The Good, the Bad and the Ugly from LA’s EV Scene

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

The Good, the Bad and the Ugly from LA’s EV Scene

I’ve been on vacation this past week, so of course there’s been a ton of news in the Southern California EV world that I missed. I’m not even supposed to be back online until Tuesday, when I’ll be covering SXSW in Austin, Texas. But so great was the deluge of news that I’ve holed up in a Starbucks off of I-70 to whip up this little recap for you. Here we go.

Rivian

I covered Rivian’s Q4 earnings in last week’s newsletter. The results weren’t particularly pretty, with the company suggesting production guidance of just 50,000 units for 2023, which was below what many analysts had forecasted. But then, on Friday, Rivian employees told Bloomberg, that internally the company was saying it might be able to hit 62,000 units in the fiscal year. Shortly after that, however, Rivian announced that 50,000 vehicles was still the official target and that the larger figure had been taken out of context by employees. The company’s share price has fallen 24% since the earnings call.

But wait there’s more: Rivian had previously announced that it intended to lay off 6% of its workforce, and last week we got some more details about where those cuts will come from. The Palo Alto office is slated to lose 240 workers, and 204 look like they’ll be cut from the Irvine HQ, according to reporting from Carscoops.

But wait there’s even more: Rivian also announced today that it would recall 13,000 of its vehicles for issues related to an issue with the seatbelt that could prevent the passenger airbag from functioning as intended. This won’t be Rivian’s first recall, and it surely won’t be its last. Recalls are common and necessary in the automotive industry, but the news comes at an inopportune time for the EV maker.

Lastly, Rivian announced yesterday that it intends to raise $1.3 billion in cash to help it through the coming scale up phase. As I pointed out in the Q4 earnings article, the company’s current cash burn rate looked a bit too aggressive to bring Rivian into 2026, when the R2 platform is expected to launch and provide a pathway to profitability for the EV hopeful. An additional $1.3 billion helps to narrow that gap.

Vinfast

Some good news from Vinfast, actually. The company has delivered its first cars to US customers. Since its 999 SUVs arrived in the United States back in mid December 2022, the delivery process has been delayed by software issues with the vehicles. Last week, however, Vinfast announced that it had delivered 45 VF8s to customers. When the rest of the shipment will be ready for delivery is still unknown, but hey, it’s something. The news comes just a week after Vinfast cut its advertised lease price for the vehicle by a whopping 50%, which if you’ve been following dot.la’s coverage, brings its price much more in line with its value compared to competitors. Whether it’s enough to sway US consumers to take a risk on a new technology produced by a mostly unknown foreign brand, remains to be seen.

Mullen

On March 1st, Mullen’s top financier, Terren Peizer, was charged with insider trading by the Securities and Exchange Commission. Peizer and Mullen have a long history and Peizer has served as CEO of both Ontrak and Acuitas Holding Group. Back in April 2022, Hindenburg Research highlighted Peizer’s large stake in Mullen (29%), and his numerous ties to finance guys who’d found themselves in prison for various sorts of fraud. Now it seems the SEC is taking a look into Peizer himself. According to reporting by InvestorPlace, the agency has charged Peizer with selling $20 million in Ontrak stock while in possession of “material, nonpublic information (MNPI) concerning the company’s largest customer.” Whoops.

Meanwhile, Mullen announced today that it would showcase two new electric delivery vehicles at the NTEA Work Truck Show that’s ongoing this week. The press release contains images of the same class 1 cargo van that Mullen acquired when it purchased Electric Last Mile Solutions last fall, as well as a Class 3 low-cab forward delivery truck. How or where Mullen plans to make these vehicles at scale, remains unknown. But CEO David Michery said that both vehicles are coming to market later this year. Mullen would likely need to raise huge amounts of capital to bring manufacturing capacity online to deliver any meaningful volume of product, but the company does have multiple factory assets.

Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

🔦 Spotlight

Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

Image Source: Dodgers

💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

Image Source: ChatGPT

🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


🤝 Venture Deals

LA Companies

  • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
LA Venture Funds
  • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
  • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
  • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
  • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

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      Billion-Dollar Milestones and Snapchat’s New Features

      🔦 Spotlight

      Happy Friday Los Angeles!

      This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

      Image Source: Snap

      Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

      Image Source: Liquid Death

      ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

      Image Source: Altruist

      Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

      Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

      Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


      🤝 Venture Deals

      LA Companies

      • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
      LA Venture Funds
      • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
      • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

      LA Exits


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          ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

          🔦 Spotlight

          Happy Friday Los Angeles,

          The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

          The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

          For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

          While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

          The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

          Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

          As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

          For updates or more event information, visit the official Tech Week calendar.


          🤝 Venture Deals

          LA Companies

          • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

          LA Venture Funds
          • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
          • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

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