Model S drivers can drive from Stockholm to Cote d’Azur for free
Photo courtesy of Tesla
Tesla marked the continued rapid expansion of its fast-charging network last week by opening its 50th Supercharging location in Europe. The unveiling of the new site in Narbonne, France, is another step towards an extensive Supercharger network in Tesla’s major European markets, including the UK, Scandinavia, the DACH region, Benelux, and France.
Tesla’s Supercharger network in Europe has expanded quickly since the first installation in Norway in August 2013. Supercharger routes now enable free electric travel between major cities and the most popular highways from Scandinavia to the French Riviera. Routes covered include Oslo-Stockholm-Copenhagen, Hamburg to Geneva and Berlin to Frankfurt. In France, the “Route du Soleil” runs from Paris to the Cote d’Azur and new locations in the north are coming soon to allow travel to Amsterdam. In the UK, new Supercharger sites open in London and Birmingham this week.
Tesla recently energised its 168th Supercharger worldwide, making it both the largest and the fastest-growing fast-charging network in the world. In July, the European Supercharger network alone delivered more than 600 MWh of energy to Model S vehicles. That energy accounts for a collective 2.2 million miles driven, the equivalent distance of driving to the moon and back four and a half times. In this same month, Superchargers in Europe have saved more than 380,000 litres of petrol and offset up to 1,100 tons of carbon dioxide.
For more details on the continued global expansion of the Supercharger network, visit http://www.teslamotors.com/supercharger & http://www.teslamotors.com/findus.
Hundreds of Tesla customers and enthusiasts came together at Hong Kong’s Kai Tak Cruise Terminal on Wednesday to celebrate the arrival of the first right hand drive Model S’s in Asia. On hand to deliver eight Model S keys and introduce Hong Kong’s first two Supercharging sites was Jerome Guillen, Tesla’s Vice President of World Wide Sales and Service.
“We could not be here without you,” Guillen told the crowd. “It is really meaningful and we appreciate your commitment to helping us with our goal, which is to accelerate the transition to sustainable transportation.”
Dennis Lo, a Tesla Roadster owner and one of the eight people to take delivery of a new Model S at the event, also spoke to the crowd, which included Hong Kong movie star and new Model S owner Alex Fong. “Tesla has completely redefined what an electric car can be, and what can be achieved with zero emissions,” Lo said.
Hong Kong’s first Superchargers are the latest and most advanced models and will soon be followed by a series of Supercharging locations throughout Hong Kong, allowing Model S owners to charge for free.
For more scenes and action from the event, watch this highlights video.
This article is a repost (7-26-14), credit: Tesla. Video courtesy of Tesla.
Since a successful Tesla is in the national interest, federal lawmakers would be wise to stop all this state auto dealership nonsense. The idea that Tesla cannot sell its electric cars in its stores in certain states is asinine. This issue is an obvious distraction for Tesla, with CEO Musk taking time to blog instead of innovate. There are already enough states with varying Tesla bans, making the situation ripe for federal law (restraint of interstate commerce).
A week ago, the New Jersey Motor Vehicle Commission banned Tesla from selling its cars in its Jersey stores. Tesla CEO Musk reached out to NJ in a blog post (3-14-14): “Our stores will transition to being galleries, where you can see the car and ask questions of our staff, but we will not be able to discuss price or complete a sale in the store.” Mr. Musk continued: “We are evaluating judicial remedies to correct the situation.”
Tesla tweeted (3-16-14): “Green River, UT is now Supercharged, making over 80 Superchargers in the US alone. See where you can charge for free: http://www.teslamotors.com/supercharger.” Progress! Tesla stock (TSLA) closed today at $240.04 per share. The 52 week high is $265.
US Oil Angst
Clearly, anti-Tesla auto dealers would prefer to nail the country to an oil import tanker before letting Tesla revolutionize the auto business. What do federal lawmakers plan to do when the shale oil fields peak? We’re spinning our wheels as a nation, consuming almost 19 million barrels of liquid fuels a day, still beholden to the world oil market and its many seedy players. The International Energy Agency (IEA) has estimated that conventional oil fields decline at about 6% post peak, and shale oil wells decline to a trickle after a few years of production. EOG Resources stated on its Q4 conference call that it is seeing a flattening of overall Bakken oil production.
North Dakota’s oil production remained approximately even in January, according to the latest release (3-15-14) from the North Dakota Department of Mineral Resources, which showed oil production at 28,926,977 barrels in January 2014 (933,128 barrels a day), up from 28,727,304 barrels in December 2013. The US Energy Information Administration (EIA) expects North Dakota production to rise more significantly in coming reports from the state due to improved weather conditions.
Model S at Supercharger Photo courtesy of Tesla
The EIA expects overall US oil production to rise to 9.2 million barrels a day (mb/d) in 2015, up from present production of about 8.18 mb/d. US average annual oil production peaked in 1970 at 9.6 mb/d using conventional drilling methods. Prior to the coming peak in US oil production using fracking technology, the price of WTI oil will likely rise, anticipating the decline of shale oil fields. When the peak comes, federal lawmakers will scramble for solutions.
World Oil Angst
The International Energy Agency (IEA) raised its 2014 oil demand estimate slightly to 92.7 million barrels a day; the IEA sees a stronger worldwide economy ahead. Oil prices have been surprisingly tame in recent trade, given international tension over Ukraine. WTI oil is $99.4 a barrel and Brent $106.6. At the CERAWeek conference (3-4-14), Chevron CEO John Watson called $100 oil the new $20, lamenting the rising costs of producing oil.
Oil and War
Courtesy of EIA
Iraq remains one of the last places where large quantities of easy oil can be produced to increase world supply. In February, Iraq increased oil production significantly to 3.6 mb/d, up about a half million barrels, which took some of the edge off international tensions over Ukraine. Iraq’s Oil Minister Abdul Kareem Al-Luaibi hopes to reach 4.1 mb/d in production this year and export 3.4 mb/d. However, as the chart shows, Iraq has hardly been a long-term steady producer.
Conflicts within the Middle East never stop stunning the West. Libya’s oil production has dropped to a range of about 100,000 to 120,000 barrels a day, according to Libya’s acting Minister of Oil Omar Shakmak. The country’s prewar production was about 1.6 mb/d.
“American forces yesterday boarded and took control of a commercial tanker ship that was seized earlier this month by three armed Libyans, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a Defense Department news release issued today.” – DOD (3-17-14)
The US Department of Energy (DOE) has decided to release 5 million barrels of oil from the Strategic Petroleum Reserve (SPR), testing the SPR system in case of an oil disruption emergency. The winning bids for the oil were announced yesterday; Phillips, Shell, Exxon, Marathon and Mercuria were the buyers.
Petrobras Oil Expense Risk
Brazil’s state oil company, Petrobras (PBR), sold more debt on March 10, raising a whopping $8.5 billion. Despite being the world’s most indebted oil company, Petrobras can still sell debt with an investment grade rating. There is a lot of money and power riding on Petrobras, so rating agencies must be nervous about making the tough call. Petrobras had about $114 billion in debt at year end 2013, and the company does not expect to return to positive cash flow until 2016. PBR closed today at $10.56. A new 52 week low was made yesterday at $10.2, dangerously close to single digits.
Petrobras is the world’s best example of how oil is crowding out normal economic development. It will take a crisis to see real change.
Russia The Bear
Russia is the world’s largest producer of crude oil, averaging approximately 10.5 mb/d (10.51 in 2013), according to the Russian Ministry of Energy. While Europeans may fret about Russian gas and oil supplies, the US is most concerned about oil. Russia exports about 7.4 mb/d of liquid fuels (EIA 2012 est.) and has the power to shut down the world economy by withholding oil exports from the market. Iran does not hold such sway.
Senator John McCain stated on CNN (3-16-14): “Russia is a gas station masquerading as a country.” Senator McCain continued clarifying: “It’s a nation really only dependent on oil and gas for their economy.”
“Oil and gas revenues accounted for 52% of federal budget revenues and over 70% of total exports in 2012, according to PFC Energy.” – EIA Russia Analysis
Courtesy of EIA
About EV News Report
EV News Report is a community blogging website for electric vehicle and greentech enthusiasts, as well as peak oil activists. Please help accelerate the electric vehicle and greentech movements by submitting an original article to EV News Report by following the video instructions on the About tab.
The world is transitioning from the fossil fuel age to the clean electric energy era. Two major world emergencies are driving this change:
1. There are over 7 billion people on the planet according to the United Nations. Today’s worldwide economic growth is placing tremendous demands on the energy sector. Unfortunately, according to the International Energy Agency, approximately 80% of the world’s energy is derived from fossil fuels. Absent an energy revolution, climate research tells us that the planet will be significantly warmer and altered for future generations.
2. The oil market is expensive and fragile. The door is open to green alternatives; however, high oil prices may destroy the currencies of oil dependent nations before the EV and greentech revolutions have a chance to reach mass adoption.
Tesla Giga Factory rendering Image courtesy of Tesla
Tesla Painted a Picture for Wall Street
Tesla sold the Giga Factory to Wall Street, raising two billion from convertible notes, helping to alleviate doubts about the company’s ability to become a major auto mass producer. The five ($800 million) and seven year ($1.2 billion) convertible notes pay meager coupons of .25% and 1.25% respectfully, which should raise few near-term financial concerns considering Tesla’s fantastic sales growth expectations. The stock (TSLA) hit a high of $265 on Wednesday, which came shortly after a bullish report ($320 price target) from Morgan Stanley Analyst Adam Jonas. TSLA closed at 244.81 per share today, down 3.06%.
CEO Elon Musk is the golden boy with the Midas touch. He knows how to paint a picture, and this last one had sustainable sugar plums dancing in Wall Street’s head, with solar, wind, and batteries galore. Mr. Musk also plays to win and to win big, holding a 27% stake in Tesla as of December 31 2013, which is greatly admired by most players, big and small.
Goldman Sachs keeps dragging along in TSLA’s rearview mirror, raising its price target to $170, but remaining skeptical about the stock’s valuation. Goldman is not alone in thinking Tesla’s 30 billion market capitalization is excessive, but most skeptics have been silenced due to Tesla’s excellent execution and business integrity.
Tesla Production Guesstimates
Tesla plans to be producing about 1,000 electric cars a week by the end of 2014 at its Fremont Factory, up from about 600 a week today. By 2020, the future Giga Factory is expected to produce enough batteries for 500,000 Tesla electric cars a year, which is the approximate capacity limit of the Fremont Factory. On the Q4 conference call, CEO Musk expressed his best guesses for future demand for the Model S and X, estimating about 1,000 a week for each, possibly more for the X, leaving the remaining capacity for the Gen III. For clarity, let’s round these figures to be 50,000 S, 50,000 X and 400,000 Gen III by 2020.
Gen III, The Major Road Ahead
As of December 31 2013, Tesla had only produced about 2,500 Roadsters and a little over 25,000 Model S cars. These are small numbers; however, Tesla has tremendous opportunities ahead within the two trillion dollar plus global new auto market (CEO Elon Musk stat. Q4 cc). The Gen III is the big act to come. If the Gen III lives up to expectations, Tesla will need more Giga, more Fremont Factory, more Supercharger, more everything Tesla.
Tesla has been studying charging strategies for apartment dwellers. On the Q4 cc, CEO Musk simply stated: “We are working pretty hard on that. We believe we’ve got some good solutions. We’re going to talk more about that in the coming months.”
Morgan Stanley sees Tesla also disrupting the electric utility business with stationary battery storage. Certainly, Tesla has an opportunity in this field, especially in home energy storage with its relationship with SolarCity, but it is still far too early to judge the long-term technological direction of this market. There are multiple battery designs and chemistries that may prove to be more economical as stationary storage but unsuitable within an electric vehicle. Regardless of the battery storage business, Tesla has plenty of lithium-ion battery demand for electric cars for years to come.
Tesla tweeted today: “Tesla Superchargers have charged over 10 MILLION miles to Model S. Enough to go to the Moon & back 20 times.”
The Oil Elephant in the Room
President Barack Obama shakes hands with a worker as he and Transportation Secretary Anthony Foxx tour the Metro Transit Light Rail Operations and Maintenance Facility in St. Paul, Minn., Feb. 26, 2014. (Official White House Photo by Pete Souza)
Vice President Joe Biden sits at the controls of one of Amtrak’s new “Cities Sprinter” electric locomotives at the 30th Street Station in Philadelphia, Pa., Feb. 6, 2014. (Official White House Photo by David Lienemann)
With peak oil a primary concern, President Obama and Vice President Biden spent time recently reviewing transit electric vehicles. Maybe, just maybe, they will entertain the Hyperloop idea.
West Texas Intermediate (WTI) oil closed the week at $102.59 per barrel. Brent is around $109. With Cushing oil inventories declining to normal levels, the spread between WTI and Brent should near parity.
The world has been locked into a doomed relationship with the oil market, being led by the dubious Saudi America, setting up the world economy for a hard fall. Saudi America is a fantasy state that ignores oil depletion, and it is crowding out normal economic development, wasting monies and time on energy projects that are archaic.
Tesla has the most sensible strategy to a sustainable world, aiming first at reducing gasoline demand.
Giga Factory Future
The future for electric cars, renewables and battery storage has never looked better, with particular thanks to Tesla CEO Elon Musk. Tesla plans to have the Giga Factory powered by wind and solar, with battery storage most likely as well. Panasonic is expected to be a major partner in the future factory, building upon its existing supplier relationship to Tesla today. Tesla CEO Musk expects there to be multiple partners due to the heavy capital costs to build the factory, estimated at 4-5 billion.
By 2020, the Giga Factory battery cell output is expected to be an incredible 35 GWh/yr, producing more battery cells than the entire 2013 worldwide market, according to Tesla Motors. In its first year of production (2017), the factory is expected to drop battery pack costs by more than 30% due in large part to economies to scale. It is in 2017 that Tesla plans to start ramping production of its much awaited and much needed Gen III car.
In a blog post, Tesla highlighted Texas, New Mexico, Arizona and Nevada as states in the running for the Giga Factory site, which would employ approximately 6,500 people. Unfortunately, California has been mysteriously missing from the Giga Factory location list, surprising many due to the obvious logistical benefits for Tesla. California Governor Jerry Brown announced yesterday that he will be running for re-election, which is great news for the environmental movement. Maybe Governor Brown still has time to talk Giga and Hyperloop too.
About EV News Report
EV News Report is a community blogging website for electric vehicle and greentech enthusiasts, as well as peak oil activists. Please help accelerate the electric vehicle and greentech movements by submitting an original article to EV News Report by following the video instructions on the About tab.
The world is transitioning from the fossil fuel age to the clean electric energy era. Two major world emergencies are driving this change:
1. There are over 7 billion people on the planet according to the United Nations. Today’s worldwide economic growth is placing tremendous demands on the energy sector. Unfortunately, according to the International Energy Agency, approximately 80% of the world’s energy is derived from fossil fuels. Absent an energy revolution, climate research tells us that the planet will be significantly warmer and altered for future generations.
2. The oil market is expensive and fragile. The door is open to green alternatives; however, high oil prices may destroy the currencies of oil dependent nations before the EV and greentech revolutions have a chance to reach mass adoption.
