Tesla’s (TSLA) Q2 2019 earnings call: Here are Wall Street’s estimates


Tesla (NASDAQ:TSLA) is poised to hold its second-quarter earnings call after the markets close on Wednesday. With the electric car maker exceeding expectations on its vehicle production and deliveries, all eyes are now on the company as it tries to return to profitability, which it was able to achieve in the third and fourth quarter of 2018.

Bill Selesky, an analyst with Argus Research, stated that the story of Tesla’s second-quarter immediately changed when it reported its production and delivery figures, which exceeded expectations. “We are still hearing that demand trends bode well for Tesla. What remains to be seen is whether Tesla will rein in its costs and expenses and improve its margins,” he said.

Garrett Nelson, an analyst with CFRA Research, noted that investors would likely be focused on whether the company will keep its initial forecast of selling 360,000-400,000 vehicles in 2019. “The ability of the stock to move higher will really depend on the (sales) guidance. We are still skeptical that they will hit that goal,” the CFRA analyst stated.

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Overall, analysts polled by FactSet expect Tesla to report an adjusted quarterly loss of $0.39 per share, a notable improvement over the $3.06 loss the company reported in Q2 2018. Wall Street also expects Tesla to return to non-GAAP profitability by the fourth quarter.

Estimize, a crowdsourcing platform that aggregates estimates from Wall Street analysts, buy-side analysts, company executives, fund managers, academics and others, has noted that it expects Tesla to report an adjusted loss of $0.25 per share.

As for revenue, FactSet expects Tesla to report sales of $6.5 billion in the second quarter, an improvement over the $4 billion the company reported in Q2 2018 and the $4.5 billion in the first quarter. Estimize, for its part, expects Tesla to report sales of $6.6 billion.

Tesla has been on what appears to be a path towards recovery in July. TSLA shares have recovered 14% this month, following a 21% recovery in June. Due to the steep drop in the electric car maker’s shares following the first quarter, Tesla remains down 23% for 2019. This compares unfavorably with the S&P 500 index and the Dow Jones Industrial Average, which have gained 19% and 17%, respectively.

Selesky’s statement about the Tesla story changing with the results of the second-quarter vehicle production and delivery report mirrors the sentiments of some of the company’s supporters in Wall Street. In a recent note, for example, Baird analyst Ben Kallo stated that Tesla’s further execution, starting with its second-quarter earnings report, will “help restore credibility and create a challenging short environment” despite the “overly negative” narrative surrounding the company.

Even Barclays analyst Brian Johnson, a Tesla bear, has issued a note stating that he sees the electric car maker heading to a nearly profitable Q2 earnings report. “Increasing 2Q estimates as TSLA did indeed ‘move the metal,’” Johnson wrote.

As of writing, Tesla stock is trading +0.84% at $260.36 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla’s (TSLA) Q2 2019 earnings call: Here are Wall Street’s estimates


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Tesla’s Q2 2019 earnings: A look back at TSLA’s journey from Q2 2018 to the present


Tesla’s (NASDAQ:TSLA) second-quarter earnings report on Wednesday is poised to be a pivotal point for the electric car maker. While the importance of Q2 2019’s earnings cannot be emphasized enough, it is pertinent to note that just a year ago in Q2 2018, things were a lot different for Tesla. Things were, for lack of a batter term, a make or break for the company. 

Tesla was at a much different place in the second quarter of 2018. Prior to Q2 2018, Tesla had failed to meet every Model 3 production forecast that it has announced. Q2 2018 already had an adjusted production target of producing 5,000 Model 3 per week, but the task had proven to be more difficult than expected. Even Q1 2018’s conservative goal, producing 2,500 Model 3 per week, was not met by the end of March 2018. 

Tesla dug deep in the second quarter, breaking convention and building GA4 in the Fremont factory’s grounds. The rapid buildout only took a few weeks, and it involved CEO Elon Musk doing manual work with other Tesla employees in an attempt to set up the tent-based production line. Apart from this, Tesla also decided to fly in six airplanes’ worth of robots from Europe as part of an initiative to raise Model 3 production numbers. These measures ultimately allowed Tesla to produce 5,000 units of the electric sedan by the end of the second quarter. 

Tesla’s workers on the GA4, the company’s Model 3 line built inside a sprung structure. | Image: CBS/YouTube]
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The next two quarters following Q2 2018 will see Tesla’s challenges transition from what Elon Musk described as “production hell” to “delivery logistics hell.” Together with the launch of the Model 3 Performance and the Dual Motor AWD variant, Tesla’s efforts ultimately resulted in the company reaching profitability in both the third and fourth quarter. Vehicle delivery numbers also reached record levels, hitting 90,000 in Q4 2019. 

Tesla did have its own set of challenges in this period, and a notable part of it was centered on CEO Elon Musk. The CEO ended up in several Twitter controversies over the past 12 months, from his rows with journalists that seemingly held notable anti-Tesla biases, to his short-lived attempt at taking Tesla private at $420 per share, to his troubles with the Security and Exchange Commission, which resulted in his departure from Tesla’s Chairman position.  

Amidst all these challenges, Tesla has expanded its presence in the electric vehicle market. The company has revealed the Model Y, and Tesla has also taken the wraps off its custom Hardware 3 computer, which will be a crucial component of its future Full Self-Driving strategy. The company has also started rolling out improvements to the Model S and X, which are expected to herald even more updates to the flagship vehicles. 

Elon Musk at Tesla’s Autonomy Day FSD presentation. | Image: Tesla

In the weeks leading up to Tesla’s release of its Q2 2019 vehicle production and delivery figures, TSLA stock was battered as analyst after analyst from Wall Street expressed reservations about the allegedly declining demand for the company’s vehicles. Yet, following the release of the company’s record-setting numbers, sentiments among TSLA investors have shifted for the better. Tesla has so far been on a path towards recovery in July, recovering around 14% to date following another 21% in June. 

Tesla set records in Q2 2019 by producing a total of 87,048 vehicles and delivering approximately 95,200, both in the United States and in other territories such as Europe and China. This quarter’s feat was a blow to the pervading bear thesis insisting that demand for the company’s vehicles is declining. With such strong results, Wall Street is currently expecting Tesla to report an adjusted quarterly loss of $0.39 per share

As of writing, Tesla stock is trading at +0.60% at $257.21 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla’s Q2 2019 earnings: A look back at TSLA’s journey from Q2 2018 to the present


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Ford teases upcoming F-150 electric pickup by towing 1.25 million pounds of cargo


Back in January, Jim Farley, Ford’s president of global markets, made a blockbuster announcement that caused ripples in the American auto industry. During a presentation at the Deutsche Bank Global Automotive Conference in the MGM Grand in Detroit, Farley boldly stated that the F-150, one of the company’s most successful vehicles to date and arguably its biggest cash cow, was going electric. 

The electric F-150 won’t be a half-step either. There will be a hybrid version of the truck, but there will be one that uses absolutely no fossil fuel at all. The idea surprised many of Detroit’s veterans, especially considering the reputation and pedigree of the F-150 as America’s most iconic workhorse. After all, what type of vehicle will an all-electric F-150 be? 

If a recently-released promotional video is any indication, the all-electric F-150 will be everything that it’s fossil fuel-powered predecessors are, and more. In a demonstration, a video of which was uploaded on YouTube, the Detroit-based carmaker showcased how much cargo its upcoming battery-electric truck could actually tow. As it turns out, the figure lies somewhere between zero and 1.25 million pounds. 

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To accomplish this feat, Ford brought over its electric pickup truck prototype with chief engineer Linda Zhang, who met with a group of avid F-150 owners. The engineer, after dramatically unveiling the prototype as an all-electric vehicle, proceeded to have the truck hooked up to 10 double-decker rail cars. After pulling the million-pound load for 1,000 feet, the team repeated the demonstration, this time adding an extra 42 gas-burning F-150s in the rail cars. Zhang mentioned that overall, the entire load — rail cars and F-150s included — was around 1.25 million pounds. 

Inasmuch as the demo was incredibly impressive, Ford was careful to note that the towing stunt was a “one-time short event demonstration.” The company also claimed that the feat was “far beyond any production truck’s published capacity.” Yet, despite these statements, it is difficult not to be impressed with Ford’s F-150 electric truck prototype. The demo, if any, almost seemed like the veteran carmaker was showing younger companies like Tesla and Rivian (both of which are entering the market with their own all-electric pickups) that it holds a notable level of mastery in truck-building. 

While Ford is yet to announce a concrete release date for its all-electric F-150, the company seems to be putting a lot of effort in ensuring that its upcoming EV initiative will be a success. The company, for example, has partnered with Volkswagen, which will allow Ford to use the German carmaker’s MEB architecture. Ford has also invested $500 million in electric truck startup Rivian, which will give the veteran automaker access to the startup’s skateboard platform. Ford plans to produce over a dozen electric and electrified models by 2022. 

Watch Ford’s F-150 electric truck prototype tow over a million pounds in the video below. 

Ford teases upcoming F-150 electric pickup by towing 1.25 million pounds of cargo


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SpaceX set to deliver cargo to the space station with a twice-flown Dragon spacecraft


SpaceX is set to become the only company in history to launch the same commercial space capsule to orbit three times, a milestone of orbital spacecraft reuse in an otherwise ‘routine’ Cargo Dragon mission to the International Space Station (ISS).

Known as CRS-18, the mission will (hopefully) see Cargo Dragon capsule C108 and a fresh trunk deliver several tons of cargo to the ISS, SpaceX’s second of three such launches planned for 2019. Beyond Cargo Dragon’s third trip to orbit, building upon SpaceX’s inaugural commercial spacecraft reuse back in June 2017, Falcon 9 B1056.1 will become the first flight-proven Block 5 booster to launch a NASA mission, potentially setting the particular core up for many more NASA reuses to come. CRS-18 is scheduled to launch no earlier than (NET) 6:24 pm EDT (21:24 UTC), July 24th.

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SpaceX reused one of its Cargo Dragon (Dragon 1) capsules for the first time in June 2017, becoming the first company in history to recover and reuse an orbital-class spacecraft, much like the company is about to become the first to reuse a commercial spacecraft twice. Speaking at the ISSR&D 2017 conference, SpaceX CEO Elon Musk noted that – despite the fact that it was the first time a commercial entity (including SpaceX) had reused an orbital spacecraft – the cost of refurbishing Cargo Dragon C106 was no less than 50% cheaper than building a new capsule.

The cost-effectiveness of Cargo Dragon reuse has likely only improved in the two years since that historic first, meaning that SpaceX’s ISS resupply runs likely feature some extremely healthy margins for the company. According to an exhaustive 2017 analysis of CRS costs, the total cost of a single Cargo Dragon resupply mission is likely ~$175M (FY19). (Zapata, 2017)

An overview of the expected modifications needed to turn Crew Dragon into Cargo Dragon 2. (NASA OIG)

Aside from CRS-18, SpaceX has two Dragon 1 launches remaining in its original CRS1 contract with NASA. Both will also necessarily make use of twice-flown capsules like CRS-18, leaving SpaceX with a retired fleet of no fewer than three thrice-flown and three twice-flown orbital spacecraft as Dragon 2 (Crew Dragon) takes the reins. Current schedules show SpaceX’s final CRS1 launch – CRS-20 – following CRS-19 (NET December 2019) in March 2020. Cargo Dragon 2’s launch debut is currently scheduled no earlier than August 2020 and – as all Cargo Dragon 2 launches – will reuse a lightly-modified, orbit-proven Crew Dragon capsule.

CRS-18: bad weather in spades

CRS-18 will likely face some of the worst weather SpaceX has ever experienced during an attempted Falcon 9 launch, with July 24th and the July 25th backup window carrying probabilities of violation (i.e. a scrub) of 70% and 80%, respectively. In other words, there is a measly 30% and 20% chance that Falcon 9 will be able to launch CRS-18 this Wednesday or Thursday.

Supporting the Cargo Dragon launch is Falcon 9 booster B1056.2, likely to set the second-fastest Falcon 9 turnaround time with just 80 days between its May 4th launch debut and CRS-18. SpaceX’s turnaround record currently stands at 74 days – a three-way tie between boosters B1048, B1052, and B1053. Additionally, B1056’s second launch will also mark the first time that NASA has reused a Block 5 booster, an important indication that the space agency is extremely comfortable with SpaceX’s latest Falcon 9 variant and its associated reuse procedures.

Stay tuned as Falcon 9 prepares to go vertical at Cape Canaveral Launch Complex 40 (LC-40) and the Air Force Station’s final T-24h launch day weather forecasts begin to roll in

Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes.

SpaceX set to deliver cargo to the space station with a twice-flown Dragon spacecraft


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Tesla Gigafactory 3 shows remarkable progress as site gets graced by major gov’t official


Tesla’s Gigafactory 3 in China continues to evolve by the week, with recent drone footage of the complex providing a glimpse at the remarkable progress of the activities inside and outside the electric car production facility. Based on recent videos taken of the site, it appears that Gigafactory 3’s workers are sprinting towards the factory’s completion, as the team attempts to hit the ambitious goal of starting local Model 3 production later this year. 

The recent footage of the Gigafactory 3 complex was shared on YouTube by Tesla enthusiast and drone operator Jason Yang, who has been following the progress of the site since January, when the site was but an empty field with a few pile drivers. Particularly impressive in the new footage was the completion of the facility’s roofing, which now appears to be completely paved. Most areas are even overlaid with white paint, giving Gigafactory 3’s general assembly building that clean, unmistakable Tesla look. 

Also notable were the doors that are now being installed in the bays lining Gigafactory 3’s sides. Semi-trailers will be loading and unloading items from these massive doors, allowing Gigafactory 3 to take and conduct deliveries in an efficient manner. A number of the facility’s windows are also being finished, as more sections of the general assembly building’s exterior are completed. 

Over the course of the recent flyover, it was evident that workers in the Gigafactory 3 complex are currently working on the areas surrounding the main electric car production facility. More operating platforms have also been installed around the main plant, and other projects, such as the substation southwest of the general assembly building, continue to make progress. Based on these activities, it was evident that Tesla and its Chinese construction partner are pushing hard to complete the facility on time, or perhaps even ahead of schedule.

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These recent developments in the Gigafactory 3 complex come on the heels of a high-profile visit by Shanghai Party Secretary Li Qiang, who emphasized his full support for the construction of the upcoming Tesla Model 3 and Model Y production facility. Qiang’s visit is particularly notable, especially since party secretaries hold a prominent place in the Chinese government, exceeding that of officials like mayors. In a way, Qiang’s visit is the latest sign yet that the local government is fully backing the Silicon Valley-based electric car maker. 

Earlier this month, reports from Chinese media pointed at Tesla starting the employment of its first batch of workers by the end of July. While this announcement seemed incredibly ambitious given that Gigafactory 3 is still under construction, footage taken of seemingly completed offices inside the Shanghai-based complex have revealed that some sections of the site are already hosting offices. Tesla has reportedly deployed 30 overseas employees to Gigafactory 3, who are currently working closely with a team of 140 Tesla China employees. By the end of this month, this number would likely see a lot of growth. 

Watch the recent flyover of Gigafactory 3 in the video below. 

Tesla Gigafactory 3 shows remarkable progress as site gets graced by major gov’t official


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Tesla Model Y manufacturing improvements highlighted in published patent application


In an effort to continue streamlining its manufacturing process, Tesla has developed a new vehicle frame casting machine. The specifics are described in a patent application published on July 18, 2019 titled, “Multi-Directional Unibody Casting Machine for a Vehicle Frame and Associated Methods.” CEO Elon Musk previously referred to such a machine that was under development during his conversation with Ryan McCaffrey of the Ride the Lightning podcast in June. His comments at the time were in reference to manufacturing improvements being made specifically for Model Y production.

“There are some manufacturing improvements for the [Model] Y. The rear underbody we’re moving to an aluminum…casting instead of a series of stamped steel and aluminum pieces,” Musk revealed in the interview. “When we get the big casting machine, it’ll go from 70 parts to 1 with a significant reduction in capital expenditure on all the robots to put those parts together.”

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As described, Tesla’s new casting machine will have a central hub to receive several dies that are assembled into specific portions of a vehicle frame before being cast. The dies can transform into multiple configurations along the X, Y, and Z axis, essentially forming into numerous part molds. Further suggested by the patent application is that a full car frame may be made with a single cast using these transforming capabilities.

Casting molds are common in car manufacturing; however, single part molds are often what’s used, and bolts and welding are then subsequently required. A single casting machine configurable for several parts has many advantages, including reduced build time, operation costs, manufacturing costs, factory footprint, tooling costs, and equipment quantity. Using a casting machine for the Model Y will also reduce the weight of the all-electric crossover, according to Musk. Battery efficiency will be positively impacted by a lighter vehicle with only an 8-10% impact on range expected in the Model Y when compared to the Model 3.

Anticipation for the Model Y is building despite few details being revealed by Tesla since its unveiling in March. During the California-based car maker’s annual shareholder meeting this year, a red working prototype of the vehicle was on display alongside a next generation Roadster and a Tesla Semi, both also red. Prior to the event, only blue and white versions had been revealed, the blue having been used for test drives at its unveiling.

The manufacturing location for the Model Y also has yet to be announced, although Tesla’s Fremont factory looks to be the most likely candidate. Production is still anticipated for 2020.

Tesla Model Y manufacturing improvements highlighted in published patent application


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Terraforming Mars may still be possible after NASA concludes otherwise, scientists say


SpaceX’s Elon Musk may imagine a nuclear device acting as an artificial sun on Mars for his long-term terraforming plans, but NASA has ultimately disagreed with his and others’ proposals thus far for the planet. With this in mind, Harvard University scientists have conducted a study using silica aerogel to create regionally terraformed parts of the planet instead. Their results were recently published in Nature Astronomy.

NASA’s message is clear: The amount of carbon dioxide (CO2) that would be required to warm Mars enough to provide the required atmospheric pressure for human survival is not present on the red planet.

“Transforming the inhospitable Martian environment into a place astronauts could explore without life support is not possible without technology well beyond today’s capabilities,” NASA concluded in a press release last year on the topic of making our neighbor into the next Earth. “Our results suggest that there is not enough CO2 (carbon dioxide) remaining on Mars to provide significant greenhouse warming were the gas to be put into the atmosphere; in addition, most of the CO2 gas is not accessible and could not be readily mobilized. As a result, terraforming Mars is not possible using present-day technology.”

Wordsworth et al./Nature Astronomy/Harvard University
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The Harvard scientists who published the recent study have instead proposed a way around this problem by exchanging a planet-wide terraforming strategy for a local one. By covering certain areas of the Martian surface with a thin layer of silica aerogel, namely areas with large amounts of water ice, enough sunlight will come through for warming and combine with natural heating processes beneath the surface to create a potentially habitable environment.

“Specifically, we demonstrate via experiments and modelling that under Martian environmental conditions, a 2–3 cm-thick layer of silica aerogel will simultaneously transmit sufficient visible light for photosynthesis, block hazardous ultraviolet radiation and raise temperatures underneath it permanently to above the melting point of water, without the need for any internal heat source,” the study’s abstract detailed.

Wordsworth et al./Nature Astronomy/Harvard University

Once temperatures were adequate, the gases released from the ice in the lakes and regolith (soil) would build up to form a pressurized atmosphere under the aerogel layer. If successful up to that point, microbes and plant life could theoretically survive. “Placing silica aerogel shields over sufficiently ice-rich regions of the Martian surface could therefore allow photosynthetic life to survive there with minimal subsequent intervention,” the scientists suggested. This photosynthetic life would go on to produce oxygen for pickier Earth dwellers to utilize.

In addition to proposing the utilization of silica aerogel’s heat trapping properties, the research team also conducted tests using environmental factors that mimicked those on Mars. Their results thus far indicate that warming beyond the required temperature for liquid water would be readily available to implement as needed under the aerogel. These results are promising, but many more tests and in-situ research will also be necessary to prove the concept further.

An artist’s rendering of the geodesic Mars Ice Home concept. Perhaps silica aerogel could be integrated into larger versions? | Image: NASA/Clouds AO/SEArch

While NASA’s findings published last year seem to dash SpaceX’s dream of eventually terraforming Mars (for the full picture, see their transforming coffee mug), this latest effort demonstrates that all options are not yet off the table. Perhaps if the Harvard team’s further studies and tests positively demonstrate the potential of their silica aerogel habitat idea, small regions throughout the planet could resemble Earth’s most ideal places – very similar to Earth itself.

Would these areas be akin to bubble cities and bubble parks? Would the aerogel cover geodesic structures, as is seen in many other Martian colony concepts? Even if all the answers aren’t in yet, the enthusiasm for finding answers is exciting.

Terraforming Mars may still be possible after NASA concludes otherwise, scientists say


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Rivian teases production while touting R1T, R1S manufacturing progress


Rivian’s all-electric R1T pickup truck and R1S SUV won’t find their way into customers’ hands until late next year, but the startup looks to be well on its way to a full production line. Over the weekend, the company’s official Twitter account teased its manufacturing progress with photos of several stamped metal frames hanging on racks inside one of their facilities.

“Busy making metal!” the company posted as a caption alongside the three images. Also revealed in the photos was Rivian’s logo stamped on the parts, assumingly for the R1T due to the gear tunnel opening, further confirming the automaker’s attention to detail.

The shared images are a welcome update on Rivian’s progress towards bringing its upcoming lineup to market. Several publicity campaigns to boost the brand have been carried out in recent months, altogether expanding anticipation for the company’s vehicles. However, that same anticipation can quickly transform into impatience. Releasing these production photos looks to be a nod towards that risk.

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Manufacturing progress wasn’t the only thing Rivian shared with its recent tweet. In response to a question about the company’s plans for a charging network, the company responded, “Rivian vehicles will utilize the CCS (Combined Charging System) standard charging network which is rapidly expanding.”

This detail was already assumed given the CCS port included on Rivian’s vehicles. Additionally, the confirmation doesn’t exclude any plans for a Rivian-produced network in the future, specifically ones located in remote locations that are popular for the adventure travel crowd. It does seem to indicate the company isn’t looking to create something akin to Tesla’s Supercharger Network, though.

During Rivian’s attendance at the New York International Auto Show in May this year, CEO RJ Scaringe reportedly discussed the possibility of an upcoming roadshow tour throughout the US with test drives to present the R1T and R1S to a nationwide audience. Further evidence of such a tour was indicated by Rivian’s job listings, one specifically for a “Test Driver” that would be tasked to perform “over the road durability testing” and “ride and drive demos of Rivian vehicles (Marketing Events, Customer Trade Shows),” among other responsibilities. That idea doesn’t look to still be in the works, however, according to Rivian’s tweets in the same thread about the manufacturing photos.

“We’re not offering test drives yet, but we look forward to getting people behind the wheel closer to production!” the company stated.

Whether or not test drives will be available in the near future, Rivian still has plenty of exciting things to look forward to like vehicle-specific camping accessories, self-driving software developments, and microgrid solar projects utilizing its expended batteries. Hopefully, more manufacturing-related images and news will continue to be shared by the company over the next year as production and delivery dates approach.

Rivian teases production while touting R1T, R1S manufacturing progress


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Tesla to be more competitive in Europe with upcoming car tax policy update


Tesla’s Model 3 push in Europe could see a notable boost, thanks to a potential policy update that would abolish import duties on American cars entering the region. The potential update was related by German Economy Minister Peter Altmaier to German newspaper Welt am Sonntag on Sunday.

“We have already said we are ready to bring tariffs on important industrial products down to zero. This would eliminate accusations that US car tariffs are lower than EU ones,” he said.

The Economy Minister stated that the European Union would offer US exporters other incentives, including sparing them from the need to certify their products under EU laws. Explaining further, Altmaier explained that a continued tariff war between the EU and the United States would only hurt both economies.

Altmaier’s recent comments seem to be a direct response to US President Donald Trump’s statements back in May, when he stated that he might slap tariffs of up to 25% on European cars and auto parts. Trump, who has maintained a stance alleging unfair trade relations between the US and the EU, has postponed his decision about the additional tariffs until November this year.

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Following a conversation with US trade representative Robert Lighthizer, the German Economy Minister stated earlier this month that a solution to the dispute between the US and the EU could be reached by the end of the year.

Presently, the EU imposes import taxes of about 10% on cars entering from the United States. This additional tax, which comes on top of the VAT that car buyers have to pay when purchasing a vehicle, has become an unnecessary handicap for companies like Tesla, whose cars become more expensive compared to local offerings.

If Europe does end up cutting the import tax on American cars, Tesla’s lineup will immediately become more affordable. This policy update would come in at the perfect time as well, considering that Tesla is currently starting its Model 3 push into the region. Such an update would likely cause some ripples in Europe’s EV market, as local manufacturers would lose one of their key advantages to companies like Tesla.

The Tesla Model 3 holds a lot of potential for the European market. Being smaller than the Model S and Model X, the Model 3 is a better fit for European territories that traditionally have smaller roads. The vehicle’s all-electric nature also fits perfectly with the region’s aggressive efforts at adopting a zero-emissions fleet as well.

This was demonstrated earlier this month, when the UK Treasury confirmed that employees who drive zero-emission company cars would pay no benefit-in-kind (BIK) tax for the year, making vehicles like the Model 3 far more cost-effective and practical compared to gas-powered competitors like the BMW M3.

Tesla to be more competitive in Europe with upcoming car tax policy update


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SpaceX’s Elon Musk says Starship, Super Heavy will have more than 40 Raptor engines


According to tweets published by CEO Elon Musk on July 21st, SpaceX’s combined Starship and Super Heavy launch vehicle (BFR) could have as many as 41 Raptor engines at liftoff.

As with all other aspects of SpaceX’s next-generation rocket, this is a sign that things remain in flux as the company nears the point at which a specific design will need to be settled on for the first flight-ready prototype(s). With 6 Raptors on the upper stage (Starship) and 35 Raptors on the first stage/booster (Super Heavy), the rocket will – without a doubt – be the most powerful launch vehicle ever developed when it attempts its inaugural launch.

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Now expected to feature 35 Raptors in its final iteration, SpaceX’s Super Heavy booster can now be expected to produce a minimum of ~70,000 kN (15.7M lbf) of thrust at full throttle, assuming that all 35 Raptors are the throttleable ~2000 kN variant. According to Musk, SpaceX may also develop a simplified Raptor with minimal throttling that would produce upwards of ~2500 kN (550,000 lbf) of thrust.

If, say, 5 throttleable Raptors were kept as the center cluster of engines used for landing and critical recovery-related burns, a Super Heavy booster with 30 uprated Raptors could produce upwards of 85,000 kN (19.1M lbf) of thrust at launch. In no uncertain terms, a Super Heavy booster anywhere inside those rough bounds (70 MN to 85 MN) would be packing double the thrust of NASA’s Saturn V rocket and double the thrust of NASA’s in-development SLS rocket in its higher-thrust variants.

SpaceX’s Starship/Super Heavy (formerly BFR) lifts off from Pad 39A in an updated 2018 animation. (SpaceX)

Put simply, this is a spectacular amount of thrust and energy, so much so that launching a c. 2019 BFR might very well destroy any launch pad in existence today, including SpaceX’s own Pad 39A. Rated and built – in some sense – for Nova, a 10 to 20 million pound-thrust rocket meant to follow Saturn V, it’s likely that Pad 39A would/will need some significant modifications to support a full-stack Starship/Super Heavy launch, especially with a full complement of Raptor engines installed. According to Musk, work has already begun on a Starship launch structure, while the vehicle’s ‘pad’ will be situated on the opposite side of Pad 39A as its Fixed Service Structure (FSS), the tower holding SpaceX’s Crew Access Arm (CAA).

If all goes well, Musk – likely telegraphing his old, wildly optimistic, “Musk-time” self – believes that the first Starship prototypes (one in Texas, one in Florida) will be ready for inaugural flight tests as early as September/October 2019.

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SpaceX’s Elon Musk says Starship, Super Heavy will have more than 40 Raptor engines


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