combination of factors, largely including a supply-driven price spike as a result of avian flu outbreaks that have wreaked havoc on poultry farms nationwide.

Earlier this spring, with a resurgence of highly pathogenic avian influenza (HPAI) in egg-laying flocks, the United States Department of Agriculture’s Animal and Plant Health Inspection Service reported that 13.64 million table egg-laying hens had been lost to the disease since the beginning of November.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — As more consumers reach for generic labels to save on money groceries, M&M’s maker Mars is spending big bucks on a new acquisition to gain even more shelf space in the snack aisle.

The candy bar giant, known for brands such as Snickers and Twix, is gearing up to purchase global snacking company Kellanova in an all-cash deal valued at $35.9 billion, which will add well-known packaged foods like Eggo, Pop-Tarts and Pringles to its portfolio.

The family-owned, Virginia-based company announced the deal with the multinational food manufacturer — formerly known as the Kellogg Company — in joint press releases on Wednesday, marking one of the largest CPG mergers in years.

“Mars will acquire all outstanding equity of Kellanova for $83.50 per share in cash,” the release stated. “All of Kellanova’s brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast are included in the transaction.”

The deal is expected to close in the first half of next year. Upon completion, Kellanova will become part of Mars Snacking, which is led by Global President Andrew Clarke.

Kellanova, which was spun off from the Kellogg Co. last fall when it officially split up into two different companies, also includes other popular consumer brands such as Cheez-Its, Rice Krispies Treats, MorningStar Farms, NutriGrain and RXBAR. The Chicago-based company reported more than $13 billion in net sales in 2023.

Privately owned Mars, which also has a pet food and veterinary care arm in addition to its confectionery business, previously expanded its scope beyond sweets when it bought healthy snack brand KIND North America for $5 billion in 2020.

Poul Weihrauch, CEO of Mars, Inc. called the forthcoming deal “a substantial opportunity for Mars to further develop a sustainable snacking business that is fit for the future.”

“We will honor the heritage and innovation behind Kellanova’s incredible snacking and food brands while combining our respective strengths to deliver more choice and innovation to consumers and customers,” his statement continued.

Steve Cahillane, chairman, president and CEO of Kellanova, added that the “historic combination” of companies was both a “cultural and strategic fit.”

Boasting the “attractive purchase price” of the all-cash transaction, Cahillane said the move “creates new and exciting opportunities for our employees, customers, and suppliers,” stating he’s “confident Mars is a natural home for the Kellanova brands and employees.”

The sweet-meets-salty food merger resembles a similar strategy from competitor The Hershey Company, which added SkinnyPop with the $1.6 billion buyout of Amplify Snack Brands Inc. in 2017, followed by Dot’s Pretzels in 2021.

Copyright © 2024, ABC Audio. All rights reserved.