BMW’s Version of Scare Tactics is Elon Musk

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Published on November 5th, 2019 |

by Johnna Crider

BMW’s Version of Scare Tactics is Elon Musk

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November 5th, 2019 by Johnna Crider

BMW’s version of scare tactics for its employees is Elon Musk, and I am cracking up laughing over this article, which turns out to be from 2017, by Financial Review. When I first read it, I thought it was a post-Halloween joke or something, but alas, BMW is pretty serious about putting the fear of Musk into the hearts of its workers.

As noted above, the article is a couple of years old, and like most older articles, it provides some insight as to Tesla’s role in the industry and how it has evolved. In this case, let us hope that BMW has discovered other ways to inspire their employees. The article opens up with a very descriptive scene: a bright auditorium, an abandoned airfield somewhere in Germany with rows of men and women staring at a giant screen.

As an image of Elon Musk passes by, the speaker says, “We’re in the midst of an electric assault. This must be taken very seriously.” One would think we are at war. You have the hidden bunker, the army of men and women being prepared by their leader, who is giving them some type of speech. I almost wanted to get up and yell some type of battle cry when I read the first few lines of that article.

All jokes aside, one has to consider the fact that, well, in 2017 at least, BMW was using fear to scare its employees to do a better job — seriously. (Disclosure: we don’t have direct confirmation of this.)

Why Perceive Tesla & Electric Vehicles As A Threat?
Well, because they are, and this is why these scare tactics are being used. Tesla represents a new age, the dying of the old and the birth of new, more technologically advanced modes of transportation. The kicker is that Tesla isn’t even trying to steal customers, but is simply trying to advance us to a better way of using energy. The reason many auto companies can’t compete with Tesla is that Tesla isn’t even playing the same game as they are.

Tesla reinvented the game. In order to play, you have to know the rules. What are the rules? Well, what does the average Tesla owner want in comparison to the average BMW owner want? What do the average Tesla owner and the average BMW owner have in common? Therein lies a kernel of information.

Remember, Tesla isn’t just about cars. Let’s look at a tree, for example. It wasn’t always a tree. It started out as a seed. The tree grew roots and eventually rose from the depths of the earth to reach out and touch the sky. It touches the sky with its branches — leaves and flowers. It bears fruit.

Tesla is this tree. It started as a car company and grew into something else. It has vehicles, but also provides solutions for home electricity. Each product of Tesla is like the parts of the tree. The Roadster is the seed that sprouted roots. All the other car companies are just blades of grass surrounding the giant oak tree that looms over them. They can not compete because they are an entirely different species of plants.

How To Beat Tesla’s At Its Game
First, you need to understand that for Tesla, it’s not an actual game. It’s a mission, a way of life, and a reinvention of the way things are done. To succeed at this “game,” you need to understand the rules.

Rule number one: Recognize that change is inevitable.

Rule number two: Automakers need to realize it’s not about them, and let that ego go. Tesla isn’t out to destroy you. Tesla’s out to help you better yourself. See what you can do better, and do it.

Rule number three: Don’t forget the first two rules. Now go and evolve. Instead of using scare tactics and fear, learn the ways of your “enemy” and grow as a company.
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Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

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J.B. Straubel Meets With Tesla Owners In China

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Published on November 5th, 2019 |

by Johnna Crider

J.B. Straubel Meets With Tesla Owners In China

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November 5th, 2019 by Johnna Crider

In July, CNBC reported that J.B. Straubel was leaving the executive ranks of Tesla, and many seemed to think that meant he quit Tesla completely. The truth is, though, he is still at Tesla and recently met with the Tesla Owners Club of China.

Sometimes, we need to focus on ourselves a bit more and not our work. We need to unplug and refocus on what we want to do with a new phase of our lives. We can get so caught up in our work lives that time passes us by and makes us neglect other things. We don’t really know why J.B. left his role as CTO, but we do know he hasn’t left Tesla completely. Critical to Tesla’s founding, growth, and development, he will always be a part of Tesla.

J.B. has not only remained in the position of senior advisor for Tesla, but Eva Fox at Tesmanian also points out that his role at Tesla can’t be understated. He was a huge part of the innovation of the last 15 years at Tesla, especially when it comes to batteries.

When J.B. left, Tesla’s stock price tumbled and many short sellers celebrated. They just knew Tesla was about to file those Chapter 11 papers. In reality, change is just inevitable, and sometimes people move on to other things.

Tesla has seen so much progress in Shanghai, setting the stage for a fast-paced jump into the production of “Made in China” Model 3s, and the current milestone warranted a celebration with Mr. J.B.

Grace Tao, VP of Tesla Global, said while at the 2019 Shanghai City Promotion Conference that Tesla is estimated to make 3,000 Model 3 vehicles per week. If you do the math, this would equate to around 159,000 Made in China Model 3s. Divide that by the 4 quarters of the year and that’s almost 40,000 vehicles per quarter — from China alone.

I may not be that great at math (come at me with some trig and I’ll run and hide), but I can see that Tesla’s leadership in China has already become a monumental leap for Tesla. I still find it amazing that Tesla, despite a US-China trade war, was given the green light to have its very own factory there — which is a first for any foreign company.

This shows just how much China values Elon Musk, Tesla, and the value of electric vehicles and energy storage. China knows what the future is and sees Tesla as the leader in industries that will affect its future. While American stock analysts squabble about whether to short the stock, we have China believing in Tesla and supporting it. America needs to step up and stop allowing misinformation and distractions to come first.

Instead of focusing on what Tesla is doing for both the auto and energy industry of America, Wall Street seems like that flaky friend who only shows up to your party if there are drinks and food but otherwise would trash you behind your back. Or to your face, even. They are there for the entertainment, but you can’t count on them to have your back.

I believe we can do better. Tesla has created an atmosphere for those who love to create, in fields of cutting-edge technology. J.B. Straubel was a core creator at Tesla for many years, but the company has thousands of other creators as well and I’m sure J.B. will advise as needed and enjoy the further evolution of the company as it ramps up Gigafactory 3, Gigafactory 4, Gigafactory 5, Gigafactory 6 … and so on.

Featured image courtesy Tesla
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A Message To The Tesla Community

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Published on November 4th, 2019 |

by Johnna Crider

A Message To The Tesla Community

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November 4th, 2019 by Johnna Crider

I saw a thread on Twitter with a message to the Tesla community that I think needs to be taken to the next level. It’s a thread from Bonnie Norman, a Tesla shareholder and Tesla owner. Bonnie is reminding us that our actions matter, too. Every tweet, every action, every interaction we have online — it matters.

Many members of the Tesla community were a bit sad when Elon Musk went offline a few days ago. We actually don’t know if he plans to come back — maybe he just needed a break. Breaks are actually a good thing, especially if you are Elon Musk and are dealing with so much hate and negativity aimed your way for simply being you and helping the world.

Seeing a platform such as Twitter take sides with people who hate you is something one can not simply overlook. This is exactly what happened when Twitter permanently banned Omar Qazi from its platform after Qazi and “TSLAQ” had a few Twitter run-ins.

“TSLAQ” means “Tesla bankrupt.” The Q symbol in stock lingo means that whatever company it follows is bankrupt. Yes, we have a cult of people advocating for Tesla to go bankrupt and fail. This cult is basically allowed free reign on Twitter despite much abusive, rude, and potentially illegal conduct. This is wrong, unfair, cruel — but what is Twitter, and what is its purpose?

Let me remind you that Twitter is a tool. Twitter, like other social media platforms, is a tool. It’s a communication tool through which a company can communicate with its following, where a random person can share a meme with their favorite celebrity — someone they may never get to actually meet, but can still connect with. Twitter connects us with one another.

We can use this tool to encourage, inspire and uplift one another.

Bonnie’s Message To The Tesla Community
“Be patient w me here, this is a ‘mom thread’ … Lots of people who support Elon are justifiably *not happy* over constant attacks. Lots of tweets about haters. But w a lot of these tweets, changing just a few words to make it a TSLAQ tweet, it would be equally full of hate.

“Asking that in your zeal (shared w me) to stop the fud, to stop the character assassinations, to just stop the outright hate … that YOU, ME make sure we’re not just as guilty of the same thing.

“If you hate someone just because they’re TSLAQ, you may be missing out on good discourse. You dislike a journalist? Look at how you talk to them. Are you an example of ‘not much good on twitter’?

“Would you behave differently if you were tweeting under your name, if family & co-workers could read your tweets? If you’re in the camp of ‘everyone else needs to stop but I can say what I want because I’m RIGHT’, I’ve got a mirror to loan you. 🙂

“Just think about it. What you say & do reflects on the company you say you love. (I’m not expecting some huge change here — but hoping that maybe a couple of people will rethink.)

“Hating on haters isn’t going to bring about change.”

View Bonnie’s entire thread here.

My Thoughts

We are an international group of people with various backgrounds and reasons for supporting Tesla, but Bonnie is right. As a community, we are an extension of the company. Even if you are a random person in Louisiana (or wherever) who sometimes tweets about gems, minerals, and her new kitten with eyes the color of spectrolite named Tesla, your voice matters regardless of the message.

If you are a fan, supporter, shareholder, or owner of Tesla, then you are a part of the community and you represent Tesla. I agree with Bonnie wholeheartedly on this, and no, I am not perfect. I may have said some things while emotional. We all make mistakes, which are proof that we are trying. To be fair, I have been known to “pop off at the mouth” a time or two, especially on Twitter. Personally, I am trying to work on that.

What has been done to Elon Musk is wrong, but it will not stop just because we want it to. This isn’t the way the world works. Instead of leaving Twitter or hating those who mock and bully Elon, we can continue to build each other up. Twitter can be a huge distraction if you let it, but let us continue to connect with each other and build one another up.

“Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed, it is the only thing that ever has.” ―Margaret Mead

Let’s zoom out and fully look at ourselves and determine how we can improve and become better people. Sure, we like to believe we are good people, but we are humans and sometimes our emotions do get the better of us. Try not to hate your enemies, because, in the end, you will end up just like them. Remember, we need to be mindful of our own emotional and mental wellbeing. The best way to do this is to not be like those who spread hate and injustice, who bully others.
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Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

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Tesla Bulls Warned Tesla Shorts — 5 Key Warnings

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Published on November 4th, 2019 |

by Zachary Shahan

Tesla Bulls Warned Tesla Shorts — 5 Key Warnings

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November 4th, 2019 by Zachary Shahan

As you may have seen, Tesla recently showed another quarterly profit, which apparently shocked the market enough that the Tesla [TSLA] stock price shot up. I don’t follow the stock closely, but I am a shareholder and find the whole “Tesla bull vs Tesla short” debate quite fascinating. I’ve had several thoughts on the stock and these different investment communities in the past week, but the one that shot to the front most quickly and strongly was simple: TSLA bulls warned the TSLA shorts.

I started thinking about what exactly that means, how we Tesla bulls warned Tesla shorts. I realized that it’s been extensive — not just one point or another, but a consistent debunking of their concerns and pessimistic claims. It’s not been just one warning, but many different warnings packaged together on a daily basis. The combined takeaway warning was just that, yes, Tesla can make money. It’s not going bankrupt. Stop betting it’s going to crash before you get burned. But, on a more nuanced level, there are several key factors at play that explain why exactly the company can make money and what Tesla short sellers seem to consistently get wrong about Tesla. As I started thinking about this, I figured it deserved a full article. Perhaps this once will help keep more skeptics from getting burned next time Tesla shows a quarterly profit.

1. Tesla is obsessed with improving efficiency. This may be hard to understand or believe, and is sometimes hard to see since Tesla is growing so fast and keeps taking on new challenges in the midst of that rapid growth, but Tesla is obsessed with improving efficiency. I wrote about this at length recently, so I’m not going to repeat that performance. Just read about it here: “Capital Efficiency (Tesla’s Obsession).”

2. Tesla whoops the competition, literally (not really) and objectively. I can’t tell how much Tesla short sellers understand this (and pretend not to) versus somehow never digesting it. Sure, you may wonder if Tesla currently has demand for 60,000 Model 3’s a quarter versus 100,000 a quarter, but anyone who follows the company somewhat closely has to know that the Model 3 has received rave reviews all across the auto industry — like, all across the industry — and pretty much everyone who drives a Model 3 finds it to be amazing. On acceleration, infotainment, autonomous driving, safety, design, and more the Model 3 is a new world wonder in the auto industry. It obliterates the competition in the midsize luxury car class because it’s that much better. It can also compete with the Toyota Camry and Honda Accord on total cost of ownership for many buyers. Tesla owners and fans have explained the cars advantages millions of times in countless ways, yet short sellers often insist that the Model 3 is actually a crappy car. Sorry, but unbiased humans do not agree, not at all, and if you don’t see why, at least try to pay attention to the stats and objective reviews.

3. Word of mouth is a thing. The biggest question mark to me has been how fast word of mouth (and exposure to the car in more tangential ways) would spread and lead to sales. In the long term, the Model 3 must pull in buyers, but I wondered how many it could reach in 2019. Nonetheless, anecdotal experiences, Elon Musk’s comments about new orders and vehicle demand, and various articles on CleanTechnica about ways Tesla could stimulate more demand if production looked like it would outpace orders should have given short sellers the sense that demand has been rolling strong. Instead, short sellers have been insistent that Tesla reached a demand cliff, that almost no one would want a Model 3 after initial fanboys and fangirls got their cars, and that word-of-mouth sales would be very limited.

There’s even been hype about Tesla hiding cars, having more inventory than people think, and not having any more customers in [insert location] because registrations dropped for a week or so. Tesla bulls have argued: many more people discover every day that the Model 3 is truly awesome. This will continue to be the case as more people receive the car and share it with friends, family, coworkers, and neighbors. It seems Tesla short sellers will just keep assuming that demand has finally dried up and sales are about to fall off a cliff. That’s certainly been the case in the past several quarters.

4. Elon Musk is a business genius. Probably the most common assumptions among Tesla short sellers are that Elon Musk is a fraud who doesn’t really know how to run a legitimate business, Elon is actually an idiot who can’t execute, and Elon is constantly on the verge of taking Tesla off a cliff. I don’t really understand where these assumptions come from. I don’t understand how you can listen to or watch Elon and come to such conclusions, let alone follow his companies’ progress over the past couple of decades and think that stuff. Elon has a practically unmatched track record of business success in multiple industries. I actually can’t think of someone who has proven himself a more adept and qualified business leader. Billionaires like Ron Baron and Larry Ellison say the same thing, yet short sellers assume or at least try to convince others that the opposite is the case. We Tesla longs try to explain why Baron and Ellison back Elon, but the critics call us brainless fanboys instead of being receptive to the points made.

5. Tesla has been making money on its vehicles. Some people claim that Tesla can’t produce a Tesla Model 3 for the price it sells the car for. In other words, they say the whole business is a Ponzi scheme, a fraud, a multi-year accounting trick. Supporters have explained that Tesla makes a solid gross margin on its vehicles and could be easily profitable if it focused on that instead of rapid growth. Some critics have claimed that Tesla will simply lose more money if it sells more cars, and no matter how much we’ve tried to correct the record and point out actual gross margins, logical cash flow forecasts, and the fact that Tesla can in fact produce cars for less than the company sells them for, the short sellers have ignored us and yelled, “Bankwupt! Any day now!”

Those are matters mostly focused on financials and quarter-to-quarter topics. They should be enough to warn short sellers that it’s dangerous to play with the stock and bet on the company’s valuation going to $0. However, the even bigger matters for Tesla longs are … long-term matters. Word of mouth can grow exponentially. Tesla could crack the nut on self-driving cars years before the competition. Tesla appears to have a massive lead on battery technology and production. The fruits of Tesla’s efficiency obsession will come in future years. Tesla’s software advantage may be its top advantage. Electric vehicles get more and more competitive with gasoline vehicles by the day and will be disruptive tech in time, and Tesla is far and away the brand leader and tech leader in this disruptive EV space. Oh yeah, and then there’s solar and energy storage. Also, you think there’s a rabid Tesla fan base now? You ain’t seen nothing yet. Look at what kids and young adults think of Tesla and Elon Musk!

I don’t know how many short sellers are serious when they claim Tesla is “going to $0.” I honestly have no idea when one of them really believes that or just says it in order to try to drive the price down temporarily and make a quick buck. I have no idea how many of them are hired trolls, hired by an oil company, an auto dealer association, another automaker, a biased investor, or some other vested interest in order to drive down demand for Teslas and/or Tesla’s share price. I can somewhat understand a short seller who thinks they have an opportunity in a challenging transition phase to make money betting against the company. However, I have a very hard time understanding short sellers who think the company is doomed in the long term, who don’t see those various Tesla advantages noted above. Though, one thing is clear: Tesla bulls don’t spend their days and nights trying to trick short sellers into believing the company is about to crash, so that they can make money on the company when it succeeds. Nope, we don’t try to play dirty and manipulate people into shorting the company and losing money on it when the stock price goes up. What we’ve tried to do is explain to others why it is Tesla has been seeing such strong growth, why it is expected (by us) to keep growing strong, and why it is the last company someone should bet against in the long term. We have tried to tell the story as we see it. So, when those expectations become reality and short sellers get burned, it’s hard to have sympathy for them. It’s hard to have sympathy for people who have consistently blocked out our arguments and tried to scream “fraud” or “idiot” or “stupid fanboy” in response.

The funny/sad thing is, I’m here again making the case for why I think Tesla is a solid long-term investment, yet critics will see it as delusional and keep betting against Tesla. As LeVar Burton of Reading Rainbow would say, “But don’t take my word for it!”

Disclosure: This is not investment advice. I don’t provide investment advice. If you are considering an investment move, please consult an investment professional, or at least a magic 8 ball.

If you’d like to buy a Tesla and get some free Supercharging miles, feel free to use our referral code: https://ts.la/zachary63404. Or not. You can also get a $100 discount on Tesla solar with that code.

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Tesla Autopilot Sees A Person In All Black Crossing At Night (Video)

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Published on November 3rd, 2019 |

by Johnna Crider

Tesla Autopilot Sees A Person In All Black Crossing At Night (Video)

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November 3rd, 2019 by Johnna Crider

Autopilot sees something different in the moving shadows, something that the naked eye of a human barely catches in the early hours of the morning or late at night. It is dark and rainy, conditions that can create low visibility. What may actually be a person jaywalking could be seen as a moving shadow by the naked eye of a sluggish driver.

This time, even though it wasn’t actively engaged, both the driver, Green, and Autopilot saw the jaywalker, who was wearing dark clothing and no reflective gear. He just seemingly appears from the clutches of the shadows like a haunted humanoid shape that one would see in a ghost-chasing documentary.

The guy also crouches in front of the car instead of moving away fast as a normal person would do. What normal person would be out at 4:00 am dancing in the streets while it’s raining? One never truly understands the mind of another person, so your guess is as good as mine. Fortunately, for this crouching shadow, the car was a Tesla and the eyes that saw him were both the driver’s and Autopilot’s. Also, note that Autopilot was not actively engaged, even though its cameras were clearly seeing everything and the emergency response mechanisms kicked in.

You may remember “Green The Only” from a YouTube video showing Paris streets from the perspective of Tesla’s Autopilot. Here’s his latest video:

In this Twitter post, Green posed a very important question: Why do people just walk around like this at 4:00 in the morning? They wear all black and just walk out in front of you with seemingly no regard for their own lives. When I lived in Atlanta, this was a very common occurrence. The nightlife was active there (probably still is) and there is also a visible homeless problem. I would be out at 4:00 am because sometimes I had to work at that time. One of the restaurants I worked at closed at 3:00 am on the weekends, so I would often see the late-night zombie-like waltzes.

Quite a few of the late-night walkers were homeless men and women who, with nowhere to go, would often prowl the streets at night. They would walk in the streets as if they were actual cars. I am sure that Atlanta isn’t the only city with this issue.

For the sake of such lives, and the lives of the drivers, the fact that Autopilot can see what a tired driver at night cannot is indeed a good thing. In another tweet, Green explained that he rarely engages Autopilot in these driving conditions, but would have if he had known these guys would have been there, just to test it out. Another user, Bfklin, asked, “Is that just visual sensor or is there coordination w radar?” Green replied that it was both vision and radar fusion. Green also provides another view with the narrow cam:

This particular view shows you just how Autopilot sees things — it’s not the typical camera footage that many see online. When cameras are referenced, it’s usually related to Sentry Mode, not Autopilot. As to how Green got this type of view from the Autopilot camera? He explains this in a Tesla Motors Club forum.

Editor’s addendum: Just before editing this article, I came across a great clip of Tesla Autopilot actually saving the day. Have a watch:

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Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

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Fiat Chrysler Automobiles CEO Says Company May Purchase Technology From Tesla

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Published on November 1st, 2019 |

by Steve Hanley

Fiat Chrysler Automobiles CEO Says Company May Purchase Technology From Tesla

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November 1st, 2019 by Steve Hanley

Just yesterday, CleanTechnica contributor Maarten Vinkhuyzen told us about Fiat Chrysler’s plan to merge with PSA Group, parent company of Peugeot and Citroen, a move he called “a huge gamble.” His story got a lot of comments, many of which suggest the merger is like strapping two sinking oil tankers together in hopes the combination will somehow stay afloat.

It should be noted the prior proposed merger of FCA with Renault was torpedoed by the French government, which owns a large number of Renault shares and was less than pleased by the lack of guarantees that French manufacturing jobs would not be adversely affected by the merger. The government of France also has a big stake in PSA and will seek similar assurances. This merger is a long way from being a done deal.

Photo courtesy Peugeot

Chrysler has been in financial trouble since 1979, when only a federal loan guarantee program allowed it to stay out of bankruptcy. Since then, iconic American brands such as Plymouth, Pontiac, Oldsmobile, and Mercury have disappeared from the scene but Chrysler has soldiered on, thanks in no small part to the profits derived from the Jeep division, which it acquired from AMC in 1987.

Mercedes-Benz bought the company in 1998 for $34 billion. After several years of struggling to make it profitable, Mercedes dumped the company on Cerberus Capital Management Group, a private equity firm, for $7.4 billion in 2007. Beginning in 2009, Fiat began acquiring pieces of the company out of bankruptcy, finalizing its acquisition in 2014. The new company became known as Fiat Chrysler Automobiles, or FCA, and was headed by Sergio Marchionne until his death in 2018. His successor is Mike Manley.

Michael Manley, CEO Fiat Chrysler Automobiles. Photo courtesy FCA

On a conference call with stock analysts last week, Manley announced that FCA would consider buying a skateboard or rolling chassis from Tesla to serve as the basis for electric cars from the FCA/PSA alliance. Manley hinted that the new company could adapt the Tesla skateboard to individual markets by using suspension, braking, and other systems already on the shelf for brands such as Maserati, Alfa Romeo, or Jeep that are part of FCA today. He did not say whether Tesla has expressed any interest in selling such skateboards to other companies.

“The customer will be agnostic” to certain components like batteries and drivetrains, Manley said, according to Business Insider. What he means is that drivers focus more on the emblem on the hood and how comfy the seats are rather than the components that make a car go. He may be correct. Few people ever see the battery pack in an electric car or the motors that turn the wheels. They could come from Mars for all most people care as long as they function properly.

Many manufacturers today worry about becoming merely assemblers of parts acquired from outside suppliers. Gone are the days when a Jaguar was defined by that great thumping twin cam engine designed by William Lyons under the bonnet. Customers care no more about who supplies the motors in their electric cars today than drivers of conventional cars care about who manufactured the gas tank.

Tesla does have some history of working with other manufacturers. It provided batteries and motors to Mercedes-Benz for its first electric car, the B-Class Electric. And did the same for Toyota’s RAV4 EV. But those cooperative agreements ended years ago, and if Elon Musk is interested in becoming a supplier to other manufacturers today, he certainly hasn’t shown any signs of that publicly.

The most likely scenario is that Manley is whistling past the graveyard of automotive legends that have ceased to exist. He might be better off looking to Volkswagen, which is actively seeking buyers for its MEB electric car platform.

“Our relationship with Tesla goes back a long way,” Manley said. “It really has helped us. But FCA are absolutely committed to reducing CO2 emissions around the world.” This from a company that once begged customers not to buy its electric cars. Manley promises that after the merger with PSA the new company will pursue electrification on a “grand scale.”

“We’ll see,” said the Zen master.

Related: Tesla & Fiat Dance An Interesting Tango
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Tesla Drops Deposit Fee To $100

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Published on October 18th, 2019 |

by Johnna Crider

Tesla Drops Deposit Fee To $100

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October 18th, 2019 by Johnna Crider

Tesla has dropped its deposit fee from $2,500 to $100. Also important to note, the previous $1,000 and $2,500 deposit fees were fully refundable, but the $100 deposit is nonrefundable.

CNBC says that, “The order fee means that Tesla will make money every time a person places an order, even if they decide not to move forward with their purchase — no matter why they decided to bail.” (Yes, that is the definition of a nonrefundable fee.)

To be honest, I don’t think this is a bad thing at all. Let’s look at it from the point of view of a business. A business is meant to do one major thing: thrive. In order for it to thrive, it must survive. For this to happen, the business needs money to build itself up, create products to sell, sell them, and so on. Fully refundable deposits can send incorrect signals, create false expectations, and complicate Tesla’s operations. A nonrefundable deposit (which is what Tesla used to use), even if much smaller (it was previously much higher), is an actual commitment. Not that many people are going to give away $100, so they also won’t place an order without a genuine commitment or plan to buy the product.

Let me explain it in another way. I will use myself as an example. I am a “wire artist,” someone who makes jewelry with wire, be it copper, silver, or gold. These metals can get quite costly, especially gold. Then add in the cost of the mineral or gemstone — you won’t be looking at the sales numbers Tesla sees, but depending on what someone orders, it could be a $400 piece of jewelry that is handmade.

$400 is a lot for artists like me, and at least 25% of that will be the base cost — cost of the materials alone. Then there’s the work that goes into making the piece and shipping it. With Tesla, it has to pay employees.

So, when a customer places an order and then changes their mind, a business needs to have a plan in action. Personally, I charge full price upfront for my work and inform my customers that it’s non-refundable due to the cost of materials.

Now, let’s look at it again from the point of view of Tesla. The company has thousands of customers a week. Let’s imagine that out of every 1,000 orders, 10 are canceled. I am not sure what the exact number is, so I’m just guesstimating here. So, if 10 per 1,000 are cancelled and these 10 paid $2,500, then that could equate to $25,000 in cash Tesla would lose just from having to return deposits. [Editor’s note: With my new Tesla referral code, I have seen 8 people finalize a Tesla order and 3 place an order and then cancel it. Another 7 have placed an order and are yet to receive the car (and thus finalize the order) or cancel. That’s certainly not a scientific sample, but just as one data point, that’s a 27% cancel rate. If that’s anywhere near the norm, it must be quite a challenge for Tesla to manage when it so closely matches production with consumer demand.]

The best way to prevent those kinds of losses is to make it nonrefundable, and to do that, Tesla had to lower it. Remember, Tesla has to thrive–not just survive–but to thrive. The goal of anyone with a business is to prosper, yet people have this mentality that Tesla (and other businesses) must be bad because they make a lot of money. Some seem to give little to no thought about this. I see people all the time asking for Elon to give them a Tesla. If he did, Tesla wouldn’t make money.

On the plus side for customers, making the deposit only $100 makes it easier to get through the first step of buying a Tesla. $100 is still a lot to the average American working 2–3 part-time jobs and holding down a side business to survive — but it’s a lot more approachable than $2,500!

Photo by JRR, CleanTechnica

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Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

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From The Mud Field To The Plug — Tesla Gigafactory 3

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Published on October 18th, 2019 |

by Johnna Crider

From The Mud Field To The Plug — Tesla Gigafactory 3

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October 18th, 2019 by Johnna Crider

From the mud field to the plug, there is a story of growth, determination, and persistence despite opposition. The plug is when the first car built at Tesla’s Shanghai gigafactory plugs in, and it symbolizes success and another major milestone achieved. The message is clear, keep on doing and ignore the haters.

Once upon a time, there were people pointing to an empty field of mud, with claims that Tesla was faking it. Actually, those people are still doing the same thing, despite being so wrong on this story. They change up their criticisms based on Tesla’s narrative of the moment, but the message is always that Tesla is faking something and is about to fail. Never mind history.

Regarding the groundbreaking in China, the haters claimed that Tesla isn’t going to be in China, and if you believe it, then you are a stupid, gullible, weak person who has no life.

Now, after the Gigafactory 3 has been built, the lights are coming on, and the first cars are approved for production, the saying is more along the lines of Tesla is losing money because no one will buy Tesla’s cars in China, and if you believe they will, then you are a stupid, gullible weak person. You have been conned.

If you believe the narratives of the Tesla [TSLA] short sellers, then you have been conned, but not by Elon Musk or Tesla.

You can easily observe the narrative of the loudest advocates for Tesla’s failure. While they scream and taunt Elon on Twitter, Elon replies back with his actions, or rather with Tesla’s actions. For every tweet, every negatively photoshopped image of Elon, and every chant that “Elon is a fraud” (with no real evidence to back up these claims), Tesla’s response has been that of progress.

This speaks volumes of how well Tesla is actually doing, and for those of us in America, we should be not only proud but also in awe of what Tesla has achieved, especially with China. Coupled with the taunts and chants of short sellers and a few in the media who consistently support the short thesis, the Gigafactory 3 is something beautiful. It is extra special.

Interestingly, the ugliest tweets bring out those who not only support Tesla, but who believe in Elon Musk — people like Chao Zhou, who has superbly documented the transition of this mud field; Vincent, who also keeps us updated on the progress of Gigafactory 3 with pics, videos, and inside information.

No Longer A Mud Field

A US Company Embraced By China During A Trade War Between Both Countries

Right now, the US and China are in a trade war. Tariffs have made almost everything go up in price, and we are seeing the effects of it here — things that were once $15 (small appliances, for example) are now $23 and up. However, this aside, we have to understand one thing:

Tesla is the only foreign company that has its own factory in China — it was approved in a watershed moment by China to operate and sell electric vehicles to Chinese citizens. The fact that China’s government has fully embraced Tesla is nothing to overlook, especially since our own government made Elon pay millions for a tweet certain people didn’t like.

Tesla Granted Manufacturing License in China

Earlier this morning, Reuters announced that, according to China’s Ministry of Industry and Information Technology, Tesla now has the green light to start production. Tesla, Inc. was added to the government’s list of approved automotive manufacturers and was granted the certificate it needs to start production.

Gigafactory 3 Gets Plugged Into State Grid Power Supply

Bloomberg reported yesterday that the State Grid Corp of China has turned on the lights, so to speak, in the Shanghai Gigafactory. The transmission line will increase electricity supply to the plant at the required level for preliminary production. Shanghai Grid also plans to increase the power supply by 8 times so the factory can run at capacity. This project involves 55 kilometers of cables (34 miles for those of us in the USA) and 17 kilometers of ducts (10 miles). The State Grid also said this was among the quickest it had completed and only took 6 months.

Instead of following the hype of the critics, look at the monumental successes Tesla has had, and not just in China. The reason why short sellers are short Tesla is that they have made money betting against Tesla. I think this will soon change for them, and like all who face the daunting challenge of a big change, they refuse to accept it. They fight it and struggle with all they have. This is why they troll Tesla owners, fans, and shareholders (like me) online. This is why they create their echo chamber and convince some journalists to write negative headlines.

They don’t want their luck to change, but as Prince EA says,

“You can ignore this, but the thing about truth is, it can be denied — not avoided.” — Prince EA

Tesla’s success can be denied, but it won’t be avoided.
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Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

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Phase 2 Of Tesla Gigafactory 3 Will House Battery Manufacturing Facility

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Published on October 16th, 2019 |

by Steve Hanley

Phase 2 Of Tesla Gigafactory 3 Will House Battery Manufacturing Facility

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October 16th, 2019 by Steve Hanley

According to a report by China’s Global Times, Tesla has completed construction of the parts of its Gigafactory 3 in Shanghai that will be dedicated to producing automobiles. Now it has begun work on “phase 2” of the factory, which will house a battery manufacturing facility. The report does not make clear whether this space will be used to make battery packs from cells sourced from outside suppliers or whether it is intended for cell production as well.

Last summer, Tesla announced it would use battery cells sourced from LG Chem for the battery packs used in the Model 3 sedans built in Shanghai. It also indicated it was open to using battery cells made by CATL or Panasonic in the future as well. The implication is the company does not intend to manufacture its own battery cells but will be responsible for making its own battery packs, presumably in the part of the new factory that is now under construction. Global Times visited the Gigafactory 3 (GF3) site this week and reports the area where phase two will be located has already been paved and the installation of pillars and roof trusses has already begun.

Feng Shiming, a veteran analyst for the Chinese auto industry analyst, tells the Global Times he has heard from Tesla employees at GF3 that the first batch of vehicle batteries for the Model 3 will be fully assembled as of October 30. He predicts that mass production at the Shanghai factory will not start until after the Spring Festival holidays in January next year. The factory built in the first phase will merely assemble parts shipped from the US, Feng says. On Monday, a Tesla sales person told the Global Times on Monday that a Chinese customer who places an order for a Model 3 today will take delivery of the car in 6 to 10 months.

We’ve also seen a report that Model 3 production will now start in GF3 on October 20.

A Need For Urgency
Feng suggests the push to get the Model 3 into production at the new Shanghai factory is tied in with a desire to reassure investors that the company can achieve profitability and deliver its cars in a timely fashion. “The price of the Model 3 is relatively low, so Tesla needs to start sales in China as quickly as it can and sell the car in large volumes to recoup its capital investment,” Feng says.

Some industry observers believe mainstream customers for the lower cost Model 3 may be less inclined to overlook quality concerns than the more affluent buyers of the Model S and Model X who are focused primarily on the advanced technology Tesla brings to the table. Model 3 buyers, on the other hand, are replacing conventional cars with internal combustion engines and are more interested in utility than technology, presumably.

Feng suggests Tesla may have to offer incentives to get Chinese customers to make the switch, which could depress earnings, at least to start with. Confirmed Tesla supporters, like those who read CleanTechnica, see things differently. We tend to think that once Chinese customers get to experience the goodness of the Model 3, it will be traditional manufacturers who will be juicing their sales incentives in an effort to convince shoppers not to buy every Model 3 Tesla can weld, screw, and glue together at its Shanghai factory.

Hat tip to Teslarati.
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Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and anywhere else the Singularity may lead him. His motto is, “Life is not measured by how many breaths we take but by the number of moments that take our breath away!” You can follow him on Google + and on Twitter.

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Tesla Model Y: “Limited Production” ≠ Customer Deliveries

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Published on October 15th, 2019 |

by Zachary Shahan

Tesla Model Y: “Limited Production” ≠ Customer Deliveries

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October 15th, 2019 by Zachary Shahan

We published an article earlier today about leaked info we received from a historically reliable source inside Tesla who indicated there’s a target to start limited production of the Tesla Model Y in Tesla’s Fremont factory sometime around Q1 2020. Our main source has previously shared detailed information of various sorts that proved to be accurate, some of which we published and some of which we didn’t. Our source is not a top executive at Tesla, and we all know that Tesla is a nimble company that can change plans (or run into challenging bottlenecks) as the seasons change, so first and foremost I do think it’s wise to be cautious about leaked expectations for limited Model Y production anywhere from 3 months from now to 6 months from now.

More importantly, though — and the reason for this article — I think people should be cautious about conflating production (er, limited production) and customer deliveries. Even if production starts rolling at a slow pace in 3–6 months, customer deliveries may not start for another several months after that. We don’t have any insight into this matter.

In fact, even though Model Y production commencing in or near Q1 2020 may seem far in advance of Tesla’s stated plans to start shipping Model Y to customers in “fall 2020,” there may not be much (or any) discrepancy at all. This leaked information may simply mean that Tesla is on track with its stated Model Y development and production plans.

Of course, we know that some Model Ys are already in testing on the road:

However, Tesla has previously tested prototypes of new models several months before customer deliveries began.

Another contributor of ours, Maarten Vinkhuyzen, offered some useful comments on this topic underneath the article earlier today. His comments are based on previous Tesla announcements, how precise or careful the company has been about Model Y production statements, and his own deduction:

What was notable was that it was more careful this time around. Tesla talked about start of production, start of volume production, start of deliveries to public, all with different moments in time. That made me thinking.

The time line as I see it:

2020Q1
— start of the production line,
— end-to-end system testing,
— programming, configuring, debugging, and tuning.

2020Q2
— start of trial production,
— product QA, panel gaps, paint job, fit and finish,
— production of test vehicles for collision, safety, cold & hot climates, endurance.

2020Q3
— start building Model Y production line in Shanghai GF3
— start of production,
— vehicles for showroom and test-drives at USA dealers,
— first deliveries to employees.

2020Q4
— start of volume production,
— deliveries to employees Tesla and SpaceX,
— deliveries to first, preferred customers around Fremont.

2021Q1
— start of deliveries to public at large.

As you can see, Maarten’s forecast fits both the leaked information we received regarding “limited production” as well as Tesla’s official “fall 2020“* commencement of deliveries target. I don’t know enough about manufacturing to know if this timeline is realistic, but it looks logical to me.

The key summary note that I’ll repeat is: “limited production” ≠ customer deliveries. We did not receive information on when initial customer deliveries are expected, and we did not receive enough insight into what is underway or planned to know if Model Y development and production is moving along faster than initially expected. We also have not heard from Tesla on this matter despite reaching out for commentary on the topic.

We will update you if we learn more. In the meantime, it seems safe to say that 1) Tesla Model Y production is still on track (as Elon Musk has stated every time he’s been asked about it), 2) it seems clear that it will occur in Fremont, and 3) there’s a chance that it’s ahead of schedule — but our information does not prove that. If you hear more, feel free to drop us a note.

*h/t Fact Checking
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About the Author

Zachary Shahan Zach is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director and chief editor. He's also the CEO of Important Media. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao.

Zach has long-term investments in Tesla [TSLA] — after years of covering solar and EVs, he simply has a lot of faith in this company and feels like it is a good cleantech company to invest in. But he offers no investment advice and does not recommend investing in Tesla or any other company.

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