L.A. Poised for Jobs Jump as Electric Vehicle Industry Surges Across State
Los Angeles County is cementing its position as the nation's center of the electric vehicle industry, where some 118,000 jobs working on everything from car design to better batteries.
The Los Angeles Economic Development Corp. said Monday, in its study on the industry, that L.A. controls 43% of California's massive EV industry. The growth helps the state compete with Michigan in what the LAEDC is calling a "hometown industry."
Looking ahead, economists predict the state's goal to have five million electric vehicles on the road by 2030 will help the state create more jobs. The LAEDC projects the number Californians working in the EV industry will rise from 275,000 in 2018 to 312,000 by 2023.
"There's no other ecosystem like this in the U.S., and we need to protect, support and build good policy to ensure this ecosystem thrives and continues to create great jobs," said Judy Kruger, Senior Director of Industry Development at the LAEDC.
The report, which was funded from a sponsorship by Southern California Edison and others, also highlighted that the jobs pay well. The average annual wage for EV workers hit $80,900 in 2018, well above the average annual wage of $60,400 across all industries.
Though, the region's transition into the modern-day Detroit of the electric vehicle world has not come without risk.
Of the six main EV companies operating in L.A., three of them have filed for bankruptcy protection in recent years: Mid City-based Coda Automotive in 2013, Torrance-based Fisker Automotive in 2013, and Irvine-based Karma Automotive in 2014.
Some formerly failed companies have revitalized themselves and come under new ownership. Karma, for instance, was bought for $150 million by Chinese auto-parts maker Wanxiang Group in 2014, and its Karma Revero GT is expected to hit roads this year.
Data provider Pitchbook said in a report last year that it expects the total market for plug-in hybrid and battery powered electric vehicles to exceed $440 billion in 2025, up from $95 billion through the first half of 2019. This would result in an increase in electric vehicle market penetration to roughly 11% of new car sales in 2025 from about 2% through the first six months of last year. "We expect this to be driven by a continuation in declining battery manufacturing costs increasing affordability," according to the report. "The development of charging infrastructure and the entrance of major automakers into the market will in turn increase consumer awareness and drive electric vehicle adoption."
"Clean energy investments, including electrifying transportation, mean thousands of stable, good-paying jobs across the value chain—from skilled and craft to high-tech and innovation positions—for Southern Californians," said Michael Backstrom, managing director of Energy and Environmental Policy for Southern California Edison.
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LA Tech Updates: Fisker to Go Public; LA Bars, Gyms and Salons Go Dark Again; Apple Gives $400M to Stem Housing Crisis
- LA Bars, Gyms and Salons Go Dark Again
- Fisker set to go public with $2.9b valuation, EV SUV to roll out by 2022
- Apple Allocates $400M to Affordable Housing in California
Southern California Bars, Restaurants, Salons, Gyms, Places of Worship Must Shut Down Indoor Operations Amid Surge in COVID-19 Cases<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQyMDM0Ny9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyOTEyNzMzOX0.iAGyu93QLg4u7of6jR5kB1LcjJs1dH_dlc2ndkknWGs/img.jpg?width=980" id="a7312" class="rm-shortcode" data-rm-shortcode-id="deb62c3b61d59ad6fe2da2d592929dd4" data-rm-shortcode-name="rebelmouse-image" />Image courtesy of Musso & Frank's<p> Bars, gyms, places of worship, salons and offices for non-critical sectors will largely go dark again in Southern California. As coronavirus cases surge, Gov. Gavin Newsom announced a list of new statewide restrictions and targeted closures in 30 counties including Los Angeles. </p><p> Statewide, all bars, dine-in restaurants, wineries, movie theaters, museums, card rooms and entertainment centers must close indoor operations, Newsom said on Monday. </p><p> "This is a new statewide action effective today," he said. </p><p> <span></span>In counties on the state's watch list, which include Los Angeles, Riverside, San Bernardino and Ventura counties, personal care services including salons and barbershops, along with indoor malls and fitness centers must close indoor operations. </p><blockquote class="twitter-tweet">Effective immediately, CA is closing some indoor business operations statewide and additional indoor business operations in counties on <a href="https://twitter.com/CAPublicHealth?ref_src=twsrc%5Etfw">@CAPublicHealth</a> Monitoring List for 3 consecutive days.<br><br>📍Find the updated list of counties here: <a href="https://t.co/snYe5v55Rw">https://t.co/snYe5v55Rw</a> <a href="https://t.co/W3wBJp2ap5">pic.twitter.com/W3wBJp2ap5</a><br>— Office of the Governor of California (@CAgovernor) <a href="https://twitter.com/CAgovernor/status/1282754914821656576?ref_src=twsrc%5Etfw">July 13, 2020</a></blockquote> <script async="" src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><p> Those on the watchlist are among the most populous parts of the state, containing about 80% of Californians. </p><p> Restaurants are still allowed to stay open for outdoor dining and takeout. <br> </p><p> As of Monday, California had more than 329,000 cases and 7,040 deaths. </p>
Fisker Set to Go Public with $2.9b Valuation, EV SUV to Roll Out by 2022<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1MzYxNS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MzAwMzU5MH0.KjTk7UCExD0E7jgdTCxdRO7pR0kI-TbtMYQgsD6_HJw/image.jpg?width=980" id="00531" class="rm-shortcode" data-rm-shortcode-id="d9feb4bf17ba371882a99b14ebfa134a" data-rm-shortcode-name="rebelmouse-image" /><p>Electric car startup Fisker is set to go public through a merger that values the company at $2.9 billion and allows it to begin producing its first vehicle by 2022. </p><p>Los Angeles-based Fisker <a href="https://www.fiskerinc.com/wp-content/uploads/2020/07/Fisker-Press-Release-NYSE-Merger-Apollo-Spartan-Energy-FINAL-Sunday-1530PST-D360-FINAL.pdf" target="_blank">announced the deal </a>with Spartan Energy Acquisition Corp, a special purpose acquisition company backed by private equity firm Apollo Global Management on Monday. It comes as investors look for the next Tesla Inc, which has seen soaring valuation in recent weeks.</p><hr><p>The deal - expected to close by the end of the fourth quarter - will give Fisker more than $1 billion in gross proceeds to jumpstart production of Fisker Ocean, the vision of founder Henrik Fisker, CEO and chariman of the eponymous named startup. The arrangement spotlights the use of special purpose acquisition companies, known as a SPACs. Another SPAC enabled electric-vehicle startup Nikola Corp to go public last month. Nikola shares have soared since their debut. </p><p>The Fisker Ocean, which premiered at the Consumer Electronics Show earlier this year, starts at $37,499 and is being billed as the most sustainable vehicle, replete with a vegan interior and recycled carpet. Reservations for the either purchase or lease start at $250. </p><p>"This vote of confidence from investors, coupled with our exciting progress on the development of our first vehicle, lays out Fisker's path to 2022 and beyond," said Fisker, a one time Aston-Martin designer. <br></p><p>He <a href="https://www.cnbc.com/2020/07/13/ev-startup-fisker-to-go-public-through-merger-with-apollo-backed-firm-at-combined-value-of-2point9-billion.html" target="_blank">told CNBC </a>that the agreement was the best way to get the line of vehicles produced, but said the company does not intend to build its own plant. While the EV market is expected to soar in coming years, startups struggle to find funding for the capital intensive demands of building a car. </p><p>"Our funding, product plans and brand development actions are on course," Fisker said in the announcement. "Prototype vehicles are expected to start durability testing by the end of this year, and we continue to make significant progress on the development of our sales and service proposition."</p><p>Fisker's previous venture, Fisker Automotive, fell into bankruptcy in 2013 and was bought by a Chinese group that rebranded it Karma. That company, which has been struggling after several layoff rounds and restructuring, <a href="https://dot.la/karma-car-2646367624.html" data-linked-post="2646367624" target="_blank">last week secured $100 million from investors</a>. It hopes to use that to raise a total of $300 million and roll out a line of electric vehicles.<br></p>
Apple Allocates $400M to Stem California's Housing Crisis<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQ1Mzk5My9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTU5NTcxMzA4NX0.K86VfE92hD0CjisMGk5r9Uc-uVxIrfDtuG4pHn1wbb0/image.jpg?width=980" id="9b774" class="rm-shortcode" data-rm-shortcode-id="f9eea1ac10a1579d146be0552a48fec0" data-rm-shortcode-name="rebelmouse-image" />white and brown wooden house during night timePhoto by Carl Nenzen Loven on Unsplash<p>Apple announced today that it has allocated its first $400 million toward addressing California's housing crisis. The Silicon Valley giant had said last November it would commit $2.5 billion to the effort over multiple years. </p><p>Apple first partnered with Housing Trust Silicon Valley in hopes of bringing affordable housing and mortgage assistance to the Bay Area. Now, they're expanding their partnership to California House Finance Agency (CalHFA), a state agency that supports renters and homebuyers in two ways: Their single family division allows families to apply for loans and work with loan officers directly to tailor a plan to their income. Their multifamily division helps housing developers apply for loans to create more affordable housing.</p><p>The funding is heavily concentrated around the Silicon Valley and the Bay Area, but cities statewide will be able to apply for their housing assistance in areas throughout the state where the company is present, including Culver City.</p><p>"Affordable housing means stability and dignity, opportunity and pride. When these things fall out of reach for too many, we know the course we are on is unsustainable, and Apple is committed to being part of the solution," said Tim Cook, Apple's CEO, in a press release. </p><p>The company is dividing its financial assistance to have the broadest possible impact: $1 billion for an affordable housing investment fund, $1 billion for first-time homebuyer mortgage assistance fund, $300 million Apple-owned land for affordable housing, $150 million Bay Area housing and $50 million to support vulnerable populations.</p><p>The low-cost housing efforts will roll out over the next five years across the Bay Area, but two of the four programs are already underway.</p>
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