VW ID 3 racks up 10,000 deposits in first day

2020 Volkswagen ID Neo spy shots
Three years after Tesla started taking $1,000 reservations for its Model 3, Volkswagen is racking up similar orders for its upcoming ID 3 hatchback in Europe.

Perhaps not to the degree, sure. Tesla amassed 180,000 orders for its “affordable” long-range electric car in one day in the US, while VW took 10,000 first-day deposits on the day it opened reservations for the ID 3 hatchback.

DON'T MISS: VW names fully electric hatchback ID 3, starts taking deposits in Europe

Still, the advanced orders are a hopeful sign for VW, after Tesla, Nissan, GM, and other automakers got a head start in building long-range electric cars.

Volkswagen said the orders exceeded its expectations, and said that in some cases its computer systems couldn't keep up with the deposits.

READ MORE: VW releases video of electric ID hatchback testing in South Africa

The company is booking reservations for the first edition of the ID 3, the ID 3 1ST, which comes with the long-range 62-kilowatt-hour battery pack, as well as 2,000 kwh of free public charging at Ionity fast charging stations around Europe.

The 62-kwh battery is expected to give the ID 3 a range of 260 miles on the notably generous European WLTP driving cycle. A shorter range, 48-kwh, is expected to deliver closer to 200 miles.

CHECK OUT: VW ID Buggy teases potential of electric-car platform with some beach fun

VW says the ID 3 will go into production by the end of 2019—about six months later than its original estimate—and the first cars will be delivered in Europe in mid-2020.

Volkswagen has no plans to sell the ID 3 the US, though it does plan to import future electric cars based on the ID 3's platform to the US, starting with the ID Crozz later in 2020.

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VW’s $2 billion penalty for diesel scam, Electrify America, builds electric chargers across US

Source: Electrify America
Electrify America charging station

Almost a year to the day after opening its first charging station, Electrify America says it is rolling out the country's fastest-growing network of fast chargers.

Funded by $2 billion from Volkswagen's 2016 diesel emissions settlement, it has a goal of building hundreds of stations and putting nearly 2,000 chargers in place by the end of this year.

Many of those will let battery-electric vehicle, or BEV, owners charge up nearly as quickly as they could fill a gas tank. Charging speed — along with the lack of a national network of charging stations — has been cited as a key obstacle to the widespread public adoption of electric cars.

“Longer range and faster charging times are critical to the widespread adoption of electric vehicles,” said Brendan Jones, the chief operating officer at Electrify America, during a conversation at the company's headquarters in Reston, Virginia. It's the equivalent of the classic chicken-and-egg problem.

EVs go mainstream

Extended-range vehicles, offering anywhere from 200 to nearly 400 miles per charge, are starting to roll out in large numbers from mainstream brands such as Daimler, Ford, General Motors and Volkswagen, as well as start-ups such as Tesla and Rivian.

Setting up a nationwide infrastructure is the next big challenge, according to many analysts. An August study by McKinsey & Co. projected it will cost as much as $50 billion to ensure public charging stations are as easily accessible as gas stations in three key markets — the U.S., Europe and China. The U.S. alone is expected to require an investment of as much as $11 billion, McKinsey estimated.

Several key players have entered the field and are starting to ramp up efforts to fill the broad gaps that exist across the country. These include Tesla, which has already put into operation 1,441 Supercharger stations across North America, the vast majority of them along U.S. roadways. Those facilities are only available to Tesla owners, but companies such as EVgo and ChargePoint are targeting the rest of the market. So is Electrify America.

Emissions settlement

Electrify America must spend that $2 billion by the end of 2026. The company, based in the suburbs of Washington, D.C., was created as part of Volkswagen's diesel emissions settlement with U.S. and California regulators.

The company is spending that money on a mix of consumer education and infrastructure, the latter drawing the vast majority of the funding. Though Electrify America is housed in the same faceless office complex as Volkswagen's U.S. headquarters, the settlement calls for it to operate as an independent entity. That was underscored by a network television ad the organization ran last year that featured a number of different electric vehicles, including those from Nissan, BMW and General Motors, but none from VW.

Electrify America's charging stations are being outfitted to allow any plug-based vehicle to connect, though Tesla owners will need an optional, proprietary adapter.

The first of its charging stations opened for business about a year ago. Since then, more than 160 have come online, with dozens more in various stages of completion. Each station features an average of four to five chargers, with a maximum of 10 at what are expected to become high-volume locations.

Building out

The goal is to have about 2,800 Level 2 and more than 2,000 Level 3 chargers in operation around the U.S. by the end of this year, said Electrify America CEO Giovanni Palazzo. To put that into perspective, the U.S. Department of Energy said a total of 54,638 public Level 2 and 3 chargers were in operation across the country at the end of 2018.

Electrify America's initial focus is on regions with high levels of EV ownership such as California and parts of the East Coast, he said. But it eventually plans to have charging stations that are no more than 70 miles apart along all major roadways in most states. Urban areas where EV ownership is expected to peak will have more of them.

The Level 2 systems, much like those that electric-car owners can install at home or find at many shopping centers and offices, provide 240-volt current at a rate that normally requires anywhere from four to 10 hours for a long-range vehicle to fully recharge. In many instances, Electrify America is targeting locations where owners who live in multifamily dwellings may not have on-site access to a charger.

The real transformation, industry observers believe, is the emergence of a Level 3 network. Around mid-decade, only a handful were open to the public in the entire country, but they are believed to now number in the 100s of stations and expanding rapidly, according to Palazzo and other experts.

Level 3

The first of these punched out 50 kilowatts of direct current, something that allowed for much more rapid charging — a Chevrolet Bolt EV, for example, can replenish about 80% of its charge in an hour or so.

Moving forward, Electrify America's new Level 3 systems will almost all provide a minimum of 150 kilowatts at 400 volts and many will push even further, taking that up to 250 kW and 800 volts. That's far more than most of the current crop of electric cars can handle. The new Porsche Taycan will be the first to be able to make full use of the technology, which can add about 20 miles of range per minute.

Source: Porsche
2019 Porsche Taycan

“That will let it recharge in about 10 minutes,” said Jones, “about the same amount of time as it takes to fill up a gas tank.”

To make things easier and speed up the charging process, Electrify America this week is rolling out a new smartphone app that can be used to locate its charging stations and see how long it will take for someone already hooked up to finish charging.

At the company's technical center, a short drive from its Reston headquarters, chief engineer Seth Cutler demonstrated to reporters last week what he hopes will further improve the customer experience and shave another minute or two off the charging process.

Tricky pricing

Normally, a user has to plug their vehicle in and go through a set-up process similar to paying for a tank of gas. But this time, as Cutler plugs a car into a charger prototype, everything is handled automatically. New software allows the charger to query the vehicle's on-board controller to find out how much power it can handle and how to bill it.

Pricing is still a bit of a challenge for EV owners. At home, based on typical U.S. energy rates of around 11 cents a kW, a vehicle like the Chevy Bolt, with a 65 kilowatt-hour pack, will cost less than $10 to “fill up.” And many owners are eligible for time-of-day rates that drop substantially when charging overnight.

That's why industry data show that about 80% of EV owners currently charge either at home or at an office during the day, noted Electrify America's Jones.

But the forecast is that more and more buyers won't have ready access to those Level 2 systems, while others will tap out their batteries while traveling longer distances, requiring them to plug into a commercially operated charging station.

Pricing can vary from company to company and even from one state to another. Charging companies typically offer discounted subscription services, but they also penalize nonsubscribers with “hook-up” fees of as much as $5.

More than gas

More often than not, motorists are billed on a per-minute basis, and that can add up if a vehicle is slow to charge, as I found out plugging in a Hyundai Kona EV to an EVgo charger in Ferndale, Michigan, earlier this year. After about 50 minutes, the battery crossover had gained only 80 extra miles of range on the 50 kW Level 3 system. The bill? Around $16, or 20 cents a mile. At the time, Michigan gas cost around $2.30 a gallon. A gasoline-fueled Kona, with mileage of 23 city and 28 highway, would have averaged less than 10 cents a mile.

While faster Level 3 chargers operated by Electrify America and other companies levy a higher fee when pumping out more current, the premium is modest, so it still works out to a lower final price. And that's before factoring in the convenience of not having to wait around for an hour or so.

Electrify America is now dropping its prices by 20%, which should make running an electric car while having to use public charging stations more cost-competitive with a gasoline vehicle, said Jones.

Yet another step some charging companies are taking will let their systems talk to one another and, in the process, accept competitors' subscribers without charging exorbitant hook-up fees.

Such steps will be critical to gaining acceptance for battery-electric vehicles, said Palazzo and Pasquale Romano, the CEO of ChargePoint.

In the red

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Elon Musk is wrong on robotaxi timing, Uber CEO Dara Khosrowshahi says

Uber CEO Dara Khosrowshahi: I disagree on Musk's robo-taxi timing expectations
1 Hour Ago | 01:09

Uber CEO Dara Khosrowshahi told CNBC he agrees with Tesla CEO Elon Musk that the future of mobility is electric, but he disagrees with Musk that truly autonomous “robotaxis” will next year.

In an interview that aired on Uber's IPO day on Friday, “Squawk Box” co-host Andrew Ross Sorkin asked him what the future of mobility looks like.

“First of all, it's got to be electric,” the CEO said. “We think that's a no-brainer. It's good for the environment. It's where the world is going. And we're playing our part, for example, in London to move it electric.” He added that Uber, of course, thinks the future of mobility also has to be “shared.”

The ride-hailing giant will make its debut on the New York Stock Exchange on Friday, pricing its IPO on Thursday night at $45 per share.

Tesla CEO Elon Musk recently told investors he is ready to take Tesla into a new, driverless era. The company should have a million vehicles capable of functioning as driverless robotaxis on the road by the end of 2020, he said. He also told investors that self-driving technology and services will help his electric car company grow to a $500 billion market cap.

When the Uber CEO first heard Musk's predictions about this, Khosrowshahi said, “I thought: If he can do it, more power to him. Our approach is a more conservative approach as far as sensor technology and mapping technology. The software's going to get there. So I don't think that his vision is by any means wrong. I just think we disagree on timing.”

Spencer Platt | Getty Images
The inside of a Tesla vehicle is viewed as it sits parked in a Tesla showroom and service center in Red Hook, Brooklyn on July 5, 2016.

Musk has also promised investors and fans that Tesla's self-driving cars will be able to work 100 hours a week, generating tens of thousands of dollars in income for their owners. He has also said that Tesla should be able to win regulators over to approve Tesla robotaxis for commercial use in the near future, at least in some locales.

Tesla and Uber have seen their semi-autonomous vehicles involved in fatal crashes in recent years.

Khosrowshahi struck a more sober tone about a driverless future.

“I think it will be quite a few years beyond,” he said.

While media coverage and industry conversations have focused on the dramatic notion that robots will steal jobs from people, the Uber CEO said he believes automation will always work better to augment humans' work. The better things are robots and humans together. Hybrid is always better, and hybrid states can continue for a much longer period than you think.”

In addition to its sizable ride-hailing business, Uber offers bike and scooter rentals, food delivery and operates a freight marketplace that links senders to shippers. Uber is developing self-driving vehicle technology through its Advanced Technologies Group.

Post-IPO Uber has a market capitalization over $80 billion. Tesla's market cap currently stands around $43 billion.

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