Archive for the ‘Tesla’ Category

“Hardcore” Belt-Tightening a Must, Says Tesla’s Musk

The “only way for Tesla to become financially sustainable.”

by on May.17, 2019

Tesla's Elon Musk has ordered employees to rein in spending on virtually everything.

Tesla will need to engage in some “hardcore” cost-cutting, CEO Elon Musk told employees in an e-mail late Thursday, a move that comes in the wake of an unexpectedly severe first-quarter loss.

The automaker earlier this month was able to raise $2.7 billion through a combination of stock and debt offerings, but investors have become increasingly wary of the challenges that face the automaker – Tesla facing substantial debt repayments on top of the costs involved in the development of an array of new products and a new plant in China.

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The latest cash infusion, according to Musk, will only let it go for another 10 months without getting back into the black, he wrote, which “is why, going forward, all expenses of any kind anywhere in the world, including parts, salary, travel expenses, rent, literally every payment that leaves out bank account must (be) reviewed.”

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Tesla Updating Software After Latest Battery Fire

Two recent incidents raise new concerns about EV safety.

by on May.16, 2019

A security camera caught images of a Tesla spontaneously catching fire in a Hong Kong garage.

Responding to the latest in a series of fires involving its electric vehicles’ battery packs, Tesla will updated its digital control software.

The move comes in the wake of a pair of fires in China, a critical market for the manufacturer, both involving parked vehicles. Since the original Tesla Model S was introduced, the company’s products have been involved in more than a dozen vehicle fires.

Electrifying News!

“As we continue our investigation of the root cause, out of an abundance of caution, we are revising charge and thermal management settings on Model S and Model X vehicles via an over-the-air software update that will begin rolling out today, to help further protect the battery and improve battery longevity.” Tesla said in a statement released on Wednesday.

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“You Want to Be There” When the EV Market Takes Off, Ford CEO Hackett Tells Shareholders

The upcoming “Mustang-inspired,” all-electric SUV will “reconceptualize’ the way cars are designed.

by on May.09, 2019

Ford is counting on its "Mustang-inspired," long-range electric SUV, codenamed Mach1, to help it plug into the emerging BEV market.

Ford Motor Co. will launch its “Mustang-inspired,” crossover later this year, its first long-range battery-electric vehicle, and CEO Jim Hackett told shareholders that while the EV market has been slow to build momentum, “When it happens you want to be there.”

Hackett focused a lot of his energy on describing the automaker’s electrification plans during Ford’s first “virtual” shareholders meeting on Thursday, clearly hoping to build support for a program in which it plans to invest $11 billion by 2022, more than double what Hackett’s predecessor, Mark Fields, had committed to spend by 2020. All told, Ford has laid out plans to roll out 40 hybrids, plug-ins and pure battery-electric vehicles, or BEVs.

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Insight!

The question is whether there will be a market for those vehicles, especially when considering the generally tepid response for earlier Ford battery-based models like the C-Max Energi, a PHEV, and the Ford Focus Electric, a BEV. (more…)

Barely One in Six Americans “Likely” to Buy an EV Next Time They’re in the Market

New AAA study finds millions more might enter market – if gas prices top $5/gallon.

by on May.09, 2019

The Jaguar I-Pace is one of the winners of AAA's annual Top Green Vehicle Award.

Less than one in six Americans say they’d give serious consideration to buying an all-electric vehicle next time they’re in the market for a new car, truck or crossover, according to a new AAA study, a finding that could spell trouble for the automakers ready to launch dozens of new battery-electric vehicles, or BEVs, over the next several years.

The good news for the industry is that as many as 40 million Americans say they’d at least consider the merits of an all-electric model. But, according to the study released today, U.S. motorists remain confused about both the benefits and limitations of battery-cars.

Green Car News!

“Today, more than 200,000 electric cars can be found on roads across the country as almost every manufacturer sells them,” said Greg Brannon, AAA’s director of Automotive Engineering. “But, like other new vehicle technologies, Americans don’t have the full story and that could be causing the gap between interest and action.”

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Tesla Cars Now Can Diagnose Problems, Even Pre-Order Parts

EV maker adds still more OTA update functionality.

by on May.08, 2019

Tesla is now making it possible for its vehicles to self-diagnose some problems with its vehicles, eliminating some maintenance headaches before they happen.

It’s the sort of headache every motorist dreads: a problem that crops up unexpectedly, leaving them stranded on the side of the road.

But Tesla thinks it may be able to prevent at least some of those sudden breakdowns from occurring by introducing a new feature to its vehicles that not only can diagnose problems, but also, in some cases, send an alert to a the Tesla Service Center to pre-order the necessary repair parts.

Product News!

“Our cars can keep tabs on certain components to let you know if they need replacing and order parts ahead of you next service visit,” the company said this week. (more…)

Tesla Increases Capital Bid – and Investors Eagerly Comply

EV automaker boosts plan to $2.4 billion – and could go even higher.

by on May.03, 2019

Why is this man smiling? Tesla CEO Elon Musk finally has had a good week.

After long dismissing the need to raise additional capital, Tesla has not only gone back to investors with its hands out but been rewarded with about 25% more fresh funding than it had said it would seek just a matter of days ago.

In all, the financially stretched EV automaker will be able to add at least $2.35 billion to its cash horde, and the figure could grow to around $2.7 billion should underwriters exercise their right to purchase even more stock and bonds.

Breaking News!

The news translated into a solid bounce for Tesla stock, as of mid-afternoon Friday, giving some positive momentum after months of decline. But with shares hovering under $245, the Silicon Valley-based company is still well off from its $319.88 high this year, never mind a 52-week peak of $387.46.

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Product Launches Hammer FCA’s Q1 Earnings

But Ram pickup sales provide a cushion.

by on May.03, 2019

CEO Mike Manley needs to prove he can maintain the pace set by his former boss, Sergio Marchionne.

Fiat Chrysler Automobiles reported profits dropped 41% in the first quarter as a slump in sales in key markets cut the company’s revenues by 5 percent.

The automaker attributed the decline to the normal production challenges related to an array of new product launches in North America, as well as pricing pressure in China and South America.

Financial News!

FCA CEO Mike Manley, however, reaffirmed the company’s guidance for the full year. “We expect earnings to grow in the following quarters,” he said as FCA completes the launch of the new Jeep Gladiator and the Ram Heavy Duty pickup truck.

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Tesla Looking to Raise More Than $2 Billion

Company using a mix of stock and new debt to get cash.

by on May.02, 2019

Tesla is looking to add to its cash reserves to ensure the Model Y hits the market early next year.

Less than two weeks after saying Tesla likely would not seek to raise more money even though the time was right, CEO Elon Musk led the charge to raise $2.3 billion to bolster the California-based EV maker’s cash reserves.

The company launched issues of new shares and debt worth about $2.3 billion on Thursday, with Musk adding $10 million of his own as investors and analysts wondered how the company would be able to meet all of its goals without the extra cash.

Business News!

In a filing with the Securities and Exchange Commission filing, the EV maker said it plans to raise $650 million through new shares and tap the debt markets for an additional $1.35 billion. The underwriters have the option to buy an additional 15% of each offering, which would bring the total to $2.3 billion. (more…)

Musk Keeps Job With SEC Settlement – But Not Everyone is Pleased

A “bizarre series of events.”

by on May.01, 2019

The new SEC settlement will allow Musk to remain Tesla CEO - as long as he reins in his tweets.

The U.S. Securities and Exchange Commission reached a settlement with Elon Musk on Tuesday that ends a court battle that could have seen the South African-born executive forced out as the CEO of Tesla.

The agreement more clearly lays out the sort of things that the social media-savvy Musk cannot post on Twitter, blogs or other outlets without first having his comments reviewed by Tesla’s legal counsel. That includes topics that could have a direct impact on the automaker’s stock price. Musk initially agreed to having Tesla review some of his comments last year as part of a settlement of another dispute with the SEC.

Breaking News!

But not everyone is pleased by the agreement. At least one SEC Commissioner, former Columbia University law professor Robert Jackson, is speaking out about what he is describing as “this bizarre series of events” that led to the latest court case between the agency and the Tesla chief executive. In a statement released after the court case was concluded, Jackson said, “I cannot support (this) settlement.” (more…)

GM CEO Barra Confirms Plans for Electric Pickup

Could target competitors from Ford, Rivian, Tesla.

by on Apr.30, 2019

GM claims it "future-proofed" the current Silverado to accept electrified drivetrain options.

General Motors will build an all-electric pickup, CEO Mary Barra said Tuesday, confirming a report that first appeared in TheDetroitBureau.com in February.

The executive declined to provide details about the project, but the news took few industry observers by surprise considering that Ford and Tesla have also announced plans to build all-electric trucks, as has Detroit-based start-up Rivian.

Electrifying News!

GM “will not cede our leadership” in the truck segment, Barra said during a conference call with industry analysts and media to discuss the automaker’s first-quarter earnings.

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