‘We have to kill diesel’: China’s e-truck rival to Tesla seeks $2bn US Spac deal

{"text":[[{"start":12,"text":"A Chinese electric lorry start-up taking on Tesla’s new truck plans to list its shares in the US this year through a special purpose vehicle at an enterprise value of at least $2bn."}],[{"start":23,"text":"Windrose Electric, which began exporting its heavy-duty electric truck to the US from China this year, aims to raise more than $200mn through a Spac merger by the end of the year."}],[{"start":33.08,"text":"“We would like to dominate the electrification of the truck market,” Wen Han, chief executive of Windrose, told the FT. “We have to kill diesel. That is the enemy.”"}],[{"start":43.66,"text":"He added that US tariffs were “not high enough” to keep it out of America due to the start-up’s lower manufacturing costs and faster technology innovation. “Tariffs never work,” Han said in an interview. “What tariffs always do is hurt the inefficient and generally incumbent players more.”"}],[{"start":59.8,"text":"Windrose paid a 64 per cent duty on the first China-made electric truck it imported into the US in April as well as additional tariffs on Chinese components. The company recently received some refunds for duties the Supreme Court has ruled illegal."}],[{"start":null,"text":"

"}],[{"start":73.44,"text":"Even with tariffs included, Windrose’s truck is cheaper than Tesla’s Semi Truck on a per-mile basis. Its Global E700, with a range of 416 miles, is priced at $285,000, compared with $260,000 for the 325-mile range Tesla Semi. Tesla’s 500-mile range model costs $290,000."}],[{"start":96.28,"text":"The electric transition has been slow in the global truck market. But a jump in diesel prices due to the Middle East conflict and the long-awaited launch of Tesla’s truck have boosted interest in battery-powered lorries."}],[{"start":107.84,"text":"Even before the war, US sales of electric trucks increased 25 per cent last year to 17,000 units from a year before, according to the International Energy Agency. Still, electric models account for less than 5 per cent of the market in both the US and Europe, although in China the share is now 37 per cent."}],[{"start":127.04,"text":"Windrose was founded in 2022 and is headquartered in Belgium but employs most of its 113 staff in China. It has deployed 36 trucks in Europe, North America, South America and Asia and plans to produce 1,000 units for delivery to the four regions by the end of the year."}],[{"start":145.68,"text":"Despite its bold claims, Windrose has little history even in its home market and is a minnow compared with bigger Chinese rivals such as Sany."}],[{"start":154.4,"text":"In the US market, the company has so far imported two trucks into the country with three more on the way in the next few weeks."}],[{"start":161.48,"text":"BYD, which assembles heavy-duty trucks at a plant in Lancaster, California, is the only other Chinese player operating with cumulative sales of over 100 electric lorries. Tesla’s Nevada plant, meanwhile, has capacity to manufacture 50,000 Tesla Semis and started mass production in late April."}],[{"start":null,"text":""}],[{"start":181,"text":"Rudy Diaz, chief executive of Hight Logistics, which operates a fleet of diesel and electric lorries out of Long Beach in southern California, has ordered 15 Tesla Semis."}],[{"start":191.06,"text":"He believes Tesla trucks have a superior range, performance and comfort compared with the more expensive offerings from established players and says he is not interested in Windrose. “It hasn’t been around long enough to prove itself that it’s a company that I would like to trust,” Diaz said."}],[{"start":207.4,"text":"Windrose has also faced allegations of unpaid wages from former employees. Han acknowledged that the firm had financial pressures and “nearly died as a company” last year but said the issue was resolved after he raised money from selling trucks."}],[{"start":221.66,"text":"The start-up says it cuts significant costs by finding local partners to assemble vehicles instead of building its own plant. It only has one model with a simplified design using fewer than 600 parts compared with about 18,500 for a traditional diesel truck. That allows it to cut development time to two years."}],[{"start":240.98,"text":"In the US, it has partnered with local electric-truck maker Xos Trucks for distribution, sales and aftercare service, while it has partnered with logistics giants in other markets such as Kuehne+Nagel."}],[{"start":252.24,"text":"Simon Smith, chief executive of Voltempo, a Windrose partner that is building the UK’s largest depot charging network for electric lorries, said the Chinese start-up’s innovation was its truck design: “It’s built to be efficient, it’s built for longer range and it’s built for charging speed.”"}],[{"start":268.2,"text":"Additional reporting by Edward White in Shanghai"}],[{"start":278.64,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782889254_1566.mp3"}