I got a push alert to my phone over the weekend – CNN was saying Tesla had a secret to its profits. Intrigued, I clicked, but before the article could even load it dawned on me.
CNN was going to point out that Tesla made most of its money not from sales but from regulatory credits.
Hawthorne, California-based AEM EV will soon debut an EV conversion control system that increases horsepower when using Tesla’s Large Drive Unit (LDU) base drive.
Tesla vehicles that drive themselves and those that continue unintentionally are not the same, according to the National Highway Traffic Safety Administration (NHTSA).
Move aside, Jeff Bezos, as Elon Musk is now the world’s richest man. At least according to CNBC.
Elon Musk said in a tweet, “All Tesla cars delivered in the final three days of the year will get three months of the Full Self-Driving option for free. Delivery & docs must be fully complete by midnight Dec 31st.”
While electric automobiles have numerous advantages over internal combustion vehicles, we’ve often wondered when their disadvantages would be offset to a point that would make sense to have them become the dominant mode of transportation. While there are multiple issues that have to be addressed, one of the largest involves finding a way to source the kind of energy needed for the world to recharge them on a regular basis.
An EV-dominated society likely means elevated energy prices and peak demand hours that could easily overtax national energy grids. Renewable energy sources may also prove insufficient in providing the kind of power necessary — potentially requiring countries to double down on plants reliant on coal, oil, and natural gas if nuclear facilities are not approved. Counter-productive takes like that are often downplayed, however, so industrial giants can continue proclaiming the technology as largely trouble-free.
But what happens when EV royalty starts making similar claims about our collective energy needs?
Tesla is issuing head-to-head recalls covering about 9,500 vehicles over a roof trim that may separate from the car and some bolts connecting the front upper control arm to the steering knuckle that might need to be tightened. While both issues can lead to some disastrous results, the unsecured roof is the larger problem by far and may affect more vehicles than the initial report issued by the National Highway Traffic Safety Administration (NHTSA) — which only references 9,136 examples of the 2016 Tesla Model X — suggests.
Earlier this month, the footage was shared over Reddit showing a Chinese Model Y with a roof that also had a hard time staying put when exposed to highway speeds. While the official explanation from the manufacturer was that an authorized third-party shop may have failed to install a replacement glass roof effectively. There’s an investigation pending, though it’s curious to see the smaller crossover’s top popping off in a manner nearly identical to those stated in the American recall. (Read More…)
On Monday, the National Highway Traffic Safety Administration (NHTSA) announced it would be upgrading a probe into almost 159,000 Tesla Model S and Model X vehicles relating to touchscreen/memory issues that could result in a failure to comply with federal standards.
U.S. regulatory mandates stipulate that modern vehicles be required to have rear-camera displays to aid drivers traveling in reverse. The expanded investigation has tripled in size and now encompasses 2012-2018 model year Tesla Model S and 2016-2018 Model X vehicles, which may be eligible for a recall if the NHTSA sees fit.
If you think the political class is interested in what kind of policies citizens would like to see implemented, you’ve clearly never heard of lobbying groups. While we’re stuck at home writing thoughtful letters to congressional interns in the faintest hope that they’ll be dictated to a senator, corporately supported lobbyists are taking legislators out to dinner so they can discuss how best to govern on a single issue. They’re important in determining the trajectory of the nation but many get criticized for placing the needs of the business over that of the individual voter.
Buckle up, because we’re getting another one. On Tuesday, the Zero Emission Transportation Association (ZETA) held its own coming-out party and announced its mission to advocate for “national policies that will enable 100 [percent] electric vehicle sales throughout the light-, medium-, and heavy-duty sectors by 2030.”
Honda Motor Co. will be accompanying Fiat Chrysler Automobiles in pooling its emissions with electric vehicle manufacturer Tesla in an attempt to adhere to CO2 limits mandated by the European Union. For 2020, the average emissions of all vehicles sold within the region must not exceed 95 grams of CO2 per kilometer. Companies failing to comply will be forced to pay the government sizable fines as it readies even higher targets for next year.
Over half of automakers planning to move product inside Europe next year are already assumed to fail however, resulting in a series of rushed hybrid/EV products, the obliteration of the diesel-powered passenger vehicles, and companies desperate to team up with the manufacturers that came in under the regulatory limits.
Tesla is recalling some 30,000 imported Model S and Model X vehicles in China over claimed defects in the suspension. According to China’s State Administration for Market Regulation, cars manufactured between September 2013 and January 2018 suffered from two distinct issues, with some vehicles having both.
But, almost as quickly as the story was brought to our attention, Tesla announced the accusations were baseless and the recall was being forced by the Chinese government. The group that’s being recalled accounts for most of the American-made EVs shipped to China by the brand. Since Tesla started manufacturing in Shanghai in 2020, U.S. exports have slowed to a trickle. The automaker seemed to hint that there may be political reasons behind the decision but stopped short of saying it wouldn’t comply with Chinese regulators.
Tesla continued to prove itself as the electric automaker par excellence by posting its fifth profitable quarter in a row on Wednesday. The California-based (for now) automaker reported a net income of $331 million and a 39 percent improvement in revenue to $8.8 billion.
Of course, a huge amount of that money came via regulatory credits Tesla sold to its rivals. By nature of being an EV manufacturer, the company was able to sell $397 million in environmental absolution while helping its own bottom line. Though third-quarter deliveries were quite strong as automotive revenue jumped 42 percent to $7.6 billion.
Elon Musk went on Kara Swisher’s podcast recently and complained about the media coverage of Battery Day and I have to say, Elon, in the highly unlikely event that you’re reading this, hire a real honest-to-God comms shop.
Let me hit you, dear reader, with some inside baseball. You probably know that just about every large company, including every automaker, has some kind of communications/public relations department.
Tesla, it seems, does not.
Update: Now we know it does not, not anymore.
Tesla Inc. has reportedly disbanded its U.S. media relations team in the United States, fitting since the only journalists that seem to have any direct contact with the company suffer from a condition where they unquestionably praise its products and business model. While access journalism appears to be on the rise in all industries, the automotive realm was relatively free of the phenomenon until fairly recently. Now its getting to a point where just finding someone in the PR department to respond to you within 48 hours is a minor miracle — and it makes little difference whether you’re one of the big boys or a smaller outfit, like ours.
While Tesla used to be wildly proactive in reaching out to authors, sometimes just to complain about articles, it’s been enacting radio silence for quite some time. Other automakers will at least provide you with a boilerplate corporate response — assuming they haven’t issued one already. But it has been complete static from Tesla for what feels like years, leaving the firm little reason to continue paying people whose sole responsibility was to totally ignore the media.
Recent Comments