Racing to Catch Ludicrously Fast Model 3 Production Ramp, U.S. Automakers Grew EV Sales by 102 Percent in June 

Early on, Tesla recognized that responses to climate change were necessary — not just from individuals and governments, but also from industry. And Tesla realized that, when mated with wind and solar energy, electrical vehicles could become a powerful force for driving an energy transition capable of rapidly cutting global carbon emissions.

(Reduction in coal burning and lower than predicted demand for fossil fuels has helped to generate a carbon emissions plateau during 2014 to 2016. Rapid additions of renewable energy sources like wind, solar, and electrical vehicles provides a potential to begin to bend down the global emissions curve near term and reduce the damage that is now being locked in by fossil fuel based carbon emissions. Image source: IEA.)

Tesla’s Market-Driven Response to Climate Change

Electrical vehicles possess a number of key sustainability advantages that aren’t widely talked-about in the public discourse. Electrical motors are considerably more efficient than ICE engines — so broadening EV use lowers energy consumption in transportation while at the same time allowing EVs to draw power from traditional and newly emerging renewable sources. The massive batteries housed in EVs and sold after-market also have the capacity to become a major solar and wind energy storage asset that could ultimately enable the removal of peaking, high emissions, coal and gas plants.

In light of these opportunities, back in the mid 2000s, Tesla made a bold, necessary move. Its leadership decided that it would attempt to become a major automaker dedicated solely to electrical vehicle sales. This business plan would hitch Tesla’s economic future entirely to the success or failure of clean energy ventures. Unlike most present automakers, Tesla would not suffer from divided loyalties to harmful incentives linked directly to fossil fuel based economies. It decided to make its clean energy break by producing top of the market, high-quality electric-only vehicles and, then, by leveraging loyalty to a superior brand, move vertically down into broader market segments.

(If Tesla’s planned Model 3 production ramp to 5,000 vehicles per week by end of 2017 holds true, then the all-electric automaker’s quarterly deliveries are about to go exponential. Image source: EV Obsession.)

Such a disruptive end run on the world’s energy and vehicle markets was bound to encounter stiff resistance and loud detractors. However, if successful, Tesla would force traditional energy and transport players to make a tough choice — follow in Tesla’s footsteps and try to compete, or face dwindling customer bases as a massive wave of innovation completely upended markets. The automaker decided that the best way to goad a broader transition toward electrical vehicles in western markets was to lead it. And that’s exactly what Tesla has been doing.

Major EV Sales Growth on Tap for 2017 Due to Automaker Shift + Model 3 Sales

In the U.S., during 2017, the trend of an emerging industry reaction to Tesla is becoming quite clear. The major automakers are all in a scramble as the imminent arrival of the Model 3 nears. The vehicle, which begins production this month, aims to provide very high quality, Tesla’s trademark swift acceleration, top-notch tech, groundbreaking automation, and 215+ miles of all-electric range for a 35,000 dollar base price. An offering that is disruptive due to quality and accessibility alone. But add to it the 400,000 + preorders that Tesla has accumulated and you’ve got what basically amounts to a volcanic eruption in the global auto market.

In large part, as a response to Tesla’s market-transformation plan, a number of major automakers are deciding to provide their own competing offerings. This year, GM beat the Model 3 to the start line with the 200+ mile range, high-quality Chevy Bolt. Toyota, launched its competitively-priced Prius Prime plug-in hybrid. Nissan redoubled efforts to position its best-selling Leaf all electric vehicle even as it announced plans for a 200+ mile range version in 2018. Meanwhile, Volvo plans to electrify all its vehicles by 2019.

(Increasingly attractive EVs and plug in hybrids like the Chevy Bolt, the Prius Prime, and the Nissan Leaf helped to boost U.S. electrical vehicle sales in June as automakers gear up to compete with Tesla’s Model 3. Image source: InsideEVs.)

This activity has generated considerable growth in sales as customers discover electrical vehicles of ever-increasing variety, value and capability. During June of 2017, all-electric vehicle sales from major automakers in the U.S. market (excluding Tesla) increased by more than 100 percent over June of 2016 on the back of the entry of attractive, highly-capable models like the Bolt. Meanwhile, plug-in hybrid sales grew by 11.5 percent. Total U.S. EV and plug in hybrid sales for the month from major automakers + Tesla hit a new record in June of 17,182 on the back of major automaker sales growth (a total growth of about 16 percent for the entire U.S. market).

Tesla, on the other hand, showed slightly lower June 2017 sales vs June 2016 in U.S. markets as it experienced a hiccup in 100 kw battery pack production. But with the Model 3 nearing launch, an explosion of EV sales from Tesla is in the offing over the coming months. According to statements by Tesla CEO Elon Musk, the ground-breaking vehicle is expected to trickle into the market by adding about 30 sales in July. By August, deliveries are expected to triple to 100. By September, another 1,500 or so Model 3s are expected to arrive. Production will then, according to Musk, swiftly ramp up to 20,000 per month by December.

If these ambitions bear out, and if about half of Model 3 sales are in the U.S., then the U.S. could see north of 40,000 EVs and plug in hybrids sold in the U.S. during December. This would represent a 60 percent + jump over the all-time record EV sales month of December 2016. But even if Tesla’s extraordinarily ambitious production ramp-up goals for the Model 3 aren’t reached by December, the excitement surrounding the vehicle is likely to continue to spur growth and competition in the larger EV market through the period. And that’s a bit of much-appreciated good news for those of us who are increasingly concerned about climate change.


Big Auto’s Fully Electric Car Sales Up 102% in USA

Plug-in Electric Sales Report Card

Next Generation Leaf to Have 215 to 340 Mile Range

Volvo Electrifying All Models By 2019

CO2 Emissions Flat for Third Straight Year

EV Obsession

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.


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

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