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Fossil Fuel Based Auto Industry Faces Alien Invasion; 440 Starship Model 3s Have Been Manufactured So Far, But that’s Just the First Wave

Some have conjectured that the only way to make sense of present politician resistance to climate change responses is that alien body snatchers determined to inject toxic climate warming gasses into Earth’s atmosphere have taken control of key world leaders. Given the nonsensical behavior and strange skin color changes seen in some of the world’s most powerful people, this supposition, though fanciful, has broad appeal.

But if the ‘bad aliens’ have taken the side of the fossil fuel industry, we should not also ignore the angelic race hailing from the Blue Star who have decided to come to the aid of humankind and life on Earth. For a secret weapon in the fight to save the world from climate disaster is now steadily being deployed. And the global fossil fuel based auto industry doesn’t even begin to have a clue as to what’s about to hit them.

(Blue Star alien spaceship? Smart, living renewable energy technology, wrapped in a car’s body? Warrior fighting global climate disasters? Or all of the above? Tesla’s Model 3 poses an out-of-context threat to the world’s fossil fuel based automakers. Image source: Clean Technica.)

Like the body snatchers, this weapon has also taken the form of something we humans see as normal and innocuous. It has come to inhabit mere automobiles. For beneath the metal hoods, glass windows and roofs, and sustainably designed interiors of seemingly familiar Tesla road vehicles resides the electrical beating heart of alien technology. A living, almost biological, smart-tech that is pulsing within the fixed metal, plastic, and glass forms we see across the world and on its streets and byways.

The tech possesses living characteristics in that it can change and grow. For after each Tesla is produced, the starship inside awakens, empowering these vehicles to transform in a very autobot-like fashion. Possessed of the much the same hardware as many ‘normal’ electrical vehicles, the smart, alien tech that runs the battery in the breast of each machine is capable of learning and improving. Vehicles coming off the lines with a mere 200 mile range may see improvements that jump it to 230 miles (see Your Tesla May Have Secret Powers). Starship Model 3s with stated 310 mile ranges may suddenly and unexpectedly stretch their legs to 334 miles. The cars may learn to accelerate better using the physical materials that they already possess. They may learn to charge faster. And sitting in their driveways at night, after drinking deep of afternoon solar panel trapped energy, they may dream strange dreams of a vital new world that beats back the oppression of global hothouse extinction even as they learn to cut off the choking fumes of coal-fired powerplants.

(Are we really living in a space opera? No. But the stakes are just as epic. Video source: Iscandar.)

But this starship — posing as automobile — counter-force faces a serious challenge. Earthling means of mass producing the new alien technology that will give each person the opportunity to possess a world-saving starship is presently struggling to ramp up to face down the dark forces of hothouse extinction. Tesla is, after all, just a flawed human-run company. And so only 440 of the cutting-edge Model 3 craft had been produced by the end of October.

Yet Tesla is moving forward despite all opposition. Though suppliers capable of producing alien level tech have sometimes proven unreliable, the company is determined to build the needed components for Blue Star spaceships in-house. And it aims to have this counter-force of Model 3s marching off assembly lines en-masse at the pace of 5,000 per week by early 2018. Though earlier ambitions of a large first wave of Model 3s were disappointed, the second wave is forming with greater mass than before.

The orange skinned, one eyed, fossil fueled political people eaters have, thus far, been unsuspecting of the Blue Star forces in their midst. Perhaps Tesla’s mighty struggle to produce these new craft will provide for them some foreshadowing of the death blow to their nefarious designs that is to follow.

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Another Record Month for U.S. Electrical Vehicle Sales as Tesla Struggles with Model 3 Ramp

Electrical vehicles are a key element of the clean energy revolution. They are more efficient than fossil fuel driven vehicles; they produce zero particulate tailpipe emissions. When mated with solar and wind, they produce zero carbon emissions in operation. And they can serve as storage units for renewable energy sources all as their mass production drives the net cost of batteries continually lower.

So if you’re worried about climate change, and you’re well informed (not misinformed, confused, or focused on various shiny objects presently circulating the media), then you’re really interested in seeing electrical vehicle adoption hitting a high ramp in the near future. For those in this group, the October U.S. electrical vehicle report should serve as some hopeful news even as federal action under President Trump tilts more and more toward extreme anti-climate change response policy.

25th Consecutive Month of Record U.S. EV Sales

According to Inside EVs, plug-in electrical vehicle and hybrid sales saw their 25th month of consecutive record gains. About 14,598 electrical vehicles sold during October — which was 33 percent greater than during October of 2016. The yearly total for the U.S. during 2017 is now 157,039. This roughly matches 2016’s accumulated sales from January to December of 158,614. Given present trends, and given the fact that EV sales tend to ramp up during November and December, it is likely that U.S. numbers will hit near or slightly above the 200,000 mark by year end.

(U.S. Electrical Vehicle Sales During October. Image source: Inside EVs.)

GM’s Chevy Bolt rocketed to the top of the list for the month with 2,781 sales. The Bolt has benefited from broader dealer availability and appears to be riding the wave of excitement produced by the Model 3, which is still not available in the mass market. The car is also low-cost, long range, and extraordinarily well reviewed — despite lacking the larger charging network support available to Tesla owners. Annual Chevy Bolt 2017 sales still lag behind that of Tesla’s market-leading Model S — with 20,750 sales for the Model S and 17,083 sales for the Bolt.

The second best-selling plug-in car during October was Toyota’s Prius Prime at 1,626. Toyota’s plug-in electric hybrid has also been very well reviewed by buyers and features a range extending gas engine that completely removes range anxiety (although this is less of an issue for Teslas and the Bolt which presently boast ranges in excess of 200 miles).

Chevy’s Volt takes up the third spot on the heels of the Prius Prime with 1,362 sales. This hybrid boasts a longer electrical range than Toyota’s Prime and the position of an established leader in the field. However, the Prime’s popularity is now giving the Volt a run as top plug-in-hybrid with annual sales neck-and-neck between the two at 16,710 (Volt) and 16,682 (Prime) respectively.

Tesla’s Model S and X vehicles rounded out the 4th and 5th spots for the month with 1,120 (S) and 850 (X) U.S. sales. For the year, Tesla’s Model S is still the top selling EV with 20,750 U.S. sales and the Model X is the 4th best selling U.S. EV with 16,140 total sales. Tesla sales efforts tend to follow an uneven track with greater sales pushes toward end-quarter. So Tesla’s October lag is par for the course for the company which saw a record 3rd quarter of 2017 with 26,150 cars sold globally during July, August and September. To match this level, Tesla total sales will have to ramp during November and December. However, it is worth noting that sales of Tesla EVs have grown significantly in places like Europe during recent months — hitting 4,662 in Europe during September alone.

Aspirational Tesla Struggles to Meet Vision of Mass EV Production

Tesla is presently struggling to ramp up production of its highly sought-after, signature Model 3. With upwards of 500,000 reservations, the nascent company is seeking to make a leap to major automaker status on the platform of an electrical-vehicle-only line. Tesla bet on a highly automated line and a simplified design to achieve a rapid Model 3 ramp to meet this demand and to ensure cash flow into 2018. However, issues with suppliers and with managing such a high level of automation has caused the Model 3 production ramp to splutter. In total, reports estimate that around 405 Model 3s have been produced through the end of October with 145 produced that month. Tesla, acknowledging difficulties, has rolled back its production ramp by 3 months — aiming for 5,000 Model 3s per week by March.

(The Tesla Model 3. Image source: Tesla.)

Our forecast for Model 3 production by end year has dropped to 2,000 with between 75,000 and 200,000 Model 3s produced for 2018. However, if problems with Model 3 production do not soon clear, the total for 2017 could drop to between 700 and 1,000. Hopefully, Tesla can transport itself out of its various circles of mass production hell and avoid such a lag.

Tesla has a history of missing ambitious targets and then catching up with time. Tesla’s Model X production ramp also encountered difficulties, but the all-electric SUV swiftly became a global best seller once production bottlenecks cleared. That said, these are tough signs in a tough time for Tesla, and for those (like this writer) who support the spirit of Tesla’s fully-integrated all-renewable based business model. Renewable energy foes have been emboldened by Tesla’s struggle with Tesla bears making rabid statements almost daily. The next 3-6 months will be make or break for Tesla — determining whether the company falls behind a growing pack of high-quality electrical vehicle producers or whether it continues to be an industry leader. And, in so many ways, Tesla’s success or failure will help to make or break U.S. global renewable energy leadership. For EVs, as a whole, have found new sources of leadership coming from China and Europe even as many automakers invest more heavily in electrical vehicle lines.

Links:

October 2017 U.S. Plug-in Vehicle Sales Report Card

Tesla Record Month in Europe

Tesla Model 3 Delivery Delays

 

Tesla Under Fire as Renewables Rise: China, Consumer Reports, and the Ailing ICE Industry

With major renewable energy and automotive media now obsessed with the success or failure of Tesla’s zero emissions Model 3, it’s helpful to understand the larger context in which a monumental conflict between an old, mostly dirty industry and new clean energy players is occurring. To this particular point, we should take the opportunity to step back for a moment from the day-to-day minutiae of business activities and related media campaigns to ask this single essential question:

In the present day’s ever-worsening and warming climate, what does a wise, forward-looking national energy policy look like?

Such a question may seem out of context until one considers the fact that the object of so much media and industry drama — Tesla — operates in what can best be described as a conflicted policy environment. In the U.S., Tesla enjoys a dwindling subsidy in the form of tax breaks going to purchasers of zero highway emissions electric vehicles (EVs). This subsidy was intended to incentivize zero emission vehicle adoption and thus enable the numerous health and environmental benefits that would result from taking more polluting automobiles off the road.

(One of Tesla’s main advantages has always been aspirational vision. Part of that vision involves a systemic approach to clean energy production. In one example, Tesla not only produces electrical vehicles, it owns a large and expanding global EV charging infrastructure. The future is electric and Tesla is vertically integrated.)

Such a subsidy also pushes for the replacement, ultimately en-masse, of dirtier vehicles upon which an old and thus more easy to profit from industry presently relies. And in Western democracies, this looming replacement has resulted in a number of political and media firestorms as the old industry tries to delay or deny the pathway for new energy leaders like Tesla. These old industry players — ranging from traditional automakers to fossil fuel behemoths — have managed to place barriers to electrical vehicle adoption in many regions. The upshot is a kind of energy policy (and related media) gridlock where the old industry attempts to hamstring the new, aspirational, more helpful industry at every possible turn.

In this very serious game with ultimately extraordinary consequences for everyone living on the planet, this increasingly polarized policy posture results in serious delays of an essential energy transition. It also leaves wide open the door for outside competitors to take advantage of what can well be described as western balking and intransigence at a critical moment in global history.

China’s Drive for Global Energy Leadership

For a China observing a West consumed by in-fighting and division over energy and climate futures, wise policy involves a rapid move to cut coal burning and shift to becoming a global renewable energy leader. To do this, China has funneled billions of dollars of aid and incentives to solar production, to battery production, and to electrical vehicle manufacturing. It has protected these markets, which it invests heavily in, by both tariffs and trade laws. Some of these laws encourage the transfer of technical knowledge to local companies by requiring foreign companies wishing to produce EVs on Chinese soil to partner with indigenous industry and share information.

For China, these policies are not simply altruistic. Though they will result in considerably less greenhouse gas emissions on net and help to drive the world to reduce harms from both air pollution and climate change, they are also aimed at global energy leadership and, perhaps, dominance. They grant China both moral authority and economic might that leverages the powerful economies of scale a massive manufacturing base provides. Such clear-focused policies aimed directly at both moral and strategic energy goals are largely lacking in the polarized West. And this consistent organization and follow-through produces a growing moral and economic advantage for China. For the prize of renewable energy leadership or dominance is huge — ranging in the trillions of dollars.

(China leaving the U.S. behind on green energy. This is largely and ironically due to increasingly backward climate policy promoted by the Trump Administration.)

In the global solar industry, such renewable energy focused polices have resulted in the majority of world solar manufacturing being housed in China. This development, in turn, has produced a considerable price advantage for solar panels manufactured by large Chinese facilities that can leverage expanding economies of scale.

In the U.S., this advantage has produced a flood of cheap solar panels coming from foreign shores. Such a flood helped to enable the building of a massive industry that now directly employs more than 370,000 people — which is about seven times the number of people employed by the coal industry and about double those employed in the oil, gas, and coal based electricity generation industry combined. But cheap Chinese imports have also put a big dent in direct solar manufacturing in the states. In reaction, we are now seeing a trade case that will have far-reaching impacts on the U.S. solar industry presented to the unwise and irrational Trump Administration. And it is, perhaps, the irony of all ironies that a Chinese solar manufacturer operating on American shores was one of the key plaintiffs in a case that could dramatically undercut solar adoption rates while also removing thousands of renewable energy related jobs if handled poorly.

Though China’s solar industry is well ahead, its related electrical vehicle industry is rapidly catching up. Last month (September of 2017), fully 59,000 electrical vehicles sold in China. This represents about half of all electrical vehicles sold across the world during that month. It is 80 percent more EVs than were sold in China during September of 2016. So far in 2017, 338,000 EVs have sold in China, which is a 48 percent growth year-on-year. Globally, due in part to these considerable advancements by China, it is likely that total EV sales will well exceed the 1 million mark for the first time with growth into 2018 easily likely to exceed 50 percent.

Tesla as Global Gadfly vs Ailing ICE Industry

And here we return, at last, to Tesla and its imminently controversial Model 3. For what China is doing on a massive national scale, Tesla is attempting to do through business and related capital investment alone. Tesla is a renewable energy only company — offering battery storage for clean power systems, electrical vehicles, and solar panels. And it is presently the only large western automobile and energy company to operate under an all-renewable products banner.

Tesla’s mission from jump was to attempt to spur widespread electrical vehicle production and a related renewable energy revolution. To disrupt the automobile market enough to spur the entry of serious competitors and to, through such competitive incentive, drive a global industry sea change. And the Model 3 was at the center of Tesla’s plans.

Tesla’s successful Model S and X were intended, in other words, to enable Tesla to mass produce a high-quality, lower cost, long-range electrical vehicle that, by itself, would be capable of selling 200,000 to 500,000 units or more per year. This vehicle, in turn, was meant to help Tesla produce an even lower cost, high quality EV that would be capable of selling even more.

Looking at numbers alone, it is difficult to conceptualize what such sales would mean for the global automobile industry. But digging a bit further, we find that the Model 3 represents a serious threat to a large lower-end luxury and sport vehicle market presently dominated by major ICE automakers such as GM, Audi, Porsche, Volvo, Mercedes, Jaguar, Toyota, and BMW. IF the Model 3 achieves its sales goals, well-selling vehicles like BMW’s 3 series or the Audi A3 or A4 could be decimated. Such automakers would be largely forced to react by producing high quality EVs to compete with the Model 3 and hopefully blunt some of its impact on traditional auto industry profits. Which is exactly what is now happening as we see Chevy’s Bolt, an up-ranged Nissan Leaf, and numerous other higher-quality, longer-range, lower-priced EVs on the way or already on the market.

ICE Industry Critics 

So even without large Model 3 production, Tesla has already played a major role in forcing traditional fossil fuel based automakers to react. However, the success of the Model 3 is of key importance to the speed of market transition. A less successful Model 3, for example, would take the pressure off traditional automakers — perhaps allowing room for backsliding and ICE market retrenchment. A more successful Model 3 would force more rapid responses — goading automakers not just to produce compliance EVs, but high-quality EVs capable of competing with what is likely to be an amazing vehicle on all counts.

Considering these very high stakes, it is easy to understand the present media hyper-focus on the Model 3 production ramp. And it is also easier to comprehend the cause of an emerging public war of words between major traditional auto industry stake holders and Tesla. For in the past six months we have seen CEOs from GM, Volkswagen, and others decry, mis-characterize, or otherwise seek to blunt support for Tesla’s rise.

Conflicts with Workers

Tesla, like any other company, is staffed by human beings possessed of various human limitations. And in its Herculean push for rapid expansion, Tesla is also likely driving these employees rather hard. So we would be remiss not to illuminate the sacrifices, conflicts, and casualties that are often produced in the quest to achieve lofty goals.

Musk himself operates under a puritan work ethic in which his observed or reported work encompasses 60-100 hours per week. An example which he appears to expect his employees to emulate. Given his company’s aspirational aims and the stakes involved, this serious drive is understandable. However, such an extreme work ethic has clashed with the values of U.S. unions who attempt to protect employees from over-work and all the risks of injury such a higher stress work environment entails.

This is one reason for the growing friction between Tesla and some of its employees. It is also worth noting that the UAW, which is attempting to organize workers at Tesla plants, is a political organization with deep-seated ties to the traditional ICE manufacturing structure in the U.S. So it’s also possible that motivations for union opposition to Tesla may exceed those of a traditional workplace conflict with management. One would hope, in an ideal world, that UAW workers would share the aspirational goals aimed at speeding advancement of clean energy and transportation systems while differing with Tesla management workplace practices. However, institutional knowledge of workers is presently more largely tied to the fossil fuel based vehicle production chain. And such ties represent a higher likelihood of producing traditional industry biases that are difficult to overcome.

In the absence of government leadership and communication addressing both fair workplace practices and a larger recognition of the need to re-train workers steeped in a systemic ICE production tradition, such an interests-based-conflict is probably unavoidable. And it appears that we are seeing it emerge now with the hard-charging Tesla. Such a systemic conflict with traditional institutions within the U.S. may well be just one more reason why Tesla is now planning to build a large manufacturing facility in more institutionally EV-friendly Shanghai, despite facing high tariff barriers on vehicles built there for the Chinese market.

Consumer Reports

Assaulted by traditional automakers, a large and vocal subset of institutionally biased fossil fuel based investors, and embroiled in an escalating conflict with factory workers in the U.S. while attempting to achieve aspirational and ultimately helpful goals, it is understandable why Tesla executives might feel emotionally raw when reading daily news and market reports. To these executives and to company leader Elon Musk, it is, indeed, understandable that they would feel at least some of the cards have been stacked unfairly against Tesla’s needed success.

So when Consumer Reports last week issued an expected ‘average’ reliability rating for the otherwise fantastically reviewed Model 3, it is also understandable why Tesla executives reacted with criticism of the major consumer watch-dog agency.

Overall, Consumer Reports ratings of Tesla vehicles have been mixed. The Model S, for example, received glowing ratings. The Model X, troubled at times by the complexity of its falcon wing doors, has received somewhat more qualified ratings. It is worth noting that both vehicles maintain the advantages of a drive train that is basically an order of magnitude more reliable than a traditional ICE and first in class Tesla acceleration and top-notch handling. So Model X critiques are primarily due to body design elements as reported by Consumer Reports.

That said, some EV owners have criticized Consumer Reports for what they perceive as reviews of the Model X and other EVs that do not take into account inherent EV benefits. Consumer Reports, for example, had reportedly issued a somewhat negative review of the low-cost Mitsubishi MiEV. But it is worth noting that Consumer Reports has also provided a glowing review of the Chevy Bolt EV which the agency has given top reliability ratings. So it’s unreasonable to say that Consumer Reports trashes all EVs.

Returning to the Model 3, the Consumer watchdog agency, which has yet to actually get its hands on a Model 3 for an actual review, has noted that it issued its forecast in the understanding that first model year vehicles tend to be somewhat less reliable as production kinks are addressed. Such a forecast can be chalked up to informed speculation by an expert agency that, though authoritative, is not infallible. But given the massive barrage by traditional fossil fuel industry and ICE supporters against Tesla in the Model 3 production ramp up, it is understandable why Tesla execs might be miffed by a less than stellar, if speculative, Consumer Reports announcement.

The Model 3 Tsunami is Still Coming

Despite Tesla taking so much fire and sometimes apparently over-reacting, every indication points toward a tsunami of high quality Model 3s still coming — if, perhaps, a bit slower than many of us had hoped. Production has continued to ramp up through September, though on a slower ramp than initially targeted. Meanwhile, Tesla has presently filed for VIN numbers up to 2,136 as of last week.

As we learned a couple of weeks ago, VIN numbers are not a reliable indicator of present Tesla production. However, it is still an indicator of expected production. So it appears that Musk’s Tesla is continuing to navigate Model 3 production difficulties in a highly challenging environment for the new company. Speculative reports have indicated that Tesla may be having difficulty with both parts suppliers and high speed welds for its new production of a steel-based vehicle (past vehicles were made from aluminum or other materials).

That said, even on a slower ramp, Tesla appears likely to produce at least 3,000 Model 3s by year end and in the range of 100,000 to 200,000 or more of the highly-sought-after vehicle during 2018. This expected 2018 production is still 4-8 times the likely sales of Chevy’s Bolt which entered the market nearly a year ago and has slowly ramped up to selling in the range of 2,500 vehicles per month. It also rivals, for a single model vehicle, the entire EV sales of a very EV ambitious China during 2016.

Given both the need for a rapid energy transition and for strong renewable industry leadership to be held by a western auto-maker vs a rising wave of competition aimed at new energy dominance coming from China, this is still good news for those of us who support renewable energy as a necessary solution to the problem of human-forced climate change and for those promoting American innovation and leadership alike. But we should be very clear that the global energy game is rapidly changing and increasingly complex. So, as ever, watch this space…

(UPDATED)

Links:

7 Million Deaths Annually Linked to Air Pollution

Widespread Adoption of Electrical Vehicles Would Curb Greenhouse Gas Emissions and Improve Air Quality

Solar Employs More People in U.S. Electrical Generation Than Oil, Coal and Gas Combined

China is Crushing the U.S. in Renewable Energy

Solar Power in China

China-Owned U.S. Solar Maker Seeks Tariffs on China Imports

Tesla Could Have Millions of Cars on the Road by 2023

Model 3 Production Bottlenecks are Due to Suppliers Says Oppenheimer

Led By Tesla, September U.S. Electrical Vehicle Sales Surge

The month of September was another big one for U.S. electrical vehicle sales. And, once again, despite a growing barrage from its increasingly irrational detractors, Tesla just keeps crushing it as a U.S. and global clean energy leader.

Tesla Leads Record September EV Sales

In total, 21,325 plug-in vehicles were sold in the U.S. during September. This sales rate represented a 24 percent growth over September of 2016 and amounted to the second highest number of electrical vehicles sold in the U.S. during any month on record. Total annual sales are now 142,514 and appear ready to approach or exceed the 200,000 mark by year-end.

(Strong electrical vehicle sales growth in the U.S. continued during September — with Tesla remaining ahead of the pack. Image source: Inside EVs.)

Tesla again showed itself as a strong market leader with combined Model S and X sales of 7,980. These models, respectively, held the top two sales spots for the month — followed closely by the long-range Chevy Bolt EV at 2,632 sales after nearly a year on the market. The Toyota Prius Prime and Chevy Volt plug-in hybrids rounded out the top five spots at 1,899 and 1,453 sales, respectively.

The main story of these best-sellers appears to be range — with all of these vehicles boasting long range electric or plug-in-hybrid capability. But Tesla’s high quality luxury offerings still hold an edge due to better technology, better charging infrastructure support, and superior overall capabilities. What’s even more ironic is that Tesla’s vehicles — that often sell for upwards of 100,000 dollars each — are still moving at greater volumes than the 35,000 dollar Chevy Bolt.

Chevy Bolt and Model 3 — Place-Holder vs Industry-Mover

The Bolt has a 238 mile range, which is a bit shorter than the higher-end Teslas which now can travel for between around 250 and 315 miles on a single charge. The Bolt’s quality is also considerably lower than the higher-priced Teslas — with slower acceleration, economy body styling, inferior handling and less features. As noted above, the Bolt also does not enjoy the support of Tesla’s large and expanding charging infrastructure. All that said, the Bolt remains an excellent EV for the price. It’s just that one wonders if GM’s heart is really in it to go all-in to sell the vehicle. Or is GM just placing a necessary high-quality competitor in a strategic attempt to stymie enthusiasm for the upcoming, trend-setting, Tesla Model 3?

(Obama-era CAFE standards are a major driver for auto industry transformation away from polluting fossil fuels and toward zero-emissions electric vehicles. Industry leaders like GM have long fought a policy that incentives electrical vehicle production and ultimately produces the combined benefits of moving the country toward energy independence, renewable energy, healthier air, and a less hostile climate. This year, the Trump Administration has sided with fossil-fuel based automakers and moved to roll back Obama’s helpful CAFE standards. Image source: Alternative Energy Stocks.)

A big hint comes in the form of continued opposition by major automakers like GM to increasing CAFE standards. From Electrek earlier this week:

In a time where a surprising number of major automakers are announcing that they believe electric cars are the future of the auto industry, we are still seeing them complaining about, and in some cases lobbying against, the fuel emission standards.

Now trade groups representing virtually the entire auto industry are again putting pressure on U.S. regulators to weaken rules that would force them to produce more electric cars.

So the rational question arises — would an automaker who really believes that the future is electric, who is really dedicated to the success of vehicles like the Bolt and the Volt also be fighting to remove fuel economy standards? If this appears like hypocrisy to some, then it probably is. A duck, after all, does quack from time to time.

Moving Economic Eggs into the All-Electric Basket = No Harmful Fossil Fuel Conflict of Interest

Tesla, on the other hand, only produces electrical vehicles. So, unlike GM, it doesn’t have a gigantic fossil fuel burning vehicle production infrastructure hanging around its neck and dragging it back down into the vast ocean of structural industry contributors to worsening climate change impacts.

And while critics decry production delays for the Model 3, GM’s own ambitions for the Bolt were comparatively modest — aiming for around 50,000 sales per year vs Tesla’s ultimate goal of 400,000 to 500,000 for the Model 3. One of these cars, therefore, looks like a shot at an industry defender while the other appears to be aimed directly at transformation. And who wins out in this David and Goliath struggle will have far-reaching energy, climate, and vehicle industry repercussions.

(Total U.S. EV sales for the year of 2017. Image source: Inside EVs.)

Sales of the key vehicle in question, the Model 3, remained slow at 115 units in September. This following 30 and 75 sales respectively during July and August. Tesla admitted facing production bottlenecks in its planned massive ramp up for the Model 3 aimed at meeting the demand of an amazing 500,000 pre-orders. Tesla critics have had a field day as the all-electric automaker struggles in its attempts to get its famed ‘alien dreadnought’ production of all-electric vehicles up and running.

The slower ramp in Model 3 production, so far, is admittedly a bit of a bump in the road for Tesla. But critics’ claims of Tesla’s ‘imminent demise’ have become a common and hackneyed cry over recent years. So we can take the present brouhaha with a couple of grains of salt and view any major downward moves in Tesla stock as a panic-induced opportunity for more steady, savvy, and environmentally conscious investors.

Investing in Clean Energy Future Makes Moral and Economic Sense

To this point, Tesla uses its stock market capitalization to help fund its energy transformation efforts. So Tesla investors are helping to fund a global move away from fossil fuels. And for putting their money on the line in this way, we should express to them our thanks and gratitude.

In the larger context, electrical vehicles, and more broadly, a related ramping battery storage production chain forms one of three key pillars to the global energy transition away from fossil fuels. The other two pillars are composed of wind and solar. All of these technologies produce zero carbon emissions in use. And due to their ability to hit economies of scale in production that result in reduced costs, higher efficiency, and higher energy densities over time, they have a demonstrated capability to increasingly out-compete dirty fossil fuels and rapidly reduce carbon emissions.

So when new clean industry leaders like Tesla are forcing laggards like GM to produce electrical vehicles and market them, even as market-defenders, then those of us who support clean energy and are worried about the threat of climate change should all be cheering.

RELATED INFORMATION AND STATEMENTS:

If true, then why continue to fight CAFE standards? —

DISCLOSURE:

I presently hold Tesla stock as part of a larger renewable energy and sustainable industry investment portfolio. For me, this is part of a morally driven choice to divest from fossil fuel based energy companies and invest in clean energy companies. Though these choices incur considerable financial risk, I believe that wholesale investment by society in fossil fuels results in severe ultimate harm — which I will not be a party to. I urge others to seriously consider joining the campaign to divest/invest.

Links:

Monthly Plug-in Sales Scorecard

Automakers Claiming to be ‘All-in on Electric Cars’ are Still Lobbying Against Stricter Fuel Standards

Aggressive New CAFE Standards

Tesla’s Electric Sales Explode Despite Slow Model 3 Production Ramp

Around the world, electric vehicle makers are starting to make serious inroads into the global auto market. And aspirational industry leader Tesla continues to break new ground and open new markets despite an increasing array of challenges.

Record Tesla Sales

During the third quarter of 2017, Tesla sold 26,150 all-electric vehicles. A new quarterly sales record for the company which included 14,065 super-fast luxury Model S sedans, 11,865 of the also super-fast and highly luxurious Model X SUV, and 220 of the mid-class luxury-sport Model 3. In total, during 2017, Tesla has sold more than 73,000 vehicles. Placing the all-electric vehicle and renewable energy systems manufacturer in a position to challenge the 100,000 cars sold mark by end of December.

(Tesla production and sales by Quarter shows that Q3 2017 beat Tesla’s previous record by more than 1,300 vehicles. Tesla appears on track to hit near 100,000 vehicle sales in 2017. Note that Model X production took 6 Quarters, or approximately 18 months to fully ramp to present sales rates above 10,000 per Quarter. Telsa ultimately expects to produce more than 60,000 Model 3s per Quarter by 2018. Investment analysts are more conservative — with Morgan Stanley targeting 30,000 Model 3s per Quarter. Image source: Commons.)

Surprises in Tesla’s Q3 report include greater than expected overall Model S and X sales. Pessimistic speculation about Tesla struggling to sell its higher-quality line as customers await the anticipated but less expensive and tweaked-out (but still bad-ass) Model 3 abounded throughout August and September. Those contributing to this brouhaha, however, did not appear to anticipate the excitement generated by Tesla’s Model 3 launch which appears to have spilled over to the more expensive line-up even as Tesla both offered incentives on some of its showroom vehicles and cut shorter range, lower cost versions of its Model S line-up.

Tesla Model 3 Production Ramp — A Miss, But Still in the Window

Tesla did, however, fail to meet Model 3 production ramp goals of 1,500 by the end of September. And this was one point where the Tesla pessimists ended up proving at least partly right. Citing production bottlenecks, the luxury EV manufacturer noted that it had produced only 260 Model 3s by end month — a 1,240 vehicle short-fall for the Quarter.

Overall vehicle production had still grown from July through September — hitting 30 in July, about 80 in August, and about 150 in September. This is still an exponential rate of expansion. But the more rapid anticipated ramp was not achieved. Tesla noted that most of their fast production chain was functioning as planned. But that a few bits of the complex and highly automated Model 3 manufacturing subsystems were taking “longer than expected to activate.”

(Tesla’s ground-breaking Model 3 missed company production targets by a fairly wide margin this month — triggering a big controversy among investors. Long term prospects for the Model 3 remain strong as Tesla works through what is, effectively, an employee beta testing period. Image source: Tesla.)

At first blush, this appears to be a fairly wide miss in Tesla’s planned production ramp. But if rapid production scaling is still achieved this fall, it will look like nothing more than a bit of a bump in the road. After the Q3 report, Elon Musk noted:

“I would simply urge people to not get too caught up in what exactly falls within the exact calendar boundaries of a quarter, one quarter or the next, because when you have an exponentially growing production ramp, slight changes of a few weeks here or there can appear to have dramatic changes.”

In other words, we are still in the window for rapid production scaling, even if the earlier, more rapid, ramp was missed by a few weeks.

The company previously struggled with its very complex production of the ultimately popular Model X. To address production challenges, Tesla aimed to simplify production for the Model 3. But integration of new automated equipment into large manufacturing chains as the vehicle is built and product-tested by employee-customers is proving to again pose a few challenges. Challenges that, at this time, do not appear to be anywhere near as serious as those encountered during the Model X production ramp, but are still enough to produce delays.

Tesla Model 3 Production Still About to Explode as EV Maker Enjoys Serious Structural Advantages

Keeping these facts in mind, we can take some of the overly negative reports following Tesla’s failure to hit early Model 3 production targets with a lump of salt. The company still produces amazing cars, is still going to flood the world with high-quality and much more affordable all-electric Model 3s. The company owns a massive manufacturing apparatus in the form if its Freemont plant and Nevada Gigafactory. An apparatus that is rapidly growing. Outside this expanding manufacturing chain, the company is the only major automaker to seriously invest in and rapidly expand crucial EV charging infrastructure. All of these are systemic underlying strengths that the electric automaker will continue to leverage and expand on.

(Tesla battery sales help to reduce EV battery pack costs by producing economies of scale in production. The reverse is also true. With demand for Tesla’s powerwall and powerpacks on the rise, the company possesses a number of systemic advantages that most automobile manufacturers lack. Image source: Tesla.)

Tesla is in the process of transitioning from an automaker that produces a moderate number of vehicles each year to a major automaker that produces more than half a million vehicles each year. And it’s bound to encounter a bump or two in the road from time-to-time. Ultimately, the Model 3 production ramp will hit its stride as Tesla works out the kinks. Around 500,000 reservation-holders will still get their cars.

Analysts at Morgan Stanley recently:

warned investors against “micro-analyzing the monthly ramp of the Model 3.” Most vehicle launches have hiccups, and quality and attractiveness count for far more importance than quantity “at least for now,” they said in a note.

Tesla was quick to stress that it foresaw no serious issues with the Model 3 production. That the company understood what needed to be fixed in the manufacturing chain and was working to address those issues. If this is the case, we should see Model 3 production start to ramp more swiftly over the coming weeks. But even without rapidly ramping Model 3 production — which is on the way sooner or later — Tesla is still smashing previously held all-electric sales records.

And for those of us concerned about climate change, that’s good news.

Links:

Tesla Shares Shake off Bad News of Model 3 Deliveries

Tesla

Tesla Q3 Report

 

 

Tesla’s All-Electrical Spark is About to Grow Much, Much Brighter

Can a single venture born out of one man’s vision for a more sustainable future help to spark the complete transformation of global automobile markets, aid the U.S. and other nations moves toward energy independence, help tamp down the problem of human-caused climate change, spur a rapid influx of renewables in the electrical generation sector, and, all the while, compete toe-to-toe with nationally funded battery, automobile, and renewable energy companies emerging in China?

We’re about to find out.

Tesla, Daimler, China Invest in Gigafactories; Musk and Daimler Spar on Twitter

This week, large German automaker Daimler announced that it would invest 1 billion dollars in an EV battery production plant in Alabama. The move followed very heavy similar investment and policy announcements by China and a multi-billion dollar investment by all-electric automaker Tesla in the first of a number of planned battery gigafactories.

Elon Musk, noting the size of Daimler’s available capital for investment, made the following pithy remark on Twitter:

Daimler, appearing more than a little sensitive to the remark, replied that it would be investing 10 billion in EV development in total, with 1 billion going to batteries. Musk replied — “Good” — with Daimler stating that it had been developing electrical vehicles for more than 100 years.

Of course, Daimler, unlike Tesla, still primarily produces fossil fuel based vehicles. The company’s planned launch of EVs capable of competing with Tesla’s present offerings are slated for around 2020. By that time, Tesla is likely to be producing well north of half a million all-electric vehicles per year. Daimler would have to significantly increase investment to adequately meet such a major challenge by Tesla.

The history of Daimler is one in which it has mostly dabbled in electrical car production while instead dedicating the lion’s share of its efforts to producing unsustainable carbon emitting cars and trucks. In 2016, Daimlier sold 3 million vehicles — the vast majority of which were ICE-based. With Tesla gobbling up larger and larger market share as an electric-only vehicle supplier, that may soon change. A result that would be “Good” for everyone on the planet. Especially in the present situation where harms from human-caused climate change are rapidly ramping higher.

But despite Daimler’s 100 year history of experimenting with electrical vehicle designs, it has a lot of catching up to do when it comes to confronting a serious market competitor in the form of the all-electric Tesla.

Tesla Ahead in the Electric Race

To understand how serious, we need only look at Tesla’s growing suite of top-in-class vehicle offerings combined with an emerging fierce logistics chain of increasingly low-cost EV batteries.

Part of this story begins at Tesla’s Nevada Gigafactory 1. To look at even the 1/3 complete Gigafactory is to behold the awesome potential of mass production writ large. Back in 2014 when Gigafactory 1 began construction under a partnership with Panasonic, the ultimate aim was to build a facility capable of producing 35 gigawatt-hours of batteries per year by 2018. That number has been raised to 50 gigawatt-hours — with an ultimate goal for this single factory in the range of 100 to 150 gigawatt-hours. By comparison, the entire global total of battery production in 2014 was around 35 gigawatt-hours. And total national production by battery giant China is presently at around 125 gigawatt hours — set to hit around 230 gigawatt-hours by 2023.

(Tesla Gigafactory 1 shows 9 of 21 planned modules complete by late August of 2017. Image source: Commons.)

Producing so many batteries in one facility will enable Tesla to leverage some serious economies of scale. This, in turn, will result in lower prices for the batteries it produces — allowing the automaker to sell electrical vehicles for less or make higher profits on models that are produced. Already, with about 15 percent of the planned gigafactory now producing batteries, Tesla is starting to see the benefits of this scaling. And recent reports indicate that it has pushed battery prices to below 140 dollars per kilowatt hour during 2017. Ultimately, many industry analysts expect the Gigafactory 1 to enable Tesla to produce batteries at near the 100 dollar per kilowatt hour mark before 2020 — substantially reducing base production costs for EVs in total.

Masses of Model 3s

This mass production of batteries is the cornerstone for Tesla’s expected mass release of its Model 3 vehicle.

To be very clear, Tesla’s spearhead Model 3 is the ultimate aim of all of the company’s efforts thus far. Each sale of the more expensive luxury Model X and Model S versions have gone to fund the more mass market Model 3. And recent cancellations of lower cost, shorter range Model S versions appear to have been aimed at creating space for the Model 3 in the 35,000 to 59,000 dollar market segment.

(This week’s Tesla Model 3 news.)

Present production of the Model 3 appears to be ramping up according to Tesla’s plans. More and more of the vehicles have been sighted on California highways. A forward-shifted delivery date spurred a rumor that the Model 3 was being produced faster than expected. Texas has already started to receive some of its Tesla employee-ordered Model 3s. Rising rates of battery production at the Nevada Gigafactory 1 site have been observed. And the appearance of VIN numbers above 700 earlier this week roughly jibe with a planned ramp to 1,500 Model 3s produced by end September.

A clearer picture of this critical production ramp may emerge over the next couple of weeks as Tesla analysts pick up on monthly Model 3 production information and the Tesla Q3 report begins to take shape.

Tesla All Electric Sales Tracking Toward 230,000 to 500,000 in 2018

By end of this year, Tesla expects to be producing 20,000 of these vehicles per month. By end 2018, Tesla is aiming for 40,000 Model 3s per month. Pre-orders in the range of 500,000 vehicles show that demand support for this level of production exists. And even conservative forecasts by investment firms like Morgan Stanley show Tesla vehicle production and sales more than doubling from an expected 90,000 to 100,000 in 2017 to over 230,000 in 2018.

Already Tesla sales appear to be edging higher — with Q3 expected sales in the range of 24,000 to 25,000 including the ramping Model 3 production. Meanwhile, Tesla’s own goals far outstrip expectations by forecasters like Morgan Stanley with the company aiming for 500,000 total sales in 2018.

(Tesla’s Model 3 planned production timeline. Image source: Tesla.)

Regardless of whether Tesla sells 230,000 cars or 500,000 cars in 2018, it will be the first automaker in a long time to see such rapid sales growth. According to Adam Jonas at Morgan Stanley, it has been generations since we’ve seen growth like this. It’s not just 2018 that forecasters like Stanley are looking at. By 2023, the investment firm expects 3 million Tesla cars to be ranging the world’s highways with that number growing to 32 million by 2040.

Tesla’s own goals appear to be significantly more ambitious. The expected 150 gwh ultimate production capacity of Tesla’s Gigafactory 1 alone could support an annual production of 2-3 million Model 3 type vehicles. And earlier this year Tesla announced plans to construct 3 more similar facilities with an ultimate goal of 10-20. Locations for the 3 new expected Gigafactories are set to be announced later in 2017.

Given the totality of this amazing undertaking, it’s unlikely that any present individual vehicle manufacturer is pursuing mass EV production at a quality and scale comparable to that of Tesla. Daimler may now be spending billions, but they are in a race to catch up. Meanwhile, it appears that Tesla may even rival China in its ultimate ability to scale battery production.

India and China Building Solar Like Gangbusters, Electric Revolution Continues as GM Sells EV for $5,300 in China, Tesla Plans 700,000 Model 3s Per Year

If we’re going to halt destructive carbon emissions now hitting the atmosphere, then the world is going to have to swiftly stop burning oil, gas and coal. And the most effective and economic pathway for achieving this removal of harmful present and future atmospheric carbon emissions is a rapid renewable energy build-out to replace fossil fuel energy coupled by increases in energy efficiency.

(To halt and reverse climate change related damages, fossil fuel based greenhouse gas emissions into the atmosphere need to stop.)

This week, major advances in the present renewable energy build and introduction rate were reported. Chiefly, India and China are rapidly adding new solar panels to their grid, the monthly rate of global EV sales surpassed 100,000 in June, GM is offering a very inexpensive electrical vehicle in China, and Tesla has ramped up plans for Model 3 EV production from 500,000 vehicles per year to 700,000 vehicles per year.

India and China Solar Gangbusters

In the first half of 2017, India is reported to have built 4.8 gigawatts (GW) of new solar energy capacity. This construction has already exceeded all 2016 additions. The country is presently projected to build more than 10 GW of new solar energy capacity by year-end. Large solar additions are essential to India meeting its goal of having 100 GW of solar electrical generation available by 2022. It is also crucial for reducing carbon emissions from fossil fuel fired power plants (coal and gas).

(Total solar capacity in India could hit 30 GW by end 2018. India will need to add solar more rapidly if it is to achieve its goal of 100 GW by 2022. Image source: Clean Technica.)

Further east, China added 24.4 Gigawatts of new solar energy in just the first half of this year. This pushed China’s total solar energy generating capacity to a staggering 101 GW. It also puts China firmly in a position to surpass last year’s strong rate of solar growth of 34 GW. China’s previous goal was to achieve 105 GW of solar production by 2020. One it will hit three and a half years ahead of schedule. China now appears to be on track to overwhelm that goal by achieving between 190 and 230 GW of solar generation by decade’s end.

(China has already overwhelmed its 2020 target for added solar capacity. Recalculating based on present build rates finds that end 2020 solar generation levels are likely to hit between 190 and 230 GW for this global economic powerhouse. Image source: China National Energy Administration.)

Such strong solar growth numbers in traditional coal-burning regions provides some hope that carbon emissions growth rates in these countries will continue to level off or possibly start to fall in the near future. Adding in ambitious wind energy and electrical vehicle build-outs in these regions provides synergy to the larger trend. If an early carbon emissions plateau were to be achieved due to rapid renewable energy build-outs in China and India, it would be very helpful in reducing overall levels of global warming during the 21st Century.

GM’s $5,300 EV for the Chinese Market

Adding to the trend of growing movement toward an energy switch in Asia this week was GM’s introduction of a small, medium-range electrical vehicle for the Chinese auto market. GM is partnering with China’s Baojun to produce the E100. A small EV that’s about the size of the U.S. Smart Car. The E100 has about a 96 mile all-electric range, a 62 mph top speed, and goes for $14,000 dollars before China’s generous EV incentives. After incentives, a person in China can purchase the vehicle for $5,300. GM states that 5,000 buyers registered to purchase the first 200 E100s hitting the market last month, while a second batch of 500 vehicles will be made available soon.

100,000 Electrical Vehicle Sales Per Month by Mid 2017

Globally, electrical vehicle sales have ramped up to 100,000 per month during June of 2017. This growth is being driven primarily by increased sales volumes in China, India, Japan, Australia, Europe and the U.S. as more and more attractive EV models are becoming available and as governments seek to limit the sale of petroleum-burning vehicles in some regions.

(Projected growth rates for EV sales appear likely to surpass present projections through 2020. Image source: Cleantechnica.)

Meanwhile range, recharge rates, acceleration, and other capabilities for these vehicles continue to rapidly improve. This compares to fossil fuel vehicles which have been basically stuck in plateauing performance ranges for decades. 2017 will represent the first year when sales of all EV models globally surpass 1 million per year. With a possible doubling to tripling of EV production through 2020.

Telsa Aiming for 700,000 Per Year Model 3 Sales

2018 will likely see continued growth as new vehicles like the Model 3, the Chevy Bolt, and Toyota Prius Prime provide more competitive and attractive offerings. This past month, the Chevy Bolt logged more than 1,900 vehicles sold in the U.S. in one month. If GM continues to ramp production, marketing, and availability of this high-quality, long range electrical vehicle, the model could easily sell between 3,000 and 5,000 per month to the U.S. market. Another vehicle — the plug in electric hybrid Toyota Prius Prime — is also capable of achieving high sales rates in the range of 5,000 per month or more on the U.S. market due to a combined high quality and low price so long as production for this model also rapidly ramps up.

But the big outlier here is the Tesla Model 3. By end 2017, Tesla is aiming to ramp Model 3 production to 5,000 vehicles per week. It plans to hit more than 40,000 vehicles per month by end of 2018. And, according to Elon Musk’s recent announcement, will ultimately aim to achieve 700,000 Model 3 sales per year. If such a rapid ramp appears, the Model 3 along with other increasingly attractive EVs could hit close to 2 million per year annual combined sales in 2018 and surpass 3 million at some time between 2019 and 2020. This is well ahead of past projections of around 2.2 million EV sales per year by 2020. Representing yet another early opportunity to reduce massive global carbon emissions coming from oil, gas, and coal.

Links:

India Installs 4.8 GW of Solar During First Half of 2017

China’s New 190 GW Solar Guiding Opinion Wows

China Could Reach 230 GW Solar by end 2020

GM Should Bring Baojun E100 EV to USA

EV News for the Month

Joint Venture for Baojun E100

Model 3 Annual Demand Could Surpass 700,000

A Beautiful Machine to Change the World — Model 3 to Transform Global Automobile Markets, Open Pathway For Rapid Energy Transition

“The Tesla Model 3 is here, and it is the most important vehicle of the century. Yes, the hyperbole is necessary.” — Motor Trend

“The arrival of Tesla’s Model 3 signals a new chapter in automotive history, one that erases 100-plus years of the gas engine and replaces it with technology, design, and performance hot enough to make electric vehicles more than aspirational – to make [electric vehicles (EVs)] inspirational.” — Wired.

“[T]here isn’t anybody who’s going to sit in the driver’s seat of this car and not want it. The Model 3 stokes immediate desire, and the lust lingers. That truly changes everything.” — Business Insider.

(The Tesla Model 3 entered low rate initial production in July of 2017. There has likely never been a more anticipated, desired, or better reviewed automobile. Image source: Tesla. )

*****

More than half a million. 

That’s the number of pre-orders Tesla’s Model 3 has racked up since its 2016 product announcement and through its July 2017 launch. And it’s possible that there’s never been a car that’s so anticipated, so desired by the public. People are literally clamoring for this best-in-class, long-range, all-electric vehicle. Elon Musk is getting harassed on twitter by followers anxious to know when their Model 3 will be ready for purchase. And it’s questionable if Elon’s plan to go through ‘mass production hell’ to reach 500K per year annual production rates by end 2018 will ever come close to satiating demand for what is far more than just an amazing automobile (Tesla reports it is still accumulating reservations at a rate of 1,800 per day net, or more than 12,000 per week).

If we were to tap into what drives Model 3 customers, what fuels this particularly virulent brand of Tesla-mania, we’d probably find a dynamic combination of desire, aspiration, and fear. Desire for what is hands-down an absolutely awesome vehicle. Aspiration to contribute to a public good through a meaningful purchase. And a growing fear that we need to move very swiftly away from fossil fuels to confront the rising crisis that is human-caused climate change.

Beautiful Machines

The vehicle itself is just simply extraordinary. For 35,000 dollars you can get a car with a 220 mile all-electric range. For 44,000, the car’s renewable legs lengthen still further to 310 miles. This graceful beast can rocket from 0-60 in less than six seconds. And her interior is wrapped in the kind of bubble cockpit, due to glass roofing, that most fighter pilots would envy. She’s a vehicle that gives a nod to the simplicity of earlier times with her gadget-less dash board. Her liquid exterior a reflection-in-form of the plasma-producing energy of a futuristic, but quietly purring, all-electric drive train.

(Tesla’s beautiful machine launches. Top down view shows iconic glass roof. Image source: Tesla.)

Elon Musk has delivered to us the exact opposite of a clunky automobile made up of all the worst excesses of a stinking smokestack civilization. The Model 3 comes across as a bold and proud creature of air and light. A hopeful machine designed in the pursuit of a better future day, a better way forward.

Changing the World for the Better

And this is what brings us to the heart of the matter. The crux of the reason why hunger for the Model 3 is quite possibly without cure, without limit. People in advanced civilizations these days are tired of being the butt of blame. And they are more than a little worried about what may be coming down the Keystone XL pipeline of climate change. They don’t want to contribute to the great death and harm that is worsening climate disruption with their purchases. They no longer want to be consumers captive to the unforgiving, smog-belching yoke of fossil fuels. They want the vehicular equivalent of the paladin’s white horse. They want to buy into a liberation from an age of pain and heartbreak and endless bad choices with no visible way out. And with each Model 3 purchase — that’s exactly what they are doing.

(Tesla aims for 5,000 vehicle per week Model 3 production ramp by late fall. Image source: Tesla.)

For if Tesla is able to meet this visceral demand for a truly renewable vehicle, if the company is able to ramp up to 20,000 + vehicle per month production rates, it will, by itself, more than double the size of the U.S. Electrical vehicle market in just 1-2 years. The batteries the elegant Model 3 relies on will form a basis for extending the reach of already affordable wind and solar energy (as we are seeing this week in a new wind + battery deal off Massachusetts). And the seismic ground wave produced by the Model 3 will drive a major spike in demand for other, similar electrical vehicles from an expanding array of automakers.

The Model 3 is thus the tip of the spear for speeding an energy transition in the U.S. and in many other countries. And she couldn’t have come at a better time.

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.

Links:

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.

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

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