Tesla is clearing a path for the Semi in Germany and the rest of Europe: report


Tesla is urging the German government to lift a ban on Sundays and holidays for electric trucks, according to a report.

Recent reports from Germany indicated that a delegation from the electric vehicle manufacturer recently met with Steffen Bilger, the Parliamentary State Secretary in the Federal Ministry of Transport (BMVI) to discuss the abolition of the ban that has been in effect since May 1956, among other topics.

The truck ban prohibits commercial trucks weighing 7.5 tons from 12 midnight to 10 p.m on Sundays and holidays with the primary purpose of protecting citizens from noise and pollution. A similar law is also in effect in most countries in Europe.

Following the conversation with the electric car maker, German authorities reportedly pledged to look into the matter. “During a conversation at the BMVI with Mr. Bilger and representatives from Tesla, options for strengthening sustainable modern mobility were discussed, especially with regard to the logistics area,” a Ministry of Transport spokesperson said.

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While Tesla has not commented on the matter yet, the move bodes well if the electric vehicle maker plans to introduce the Tesla Semi in Europe in the near future. With clearer regulations in Europe, Tesla can better position the Tesla Semi as an industry disruptor that can operate in areas and days when petrol-powered trucks aren’t even allowed on the roads. If the electric truck will be allowed on the roads of Germany and the rest of Europe seven days a week, logistics companies in Europe may turn their sight into a greener cargo hauler such as the Tesla Semi.

The Tesla Semi was unveiled in November 2017 and is expected to start limited production this year. Tesla notes that the Semi will give owners about $200,000 in fuel savings compared to its diesel counterparts within the first few years of its service. It’s also capable of hitting 0 to 60 mph in just 20 seconds even while fully-loaded.

The base price of the truck is listed at $150,000 for its 300-mile range version and $180,000 for the 500-mile range iteration. There’s also a Founders Series with a sticker price of $200,000.

Tesla has been closely coordinating with German authorities as it works closer to begin construction of its Giga Berlin in Grunheide. The first factory of Tesla in Europe is expected to focus on the production of the Model Y during its initial phase and has a target capacity of 10,000 vehicles per week.

It is not yet clear if Giga Berlin will also be tooled to produce the Tesla Semi but it will not be a surprise if the Silicon Valley electric vehicle manufacturer sees the big potential of the electric cargo hauler in Europe especially with adjustments of regulations going in its favor.

Tesla is clearing a path for the Semi in Germany and the rest of Europe: report

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NASA is training SpaceX’s first Crew Dragon astronauts for a much longer mission in space


NASA has revealed that the astronauts assigned to SpaceX’s Crew Dragon astronaut launch debut are training for a space station mission many times longer than initially planned.

Scheduled to deliver two NASA astronauts to and from the International Space Station (ISS) no earlier than (NET) late-April or May 2020, Crew Dragon’s Demo-2 mission will be the first crewed launch in SpaceX’s 18-year history. As previously noted on Teslarati (and by NASA itself, briefly), Demo-2 will also mark the first time in history that a privately-built spacecraft attempts to launch humans into orbit.

Still, NASA has funded the development of Crew Dragon (and competitor Boeing’s Starliner) not to achieve firsts but to restore the United States’ ability to launch its own astronauts to the ISS. Along those lines, both Crew Dragon (Demo-2) and Starliner’s (CFT) astronaut test flights were nominally designed to last about a week or two before returning NASA’s astronauts to Earth – a full end-to-end test for both extraordinarily complex vehicles. Two weeks, however, is simply not long enough for those astronauts to practically serve as full members of space station crew, something the ISS generally requires. In response, NASA has been seriously considering extending Boeing’s crewed test flight and has just recently suggested that SpaceX’s own Demo-2 test flight will be similarly upgraded.

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About a month ago, SpaceX and NASA talked openly about the possibility of a longer-duration Crew Dragon astronaut launch debut for the first time, potentially extending the amount of time those astronauts are able to spend at the space station from about one week up to 1.5-3 months. This would allow Crew Dragon’s Demo-2 NASA astronauts – Bob Behnken and Doug Hurley – to serve as full members of the ISS crew, expanding the US presence from one to three astronauts.

Ars Technica’s Eric Berger offered some additional details about what exactly NASA might task Behnken and Hurley with on an extended flight earlier this month. Most importantly, the space agency wants the former astronaut – a Space Shuttle and extra-vehicular activity (EVA) veteran – to be (re)trained for spacewalks, allowing him to support an ever-growing to-do list of critical space station repairs and upgrades.

The International Space Station is pictured in October 2018 during a crewed Soyuz fly-around. (NASA/Roscosmos)

In effect, extending Crew Dragon’s astronaut flight test will make it almost identical to an “operational” flight where Crew Dragon ferries astronauts to the space station, docks for about six months, and finally returns the same astronauts to Earth at the end of its mission. More importantly, though, NASA’s decision to extend Commercial Crew Program (CCP) test flights – kickstarted with Boeing’s beleaguered Starliner spacecraft – is motivated by a desire to prevent the United States’ presence on the space station from dwindling or even regressing to zero in the near future.

Triggered by years of SpaceX and Boeing delays, NASA will now likely have to purchase more seats on Russian Soyuz launches if it wishes to maintain an full, uninterrupted presence on ISS for the next 12-24 months. After suffering numerous deeply concerning software failures on its first and only orbital launch, Boeing’s Starliner is unlikely to be ready to launch crew anytime soon. At the same time, although SpaceX is closer to its astronaut launch debut than ever before, it’s highly unlikely that Crew Dragon can singlehandedly support a full ISS complement of three NASA astronauts while Starliner works out its issues.

Boeing’s Starliner and SpaceX’s Crew Dragon spacecraft stand vertical at their respective launch pads in December 2019 and January 2020. Crew Dragon has now performed two successful full-up launches to Starliner’s lone partial failure. (Richard Angle)

As such, NASA is looking everywhere it can to squeeze a bit more on-orbit time out of existing astronaut missions scheduled in the next year or so, and both Starliner and Crew Dragon’s test flights – barring showstoppers – are excellent opportunities. With NASA Johnson Space Center’s confirmation that both Behnken and Hurley are already deep into the extra training needed for an extended flight, chances are good that both astronauts will be ready for a one- or several-month mission by the time that NASA and SpaceX are ready and willing to launch.

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

NASA is training SpaceX’s first Crew Dragon astronauts for a much longer mission in space

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Elon Musk’s Boring Company quietly deploys its custom-designed tunneling machine


As it turns out, Elon Musk’s tunneling startup, The Boring Company, has just completed and perhaps even deployed its custom-designed tunnel boring machine. The new digger features several innovations, and it could very well accelerate Musk’s vision of ultra-high-speed tunnels transporting vehicles and people through a vast network of tunnels underground. 

The brief announcement was shared by the official Boring Company Twitter handle. The post was simple, showing a group of employees smiling in front of a tunnel boring machine that seems poised to start digging. In the tweet’s description, the startup posted the words “Prufrock is alive.” 

This could very well be the biggest news to come out from the Boring Company since Elon Musk and TBC Head Steve Davis held an information session about the tunneling startup and its technologies at the Leo Baeck Temple in Los Angeles, CA back in May 2018. This is because unlike traditional tunnel boring machines (TBM), Prufrock is custom designed by The Boring Company, and it is expected to be capable of digging far quicker than its conventional counterparts. 

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The Boring Company started with Godot, a traditional boring machine that pretty much functions like a regular TBM. Godot is believed to be the boring machine that created the Hawthorne test tunnel, and while it works just as well as a TBM could, it is also immensely slow. Following Godot, the Boring Company designed Line-Storm, a TBM that is essentially a heavily modified conventional boring machine. In terms of speed, Line-Storm is capable of at least digging twice as fast as a traditional TBM like Godot. 

But Godot and Line-Storm are just the beginning. During The Boring Company’s information session, Elon Musk and Steve Davis talked about a third tunneling machine. This machine, called Prufrock, is entirely designed by the startup, and it is expected to dig about 10-15 times faster than traditional boring machines like Godot. That’s a notable improvement over conventional diggers, and it has the potential to revolutionize tunneling technology in one fell swoop.

Elon Musk described each of the Boring Company’s TBMs as follows. 

“Godot, which is the name of the first machine, is a conventional tunnel boring machine… So going from Godot to Line-Storm, Line-Storm is a highly modified boring machine, but it’s essentially a hybrid between a conventional boring machine and Prufrock, which is the fully Boring Company-designed machine. So Prufrock, that will be quite a radical change. Prufrock will be about ten times, aspirationally 15 times faster than current boring machines. I think very likely ten times.”  

The Boring Company is involved in several projects, from the Dugout Loop in CA to the Las Vegas Convention Center tunnel in Nevada. Among these, the LVCC loop seems to be the most active, though the startup has not announced which of its machines had been deployed on the site. Considering that the TBM managed to complete the first of its two tunnels already, perhaps the machine digging under Las Vegas today is Line-Storm. As for Prufrock, the project where it will be deployed for the first time will likely be incredibly lucky. 

The Boring Company’s potential disruption, after all, largely depends on how fast it could construct tunnels in a safe and efficient way. As noted by Elon Musk, this has a lot to do with the speed of TBMs themselves, as regular diggers move at a fraction of a snail’s pace. If The Boring Machine could at least match the speed of a snail, then a transport tunnel’s turnaround time would be drastically lower. This, of course, opens the doors to more tunnels being built, effectively ushering in Elon Musk’s vision of an ultra high-speed, underground future.

Elon Musk’s Boring Company quietly deploys its custom-designed tunneling machine

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Tesla Model Y delivery emails are being sent to customers


Tesla has begun sending Model Y delivery confirmation emails to early customers, notifying them that their all-electric crossover is coming soon.

Customers in Northern California who purchased a Tesla Model Y Performance with Performance Upgrade are being notified that their vehicle is almost ready for delivery. The confirmation email to customers is part of the final step and aimed at preparing customers for any remaining steps needed such as trade-ins or financing prior to taking delivery of their new vehicle.

Model Y buyer Howard Feinstein shared on Twitter a screenshot of the email from Tesla.

The next step for you is to confirm when you’re able to take delivery so we can ensure the best experience possible.

Once you confirm your availability, we’ll send you an update in the coming days to notify you when you can log into your Tesla Account and complete any remaining steps such as financing or trade-in. Your Tesla Advisor will be available to answer any additional questions you may have.

We’re excited to have Model Y join your home and be a part of your transition to sustainable energy.

Welcome to the Tesla family.

Members of the Tesla Model Y Facebook group corroborated what Feinstein said. Some of the members of the group who also just recently ordered the Performance version of the all-electric crossover and are in Northern California also received the email notification. Tesla’s strategy to deliver new products that are fully-optioned to customers closest to its factory in Fremont isn’t a new one. The company adopted a similar priority schedule in 2017 when Model 3 started rolling off the production line.

According to the delivery date email sent to customers, it would appear that the first Model Y deliveries will take place no earlier than March 15, 2020.

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Elon Musk confirmed during the Q4 2019 earnings call that Tesla has started a limited volume production run of the most energy-efficient electric SUV in Fremont last January or roughly 10 months after building a prototype.

The full-spec Model Y costs around $67,990 including the Performance Upgrade and the Full-Self Driving feature. It will cost $1,000 more if one opts for another paint color other than the standard Pearl White Multi-Coat.

The Model Y was first expected to hit the production line in the fall of 2020 but was later moved up to the summer of 2020. However, in its Q4 2019 Update Letter, Tesla confirmed that the first deliveries of the Model Y crossover will happen before the end of Q1, marking a significant improvement in the pace of vehicle production. The Fremont factory in California is expected to churn out 500,000 vehicles this year while Giga Shanghai is expected to roll out the electric crossover for the Chinese market starting 2021.

Tesla Model Y delivery emails are being sent to customers

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Tesla Model Y spotted testing with roof racks installed


A Tesla Model Y with roof racks has been spotted, giving us a first look at how the roof-mounted rails will appear on the all-electric crossover.

The sighting of the Model Y with a low profile roof rack mounted atop the vehicle’s all-glass roof took place on CA State Route 237 in Sunnyvale, a stone’s throw away from Tesla’s Palo Alto headquarters in the San Francisco Bay Area.

In the video shared by RTK, the Model Y roof rack with crossbars looks very reminiscent of the Model 3 roof rack that Tesla currently offers in its online shop. Considering that the Model Y is largely based on the Model 3 platform and share roughly 75% of its components, one can presume that the roof racks will also be very similar in design and fitment, if not the same.

Assuming the later, the Model Y roof rack will feature an easy installation process that attaches to four mounting points on the vehicle’s all-glass roof. Tesla has traditionally used clips that slide beneath the rubber gasket alongside the glass roof and anchor to the roof rack’s factory connection points. One can assume that the roof rack installation process for the Model Y roof rack would be no different than the Model 3.

Tesla’s roof rack is generally constructed of powder-coated aluminum and features a T-slot that runs along the crossbar. With max load rating typically around 150 lbs, the rack can be used to secure a variety of roof-mounted items, including skis, bikes, and cargo boxes when used with proper attachments.

Although Tesla Model Y does not come with a standard roof rack, according to what’s seen on the vehicle’s online configurator, we can expect that it will eventually be sold separately on the company’s online shop like Model 3.

Tesla Model Y spotted testing with roof racks installed

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Tesla Cybertruck’s real-time response to payload via active suspension will upend the pickup truck industry


Tesla CEO Elon Musk has revealed that the Tesla Cybertruck will come with a payload and towing calculator that shows real-time data to help drivers understand how extra loads affect the pickup truck and the vehicle’s driving experience.

Musk confirmed the feature in a series of tweets that mentioned the Cybertruck’s laser blade lights and 82″ width. “Yes, will also show real-time changes to max acceleration, braking, cornering, speed on gradient & range, latter factoring in route elevation changes & cargo or tow mass & drag impact,” Musk wrote.

Knowing how the Cybertruck is performing, be it while towing cargo or not, having access to vital information in real-time will allow the driver to make necessary adjustments to ensure a safe and optimal driving experience. The real-time data will be crucial in helping the driver plan a tight turn, execute an overtake maneuver with a heavy payload, or plan for negotiating steep downgrade with cargo in tow. Any additional load on the Cybertruck, or on any vehicle for that matter, can impact how the vehicle responds to braking, turning, or even parking. Of course, another big consideration will be how the extra load will impact the Cybertruck’s range.

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The Tesla Cybertruck definitely has the brute power to handle heavy payloads with its entry-level single motor variant capable of towing more than 7,500 pounds and its Tri-Motor All-Wheel Drive version boasting a towing capacity of more than 14,000 pounds. It also has the technologies that will allow it to handle the different dynamics when towing or carrying cargo.

Elon Musk, for example, suggested that Cybertruck’s active ride height and the suspension’s active damping capability can help make for a smoother ride that will also maximize efficiency especially in vehicles where the weight ratio is imbalanced. But dynamically sensing the differences in front and rear weight and making real-time adjustments to its weight distribution by changing ride height and suspension damping, Cybertruck will have maximum performance regardless of its use case. This, in turn, will ensure energy consumption is kept to a minimum thereby negating range impacts.

Furthermore, Tesla will be able to train its neural net with suspension data gathered from its Cybertruck fleet to further improve the driving experience based on load and terrain for a given geography through over-the-air software updates.

While details still remain thin on how an actual payload and towing calculator will be integrated into the Cybertrucks interface, having real-time data with dynamic vehicle response to cargo will be an eye-opening game-changer for the pickup truck industry.

The towing calculator makes the Cybertruck even more interesting. Aside from allowing drivers to adjust their driving skills and help manage the extra demand to the vehicle when one is pulling or carrying a load,  it can be one factor that wins the pickup truck game for Tesla. No more tug of war needed.

Tesla Cybertruck’s real-time response to payload via active suspension will upend the pickup truck industry

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SpaceX’s next military launch cleared for historic rocket landing attempt


SpaceX officially has permission to perform a Falcon 9 booster recovery after its next launch for the US Air Force, now guaranteed to be the first time a rocket booster attempts to land during an operational launch for the US military.

Alongside their booster landing attempt confirmation, the USAF Space and Missile Systems Center (SMC) also posted the first official SpaceX video of a rocket acceptance test released in almost 2.5 years, a test it says was completed just days after the GPS satellite it’s scheduled to launch arrived in Florida. The very same Falcon 9 booster was shown off in unprecedented detail just last month and now SMC says that SpaceX fired up the rocket at its McGregor, Texas development facilities for a routine static fire on February 13th. The company is currently scheduled to launch its second USAF GPS III satellite – Space Vehicle 03 (SV03) – no earlier than 7am EDT (11:00 UTC), April 29th, a target set just days ago.

With the spacecraft in Florida and factory-fresh Falcon 9 booster successfully proofed, all that remains is for SpaceX to test and deliver the mission’s Falcon upper stage and payload fairing (if it hasn’t already). After the booster – believed to be B1060 – is inspected and its tanks are cleaned, it can also be packaged and transported by road the rest of the way to SpaceX’s Florida launch facilities, setting the company up for the critical mission and historic landing attempt.

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While SpaceX has technically already landed Falcon 9 and Falcon Heavy boosters after its NROL-76 and STP-2 launches for the NRO and USAF, the company only officially began operational military launches once its Falcon 9 rocket was fully certified. STP-2, for example, was effectively high-stakes make-work designed to help the USAF fully certify SpaceX’s brand new Falcon Heavy rocket to launch expensive – verging on irreplaceable – military satellites.

Its first truly operational US military launch occurred in December 2018, when Falcon 9 booster B1054 was intentionally expended in support the USAF’s inaugural GPS III launch, successfully placing the first of 10 (or 32) planned upgraded navigation satellites into orbit. It’s believed that the USAF required such extreme safety margins (extra propellant and performance) that SpaceX couldn’t even attempt booster or fairing recovery. This made B1054 the first (and hopefully only) Falcon 9 Block 5 booster to launch without even the basic hardpoints needed to attach landing legs.

Falcon 9 lifts off with the US Air Force’s first ~$500M GPS III spacecraft, December 2018. (SpaceX)

Effectively confirming that B1054’s demise was was a contrivance and by no means a technical necessity, the SMC announced on February 20th that SpaceX’s GPS III SV03 mission is officially “the first time a booster is planned to land on a drone ship during a NSS [National Security Space] launch.” Effectively identical to B1054 aside from the addition of grid fins and landing legs, this means that Falcon 9 booster B1060 will be able to attempt a landing aboard a SpaceX drone ship shortly after launch.

The GPS III SV03 satellite is seen in September 2019 as technicians prepare it for transport. (Lockheed Martin)

Just like GPS III SV01 satellite launched by SpaceX in December 2018 and the GPS III SV02 satellite launched United Launch Alliance (ULA) launched in August 2019, GPS III SV03 is a more than $500 million spacecraft designed to upgrade the US GPS navigation constellation. SpaceX has already won five (of five) competitively-awarded GPS III launch contracts thanks to its Falcon 9 rocket’s exceptionally competitive pricing, meaning that there is an excellent chance the company will win many more in the near future.

GPS III SV03 is one of 10 “Block IIIA” satellites to be launched between 2018 and 2026 and will be followed by another 22 “Block IIIF” satellites to be built by Lockheed Martin for ~$330M apiece. All 26 unassigned spacecraft will need launches of their own between now and the mid-2030s, worth anywhere from $1-2.5B to SpaceX if the company performs well on all five of its first contracts and continues to crush competitor ULA on launch costs.

Falcon Heavy Flight 3 made use of both flight-proven side boosters and a new center core. Note the scorched landing legs and sooty exteriors. (SpaceX)
Falcon Heavy launched the USAF STP-2 mission with two flight-proven side boosters, launched barely 74 days after their first flights. Note the scorched landing legs and sooty exteriors. (NASA – Kim Shiflett)
USAF photographer James Rainier's remote camera captured this spectacular view of Falcon Heavy Block 5 side boosters B1052 and B1053 returning to SpaceX Landing Zones 1 and 2. (USAF - James Rainier)
Through Falcon Heavy STP-2, the Air Force has thus already directly supported an incredibly ambitious instance of orbital-class booster reuse. (USAF – James Rainier)

With the USAF already demonstrably interested in supporting Falcon booster reusability and now open to SpaceX recovering Falcon 9 boosters after moderately-challenging GPS III launches, it’s safe to say that SpaceX’s ultra-competitive pricing is here to stay.

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

SpaceX’s next military launch cleared for historic rocket landing attempt

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Tesla Model X with early-gen Autopilot tackles muddy rural roads ravaged by Storm Dennis


A Tesla Model X owner with early generation Autopilot hardware demonstrated the vehicle’s ability to negotiate multiple tight turns on a wet, muddy, and partially-unmarked country road hit by Storm Dennis.

YouTuber Tesla Driver went out for a drive to check out the aftermath of severe flooding around Hereford, a town about three hours away from London, that was recently ravaged by Storm Dennis.

The interesting portion of the video footage shows the Tesla Model X on an earlier-generation of Autopilot hardware from 2017 was able to interpret a muddy portion of the road that was lined with cones and safely navigate through potential hazard areas. The driver set the speed to 10 mph and was amazed when the vehicle followed the cones despite the cones not showing up on the screen. The next challenge was if the Model X will move to the correct lane while negotiating a tight corner despite the unfavorable road conditions, and the Tesla Autopilot did not disappoint.

“Wow! It actually did that,” Tesla Driver can be heard saying after the vehicle did what he wanted it to do.

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Despite being on an earlier version of Autopilot hardware dubbed Hardware 2.0, the three-year-old Model X was able to identify the cones along the road, despite not having the same visualizations as displayed in AP Hardware 3.0 vehicles, and seamlessly traverse a make-shift lane while using Navigate on Autopilot.

What’s even more impressive with the Model X owner’s experience is its ability to seemingly leverage Tesla’s increasingly smarter neural network to navigate complex road conditions despite being on three-year-old Autopilot hardware. Tesla Autopilot has logged over 2 billion miles since November 2019 and for the electric carmaker, this means tons of invaluable data that have been fed into its neural network that actively learns how to make its fleet of electric vehicles capable of handling real-world driving scenarios.

Check out the video below showing a Tesla Model X with Enhanced Autopilot 2.0 hardware take on the muddy backroads ravaged by Storm Dennis.

Tesla Model X with early-gen Autopilot tackles muddy rural roads ravaged by Storm Dennis

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Tesla Cybertruck will have “laser blade lights” and adjusted dimensions


Tesla Cybertruck’s width will be roughly 82 inches and the vehicle will come standard with upper “laser blade lights”, according to the most recent update provided by CEO Elon Musk.

Musk clarified via Twitter that the previously announced width of the upcoming all-electric truck might be too small. The Cybetruck officially measured 84 inches wide when it was unveiled in Los Angeles last November 2019, but he estimated a possible reconfiguration to around 80 inches wide to make the Cybertruck fit in typical garage setups.

The Tesla Cybertruck will also feature upper laser blade lights, the aesthetically futuristic bar of lights across the top of the truck’s windshield. While details about this feature are very limited, the laser blade lights are said to help provide the driver with better visibility, especially needed in challenging terrain or dark outback excursions. Additionally, the laser blade lights add a cool factor to the dystopian vehicle that has reportedly caught the interest of over 500,000 reservation holders since its debut.

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Elon Musk was pretty generous with Tesla Cybertruck updates Friday night. When asked if the much-awaited pickup truck’s look will generally be the same, he said that “it’s slightly better.”

This latest Cybertruck news from Musk also shows how Tesla listens to the electric vehicle community just like when Musk confirmed that owners will be able to comfortably camp in the Cybertruck’s truck bed and that it would come with a flip stop for those hauling long cargo.

Unclear is how Tesla’s electric pickup might fit in a typical residential garage in the United States. In response to Teslarati’s story on how one Youtuber used a to-scale Cybertruck AR mobile app to discover that the truck’s dimensions were too big for a home garage, Musk responded with his thoughts on how Cybertruck’s length and width can be adjusted.

Typical two-car garages in the United States measure around 20×20, 22×22, or 24×24 feet. While these measurements are fine for the usual sedans and SUVs like the Model S, Model X and Model 3, or crossovers such as the Model Y, things can get a bit tight for mid-size utility pickups like the Tesla Cybertruck that originally measured 231.7 inches long, 84 inches wide, and 75 inches high. The parking issue is not unique to the Cybertruck as owners of Ford F-150 Supercrew and Dodge RAM pickups have reported that their trucks are often too long to fit inside their garages. With the adjusted width, the Cybertruck will fit in the same external envelope as full-size SUVs just like how Elon Musk pictures it.

The Cybertruck’s Tri-Motor and Dual Motor versions are expected to hit the production line in 2021.

Tesla Cybertruck Dimensions

  • Width: 82″ (2083 mm)
  • Height: 75″ (1905 mm)
  • Length: 225″ to 231″ (5715 mm to 5892 mm)
  • Wheelbase: 149.9″ (3807 mm)

Tesla Cybertruck will have “laser blade lights” and adjusted dimensions

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Tesla’s CATL partnership in China is a strategic play that sets the stage for market domination


Tesla’s deal with battery supplier Contemporary Amperex Technology Co Ltd (CATL) for its Made-in-China Model 3 is a strategic move that will deepen the company’s roots in the world’s largest automotive market.

CATL is expected to supply a “zero cobalt” prismatic lithium iron phosphate (LFP) batteries that the carmaker would use in its Model 3 sedan for the domestic market.

Reduce Battery Costs While Doing Good

The LFP batteries are expected to be cheaper by a “double-digit percent” compared to the existing batteries Tesla is using for its locally-produced Model 3. Benchmark Mineral Intelligence, a price reporting agency that specializes in lithium-ion batteries for EVs, estimates that Tesla will save more than 25% in cost compared to what the carmaker spends for batteries used for Model 3s in the United States.

Tesla uses cylindrical nickel-cobalt-aluminum (NCA) batteries for its vehicles which typically have lower cobalt content than industry-popular nickel-cobalt-aluminum (NCM) batteries used by other electric vehicle manufacturers. However, as the world begins to better understand the human toll for cobalt mining, Tesla CEO Elon Musk has expressed his intentions to cut cobalt-use in Tesla batteries. Thereby paving the way for a partnership with a battery cell manufacturer that has a zero to limited-need for cobalt – CATL.

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CATL will use its cell-to-pack (CTP) technology to improve the energy density and safety of the zero-cobalt batteries. Using the technology that involves more than 70 core patents, CATL can up the mass-energy density of the LFP batteries by 10 to 15 percent, reduce the number of parts of battery packs by around 40 percent, and improve volume utilization efficiency by 15 to 20 percent.  The battery manufacturer also claims that it is taking steps to increase the energy density of its LPF batteries using CTP technology by 2024.

All of these factors make the equation a win-win for Tesla. Aside from the cost savings, the zero-cobalt batteries for the China Model 3 may also help improve the production process and help Giga Shanghai hit a 3,000 units per week run rate, consistently. Plus,  Tesla’s partnership with a Chinese supplier can only help further improve its relationship with the government that has welcomed it with open arms.

Small Step To Reduce Cost, Big Step To Conquer China

Tesla’s Giga Shanghai has so far been impressive. The first vehicle production plant for Tesla outside of the US is practically a miracle by all standards. The facility was built from the ground up and it churned out its first locally-made Model 3s after 10 months.

It also makes sense to set up a car factory in the biggest automotive market in the world that brought roughly $3 billion in revenues to Tesla’s coffers in 2019 and positioned Tesla to conquer China.

“I feel there is a pretty big fundamental efficiency gain that Tesla has by just making cars, especially affordable cars than 3 and Y, at least on the continent where the customers are. what we’re doing — or have been doing in the past was really pretty silly in making cars in California and then shipping them halfway around the world…,” Musk said during the Q4 2019 earnings call.

The Made-in-China Model 3. (Credit: Tesla China)

With the CATL zero-cobalt batteries for MIC Model 3s, Tesla further localizes its supply chain in China. With localization, analysts believe that the China-made Model 3 can practically be a cash cow for Tesla.

A partnership with CATL can also put Tesla on a path to achieving higher profit margins for the China Model 3 while still being able to lower the price of its vehicles, thereby stimulating local demand even more.

According to Tesla CFO Zachary Kirkhorn, the margins coming out of Giga Shanghai is expected to match that of vehicles coming out of Fremont. “And so if you add all of this up, our internal estimates are a pretty significant reduction in the cost of Model 3 in China relative to Fremont, but I think it’s also important to keep in mind that the cost of the Standard Plus that we’re selling out of Shanghai is also lower than that of the similar car coming out of Fremont from price perspective. And so and I’ve said this on previous earnings calls, I think it’s fair to expect the margin coming out of the Shanghai facility to match the same margin for the vehicle in Fremont,” noted Kirkhorn in Tesla’s Q4 earnings call.

With Tesla’s MIC Model 3 as an electric car for the masses, Elon Musk and his car brand can help change China. The government sees Tesla as a catalyst for its slumping automotive industry and a spark to help transition the wider population from internal combustion engines to electric vehicles, which in turn can help combat air pollution that causes over 1 million deaths per year in the country and costing its economy roughly $40 billion annually.

The zero-cobalt batteries by the CATL for the China Tesla Model 3 might be one of the essential ingredients to further help TSLA skyrocket and drive the brand to consistent profitability.

Tesla’s CATL partnership in China is a strategic play that sets the stage for market domination

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