Nissan says its electric car has become the first to break 400,000 in sales

Chris Ratcliffe | Bloomberg | Getty Images

Japanese car giant Nissan says its compact hatchback called Leaf has become the first electric car to exceed 400,000 in sales.
In an announcement Thursday, the business said the landmark figure had solidified the Leaf's “leading role in the global shift toward more sustainable mobility.”
Since its launch in 2010, owners of the vehicle have, in total, driven over 10 billion kilometers. Nissan added that the number of Leaf cars sold since its launch was enough to have saved 3.8 million barrels of oil annually.
The model was the bestselling electric vehicle in Europe last year, Nissan said. In the U.K., the Leaf's newest version has a recommended retail price starting at £27,995 ($36,576).

Overall, 408,000 plug-in vehicle units were sold across Europe in 2018, according to analysis from EV-Volumes. In 2017, there were more than 3 million electric and plug-in hybrid cars on the planet's roads, according to the International Energy Agency's (IEA) Global Electric Vehicles Outlook. This represents an increase of 54 percent compared to 2016.
Almost 580,000 electric cars were sold in China in 2017, according to the IEA, while around 280,000 were sold in the U.S.
While electric vehicles are becoming the car of choice for an increasing number of drivers, they nevertheless face challenges, not least when it comes to perceptions surrounding range and charging infrastructure.
According to the U.S. Department of Energy's (DOE) Alternative Fuels Data Center, electric vehicles (EVs) generally have, at present, a shorter range “per charge” than conventional vehicles with a tank of gas. Driving conditions and driving habits can influence both the efficiency and range of EVs, the DOE says.

One of the current issues for EVs is ensuring there are enough charging stations for longer journeys to be completed. At present, for the U.S. as a whole, there are just under 21,000 public, Level 2 electric vehicle charging station locations. Level 2 refers to equipment that uses a 240 volt, alternating current plug.
Efforts are being made to remedy this, however, and a number of major businesses are investing in charging infrastructure. In January, for example, Volvo Group Venture Capital, a subsidiary of the Volvo Group, invested in a company that specializes in the “high power wireless charging of electric vehicles.”

The wireless charging business, called Momentum Dynamics, is based in Pennsylvania. It is developing and commercializing “high power inductive charging for the automotive and transportation industries.”

Also on Thursday, the City of Edinburgh's Transport and Environment Committee granted approval for the installation of electric car-charging infrastructure in the Scottish capital.
The plan would see the introduction of 66 on-street charging points spread across 14 hubs, authorities said in a statement.
The City of Edinburgh Council added that rapid, fast and slow chargers would be installed around the city, with equipment set to be placed on roads instead of pavements. Installation is due to take place between January and December 2020.
“We've seen an exponential rise in the popularity of electric vehicles over the last few years, and we want to see this continue,” Lesley Macinnes, transport and environment convener, said in a statement.
“Encouraging drivers to choose environmentally friendly modes of transport over diesel or petrol cars will have a real impact on air quality so it's essential that we provide the infrastructure to allow this,” Macinnes added.

Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory

Getty Images
Tesla boss Elon Musk (L) walks with Shanghai Mayor Ying Yong during the ground-breaking ceremony for a Tesla factory in Shanghai on January 7, 2019. – Musk presided over the ground-breaking for a Shanghai factory that will allow the electric-car manufacturer to dodge the China-US tariff crossfire and sell directly to the world's biggest market for 'green' vehicles.

Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker's Gigafactory in Shanghai.

The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May.

Tesla has said that the Gigafactory will cost around $2 billion.

Producing cars locally is likely to help the company minimize the impact of the U.S.-China trade war, which has forced Tesla to adjust prices of its U.S.-made cars in China.

Keeping prices in check will also help Tesla fend off competition from a swathe of domestic electric vehicle startups such as Nio Inc, Byton and XPeng Motors.

TSLA

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Tesla doesn’t know where it will build the Model Y as it rolls out more layoffs and cost cuts

Mike Blake | Reuters
Elon Musk

Tesla executives still have not decided where to manufacture the company's forthcoming crossover SUV, the Model Y, according to six current and former employees. This despite the fact the company is planning to formally unveil the vehicle for the first time on March 14 at the company's design center in Hawthorne, California.

Two other people who work for Tesla vendors said the automaker did not contact them about working together on Model Y production until after CEO Elon Musk teased the unveiling in a tweet on March 3. That's one indication Tesla has barely begun planning for Model Y manufacturing, they said.

Musk has already said the Model Y should cost about 10 percent more than the Model 3, which starts at $35,000.

Along with a pickup truck that Tesla plans to unveil later this year, the Model Y could ensure that Tesla's lineup stays competitive versus offerings from other electric truck and SUV makers. Those rivals include Rivian, a newcomer funded by Amazon, and established automakers like BMW and Hyundai, who are honing in on Tesla's territory with electric cars.

Employees say Tesla executives, including its president of automotive, Jerome Guillen, are wavering between two options for Model Y production. They are trying to decide whether Tesla should allocate space in the Gigafactory, the company's massive battery plant outside of Reno, Nevada, or combine the Model S and Model X body lines at its car plant in Fremont, California, to make room to build the crossover SUVs.

One employee said if executives have made a decision, they haven't given a green light to employees who will be involved in setting up the Model Y lines and eventually building the vehicles.

A Tesla spokesperson pointed to a February letter to shareholders, but declined to offer an update on Model Y planning. The letter said, “This year we will start tooling for Model Y to achieve volume production by the end of 2020, most likely at Gigafactory 1.”

Tesla video teases unnamed vehicle under a sheet, and new Roadster accelerating
2 Hours Ago | 00:51

Why the Model Y

According to forecasts from LMC Automotive, SUVs are expected to comprise 50 percent of all car sales in the U.S. by 2020, up from about one-third in 2013. The Model Y could help Tesla tap into that wave of demand and gather up customer's reservation payments meanwhile before production begins.

In its fourth-quarter update, Tesla said that the Model Y should share about 75 percent of its components with the Model 3. Car companies typically share parts between models to save on development and production costs. Tesla has never made cars with that many parts in common before, but it intended to. Its Model S and Model X wound up sharing less than one-third of their parts, Musk told analysts on the fourth-quarter earnings call Jan. 30.

Current and former employees say that setting up a Model Y line at the Gigafactory may require buy-in from Panasonic, Tesla's battery cell supplier and a major partner in the Gigafactory.

A Tesla proponent at Panasonic, Yoshio Ito, the Japanese company's executive vice president of automotive, recently resigned, the company disclosed at the end of February. When Tesla and Panasonic established their Gigafactory partnership in 2014, their agreement said the two companies would have to mutually agree on how to manage “the land, building and utilities” at the facility.

Panasonic did not reply to requests for comment.

Employees noted the Gigafactory is constantly under construction, and not currently set up to handle things like body stamping, glass and seat installation, painting of cars and end-of-line quality control for assembled vehicles. Parts of the Gigafactory are cramped already, they added, so it's hard for them to imagine how Tesla can make room for increased battery production, material flow and workers needed to make the Model Y there in high volumes.

Salwan Georges | The Washington Post | Getty Images
A rear view of Tesla's new Model 3 car on display on Friday, January 26, 2018, at the Tesla store in Washington, D.C.

Deep cuts

At the same time, Tesla is in the midst of extreme cost-cutting measuresin its quest to become profitable, and to make its electric vehicles mainstream.

Last week, the company announced it would move all vehicle sales online and close most of its retail stores, letting go of thousands of employees in the process. The ongoing workforce reduction follows a 9 percent layoff Tesla implemented in January 2019, and an earlier 9 percent layoff in June 2018.

Some Tesla stores will convert into galleries where customers can get information about its cars and maybe buy Tesla-branded merchandise the company said in a blog post Feb. 28.

One sales employee said Tesla has left workers in the dark about whether or not their stores are closing, and whether or not they will have a job when the transition to online sales is finished.

On Tesla's website, the company listed 129 stores and galleries as of March 1. On March 6, the website listed 106 stores and galleries. Current and former Tesla employees said head count fell about 8 percent within the last week, basing their estimates on internal data.

A Tesla spokesperson said that as of the week of March 4, the company employed more than 40,000 people. In its 2018 annual report, Tesla said it had 48,817 employees. Subtracting an estimated 9 percent for January's layoffs brings that total down to 44,423 and subtracting another 8 percent — following Tesla's move to close most stores — would put Tesla's head count around 40,869 today.

An inside look at Tesla's Gigafactory
10:27 AM ET Thu, 15 Nov 2018 | 03:31

Machine that builds the machine

Meanwhile, Tesla management has asked employees to limit their travel and work remotely whenever possible, as one of many ways to save costs.

In a recent e-mail that Musk sent to Tesla employees the CEO warned of more belt-tightening to come. He wrote:

“In the coming weeks, we will be evaluating all areas of our sales and marketing organization to understand where there are operational efficiencies, and how best to support the transition to online sales, while also continuing to deliver a truly awesome and educational Tesla buying experience.”

In Fremont, small items like rivets and fasteners have been in limited supply recently, when there used to be a surplus on-site, one employee said.

At the Gigafactory, management has sent hourly workers home mid-shift or asked them to take personal time off or volunteer for unpaid time off in recent weeks, leaving some with less income than they planned to earn. These people said that some Gigafactory shifts were canceled due to snow-related closures on Donner Pass, a highway Tesla relies on for consistent flow of supplies to and from the Gigafactory.

Workers at the Gigafactory also said that while the company's semi-automated battery production lines have improved by leaps and bounds in the past year, Tesla is still not consistently making 7,000 vehicle batteries a week there. Workers said they are striving to hit an 8,000 per week goal, which should allow Tesla to make 416,000 cars in a year.

Tesla gave guidance in its fourth-quarter earnings update that it was aiming to deliver 360,000 to 400,000 vehicles in 2019, about 45 percent to 65 percent more than its deliveries last year. More recently, Musk reiterated in a series of controversial tweets that Tesla should hit an “annualized production rate” of around 10,000 cars per week by the end of 2019, and still expected to deliver about 400,000 cars this year.

In 2016, Musk said: “What really matters is the machine that builds the machine — the factory. And that is at least two orders of magnitude harder than the vehicle itself.”

That level of operational excellence remains a work-in-progress at Tesla.

— CNBC's
Salvador Rodriguez
contributed to this report.

Tesla finally launched its standard Model 3 starting at $35,000 — Here's what it means for investors
12:21 PM ET Fri, 1 March 2019 | 02:03

Connectivity and digitization driving change in car industry, CEO of Samsung’s Harman says

Auto sector having an awakening with digitalization, Harman CEO says
22 Hours Ago | 02:35

Personalization, digitization, user experience and live connectivity in cars are driving change in the industry, according to the CEO of Samsung's American subsidiary Harman.
“Cars used to be where we spent a lot of time, and very private time,” Dinesh Paliwal told CNBC's Annette Weisbach at the Geneva Motor Show on Wednesday.
People felt disconnected in their cars through not having the “same ecosystem” as the one outside their vehicle, Paliwal said.
Today's cars boast a broad range of technological features, from Bluetooth and automated parking to digital assistants and inbuilt satellite navigation systems.
Earlier this week, for example, the Hyundai Motor Group announced it had developed a digital key that enables drivers to unlock, start and drive their car using a smartphone.

According to Paliwal, there had been a “major awakening” in the industry. “They're saying, 'this is an existential issue, we need to keep up and catch up the digitization and personalization in the car'.”
This was fueling a whole new discussion, he explained. “It's not about brakes, it's not about the new lights, it's not about… new luxury, it's about new digital ecosystems.”
Harman specialises in the design and engineering of connected technology. The business was acquired by Samsung Electronics for $8 billion in 2018.

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Grab is now valued at $14 billion after landing $1.46 billion from SoftBank’s Vision Fund

Brent Lewin | Bloomberg | Getty Images
The Grab logo is displayed on a taxi in Bangkok, Thailand, on Friday, March 9, 2018.

Southeast Asian ride-hailing giant Grab said Wednesday it has secured $1.46 billion in new funds from the SoftBank Vision Fund.

In its current funding round, Grab has raised more than $4.5 billion with investments from car makers Toyota and Hyundai Motor, tech giant Microsoft, China's Ping An Capital and U.S.-based asset management company OppenheimerFunds.

Following the fresh financing from the Vision Fund, Grab's valuation now stands at $14 billion, according to a source familiar with the matter.

Grab President Ming Maa said in a statement the company has seen “overwhelming shareholder support in our current fundraising round, with strong interest both in terms of capital invested and the quality of strategic partners.”

He added Grab continues to “receive new investor interest” and that it looks forward to “welcoming more global industry leaders as partners in 2019.”

The current funding round started after U.S. ride sharing giant Uber sold its Southeast Asia business to Grab and acquired a 27.5 percent stake in the business, according to Reuters.

Grab said it plans to use the funds to build more everyday services onto its platform and expand its presence in financial services, food delivery, parcel delivery, content and digital payments.

“This investment will help the company explore exciting new opportunities across on-demand mobility, delivery and financial services as it continues to grow its offline-to-online platform across Southeast Asia,” David Thevenon, partner at SoftBank Investment Advisers, said in a statement.

While Grab started out with ride-hailing, the start-up has over time introduced many services including food and grocery delivery, mobile payment, and micro-lending to the unbanked or underbanked in Southeast Asia. Earlier this year, the company said it struck a partnership with regional video streaming start-up Hooq that will allow users to stream movies and TV shows on the Grab app.

The idea of bundling multiple services inside a single app stems from the fact that users tend to use only a handful of applications everyday, even if they might have hundreds of apps downloaded onto their smartphones.

Last year, Grab said it was forming a joint venture company with Chinese health care services platform Ping An Good Doctor to provide integrated medical services including artificial intelligence-assisted online consultations, appointment bookings and medicine delivery.

Volvo’s first driverless electric bus begins trial in Singapore

Autonomous vehicles can transform public transport: Volvo Bus
18 Hours Ago | 03:06

Sweden's Volvo Buses began trial services for its first full-sized driverless electric bus in Singapore on Tuesday, in what its president has dubbed “the world's first.”

Speaking to CNBC's “Squawk Box,” Hakan Agnevall, the president of Volvo Buses, said the vehicle is the “first full-sized, autonomous electric bus in the world.”

The 12-meter long Volvo 7900 electric bus is jointly developed by the Swedish automobile firm, together with Singapore's Nanyang Technological University (NTU), whose researchers will oversee the artificial intelligence developments of the vehicle.

“We really think that autonomous (vehicles) can really transform public transport,” Agnevall told CNBC on Tuesday. “It's about safety, it's about operational efficiency, and it's also about creating new opportunities for urban planning.”

The zero-emissionsvehicle will require 80 percent less energy than its diesel powered counterparts. Other features include light detectors, 3D picture-taking and a location accuracy of up to one-centimeter using an advanced navigation system.

Ore Huiying | Bloomberg | Getty Images
A Volvo AB 7300 electric autonomous passenger bus sits at a charging station at the Centre of Excellence for Testing & Research of Autonomous Vehicles (CETRAN) of Nanyang Technology University in Singapore, on Tuesday, March 5, 2019.

About four million people in Asia die each year due to air pollution, according to a United Nations report in October, which said that air pollution is a health risk for 4 billion people in Asia.

With air quality being a key concern amongst many world leaders, Agnevall said that the usage of electric vehicles will help address this problem.

“I would say that electric vehicles in general are environmentally friendly … because of energy efficiency,” he said. “With electric vehicles, you are addressing air quality right here, right now, in the city.”

The autonomous vehicle will be tested within the campus of NTU, which is modeled after real road conditions in Singapore.

Agnevall said the timeline for rolling out the technology will be “a staggered approach and it would take some years.”

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Bugatti unveils the most expensive new car ever built

Bugatti just unveiled the most expensive new car ever built
7 Hours Ago | 01:01

Bugatti, the French sports car brand that is now owned by German automaker Volkswagen, has revealed the most expensive new car ever built.

With a sale price of 16.7 million euros ($19 million), the Bugatti La Voiture Noire was publicly debuted Tuesday at the Geneva International Motor Show in Switzerland.

Only one example of the model has been built and was developed to mark Bugatti’s 110th anniversary.

The company said the six-tailpipe “hypercar” represents the pinnacle of Bugatti’s production line. The 8-liter engine has 16 cylinders and 1500 brake horse power.

The new owner hasn’t been revealed but several industry reports suggest that former Volkswagen Group chairman Ferdinand Piech has added it to his collection of high-end cars.

Bugatti says the car is “more than a modern interpretation” of Jean Bugatti’s Type 57 SC Atlantic, of which only four were ever made.

Michael Cole | Corbis Sport | Getty Images
1938 Bugatti Type 57SC Atlantic

Fiat Chrysler outlines big plans for electric Jeeps and Ram pickup trucks

Source: Jeep
2018 Jeep Cherokee Trackhawk

Fiat Chrysler plans a major ramp-up of production for its two best-selling brands, Jeep and Ram, by adding a new assembly plant in Detroit as part of a $4.5 billion investment program announced last week.

The automaker also announced its most significant commitment yet to adding electric vehicles to its lineup, starting with at least four new Jeep plug-in hybrids. That's a significant move for the automaker. Former CEO Sergio Marchionne was so skeptical of battery powertrain technology that he once asked potential customers not to buy its first all-electric model, the Fiat 500e, because the company expected to lose more than $10,000 on every vehicle it sold.

The likelihood is that it will be difficult to make money, even with the new electric models Fiat Chrysler is planning. Between regulators and the competition, the company has no choice, industry analysts say. The challenge will be to come up with battery-based models that can turn on consumers even when gas is cheap.

America is falling back in love with trucks and SUVs, and that's causing big changes at big car companies
10:38 AM ET Tue, 5 Feb 2019 | 04:45

New opportunities

As part of last week's announcement, Fiat Chrysler CEO Mike Manley said the investments will allow the carmaker to pursue new opportunities, “including at least four plug-in hybrid vehicles and the flexibility to produce fully battery-electric vehicles.”

That part of the announcement wasn't entirely unexpected. While the late Marchionne, Manley's predecessor, was clearly a battery-car skeptic, he had come to accept that Fiat Chrysler would have to follow the lead of its competitors — as well as the push from regulators for more energy efficient cars, especially in key markets like the U.S., Europe and China. During the company's investor day event last June, Marchionne revealed plans for a number of new battery-based models. These include high-end “halo” vehicles such as the planned Alfa Romeo 8C, a plug-in hybrid supercar.

Future Jeeps

But the new announcement “gives more clarity to what they've previously said,” according to Sam Abuelsamid, a senior analyst with research firm Navigant.

For one thing, Manley is making it clear that Fiat Chrysler will design future products to use a broad range of powertrains, from gas and diesel engines to mild, “conventional” and plug-in hybrids, as well as pure battery-electric drivetrains.

“Basically, every (future) Jeep they build will have a plug-in hybrid option,” said Abuelsamid, “and they're designing them to accommodate full electric, as well.”

Marchionne's attention last year seemed focused on China, now the world's largest market for plug-based vehicles. Driving that surge is the so-called new energy vehicle rule enacted in late 2017. It provides significant incentives to manufacturers and consumers to build and buy plug models.

Opportunities in US

But last week's news suggests that Fiat Chrysler is now starting to see more opportunities in the U.S., as well as other markets. If nothing else, said Abuelsamid, it has recognized that the competition will be driving the push to electrify as much as regulators.

Ford, for example, revealed plans in January to build an all-electric version of its F-150, the best-selling competitor to Fiat Chrysler's Ram 1500. And General Motors is considering all-electric versions of its Chevrolet Silverado and GMC Sierra pickups. A number of mainstream competitors are also working up plug-in hybrid and all-electric SUVs.

At the high end, meanwhile, BMW has developed a new “architecture,” or platform, that will underpin virtually all future models, including sedans, coupes and SUVs that can accommodate all possible types of engines.

“As they move Jeep up-market, in order to stay competitive in that segment, they need, at the least, plug-in hybrids and there's increasing likelihood they'll need battery-electric versions, too,” said Abuelsamid.

Mild hybrids

The challenge will be to come up with battery drive systems that can appeal to Jeep and Ram buyers, some of the market's most traditional customers. But both of those Fiat Chrysler brands have shown it can be done, said Stephanie Brinley, principle auto analyst with IHS Markit, with the latest versions of the Jeep Wrangler and Ram 1500.

They are offered with optional “mild” hybrid drivetrains using small battery-electric assist technology to not only improve fuel economy but also to boost performance and enhance on- and off-road driving capabilities.

With future models, “They could come to market with products that are differentiated from what (other) companies are offering by enhancing the capabilities” of Jeep and Ram models.

The Asahi Shimbun | Getty Images
2019 Ram 1500 pickup truck of the Fiat Chrysler Automobiles (FCA) is displayed at the North American International Auto Show (NAIAS) on January 15, 2018 in Detroit, Michigan.

Turning profits

Perhaps the bigger challenge, however, will be finding a way to turn a profit on future electrified models. While Tesla managed to claw into the black during the last half of 2018, CEO Elon Musk warned of a probable loss during the first quarter and automakers have traditionally gone into the red — often, deeply into the red — with their battery-based models.

The equation has been improving, Manley said, as battery costs tumble. Even so, he cautioned that Fiat Chrysler expects it can recover only 60 percent of the incremental cost for electrified powertrain technology. Buyers simply aren't willing to pay a premium.

That's why the automaker is expected to continue playing things cautiously as it decides just how fast to roll out the new electrified powertrain options it is developing.

Big Tesla backer doesn’t oppose a Musk ouster: ‘I don’t think he needs to be CEO’

Mike Blake | Reuters
SpaceX founder Elon Musk looks on at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, March 2, 2019.

A major Tesla backer doesn't fear an SEC-inspired ouster of CEO Elon Musk, according to a new report by Barron's.

“We wouldn't be against him having a different role,” James Anderson, head of global equities for Baillie Gifford, told Barron's. “I don't think he needs to be CEO.”

Baillie Gifford is the second-largest stakeholder in Tesla behind Musk. The U.K.-based investment firm owns 7.7 percent of the company — or roughly $3.8 billion worth — according to FactSet. Musk owns 19.7 percent, while the third-largest investor, T. Rowe Price, owns 5.2 percent.

Musk is facing contempt of court allegations after he tweeted what the SEC claims was “inaccurate” information about Tesla's production outlook. Tesla admitted to the SEC that Musk had not received approval to tweet the information, which is required by a settlement agreement struck between the agency and Tesla last fall.

Tesla has long touted the importance of keeping Musk in the top spot, saying in annual SEC filings that Tesla is “highly dependent on the services of Elon Musk, our Chief Executive Officer and largest stockholder.”

Anderson agreed that Musk is essential to Tesla, but suggested a less formal role to Barron's like “chief ideologue.”

In December, Baillie Gifford contributed to a $500 million fundraising round in Musk's rocket company, SpaceX, according to the Wall Street Journal.

Read more at Barron's.

WATCH:
Tesla finally launched its standard Model 3 starting at $35,000 — Here's what it means for investors

Tesla finally launched its standard Model 3 starting at $35,000 — Here's what it means for investors
12:21 PM ET Fri, 1 March 2019 | 02:03

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