Tesla’s Navigate on Autopilot gets poor review from Consumer Reports


Tesla’s Navigate on Autopilot with automatic lane changes was recently tested by Consumer Reports, and the results were not encouraging. In a rather scathing review of the driver-assist capability, the consumer advocacy group concluded that Navigate on Autopilot’s capabilities lagged far behind a human driver’s skill set, making it more of a liability than an asset. The advocacy group also noted that the new Autopilot feature is not “self-driving” by any means.

Consumer Reports stated that during its tests, the feature ended up cutting off cars without leaving enough space, while passing other vehicles in ways that may violate state laws. This results in Navigate on Autopilot requiring constant observation and attention, essentially requiring drivers to stay one step ahead of the system at all times. Jake Fisher, Consumer Reports’ senior director of auto testing, described these observations as follows.

“The system’s role should be to help the driver, but the way this technology is deployed, it’s the other way around. It’s incredibly nearsighted. It doesn’t appear to react to brake lights or turn signals, it can’t anticipate what other drivers will do, and as a result, you constantly have to be one step ahead of it,” he said.

The group also noted that Tesla’s rearward-facing cameras could not detect fast-approaching objects from the rear. These cause issues when Navigate on Autopilot changes lanes or merges into traffic, according to Fisher.

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“The system has trouble responding to vehicles that approach quickly from behind. Because of this, the system will often cut off a vehicle that is going a much faster speed since it doesn’t seem to sense the oncoming car until it’s relatively close. It is reluctant to merge in heavy traffic, but when it does, it often immediately applies the brakes to create space behind the follow car—this can be a rude surprise to the vehicle you cut off,” Fisher said, adding that “in essence, the system does the easy stuff, but the human needs to intervene when things get more complicated,” he said.   

In conclusion, Consumer Reports noted that while automatic lane changes could be a compelling capability for Tesla’s vehicles, Navigate on Autopilot doesn’t provide any meaningful assistance to drivers on the road. Summarizing the findings of the test, Fisher noted that “This isn’t a convenience at all. Monitoring the system is much harder than just changing lanes yourself. Using the system is like monitoring a kid behind the wheel for the very first time. As any parent knows, it’s far more convenient and less stressful to simply drive yourself.”

David Friedman, vice president of advocacy at Consumer Reports, also weighed in on the group’s findings. In its current iteration, Friedman argued that Navigate on Autopilot’s automatic lane change function raises safety concerns. “Tesla is showing what not to do on the path toward self-driving cars: release increasingly automated driving systems that aren’t vetted properly,” he says. “Before selling these systems, automakers should be required to give the public validated evidence of that system’s safety—backed by rigorous simulations, track testing, and the use of safety drivers in real-world conditions,” Friedman said.

A Tesla spokesperson has provided a statement to Consumer Reports, stating that “Navigate on Autopilot is based on map data, fleet data, and data from the vehicle’s sensors” and emphasizing that “it is the driver’s responsibility to remain in control of the car at all times, including safely executing lane changes.” The electric car maker also pointed the group to a company blog post from April 3, which stated that through internal testing and an Early Access Program, “more than half a million miles have already been driven with the lane change confirmation turned off.”

“Our team consistently reviews data from instances when drivers took over while the feature has been in use, and has found that when used properly both versions of Navigate on Autopilot offer comparable levels of safety. We’ve also heard overwhelmingly from drivers in our Early Access Program that they like using the feature for road trips and during their daily commutes, and we’re excited to release the option to the rest of the Tesla family,” Tesla noted.

Navigate on Autopilot is currently listed under Tesla’s Full Self-Driving suite, but it should be noted that the feature, at its current iteration, requires a fully attentive driver. This is something that is emphasized by Tesla every time Autopilot is engaged, as seen in warnings that remind drivers to keep their hands on the wheel and pay attention to the road at all times. Tesla is building up its vehicles’ features to be fully self-driving in the future, but until regulators approve autonomous vehicles on the road, and until Tesla can effectively and safety roll out a hands-free driving system, Autopilot will remain a hands-on, intelligent driver-assist suite.

Consumer Reports’ full take on Tesla’s Navigate on Autopilot with automatic lane changes could be accessed here.

Tesla’s Navigate on Autopilot gets poor review from Consumer Reports


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Tesla’s (TSLA) steep drop is driven by short-seller activity, says Bank of America


Tesla stock (NASDAQ:TSLA) has taken a steep dive recently, with the company’s shares down nearly 40% in the last six months and down 26% since April 1. With TSLA stock dropping to the $200 range, several analysts from Wall St have become particularly skeptical of the electric car maker, including Wedbush Securities’ Dan Ives and Morgan Stanley’s Adam Jonas.

The drop in Tesla stock could be attributed to the company’s lower-than-expected performance in the first quarter, as well as concerns about the company’s strategy for the near future. Nevertheless, a Bank of America analyst has noted on Wednesday that TSLA’s stock price plunge is likely due to short sellers increasing their bets against the company.

According to Bank of America analyst John Murphy, this increase in short seller activity could prime TSLA stock for a sharp move upward, in what could become a “short squeeze.” Tesla is among the most shorted companies in the market, even when it was trading near all-time highs. With shares down to the $200 level, over 31% of the company’s floating shares are sold short as of May 21, according to data from FactSet.

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“Although far from taking a constructive view on TSLA, it appears much of the pressure on the stock over the past few days/weeks has been driven by shorts pressing aggressively. In our view, this could set up for a short squeeze in the coming days/weeks/months should deliveries, profits/losses, cash flow/burn come in even slightly better than draconian expectations, or should Musk introduce another business venture and/or longer-term financial target that once again gets bulls excited,” Murphy wrote.

The Bank of America analyst actually holds a bearish stance on Tesla stock, maintaining an “Underperform” rating on the electric car maker. This, if any, makes Murphy’s recognition of a potential short squeeze even more notable, since he is already coming from a rather skeptical perspective on Tesla.

While several analysts from Wall St have piled on the negativity since shares breached the $250 level, some TSLA bulls have maintained their optimism on the company. Baird analyst Ben Kallo, a longtime Tesla bull, maintained his “Outperform” rating on TSLA stock, despite adjusting his price target to $340 from $400. According to Kallo in a recent note, Tesla “is positioned to outperform over the long run, as the company increases profitability, generates free cash flow, and ramps production of innovative products.” Another Tesla bull, Colin Rusch of Oppenheimer, also noted that Tesla’s ambitious guidance for 2019 could still be achieved.

As of writing, Tesla stock is trading -3.62% at $197.89 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) steep drop is driven by short-seller activity, says Bank of America


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Tesla’s new social media manager used a sheep to land the job


Tesla has a new social media manager, and fans of the all-electric car maker were recently privy to the most important, very public part of the position’s hiring process in the form of a Twitter laugh challenge with CEO Elon Musk. Not many job seekers begin their journey to employment this way, but not many people inspire Musk to swap his profile picture for something they’ve posted on the internet, either. The new hire’s name is Adam Koszary, and he starts his new job in July.

If you follow Elon Musk closely on the platform (or are an avid Twitter user in general), you may recognize Koszary’s work as Programme Manager and Digital Lead for The Museum of English Rural Life (The MERL). More specifically, you’ve probably seen an Exmoor Horn aged ram (i.e., a big sheep) show up on your Twitter feed in various meme-type forms if not in its original glory: “look at this absolute unit.”

The phrase “absolute unit” is used online to jokingly refer to anything that’s large in size or stature relevant to its nature.

In April last year, The MERL shared its now-famous sheep photo and caption on Twitter, and the post went viral shortly thereafter. Fast forwarding to this year, MIT’s Technology Review Twitter account used a similar meme strategy to direct attention to an article it published about the first flight of Stratolaunch, the world’s largest aircraft. “Look at the size of this absolute unit,” MIT wrote alongside a link to the piece.

Musk later replied to MIT’s tweet with The MERL’s sheep photo, saying “I’m an absolute unit too.” He then changed his account profile picture and bio to reference the same sheep, and The MERL responded in kind by changing its Twitter photo to an image of Musk. The museum also changed its name to The Muskeum of Elongish Rural Life temporarily. Adam Koszary was apparently behind those clever jokes sent from The MERL’s account, and they’ve now earned him the new job with Tesla.

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Providing a source of amusement for Musk isn’t the only hiring qualification Koszary has, of course. His work with the museum’s social media account brought in some serious results in terms of engagement with an online audience. Before the museum’s sheep tweet went viral, its Twitter account had around 9700 followers. Today, that count is up to 133,000.

Tesla and Musk’s position on product advertising is clear – they don’t do it. Keeping that in mind, hiring on a social media manager with a proven track record of audience generation looks to be a smart move for the brand. Also, it’s just fun to see in action. While Koszary’s position is said to start in July, Tesla’s corporate Twitter account has already been warming up its audience for his style of social media engagement.

Earlier this month, the car maker began tweeting with a notable level of wit, sass, humor, and tons of attitude not previously demonstrated. Rather than keeping to its usual professional tone and business-oriented subject matters, tweets and responses were suddenly sharp and sarcastic in ways reminiscent to how Wendy’s Twitter account handles its social media platform. The response to the change from Tesla’s audience was overwhelmingly positive, and by bringing Koszary on board, it looks like the new voice of the company is here to stay.

Koszary’s creds for social media management were further on display in a column he published on Medium last November wherein several points of advice were offered to any institution looking to repeat MERL’s type of success on Twitter or other platforms. “If you want people to have a conversation with you, you’re going to have to have a bit more personality. This doesn’t mean being funny. This means being more relaxed in how you address and discuss things with people so they feel like they’re talking to a real person,” he recommended in the piece. “Social media is social, so be social.”

Overall, if the Twitter affair with Elon Musk was Koszary’s interview for his new position as Tesla’s social media manager, his post on Medium could be considered a type of work sample attached to his resume. All things considered, the parties look like a good matchup for an amusing and engaging ride ahead for everyone.

Tesla’s new social media manager used a sheep to land the job


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SpaceX ready for 60-satellite Starlink launch debut: third time’s the charm?


SpaceX is approximately two hours away from its third Starlink v0.9 launch attempt, an ambitious batch of 60 satellites that will also be the company’s heaviest payload ever.

As hinted at by the name “Starlink v0.9”, these sixty satellites are not quite the final design. More a beta test at an unprecedented scale, several critical new technologies and strategies will be put to the test on this launch, ranging from a seriously unorthodox satellite deployment method to the near-final krypton-fueled electric thrusters. Same as SpaceX’s May 15th and 16th launch attempts, Starlink v0.9’s third try has a 90-minute window that opens at 10:30 pm EDT (02:30 UTC), this time on Thursday, May 23rd.

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Third time’s the charm 🤞

May 23rd’s Starlink v0.9 launch attempt will be the mission’s third, preceded by May 15th – scrubbed by high-altitude wind shear – and May 16th, cancelled before fueling began in order to troubleshoot and update the software aboard the 60 Starlink satellites. After a week of concerted effort from SpaceX technicians and software developers, those issues have been more or less dealt with and the first batch of Starlink satellites are once again ready for orbit.

The second phase of Starlink testing – 60 advanced satellites – in a single fairing. (SpaceX)

According to SpaceX, the massive payload of 60 flat-packed Starlink satellites weighs approximately 18.5 tons (16,800-18,500 kg, unclear if short or metric tons). Either way, it will easily break SpaceX’s previous record – likely Crew Dragon’s DM-1 debut – and become the heaviest payload the company has ever attempted to launch. Despite the sheer size and mass of the payload, Falcon 9 booster B1049 – launching for the third time – will still be able to land aboard drone ship Of Course I Still Love You (OCISLY) some eight minutes after launch.

If the recovery goes well, B1049 will become the third SpaceX booster to successfully complete three orbital-class launches and landings, paving the way for a series of fourth flights (and beyond) later this year.

Cubesats, meet Flatsats

Aside from the mission’s impressive rocket performance requirements, Starlink v0.9 will also serve as a huge beta test of a dozen or more new technologies. The most visible of those has to be each satellite’s truly unique flat, rectangular form factor, as well as SpaceX’s use of flat-packing in place of a dedicated structure for holding and dispensing the satellites. It’s unclear if there is some additional reinforcement or if the satellites themselves provide all of the stack’s strength. If the latter is true, the satellites at the bottom must survive massive forces – ranging from ~7000 kg at rest to 35,000+ kg at the end of Falcon 9’s second stage burn.

Aside from their exotic structure, each Starlink satellite also carries a single-panel ~3 kW solar array using one of two experimental deployment mechanisms. Each satellite’s main propulsion comes from an unknown number of Hall Effect thrusters (i.e. electric/ion thrusters) fueled by krypton instead of the usual xenon. SpaceX’s internally-developed krypton thrusters are the only known examples to have been tested in orbit.

Aside from thrusters, SpaceX CEO Elon Musk also believes that the company’s space-based phased array antennas – also developed in-house – are more advanced than any operational competitor on Earth. Musk also revealed that SpaceX would attempt to use a bizarre and largely untested method of satellite deployment, spinning Falcon 9’s upper stage and releasing the satellites with inertia instead of traditional springs or pushrods.

Regardless of whether everything works as planned, the launch is going to be a spectacular one and the webcast may even include views of the bizarre satellite deployment. Catch SpaceX’s live coverage of the mission – likely to include new details about the Starlink constellation – at the link below. Coverage will begin ~15 minutes prior to liftoff.

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

SpaceX ready for 60-satellite Starlink launch debut: third time’s the charm?


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Tesla opens jobs for Gigafactory 3 as first images of factory interior emerge


Ahead of the completion of Gigafactory 3’s outer shell in Shanghai, Tesla’s recruitment team in China has announced that it will be holding a special job fair on May 29. Tesla noted that it would be looking for applicants for 25 different job positions, each of which will be working under one of six departments when the site begins its operations.

These departments are the stamping workshop, welding shop, paint shop, assembly, facility operation, and logistics. Numerous jobs are up for grabs in each of these departments, with Tesla’s announcement featuring openings for welding press technicians, equipment repair technicians, production monitors, and squad leaders, to name but a few.  

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Quite interestingly, Tesla’s job fair announcement for Gigafactory 3 includes references to Elon Musk’s idea of an “Alien Dreadnought” ship. The alien dreadnought is the CEO’s idea of a hyper-automated factory that is essentially a machine that builds the machine. Musk has mentioned this concept to Chinese Premier Li Keqiang in Beijing back in January, and it was received with much optimism.

Tesla’s complete list of job listings for its upcoming Gigafactory 3 job fair could be accessed here.

Apart from announcing a job fair, Tesla and its construction partner appear to have made significant progress in the construction of Gigafactory 3’s interior. Over the past weeks, the construction of Gigafactory 3 has hit overdrive as China’s workforce attempted to complete the Phase 1 area’s initial construction by the end of May. As the general assembly building takes form, work has shifted inside the nearly completed factory shell.

The pictures of Gigafactory 3’s interior reveal that some parts of the expansive general assembly building’s floors have already been paved with cement. Pillars on the site also look finished and refined. Overall, the interior of the general assembly building looks the part of a large factory before manufacturing equipment is installed.

It remains to be seen if China’s workforce could meet the targets set by Shanghai officials last March, which estimated that Gigafactory 3’s initial construction could be completed by May. Despite this ambitious timeframe, the incredible pace of Gigafactory 3’s construction, which allowed the facility to grow from a single pillar in the middle of March to a full-blown factory shell by May, is something that could very well make it to books. At its current pace, and barring unexpected delays, Gigafactory 3 could see initial electric car production as early as September.

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

Tesla opens jobs for Gigafactory 3 as first images of factory interior emerge


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Consumer Reports’ points against Tesla’s Navigate on Autopilot were misunderstood


Tesla received an immense amount of criticism recently after Consumer Reports published a scathing review of Navigate on Autopilot with automatic lane changes. The consumer advocacy group concluded that the driver-assist system was more of a liability than an asset, since it requires drivers to be one step ahead of the system while it is engaged. The review was promptly circulated on Wednesday, and largely framed as a blanket criticism of Tesla’s Navigate on Autopilot.

It appears that this was not the case, at least according to Consumer Reports auto testing director Jake Fisher.

Navigate on Autopilot is arguably one of the most robust capabilities of Tesla’s driver-assist system available today, and it is being used by a significant number of electric car owners. This was addressed by the Tesla community on Twitter, who promptly asked the auto testing director if Consumer Reports received input from actual Tesla owners about Navigate on Autopilot’s merits. Responding to the inquiry, Fisher noted that Consumer Reports’ negative review was “specifically about the system’s new ability to remove the confirmation and alert on lane change,” and not Navigate on Autopilot as a whole.

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In later tweets, Fisher clarified that Consumer Reports’ recent review was only focused on how Navigate on Autopilot operates when confirmation and warnings are disabled. Thus, the observations and conclusions outlined by the advocacy group were only relevant in the context of the specific Navigate on Autopilot settings utilized by Consumer Reports in its test.

Unfortunately, this point appears to have been missed by the coverage of Consumer Reports’ findings. When presented with several articles featuring CR’s recent review, the auto testing director agreed that the headlines from several publications have not been accurate. Fisher also clarified that despite his criticism of Navigate on Autopilot’s settings, he still believes that Tesla’s driver-assist system is more capable than the competition.

The previous day’s firestorm surrounding Consumer Reports’ review of Navigate on Autopilot’s new settings all but prove that it is quite easy for misinformation to spread about Tesla. Had it not been for several Tesla owners who decided to contact the Consumer Reports auto testing director, the recent, inaccurate coverage from several media outlets would have gone uncorrected.

Consumer Reports’ points against Tesla’s Navigate on Autopilot were misunderstood


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SpaceX’s space-optimized Starship engine could be ready sooner than later


SpaceX CEO Elon Musk says that there is now a chance that a vacuum-optimized version of the Raptor engine will be ready for near-term Starship launches, indicating that development has either been re-prioritized or is going more smoothly than expected.

This is a significant shift away from a strategy discussed by Musk just four months ago, in which a single variant of Raptor was to be used on Starship and Super Heavy to shorten the next-gen rocket’s path to orbit. For unknown reasons, that approach may have already been replaced with a new alternative that would lead to a Starship with six Raptors instead of seven and a 50-50 split between vacuum and sea level-optimized engines.

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Without a more specific development timeline, it’s unclear if RaptorSL-only versions of Starship will ever make it to orbit as a sort of interim solution. The fact that SpaceX is already considering an expedited vacuum variant bodes well for the current status of sea level engine testing, and Musk admittedly revealed that RaptorVac development was to be delayed just days before Raptor’s first full-scale static fire in February 2019.

Speaking less than four months ago, the purpose of delaying RaptorVac development was “to reach the moon as fast as possible.” As long as a Starship powered by unoptimized Raptors was capable of reaching the Moon, designing with RaptorVac in mind would create delays without adding any near-term benefits. The most obvious reasons that SpaceX would revert RaptorVac strategy are changes in technical confidence (i.e. full-scale Raptor testing is going better than expected) or SpaceX’s motivation to get to the Moon “as fast as possible”.

The latter explanation is certainly possible, especially in light of recent hints that there is a terminal lack of funding and Congressional interest in NASA’s Moon return proposal. SpaceX has its own commercial motivations for Starship to get to the Moon in short order, however, including some form of a contract with Japanese billionaire Yusaku Maezawa. As such, it seems more likely that SpaceX’s Raptor program is making rapid progress, outstretching the expectations of those holding the company’s strategic reins.

Just five days after its first ignition, SpaceX successfully tested Raptor SN01 at more than twice the thrust of Merlin 1D. (SpaceX)

According to Musk, sea level-optimized Raptor development is proceeding so smoothly that SpaceX may be able to move into relatively high-volume production – more than two engines per week – this summer (June 1 to August 31). At the moment, SpaceX appears to be focused on testing Raptor at its McGregor, Texas development facilities. This is no surprise for a cutting-edge rocket engine less than four months into full-scale testing, as inevitable off-nominal or unexpected behavior revealed during test fires can often lead to design optimizations or even major changes.

Since the first finalized Raptor was delivered to McGregor in late January, SpaceX has completed an average of one new engine per month, all of which have then been tested in Texas. After completing its McGregor acceptance tests, SN03 also became the first Raptor engine to leave the ground under its own power as part of Starhopper’s first two tethered hops. According to Musk, Starhopper could return to ‘flight’ as early as May 31st.

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SpaceX’s space-optimized Starship engine could be ready sooner than later


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Tales from a Tesla Model S with 450,000 miles: Battery life, durability, and more


The quality and durability of Tesla’s vehicles are not just talking points for fans of the all-electric car manufacturer – they’re traits that prove themselves time and again as a benefit of the ownership experience. In a recent example, a 2015 Tesla Model S that’s driven almost 450,000 miles shuttling passengers over long distances was shown to be still running strong and ready for more travel, according to a video overview posted by the founder of the company that owns it, Tesloop.

Tesloop is a connected mobility company for Tesla owners that’s currently developing an open-source mobile app called Carmiq. The company previously operated as a Tesla-only ride share service, offering trips between various cities in southern California and Las Vegas. The long distances involved in Tesloop’s operations put its Tesla fleet to incredible endurance tests, and aside from wear-and-tear seen in most vehicles with similar milage or less, the company’s experience with its 2015 Model S was very positive overall and it still drives well today.

“I think this is the only car that I can confidently say drives better today than it did three years ago and after 450,000 miles. And that’s due to the over-the-air software which has updated the car with Autopilot…The general driving feel of it is still really good…I think it would be very hard to tell this car has this many miles on it if you didn’t know,” Haynd Sonnad, founder of Tesloop, commented in the video.

Nicknamed “eHawk”, Tesloop’s Model S was built in June 2015 and has required a few repairs and major services during its lifetime. Some were paid for by Tesloop as part of its day-to-day business needs, such as tire replacement, and several others were paid for by Tesla under the car’s warranty, such as high voltage battery replacement.

Tesloop’s 2015 Model S has 450,000 miles on it and is still going strong. | Image: Tesloop
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spreadsheet documenting all of the Model S’s service and maintenance experiences was published alongside its video overview for specific details. As listed, the most notable major events over the vehicle’s life time were the front drive unit replacement at 36,404 miles due to a part failure and two main battery replacements, one at 194,237 miles, the other at 324,044 miles. All three replacements were covered under the car’s 8-year, unlimited-mile warranty.

The first battery pack the Tesla Model S had experienced 1.2 miles of range lost per 10,000 miles while being driven about 17,000 miles per month and was replaced due to a battery chemistry issue. The second pack was losing about 4.7 miles every 10,000 miles driven, and its replacement was due to a defect in the battery assembly. The current battery is a 90 kWh pack and showing a loss of about 2.4 miles of range per 10,000 miles driven; however, about midway through the mileage, the car was transitioned from a long distance shuttle to a daily rental car, so the averages may not be a great reflection on its efficiency. At about 126,000 miles into the new pack, eHawk’s battery degradation is around 9%.

Also worth a mention are the brake pad and rotor replacements made for all the Model S’s wheels at 225,351 miles despite the average tire replacement taking place about every 53,000 miles from the long distances driven during regular use. The total owner cost for repairs after nearly 450,000 miles was listed as under $13,000, and general vehicle repairs came in at under $15,000.

During Tesla’s Autonomy Day investor event, CEO Elon Musk estimated that a new battery pack set to go into production next year would operate for one million miles with minimal maintenance, and the improvements are being driven by the company’s march towards its autonomous Tesla Network robo taxi service. Tesloop’s early adoption of Tesla’s vehicles may have meant the company’s most advanced technology wasn’t immediately available to take advantage of, but considering the results seen at 450,000 miles with an older variation, the quality and durability of Tesla vehicles have already proven themselves worth ownership at any stage of development.

To see Tesloop’s full overview of its 450,000-mile, 2015 Tesla Model S’s condition, watch the video below.

Tales from a Tesla Model S with 450,000 miles: Battery life, durability, and more


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Tesla’s $10 ‘bear case’ from Morgan Stanley highlights the noise surrounding TSLA


Tesla stock (NASDAQ:TSLA) looked alarming right before the markets opened on Tuesday amidst news that Morgan Stanley analyst Adam Jonas had lowered the electric car maker’s “bear case outcome” to just $10 per share, a steep drop from his initial worst-case scenario estimate of $97 per share. The analyst’s findings dealt a blow to Tesla stock during pre-market trading, pushing shares down by over 3% at one point.

The Morgan Stanley analyst’s worst-case estimate was driven in part by concerns about Tesla’s business in China, which would likely be adversely affected by the ongoing trade war between the country and the United States. According to Jonas, Tesla could generate about $9 billion in revenues in China between 2020 and 2024, but if Beijing targets the company with reprisal tariffs and restrictions, that figure could be halved, resulting in more than $16 billion of the electric car maker’s market value getting wiped out.

“Our revised case assumes Tesla misses our current Chinese volume forecast by roughly half, to account for the highly volatile trade situation in the region, particularly around areas of technology, which we believe run a high and increasing risk of government/regulatory attention. We believe as Tesla’s share price declines, the likelihood of the company potentially seeking alternatives from strategic/industrial/financial partners rises,” Jonas noted.

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The analyst’s radical $10 estimate for Tesla unsurprisingly attracted a lot of attention, and it did not take long before news of Morgan Stanley’s updated views made the rounds online. What was not reported as much was that Adam Jonas kept his $230 price target on TSLA stock, as well as his equal-weight rating for the company under the firm’s best-case scenario. Also left out in a number of reports was Morgan Stanley’s best-case price target of $391, which is actually pretty optimistic considering the recent movements of Tesla stock.

Other personalities in the financial world eventually gave their take on Jonas’ worst-case scenario for Tesla. Jim Cramer, who has traded barbs with Elon Musk in the past, described the $10 estimate as “insane” and a simple gimmick. “Setting a price target of $10 on a $200 stock really is insane. How about $8? How about $12? Ten basically says, ‘I want to get talked about. Let’s talk about me,’” Cramer said, adding that “if he had done $47 would we have talked about him? No, but 10. Ten is right in your face. I question this piece of research.”

Cathie Wood of ARK Invest, who still maintains a positive stance on the company, also questioned the Morgan Stanley analyst’s findings. “Also interesting to note, Jonas cut his worst-case price by more than 90% but left his price target unchanged at $230. So, I guess he is suggesting that the probability of the bear case has dropped significantly, and/ or the probability of the bull case has increased,” Wood wrote on Twitter.

The Tesla Model 3 production line. (Photo: Tesla)

Considering the pervading negativity surrounding Tesla’s narrative today, it is unsurprising to see aspects of Morgan Stanley’s recent note getting misinterpreted. A look at social media platforms such as Twitter, for example, would reveal some Tesla critics stating that the $10 worst-case estimate was Morgan Stanley’s new price target for TSLA stock. This is untrue, but these instances all but highlight how easy it is for misconceptions about the electric car maker could spread.

This pervading negativity is seen in the mainstream coverage of the company. On Monday, Dan Ives from Wedbush Securities cut his price target and penned a scathing note to Tesla, even describing Elon Musk’s initiatives such as Full Self-Driving and the Robotaxi network as “sci-fi projects.” Ives’ statements on Monday garnered widespread attention, significantly more than his comments on Tuesday, when he explained that he does not think Tesla will eventually file for bankruptcy. Ives also noted on Tuesday that Tesla could return to profitability in the future, provided that demand is sustained and costs are cut.

At this point, it appears that the time is right for Tesla to adopt a more assertive PR strategy that is ready to debunk misinformation and clarify misconceptions at a moment’s notice. By doing so, Tesla can lay out its case clearly, providing explanations as necessary and leaving little to speculation. This would require constant vigilance on the part of the electric car maker, but it would help, at least by straightening out the facts of a story. These initiatives, coupled with an aggressive information campaign that dispels misconceptions about the company and its vehicles, could ultimately allow Tesla to change the course of its narrative for the better.

As of writing, Tesla stock is trading -0.29% at $204.76 per share.

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

Tesla’s $10 ‘bear case’ from Morgan Stanley highlights the noise surrounding TSLA


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Tesla rolls out ‘Rick and Morty’-inspired voice command to enable Sentry Mode


Tesla appears to have enabled a number of new voice commands for Sentry Mode. As revealed in a video from a Model 3 owner who recently received Tesla’s 2019.16.1 update, Sentry Mode can now be enabled by saying “Keep Summer Safe,” a phrase taken straight out of Rick and Morty, an animated sci-fi dark comedy that Elon Musk is fond of.

The Rick and Morty reference was personally teased by Musk last January while he was hinting at Sentry Mode’s features. In a tweet, Musk announced that the camera-based security feature would play “Bach’s Toccata and Fugue during a robbery.” Musk also added that Sentry Mode would “Keep Summer Safe,” a direct reference to a popular Rick and Morty episode titled “The Ricks Must be Crazy,” which involved the titular character’s vehicle “protecting” his grandchild by any means necessary.

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The new voice command further adds to the long list of pop culture references and Easter Eggs in Tesla’s electric cars. Being a self-confessed nerd, Musk’s love of pop culture is evident in many of Tesla’s features, from volume settings that go all the way up to 11 to an Easter Egg that transforms the vehicle in the infotainment screen to James Bond’s Lotus Esprit submarine from The Spy Who Loved Me. In this light, a Rick and Morty-inspired voice command definitely feels in-character for the electric car maker.

The addition of a Rick and Morty-inspired voice command for Sentry Mode is rather unsurprising, given Elon Musk’s admiration of the animated sci-fi dark comedy, as well as his friendship with the show’s creators. This was shown back in February, when Musk hosted a viral meme review with Rick and Morty co-creator Justin Roiland on YouTube.

Sentry Mode has already proven itself to be incredibly useful for Tesla owners, and since its release, it has helped identify individuals vandalizing or breaking into the company’s vehicles. Over the past months, Sentry Mode was able to record a person breaking into a Model 3 in broad daylight, as well as a politician who opted to drive away after scratching a Tesla in a parking lot, to name a few. More recently, Sentry Mode was able to record a serious vandalism incident that involved a couple of individuals laughing as they deliberately scratched and dented a Model 3.

Here’s a video of the new Sentry Mode voice command in action, as shared on YouTube by Model 3 owner Daniel Spalding.

And here’s Rick and Morty‘s “Keep Summer Safe” segment from Season 2.

Tesla rolls out ‘Rick and Morty’-inspired voice command to enable Sentry Mode


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