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Tesla Model 3 = 6th Best Selling Car In USA In 3rd Quarter*

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Cars

Published on October 6th, 2019 |

by Zachary Shahan

Tesla Model 3 = 6th Best Selling Car In USA In 3rd Quarter*

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October 6th, 2019 by Zachary Shahan

The Tesla Model 3’s #6 position in 3rd quarter US car sales* seems both shockingly high and surprisingly low at the same time. No, this is not a trick — I’m serious.

On the surface, I consider the Model 3’s US sales shockingly high because the car has by far the highest base price of any car in the top 10. The Honda Civic’s base price is $21,650, the Toyota Camry’s base price is $24,295, the Toyota Corolla’s base price is $19,600, the Honda Accord’s base price is $23,870, the Nissan Altima’s base price is $24,100, and the Tesla Model 3’s base price (online) is $38,990. The smallest separation in price there is more than $15,000, and the Model 3 clearly sits in a very different class that’s out of the financial reach of many households.

On the other hand, as I’ve pointed out extensively, in many circumstances the Model 3’s total cost of ownership over just 5 years could be close to or even lower than the Camry’s, Accord’s, etc. What do you get for that similar 5 year cost of ownership? A tremendously better car. The Model 3 has better safety scores (the best in history), has much better tech (infotainment and semi-autonomous driving tech are far ahead of any competitors’ tech, let alone that of these mainstream models), offers a much better driving experience, is much quicker, is cleaner, and genuinely looks like a higher class car (yes, I think that’s an objective judgement). In that light, it’s surprising the Model 3 isn’t yet the top selling car in the country. However, the vast majority of the public doesn’t know about the Model 3, its benefits, or how competitive it can be on a total cost of ownership basis.

With those initial thoughts out of the way, let’s jump to the numbers.

As you can see, my estimate for Tesla Model 3 sales* put it confidently in the 6th position, 8,000 units below the #5 Nissan Altima and more than 30,000 units behind the #4 Honda Accord (about 10,000 units per month lower). It was just 2,500 units above the #7 Hyundai Elantra in the 3rd quarter.

For the full first 9 months of the year, the Model 3 drops to #9. In the 1st quarter of the year, Tesla shipped most of the cars it produced overseas and was suffering from a US sales wave that saw a peak in deliveries at the end of 2018 followed by a crash in the beginning of 2019. Finishing in 9th place in the first three quarters results in the same narrative, though. The result seems both shockingly high and surprisingly low at the same time.

*Tesla reports quarterly sales and does not break them out by country or region. Eventually, we get registration data from Europe, China (educated estimates at least), and Canada and can then make a more solid estimate of US sales for the quarter, as well as monthly sales estimates. However, it’s a bit early for all of that since we don’t have September numbers from most countries yet. Even our data-loving friend and contributor Jose Pontes of EV Volumes didn’t want to venture out too far on a limb and provide an early estimate that he might have to walk back. That said, looking at previous months’ data, September figures from the Netherlands and Norway, and deeper historical data, I feel comfortable estimating Model 3 sales between 40,000 and 50,000 in the US in the third quarter. For this report, I’ve settled on 43,000.

If you’d like to buy a Tesla Model 3 instead of a Camry, Accord, Civic, or Corolla, and you’d also like to get 1,000 miles of free Supercharging in the process, feel free to use my referral code: https://ts.la/zachary63404.

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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Tesla Reached 7,000 Cars Per Week In 3rd Quarter & Nobody Noticed

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Autonomous Vehicles

Published on October 8th, 2019 |

by Maarten Vinkhuyzen

Tesla Reached 7,000 Cars Per Week In 3rd Quarter & Nobody Noticed

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October 8th, 2019 by Maarten Vinkhuyzen

From the start of Tesla Model 3 production until about a year ago, the most important, nearly daily, Tesla news was about the weekly production numbers. We visited the Bloomberg tracker regularly to stay abreast of the news, and the FUD. And then Tesla started producing over 4,000 vehicles per week regularly and the interest disappeared. Tesla finished the marathon many doubted it could endure for more than a mile, two at the most.

Those were fun times. Tesla reaching 100, 200, 500, and even 1,000/week was an exciting progression of events. Elon Musk teased production numbers on Twitter that were one-time events and some claimed that they could “never” be sustained at a steady production level. The monthly sales number guesstimates on InsideEVs and Tesla’s quarterly delivery disclosures were preceded and followed by heated speculation.

As a somewhat more detailed reminder of what happened, Tesla designed a futuristic 5,000 unit/week production line, only to discover that humans were greatly undervalued and that line had to be redesigned while slowly ramping the production numbers. There was the plan to build a second 5,000 unit/week line when more vehicles were needed.

However, when redesigning the line, optimizing and tuning all the steps, Tesla realized that it would be less costly to enhance the line to higher throughput numbers than to build a second line. To be precise, upgrading to 7,000 units/week would be possible with small enhancements and a little capex. Upgrading to 10,000 units/week would require serious investments. The 7,000 unit/week option was really a no-brainer. The 10,000 unit/week option was a possibility that probably never reached the status of plan, let alone stimulating any actual planning.

When building Gigafactory 3 (GF3) in Shanghai became reality, all talks of 10,000 units/week in Fremont were forgotten (except by some foolhardy trolls).

In those days, Musk and some other figures with a grasp of production tried to explain what 41.6 cars/hour or 1,000 cars/day or 7,000 cars/week represents. Many did simple arrhythmic and proclaimed production of 360,000 or even 365,000 per year.

While 24 x 41.67 indeed equals 1,000, there is never a day when there is no slowing down or stopping of the line. To get to 1,000 cars/day, you have to get to a steady 47/hour. There are always bathroom, coffee, breakage, accident, repair, and other interruptions. For the same reason, you need 1,100 to 1,150 cars/day to reach a 7,000 cars/week. Or, at least, something like that. Jerome Guillen, Tesla’s president of automotive, knows the exact number.

That coveted 7,000 cars/week will not result in 91,000 vehicles/quarter. That is 80,000 at the most. A rule of thumb of 11½ weeks per quarter is often used in planning.

In a production environment, there are always production disturbances, accidents, needed repairs, maintenance, upgrades, alterations, etc., besides the holidays and other valid reasons to close the factory for a day or so longer.

Such issues happened a lot in the disastrous first quarter of this year. They happened at a normal rate in the third quarter, and they will happen in each quarter in the future.

But with a total of 79,837 Tesla Model 3 vehicles produced in the last quarter, we now know that the steady 7,000 unit/week total for a whole quarter has been reached. The most remarkable thing about this achievement is that it was not noted by all those people who were so focused on this number a year ago. It was a non-event, as it should be with a normal carmaker.

About the Author

Maarten Vinkhuyzen Grumpy old man. The best thing I did with my life was raising two kids. Only finished primary education, but when you don’t go to school, you have lots of time to read. I switched from accounting to software development and ended my career as system integrator and architect. My 2007 boss got two electric Lotus Elise cars to show policymakers the future direction of energy and transportation. And I have been looking to replace my diesel cars with electric vehicles ever since.

And putting my money where my mouth is, I have bought Tesla shares. Intend to keep them until I can trade them for a Tesla car.

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Electric Volvo XC40 will have a frunk, new driver interface

The new XC40 EV will be more than just an electric powertrain dropped into the company's small crossover, Volvo announced Wednesday, backing up that claim with design sketches and some fresh insights into its approach to electrification.

Volvo's design team is leaning into the stylistic advantages of electric powertrains, which don't have the same packaging needs as internal-combustion engines. Robin Page, Volvo's head of design, says the XC40 EV was designed to incorporate these attributes, rather than obscure them.

“Without the need for a grille we have created an even cleaner and more modern face, while the lack of tailpipes does the same at the rear,” said Page. “Its bold, instantly recognizable design is now even sleeker and more modern in the all-electric version.”

According to Page, this approach contributes to an aesthetic based on “visual clarity and the reduction of element,” or, put more succinctly: minimalism.

There's utility in these changes too: The XC40 EV will have a usable underhood cargo compartment (a “frunk,” for “front trunk”).

Volvo says the XC40 EV will also sport a unique interface designed around the electric car ownership and driving experience, optimized to keep drivers apprised of critical information like battery status.

The XC40 family was designed from the ground up for electrification, which contributes greatly to the EV coming off as more than a hasty attempt to appeal to the green crowd. That didn't stop the company from incorporating a few nods to sustainability, such as carpets made from recycled materials.

Information on Volvo's first EV has been trickling out ahead of its formal debut on Oct. 16. Last week, Volvo shared some of the details of the XC40's driver assistance tech.

Dubbed Advanced Driver Assistance Systems, or ADAS, this new sensor platform is the first implementation of the new scalable semi-autonomous driving platform that Volvo plans to evolve into a full self-driving ecosystem as technology allows.

Join the Competition: Argoverse Leaderboards Are Live

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We talked to a top Uber exec about how the ride-hailing giant is betting on healthcare to reach a new set of customers

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Berlin-based e-scooter startup TIER Mobility raises €55 million Series B funding round

Berlin-based provider of micro-mobility solutionsTIER Mobility, which specialises in e-scooters, is part of an ongoing transformation of transportation, relieving cities from emissions and congestion.

Founded in October 2018, Tier currently operates in over 40 cities across 12 markets worldwide, and has now raised €55 million in a Series B funding round led by Mubadala Capital and Goodwater Capital.

The company also welcomes AXA Germany and Evli Growth Partners as new investors, in addition to further participation from all existing investors, including White Star Capital, Northzone, Speedinvest, Point9, Indico, Kibo Ventures, Market One Capital and selected business angels like Nico Rosberg.

TIER Mobility will use proceeds to accelerate its European expansion strategy and continue to build the leading micro-mobility platform for citizens, city authorities and public transportation partners.

Since its funding round in February 2019, TIER Mobility has expanded operations to over 40 ..

Via is launching an on-demand public transit network in the city of Cupertino

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Waymo is creating 3D maps of Los Angeles to better understand traffic congestion

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Tesla Adds Hibar Systems To Its List Of Acquisitions

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Batteries

Published on October 6th, 2019 |

by Steve Hanley

Tesla Adds Hibar Systems To Its List Of Acquisitions

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October 6th, 2019 by Steve Hanley

Hibar Systems, with headquarters in Ontario, was founded in the 1970s by German-Canadian engineer Heinz Barall. Since then, it has established itself as a leader in precision manufacturing of small cell batteries through a highly mechanized pump injection system.

Company logo may or may not have been designed in the 1990s. Credit: Hibar Systems

According to Electric Autonomy, the company has developed an international reputation in the battery industry, with manufacturing facilities in North America, Europe, South Korea, Japan, Malaysia, and China. In a brochure, the company says the Chinese market accounted for over 50 percent of Hibar’s business in 2014.

Recognizing the huge demand for batteries in a Chinese market rapidly transitioning to electrification, Hibar created a subsidiary, Hibar China, in 2003. It now has two offices in China to manage Asian production.

Here’s where the story gets interesting. After September 16, the company’s website came down and was replaced with a generic information page. So, Electric Autonomy did a little digging. It began by looking at federal lobby registration documents on the government’s lobbyist registry database.

As of July 2019, Tesla Motors Canada listed no subsidiary companies authorized to lobby the government on various issues surrounding electric vehicles and infrastructure. On October 2, 2019, a new filing listed Hibar Systems as a subsidiary with direct interest in the outcome of Tesla’s undertakings with the government of Canada.

Tesla has not responded to a request for comment made by Electric Autonomy. When asked about the situation, Iain McColl, the president and CEO of Hibar Systems, said all inquiries should be directed to Tesla.

In the absence of any official information, we are left with what is hopefully informed speculation. Tesla has acquired Maxwell Technologies, a company with deep roots in China and advanced expertise in making supercapacitors. Hibar Systems has deep roots in China. Production of Tesla automobiles in China is set to begin by the end of this year.

Tesla has been hinting that it may produce its own battery cells in the near future. Elon Musk has also suggested recently that his company is on the verge of offering batteries with the ability to last 1 million miles. Lastly, Tesla has a 5 year contract for advanced battery research with Jeff Dahn of Dalhousie University in Halifax, Nova Scotia.

The conclusion? Tesla is committed to being a global leader in battery design and manufacturing now and into the foreseeable future. It has often been suggested that Tesla is not a car company that also makes batteries but rather a battery company that also makes cars.

While the world is fixated on the latest Tesla vehicle firmware updates and the arrival of the Model Y, the real news may be that Tesla is poised to dominate battery technology now and in the future. All the nattering nabobs of negativism in the investment community who wring their hands about Tesla missing its goal of delivering 100,000 vehicles in the last quarter (delivering 97,000 instead) may well be missing a larger point.

In a world where batteries are clearly the key to a zero carbon future, Tesla is a clear leader in energy storage technology and has every intention of remaining in the forefront of the industry.

About the Author

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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