Retail News CRM

Category: Automotive

Retail News Asia is committed to providing both local and global retailers with the latest Auto and Car news throughout the Asian market. This on a daily base.

  • Apple Hires Tesla’s AutoPilot Software Pilot Boss

    Apple Hires Tesla’s AutoPilot Software Pilot Boss

    Apple has hired CJ Moore who was Tesla’s head of software for its AutoPilot autonomous driving system. CJ Moore recently had disputed Elon Musk’s claims around AutoPilot and said that it was fundamentally a level 2 ADAS system while Musk has been pitching it as an autonomous driving system. CJ Moore will be reporting to another ex-Tesla executive Stuart Bowers who is the Vice President of engineering at Apple.

    In January Musk had claimed that Tesla’s autopilot will be able to operate reliably to a level better than that of a human driver. Tesla’s FSD driving beta went live only earlier this year but still, it doesn’t make Tesla’s cars fully autonomous. Tesla is also facing an investigation from authorities in the US in relation to crashes while its cars have been in AutoPilot mode. Moore was called in as a witness after a Tesla crash that left two people dead in April.

    The Apple Car project which has been called Project Titan has been in the works for more than half a decade – and has been riddled with issues. Apple recently lost its day-to-day chief of the project Doug Field who also left for Ford. Apple placed operational control in hands of Kevin Lynch the former Apple Watch software chief.

    Apple has also hired Ulrich Kranz, the co-founder of Canoo, and the former Vice President at BMW who helped create its electric cars. Apple has also poached Tesla’s Andrew Kim, Michael Schewkutsch, and Steve MacManus.

    Apple has been struggling to close battery supply from the likes of BYD and CATL while it also still doesn’t have a manufacturing partner having spoken to many players like Magna and Nissan.

    Lees ook:

    Lees ook:

    Lees ook:

  • Self Driving Startup Momenta Raises $500 Million

    Self Driving Startup Momenta Raises $500 Million

    Chinese self-driving startup Momenta has raised $500 million in a Series C funding. This round of funding comes after GM invested $300 million in the startup. This means now Momenta is valued at over $ billion.

    Momenta’s product portfolio includes advanced driver assistance systems which it sells to OEMs like GM and another tier 1 suppliers like Bosch. It also does R&D on unmanned level 4 ADAS systems. It has a high-profile constellation of investors including China’s SAIC group, GM, Toyota, Mercedes Benz and Bosch. It also has Temasek which is Singapore’s sovereign fund and Jack Ma’s Yunfeng Capital onboard as institutional investors.

    Momenta’s main point of differentiation is its relationship with automotive OEMs as many of the top ones are its investors as well. Many of its peers have taken a different path as they have developed in-house robotaxi fleets which is a more capital-intensive operation. It harvests data from its customers who are mass-producing vehicles.

    In China, it has Pony.AI and WeRide as its main rivals, and while they have raised a lot of money Momenta’s fundamentals are stronger because of its frugal operations.

    For GM, Momenta deploys a solution that is a mixture of consumer-grade millimeter-wave radars and high definition cameras which will be used in the automaker’s cars sold in China. Momenta also opened an office recently in Stuttgart in Germany probably because of its relationship with Mercedes Benz which is also based out of the same city.

  • Vietnam’s VinFast eyes over $200 mln capital investments in California

    Vietnam’s VinFast eyes over $200 mln capital investments in California

    VinFast said Friday it will make over $200 million in capital investments and place its U.S. headquarter in California as part of its plan to expand operation in North America.

    VinFast, the automobile arm of Vietnam’s largest conglomerate Vingroup, became the country’s first fully-fledged domestic car manufacturer when its gasoline-powered models built under its own badge hit the streets in 2019.

    It is aiming to debut in the U.S. with two battery-electric SUVs and inaugurate 60 showrooms across the country next year, the company said.

    VinFast has said it will keep an eye on the possibility of a manufacturing facility in the U.S.

    Lees ook:

    Lees ook:

  • Royal Enfield’s Parent Company Eicher Motors’ Net Profit Grows 9% In Q2 FY2022

    Royal Enfield’s Parent Company Eicher Motors’ Net Profit Grows 9% In Q2 FY2022

    Eicher Motors Limited (EML), the parent company of Royal Enfield, has announced its audited consolidated financial results for the second quarter of FY 2021-22. For the quarter from July to September 2021, Eicher Motors Limited’s consolidated net profit rose 9 percent to ₹ 373 crore, as against ₹ 343 crore in the same period last year. The company recorded total revenues of ₹ 2,250 crore, up by 5.4 percent as compared to ₹ 2,134 crore in the same period a year ago. Royal Enfield sold 1,23,515 motorcycles during the quarter, a decline of 17.2 percent from 1,49,120 motorcycles sold over the same period in FY 2020-21.

    The Royal Enfield Meteor 350 along with the 650 Twins and the Himalayan have been spearheading the company’s push in the international markets.

    The silver lining was that Royal Enfield ended the quarter with best ever performance in international markets for the second successive quarter with total exports at 17,922 units, more than 132 percent increase over the 7,714 units exported in the same period last year, and almost 41 percent increase over Q2 FY 2019-20.

    Commenting on Eicher Motors’ performance, Siddhartha Lal, Managing Director of Eicher Motors Ltd. said, “The second quarter of the FY 2022 saw a remarkable performance by Royal Enfield in international markets with a growth of more than 130% over the corresponding period last year. Our consistent growth in volumes and global retail presence is testament to the company being on track to realize its vision of becoming the first premium global consumer brand from India.”

    The quarter marked the launch of the all-new Royal Enfield Classic 350, one of the most awaited motorcycles from Royal Enfield this year. On the apparel side of the business, Royal Enfield extended the Make It Yours (MiY) program to its range of riding jackets. In a collaboration that symbolizes an amalgamation of authenticity and safety, Royal Enfield joined hands with TCX to introduce a new range of CE Certified protective riding and lifestyle shoes.

    Royal Enfield marked its maiden foray in motorsports this year, with the first edition of the Continental GT Cup 2021. 2021 marks the 120th anniversary of Royal Enfield, and there are several initiatives planned to celebrate this milestone.

    Lees ook:

  • Toyota Joins Opposition To Proposed US EV Tax Credit

    Toyota Joins Opposition To Proposed US EV Tax Credit

    Toyota urged Washington on Tuesday not to “play politics” with environmental issues by offering tax credits for US-made electric vehicles, joining a chorus of foreign opposition to the issue. President Joe Biden’s focus on helping blue-collar American workers led to a proposal in his Build Back Better legislation to offer $4,500 in tax credits for electric vehicles built in the United States by union workers.

    Toyota, with 10 US-based auto plants employing 36,000 workers, favors “incentives for the purchase of electric vehicles to speed the transition” to all-electric, the company said in a statement.

    However, the Japanese automaker said the proposed credits for union-made vehicles devalue the work of those who chose not to join a union, and send a message that promoting unions is more important than combating climate change.

    “Let’s not play politics with the environment, the American autoworker or the American consumer,” Toyota said.

    “This isn’t fair. This isn’t right.”

    Washington’s major trading partners Canada and Mexico also sent letters to American congressional leaders in the past week objecting to the tax credits, saying they violate US commitments under the United States–Mexico–Canada Agreement governing trade.

    Canadian Trade Minister Mary Ng also warned the action would undermine the highly integrated continental auto industry.

    “If passed into law, these credits would have a major adverse impact on the future of EV and automotive production in Canada, resulting in the risk of severe economic harm and tens of thousands of job losses in one of Canada’s largest manufacturing sectors,” Ng said.

    “US companies and workers would not be isolated from these impacts.”

    A letter from Mexico’s US ambassador Esteban Moctezuma Barragan and two dozen other ambassadors said the tax credit “conflicts with the goal of the quick deployment of new sustainable technologies” since it would apply to only two vehicles out of over 50 electric vehicles currently available.

  • MG Astor Deliveries Begin In India

    MG Astor Deliveries Begin In India

    MG Motor India has commenced the deliveries for the Astor compact SUV, which went on sale in the country last month. On the auspicious occasion of Dhanteras, the Chinese-owned British carmaker has delivered the first batch of over 500 units of the Astor to customers despite the ongoing chip shortage. The company plans to deliver about 4000 units to 5000 units by the end of next month. MG is now accepting bookings for the Astor for delivery in 2022. Prices for the SUV start from ₹ 9.78 lakh for the base Style variant, and go all the way up to ₹ 17.38 lakh for the top-of-the-line Sharp (O) (all prices are introductory ex-showroom, India).

    Announcing the commencement of deliveries, MG Motor India said, “After receiving a good response for Astor, India’s first SUV with personal AI assistant and first-in-segment Autonomous (Level 2) technology, MG Motor India has delivered the first batch of more than 500 vehicles to customers on the auspicious occasion of Dhanteras. This is particularly special considering the acute shortage of chips. The company is trying its best to improve the availability to meet its initial target of 4000-5000 deliveries by December end 2021.”

    The Astor is one of the most tech-laden SUVs from MG which comes with a personal AI assistant and Level 2 autonomous tech with ADAS features. The SUV is available in four variants – Style, Super, Smart, and Sharp with two engine options on offer – 1.5-litre VTi-Tech petrol and a 1.4-litre 220 Turbo AT petrol. The former is a naturally aspirated unit that makes 108 bhp at 6000 rpm with 144 Nm at 4400 rpm of peak torque. The motor comes mated to a 5-speed manual gearbox and an 8-speed CVT gearbox. The latter is a more powerful turbo petrol engine, which is tuned to produce 138 bhp and 220 Nm. It is paired with a 6-speed automatic torque converter unit as standard.

    Lees ook:

    Lees ook:

    Lees ook:

  • Maserati And Hiroshi Fujiwara Launch Limited-Edition Capsule Collection of Streetwear Fashion

    Maserati And Hiroshi Fujiwara Launch Limited-Edition Capsule Collection of Streetwear Fashion

    Italian automaker Maserati and Fragment founder Hiroshi Fujiwara, one of the most influential designers in streetwear fashion collaborated for the first time earlier this year for the global launch in Tokyo of Maserati meets Fragment. The collaborators have come together once again for the launch of the Fragment meets Maserati, a limited-edition capsule collection of streetwear staples co-created by Fujiwara and Maserati.

    The collection comprises two styles of hoodies, oversized t-shirts and a baseball cap emblazoned with the signifiers of these two iconic brands. The Capsule Collection brings together Fujiwara’s rebellious style and Maserati striking design. The Fragment meets Maserati capsule collection is available worldwide at Maserati Stores and on Hypebeast’s e-commerce platform.

    Earlier this year, the Italian carmaker and the streetwear designer collaborated to bring the Maserati Ghibli Operanera and the Ghibli Operabianca special-edition cars. These special edition models were limited to only 175 units globally and are meant to symbolise “the deconstruction of convention, a rebirth of hope and unmistakable statements of intent.”

    Sprucing up the Ghibli were elements like the premium leather and Alcantara interiors with contrasting silver inserts. The seatbelts were done up in dark blue, while the grille and trident logo were tricked out. Both versions also got the 20-inch Uranus matte black alloy wheels and a badge with the Fragment logo on the C-pillar.

    Lees ook:

    Lees ook:

  • Apple’s Talks With Chinese Battery Makers CATL And BYD

    Apple’s Talks With Chinese Battery Makers CATL And BYD

    Apple Inc’s talks with China’s CATL and BYD over battery supplies for its planned electric vehicle have been mostly stalled after they refused to set up teams and build U.S. plants that would solely cater to the tech giant, three people with knowledge of the discussions said.

    The firms informed Apple sometime in the past two months that they were not able to meet its requirements, the people said. But the U.S. company has not given up hope of resuming talks with either CATL or BYD, according to one source.

    Chinese battery makers are more advanced than rivals in the development of lithium iron phosphate (LFP) batteries which are cheaper to produce and sources have previously said Apple favors this battery technology.

    CATL, the world’s No.1 maker of batteries for EVs, has been reluctant to build a U.S. factory due to political tensions between Washington and Beijing as well as cost concerns, said one of the people with direct knowledge of the talks.

    The Chinese firm has also found it impossible to set up a separate product development team exclusively working with Apple due to difficulties in finding sufficient personnel, the person added.

    BYD, which has an iron-phosphate battery plant in Lancaster, California, declined to build a new factory and team that would solely focus on supplying Apple, said two of the sources.

    The stalled discussions have meant that Apple has been considering Japanese battery makers and it sent a group of people to Japan this month, they added.

    Panasonic Corp is one of the companies that Apple is considering, said one of the people.

    The sources declined to be identified as the talks were confidential. Apple, BYD and Panasonic declined to comment.

    CATL said in a statement to Reuters that it denied “the relevant information”.

    “We are evaluating the opportunity and possibility of manufacture localization in North America,” the statement said, adding that it has a dedicated professional team exclusively for each customer.

    Sources said last year Apple was aiming to launch an electric car by 2024. Apple has not publicly disclosed its plans. The stall in discussions comes at a time when U.S. President Joe Biden is seeking to make the United States a powerhouse in electric cars, setting a goal of having half of all new vehicles sold in 2030 electric.

    Any delays in securing battery supplies could further impede EV development for Apple which last month lost the head of its car project, Doug Field, after he decided to return to Ford Motor Co.

    Tesla Inc, which has been making some of its Model 3 and Model Y cars in China with LFP batteries from CATL, said this week it intended to use that battery chemistry outside China as well.

    CATL and BYD use a type of battery pack technology to improve the performance of LFP batteries. Without that, LFP batteries usually offer much shorter driving ranges and lower energy density than the more expensive lithium batteries that use cobalt and nickel.

    Lees ook:

    Lees ook:

  • Rolls-Royce Announces Black Badge Ghost

    Rolls-Royce Announces Black Badge Ghost

    The Black Badge has been a highly successful alter ego of Rolls-Royce and it now represents more than 27 percent of commissions worldwide. Rolls-Royce debuted Black Badge with Wraith and Ghost in 2016, followed by Dawn in 2017 then Cullinan in 2019. And now another joins this elite club – the Black Badge Ghost. Conceived in response to a group of clients who requested a Rolls-Royce that was agile, discreet, highly connected and free of any superfluous design, the new Ghost is not just the most technologically advanced Rolls-Royce yet, but also the most aesthetically pure.

    In the twelve months since this motor car has been available, it has become one of the fastest-selling products in the marque’s history, having sold more than 3500 examples worldwide. With the Black Badge Ghost, Rolls-Royce is giving its customers a choice to select any of the marque’s 44,000 colours or create their own entirely unique Bespoke hue.

    To match this dramatic coachwork, the marque’s Bespoke Collective of designers, engineers and craftspeople collaborated to create an entirely customizable process that allows Rolls-Royce hallmarks such as the high-polished Spirit of Ecstasy and Pantheon Grille to be subverted. Instead of simply painting these components, a specific chrome electrolyte is introduced to the traditional chrome plating process that is co-deposited on the stainless-steel substrate, darkening the finish. Its final thickness is just one micrometer – around one-hundredth of the width of a human hair. Each of these components is precision-polished by hand to achieve a mirror-black chrome finish before it is fitted to the motor car.

    The exterior treatment resolves with a Bespoke 21-inch composite wheelset. Designed in the Black Badge house style and reserved for Black Badge Ghost, the barrel of each wheel is made up of 22 layers of carbon fibre laid on three axes, then folded back on themselves at the outer edges of the rim, forming a total of 44 layers of carbon fiber for greater strength. A 3D-forged aluminum hub is bonded to the rim using aerospace-grade titanium fasteners and finished with the marque’s hallmark Floating Hubcap, ensuring the Double R monogram remains upright at all times. To celebrate the material substance and remarkable surface effect, a lightly tinted lacquer is applied to protect the finish but still allow clients to observe the technical complexity of the wheel’s unique carbon fibre construction.

    Advanced luxury materials have been meticulously created and crafted for a unique ambiance in the interior suite. While recalling the dramatic mechanical intent of Black Badge Ghost, the materials are true to Ghost’s Post Opulent design philosophy – one defined by authenticity and material substance rather than overt statement. In this spirit, a complex but subtle weave that incorporates a deep diamond pattern rendered in carbon and metallic fibres has been created by the marque’s craftspeople.

    Multiple wood layers are pressed onto the interior component substrates, using black Bolivar veneer for the uppermost base layer. This forms a dark foundation for the Technical Fibre layers that follow. Leaves woven from resin-coated carbon and contrasting metal-coated thread laid in a diamond pattern are applied by hand to the components in perfect alignment, creating a three-dimensional effect. To secure this extraordinary veneer, each component is cured for one hour under pressure at 100 degrees Celsius.

    The Black Badge Ghosts comes with a twin-turbocharged 6.75-litre V12 engine pushing out 592 bhp and total torque is now up by 50 Nm to 900 Nm. The powertrain has also received Bespoke transmission and throttle treatments to further enhance the engine’s increased power reserves. The ZF eight-speed gear box and both front- and rear-steered axles work collaboratively to adjust the levels of feedback to the driver, depending on throttle and steering inputs.

    As with all products in the marque’s Black Badge portfolio, the ‘Low’ button situated on the gear selection stalk unlocks Black Badge Ghost’s full suite of technologies. This is asserted by the amplification of the motor car’s engine through an entirely new exhaust system, subtly announcing its potency. All 900Nm of torque is available from just 1700rpm and, once underway in Low Mode, gearshift speeds are increased by 50% when the throttle is depressed to 90%, delivering Black Badge Ghost’s abundant power reserves with dramatic immediacy.

    Lees ook:

  • Auto registration fee to be halved again

    Auto registration fee to be halved again

    The Ministry of Finance has said the registration fee for locally manufactured automobiles will be halved for six months until May 15 next year.

    If the government issues the decree for the purpose after Nov. 15, the fee cut would apply from Dec. 1 to May 31, it said, explaining the reduction is meant to stimulate demand and help boost investment and revive supply chains in the auto industry.

    When the fee was similarly cut in the second half of last year, it helped increase auto sales and tax collection increased by VND14.11 trillion ($613.48 million).

    Over 102,900 automobiles produced in the country were registered in the first half of last year, and the number doubled in the second half when the fee was halved.

    Some neighboring countries like Indonesia and Malaysia have also offered preferential treatment to their domestic automobile industry amid the Covid outbreaks, it added.

    Eleven foreign automobile firms that do not manufacture in Vietnam, including Audi, Volkswagen, Subaru, Volvo, Jeep, and Porsche, recently called on the government to apply the registration fee cut also to imported vehicles.

    The Vietnam Automobile Manufacturers Association had also called on the ministry for similar cuts for both local products and imports, but the ministry rejected it as not appropriate.

    The association said its members sold 170,073 vehicles in the first nine months of this year, a year-on-year decrease of 1 percent. The numbers do not include sales of Audi, Jaguar-Land Rover, Subaru, Volkswagen, Volvo and some others who did not reveal their numbers.

    According to the General Statistics Office, Vietnam imported 112,000 complete built-up vehicles in the nine-month period, up 67.9 percent.

    Lees ook:

    Lees ook:

  • Chipmaker Infineon Plans 50% investment Boost

    Chipmaker Infineon Plans 50% investment Boost

    German chipmaker Infineon Technologies said on Tuesday it plans a 50% hike in investments next year, boosting its shares as it looks to benefit from soaring demand and a global shortage in semiconductors. Infineon said it would invest around 2.4 billion euros ($2.8 billion) in 2022, up from about 1.6 billion euros this year.

    The leading supplier of chips to the auto industry forecast revenue would grow by a mid-teens percentage next year, with a segment result margin – a measure of operational profitability – of around 20%, up from a 2021 target for 18%.

    “The main part of the sales growth will come from capacity building, but also a decent part from higher prices, some of which we will pass on to customers,” Schneider said.

    Infineon opened a 1.6 billion euro plant in Austria last month, boosting its ability to supply power chips for cars, data centres and renewable power.

    The company has blamed a lack of investment in new capacity by its manufacturing partners for tightness in semiconductor markets as demand rebounded after coronavirus lockdowns, disrupting chip supplies, especially in the car industry.

    Contract chipmakers have invested chiefly in the production of higher-margin processors used in devices like smartphones, leaving existing plants unable to meet demand for the older chips used in cars.

    Infineon opened a 1.6 billion euro plant in Austria last month, boosting its ability to supply power chips for cars, data centres and renewable power.

    The Munich-based firm could decide to build another factory soon, assuming the rapid adoption of electric vehicles continues to take up capacity in its existing plants, Stifel analyst Juergen Wagner predicted.

    Schneider said he expected the shortage of chips to drag on well into 2022, welcoming European efforts to increase semiconductor production capacity.

    Infineon confirmed guidance for 2021 revenues of 11 billion euros.

    Lees ook:

  • Porsche Taycan Electric Sports Car India Launch Date Announced

    Porsche Taycan Electric Sports Car India Launch Date Announced

    The long wait for the Porsche Taycan in India is over and the company is all set to launch the all-electric sports car in the country in November. The company will launch the car on November 12, along with the new Macan. We have been awaiting the arrival of the Taycan in the country and we can’t wait to see it in the flesh soon.

    Globally, the Taycan has had phenomenal success. The company has already sold 28,640 units of the electric sports car in the first 9 months of 2021 and that’s a big deal. With India on the map too, sales will definitely get a boost, considering that a lot of people have been awaiting the launch of this car in the country.

    The Porsche Taycan sports two permanently excited synchronous electric motors that can churn out a maximum of 600 bhp and will a range of over 500 km thanks to its high voltage lithium-ion batteries. The electric car will get 800-volt chargers with fast charging capability, which can offer a 400 km range in 15 minutes of charge time. It can go from 0-100 kmph in under 3.5 seconds.

    Lees ook:

    Lees ook:

  • Electric Vehicle Battery Startup ONE Backed By BMW

    Electric Vehicle Battery Startup ONE Backed By BMW

    Michigan-based Our Next Energy, which is developing an advanced battery for electric vehicles, has raised $25 million from investors ranging from German automaker BMW to a clean technology venture firm headed by Microsoft co-founder Bill Gates, the young company said on Monday.

    Investors in ONE’s Series A round include BMW iVentures, Detroit-based Assembly Ventures and Chicago-based Volta Energy Technologies, which is partnered with Argonne National Laboratories. Another investor is Singapore-based electronics manufacturer Flex Ltd, which is also a strategic partner with ONE.

    The round was led by Breakthrough Energy Ventures, the investment arm of Breakthrough Energy, founded by Gates in 2015 to support and fund innovations to counter climate change. Among the Kirkland, Washington company’s investments: Battery recycler Redwood Materials, electric aircraft maker ZeroAvia and solid-state battery developer QuantumScape.

    ONE, a year-old startup that only recently emerged from stealth mode, is working on a dual battery that combines a structural cell-to-pack design that uses cobalt- and nickel-free cathodes, with a second, high-energy pack that can recharge the first, potentially doubling vehicle range to 750 miles.

    ONE founder and chief executive Mujeeb Ijaz, a battery systems engineer with more than 30 years’ experience at Ford Motor Co, Apple Inc and A123 Systems, said of the financial backers, “We wanted to surround ourselves with people who are in this for the long term. They can help our company grow, and they are also magnets for other technology.”

    The new investment will help fund research and development, ranging from battery software and power electronics to artificial intelligence and machine learning, Ijaz said.

    “We plan to go from raw materials all the way to (battery) cell manufacturing,” he said, adding that ONE may seek additional funding and partners next year to help the company scale-up manufacturing.

  • Elon Musk Shares Secret About CyberTruck Mirrors

    Elon Musk Shares Secret About CyberTruck Mirrors

    When the CyberTruck was unveiled for the first time in 2019 it had these cameras which doubled as side-view mirrors. But at the time many believed that the regulators aren’t going to allow Tesla to pull off this stunt. So more recently, the car was indeed seen with mirrors. But these mirrors ruin the seamless symmetry and the cyberpunk futurism of the car. Now, in a tweet, Elon Musk has revealed that the mirror is required by the law but they have been designed in such a way that they can be removed easily by the owners.

    The side-view mirrors are a requirement of the US Federal Motor Vehicle Safety Standard referred to as Rear Visibility. The side mirrors assure that the driver has a good view of obstacles around the sides and the rear of the truck.

    Tesla strived to remove the mirrors altogether as modern cars also come with blindspot detection cameras as well as rearview cameras which help in reversing. Tesla has always future-proofed its cars with advanced hardware and constant software updates and if and when the regulation is changed Tesla has added the ability for its owners to remove the mirror as the cameras are already baked in.

    Tesla’s vehicles also come with advanced autonomous capability and the Cybertruck will be the first car it releases that will come with a new generation of self-driving chips and cameras. In other words, these cars by the time they come out in 2022 will have the latest hardware and software and an old-school solution like side-view mirrors will be hugely redundant.

    Lees ook:

  • Tesla Zooms Past $1 Trillion Market Cap On Bet That The EV Future Is Now

    Tesla Zooms Past $1 Trillion Market Cap On Bet That The EV Future Is Now

    Tesla is the first carmaker to join the elite club of trillion-dollar companies that includes Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet Inc.

    Most automakers do not boast about sales to rental car companies, often made at discounts to unload slow-selling models. But for Tesla and its investors, Hertz’s decision to order 100,000 Tesla vehicles by the end of 2022 showed electric vehicles are no longer a niche product, but will dominate the mass car market in the near future.

    “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim Chief Executive Officer Mark Fields told Reuters.

    Tesla Chief Executive Elon Musk has set an annual sales growth target of 50%, on average, eventually reaching 20 million vehicles a year. That would be more than twice the volume of current sales leaders Volkswagen AG and Toyota Motor Corp.

    Consumer demand for electric vehicles is turning a corner in some major markets. The Tesla Model 3 was the best-selling vehicle of any kind in Europe last month, consulting firm JATO Dynamics reported Monday.

    Tesla also appeared on Monday to be making progress resolving regulatory problems that threatened its business in China. The company said it had opened a new data and research center in Shanghai to comply with government requirements that data collected from vehicles in China stay in the country.

    However, Tesla faced new U.S. regulatory pressure on Monday. The National Transportation Safety Board’s new chief sent Musk a letter questioning why Tesla was rolling out its “Full Self Driving” software even though the company has not officially responded to the NTSB’s questions about the automated driving system’s safety.

    “It (the Hertz order) puts an exclamation point under guidance for 50%+ growth in deliveries,” Roth Capital analyst Craig Irwin said. “Another solid piece of evidence EVs are going mainstream.”

    Tesla now faces the daunting day-to-day challenge of becoming a high-volume automaker growing at a rate not seen since the early 1900s when demand exploded for Henry Ford’s Model T.

    Tesla is coping with an order backlog for its vehicles and extended supply chain disruptions. Tesla Chief Financial Officer Zachary Kirkhorn cautioned investors during a call last week that Tesla’s near-term production goals will hinge on resolving those disruptions and ramping up two new, huge assembly and battery plants in Austin and Berlin.

    “There is quite an execution journey ahead of us,” Kirkhorn said.

    Rivals are not sitting still. Daimler AG’s Mercedes-Benz brand, General Motors Co, Ford Motor Co, and startups such as Lucid and China’s Xpeng are all battling Tesla with new electric cars or trucks.

    Investors and analysts, for now, are looking past the near-term challenges. Morgan Stanley boosted its Tesla price target by 33% to $1,200 as the brokerage expects the electric carmaker to surpass 8 million deliveries in 2030.

    The Hertz deal also underscored the power of the Tesla brand, as the rental car company emerges from bankruptcy and aims to revive its once-dominant brand. Hertz’s rescue is led by a group of investors including Knighthead Capital Management, Certares Opportunities and Apollo Capital Management.

    Lees ook: