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Tesla EV Revolution Has A Lot of Work Ahead

August 7, 2013 in Electric Vehicles, EV News, Model S, Tesla

  • Tesla is production constrained by a tiny fraction of suppliers
  • Tesla Model S, long way to go to satiate demand
  • Tesla needs more battery cell production to achieve its larger goals (Generation III)
Velkommen Model S! The first deliveries outside North America began today in Oslo!  Photo courtesy of Tesla

Tesla tweet: “Velkommen Model S! The first deliveries outside North America began today in Oslo!”
Photo courtesy of Tesla

Tesla is production constrained in the near-term.  A tiny fraction of parts suppliers are unable to ramp production.  Tesla CEO Elon Musk hopes to have this situation resolved by Q2 of 2014.  He stated on the Q2 conference call: “90% of our suppliers are able to ramp up.  5% have some difficulty.  4% have a lot of difficulty, and 1% just can’t.”  He added: “We are striving to become demand limited as opposed to production limited.”

Mr. Musk sounded a bit frustrated on the Q2 call in discussing the parts situation.  However, the company had previously said in a BusinessWeek interview in mid-July that it had managed to ramp production to 500 units a week, which is 26,000 units on an annualized basis.  Undoubtedly, the parts issue will be a discussion topic on the next conference call.

Tesla Moving Forward

The company expects Model S demand to be north of 40,000 units in late 2014.  Tesla’s Second Quarter 2013 Shareholder Letter states: “If demonstrated demand in North America and Europe is matched by similar demand in Asia, annualized sales for Model S could exceed 40,000 units per year by late 2014.”  Beyond 2014, Mr. Musk sees Model S demand increasing as the EV market matures, but he did not elaborate on the Q2 call with any specific estimates.  He stated: “There’s a pretty long, long way to go. [interruption/Pause] It’s sort a like an S curve of technology adoption.”

On the subject of Generation III, CEO Musk stated that new battery cell factories need to be built in order to produce half million Gen III cars a year.  He remains confident that Tesla will produce this mass-market EV at around $35,000, but he emphasized that Tesla needs a lot of battery cells.  He added later that the company is working very closely with Panasonic (battery supplier) to improve the cost of batteries.

Mr. Musk had previously stated that the Gen III will have access to the free Supercharger network, and he reaffirmed on the call that the battery range is expected to be about 200 miles.

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EV News Report is a news and information service on electric vehicle news with a focus on the campaigns, events and star leaders shaping the EV revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the new electric era, including Tesla news, LEAF news, and all the leading players in the electric transportation movement.

Plug-in to the electric car / electric transportation revolution by creating a free account with EV News Report and join Poll Vote to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

Tesla Model S v BMW i3, Competition is Good!

July 29, 2013 in BMW, Electric Vehicles, EV News, Tesla

Tesla stock hit an all-time high today, $135.37 per share.  It closed at $134.62, up 4.04% on the day.

From recent trade, it appeared that TSLA might form an approximate trading range of $110 – $130; however, this was not to be.  It was only a few months ago that Tesla stock had resistance at $40 per share.  Since it crossed that $40 mark, TSLA has had a dramatic rise (over threefold increase).  Incredible run!

Obviously, the stock market did not think that BMW’s introduction of an electric car was a big threat to Tesla.  The modern electric car market is still in its infancy, and, if anything, BMW will likely accelerate the industry by offering such a competitive product, the BMW i3.

BMW i3 Photo courtesy of BMW

BMW i3
Photo courtesy of BMW

BMW introduced its electric car with a base MSRP of $41,350.  This EV is a great value (see link for details): http://evnewsreport.com/worldwide-debut-of-the-all-new-bmw-i3/8337/.  However, it will not be on the market until the second quarter of 2014.

If the BMW i3 is released on time, it will likely pressure Tesla to move more aggressively with its generation III car.  Tesla CEO Elon Musk has stated on many occasions that he does not expect to produce a generation III car for a few years yet.  (Tesla plans to introduce a smaller more-economical car at about $35,000, which the company refers to as its generation III, mass-market electric car.)     

Long-term, Tesla is likely to be the big winner with its electric vehicles and station network strategy.  At the Teslive conference on July 13, Model S Program Director Jerome Guillen spoke briefly about the company receiving a number of high-quality job applicants.  He seemed a bit amused by this.  Undoubtedly, many think there is a future in all-electric cars.

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EV News Report is a news and information service on electric vehicle news with a focus on the campaigns, events and star leaders shaping the EV revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the new electric era, including Tesla news, LEAF news, and all the leading players in the electric transportation movement.

Plug-in to the electric car / electric transportation revolution by creating a free account with EV News Report and join Poll Vote to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world…

Tesla Fast Pack Swap Speeds Electric Car Revolution

June 21, 2013 in Electric Vehicles, EV News, Model S, Tesla

Elon Musk: "Fastest gas pump in LA vs Tesla battery pack swap.” Photo courtesy of Tesla

Elon Musk: “Fastest gas pump in LA vs Tesla battery pack swap”
Photo courtesy of Tesla

Tesla CEO Elon Musk introduced the company’s fast battery pack swap last night in front of a packed house at its Hawthorne, California, design studio.  Mr. Musk demonstrated that the Model S pack can be swapped in about 90 seconds.  Two Model S cars, one after the other, had packs swapped-out in about 3 minutes and ten seconds.  The crowd of EV enthusiasts enjoyed the show (see video bottom).

Image courtesy of Tesla

Image courtesy of Tesla

The company plans to add the pack swap service to its growing Supercharger station network.  With the introduction of pack swap to the Supercharger network, it is best to simply call the network, Tesla stations.  Tesla plans to charge for the battery swap service, but the Supercharger will always be free.  For those that do not know, the Supercharger provides 200 miles of range in 30 minutes.

Tesla has one last major barrier to topple, the price of an electric car.

As the Tesla station network is built across North America, the pressure is going to mount for Tesla to produce the generation III (mass-market electric car).  Mr. Musk says it will take a few years.

Tesla’s strategy will likely become part of a sustainable transportation solution around the world.  World leaders want to have such a solution, and Tesla has one.  Mr. Musk has to balance being CEO of Tesla in conjunction with various worldwide needs/demands for electric vehicle adoption.  With that said, climate change has become a front and center issue on the world stage.

The large auto manufacturers appear to be mired in something, slowing progress to electric cars.  This has not escaped the notice of many electric car enthusiasts, and as time moves forward, this is unlikely to escape the notice of Main Street.

Fast Pack Swap Event from Tesla Motors on Vimeo.

This video is courtesy of Tesla Motors, http://www.teslamotors.com/.

About EV News Report

EV News Report is a news and information service on electric car news with a focus on the campaigns, events and star leaders shaping the electric car revolution.

Electric vehicles are driving the change to a clean green sustainable future for the United States and the world. Tesla CEO Elon Musk and other EV stars have launched a revolution. At EV News Report, you will see daily updates on the happenings of the industry, including Tesla news, LEAF news, and all the leading EV industry players.

Plug-in to the electric car revolution by creating a free account with EV News Report and join the forums to discuss your ideas with other EV enthusiasts. We’re just getting the electric motor started. Let’s change the world