Tesla unlocks rear heated seats for Model 3 SR and SR Plus as paid OTA upgrade


Tesla is offering rear heated seats for the Model 3 Standard Range and Standard Range Plus as a $300 upgrade that can be activated through an over-the-air software update.

The latest update follows a request by Tesla Model 3 owner who asked Elon Musk if a cold-weather OTA update can also activate the rear heated seats. Model 3 variants all have the necessary hardware for heated seats, enabling Tesla to easily manage feature activation through software.

While rear heated seats were originally active on early Tesla Model 3 variants with the Partial Premium Interior and above, the company ultimately disabled the feature on Model 3 Standard Range and Standard Range Plus.

Tesla Model 3 SR and SR+ owners now have the option to upgrade to rear heated seats through Tesla’s mobile app or directly through their Tesla account online.

 

The addition of the heated seats in Tesla’s two most affordable vehicles makes them an even bigger bang-for-your-buck. One of the biggest advantages of owning a Tesla vehicle is the company’s utilization of Over-the-Air updates. These updates are frequently released from Tesla and offer a plethora of new features that can include anything from power boosts to in-car entertainment like Netflix, YouTube and others.

Tesla unlocks rear heated seats for Model 3 SR and SR Plus as paid OTA upgrade

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Tesla China resumes Model 3 deliveries after shutdown due to coronavirus outbreak


Tesla has resumed deliveries of its Made in China Model 3. The deliveries come after a government-mandated shutdown of production and deliveries amidst the outbreak of the coronavirus in the country.

Tesla enthusiast Jay in Shanghai uploaded a video on Twitter showing several vehicle haulers with Model 3s loaded up and being secured onto a car carrier. It was not specified in the video, but these cars will likely be shipped to delivery centers, where they can be handed over to Chinese customers who have purchased the Model 3. Despite meeting challenges in the past weeks, Tesla appears to have found another gear and has not seemed to slow down.

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The coronavirus negatively affected Tesla in a variety of ways. After the company announced they would be halting deliveries and production of the Model 3 in China on the advice of Tesla China executive Grace Tao, the company’s stock briefly took a hit. In addition to that, Chinese citizens who have been anticipating the arrival of their electric vehicles were forced to wait a bit longer.

Tesla resumed production at Giga Shanghai on February 10 by shuttling employees to the plant on buses. LG Chem, Tesla’s battery supplier for MIC Model 3s, also resumed operations on February 10. Other businesses in Shanghai have also resumed operations despite the country still attempting to control the outbreak of the coronavirus.

The coronavirus has killed almost 1,400 people as of February 14, according to a report from CBS News. Yesterday, the Chinese government reported an additional 121 deaths and more than 5,000 new cases during the day alone. In Shanghai, where Gigafactory 3 is located, people are free to move within the region, but many have preferred to remain in their homes.

Despite the virus spreading in China, Tesla has already started gearing up to deliver batches of MIC Model 3s. Thus far, Tesla has reported a current run rate of 3,000 Model 3 vehicles per week in Shanghai. Overall, Tesla seems largely unperturbed about Giga Shanghai’s temporary shutdown. with CFO Zach Kirkhorn stating the company was relatively unworried about its finances taking a significant hit due to the outbreak, since Giga Shanghai has only started vehicle production.

Tesla China resumes Model 3 deliveries after shutdown due to coronavirus outbreak

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Tesla may have quietly acquired a new lithium-ion battery cell startup in CO


Recent observations by active members of the Tesla community suggest that the electric car maker may have acquired a lithium-ion battery cell specialist startup from Louisville, Colorado. If these speculations prove accurate, Tesla may very well be on the cusp of extending its lead in the electric vehicle market further. 

It is no secret that Tesla is always in the process of improving its battery cells. The company has expressed its intentions to start producing its own cells, even if it has to dip its toes in the mining business to get there. Interestingly, Tesla currently has job listings for “cell technicians” in Louisville, Colorado. The job’s requirements include, among other things, a background in electrode coating and cell assembly, suggesting that Tesla may be looking into battery innovations and cell manufacturing. 

As observed by TSLA retail investor Galileo Russell of YouTube’s Hyperchange channel, Louisville, Colorado happens to be a hotbed for next-generation battery startups, and several of them are working on lithium-ion technology. Some of these, such as battery startup Forge Nano, have already received investments from automakers such as Volkswagen. But among these, a company called SilLion Inc. may very well be the perfect fit for Tesla. 

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SilLion is a small company that is specifically working on battery high-loading silicon anode and electrode technology for commercial cylindrical cells. The company’s tech delivers a breakthrough in high-energy batteries by simultaneously incorporating high-loaded silicon anodes, nickel-rich NMC cathodes, and a non-flammable ionic liquid electrolyte. Doing so allows batteries to be more energy-dense and safer while being cheaper to produce. Tesla, of course, just happens to be one of the few automakers that use cylindrical cells for its vehicles.

SilLion Inc. has since taken down its official website, unlike some of the other battery startups in Louisville. Some of the company’s employees, such as Research Scientist Simon Hafner, now list Tesla as an employer in their LinkedIn pages as well. SilLion co-founders Daniela Molina Piper and Tyler Evans have also listed Tesla in their interests in the professional social media platform. Looking at these, one can be compelled to speculate that Tesla may have acquired (or perhaps acqui-hired) SilLion Inc, and the electric car maker may be working on including the startup’s technology in its next-generation of batteries. 

Tesla is no stranger to acquiring small companies whose work can improve the electric car maker’s innovations. Last year, Tesla used this exact same strategy with its DeepScale acquisition. DeepScale is pretty small, with a headcount of just about 40 employees, but it is working on technology that allows deep neural networks to work on smaller devices. The company’s Carver21 product, for one, was specifically designed to optimize the processing data from a full self-driving car’s forward-facing cameras. These innovations are valuable for Tesla, especially amidst the company’s push for Full Self-Driving. 

Whether Tesla has indeed acquired SilLion remains to be seen. That being said, one will be hard-pressed to find a reason why technology developed by the Louisville-based battery startup will not benefit the electric car maker. Ultimately, these speculations will likely be addressed soon, when Tesla holds its highly-anticipated Battery Day. 

H/T Galileo Russell

Tesla may have quietly acquired a new lithium-ion battery cell startup in CO

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Tesla’s Giga New York is poised to meet a critical workforce target


It appears that Tesla will be meeting its workforce goals in its Gigafactory New York facility, with the company reportedly only a few hundred workers short of its 1,460 target for April 2020. With this in mind, Tesla seems poised to meet its end of its deal with the state, avoiding a potential $41.2 million penalty in the process. 

Tesla’s Giga New York was not originally a facility of the electric car maker. Instead, it was a factory of SolarCity before the company was acquired by Tesla. Giga New York was intended to be a facility for Tesla Energy, producing the company’s flagship residential energy product, the Solar Roof, among others. Tesla received benefits for Giga New York, to the tune of more than $950 million. 

Yet, inasmuch as Tesla’s plans for Giga New York were aggressive, the facility and its operations were put aside during the company’s well-documented Model 3 production ramp. Over this time, Tesla shared only a limited amount of information about the Buffalo, NY facility, at one point simply conducting a controlled press tour. 

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But Tesla is no longer struggling with the Model 3 ramp. Elon Musk’s recent tweets and statements indicate that Tesla is now at a point where it can scale and ramp its energy and solar business. Tesla has released the Solarglass Roof V3 tiles, which are larger than the original Solar Roof and easier to install. Elon Musk has been very supportive of the product, promoting it on his Twitter account and even noting that the shingles will be released in territories beyond the United States such as Europe and China. 

For Tesla to accomplish this, Giga New York would have to be working at an optimal pace. According to Assemblyman Sean Ryan (D-Buffalo), and Buffalo Mayor Byron Brown, both of whom were able to tour the facility, this does seem to be the case, with Giga New York now employing over 1,100 workers. That’s a bit over 300 short of its April 2020 goal. Tesla seems intent on hiring even more employees for the facility as well, with Elon Musk mentioning that an upcoming “company talk” will be held at the factory this coming April. 

“I was pleasantly surprised. It was encouraging to see solar roofs, batteries and charging stations being built in the facility,” Ryan said. The Buffalo Mayor was even more optimistic after his visit, noting that his confidence in the facility has been raised after seeing the factory’s activities firsthand. “I was impressed. A lot of people working,” Brown said Thursday. My confidence is certainly much higher after taking the tour. It certainly gives me a great sense of confidence that they will meet the goals,” Brown remarked.

True to Elon Musk’s words last year, Tesla appears to be focusing more of its attention and efforts on its energy business. Together with the Solarglass Roof V3, the company has also launched a more aggressively-priced residential solar program, as well as a large scale battery called the Megapack. Propelled by this momentum, Tesla’s Giga New York may soon find itself working at full capacity to meet the company’s demand for its energy products. When this happens, the 1,460-worker target this April might very well be just a drop in the bucket in the grand scheme of things.

Tesla’s Giga New York is poised to meet a critical workforce target

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SpaceX Crew Dragon spacecraft nears last parachute tests before astronaut launch debut


SpaceX’s Crew Dragon spacecraft is likely just a few weeks away from its last few parachute drop tests, the successful completion of which should give NASA all the technical data it needs to okay its astronaut launch debut.

After facing several major failures during intentionally challenging drop tests both last year and the year before, SpaceX and supplier Airborne have been working relentlessly to better understand the complex physics behind parachutes and then design and build better ones with that information.

Most recently, SpaceX has been aggressively testing the latest Mark 3 (Mk3) parachute variant with great success and has completed some two-dozen consecutively-successful drop tests since October 2019. Now, NASA and SpaceX are working together to settle on a design for two final Crew Dragon parachute tests, the results of which will almost certainly determine when the spacecraft’s astronaut launch debut will occur.

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As previously discussed on Teslarati, SpaceX – in pursuit of the safest and most reliable spacecraft possible – has quite literally been pushing the envelope of parachute engineering and the immensely complex physics behind their behavior during deployment.

“According to NASA, the incredibly extensive testing SpaceX has had to do to satisfy the agency’s requirements has lead the company to develop “a better understanding of how to safely design and operate parachute clusters”. As of September 2019, SpaceX has reportedly completed 48 distinct parachute tests, of which one or two apparently failed.

In response to the additional testing and analysis NASA required after a recent April 2019 chute failure, SpaceX has essentially been forced to push the state of the art of parachute design and modeling to new levels. NASA says that SpaceX has begun to model certain conditions and newfound failure modes in ways that “provide a better understanding of parachute reliability” and have forced NASA to reevaluate its own standards and certification processes. Shown in the video above, SpaceX recently completed a successful parachute test identical to the attempt that failed in April 2019, a major step towards confirming that the new parachute analysis and design have mitigated prior faults.”

Teslarati.com — September 20th, 2019

Since that NASA report, SpaceX has – based on their own subsequent updates – completed no less than 24 successful Mk3 parachute tests, ranging from single-chute and chute-out tests to the full-fidelity spacecraft launch and recovery that followed Crew Dragon’s January 19th, 2020 In-Flight Abort (IFA) test.

NASA’s Wallops Twitter account has revealed Crew Dragon’s final two parachute tests will be performed with a C-130 cargo plane similar to the one pictured above during a previous SpaceX drop test, implying – unsurprisingly – that they will likely be as closed to full fidelity as possible. For unknown reasons, those final tests will be performed in Arizona instead of SpaceX’s usual California-based locations of choice.

Most likely, those tests will involve a Crew Dragon-shaped simulator that will perform drop tests as if it were a flightworthy spacecraft returning from space. That would involve fairly high-altitude drops in which the spacecraft simulator uses mortars to eject a hatch and deploy drogue chutes, stabilizing Crew Dragon’s orientation before four main chutes are carefully deployed a gentle splashdown or touchdown.

Ultimately, if those tests go exactly as planned and NASA is able to finish reams of paperwork in time, Crew Dragon could be ready for its astronaut launch debut (known as Demo-2) as early as late-April 2020, although May or June may be more practical. In doing so, SpaceX is all but certain to become the first private company in history to launch humans into orbit.

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

SpaceX Crew Dragon spacecraft nears last parachute tests before astronaut launch debut

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Elon Musk’s Boring Company completes Las Vegas tunnel major milestone


The Boring Company’s first Las Vegas tunnel reached a major milestone on Friday after completing excavation on the first of two planned vehicular tunnels beneath the Las Vegas Convention Center campus.

The boring machine broke through its target destination – a concrete wall located on the West Hall convention that’s currently under construction – in record time after tunneling nearly a mile since The Boring Company’s groundbreaking event in Las Vegas on November 15, 2019.

This would mark the first half of its high-speed transport system intended to shuttle convention attendees across the sprawling Las Vegas Convention campus in just over one minute, free of charge, in all-electric Tesla vehicles. Tesla’s goal is to complete the Las Vegas Convention Center’s loop system on time for the next year’s 2021 CES technology show.

Once the first tunnel is completed, the tunneling startup is expected to disassemble its TBM from the west end of the West Hall and moved back to the east end of the East Hall. Doing so completes the second tunnel, and it will mark the completion of the LVCC Loop’s transport line. After this, work will commence on fitting the tunnels to support The Boring Company’s transport pods, which will be ferrying passengers from one end of the LVCC to another. 

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The Las Vegas transport tunnels will be the first mainstream project of The Boring Company. Prior to the LVCC Loop, the tunneling startup has only completed a proof-of-concept tunnel in Hawthorne, CA, which involved Tesla Model X SUVs ferrying passengers from one end of the line to another. The Las Vegas tunnel system is poised to utilize another type of vehicle to transport passengers. The line will reportedly be using autonomous vehicles that have enough room for up to 16 people. 

While The Boring Company’s transport tunnel in Las Vegas is progressing well, the project is starting to become quite polarizing. In a statement to Inverse, Richard N. Velotta, a journalist who has been following the project’s progress, noted that public opinion has become very mixed today. “What I find most interesting is that those who are opposed are extremely opposed. Those who support are extremely supportive. No middle-of-the-road here,” he said. 

Among the LVCC Loop’s critics is Mayor Carolyn Goodman, who argued that the Boring Company and its technology are largely untested, and therefore risky. Yet, it should be noted that the tunneling startup’s contract for the project includes stipulations ensuring that The Boring Company will be liable if the system does not operate as intended. On the other hand, the project also has a number of ardent supporters. 

“There are huge supporters, both of the Boring system and Mr. Musk. They point out that Las Vegas, as a gambling city, has always taken big risks to capitalize on big rewards. This project is just such an instance,” said Velotta. 

 

(Press release from the Las Vegas Convention and Visitors Authority)

Las Vegas Convention Center Celebrates Major Milestone in Elon Musk’s Innovative Underground Transportation System; Excavation of First Tunnel Complete

LAS VEGAS – The Las Vegas Convention and Visitors Authority (LVCVA) today announced that excavation is complete in the first of two vehicular tunnels that will comprise TBC – The Boring Company d/b/a Vegas Loop underground transportation system located beneath the Las Vegas Convention Center campus. After tunneling forty feet underground for nearly a mile over the past three months, the boring machine hours ago broke through the concrete wall located near the 1.4 million square foot West Hall convention center expansion, currently under construction, signaling the official completion of excavation for the first of two one-way tunnels.

The Convention Center Loop was designed to serve as an innovative, fun and quick transportation solution to move thousands of convention attendees throughout the more than 200-acre campus with the potential for expansion in the near future to ease congestion throughout the Las Vegas resort corridor.

Next, the machine will be disassembled, transported via trucks and lowered back into the launch pit near the Convention Center’s South Hall where it will begin boring a parallel path adjacent to the first tunnel. The first commercial endeavor for the new tunneling company is designed to transport up to 4,400 convention attendees per hour and is scheduled to debut to the public in January 2021.

“This marks an important milestone in the future of transportation,” said Steve Hill, LVCVA CEO and president. “Las Vegas is proud to lead the way as the first and only destination to offer an underground transportation solution for moving visitors throughout our convention center.”

The $52.5 million underground transportation system will include three passenger stations connecting the existing 3.2 million square-foot of convention space with the convention center’s new West Hall, part of a $1.52 billion expansion and renovation. The system will allow convention attendees to be whisked across the sprawling campus in just over one minute, free of charge, in all-electric Tesla vehicles.

 

Elon Musk’s Boring Company completes Las Vegas tunnel major milestone

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Tesla’s focus on batteries is being proven right, and other EV makers are paying the price


As more and more automakers begin the transition to electric vehicles, it is becoming increasingly apparent that Tesla’s intense focus on batteries was right all along. Tesla’s strategies have always been criticized and examined under a microscope, and the company’s decision to build Giga Nevada, a facility dedicated to battery production for the Model 3, was no exception. But as veteran automakers like Jaguar and Mercedes-Benz are now finding out, investing tons of effort and resources on batteries matters a lot.

Tesla is among the industry’s most vertically-integrated companies. Similar to Apple’s consumer electronics and SpaceX’s rockets, most of what goes inside a Tesla electric car is designed and built in-house. Tesla is so serious about this; the company actually made its own seats. The same is true for the electronics that goes inside every Tesla. They are so different and superior to off-the-shelf components that teardown expert Sandy Munro compared them to the electronics of a literal fighter jet

Tesla’s 2170 battery cells. (Credit: Tesla)
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A lot of Tesla’s resources are dedicated to its battery improvements. Teslas stand tall among their rivals in the EV marketplace today primarily due to their efficiency and range, and this is made possible by the company’s battery tech. The company is not showing any signs of stopping too. Tesla has acquired several companies that could further improve its batteries, such as Maxwell Technologies and Hibar Systems. The electric car maker is even looking to produce its own batteries, with reports indicating that work is already underway to develop custom cells for Tesla’s next generation of vehicles and products. 

It’s a difficult pill to swallow, but veteran automakers have reached a point where they must honestly admit that when it comes to batteries, Tesla has a notable lead. The very representation for this idea is the Porsche Taycan, an otherwise excellent high-performance electric vehicle whose ~200-mile EPA range is an Achilles Heel. Porsche, similar to other EV makers, opted for off-the-shelf batteries for the Taycan, and it shows. The car performs beautifully, and it’s arguably the only EV that can beat a Model S fair and square in a race, but it simply does not have the range or the efficiency to beat Tesla’s flagship sedan on all metrics.

It’s not just about the battery tech and specific cell chemistries either. Over the years, Tesla also had the foresight to secure ample battery supply for its vehicles and products. From Panasonic, which has been Tesla’s partner since its early days, to CATL, which is the company’s partner for Giga Shanghai, the electric car maker has made careful preparations to ensure that its vehicles and products will always have enough batteries. Other EV makers are not as fortunate. 

The new Mercedes-Benz EQC. (Credit: Mercedes-Benz)

This is one of the reasons why the Jaguar I-PACE, one of the most decorated vehicles in modern auto history, actually stopped production for a week. Just like the Taycan, the I-PACE is actually a pretty decent EV, with its plush interior and aggressive exterior. But behind the I-PACE’s looks lies off-the-shelf batteries that are also used by other companies. This meant that when LG Chem could not supply enough cells for the vehicle, Jaguar had no choice but to stop the vehicle’s production temporarily. 

The Mercedes-Benz EQC is in the same boat. Once deemed as a potential “Tesla Killer,” the EQC’s production target for 2020 was halved by the German automaker from 60,000 vehicles to just 30,000 units. The reason was something that is pretty familiar: Daimler just could not secure enough batteries. Even companies like Dyson and Aston Martin, both of which had plans to make EVs, eventually suspended their efforts to enter the electric car market. 

Tesla is not a perfect company by any means. CEO Elon Musk would be the first to admit that the company has made many mistakes over the years. But for all its delays and production issues, there is very little that can be criticized about Tesla when it comes to its batteries and the company’s foresight in improving them and securing their supply for years to come.

Tesla’s focus on batteries is being proven right, and other EV makers are paying the price

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Diesel cars are emitting cancer-linked particles that are too small to be regulated, finds new study


Diesel vehicles are emitting more cancer-causing particles than ever. This is solidifying the fact that cars operating on diesel fuel are not only detrimental to the environment, but also to human health, directly. This is despite the fact that some automakers have stated diesel fuel is clean-burning and safe and presents no real threat to the environment or the people who are near the car itself.

A study performed by Transport and Environment, a non-profit that’s shaped some of Europe’s most important environmental laws in the last 30 years, showed that Japan’s Nissan Qashqai (called the Rogue Sport in the United States) and the Opel Astra emit between 11 and 184% more potentially cancer-causing particles when using diesel fuel than regular gasoline. The issue with these ultra-fine particles is that they may fly under any regulatory radar given its small size. “It’s thought that ultrafine particles, which are smaller than the size of a typical virus, could be the most dangerous form of car pollution as they can penetrate deep into the body and have been linked to brain cancer,” notes T&E, adding “But currently only solid particles which are larger than 23nm in diameter are regulated – despite regulators knowing for years that cars also emit these tiny particles.”

T&E is currently working toward creating new measures that would require these ultrafine particles that are smaller than 23 nanometres in diameter to be included in future tests composed by governments. Currently, T&E laboratory tests simulate real-world driving and measure a range of pollutants that are not regulated by governments. These include these ultrafine particles that are both “volatile and semi-volatile”.

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T&E states the particles are capable of penetrating deep into a human’s body and are linked to brain cancer. The presence of these particles on the road is hurting other drivers, as well as pedestrians near the road. Unfortunately, these forms of pollution are neglected by legal jurisdiction and are under no scrutiny from lawmakers.

This is despite their extremely harmful properties that were discovered by scientists and emissions engineers at T&E. This includes Anna Kajinska who worked with her team at T&E to test these newly discovered particles during laboratory experiments.

“Regulated particles are only half the story. The smallest ultrafine particles are thought to pose a bigger threat yet they’re ignored by official tests. The next Euro pollution standard must close the loopholes and set limits for all pollutants. The endgame is a standard that demands zero emissions from cars on our roads,” Krajinska said.

Volkswagen exec reaffirms commitment to diesel: ‘Now it is absolutely clean’

Automakers who continue to hold the narrative that diesel fuels are clean and safe need to be held accountable for their decision to continue manufacturing these dangerous vehicles. While the phase-out of these vehicles is becoming a more popular strategy to save the Earth, some companies state there is no risk, providing a false context to people that the car they are choosing to purchase is doing more damage than ever thought before.

The time to act on these pollutants is more important now than it has ever been. With the unfortunate presence of these microparticles in the air, cancers and other diseases are more likely to be spread from the tailpipe of a car to a human’s lungs. Regulations need to be made and applied to manufacturers so people and our atmosphere are not put at risk due to dangerous chemicals and pollutants in the air.

Diesel cars are emitting cancer-linked particles that are too small to be regulated, finds new study

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Tesla Giga Berlin gets early approval to begin land preparations ahead of construction


Tesla has received a preliminary approval from the Brandenburg State Office for the Environment to begin the initial projects for the construction of Giga Berlin. The company started its first steps by beginning the clearing of 91.5 hectares of large trees from the land.

Small trees were removed in early January to clear the space for the upcoming construction in the area. With the recent permit, Tesla would be able to take down large trees in its construction zone. This will give the company the necessary space to begin the construction of Giga Berlin’s first phase.

The early approval requires the company to adhere to preparatory measures like the construction of roads to the area where Giga Berlin will eventually stand. Currently, only gravel roads for construction vehicles are present at the site. Tesla will be required to add additional public roads for access to the location in accordance with the Federal Immission Control Act.

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Brandenburg Minister of Economics Jörg Steinbach tweeted a photograph of a machine beginning the initial phases of tree cutting in the area. “It starts! Preparations for construction have started. A historical photo from a few minutes ago,” he wrote.

The early approval means Tesla can begin working toward developing the land for Gigafactory 4 at the company’s own risk. Tesla will be required to replace the trees it removes in the designated zones, a promise that CEO Elon Musk made upon the decision to place the company’s first European Gigafactory in Berlin.

Tesla will have to comply with a number of requirements intended to protect both the citizens of Brandenburg and the environment of nearby locations as well. This includes occupational safety, noise, water, and the protection of wildlife in the area.

Construction noise will be required to stay at 70 decibels under during the day and between 40 and 55 decibels at night. This is to keep local citizens happy as buildings near the site could experience disruptions due to the removal of large trees and the upcoming construction work. Noise measurement devices will be kept nearby to ensure that Tesla abides by these standards, according to the Ministry of Agriculture, Environment and Climate Protection of Brandenburg.

In addition, special requirements that will protect soil and groundwater will be implemented as well. This is because a portion of the site is in a designated drinking water protection zone. Construction vehicles will be required to refuel outside of these locations to ensure that fuels do not enter sources of drinking water.

The final approval process will continue and will not be closed until March 5. Until then, any parties involved can raise objections against the construction of Giga Berlin.

Tesla Giga Berlin gets early approval to begin land preparations ahead of construction

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Tesla’s capital raise unlocks a new chapter in the TSLA growth story


Tesla’s (NASDAQ:TSLA) recently-announced $2 billion capital raise may be surprising to some considering CEO Elon Musk’s statements during the company’s Q4 2019 earnings call, but the additional funding does point to one notion. Following this funding round, Tesla will have more cash than ever before, and this makes the company primed to go full speed into its upcoming high-profile initiatives. 

It has been less than a year since Tesla last raised capital. Yet a lot of things have happened and a lot of things have changed since the company’s funding round in May 2019. While it could be argued that Tesla opted to raise money last year at a time when the company was at a low point, the electric car maker seems intent on increasing its cushion from a position of strength this time around. 

Arguments about Elon Musk’s apparent opposition to a funding round aside, there are several compelling arguments for Tesla’s $2 billion capital raise. With this latest funding round, Tesla’s cash position would be at its highest in the company’s history at around $8 billion. That provides a lot of runway, and it’s probably enough to kickstart several high-profile projects. 

Tesla Gigafactory 3 in Shanghai General Assembly (Source: Tesla)
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Tesla’s press release about its new funding round was very understated, with the company merely stating that the additional capital will be used to “strengthen” its balance sheet. Tesla also noted that the funds would be used for “general corporate purposes.” These statements provide a pretty open interpretation of what the additional funding could be used for, though considering the company’s upcoming projects, it’s quite difficult to argue against Tesla’s additional funds at this stage. 

The electric car maker, after all, has several high-profile projects that are ongoing. Giga Shanghai is reportedly on its second phase of construction, with the facility now being prepared for its eventual production of the Model Y crossover. Giga Berlin is set to break ground soon, and construction of Phase 1 is expected to commence soon after. The Model Y is also set to enter production fully, followed by the Semi later this year. The Cybertruck is also set to be produced next year, and perhaps the next-gen Roadster as well. A ramp of the Semi’s Megacharger Network is also yet to begin. 

Credit: Tesla

These are but part of the company’s projects for its electric car business. Tesla also intends to pursue a serious ramp of its energy division, propelled by its flagship Solarglass Roof tiles. The company’s battery storage products, such as the Megapack and Powerwall, are yet to be fully ramped as well. 

Amidst all these initiatives, it is pertinent to note that for the longest time, Tesla was operating pretty much like a stereotypical Silicon Valley startup: cash-strapped at times and spending extremely frugally to survive. Yet with Model 3 demand proving consistent and more high-volume vehicles like the Model Y coming soon, the story seems to have changed for Tesla. This time around, the company is pursuing its trademark ambitious goals more equipped than before. This is quite an encouraging sign. 

After all, a cash-strapped Tesla is what brought the Model S to the market, and that changed the very perception of what a premium sedan could be like. A cash strapped Tesla is also what created the Model 3, a vehicle so disruptive it is thriving at a time when sedans are a dying breed in a number of key markets. One can only imagine what a well-funded, well-equipped Tesla could do, especially when it’s about to release its most mainstream vehicles yet.

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

Tesla’s capital raise unlocks a new chapter in the TSLA growth story

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