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Video of Tesla Semi effortlessly pulling Model 3 cargo is a glimpse at the future of deliveries

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Posted on March 31, 2019


Tesla’s Semi Truck is nearing production readiness, and a new video showing the long hauler transporting its brethren Model S, Model 3, and Model X all-electric vehicles demonstrate the company’s continued commitment to its development.

A photo of the Tesla Semi truck with its full trailer attachment was first teased by CEO Elon Musk on Twitter, but the seemingly effortless, acceleration of the massive truck despite a heavy cargo load can only really be appreciated when seen in action.

A Model S camera car is seen following close behind as the Semi Truck leaves the frame, indicating that a full production video is likely to be forthcoming.

via Gfycat

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Utilizing the Tesla Semi truck for delivery of its all-electric vehicles will allow the company to come full circle on its sustainable energy goals, as it relates to shipping and logistics. Musk has said in the past that Tesla intends to produce its own cargo carriers for vehicle deliveries, but is currently purchasing trucks and trailers to help satisfy increasing demand.

Sightings of Tesla Semi test mules have been somewhat frequent since its November 2017 unveiling, indicating that progress has still been ongoing for the hauler despite the company’s main priority to expand into the consumer car market. Elon Musk acknowledged the impact its other commitments have had on the California-based company’s efforts.

“We’ve been so mired in production & logistics for past 18 months. Really looking fwd to getting Semi into production,” he said via Twitter.

Tesla Semi hauling Tesla Model S, 3, and X cars. | Credit: Tesla

The Model 3 created a sales surge which manifested into a production and logistics “hell” for the all-electric car maker. However, lessons learned from that struggle will likely carry into a smoother future for its Semi manufacturing efforts. The initial time frame for production of the Tesla Semi is sometime this year, as predicted by Musk.

RELATED: Tesla adds Semi truck diecast toy in 1:24 scale to its online store

Test drive events have also been offered to some Tesla Semi reservation holders, providing valuable feedback from the industry that it hopes to win over.

Once the Tesla Semi is in customers’ hands and on the road, it has the potential to be a true disruptor in the trucking industry. Its stats, for one, are certainly desirable: 0-60 mph in 5 seconds, 500+ mile battery range supplemented by a “Megacharger” network, autonomous convoy technology, unparalleled visibility, and 80,000 lb load capacity.

Savings of $200k in fuel per one million miles driven makes the financial case for conversion from diesel-powered haulers to the all-electric Tesla Semi. Competitors with alternative energy powerhouses are beginning to pop up, Nikola Motor Company being one, but for now, Tesla is taking the lead and will potentially have the upper hand in the industry for a notable amount of time.

Video of Tesla Semi effortlessly pulling Model 3 cargo is a glimpse at the future of deliveries


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Tesla Model S makes it home after dramatic transatlantic theft and rescue

Simon Alvarez

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Posted on April 1, 2019


When Soby of Evoto Rentals handed the key fob of one of the company’s Tesla Model S to a client that booked and paid for the electric car in advance, the businessman did not realize that it would mark the start of a long, arduous pursuit that would take the vehicle from the shipping yards of Montreal, Canada, to the shores of Italy. With its web of intrigue, near-misses, and a dramatic rescue, the story of Evoto Rentals’ stolen Model S could very well be one of the most compelling Tesla tales that has emerged to date.

A Booking Gone Wrong

It all started with a seemingly innocent booking. The client appeared to be a regular customer that merely wished to rent a Model S for a week. Everything seemed fine when the car was being booked. The deposit went through, and the entire rental fee was paid through a credit card. The customer drove off, and the electric car rental company thought that it was business as usual.

Things started to get strange. Monitoring the Model S through GPS, the businessman was a bit surprised to see the customer parking the premium electric car at a container packing company located on the outskirts of Montreal. The car stayed in the same location for 48 hours, and then the triangle representing the vehicle turned gray. With red flags all over the situation, the businessman tried emailing and calling the client, before realizing that the email address provided was a throwaway and the mobile number was from a burner phone.

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The Escape

The businessman promptly reported the incident to the police, but the police explained that the circumstances were a civil matter since Evoto had rented the vehicle to the client. The police also commented that car thefts were low on their priority, so it might take a couple of months before a judge could look into the incident. Evoto Rentals would also be required to show proof that it attempted to contact the client after the rental period was over, such as physical letters sent by registered mail to the customer’s address.

The businessman opted to ring up the company’s lawyer and Tesla, both of whom advised against waiting as the vehicle could be shipped overseas. The electric car rental company hired a private investigator to scout the last known location of the vehicle, who was able to get some information about the nature of the cargo packing firm’s activities. Thanks to some help from Evoto’s lawyer, a search warrant from the police was secured, and the packing company’s site was searched.

The packing company claimed innocence, arguing that they believed the Tesla Model S was just another second-hand vehicle that was being shipped overseas. The company even provided camera footage to show the person who drove the electric car to the location. The contact information to the shipping company that was tasked to take the vehicles abroad was given as well. The shipping company was immediately called, but not long into the conversation, the businessman’s heart sank. The container that had Evoto’s Model S had just sailed towards the Middle East, and the vehicle was already in international waters.

The Rescue

With the pursuit of the Model S now extending far beyond Montreal, the EV rental company coordinated with the authorities to get INTERPOL involved. The ship was expected to have a layover in Italy, which presented an opportunity to retrieve the Tesla. This required some more paperwork to get the right authorities involved, as Evoto had to ask local police to make a request to the Royal Canadian Mounted Police (RCMP), who in turn created a request to INTERPOL, who, in turn, notified the Italian police to seize the ship when it arrived in the country. In a stroke of luck for Evoto, INTERPOL and the Italian police worked quickly, getting everything ready within a week.

The operation was a success, and the container carrying the stolen Model S was retrieved. As it turned out, the thieves cleverly declared that the container was filled with scrap metal so as not to arouse suspicion. When authorities opened the container, they did find scrap metal inside. But also inside the container was Evoto Rentals’ Tesla Model S, caked in dust, but miraculously undamaged from its harrowing ordeal.

Coming home

After more paperwork from the electric car rental company, the Tesla Model S was finally shipped home to Canada. Not including legal fees, Evoto ended up spending about US$21,000 to get their electric car back from Italy. Fortunately, most of the costs were covered by insurance. The stolen Model S finally made it home recently, where it was welcomed by the Evoto Rentals team.

While the theft of the vehicle was an emotionally draining ordeal, the businessman was nonetheless grateful for the help that Evoto received which made it possible to retrieve the stolen electric car. The EV rental company also gave particular thanks to Tesla for the electric car maker’s help, as well as the Model S’ technologies that made it easy to trace the vehicle’s location even after it left Montreal. The businessman learned a lesson too, as Evoto Rentals now conducts background checks for its clients before handing over a vehicle. A second GPS tracking system has also been installed on the company’s fleet of Model S, Model X, and Model 3.

Teslas are among the most challenging vehicles to steal. Fank Scafidi, director of public affairs at the National Insurance Crime Bureau, which crunched data from the Federal Bureau of Investigation’s National Crime Information Center, noted that 112 out of 115 stolen Teslas have been recovered from 2011 to May of 2018. “That’s about as good as it gets. I’m wondering if the thieves’ intellect might have been overwhelmed just sitting in a Tesla, much less figuring out how to operate it for any length of time,” he said. Apart from their tech, Teslas also have a suite of security features, including those that are introduced through a software update, such as Sentry Mode.

Tesla Model S makes it home after dramatic transatlantic theft and rescue


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GM refuses Tesla’s tax credit strategy, will adopt dealer-based ‘incentives’ instead

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Posted on April 1, 2019


General Motors (GM) is now the second vehicle manufacturer to sell 200,000 electric cars, triggering a phaseout period for the $7,500 federal tax credit for electric vehicle buyers. To address the tax credit’s phaseout, GM has decided to favor new, non-specified “incentives” to keep its electric vehicles competitive.

“It is easier to react to the market by working with dealers and your marketing team than it is to change sticker prices,” GM spokesman Jim Cain commented on the issue, also noting that GM is “sensitive to affordability” in the electric car market.

GM’s reaction to the phaseout period of the $7,500 stands in stark contrast to that of Tesla. When the electric car maker reached the 200,000 threshold last July, the company quickly made its future buyers aware of the impact the federal tax credit phase out would have on their vehicle prices. The prices of its vehicles were promptly adjusted to buffer some of the increase brought about by the reduced federal tax credit, which was halved to $3,750. As could be seen in GM’s recent statement, it appears that the experienced American carmaker is not prepared to show this type of flexibility just yet. 

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Under the existing tax credit system for electric vehicles, buyers must wait until their annual taxes are complete before receiving the incentive. A new federal bill, dubbed the Electric CARS Act of 2018, was proposed last year to both extend the full $7,500 credit until 2028 regardless of the number of vehicles sold.

Under the proposed bill, electric car buyers would receive an immediate discount off of the car’s sticker price at the time of purchase. The bill is currently still being considered by the Ways and Means Committee. In California, a $2,500 local subsidy has backing from lawmakers to increase its amount to $4,500, a move meant to buffer the impact of a reduced federal credit.

Tesla exhibits its electric cars and energy products at the 2018 LA Auto Show. [Credit: Christian Prenzler/Teslarati]

Tesla’s introduction of the $35,000 Model 3 Standard Range has ushered in a new consumer market for the California-based company focused on affordability, as intended. Absorption of external costs looked to be a move aimed at keeping customers happy while delivery delays and manufacturing setbacks hindered buyers’ ability to take advantage of the tax credit.

Prior to the Model 3 Standard Range release, large auto manufacturers like GM produced the only affordable electric vehicle options. Tesla’s competitive pricing angle makes GM’s “incentive” strategy interesting, especially now that the hybrid Chevy Volt has ceased production following a 23% reduction in sales last year. GM is also ramping up production and sales efforts for the Chevy Bolt and has vowed to launch another 20 electric car models by 2023.

GM refuses Tesla’s tax credit strategy, will adopt dealer-based ‘incentives’ instead


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Tesla remains volatile towards Q1’s end, analysts remain divided on Model 3 deliveries

Simon Alvarez

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Posted on March 29, 2019


Tesla stock (NASDAQ:TSLA) remains volatile as the electric car maker approaches the end of the first quarter, and as analysts continue to be divided over the company’s capability to deliver the Model 3 to buyers across North America, Europe, and China.

Ryan Brinkman at J.P. Morgan is among Tesla’s skeptics, recently reiterating his Underweight rating for TSLA stock in a note to clients. Brinkman lowered his price target from $230 to $215 per share over what he claimed were reports of delays in shipping the Model 3 to Europe and China. The J.P. Morgan analyst estimates that Model 3 deliveries for the first quarter will number 50,000 units, which are below the FactSet consensus of 54,600. 

“Any delays in delivering vehicles to Europe and China carry the potential for a disproportionate impact on 1Q deliveries (and, hence, revenue, margin, and cash flow), given the already guided back-end-loaded nature of 1Q deliveries,” Brinkman wrote.

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Baird analyst Ben Kallo, a longtime TSLA bull, is taking a more optimistic stance. In a note on Thursday, Kallo stated that any updates from Tesla about the $35,000 Model 3 will likely be positive for the stock. Kallo reiterated his Outperform rating on the electric car maker, as well as his $465 price target, which is far ahead of FactSet’s average of ~$335 per share.

“Any update on Model 3 demand/backlog, particularly after the introduction of the $35,000 variant, would be positive for the stock. We think Tesla could provide an updated demand outlook or backlog (especially following the $35,000 model unveil), which we think could exceed expectations and would be positive for the stock,” Kallo wrote.

With Model 3 deliveries starting in Europe and China, and amidst the reduced federal tax credit in the United States, Tesla is fighting an uphill battle. Musk has previously admitted that Tesla might not be profitable this quarter, though he has nonetheless urged the company’s employees to push as many vehicles as possible. In his message, Musk noted that Tesla should aim to deliver as many as 30,000 vehicles in the last two weeks of March.

Reports from the Tesla community in Europe and China depict an end-of-quarter push that is fully underway, with images and footage of full delivery centers being shared online. A Tesla owner-volunteer from China even shared in a social media post that one delivery center was able to deliver more than 200 Model 3 in one day. The next few days will determine if Tesla will be able to pull another rabbit out of the hat this quarter. If these reports of mass deliveries are any indication, there is a pretty fair chance that Tesla could defy the odds and pleasantly surprise Wall Street once more.

As of writing, Tesla stock is trading -0.07% at $278.20 per share.

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

Tesla remains volatile towards Q1’s end, analysts remain divided on Model 3 deliveries


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Porsche Taycan enters final testing phase ahead of September reveal

Simon Alvarez

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Posted on March 29, 2019


Just months before its production version is unveiled, the Porsche Taycan is entering its final testing phase. Spanning multiple countries and involving various driving conditions, the experienced carmaker is ensuring that its first all-electric car is tempered on the road just as much as its gas-powered peers.

Porsche engineers are currently taking advantage of the summer in the Southern Hemisphere to test the Taycan’s driving dynamics in warm temperatures. At the same time, teams from the company are also testing the vehicle in Scandinavia, just a few miles away from the Arctic Circle, to evaluate the electric car’s performance in frigid temperatures. Porsche notes that the Taycan’s testing spans 30 countries, in temperatures that range from -35 to 50 degree Celcius (-31F to 122F).

The Porsche Taycan gets tested in South Africa. (Credit: Porsche)
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Head of BEV at Porsche Stefan Weckbach mentions in a press release that the real world tests are being conducted after the vehicles passed through millions of miles in simulations. By the end of the Taycan’s testing phase, the vehicles are expected to cover millions of real-world miles.

“After carrying out computer simulations and comprehensive bench tests early on, we have now reached the final phase of this demanding testing programme. Before the Taycan is launched on the market at the end of the year, we will have covered approximately six million kilometers across the globe. We are already very happy with the current status of the vehicles. The Taycan is going to be a true Porsche,” he said.

It’s not just the Taycan’s driving dynamics that are being evaluated in the vehicle’s final testing phase. The Taycan’s batteries, which use the company’s 800-volt architecture and LG’s pouch cells, are also being tested intensively. Over the final testing phase, Porsche estimates that the Taycan should go through over 100,000 charging cycles using various charging solutions that are compatible with the electric vehicle.

The Porsche Taycan gets tested in Sweden. (Credit: Porsche)

The Porsche Taycan is set to be revealed this coming September. Being the company’s first all-electric car, the Taycan is incredibly vital for the carmaker. To prepare for its production, Porsche is revamping its historic Zuffenhausen site, which will hold the manufacturing line for the Taycan and later, its derivative, the Taycan Cross Turismo. Highlighting the importance of the Taycan to its future, the company has decided to produce the Taycan alongside its flagship vehicle, the new Porsche 911. 

Porsche initially plans to start the Taycan’s production at 20,000 units per year, though positive reception from reservation holders have encouraged the company to raise its estimates for the all-electric car’s manufacturing. The Taycan will be capable of sprinting from 0-60 mph in under 3.5 seconds and have a range of over 300 miles on one charge. The all-electric car is designed to support 350 kW charging, making it possible to replenish over 60 miles of range in just 4 minutes.

Porsche Taycan enters final testing phase ahead of September reveal


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Nikola announces $14 million fuel cell lab investment in run-up to Semi-truck event

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Posted on March 28, 2019


Tesla Semi Truck rival Nikola Motor Company has announced a $16 million equipment purchase for its hydrogen fuel cell laboratory, representing an initial investment of several hundred million dollars planned. The laboratory represents a critical component in Nikola’s plan to provide high-quality, high-efficiency fuel cell technology at a pace quick enough to meet the needs of the trucking industry as it drives towards an alternative-power future.

“We believe the fuel cell will replace the diesel engine in the next 10 years,” Trevor Milton, CEO of Nikola stated in recent press release. “This lab will be filled with extremely talented fuel cell engineers and is a critical part in our truck development — enabling Nikola to set a new efficiency benchmark for heavy-duty fuel cell systems.”

Nikola intends to develop its laboratory into the most advanced research and development facility of its kind, enabling the development, validation, and testing of its entire fuel cell system in one place, dedicated to their particular needs. The centralization of these essential functions and capabilities will reduce the time required to meet Nikola’s mission milestones using other manufacturers and third-party labs by half. “It is a race to the finish line now for our team,” Milton added, also indicating the interest other OEMs have expressed for the company’s fuel cell drivetrain and hydrogen stations.

Nikola One semi truck. | Credit: Nikola
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The fuel cell laboratory is the second major recent investment announcement for the company. Last week, Nikola released details surrounding its 400-acre deal in Pinal County, Arizona with Saint Holdings, LLC where the company will build its semi-truck manufacturing facility to make its Nikola One sleeper, Nikola Two day cab, and Nikola Tre for the European market, all set to compete with Tesla’s Semi Truck. The location is inside Heritage, an 11,438-acre prime development area, within the Inland Port Arizona portion of the site, itself comprising 3,000 acres and dubbed a “manufacturing mega site.” Nikola’s presence in the area is expected to bring an estimated $1 billion in economic stimulus to the region by 2024.

The hydrogen-electric semi truck manufacturer will reveal more details about its state-of-the-art lab at Nikola World, taking place on April 16-17 in Scottsdale, Arizona. Other revelations will include major trucking, Powersports and hydrogen-related topics, along with a few promised surprises.

Follow us @Teslarati for behind the scenes coverage from Nikola World where we’ll be bringing you a first look at the company’s upcoming hydrogen-electric semi-truck.

Nikola announces $14 million fuel cell lab investment in run-up to Semi-truck event


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Tesla enthusiast Jay Leno issues bold prediction about EVs and gas-powered cars

Simon Alvarez

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Posted on March 28, 2019


Legendary host, comedian and car aficionado Jay Leno recently made an appearance in an interview with USA Today. During his short segment with the publication, the iconic comedian expressed his thoughts about electric cars, their history, and what he believes is the likely end of the internal combustion engine.

Leno notes that he loves vehicles of all shapes and sizes, from iconic supercars like the McLaren F1 (amusingly the same supercar that Tesla CEO Elon Musk totaled in his younger days), the Lamborghini Miura, and the Bentley Speed Six. While Leno’s collection of classic cars are noteworthy, the host admits that he also has an affinity for modern vehicles, particularly one that has disrupted the auto industry with its all-electric construction: the Tesla Model S.

With the transportation sector’s shift to electric vehicles underway, Leno believes that the end of the internal combustion engine could very well be at hand. “I have a Tesla Model S. That’s the future. I predict a child born today, most likely by the time they’re 18, may not have ever ridden in an internal combustion car. I think electric will be the future,” he said.

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One thing that makes the host optimistic is the continued improvements that are being adopted by electric car makers such as Tesla. Leno owns a 1909 Baker Electric, a once-popular electric car that actually had a very decent range of 80 miles per charge (higher than a first-generation Nissan Leaf). The host states that notable improvements in battery tech have only really kicked off in recent years, with vehicles such as Tesla’s electric cars boasting hundreds of miles per charge. For the car aficionado, these improvements are but the beginning.

“It wasn’t until recently with new battery technology that you get hundreds and hundreds of miles (on a charge). I think we’ll see a thousand-mile range pretty soon,” Leno said.

Jay Leno has experienced what it feels like to ride in an electric car with 620 miles of range. In a segment of his show Jay Leno’s Garage last year, the host took a ride on the next-generation Tesla Roadster with Tesla Chief Designer Franz von Holzhausen, who gave a firsthand experience of the all-electric supercar’s raw acceleration. Launching from a dead stop and hitting 60 mph in 1.9 seconds, Leno proved enthusiastic, exclaiming that he would buy the vehicle when it gets released.

Leno has spoken out in support of Tesla in the past, even noting that he likes “the fact that Tesla is an American company, using American workers, using locally-sourced materials.” He also noted that he “never quite understood the negative vibes you sometimes get” when speaking in support of the electric car maker.

Watch Jay Leno’s take on electric cars in the video below.

Tesla enthusiast Jay Leno issues bold prediction about EVs and gas-powered cars


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Tesla’s high-stakes ‘Blitzscaling’ strategy explained by veteran tech analyst

Simon Alvarez

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Posted on March 29, 2019


To say that Tesla is moving fast is an understatement. Operating under Silicon Valley principles, Tesla has exhibited insane growth over the nearly 16 years it has been in business. Today, the electric car maker is a trailblazer in the EV market, and it is poised to grow even more. Veteran tech analyst Gene Munster notes that this is made possible by a strategy that Tesla has adopted, known as “blitzscaling.”

Blitzscaling is a concept that was initially coined by Reid Hoffman of PayPal and LinkedIn fame. Companies that adopt this strategy prioritize high-speed growth over efficiency to become the first to reach a critical scale. With this strategy in place, traditional growth techniques such as careful planning, cautious investment, and a deliberate effort to solve all problems before moving forward get thrown aside.

Illustrating this point, Hoffman stated that starting a company is like jumping off a cliff and assembling a plane on the way down. Blitzscaling is jumping off a cliff and assembling the aircraft faster by strapping on and igniting a set of jet engines while still building the wings.

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This strategy is incredibly dangerous, as the risks of failure are very high. Nevertheless, blitzscaling is one of the best techniques that a company could adopt if it is pursuing a very valuable prize and if the competition in its niche is intense. This fits perfectly with Tesla, whose goal is to accelerate the world’s transition to sustainable energy while surviving in the hyper-competitive auto industry.

Tesla has exhibited the signs oft blitzscaling for years, as seen in Elon Musk’s bet-the-company strategies with the Model 3 ramp. In a previous interview, Musk specifically noted that the Model 3’s “production hell” took him and Tesla to the edge. As Munster recently wrote, Tesla’s difficulties last year, including the company’s alarming financial state then, are classic characteristics of a company that is blitzscaling.

The Loup Ventures managing partner explains that blitzscaling is better suited for privately-owned companies since private investors are usually more open to the idea of investing a lot of money quickly for future growth. This could be seen in the success of companies such as Airbnb and Uber, both of which burned a lot of money to become what they are today. Tesla is in the difficult position of blitzscaling as a public company where all have access to its finances and all are able to speculate its solvency. As Tesla’s history has shown, this high-risk, high growth strategy is also a magnet for short-sellers, who can bet on the company’s failure for financial gain.

Tesla is still a young automaker, and for the most part, it is still operating like a startup. One can only hope that the Model 3 production ramp’s bet-the-company situation will not repeat itself when Tesla brings the Model Y to market. Whether or not blitzscaling is still the right strategy for Tesla at this point is up for debate, but one can only hope that the upcoming ramp for the Model Y, Solar Roof, Pickup Truck, and Tesla Semi will be a lot smoother and less painful than that of the Model 3.

Here’s Hoffman’s teaser of his book on blitzscaling. The parallels to Tesla’s strategy are quite compelling.

Tesla’s high-stakes ‘Blitzscaling’ strategy explained by veteran tech analyst


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Is it time for Tesla to partner up with another automaker? I think so.

Christian Prenzler

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Posted on March 29, 2019


This is a free excerpt of our weekly member-only Newsletter. Each week, we give you our take on the biggest stories of the week, our favorite photos & videos and much more. Sign up for Teslarati’s newsletters to receive a preview of our membership program.

Tesla’s stock has continued to slide over the last month, and not for one particular reason. The company has, by far, the best electric vehicles in the world, with the Model S, Model X, and Model 3 leading their segments by miles. Despite this, investors believe that the company is under immense pressure.

Elon Musk hasn’t really gotten the message. He’s plowing ahead with the multi-billion dollar Gigafactory in China, aggressively expanding the Model 3 to new countries, and doubling down on commitments to the super-delayed (but incredible) solar roof. Most other executives would throttle back expansion, allowing the company to widen profits and make investors happy. Musk isn’t like most executives (if you didn’t know that already?). He ignores the idea of ‘corporate strategy,’ and is far more interested in pushing the limit on what is possible. But, with over 40,000 employees and annualized production nearing 400,000 units, the company is entering a period in time in which long-term strategic planning would add tremendous value.

Time to deploy some strategery.

Let’s start with the Model Y. Or I should say, let’s begin with Tesla’s most important vehicle. The SUV market is exploding, and it’s not showing any signs of slowing down. The global SUV market grew from 9.8M units in 2013 to an estimated 23.8M units in 2020. That’s nearly 14% annualized growth over the last seven years. While Tesla has the Model X, it’s priced well above the average consumer’s budget and targets the highest-end of the market.

On the other hand, the Model Y is poised to enter the hottest market in the world: mid-sized crossovers. With world-class technology and an affordable price, it is certainly going to be Tesla’s most popular vehicle. To meet demand, Tesla is going to need to scale production faster and more efficiently than ever before. The only problem? Tesla is already busting out of their massive Fremont facility, and their new facility in China will likely only feed the Asian market (remember the last Chinese-built car you saw on US or European roads? Me neither).

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So what does the company do? Build a car in the Gigafactory? Expand Fremont further? Both options aren’t cheap or super fast. Well, let’s jump back to that point I made about long-term corporate strategy. Tesla is at a point where it can’t afford (without raising more cash) to start construction on another US or European factory, the company is already building a Chinese factory to meet existing demand is near cash-strapped. So what should they do? It’s time to partner up with another automaker, specifically Fiat Chrysler.

An Unlikely Marriage.

Fiat Chrysler (FCA) is one of the only automakers holding out on large investments into EV technology, GM is betting big and VW is betting even bigger. With Tesla’s cutting edge motor and battery technology, FCA could leap ahead of their rivals and electrify their fleet. First, the company could start by underpinning a vehicle -platform with Tesla’s powertrain, bringing more scale to Tesla battery operations and forgoing the multi-billion dollar expansion into the technology. Automakers have done these sort of partnerships for years. FCA already shares some diesel engines with GM, Daimler has borrowed VW engines, and most recently Toyota is borrowing a BMW engine for the iconic Supra.

(Photos: Tesla, Ram; Graphic: Christian Prenzler)

So what’s in it for Tesla? Let’s start with the main stage: cash. Musk isn’t interested in slowing down his global expansion, and he shouldn’t be. The company has tremendous demand and is on the cusp of launching several new products: Model Y, Semi, Roadster, and the Solar Roof. A large infusion of cash would allow the company to continue pushing the pedal to the metal. FCA has over $12B in cash, so the company could invest several billion dollars into Tesla. Outside of cash, FCA can lend some much-needed expertise in manufacturing and even some production capacity at one of the company’s two-dozen factories in North America.

I get it, teaming up with FCA doesn’t sound S3XY. But by teaming up with one of the largest automakers, Tesla gains a leg up in manufacturing and an infusion of cash that would allow Musk to continue investing heavily in expansion. What did you think of Tesla partnering with FCA?

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Disclaimer: This column does not necessarily reflect the opinion of Teslarati and its owners. Christian Prenzler does not have a position in Tesla Inc. or any of its competitors and does not have plans to do so in the next 30 days.

Is it time for Tesla to partner up with another automaker? I think so.


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Tesla Gigafactory 3 night flyover shows first signs of building structure taking shape

Simon Alvarez

By

Posted on March 29, 2019


A closer look at Gigafactory 3’s overnight construction work has revealed several interesting details about the progress of Tesla’s upcoming factory in Shanghai. Two prominent elements are notable from the recently-shot drone footage. One, the work on site appears to have spread to other areas of the 864,885-square meter lot; and two, the ongoing work for Gigafactory 3 reveals a foundation that will quickly give rise to the upcoming building structure.

While the majority of the construction work being done on the site was still dedicated to the Phase 1 area where a general assembly building is expected to be constructed, other portions of the Gigafactory 3 lot are also ablaze with activity. This suggests that work on the upcoming facility has kicked into high gear, with China’s workforce now spreading their construction efforts for multiple projects.

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This bodes well for the completion of Gigafactory 3. The timeframe for the facility has always been aggressive, with Elon Musk estimating that the initial construction of the electric car factory will be completed this summer. This already ambitious timeline was replaced by an even more aggressive timeframe by Shanghai official Chen Mingbo, who announced earlier this month that Gigafactory 3’s initial construction would be done this May. With multiple areas in the 864,885-square meter lot seeing activity, it will not be surprising if the Shanghai official’s estimates will be proven accurate.

Also impressive from the recent flyover is the presence of large, multiple square holes on the ground. These holes appear to be designed to hold prefabricated box beams for the facility’s roof trusses. The construction work in these areas also suggest that Tesla is using pile foundations for Gigafactory 3, which works well for the site considering that the ground in the location is loose and water-logged. From these initial components alone, it seems certain that Tesla and its construction partner, China Construction Third Engineering Bureau, are doing what they can to ensure that Gigafactory 3 will be durable enough to last decades.

Gigafactory 3 is expected to play a vital role in Tesla’s push into China. Dedicated to producing affordable versions of the Model 3 and Model Y, the upcoming factory will allow Tesla to compete on even ground against local competitors. China is the world’s largest electric car market, and if Tesla can breach it with premium, competitively-priced vehicles, the company’s efforts in the country could result in a lot of lucrative benefits.

Watch Gigafactory 3’s latest nighttime drone flyover in the video below, courtesy of 烏瓦 from YouTube.

Tesla Gigafactory 3 night flyover shows first signs of building structure taking shape


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