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Earned Respect: As Other Automakers Promise, Tesla Delivers

Clean energy and climate change action advocates take note — Tesla is working hard to deliver on its sustainability promises. It is expanding EVs, solar, and battery storage on many fronts. And it has produced an all clean energy business model that no western corporation has yet to successfully emulate at scale.

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There’s been a lot of news during recent months about Tesla Model 3 production delays. And it presently appears that Tesla is manufacturing around 700 Model 3s per week.

This is still far short of Tesla’s stated goal of 2,500 Model 3s per week by the end of this Quarter. It is even further from the 5,000 Model 3 per week goal it has established for 2018. However, most other EV manufacturers are being left in the dust by this so-called ‘slow’ production ramp.

Take the Chevy Bolt, for example. Here’s a well-built EV that some claimed would steal Tesla sales. That Chevy originally stated it expected to sell at a rate of 50,000 per year. Last year, Bolt sold 26,000 worldwide. Pretty decent. But if GM had marketed the high-quality, long range car with the same fervor that Nissan markets the Leaf, it’s entirely likely that Chevy could have gotten much closer to that 50,000 goal.

(Tesla’s vision for a clean energy future is a work in progress that is refined step-by-step. Case in point — adding solar panels to the Tesla Gigafactory 1 in Nevada. Image source: Building Tesla.)

Now Bolt is selling at the rate of about 1,250 per month in the U.S. during early 2018. Chevy is assuring prospective EV customers it will ramp up production again soon. But, so far, these are just assurances. Meanwhile, Model 3, despite delays, just sold about 2,485 in February and, in all likelihood, will approach or cross the 3,000 mark during March. Another way of putting it is that a delayed Model 3 just blew Chevy Bolt sales out of the water.

It’s worth noting that top EV analysts like Zachary Shahan over at Clean Technica are speculating that despite Tesla’s stated and pursued goals, the company may well be tracking closer to its original build path of 500,000 EVs per year by 2020. A build path that practically everyone said was impossible at the time it was announced in 2013 but which expanded following unexpectedly high demand for the Model 3.

To set out a marker, Tesla sold approximately 100,000 vehicles globally during 2017. This year, depending on how quickly the Model 3 ramps up, it will likely sell between 150,000 and 250,000.

The activity of Tesla in deploying EVs and other clean technology could well be described as building and improving a plane already in flight. Tesla vehicles are produced and sold to employees during beta testing even as the production line is refined and worked out. Low rate initial production then follows. And after that, mass market production and scaling. We saw this most clearly in the launch of the Model X which, though slow, ramped up to produce the best selling all-electric SUV in the western world.

(Tesla historic quarterly production through end of 2017. Note that Model 3 will likely produce between 6,000 and 8,000 units during Q1 of 2018. Data source: Tesla. Image source: Daniel Sparks.)

The Model 3 is simpler. It is, overall, easier to produce. However, a new battery pack design appears to be the source of its initial delays. Not much has been broadly confirmed about the Model 3 battery pack. But it implies a greater energy density than past packs. And getting any production kinks worked out is critical for both Model 3 and also Tesla’s future designs like Model Y — including upgrades to the S and X.

Despite likely battery production kinks, Model 3 will probably deliver between 6,500 and 8,500 units during Q1 of 2018 or nearly twice the number of Model X’s delivered 3 quarters in. It’s also about 25 to 60 percent more than the number of Model S’s hitting roads after 3 quarters. Facts that should be taken into account.

At the same time that Tesla is working through the Model 3 production ramp, it is also continuing to innovate. Recent satellite photos reveal that the Nevada Gigafactory 1 — which is producing batteries even as it is under modular construction — is starting to add solar panels to its roof top (see image at top). These panels will reduce the amount of carbon emitted in producing each battery pack. In turn, reducing the sunk carbon cost of producing each Model 3 and, ultimately, each Model S and X. Thus increasing the already substantial net carbon reductions achieved by each Tesla clean energy vehicle vs dirty gas and diesel guzzlers.

Meanwhile, the Tesla Semi — which was announced just 112 days ago — is already entering Tesla’s factory vehicle fleet to haul freight in the form of Nevada Gigafactory produced battery packs shipped to the California production plant. So it seems that the all-electric Semi has shortly started its own live testing prior to expected sales during 2019. And the Semis, like the solar panels are helping to further improve Tesla’s already substantial carbon emissions reductions.

In other words, Tesla’s work in progress model is working. It is producing. It is testing, and improving. It is delivering. Clean energy Model 3, Model X, Model S and the Semi are not just concepts. These are designs in operation that are being sold and used even as their production paths are expanded. This is what actual delivery of innovative, cutting edge, climate change impact reducing products looks like. The form an actual value-driven (as opposed to solely profit-driven), sustainability-driven business model takes. The rest of the auto industry should be standing at attention.

Respect.

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Tesla Model 3 Production Ramp — Steady as She Goes

If a person were to define the goal of aspiration, not in the dictionary sense, but in the ideal sense, a part of it would include attempting to achieve things that were previously considered impossible.

From the point of view of Tesla, setting seemingly impossible goals and then shooting to attain them has apparently become a new model for doing business. As the old adage goes — shoot for the stars. Go ahead try. If you miss them you might hit the moon instead.

With the Model 3, it appears that Tesla, so far, may have just managed to land on the moon after setting some pretty amazingly ambitious initial star-shot-type goals. That said, the moon, at this point, appears to be a temporary way-station as the company course corrects, but is still aiming for some ridiculously starshot-high production goals through 2018.

According to recent announcements from Tesla, the company achieved 2,425 units of production in the 4th Quarter of 2017. This is a considerable jump from third Quarter production of around 260 Model 3s. It is not, however, anywhere near the 5,000 vehicle per week target by year end that Tesla had initially aimed for. In other words — some moon, but no stars as yet. And it’s obvious that some Tesla watchers are disappointed. Perhaps more frustrating to those of us who are EV lovers, Tesla has again scaled back its targets somewhat — shooting for 2,500 vehicles per week by the end of Q 1 of 2018.

(Ramping Model 3 deliveries in a record 4th Quarter for Tesla. Image source: Electrek.)

But before we leave it at that, let’s add just a little context.

The first bit is that reviews for the Model 3 are coming back as very positive. Even Jalopnik, which regularly tears Tesla a new one, recently complained that there wasn’t enough to criticize about the Model 3. Meanwhile, previous Tesla owners are raving about the car. So some credibility must be given, there, to Musk’s recent claim that the company is aiming for a slower ramp to focus more on quality early and push the mass quantity part back for later. But how much later is still a pretty serious question on everyone’s mind.

The second piece of context that’s worth considering is the fact that as of December, the Model 3 was likely the 5th or 6th best selling EV in the United States. If Tesla manages to achieve an average production rate of around 500 to 1,000 vehicles per week in January, then the car will likely be ranked between 1st and 3rd. By March, if the ramp continues to scale up, it’s likely that the Model 3 will hit over 5,000 monthly sales and be the best-selling EV in the U.S.

(Despite moderate production delays, the Tesla Model 3 continues on its ramp to mass production. As you can see from the above video, fans really love this car. Meanwhile, many analysts don’t see major issues with the present Model 3 ramp and still expect Tesla to be selling north of a million EVs per year by the early 2020s.)

Looking still closer, we should take Tesla’s claims of 750+ vehicle per week production in late December with a dash of salt. It’s clear that Tesla production is now ramping. That bottlenecks are being cleared. That said, this announced sustained rate is the highest yet achieved over a relatively decent period of time. And, if past is any guide, it’s likely that Tesla will be speeding and slowing the line as they address issues. We probably shouldn’t assume that every week from now on will produce 750 or more. It could. But it’s likely we’ll see a kind of two step forward, one step back, two step forward progression as Tesla continues to refine the Model 3 line.

To this point we should probably also add that when Tesla says it is aiming for 2,500 vehicles per week by end of Q1, that’s probably a snapshot of peak production. Not of average weekly production during March. Same for the 5,000 vehicle per week target by June.

It’s a lot to digest. But I think those of us who’ve been following EVs for some time should sit back and take stock of what is a really big achievement underway. It may not be happening as fast as many had hoped. But it is happening. And even with its less ambitious ramp, Tesla appears set to at least double its overall EV production during 2018.

Steady as she goes…

U.S. Electrical Vehicle Sales Growth Continues Ahead of Model 3 Tsunami

During August of 2017, U.S. electrical vehicle sales continued to increase at a respectable pace year-on-year.

According to Inside EVs, total sales for electric-powered cars in the U.S. totaled 16,624 during August. This represents another record — growing by 2,032 or 12.2 percent above 2016’s previous record August total of 14,592.

The Tesla Model S and Chevy Bolt EV held the first and second rank among individual model sales by sending 2150 and 2107 vehicles out to new owners respectively. The 238 mile range Bolt priced at $36,000 before incentives continued to show strong sales growth as Chevy accelerated expanding offerings to new states across the U.S. Model S sales, while holding top position, were down year-on-year — likely in part due to anticipation of the Model 3 ramp-up.

(Elon Musk recently reassured investors that the Model 3 will achieve its 10,000 per week production target in 2018. Image source: EV Network.)

Inside EVs estimates that 75 of the game-changing Model 3 — with best in class features, a 220 to 310 mile range, and a 126 MPGe fuel efficiency rating — were produced and sent to customers during August. If this number is correct, it would signify a somewhat slower ramp than the expected 100 sales for the month. However, this report is preliminary and may be subject to revision. And there have been more than one or two hints circulating around the web that Tesla is actually ahead of its production goals — hitting 200 vehicles by end August (see tweet below).

Presently ranked 30th on the EV sales chart for all of 2017, the Model 3 (with its approximate half-million reservations) is likely to climb into the top 20 by end September. At that point, Tesla expects about 1,500 Model 3s to be produced monthly. By October, monthly sales of the Model 3 may eclipse all other U.S. EVs as production exceeds 5,000.

At this point, the Model 3 will likely start having a noticeable influence on overall U.S. EV sales — with that impact further dilating during November and December. And if Tesla meets its December sales goal of 20,000 units for the Model 3, then the U.S. overall may see December 2017 total EV sales from all models nearly double December 2016 numbers (of nearly 25,000 units).  Meanwhile, through 2018, the Model 3 could help to drive total U.S. EV sales to around half a million or more.

In other words, the U.S. EV market is about to be hit by a tidal wave of very high quality and relatively low cost Model 3s — with profound and long-lasting results. This is good news for renewable energy and climate change response advocates. For such a large wave of electrical vehicles coming to market provides considerable opportunity for reduced carbon emissions from both vehicle based fossil fuel burning and from the ancillary electrical power market where batteries used for EVs can also replace base load coal and gas fired power stations with energy storage linked to wind and solar.

Links:

Monthly Plug-in Sales Scorecard

Plug In Electric Car Sales for August

Tesla Model 3 Production

Tesla Model 3 Information

The Electric Vehicles are Coming — Global Sales Likely to Exceed 1 Million During 2017

Electric vehicle (EV) performance has been improving so quickly and prices have been falling so fast that the internal combustion engine (ICE) wouldn’t be able to compete for much longer. You will soon be able to get Porsche performance for Buick prices and when you get that, neither Porsche nor Buick are able to compete.Tony Seba

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We talk a lot here about tipping points. Often this is in the negative sense when it comes to climate change. But when it comes to electrical vehicles, which is one of the key renewable energy technologies that has the capacity to mitigate climate harms, it appears that the world is rapidly approaching a much more positive kind of economic tipping point.

Steadily, markets are opening up to a new wave of far more capable electric vehicles. And this is good news — because the combination of wind + solar + electrical vehicles + battery storage has the capacity to act as a market force that, on its own, will begin to dramatically cut the global carbon emissions now driving dangerous climate change the world over.

850,000 EV Sales for 2016, Possibly More than a Million During 2017

During 2015, as EV ranges extended, as charging networks expanded, as countries like China and India began to incentivize electric vehicles in an effort to fight choking air pollution, and as high value vehicles like Tesla’s model X became available, global EV sales jumped to over 500,000. This momentum continued during 2016 despite plummeting gas prices — a year when sales of electric vehicles are now expected to rise by more than 60 percent to 850,000.

By 2017, it is likely that global annual EV sales will lift still further — hitting over 1 million in the world market as lower cost, longer range electric vehicles like the Chevy Bolt, the Tesla Model 3, and an upgraded Nissan Leaf are expected make their entry.

ev-volumes

(Plug in vehicle sales including EVs and PHEVs are expected to jump about 60 percent during 2016. Rising vehicle quality and concerns about pollution and climate change are the primary drivers. Image source: Plug in Electric Vehicles Sales Growth.)

While climate and environmental policy is helping to spur this beneficial trend — with smog-choked cities and countries concerned about climate change pushing for fossil fuel based vehicle bans — it’s important to note that overall EV performance and quality now also appear to be a major underlying driver pushing EV adoption rates higher. In other words, a vehicle with a more powerful engine, faster acceleration, and a larger interior, one that produces less noise while driving, generates no toxic stink from a tail pipe and costs less to fuel and maintain, and one whose operation (when coupled with a renewable electricity supply) won’t contribute to all the nasty droughts, floods, heatwaves, animal deaths and rising tides that are becoming so pervasive due to fossil fuel burning, is looking increasingly attractive.

Rising EV Quality, Lower Cost Helps to Drive Adoption Rates

Rising rates of adoption, in essence, come both from various performance advantages as well as from an increasing societal awareness of EVs’ greatly lessened harmful impacts. Moreover, electric vehicles — like wind and solar — have the ability to produce great leaps in performance, capability, and cost reduction. As a result, they are increasingly narrowing the gap with fossil fuel based vehicles on range and price even as already superior power and efficiency expands.

chevy-bolt

(Higher capability electric vehicles like the Chevy Bolt and Tesla Model 3 will help to further increase global sales during 2017. On acceleration and torque, both of these vehicles will be able to outperform many ICE based sports cars for a lower price. But the larger point here is that EVs are advancing very rapidly and are likely to be able to outperform ICEs in almost every way by as soon as the 2020s. Image source: Chevy Bolt.)

Vehicle ranges across almost all model lines are rising. The Nissan Leaf, for example, now has a range of 107 miles — compared to 84 miles just two years before — even as the company is expected to provide a 200 mile capable model in the near future. Meanwhile, today’s Leaf’s range is less than half that of the comparatively priced Chevy Bolt whose late 2016 release model boasts a 238 mile capability (about 4 times that of typical electric vehicles from just 2-3 years ago). Well-selling higher end vehicles like Tesla’s model S and X still dominate the longer range category. The base Model S’s range is 210 miles with larger battery pack versions now extending the vehicle’s legs to up to 315 miles.

The Chevy Bolt is the first mass market, moderately priced, fully electric vehicle (starting at around 35,000 dollars) with a highway range in excess of 200 miles available for US buyers. A vehicle that Motor Trend Magazine has rated very favorably. Lower maintenance and fuel costs will further add to the vehicle’s economic value and overall appeal. In late 2017, the Tesla Model 3 will join the Bolt in this category. Both vehicles represent high quality and higher performance options for buyers. And these models should help to considerably increase the number of electrical vehicles sold in the U.S. and around the world as they become available.

Electric Buses Promise to Help Revitalize Urban Areas, Make Public Transport More Attractive

(Gothenburg is one of many cities around the world moving to electric bus based transportation. This form of transport is not only clean, it provides unique features that aid in city planning and urban renewal. Video source: Electric Buses Regenerate City Planning.)

Larger electric vehicles such as trucks and buses are also starting to become more widely represented. For example, Chinese EV manufacturer BYD recently received an order for 50 new all-electric buses from Argentina. Proterra, another electric bus manufacturer, just had an order from the city of Seattle for 73. King County, which includes Seattle, plans to have all its buses powered by electricity within 3 years. Electric buses have seen major advances in recent years and now feature ranges as long as 350 miles and charging times in as little as 3-30 minutes.

Better Access to Charging Infrastructure, Faster Charging, Superior Performance

Expanding EV charging networks are also making these vehicles more accessible to the public. Tesla has invested heavily in placing chargers along highways in the U.S. and around the world. And it is the only automaker presently making superchargers — capable of fully charging an electric vehicle in about an hour — available as a special service to its drivers. These networks are adding to EV ease of use and are helping to further reduce range anxiety. Meanwhile the ability to charge at home, at work, and at numerous destinations such as grocery stores, rest stops, and malls adds to EV versatility and ease of use — providing convenience that ICE vehicles lack.

tesla-superchargers-destination-chargers

(Tesla’s ever-expanding charging network includes both super-chargers and more conventional charging stations. Image source: Gas2.)

EVs now also provide superior performance when compared to internal combustion engine (ICE) vehicles in a number of areas. Though gasoline is presently more energy dense than batteries (a situation that is changing as battery technology improves), electric motors are far and away superior to internal combustion engines. Smaller electric motors save weight and space — allowing for larger vehicle interiors and storage. Meanwhile, an electric motor’s ability to rapidly deliver energy to the drive train produces superior acceleration and torque compared to ICE based vehicles. It is this feature that allows the Tesla Model S to outperform even motorcycles in acceleration. Simplicity of design is also a superior feature of electrical vehicles — one that is enabling EV owners to dramatically reduce maintenance costs. Less moving parts and less complicated engines enable this benefit. Add in greatly reduced fuel costs and it becomes pretty clear why EVs are enjoying such rapidly rising rates of adoption.

Helping to Combat Global Climate Change

Increasing EV popularity and access helps to combat global climate change on a number of levels. First, EVs produce zero tailpipe emissions. Second, EV engines are more efficient than internal combustion engines — so they use less energy overall than fossil fuel based vehicles. Third, EVs mated to renewable energy sources such as wind and solar produce zero or near zero carbon emissions during operation. Finally, the batteries used to charge EVs can provide storage for intermittent sources like wind and solar energy. And this energy storage can occur both while the batteries are sitting in a stationary vehicle and after-market when batteries are removed following the end of the vehicle’s time of use.

EVs are also transformative in that they greatly reduce and provide the potential to eliminate emissions from large segments of the transportation sector. And this is a pretty big deal as global transport is presently one of the world’s largest sources of greenhouse gas emissions. With EVs, supply chains for food delivery and manufacturing have the potential to be decarbonized — which also helps to reduce various material and food based carbon footprints.

So the EVs are coming. A liberating economic force that’s helping to drive an energy switch that the world, at this time, desperately needs.

Links:

Dramatic Plug in Vehicle Sales Growth During 2016

EVs Will Soon Be Cheaper Than Regular Cars

Norway to Ban Petrol Vehicle Sales

Chevy Bolt

New Nissan Leaf With 200 Mile Range is Coming

Tesla Model S

Chevy Bolt vs Model S

Electric Buses Regenerate City Planning

BYD Sells 50 Electric Buses to Argentina

Seattle Buses to be All-Electric

Gas2 — More Tesla Charging Stations

Hat tip to JPL

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