The Tesla Effect is reaching critical mass, and it could put Big Oil on the defensive


Headed by vehicles like the Tesla Model 3, the electric car revolution is showing no signs of stopping. The auto landscape today is very different from what it was years ago. Before, only Tesla and a few automakers were pushing electric cars, and the Model S was proving to the industry that EVs could be objectively better than internal combustion vehicles. Today, practically every automaker has plans to release electric cars. EV startup Bollinger Motors CEO Robert Bollinger summed it up best: “If you want to start a (car company) now, it has to be electric.”

Catalysts for a transition

A critical difference between then and now is that veteran automakers today are coming up with decent electric vehicles. No longer were EVs glorified golf carts and compliance cars; today’s electric vehicles are just as attractive, sleek, and powerful than their internal combustion peers. The auto industry has warmed up to electric vehicles as well. The Jaguar I-PACE has been collecting awards left and right since its release, and more recently, the Kia Niro EV was dubbed by Popular Mechanics as the recipient of its Car of the Year award.

A survey by CarGurus earlier this year revealed that 34% of car buyers are open to purchasing an electric car within the next ten years. A survey among young people in the UK last year revealed even more encouraging results, with 50% of respondents stating that they want electric cars. Amidst the disruption being brought about by the Tesla Model 3, which has all but dominated EV sales since production ramped last year, experienced automakers have responded in kind. Volkswagen recently debuted the ID.3, Audi has the e-tron, Hyundai has the Kona EV, and Mercedes-Benz has the EQC. Even Porsche, a low-volume car manufacturer, is attracting the high-end legacy market with the Taycan.

At this point, it appears that Tesla’s mission is going well underway. With the market now open to the idea of electric vehicles, there is an excellent chance that EV adoption will only increase from this point on.

Tesla CEO Elon Musk unveils the Tesla Semi. (Credit: Tesla)
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Big oil feels a change in the wind

Passenger cars are the No.1 source of demand for oil, and with the potential emergence of a transportation industry whose life and death does not rely on a gas pump, Big Oil could soon find itself on the defensive. Depending on how quickly the auto industry could shift entirely to sustainable transportation and how seriously governments handle issues like climate change, “peak oil” could happen a couple of decades or a few years from now. This could adversely affect investors in the oil industry, who might be at risk of losing their investments if peak oil happens faster than expected. JJ Kinahan, chief market strategist at TD Ameritrade, described this potential scenario in a statement to CNN. “Look at what happened to the coal industry. You have to keep that in the back of your mind and be vigilant. It can turn very, very quickly,” the strategist said.

Paul Sankey of Mizuho Securities previously mentioned that a “Tesla Effect” is starting to be felt in the oil markets. According to the analyst, the Tesla Effect is an increasingly prevalent concept today which states that while the 20th century was driven by oil, the 21st century will be driven by electricity. This, together with the growing movements against climate change today, does not bode well for the oil industry. Adam White, an equity strategist at SunTrust Advisory, stated that investors might not be looking at the oil market with optimism anymore. “A lot of damage has already been done. People are jaded towards the industry,” he said.

Prospective oil developments have been fraudulently overvalued, as claimed by a Complaint filed against Exxon. (Photo: Pixabay)

An analysis from Barclays points to the world’s reliance on oil peaking somewhere between 2030 and 2035, provided that countries keep to their low-carbon goals. The investment bank also noted that peak oil could happen as early as 2025 if more aggressive climate change initiatives are adopted on a wider scale. This all but makes investments in oil stocks very risky in the 2020s, and this risk gets amplified if electric vehicles become more mainstream. Sverre Alvik of research firm DNV GL described this concern. “By 2030, oil shareholders will feel the impact. Electric vehicles are likely to cause light vehicle oil demand to plunge by nearly 50% by 2040,” Alvik said.

Some of today’s prolific oil producers appear to be making the necessary preparations for peak oil’s inevitable decline. Amidst pressures from shareholders, BP, Royal Dutch Shell, and Total have expanded their operations into solar, wind, and electric charging, seemingly as a means to future-proof themselves. On the flipside, there are also big oil players that are ramping their activities. Earlier this month, financial titan Warren Buffet, who recently expressed his skepticism towards Elon Musk’s plan of introducing an insurance service for Tesla’s electric cars, committed $10 billion to Occidental Petroleum, one of the largest oil and gas exploration companies in the United States.

A Point of No Return

The auto industry is now at a point where a real transition towards electrification is happening. Tesla’s efforts over the years, from the original Roadster to the Model 3, have played a huge part in this transition. Tesla, as well as its CEO, Elon Musk, have awakened the public’s eye about the viability of electric cars, while showing the auto industry that there is a demand for good, well-designed EVs. Nevertheless, Tesla still has a long journey ahead of it, as the company ramps its activities in the energy storage sector. If Tesla Energy mobilizes and becomes as disruptive as the company’s electric car division, it would deal yet another blow to the oil industry.

At this point, it is pertinent for veteran automakers that have released their own electric cars to ensure that they do not stop. Legacy carmakers had long talked the talk when it came to electric vehicles, but today, it is time to walk the walk. German automaker Volkswagen could be a big player in this transition, as hinted at by the reception of its all-electric car, the ID.3. The ID.3 launch was successful, with Volkswagen getting 10,000 preorders for the vehicle in just 24 hours. The German carmaker should see this as writing on the wall: the demand for EVs is there.

The Volkswagen ID.3. (Credit: Volkswagen)

The Volkswagen ID.3 is not as quick or sleek as a Tesla Model 3, nor does it last as long on the road between charges. But considering its price point and its badge, it does not have to be. Volkswagen states that the ID.3 will be priced below 40,000 euros ($45,000) in Germany, which should make it attainable for car buyers in the country.  If done right, the ID.3 could be the second coming of the Beetle, ultimately becoming a car that redeems the company from the stigma of the Dieselgate scandal. Thus, it would be a great shame if Volkswagen drops the ball on the ID.3.

Tesla will likely remain a divisive company for years to come; Elon Musk, even more so. Nevertheless, Tesla and what it stands for is slowly becoming an idea, one that connotes hope for something better and cleaner for the future. And if history’s victories and tragedies are any indication, once something becomes an idea, an intangible concept, it becomes impossible to kill.

The Tesla Effect is reaching critical mass, and it could put Big Oil on the defensive


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Porsche Taycan Turbo first ride teases production specs and price, Turbo S and RWD GTS variant


Porsche recently granted Automobile Magazine a rare test ride in the Taycan Turbo, the top-tier variant of the company’s first modern all-electric car. The test drive provided what could only be described as the closest look yet at the upcoming vehicle, and based on the impressions of the magazine; it appears that the Taycan Turbo could very well become one of Porsche’s most iconic cars yet.

Porsche designed the Taycan with the same principles as its other vehicles. It’s luxurious inside and out, it handles like a sports car, and it is quick — very, very quick. The motoring magazine highlighted this in its test ride, stating that the vehicle has a habit of pushing drivers and passengers back into their seats when it accelerates from 0-60 mph in just over 3 seconds. The publication also noted that the Taycan is more reminiscent of the Porsche 911 than Porsche’s four-door flagship, the Panamera, based on the way the car handled itself despite its weight.

While the Taycan is undeniably impressive, the test ride did raise a particular concern for the vehicle: it’s charging infrastructure, which remains a work in progress. The Taycan could be charged with up to 250 kW at an 800V charge point, but there are only a few charging stations with that output today. Even 400V stations, which can charge the Taycan at around 150 kW, are still relatively few. One can only hope that Porsche can secure the Taycan’s charging infrastructure by the time the vehicle’s production version is unveiled this coming September.

A render of the Porsche Taycan’s production version. (Credit: St00k/Taycanforum.com)
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Perhaps most notable from the publication’s test drive were the details of the electric car that were revealed by the carmaker. For one, all Taycans, regardless of trim, are equipped with coated PSCB brakes, though carbon ceramic options are available. Similar to other electric vehicles, the Taycan is capable of regenerative braking as well, though the vehicle’s maximum regeneration is an impressive 250 kW. Higher-tier models also boast features like air suspension and rear-wheel steering.

Porsche is yet to fully announce the final specs of the Taycan, though a brand ambassador has confirmed the contents of a document obtained by the Automobile listing the features and specs of each Taycan version. According to the document, the base Taycan will be Rear Wheel Drive only, and it will be equipped with an 80 kWh battery pack. The base Taycan will be powered by a choice of 240-kW (322-hp) and 280-kW (375-hp) motors, and it will command a price in the low ~$90,000 range.

A render of the Porsche Taycan’s production version. (Credit: St00k/Taycanforum.com)

The vehicle’s mid-range variant, the Taycan 4S, will reportedly be equipped with a 96 kW battery pack and 320-kW (429-hp) or 360-kW (483-hp) electric motors. Pricing for the Taycan 4S will reportedly start in the high ~$90,000 range. The Taycan Turbo, which will be the vehicle’s top-of-the-line version upon its release, will reportedly feature a 96 kWh battery, a 160-kW (215-hp)/221-lb-ft motor up front, and a 300-kW (402-hp)/405-lb-ft motor at the rear. Pricing for the Taycan Turbo is expected to start at ~$140,000.

The Porsche Taycan is expected to be unveiled sometime this coming September, with the company offering the base, 4S, and Turbo versions to customers. At least two other variants of the Taycan will reportedly be unveiled later, one of which is a pretty insane 540-kW (724-hp) Turbo S version and a lighter RWD GTS trim that will most likely be incredibly fun to drive on the track. Porsche is also planning on improving its charging infrastructure in the near future, with peak charging rates for the vehicle increasing from 250 kW to 350 kW by 2021 at the latest.

The Porsche Taycan is arguably one of the most anticipated vehicles in the electric car market this year, particularly as it is one that has the potential to directly challenge the Tesla Model S in the premium EV segment. Porsche is moving full throttle to prepare for the Taycan’s production and ramp, with the company drastically upgrading its Zuffenhausen site to accommodate the manufacturing of the vehicle.

Porsche Taycan Turbo first ride teases production specs and price, Turbo S and RWD GTS variant


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SpaceX CEO Elon Musk reveals radical Starlink redesign for 60-satellite launch


SpaceX CEO Elon Musk has published the first official photo of the company’s near-final Starlink design and confirmed that Falcon 9 will launch a staggering 60 satellites on May 15th.

Known internally as Starlink v0.9, this mission will not be the first launch of operational satellites, but it will be the first internal SpaceX mission with a dedicated Falcon 9 launch. Additionally, the payload will be the heaviest yet launched by SpaceX, signifying an extraordinarily ambitious first step towards realizing the company’s ~12,000-satellite Starlink megaconstellation.

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Rewriting the satellite design book

Put simply, SpaceX’s Starlink v0.9 launch is extremely unique for several reasons. Aside from the unprecedented step of launching 60 spacecraft weighing ~13,000 kg (~30,000 lb) on a developmental mission, both the form factor of each satellite and the style of dispenser/payload adapter has never been seen before. SpaceX appears to have settled on a square dispenser with four separate quadrants for satellites. The satellites themselves look truly bizarre – it’s actually difficult to discern where one spacecraft stops and the next begins.

Nevertheless, it appears that each Starlink satellite is a relatively thin rectangle, possibly with a squared top and bottom. It’s also possible that they are all around rectangular and that the dispenser instead has two main sections. Either way, the very fact that the Starlink v0.9 payload can scarcely be parsed into recognizable satellites is thrilling. Aside from the rise of smallsats and cubesats, satellite design and engineering has been relatively stagnant for decades, particularly with respect to form factors and structural layouts. Most modern satellites are simply square-ish boxes with electronics inside and payloads bolted on the outside.

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

By all appearances, SpaceX’s Starlink beta satellites suffer from no such tried-and-true design tropes. This is a somewhat calculated risk, as those current tried-and-true satellite design rules are conservative but decidedly proven over dozens of years of orbital experience. To throw out the satellite design textbook is to invite an increased potential for failure in order to pursue entirely new ways of thinking, designing, building, and launching spacecraft.

Even relative to fairly innovative constellations like the SpaceX-launched Iridium NEXT and OneWeb look downright mundane when examined alongside SpaceX’s inaugural Borg-cube-esque payload. SpaceX’s Starlink layout looks like nothing seen before. At the same time, it appears that the bizarre, new approach has likely maximized the density and stacking efficiency of dozens of satellites to an unprecedented degree.

Despite using the same exact Falcon fairing that has been standard for years, SpaceX has managed to cram 60 spacecraft – each weighing around 200-300 kg – into just the bottom two-thirds of the fairing, leaving a considerable amount of unused volume for future expansion.

According to President and COO Gwynne Shotwell, Starlink v0.9 satellites are extremely close to SpaceX’s true final design. However, they are still considered by SpaceX to be a “test batch” of satellites and do not have the optical (laser) interlinks that will be a critical part of Starlink’s unique constellation design. The mission is currently scheduled to launch at 10:30 pm EDT (02:30 UTC), May 15th and will have a flexible four-hour window. The mission will be preceded by a routine Falcon 9 static fire no earlier than (NET) May 13th.

Update:

According to Musk, SpaceX has actually entirely gotten rid of a satellite-dispenser middle-man, instead relying on the structure of the satellites themselves to act as their own launch adapters and deployment mechanisms. This has been done in the past on a far smaller scale – typically with 2-3 several-ton satellites – but has never been attempted at the scale SpaceX is just days away from launching.

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

SpaceX CEO Elon Musk reveals radical Starlink redesign for 60-satellite launch


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Tesla Model 3 goes head-to-head against BMW 330i in automatic parking battle


A Tesla Model 3 was recently pitted against a 2019 BMW 330i (G20) in a practical automatic parking test, with both vehicles being required to perform a parallel parking maneuver in a relatively tight spot. The results of the comparative test were very interesting, and they all but show that not all parking assist features are created equal.

The 2019 BMW 330i is quite literally brimming with tech, being equipped with a series of safety and convenience features such as Active Guard Plus, Lane Departure Warning, Collision and Pedestrian Warning with City Braking, and of course, Parking Assistant, which is capable of automatic perpendicular and parallel parking maneuvers. The 2019 BMW 330i even includes Reversing Assistant, a clever capability that the German automaker describes as “automated reversing in confined spaces or situations where the driver does not have a clear view, such as multi-story car parks or entrances to courtyards.”

Here’s BMW’s how-to video for Parking Assistant.

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The Tesla Model 3, on the other hand, features Autopark, which utilizes the vehicles’ Autopilot cameras to enable one-touch automatic parking maneuvers. Tesla’s Autopark has been around since 2015 as part of Autopilot, though the feature has since been moved to the Full Self-Driving suite. Tesla’s Autopilot and Full Self-Driving features are constantly being improved and updated through the continued training of its neural network, which gathers real-world data from the company’s fleet.

Here’s Tesla’s video demonstration for Autopark.

The test of the two vehicles’ automatic parking systems was conducted by the hosts of YouTube’s Good Drive channel. First off was the 2019 BMW 330i and its Parking Assist, which promptly ignored the parallel parking slot selected by its driver. The BMW instead attempted to park in a larger space, though its driver eventually canceled the Parking Assist maneuver due to the 330i getting too close to the vehicle in front.

The YouTube hosts gave the 2019 BMW 330i’s Parking Assistant another chance, and this time, the German sedan detected the actual spot selected by its driver. Unfortunately, the 330i didn’t recognize the space as a slot for parallel parking, resulting in the vehicle performing a perpendicular parking maneuver instead. Thus, while the BMW successfully parked itself (technically), the end result was rather awkward, with the vehicle being perpendicularly parked in a parallel parking slot.

The Tesla Model 3’s Autopark test proved a lot smoother. As soon as the automatic parking sequence was activated, the electric sedan eased into the tight parking space, making adjustments as necessary. The channel’s host later noted that while he would have managed to parallel park the car faster if he was in control of the Model 3, the Tesla’s Autopark system moved in a manner very similar to a human driver nonetheless.

Tesla is currently in the process of developing and refining its Full Self-Driving features, which Elon Musk expects will be “feature complete” by the end of the year. FSD, and in extension, Autopark, is a key component of Elon Musk’s plan to launch the Tesla Network, an autonomous ride-sharing service expected to disrupt companies such as Uber and Lyft.

Watch the Tesla Model 3 and the 2019 BMW 330i (G20) go head-to-head in an automatic parking battle in the video below.

Tesla Model 3 goes head-to-head against BMW 330i in automatic parking battle


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Tesla dubbed as Most Loved Brand in Auto Trader’s 2019 New Car Awards


Tesla was recently dubbed by automotive classified advertising firm Auto Trader as the Most Loved Brand in the industry in its 2019 New Car Awards. According to the company, Tesla appears to have formed the strongest connection with its customers among carmakers today.

The Most Loved Brand award was determined through an analysis of feedback collected from a survey of over 60,000 vehicle owners, who rated their cars in 16 key metrics. Tesla ultimately came out on top, propelled by a community of enthusiastic owners who proved particularly passionate about the brand.

Auto Trader listed a number of notable responses from its survey of Tesla owners. One owner noted that a Tesla is simply “better on every metric,” considering its “space, performance, tech features,” and the fact that it gets better with age thanks to over-the-air updates. Another owner described Teslas as “insanely safe,” feeling “strong and controlled, even on snow and ice.” Particularly notable was an owner who stated that Teslas are great due to their environmentally-friendly characteristics. “It doesn’t cause any air pollution. I can look my children in the eye and say I didn’t contribute to doing that,” the Tesla owner said.

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The automotive advertising firm noted that technology was a prominent theme among the feedback from Tesla’s customers. Features like Autopilot, which makes driving easier, and the Supercharger Network, which makes recharging vehicles more convenient, saw notable mentions as well. Lastly, the raw power of Teslas also received a lot of positive feedback from electric car owners.

Auto Trader road test editor Ivan Aistrop discussed the results of the company’s survey, as well as Tesla’s win. “Our research shows that pioneering technology and the feel-good factor of electric motoring certainly play their part in Tesla owners’ enthusiasm about their cars, but there’s more to it than that. Tesla has managed to make electric motoring cool, and that’s a trick that not many other electric car manufacturers have managed to pull off so far. What owning a Tesla says about you seem to be as important to owners as the car itself, and for a company trying to build brand loyalty and desirability, that’s a masterstroke,” he said.

Considering the ever-growing community of passionate Tesla owners, it is no surprise that Auto Trader listed the company as the Most Loved Brand in its 2019 New Car Awards. Tesla, after all, is a carmaker which holds a strong social media presence despite not spending anything for advertising. As icing on the cake, the company’s CEO, Elon Musk, is also highly involved in communicating with owners and enthusiasts on Twitter, further strengthening Tesla’s brand.

Watch Auto Trader’s announcement of Tesla’s win in the Most Loved Brand category of its 2019 New Car Awards in the video below.

Tesla dubbed as Most Loved Brand in Auto Trader’s 2019 New Car Awards


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TesPlayer brings Spotify access to Tesla Model S, 3, X owners


Tesla owners finally have a way to play Spotify in their Model S, Model X and Model 3 thanks to third-party, browser-based app ‘TesPlayer‘ that can manage playlists and play music directly from the vehicle’s center touchscreen.

Spotify is among the most popular music streaming platforms on the market today, thanks in part to its vast library of content. Tesla uses Spotify as its provider of choice in Europe, though vehicles in the United States are equipped with Slacker Radio instead. While Slacker is impressive on its own right, it falls short when compared to Spotify and its insanely vast plethora of content.

Ahead of  Tesla’s official integration with Spotify in the US, TesPlayer creator Michael Latman found a workaround that allows owners to interact with the service using the vehicle’s latest Chromium browser.

(Credit: Teslarati)
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TesPlayer is essentially a Spotify remote for Tesla’s in-car web browser. It still utilizes a smartphone’s Bluetooth connection, though it allows owners to browse through tracks and playlists from the Model S, Model X, and Model 3 infotainment screen.

Tesla owners must be an existing Spotify Premium subscriber and have firmware 2019.12.x to be able to leverage the services of TesPlayer. The Spotify app must also be installed on a mobile phone and connected to the vehicle via Bluetooth.

How to play Spotify in a Tesla

  • Step 1: Pair your smartphone to a Tesla Model S, Model X, or Model 3 using Bluetooth.
  • Step 2: Click the Bluetooth icon on the upper right corner of the vehicle’s center touchscreen and set “Media Source” to your phone.
  • Step 3: Open Tesla’s web browser from the center touchscreen and navigate to https://tesplayer.com/. This will launch TesPlayer. Bookmark the page.
  • Step 4: Login to TesPlayer using your Spotify Premium account credentials. TesPlayer saves users’ login credentials for convenience.
  • Step 5: Once logged in, your Spotify playlists and favorites will appear directly on the vehicle’s center touchscreen and can be accessed.

Tesla Model 3 owner and  Youtuber Tesla Raj has a great tutorial on the setup process. As noted by Tesla Raj, TesPlayer is in early stages but additional features to enhance the user experience such as Shuffle, Search, Artists, and Browse, will be making their way in future builds. 

TesPlayer brings Spotify access to Tesla Model S, 3, X owners


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Tesla amazes Edmunds after Model 3 receives more power ‘out of thin air’


American auto information services company Edmunds recently tested its Long Range RWD Model 3 to confirm if it is possible to improve a vehicle’s performance without new parts or a trip to a Tesla service center. By the end of its tests, Edmunds concluded that the auto industry is now at a point where cars can gain more power out of thin air.

Tesla’s Peak Power Increase update was mentioned by the electric car maker when it introduced the $35,000 Standard Model 3 in a blog post at the end of February. The update was rolled out by the company soon after, explaining in its release notes that peak power had been increased by around 5%, improving acceleration and performance. Edmunds decided to take their own Model 3 to the track, to confirm if the electric sedan really got faster after receiving the software update.

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Prior to the update, Edmunds‘ Long Range Model 3 RWD was doing 0-60 mph runs in 5.3 seconds, hitting the quarter-mile mark in 13.6 seconds. While feature content manager Carlos Lago noted that he really did not feel much difference in the vehicle’s performance after the update, the Model 3’s numbers told a different story. As indicated by instruments installed on the electric sedan, the Model 3’s 0-60 mph time was reduced to just 5.0 seconds after the update, an improvement of 0.3 seconds. The car’s quarter-mile performance also saw a slight improvement at 13.5 seconds.

Overall, Edmunds was quite impressed with Tesla, considering that the company legitimately added more power to the Model 3 over the air, at zero cost to electric car owners. Unlike power boosts in internal combustion vehicles, Tesla’s Peak Power Increase required no new parts or a trip to the service center. That’s mighty impressive, especially for non-Performance vehicles like the Long Range RWD Model 3.

Tesla’s Peak Power Increase has already helped other Model 3 achieve greater feats on the track. One such vehicle, a Model 3 Performance, ended up facing a literal supercar in the form of a Ferrari 458 on the drag strip, and partly thanks to its OTA power boost, it was able to outrun its Italian-bred competitor. That’s not bad at all for Tesla’s most conservatively-specced vehicles to date.

Watch Edmunds‘ test of its Model 3 in the video below.

Tesla amazes Edmunds after Model 3 receives more power ‘out of thin air’


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Tesla battery partner Panasonic sees higher Gigafactory output, cites Model S/X demand increase


Panasonic President Kazuhiro Tsuga recently discussed some details about the Japanese corporation’s existing operations with American electric car maker Tesla. According to the executive, Panasonic expects to see higher yields from Gigafactory 1 as operations get optimized, and there could be a potential upside in Model S and X demand as Tesla takes actions to make its flagship vehicles more attractive to consumers.

Tsuga’s comments about Tesla were a response to an inquiry during a Q&A session following Panasonic’s release of its fiscal 2019 financial results. Tsuga pretty much confirmed what Elon Musk mentioned on Twitter last month, stating that Gigafactory 1 is currently operating at about 24 GWh despite the facility having a theoretical capacity of 35 GWh. “For Tesla, 35 GWh initial investment has been completed already, and utilization as per Elon is maybe 24 GWh currently. This year, we want to increase this (utilization) rather significantly,” he said.

Explaining further, Tsuga noted that efficiencies in Gigafactory 1 should improve in the near future, particularly as its higher-speed production lines get optimized further. “Including the lines that have yet to start, we have three fast, higher speed lines, and when they become operational, we will see improved efficiency. And when we shifted tools, we were not really able to do sufficient verification of the facilities. We saw disruptions, and we now know the reasons. And so in June, we will start replacing the jigs, and therefore, the number of cells and the yield will improve quite a bit,” Tsuga said.

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Among the improvements mentioned by the Panasonic President involved tapping into the local workforce for the Nevada Gigafactory. This, according to the executive, will ultimately lower fixed costs. Tsuga also noted that he expects the demand from Tesla to be good enough for the full capacity of its production lines on the site.

“Through the localization of the workforce, we will have fewer Japanese expats (on Gigafactory 1), and that is progressing. And we are seeing an increase in the number of lines that can be operated only by the local personnel, and that can reduce fixed costs as well. So overall, we can expect improvement. Of course, the demand from Tesla is going to be good enough for the full capacity (of our equipment), that is the assumption. Should that assumption hold, the Tesla battery business can break even this year (for Panasonic),” he added.

Particularly compelling were Tsuga’s comments about the demand for batteries used in Tesla’s flagship vehicles, the Model S and Model X, both of which utilize 18650 cells. While sales of the flagship sedan and SUV have seen a drop in recent months, the Panasonic President stated that demand for the Model S and X could increase once more, especially as Tesla takes the initiative to push the vehicle to customers. “As for Model X (and S), last quarter, we saw a decline, but Tesla is already making efforts and taking actions to revamp that demand. We’re talking with Tesla on this, and so there is upside potential there,” Tsuga said.

The comments from the Panasonic President about the Japanese corporation’s partnership with Tesla all but suggests that the two companies remain closely working with each other to improve the output of Gigafactory 1. Speculations about Panasonic moving away from its partnership with Tesla made the rounds in the media last month, fueled by a report from the Nikkei Asian Review which stated that the Japanese company is freezing its investments in the Nevada-based facility.  Tesla responded to the Nikkei report when it was released, explaining that there is far more output to be gained by improving the facility’s existing lines than previously estimated. These comments seem to be in step with the Panasonic President’s recent statements.

Panasonic President Kazuhiro Tsuga’s discussion on Tesla could be accessed here (kindly skip to 33:28 in the video).

Tesla battery partner Panasonic sees higher Gigafactory output, cites Model S/X demand increase


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SpaceX stacks orbital Starship sections as Elon Musk teases June 20th event


SpaceX CEO Elon Musk says he will provide a public update on the development status of Starship and Super Heavy in an official presentation later this summer, possibly as soon as June 20th.

Meanwhile, SpaceX’s South Texas team have been busy at work on both Starhopper and a newer Starship, said by Musk to be the first orbit-capable prototype. In the last week, technicians have begun stacking several sections of the vehicle’s stainless steel hull, all fabricated and welded together side-by-side. On Thursday, May 9th, this progressed to the installation of the Starship’s first gently tapered nose section atop its cylindrical tank section. Likely the second- or third-to-last major stack before its aeroshell is assembled into one piece, the orbital prototype is starting to truly resemble a real Starship.

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They grow up so fast…

CEO Elon Musk revealed SpaceX’s Mars colonization architecture back in September 2016 and has since provided design and development updates every 6-12 months. Between then now, Starship/Super Heavy (formerly BFR, fore-formerly ITS) has radically changed. Originally baselined with a diameter of 12 m (40 ft), an almost entirely carbon composite design, and a spaceship with bulky tripod fins/wings, SpaceX helped design, build, and test a full-scale liquid oxygen tank.

Six months after the tank was destroyed (likely intentionally) during testing, Musk announced in Sept. 2017 that ITS was now called BFR and would feature a leaner 9m (30 ft) diameter. He also revealed tentative plans to enlist BFR in a point-to-point Earth transportation scheme offering travelers access to almost anywhere on Earth in ~30 minutes. In September 2018, the design changed once more, gaining ~10m of height and three mobile tripod fins/wings/legs. Finally, just a few months after the 2018 update, Musk revealed that SpaceX was moving almost entirely away from carbon composites and would instead use stainless steel throughout BFR’s structure. BFR was also renamed to Starship/Super Heavy.

An overview of a range of proposed medium launch vehicles, including ABL Space's RS-1, Firefly's Beta, and Relativity's Terran. (Teslarati)
The change in scale and design between ITS, BFR, and BFR 2018 is significant. (Teslarati)
SpaceX’s latest stainless steel Starship is pictured here on the Moon and Mars. (SpaceX)

Episode 4: Revenge of the Steel

Given SpaceX’s breakneck pace of Starhopper and Starship development, it’s possible that Musk’s “probably June 20th” event is meant to correlate with a yet-unknown Starship or Starhopper milestone. Back in early January, Musk suggested that the first orbital Starship prototype could be “complete” as early as June. However, a few weeks later, Starhopper suffered a setback when its facade/nosecone toppled over and was irreparably destroyed.

Several months distant, it’s hard to actually say if that hardware loss has impacted SpaceX’s schedule much at all. Sans nose section, SpaceX instead conducted a number of wet dress rehearsals and successfully ignited Raptor and jumped the tethered Starhopper a few feet in early April, more or less right on schedule per a December 2018 Musk tweet.

At this point in time, it’s highly unlikely that the orbital Starship prototype will be truly complete just a month or two from now. Most notably, “completion” would require seven flight-ready Raptor engines, of which SpaceX is known to have only completed 3-4 in the last four months. Despite an apparent lack of Raptors for a June completion of the orbital prototype, it may actually be possible for SpaceX to complete (in a very rough sense) the main structure of the Starship.

Major progress has been made in the last few weeks and the orbital prototype is starting to look more and more like an actual Starship. Aside from finishing the vehicle’s propellant and header tanks and engine section/thrust structure, SpaceX still needs to install avionics, wiring, plumbing, cold-gas maneuvering thrusters, COPVs, access and umbilical ports and panels, an entire heat shield, its tripod wings/fins/legs, and more. At the same time, it’s unclear if SpaceX will attempt to send Starship to orbit on its own before the first Super Heavy booster prototype is complete, an even more massive undertaking ahead of the company.

On April 27th, SpaceX technicians stacked two subsections of Starship hull. (NASASpaceflight – bocachicagal)
Three sections of orbital Starship become two. (NASASpaceflight – bocachicagal, May 6th)
On May 9th, technicians joined the above two sections into one monolithic piece of Starship. (NASASpaceflight – bocachicagal)
SPACESHIP!1!! (NASASpaceflight – bocachicagal)

For now, all we can do is wait and watch SpaceX’s gloriously bizarre steel Starship prototype continue to grow, while Starhoppper prepares for untethered hops a few thousand feet to the east. Things could be worse!

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

SpaceX stacks orbital Starship sections as Elon Musk teases June 20th event


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Tesla Model 3 gets back on US’ Top 10 list for best-selling passenger cars


The Tesla Model 3 is back among the list of the United States’ best-selling passenger cars in the market today. As revealed by the figures of auto sales tracking website GoodCarBadCar, the Model 3 was the 9th best-selling car in the country in April, the first time it breached the Top 10 list since December 2018.

The Model 3 made a significant impact on the US’ passenger car market last year, ending December as the 5th best-selling car in the market with 25,250 units sold. When the year ended, the Model 3 was only behind the four most ubiquitous passenger cars in America: the Toyota Camry, Honda Accord, Honda Civic, and the Toyota Corolla. Unfortunately for the electric sedan, it dropped out of GCBC‘s Top 10 best-selling passenger cars list from January to March 2019 as Tesla focused on pushing the vehicle to international markets, and as the federal tax credit for US buyers was reduced to $3,750.

The Top 10 best-selling passenger cars in the USA in April 2019 (not counting passenger cars from Ford and GM). (Credit: GoodCarBadCar)
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The auto sales tracking site only registered 6,500 Model 3 sold in January and 5,750 in February, though sales of the electric sedan saw a spike in March as more affordable variants like the Standard Range Plus were introduced. GCBC listed 10,175 Model 3 sales in March, which was a considerable increase over January and February’s figures but not enough to make it to the sales tracking site’s Top 10 best-selling passenger cars’ list.

GoodCarBadCar listed 10,050 Model 3 sales in April, and while the number is less than March’s figures, it was nonetheless enough to earn a place in the month’s Top 10 list for best-selling passenger cars. The Model 3’s numbers are quite impressive overall, especially since most of its competitors, including the Toyota Camry, Honda Accord, and Toyota Corolla, saw declines in year-over-year sales, possibly due to the US auto market shifting heavily towards the SUV and truck segment.

Sales of the Tesla Model 3 comparing 2018 to 2019. (Credit: GoodCarBadCar)

These factors all but make the Model 3’s comeback even more impressive. It should be noted that large numbers of Model 3 produced by Tesla today are sent to international markets, which means that the United States is only receiving a portion of the electric cars being manufactured by the company. Model 3 buyers also get tax credits that are half of what buyers in 2018 received. Thus, the over 10,000 Model 3 sold by Tesla in March and April all but hint at some serious, steady demand for the electric sedan.

Tesla is expected to continue its international Model 3 push this year, with the company opening orders for right-hand-drive territories this month. Model 3 deliveries for these markets, which include the UK, Australia, Japan, and Hong Kong, are expected to begin at the latter half of the year.

Tesla Model 3 gets back on US’ Top 10 list for best-selling passenger cars


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