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Tesla Model 3 Production Keeps Ramping — Hitting Near 2,400 Per Week in Early April

Past behavior can often be predictive of future results. Sometimes, however, we are pleasantly surprised. Such is the case with Tesla’s Model 3 production ramp this week.

Tesla’s Big Surge Continues

According to reports from both Electrek and Bloomberg, Tesla appears to have sustained weekly rates of Model 3 production above 2,000 for more than 14 days. Indicators for this continued surge come in the form of record VIN number releases. For since late March, the number of Model 3 VINs ordered from the U.S. government has doubled from approximately 14,000 to around 28,000. Meanwhile, Bloomberg’s Model 3 production tracker has surged to 2,394 all-electric vehicles per week. A new record.

(Bloomberg’s Model 3 tracker has captured a big surge in Model 3 production translating through to early Q2. Image source: Bloomberg.)

The big jump in VINs comes along with Tesla CEO Elon Musk’s announcement that he planned to continue Model 3 production rates of over 2,000 vehicles per week into early April. This higher production rate is contrary to past production behavior by Tesla — which typically surges late in a financial quarter and then backs off at the start of a new quarter.

5,000 Per Week Model 3 Production Goal in Sight

And though it is still possible that we could see all-electric, zero-tailpipe emissions Model 3 production slackening a bit following this most recent, apparent much longer-running surge, there are indications that Tesla’s capability is rapidly expanding. First, it appears that two lines are now running for Tesla Model 3 and related battery production. Second, it appears that many of the Model 3 bottlenecks have been addressed. And, third, it looks like new Model 3 production infrastructure continues to spring up in the form of dedicated facilities at Tesla’s Fremont plant and Nevada Gigafactory.

(A drone fly-over of the Tesla Fremont factory shows new buildings that appear to be dedicated to Model 3 production efforts. Video source: Tesla Factory Flyover Drone.)

Tesla’s production legs are, therefore, growing longer. And, in light of this fact, it appears that our earlier estimate that Model 3 would produce between 17,000 and 27,000 during Q2 may fall a bit short. As a result, that estimate is now adjusted upward to 18,000-30,000. This steepening ramp is increasingly possible especially if Tesla is able to maintain production rates in excess of 2,000 Model 3s per week through April and May even as it attempts a surge to 5,000 Model 3s per week by June.

Diversification of Model Line Planned For July

Tesla presently still has around 470,000 reservation holders for the Model 3. However, it’s uncertain how many of these are waiting for the long-range, rear-wheel drive version that is now in production. Past indicators are that the number is around 100 to 120K. Most of the rest either appear to be holding out for the dual motor version or for the lower price version. A 5,000 vehicle per week production rate will quickly eat through remaining long range, rear wheel reservation holders. And it is likely for this reason that Elon Musk is planning to start looking at producing the dual motor Model 3 during July of 2018.

So not only is the pace of Model 3 production quickening, the advent of new Model 3 versions is on the horizon. All-in-all this is good news for Model 3 reservation holders and for renewable energy/climate change response backers in general. We’ll have to watch Tesla indicators closely. But it appears, more and more, that the company is able to put Model 3 production hell behind it. To step it out as an all clean energy mass producer.

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The Race to End Fossil Fuel Based Vehicle Emissions is On — Tesla Model 3 to hit 500,000 Preorders, Dutch Motions to Ban Petrol, and Shell’s Shilling for Biofuels

This week Shell and Volkswagon banded together in a big EU lobbying push. Their goal — to promote biofuels as a ‘bridge fuel’ to EVs in what some say has become a rather obvious bid to delay the entry of electric vehicles in large numbers to fleets across Europe. An effort that some analysts are concerned may represent yet one more push to kill the electric car.

(Unofficial Tesla advertisement streamed over a famous speech by Nikola Tesla. A combination of increasingly accessible electric vehicles and renewable energy sources like wind and solar provide hope that human beings can rapidly reduce carbon emissions over the coming years. But the still powerful and established fossil fuel industry continues to attempt to delay progress through its vast monetary power and equally vast legislative, advertising, and public relations based influence. Can we free the captive fossil fuel consumer? Video source: Not a Dream.)

According to analyst for the Transport and Environment’s Carlos Calvo Ambel:

Carmakers, oil companies and biofuels producers are making a desperate bid to dissuade Europe from undertaking fuel efficiency standards for cars, vans and trucks, a push for electric vehicles and many of the other badly needed actions in the transport sector.

Shell recently acquired an interest in Brazil based biofuels industries and it appears that Shell may be using its new biofuels interests as leverage to divide support for a rapidly expanding access to zero-carbon emitting electrical vehicles. If this is true, it wouldn’t be the first time that the fossil fuel industry has lobbied against renewables, attempted to play divide and conquer with renewable energy supporters, or conducted deceptive advertising and public relations campaigns in an effort to retain energy market dominance — negative climate consequences be damned.

In what has become an ever-expanding context of industry deception and manipulation, Exxon Mobile is now under increasingly intense investigation over its active funding of climate change denial organizations in an effort to confuse the public even after its own scientists identified threats posed by fossil fuel emissions as far back as the 1960s. The Koch Brothers, who are heavily invested in oil pipelines, are identified as funding yet one more multi-million dollar advertising attack on renewables — this time against electric vehicles. And in the legislative bodies throughout the western world, politicians receiving the highest levels of campaign funding support from fossil fuel industry sources are the ones most likely to deny the existence of human caused climate change and to oppose legislative efforts promoting renewable energy expansion and related carbon emissions reductions.

Nethernlands Motion to Ban Petrol and Diesel, Germany Promises 1 Billion Euros For Electric Vehicles

The new Shell/Volkswagon effort comes as the lower house of Parliament in the Netherlands is pushing a measure to ban both petrol and diesel use in that country by 2025. The measure would rely on a rapid transition to electric vehicles and would basically outlaw fossil fuel based automobile use by that time.

A low-lying nation, the Netherlands stands to lose much if sea level rise due to a human-forced warming of the globe starts to rapidly ramp up. A risk that grows as more carbon is emitted into the atmosphere. And with about 50 percent of household carbon emissions coming from vehicle use, a transition to electric vehicles powered by renewable energy could help to dramatically curb both individual and national emissions totals. Currently, the Netherlands is one of the regions of the world featuring the highest rates of EV sales — with ten percent of all automobile sales taken up by electric cars in early 2016.

In Germany, a country to which Netherlanders displaced by sea level rise may be forced to migrate, news was much the same as Parliament approved a 1 billion euro subsidy to support increased sales of electric vehicles there. An ambitious effort that it is hoped will push Germany’s current 50,000 car EV fleet to more than 1 million by 2020.

Tesla Model 3 Preorders Expected to hit 500,000 This Year

Among the world’s big car producers, there’s only one major automaker that sells only all-electric vehicles and that’s Elon Musk’s Tesla. A company that is now known not only for its ability to field cutting-edge electric automobiles, but also for its track-record in producing some of the highest quality, highest performance vehicles in the world. Not only do all Tesla cars require no oil, gas or other fossil fuels to run, not only do they produce zero tailpipe emissions or provide the opportunity to produce zero driving emissions when their batteries are charged by renewables like wind and solar, but Tesla autos are also some of the fastest, most luxurious vehicles in the world.

And until now this seemingly contradictory combo of sustainable systems and consumer oriented products has been very pricey. The Model S, Tesla’s flagship offering, starts at $70,000 — a price that puts it in competition with top of the lines Mercedes, BMWs, and Audis. Include all the frills, and a Tesla Model S could sell for well over $100,000.

Tesla's supercharging network

(Tesla’s charging station network provides free EV charging to Tesla owners. It’s a network that continues to expand along major travel routes in North America. Image source: Tesla Supercharger.)

Sales for Tesla’s high-price, high-quality electric cars have been very respectable. Last year, Tesla sold more than 50,000 EVs worldwide. And while these sales rates are enough to make any luxury vehicle manufacturer envious, Tesla is driving for a huge market expansion over the coming years. Its strategy for triggering this expansion hinges on the success of the economically more accessible Model 3. A vehicle that’s half the starting price of the S at around $35,000. That’s still not a cheap car. But with Tesla providing all the vehicle fuel for free in the form of an increasingly widespread network of EV charging stations, with many nations around the world providing EV incentives in an effort to reduce both emissions and oil dependency, and with Tesla as one of the highest quality and performance vehicles around, the price often presents a very tempting offer.

Use of direct sales allows Tesla to gauge customer interest by offering its models for pre-order. And at the time of the Model 3’s launch in early April, CEO Elon Musk is reported to have expected about 100,000 pre-orders (requiring 1,000 dollars to hold a Model 3 reservation) in total. But the enthusiasm surrounding the Model 3 defied all expectations. The 100,000 pre-order mark was breached in just one day and by now Model 3 preorders are estimated to have hit about 400,000. Overall, Musk now expects pre-orders to easily reach 500,000 by later this year. That’s half a million expected sales of just one single electric vehicle model.

The Race Against Catastrophic Climate Change is Now On

Though Tesla is not the only major manufacturer of electric vehicles, it is the notable leader. That said, a number of other manufacturers are entering increasingly competitive options into the race. Chevy, for example, is producing the 200 mile range Bolt EV for sale this year and its Volt plug in electric hybrid now gets more than 50 miles on a single change before switching to gasoline. Nissan will be again upgrading its Leaf to exceed a 200 mile range in the next two years. And along with the 215 mile range Model 3 there are an expanding number of additional high quality, long range EV options now becoming available. Taking the expanse of new offerings into account, it appears that a tipping point in EV quality and access will be reached during the period of 2017-2019.

As a synergy exists between low cost, high power and efficiency batteries used to run electric vehicles and energy storage options used for renewable energy sources like wind and solar, there is growing hope that these energy sources can be used to more and more rapidly replace current fossil fuel based energy systems. Wind, solar, and battery systems have all been shown to improve in price and efficiency with economies of scale. So expanding use of these energy systems makes it easier and easier for more and more people to access them. A synergy that has a potential to snowball renewable energy access during a time in which rapid reductions in carbon emissions are now desperately needed.

With the effects of catastrophic climate change now starting to ramp up, it appears that the world is in a very real and dire race between the crucial mitigating influences of renewable energy systems and the expanding and worsening impacts of global warming. Any delays to a necessarily swift energy transition that are achieved by the fossil fuel special interests will result in more and more climate harm being locked in. So action by Shell and Volkswagon this week to delay European EV expansion efforts are very counter-productive to any push to fully and swiftly address the problem of human-forced warming.

Links:

Shell and Volkswagon Try to Block Push for Cleaner Cars

Netherlands Lower Parliament Pushing for Petrol and Diesel Ban by 2025

Germany Pushing for 1 Million Electric Vehicles by 2020

Tesla has Received 400,000 Model 3 Preorders So Far

DCI Group Subpeonaed in Expanding Exxon Mobile Climate Change Denial Investigation

CO2’s Role in Global Warming Has Been on the Oil Industry’s Radar Since the 1960s

The Kochs are Plotting a Multi-Million Dollar Assault on Electric Vehicles

Non-Official Tesla Ad Crosses Mad Max with 1984

The Tesla Model S

The Tesla Model 3

The Chevy Bolt

The Chevy Volt

Nissan Leaf to have 200 Mile Range in 2017

200 Mile Electric Cars We’re Looking Forward to

Hat Tip to Cate

Hat Tip to DT Lange

Hat Tip to Colorado Bob

The Dawn of The EV: Model S, Volt, Leaf Send Shock-Wave Through Auto Markets

Model S

(Image link: here)

10,000. That’s the best estimate for the number of electric vehicles and plug in electric hybrid vehicles that sold in April. And at that pace the US electric vehicle market will have surged to break the 100,000 mark by year end. This healthy sea change allowing access to growing numbers of no carbon and very low carbon vehicles comes just as the world enters a dangerous age of increasing risks due to world climate change. An age where devastating levels of CO2 at 400 ppm and greater are likely to be the norm going forward. And if we are to prevent jumps to 500, 600, or even 1000 ppm by the end of this century, a rapid transition to EVs must remain a keystone to any mitigation and prevention strategy.

So you can imagine why I’m calling for cautious optimism upon seeing Tesla’s Model S fly off sales lots at the rate of 2,000+ vehicles per month over the course of 2013. Not to say that these sales weren’t earned. The vehicle recently received the highest consumer reports rating ever for any vehicle and was recently named motor trend car of the year. This makes both the Tesla S and the Volt extraordinarily high-quality offerings, beating out nearly all gasoline based vehicles on the measure of quality alone (take that EV haters!).

In other words, the Model S is one beast of a great vehicle. It gets 300 miles per charge of electricity, a range that is even the envy of a number of gas guzzlers. And its speed is a warp-like shift from 0 to 60 in 4.4 (you can barely count them) seconds. The Model S is as luxuriant as it is sleek. Its smooth shape and high class features — the very picture of elegance.

I don’t usually brag about material goods. But you have to give Tesla credit. They’re doing the right thing and they’re doing it the right way.

The Model S’s rocket to stardom has set stocks of Tesla to soaring. Earlier this year, Tesla traded at 30 dollars per share. Today, Tesla stocks spiked at 93 dollars. Speculative interest remains high and it appears possible that Tesla may do to the US auto industry what Google did to the internet — result in its rapid transformation.

As a new technology, the future for electric vehicles is anything but certain. However, in the long run, it can confidently be said that if there is any future for the auto industry, it is in EVs and other alternative vehicles. Oil is a depleting and ever more expensive fuel. Combine that factor with the devastating climate change that oil contributes to and what you end up with is the fuel being nothing more than a costly and dangerous dinosaur. So the stakes for Tesla, GM, Nissan, other EV producers and the rest of us couldn’t be higher. If we want to see the automobile survive we’d better hope they succeed.

And success will mean a very long, tough slog. Over 800 million vehicles are currently in operation worldwide. To replace them all with EVs would require that all new vehicles sold be EVs for a period of 20+ years. Current sales are just a tiny fraction of total sales. With gas guzzlers still holding the bulk of the market captive, it will take a massive rate of sales increase for EVs to make a serious dent in the fleet of carbon emitting autos. It’s a tough challenge, but one we will have to undertake if we are to preserve a climate hospitable to human beings and keep the automobile too. And to do this we will not only need to have an increased availability of EVs like the Model S, Volt, and Leaf, we will also need an ever-increasing price on carbon emissions to speed a transition to low or no carbon technologies. Unfortunately, we are still in a position where alternative vehicles have a small but growing market share and where government policy on the part of transition to non-carbon energy technology has been manic at best. So we will need to see these changes to have much hope for the kind of progress we desperately need.

In the mean-time we should all bask in the minor, though hopeful, success of the EV. It has endured many slings and arrows from an pleathora of well-funded and politically well-connected enemies who fought as hard as they could to make certain this day never came. But, it appears, they have failed. And failed grandly at that. Not only are viable EVs now available to consumers, many of these EVs are now among the best cars ever made. These are innovations that have happened on American soil and as a result of American ingenuity. And, as noted above, they represent a hope for transformation to a less damaging form of automobile that, though it should have come sooner, is certainly welcome today.

Links:

The Tesla Model S

Green Car Reports

Bob Lutz: Chevy Volt On Verge of Profitability

A recent flurry of Volt bashing has arisen in the conservative media, likely, due to some desperate need to show that President Obama is a failure as Mitt Romney continues to trail in the polls. However, these destructive attacks target a source of American innovation and achievement as well as directly inhibit efforts for increasing energy independence at a time of rising fuel prices and climate instability.

So the question arises, do these sources really want to fight this battle?

The primary line of attack seems to have crystallized around a radical notion that each Volt is losing 40,000, 50,000, or even 60,000+ per vehicle sold. The fuzzy math includes investment in the production figures and makes a number of bad assumptions on the costs for vehicle systems. In the end, the numbers presented in the articles just don’t add up. And Bob Lutz agrees.

Lutz is both a conservative and a former executive at General Motors. So Lutz knows his business. And he apparently doesn’t wish to be drawn into the wrong side of a media war waged for political gain. In a recent interview Lutz noted:

“The statement that GM “loses” over $40K per Volt is preposterous. What the “analyst” in whom poor Ben Klayman placed his faith has done is to divide the total development cost and plant investment by the number of Volts produced thus  far. That’s like saying that a real estate company that puts up a $10 million building and has rental income of one million the first year is “losing” 9 million dollars, or several hundred thousand per renter.”

In the statement, Lutz refers to a recent article in Reuters which estimated the Volt lost 49,000 dollars per sale. Over past months, Reuters has been notorious for spewing this kind of bad information from everything related to alternative energy and climate change. They vacillate between responsible journalism and outrageous claims like the one posted above.

Lutz countered by noting that the Volt is likely very close to profitability already:

“Thus, the “Volt”, by my estimate, is either close to “variable break-even” or may be on the cusp of a positive gross margin. Deduct the per-unit allocation for all fixed cost, depreciation and amortization and it is, surely, still “under water”….but not by much, and less and less so as the volume builds and other, higher-margin GM cars, like the Cadillac ELR, piggy-back off of the Volt’s initial investment.”

Lutz’s comments come on the heels of two consecutive months of record Volt sales. A series of records some ‘journalists’ seem desperate to downgrade. I suppose the prospect of an American electric vehicle revolution is just too much of a good thing for some to stomach? In any case, despite these salient admissions by Lutz, the mad, ill founded, and half-crazed attacks on the Volt continue unabated. One would think that conservative-linked sources would have learned that attacking American innovation and the prowess of American workers was bad political policy. We’ll have to see how things bear out in the coming months and days. But, with each passing week, the purveyors of this form of ‘slanted beyond the tilt’ messaging are becoming more and more of a laughingstock.

Links:

http://insideevs.com/bob-lutz-responds-to-reuters-article-chevrolet-volt-is-at-variable-break-even-now-video/#comment-29792

http://mediamatters.org/blog/2012/09/13/volt-bashing-trumps-national-security-in-the-co/189876

Chevy Volt Hits New Record, Breaks 16,000 US Sales for 2012, Total Sales Worldwide Now Around 30,000 vehicles

September saw another record month for Chevy Volt sales in the US. Overall, 2851 Volts were sold just edging out August’s previous record of 2831 US sales. A combination of word of mouth, new Volt marketing strategies, and very appealing incentives to buyers pushed the revolutionary new auto out at ever-increasing rates.

Overall US sales are now 16338 for 2012 with total US sales since December of 2010 at 24335. Worldwide total sales for both the Volt and Ampera are now likely within a few vehicles of the 30,000 mark making the Volt the best selling electric vehicle of all time.

This month’s sales come despite a massive negative media storm in the conservative press attempting to kill off the revolutionary and disruptive new vehicle and a plug in electric design that threatens to lay the groundwork for breaking transportation’s dependence on fossil fuels across the world. The shrill storm of what could only be called negative advertising included a wide range of attacks using fuzzy math to inflate the Volt’s cost, to brand the vehicle as a taxpayer subsidized failure, or to, in an schizophrenic kind of wobbling criticize the Volt’s lowering cost to consumers.

I suppose these various magazines and pundits are against the American people getting a good deal on a revolutionary new technology that promises to kick open the door to US energy independence? In any case, the deafening silence from these sources on over 40 billion dollars in fossil fuel subsidies is telling to say the least. When will the fuzzy math stories on subsidized $10 per gallon gasoline emerge? We’re waiting.

In any case, the Volt is the spearhead in a surging US electric vehicles market. Overall, about 5,000 electric vehicles have sold in the US just this month alone. Surging Volt sales in August and September were met by rising Leaf sales as well. The Nissan Leaf, which had seen declining sales over the past few months staged a comeback in September and saw 984 vehicles fly off lots for the month. Nissan had said the Leaf would stage a comeback and made good with a 43% increase over the previous month. In all, a total of 5,212 Leafs have sold so far this year in the US. In addition, a longer-range, lower priced version of the Leaf is about to release. These new advances should make the race between EVs ever more interesting.

Though figures for Toyota’s plug-in Prius haven’t yet posted for September, they should be in the range of 800-1200 based on initial estimates. Toyota’s plug in, though boasting less all electric range than the Volt, is seen as a somewhat affordable competitor. But it appears that Chevy’s own discounts and affordable leasing options on the Volt have made it more appealing to the slightly less electric Prius. Toyota, however, is a powerful brand and shouldn’t be counted out in this competition.

Additional electric vehicle sales came from Tesla, Fisker, Mitsubishi and Ford. Given the increasing interest and expanding market for US electric vehicles, it appears that the domestic market is on its way to breaking 50,000 total EVs and PHEVs sold by the end of 2012. Overall, a substantial leap forward for an appealing and highly beneficial new technology.

Links:

http://insideevs.com/september-2012-plug-in-electric-vehicle-sales-report-card/

http://media.gm.com/content/dam/Media/gmcom/investor/2012/1002SalesRelease.pdf

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