Tesla has an edge over other automakers during the COVID-19 crisis


Detroit veteran and automotive industry legend Sandy Munro believes Tesla will rebound from the current economic crisis due to the coronavirus pandemic quicker than any other automaker. Munro shared his ideas on why he feels Tesla will emerge more reliably than any automaker during a recent interview with E for Electric’s Alex Guberman.

“Tesla, because they are vertically integrated, they’ll move up faster than someone who has tons of suppliers. And the reason for that is because every supplier is on a payroll and they all want to get going because they want to make sure they keep a paycheck,” Munro said.

Simply put, Tesla’s ability to create most of the parts of their cars in-house creates less disruption in the company’s supply chain. “You can only move as fast as whoever the slowest supplier is, and you’re only going to be as good as the worst quality supplier,” Munro added.

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While Tesla does maintain some suppliers for parts like windshields, brakes, and a vehicle’s battery chiller, many other components, like car seats, are made at a separate facility that is just a couple of miles south of the Fremont factory.

It is no surprise that the coronavirus pandemic has hit the automotive industry extremely hard. Virtually every manufacturer has been forced to shut down production lines due to the ongoing spread of the virus, causing economic hardship for the companies, which has, in turn, led to layoffs and furloughing of employees to preserve cashflow. Yesterday on March 25, Reuters reported that Detroit’s “Big Three,” meaning General Motors, Ford Motor Company, and Fiat Chrysler, would all extend production shutdowns into April.

Tesla announced on March 19 that shutdowns of both the Fremont production facility and New York Gigafactory, simply known as “Giga New York” would be shut down on March 23 to prevent the spread of the virus. However, Tesla is planning to begin manufacturing Medtronics brand ventilators at both the Fremont and New York factories to help with the shortening supply of the breathing devices,

Although Tesla has temporarily shut down its facility that employs 10,000 people, the company continues to deliver vehicles through an expanded set of delivery options.

Nobody truly knows when the COVID-19 virus pandemic will come to an end. Many industries, including automotive, are feeling the effects of the virus from an economic standpoint, Tesla seems to be emerging as the favorite to come out of the crisis with the most momentum. This is thanks to Tesla’s ability to manufacture many parts of its vehicles in-house.

Watch Sandy Munro’s interview with E for Electric’s Alex Guberman below.

Tesla has an edge over other automakers during the COVID-19 crisis

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Volkswagen’s software issues with the ID.3 are worse than reported: ‹It is an absolute disaster›


The software issues plaguing the Volkswagen ID.3 have been reported for some time, but new details from insiders at the German automaker have hinted that the all-electric hatchback’s problems may be worse than initially reported. The update comes amidst a confirmation of the ID.3’s software challenges by a VW spokesperson. 

Local media reports have indicated that Volkswagen will likely only release a toned-down version of the ID.3 at first due to the ongoing problems with the vehicle’s software. Thus, Volkswagen will probably still stick with its long-communicated delivery schedule this summer, as noted by CEO Herbert Diess while presenting annual figures last week. To accomplish this, “one or the other planned function” of the ID.3 will reportedly be canceled, and later delivered through an update. 

These details were confirmed by a Volkswagen spokesperson, who addressed the topic in a statement to news outlet sueddeutsche.de. “Things are not going great,” the spokesperson said. Insiders quoted by the publication painted a much graver picture. “It is no longer a laughing matter,” the insiders noted. 

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The publication’s sources indicated that the ID.3 is far from being ready for the market and that Volkswagen is “not even close to an industrial production process at ID.3.” As for the vehicles that will reportedly be delivered this coming summer, the insiders related that they would be tasked to “tinker them by hand so that something is there.” This does not have anything to do with series production, though. 

An internal source from Volkswagen explained that ID.3’s software issues were mostly due to a lack of qualified personnel. But apart from the lack of programmers and vehicle software specialists, key individuals have also been departing from VW. Among these is Martin Hoffman, the CIO responsible for Volkswagen’s IT division, who will be leaving the automaker at the end of this month. “It’s an absolute disaster. We just can’t get the people,” the insiders said. 

Amidst these issues, Volkswagen is reportedly tagging in an unlikely ally to help prepare the ID.3 for production. This ally would be Daimler, which is already in talks with BMW for joint software development. A small meeting between some of Volkswagen and Daimler’s key executives was reportedly held recently, and it was discussed how the two automakers could collaborate to develop an operating system for cars. Such a deal would likely put Daimler in a tricky situation, as cooperation among Germany’s three top automakers is very unlikely. 

Overall, it appears that the importance of in-vehicle software is becoming more and more evident among Germany’s automakers, and it seems that Volkswagen would do what it can to make sure that it can at least reduce the lead currently enjoyed by Tesla. The American electric car maker had shunned existing supply chains when it was developing its electric cars’ software, developing its in-vehicle systems from scratch. Unlike traditional automakers, Tesla’s software runs on a central control unit, giving it a much more efficient structure that is optimized for software updates and maintenance. 

Volkswagen’s software issues with the ID.3 are worse than reported: ‹It is an absolute disaster›

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Tesla (TSLA) is best bought on recent ‘market dislocation,’ says Wall St


Tesla stock (NASDAQ:TSLA) recently received an updated outlook from Piper Sandler, with analyst Alexander Potter emphasizing the electric car maker’s long-term perspective in a recent note. According to the analyst, TSLA should be bought on current “market dislocation,” particularly as the electric car maker’s overall prospects remain stable.

Potter actually lowered Piper Sandler’s price target on TSLA from $928 to $820 per share. That’s still a potential 36% upside from Tesla stock’s closing price of $528 per share on Thursday. But despite his lower price target on TSLA shares, Potter kept his “Overweight” rating on the stock.

In a recent note, Potter stated that Tesla investors should be using the recent market dislocation to buy TSLA. He added that while the electric car maker’s Q1 2020 results will most certainly reveal a downside versus published consensus, the company’s long-term positioning remains effective.

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The analyst further noted that Tesla’s “recently-fortified” balance sheet should provide ample liquidity to the electric car maker. This is especially advantageous for Tesla since the company has no major debt maturities to address until March 2021. Lastly, Potter stated that Tesla benefits from company-specific tailwinds that should partially offset macro weaknesses.

The Piper Sandler analyst’s estimates about Tesla’s long-term prospects seem to be a solid argument, especially considering the company’s current lineup of vehicles and its overseas activities. Tesla has recently started deliveries of the Model Y crossover, for example, and that vehicle could prove to be the electric car maker’s most disruptive EV yet.

The Model Y shares 75% of its parts with the Model 3 sedan, a car that Tesla spent years perfecting on the production line. This means that the Model Y’s design and production are built on every lesson that the company learned over the Model 3 ramp. Several innovations were also rolled out to the Y, such as a new heat pump system, a radar heater, and a new body cast design. All these would likely allow Tesla to optimize the Model Y for maximum profitability.

Overseas, Tesla is also putting the pedal to the metal. After successfully battling the coronavirus outbreak in its Gigafactory 3 facility, Tesla has resumed full operations on the Shanghai-based site. Made-in-China Model 3 production has reportedly hit 3,000 per week, and construction on the massive Phase 2 zone of the plant is accelerating. Even in Brandenburg, where Gigafactory Berlin is poised to be built, ground clearing activities have continued, hinting at progress on the site despite Europe’s current situation with the coronavirus.

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

Tesla (TSLA) is best bought on recent ‘market dislocation,’ says Wall St

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SpaceX «DARKSAT» results: can Starlink and astronomy happily coexist?


Astronomers have begun to gather and analyze detailed observations of a SpaceX Starlink satellite prototype officially labeled DARKSAT and the initial results hint that the satellite constellation should be able to happily coexist with ground-based astronomy in the future.

Since SpaceX began launching batches of 60 Starlink satellites in May 2019, the company has raised the ire of parts of the astronomy community and simultaneously awed and inspired many less technical observers with clusters of shooting star-like satellites that are easily visible after launches. While the mid-sized spacecraft do become much dimmer as they raise their orbits from ~300 km (185 mi) to 550 km (340 mi), they are far from invisible even at that operational altitude. It’s safe to say that the current impact on ground-based astronomy is still just shy of negligible even with 360 satellites in orbit, but that impact is assuredly greater than zero and the relatively bright spacecraft have already interrupted telescope observations at many sites around the world.

Given that the 360 satellites already in orbit are just a tiny fraction of the ~4400, ~12,000, or even ~40,000 that SpaceX could one day launch, it would be irresponsible to argue that the constellation’s impact – and the impact of others like it – will continue to be minor as the number of satellites grows. Thankfully, while it doesn’t appear that prospective low Earth orbit (LEO) constellation architects anticipated the potential astronomy impact, SpaceX’s Starlink team has rapidly responded and already launched a satellite featuring tweaks designed to dim its appearance from the ground. For several reasons, the initial results from “DARKSAT” are extremely promising – now visible below in some of the first photos offering a useful comparison.

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Launched on January 7th, 2020, a set of 20 spacecraft including DARKSAT – representing a single “plane” of the broader Starlink constellation – all arrived at their operational ~550 km (340 mi) orbits by February 23rd. As previously discussed on Teslarati, initial results first published on March 18th revealed that the Starlink DARKSAT prototype – essentially an early alpha test for darkening techniques – was already 55% darker than unmodified spacecraft. While making satellites less reflective makes thermal management a much greater challenge, DARKSAT has managed to raise its orbit and begin operations without issue, although it’s unknown whether the satellite’s antennas and avionics are also functioning nominally.

Falcon 9 B1049 lifted off for the fourth time with a batch of 60 Starlink satellites on January 7th. (Richard Angle)

For darker spacecraft, perhaps the most important test will be long-term reliability, as constantly absorbing more heat than a reflective satellite is likely to put their structure, avionics, and radiators through significantly more thermal stress. As such, SpaceX may launch a limited number of additional darkened prototypes over the coming months but is much less likely to darken all satellites on any given launch until DARKSATs have successfully operated in orbit for months or even years.

On the ground, SpaceX may try to perform sped-up stress testing, but proving that darker satellites are a viable solution will almost invariably take time. Earlier this month, CEO Elon Musk revealed that SpaceX may attempt to design deployable solar shades for Starlink satellites if darkening their bodies is not enough to fully mitigate major impacts to astronomy. Knowing SpaceX, the first in-orbit solar shade test(s) could happen during any of several upcoming Starlink launches.

While all satellites struggle with thermal management and typically rely on mirror-like foil insulation and shiny surfaces to stay cool, Starlink’s uniquely flat and rectangular design makes it exceptionally reflective. (Teslarati – SpaceX)

Adding reliable, deployable solar shades without appreciably raising Starlink’s production costs could be a major challenge, given the fundamental complexity of large, deployable mechanisms in space, but SpaceX – if anyone – is likely up to the challenge. More importantly, the fact that SpaceX’s very first attempt at reducing Starlink albedo (reflectivity) has produced a satellite 55% darker than its peers suggests that much more can probably be done along those lines, given additional time for extra experiments and deeper optimization.

As a result, it may be the case that SpaceX ends up launching 750-1000+ reflective Starlink satellites before an affordable, mass-producible DARKSAT variant is ready to take over. In that event, Starlink could plausibly have a small to moderate negative impact on ground-based astronomy for several years. However, comments made by SpaceX executives over the years suggest that no single Starlink satellite is likely to operate for more than five or so years before being replaced, meaning that the entire constellation would be continuously refreshed (as long as it’s generating revenue). Even if a thousand bright(er) Starlink satellites make life a bit harder for some astronomers, the fact remains that the consequences of any single Starlink satellite variant – assuming SpaceX remains serious about fully mitigating the constellation’s impact – are inherently temporary.

An animation of SpaceX’s Starlink satellite constellation. (SpaceX – gif by Teslarati)

If SpaceX continues to make progress darkening satellites and developing cheap solar shades, it seems all but guaranteed that even a constellation of tens of thousands of Starlink satellites will be able happily coexist with the astronomy community, all the while delivering cheap, fast internet to millions of people – especially those lacking access – around the world.

SpaceX «DARKSAT» results: can Starlink and astronomy happily coexist?

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Livestream of Tesla Model Y teardown is coming from industry expert Sandy Munro


The Tesla Model Y will undergo a full teardown on Livestream by automotive industry veteran Sandy Munro, beginning April 2.

Munro made the revelation in an episode of E for Electric on YouTube, while offering his personal anecdotes about the auto industry’s response to the coronavirus pandemic.

Initially, the automotive veteran did not have high hopes on taking delivery of a Model Y, after being told that the car would not arrive. However, just hours later, the sentiment changed.

“At 6 in the morning, I was told we won’t be getting a car. And then, it’s 10 o’clock, and they said ‘Do you want an opened truck or closed truck for shipping?’ and, so it’s on the way,” Munro said with a smile on his face.

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Munro’s vehicle teardowns have been a valuable tool for competitive analysis by automotive industry experts. His first teardown of a Tesla drew heavy criticism after he called Model 3’s build quality a “miserable job.” However, in a subsequent analysis of the teardown, Munro discovered Tesla’s ability to maintain an impressive 30% profit margin on the Model 3, which stood significantly higher than the other electric vehicles on the market.

Munro and Associates’ Livestream of the Model Y teardown will begin on April 2, while the rapid disassembly will take place on April 6, at Munrolive.com. The idea for a live teardown came from company President Corey Steuben, when brainstorming ways to launch the new MunroLive website. “We’ll talk about what we found, and what we’re excited about,” notes Munro.

Watch Sandy Munro’s interview with E for Electric’s Alex Guberman below.

Livestream of Tesla Model Y teardown is coming from industry expert Sandy Munro

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SpaceX Starship launch pad upgraded as Elon Musk reveals rocket production milestone


SpaceX has begun to upgrade its South Texas Starship launch pad in anticipation of the completion of the next full-scale rocket prototype, photos of which CEO Elon Musk revealed just hours ago.

Working in parallel with efforts to repair damage caused by Starship serial number 1’s (SN1) violent February 28th test failure, SpaceX has managed to build, complete, and test an entirely separate ‘test tank’ and complete fabrication of a second full-scale Starship in a handful of weeks. Flexing the growing capabilities of the impressive Boca Chica, Texas Starship factory SpaceX has sprung up in just three months, the company is working around the clock to build not just one – but several – Starship prototypes simultaneously.

A successful March 9th tank test designed to prove a new thrust structure design managed to do just that less than two weeks after the same faulty part brought about Starship SN1’s demise. In the two weeks since that its test completion, SpaceX has been busy welding, stacking, welding, and stacking several separate sections of the next Starship prototype, known as SN3. Potentially a matter of days away from structural completion, focus has recently shifted to the launch pad the ship will be tested at. In the last few days, SpaceX technicians have begun to install a bizarre, new structural element on the mount Starship SN3 will be secured on top of, hinting at the goals of the rocket’s first test campaign.

SpaceX has officially stacked Starship SN3’s tank and engine section, effectively completing the business end of the rocket prototype. (NASASpaceflight – bocachicagal)
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Squeezing in alongside efforts to repair the propellant lines that run into the launch mount, upgrades began on March 24th as a SpaceX team worked to install what looked like an incredibly sturdy tripod (with four ‘legs’, of course). Thanks to familiar testing done with SpaceX’s most recent Starship tank prototype, the purpose of the launch mount’s newest appendage quickly became clear.

Visible at the bottom of the Starship SN2 test tank, SpaceX is using an intriguing setup to simulate the thrust of Raptor engines. (NASASpaceflight – bocachicagal)
SpaceX began upgrading Starship’s Texas launch mount with a mount for three jacks on March 24th. (NASASpaceflight – bocachicagal)

During the Starship SN2 tank’s thrust structure (‘thrust puck’, per Elon Musk) test campaign, SpaceX debuted the concurrent use of a beefy hydraulic jack to simulate the forces a Raptor engine static might produce. Capable of producing upwards of 200 metric tons (440,000 lbf) of thrust at full power, SpaceX will likely begin Starship static fire tests with a single Raptor engine. As soon as a Starship prototype completes one or several single-engine test fires, the plan is to install three sea level-optimized Raptor engines and repeat static fire tests.

Before that triple-engine static fire milestone, a first for the cutting-edge Raptor engine, SpaceX needs to verify that Starship’s thrust structure can stand up to the ~600 tons (~1.3M lbf) of force it will be subjected to during such a test. Sitting on a much smaller stand, Starship SN2 used a single hydraulic jack and temporary stand to simulate a single engine’s thrust. Starship SN3, sitting much higher above the ground, will need three jacks to simulate three Raptors.

The bulk of Starship SN3’s tank section is pictured here on March 23rd. (NASASpaceflight – bocachicagal)

As such, it looks likely that Starship SN3’s first cryogenic tank proof test – filling the vehicle with inert liquid nitrogen – will coincide with a second dedicated stress test of a Starship thrust structure, hopefully proving itself capable of surviving the force of three Raptor engines at full thrust. While orbital-class Starships will need three more vacuum-optimized Raptor engines, three sea-level engines are all SpaceX needs to begin flight tests with suborbital prototypes.

Based on an unofficial analysis of existing photos, it appears that every single major structural piece of Starship SN3 – excluding legs and fins – is nearing completion, even including the ship’s shiny nosecone. Likely to head to the launch pad for its first tests as soon as the tank section alone has been completed, just one stacking event remains before said tank section reaches its full height. Right now, both of those parts have been moved to a dedicated Vehicle/Vertical Assembly Building (VAB) and are probably no more than a day or two away from being joined*. Perhaps just a day or two after that milestone, SpaceX will likely transport the massive rocket to the launch pad to begin preparing for its first proof tests.

*Around 3am local time, SpaceX technicians stacked Starship SN3’s two main segments, completing its tank and engine section.

SpaceX Starship launch pad upgraded as Elon Musk reveals rocket production milestone

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Tesla Autopilot stopped at a red traffic light and stop sign on its own


A new video showing a Tesla Model 3 being able to stop at a red traffic light automatically is a good indication that the next-iteration of Autopilot software with “feature complete” Full Self-Driving could be well on its way.

Tesla’s optional Full Self-Driving Capability (FSD) has promised the ability to automatically “recognize and respond to traffic lights and stop signs” for more than a year. In early 2019, Tesla hacker @greentheonly surfaced a dormant Autopilot feature that would allow the vehicle to stop at a red light automatically. The discovery, along with firm conviction by CEO Elon Musk that the company’s Autopilot suite would soon take on more autonomy, Tesla owners with FSD waited with high hopes for the next over-the-air update that would introduce a more robust Autopilot.

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Tesla remained quiet on when FSD’s “coming later this year” features would arrive, only addressing the continuous and fast-paced development of its increasingly smarter Neural Network, the heart of its FSD system. However, in December 2019, Tesla owners would soon get a glimpse of the full suite of Full Self-Driving features when the company rolled out software that could visualize complex objects around the vehicle.

Aside from the ability to display traffic lights, stop signs, and unique road markings, Tesla owners with Hardware 3 began showcasing their vehicle’s ability to identify garbage cans, street pylons, and even handicap parking spaces on its own.

Tesla Model 3 gets Full Self-Driving HW3 upgrade: Full details with lessons learned

A new video shared on Twitter by Out of Spec Motoring gives us the best look yet of Tesla Autopilot being able to come to a complete stop on its own when encountering a red traffic light.

In addition to the traffic signal visualization on the center touchscreen, a distinct red line is displayed in front of the vehicle icon when stopped. The red line can be seen fading away as the vehicle regains speed after the traffic signal turns green.

Beyond the ability to stop automatically at a red traffic light, Out of Spec Motoring notes that the Model 3 was also able to automatically stop for stop signs.

 

Tesla Autopilot stopped at a red traffic light and stop sign on its own

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SpaceX quarantines a few employees after first coronavirus cases confirmed at HQ


U.S. launches remain a top priority during the coronavirus pandemic. But that doesn’t mean that launch providers are not feeling its effects. SpaceX and United Launch Alliance are progressing full steam ahead, tackling its respective launch manifests as if everything were status quo.

However, SpaceX has begun to feel the effects of the virus. First, its upcoming SAOCOM 1B launch, which was originally slated to liftoff later this month, has been put on indefinite hold. That’s because the payload is an Argentinian satellite, and Argentina has put strict travel restrictions in place until further notice.

The delay doesn’t come as much surprise as countries around the world put restrictions on travel to mitigate the effects of the SARS-CoV-2 virus, which causes the COVID-19 disease. This deadly virus has been wreaking havoc across the globe, while overwhelming healthcare systems.

But despite being an essential business and needing to stay open, it doesn’t mean that SpaceX is immune. This week, two workers at the company’s headquarters tested positive for the virus.

Tesla donates supply of 3M masks to medical facilities to help staff protect themselves against the coronavirus. SpaceX will begin making necessary medical supplies to donate as well. Credit: UCLA (Credit: UCLA)
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At least one employee and one health care worker have tested positive, with others who came in contact with these individuals sent home to quarantine themselves for 14 days. The SpaceX employee had recently traveled internationally, and the company is obtaining more thermometers to conduct more employee screenings for the virus.

One Medical, which provides health services on-site at SpaceX HQ, reminded its personnel (and anyone else) who exhibit symptoms of the disease to stay home and get tested immediately.

The company has also begun to take steps to help its employees better protect themselves. This includes making hand sanitizer and face shields, which the company plans to make in excess in order to donate to local hospitals. Additionally, the company is furnishing more sanitizing options as well as spreading work stations farther apart.

Falcon 9 B1048 is pictured during launch, one frame (~0.05s) before it suffered an engine failure. (SpaceX)

As of now, U.S. launches are unaffected, aside from the SAOCOM launch. This is because SpaceX and other launch providers support national security missions, and important infrastructure like GPS, and are therefore deemed essential. So employees are required to report to work unless they are able to telework or are not feeling well.

The company had planned on launching two astronauts for NASA as early as May. That targeted date may be in jeopardy after two recent anomalies. SpaceX launched its latest batch of Starlink satellites on March 18, using a veteran Falcon 9 rocket to loft them. The five-time flier experienced an issue with one of its engines during flight.

As a result, the booster was unable to successfully land on the drone ship stationed out in the Atlantic. Following the launch, SpaceX announced that it would be investigating the issue to determine what caused it. NASA has since joined in the investigation to ensure that everything is as it should be with the Falcon 9.

That anomaly, coupled with the fact that SpaceX’s latest parachute test went awry, means that the upcoming crew mission could be delayed. If it will and by how much are yet to be determined.

SpaceX quarantines a few employees after first coronavirus cases confirmed at HQ

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SpaceX is aiding in efforts to mitigate crucial medical supply shortages


In the wake of the coronavirus pandemic, medical staff across the United States lack enough crucial supplies necessary to protect themselves against infection. Earlier this week, SpaceX CEO Elon Musk delivered a batch of much-needed face masks and ventilators to hospitals facing a shortage.

Now he wants to expand those efforts to other aspects of personal protective equipment, or PPE. According to an internal SpaceX memo, obtained by CNBC, Musk has directed his employees to start producing face masks, and hand sanitizer. The supplies will be donated to organizations in need.

Hospital staff are overwhelmed with the rising number of cases, and simply do not have enough gear to properly protect themselves. As a result, many have posted pleas on social media asking for the public’s help using the hashtags #getmeppe or #getusppe. The most crucial items needed are face masks, disinfectant, sanitizer, gloves, gowns, as well as glasses and face shields.

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Retailers like JoAnn’s fabrics have even joined the cause, instructing sewing aficionados to drop off any masks they can make. The store will deliver them to local hospitals. Ford, GM, and Tesla have already received government approval to make ventilators in their factories.

In that same vein, SpaceX employees were told over the weekend that so far, the aerospace company has manufactured and delivered 75 face shields, and donated 100 protective suits to the staff at Cedar Sinai hospital. But that’s not all; the company wants to ramp up donations and begin to produce hand sanitizer that will be CDC compliant and effective against the SARS-Cov-2 virus.

Recently, Donald Trump signed into law a Defense Production Act, allowing factories to make much needed medical supplies. The 70-year-old law, established in 1950, enables the president to order private industry to produce crucial equipment and supplies in an emergency, like the current pandemic.

In addition to the supply shortage, the country is also facing a blood shortage. And SpaceX is here to help with that as well. The company plans to host a blood drive at the American Red Cross in Hawthorne later this week, which is where SpaceX is headquartered at.

SpaceX is aiding in efforts to mitigate crucial medical supply shortages

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GM and Ford’s EV production plans for the US have leaked, and they are a joke


It appears that Tesla will remain the only serious electric car maker in the United States for quite some time. This is because despite the grand gestures and proclamations of an electric car-centric future from American automakers General Motors and Ford, the two companies’ actual production plans for North America are still centered on large, internal combustion-powered vehicles. 

According to detailed production plans from GM and Ford that were viewed by Reuters, the two biggest American automakers will be making 5 million petrol-powered SUVs and pickup trucks in 2026, and only 320,000 electric vehicles. That’s just about 5% of Ford and GM’s combined vehicle production in North America, and less than Tesla’s output in 2019 from its one factory in Fremont, CA. 

Putting it mildly, a production target of 320,000 electric vehicles in 2026 is a joke. Both companies, after all, have been insisting that they are all-in on an electric car push. Earlier this month, GM CEO Mary Barra announced a $20 billion project to bring a million EVs to market by the middle of the 2020s, though most of these vehicles will be sold in China. Ford is the same, with Executive Chairman Bill Ford stating that the company is “all-in” on an electric car push. 

If GM and Ford’s production plans for North America are any indication, it appears that a lot of these optimistic EV-centric statements may be just that: statements, and nothing more. According to data from AutoForecast Solutions, GM and Ford’s North American production of SUV models will outpace traditional cars by over 8:1 in 2026. Among these SUVs, 93% will be petrol-powered. 

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Reuters noted that AutoForecast’s data is based on planning information provided to suppliers by the carmakers themselves. Interestingly enough, Ford and GM executives did not dispute the accuracy of the data when they were interviewed by the publication. On the contrary, Hau Thai-Tang, Ford’s chief product development and purchasing officer, argued that the strategy simply makes sense. “We’re trying to time this with the natural demand of consumers (so) we’re not forced to do artificial things, and we don’t violate the laws of economics,” he said. 

Doug Parks, GM’s executive vice president of global product development, purchasing, and supply chain, was on the same page. “We want to meet customer demand with the best possible (carbon) footprint on the planet to help improve the CO2 (carbon dioxide) situation,” he said. 

Considering these statements, it seems almost strange that the Big Two American automakers have been announcing their supposed dedication towards electrification. For AutoForecast vice president Sam Fiorani, this is most likely motivated by Ford and GM’s desire to placate Wall Street, which expects EVs to become mainstream in the near future. 

“GM and Ford understand that buyers want more SUVs and trucks, but they’re also trying to play to Wall Street, which thinks the future is all about electric vehicles. The Detroit automakers would love to get a little of that Tesla magic and money,” he said. 

With such a strategy in place for North America, Ford and GM’s upcoming electric cars risk becoming yet another generation of compliance cars. This is a shame, as some EVs announced by the two automakers have the potential to cause some serious disruptions in the auto market. Among these is the Ford Mustang Mach-E, a vehicle that matches the Tesla Model Y on paper, and the GMC Hummer EV, a monster of a pickup that can be a rival to Tesla’s Cybertruck. 

GM and Ford’s EV production plans for the US have leaked, and they are a joke

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