Tag: tesla

  • South Korea Changes Rules On EV Cars

    South Korea Changes Rules On EV Cars

    EV or electronic vehicle is slowly rising to the competition in the automobile industry. South Korea already made changes to their rules to those who are interested in EVs.

    The South Korean government will change one of their rules when it comes to EVs. South Korea is known for having a market for premium cars. They’re even part of Tesla Motors’ reservation of the company’s upcoming vehicle model, the Model 3. According to Tesla’s website, the Model 3 is an affordable premium sedan. Model 3 is designed to achieve that highest rating when it comes to safety measures.

    South Korea will be removing subsidies when it comes to EVs with high-capacity batteries. This move could change the EV market in the country since this will allow other longer-ranged models to be available in the market. By removing the subsidies for the EV market, more and more models of the EV will be available at an affordable rate.

    This will also prove to be good for Tesla. The motors company will conduct their first Tesla showroom in South Korea this year. The exact date for the facility is to be revealed sometime soon. With the South Korean government changing their rules for subsidies when it comes to high-battery powered EVs, more and more models from Tesla will be available for the Korean market this year. Aside from Tesla, BYD, the world’s largest EV maker is also planning to enter the Korean market of EVs. BYD encountered a problem because their latest model doesn’t qualify for the subsidy, thus resulting in the delay of the company to join the market, according to Reuters.

    Currently, there are about four thousand electric vehicles roaming the streets of South Korea. Once the government implements this change, there might be a triple amount of EV cars in the country.

  • Tesla settles Norway lawsuit over car’s performance

    Tesla settles Norway lawsuit over car’s performance

    Electric carmaker Tesla Motors Inc has reached an out-of-court settlement with 126 Norwegian customers who claimed their cars’ performance did not match promises made in the firm’s marketing.

    Lawyers for the owners and the company told the Oslo District Court in a joint letter they wanted to withdraw the case which had been due to start on Monday, a court spokeswoman said.

    Kaspar Nygaard Thommessen of Oslo-based law firm Wikborg Rein, who represented the car owners, told Reuters a settlement had been reached in recent days and the case had been resolved.

    He declined to provide details of the settlement.

    Norwegian business newspaper Dagens Naeringsliv (DN) said on Sunday Tesla had agreed to pay 65,000 Norwegian crowns ($7,700) to each car owner, about half of what they demanded, or allow them to choose from alternative options, including car upgrades.

    The case involved Tesla’s Model S P85D, which the car owners said had a lower horsepower than stated by Tesla. The company has denied misleading the buyers.

    While the Model S PD85 is no longer offered in Norway, similar Tesla Model S cars range from $95,000 for the 90D version to $135,000 for the P100D, according to the company’s Norwegian price website. Most buyers will also pay for add-ons that raise the price further.

    Norway is among the world’s top markets for electric cars thanks to generous government subsidies aimed at increasing the electrification of transport.

    The registration of new Tesla cars in Norway fell by 24 percent in the first 11 months of 2016 compared with 2015, according to data from lobby group Road Traffic Information Council (OFV).

  • Tesla Motors to get semiconductors from Samsung Electronics

    Tesla Motors to get semiconductors from Samsung Electronics

    Samsung Electronics will supply semiconductors to US electric car maker Tesla Motors, South Korea’s Electronic Times reported on Friday citing unnamed sources.

    Samsung would contract manufacture chips for self-driving features in Tesla vehicles, the paper reported, without putting a value on the order.

    The South Korean firm has been trying to build auto-related sales for components such as semiconductors and displays in a push to develop a new growth engine.

    Samsung in November said it would acquire Harman International Industries for $8 billion in a bid to grow quickly in the automotive market.

    Samsung did not immediately comment on the report, while Tesla could not be immediately reached for comment.

  • Tesla Motors Opens First Showroom In South Korea’s Largest Mall

    Tesla Motors Opens First Showroom In South Korea’s Largest Mall

    Teslarati reported on November 28 that Tesla Motors is all-set to open its first showroom inside South Korea’s largest shopping mall, the Starfield Hanam Complex. The store is expected to open today. However, the news didn’t do much to the stock as TSLA declined 0.41% during after-hours trading on Monday.

    The company’s latest store in Gyeonggi Province would be its first retail outlet in South Korea. With its entry, Tesla may provide tough competition to the region’s largest automaker; Hyundai Motor. The latter is also expected to open a store in Starfield. Moreover, the company is expected to launch its competitively priced Electric Vehicle (EV) before the year-end.

    Moreover, executives of Starfield Hanam indicated that they were notified about the store’s opening date. However, they believe that the date may be delayed, depending on the company’s preparations.

    Teslarati reported: “While the Silicon Valley-based automaker takes aim at expanding its retail presence in South Korea, the company is also busy with laying the ground work for the build out of its Supercharger network across the country.” The company is also reportedly viewing its plans of building supercharging stations around Seoul.

    The report further mentioned that TSLA has also invested in constructing another showroom within the country’s high-end Gangnam district. The district is also considered as the Rodeo Drive of South Korea. Earlier in September, the company had signed a $439,059 lease to get its hands on a three-story upscale commercial building in the district. The store is expected to be surrounded by Ferrari, Lamborghini, and Bentley showrooms. Moreover, neighboring stores will also include Cartier, Dior, and Hermes.

    Wall Street analysts have assigned a PT of $225.13 with a 14.8% upside over the last closing price. Analysts’ ratings include 3 Buy, 1 Overweight, 9 Hold, two Underweight, and four Sell.

  • Tesla to open its first Korean showroom on November 29th

    Tesla to open its first Korean showroom on November 29th

    The U.S.-based electric carmaker Tesla Motors will open its first Korean showroom at the Starfield Hanam shopping mall in Gyeonggi Province, Nov. 29.

    A Starfield Hanam official said he received an in-house notice of the Tesla showroom opening date.

    “However, the opening date may be moved up or delayed depending on Tesla’s preparations,” he added.

    Starfield Hanam, which had its grand opening on Sept. 9, is the largest shopping complex in Korea built as a joint venture between retail giant Shinsegae and U.S.-based shopping mall management company Taubman’s regional affiliate Taubman Asia.

    Before the grand opening, Tesla said Aug. 31 in a press release it would open its first Korean showroom on the second floor of the mall.

    The showroom is currently under construction, covered with a screen to hide the interior. However, Tesla has reportedly completed the ground construction for a charging station on the mall’s second-floor parking lot.

    The showroom will present Tesla’s Model S 90D, a full-size all-electric five-door luxury sedan.

    When the model was introduced in 2012, it received a perfect 5.0 from the U.S. National Highway Traffic Safety Administration (NHTSA) car safety rating. The U.S. Environmental Protection Agency (EPA) official range for the 2012 Model S equipped with an 85kWh battery pack is 426 kilometers.

    Tesla’s official webpage said the current Model S 90D’s range is 512 kilometers.

    Tesla has already received approval for emissions and noise standards from the Ministry of Environment, and is preparing for another approval with the Ministry of Land, Infrastructure and Transport (MOLIT). It is expected to take about two weeks to get MOLIT approval.

    Tesla is also preparing to open its second Korean showroom in Gangnam, southern Seoul.

    It reportedly signed a lease to rent a building in Cheongdam-dong on Sept. 1. It will use the building’s basement, first and second floors until Aug. 31, 2021.

    The Gangnam showroom is also currently under construction and Tesla officials visited the site last week to monitor the construction process.

    Tesla also announced last week via an email interview with ZDNet Korea, an IT-focused online newspaper, its plan to establish charging infrastructure in Korea.

    “Tesla is reviewing its plan to build a few supercharging stations in Seoul,” Atsuko Doi, Tesla’s head of communications for Asia Pacific, was quoted as saying.

    “We are discussing how to rent the sites for the charging stations.”

  • Tesla buys Grohmann Engineering to help ramp up electric car production

    Tesla buys Grohmann Engineering to help ramp up electric car production

    Electric carmaker Tesla Motors Inc has agreed to buy Germany’s Grohmann Engineering GmbH, which develops automated manufacturing systems for batteries and fuel cells, as the California-based company seeks to expand its production more than sixfold by 2018.

    Unlisted Grohmann Engineering, based in Pruem, Germany, helped Tesla rivals Daimler and BMW build production facilities for electric car batteries.

    Tesla is seeking to raise its global manufacturing capacity to 500,000 vehicles in 2018 from an expected production rate of about 80,000 this year. Its main production facility is in Fremont, California.

    “To date, we have increased the production rate at our Fremont Factory by 400 percent in four years, and we expect this acquisition to accelerate that growth rate,” Tesla said in a blogpost.

    Following the acquisition, which still needs to be approved by the cartel authorities in Germany, several elements of Tesla’s automated manufacturing systems will be designed and produced in Pruem, close to Germany’s border with the Netherlands and Luxembourg.

    The deal, whose financial terms were not disclosed, is expected to add over 1,000 engineering and skilled technician jobs in Germany over the next two years Tesla said in its blog. Grohmann currently has around 700 employees.

    Tesla agreed on Sunday to buy a 74.9 percent stake from company founder and majority owner Klaus Grohmann, and a further 25.1 percent stake belonging to private equity firm Deutsche Beteiligungs AG (DBAG), DBAG said in a statement on Tuesday.

    DBAG said it expected to earn in the mid single-digit million euro range by selling its stake in Grohmann and that Grohmann had revenues of 123 million euros ($136 million) in 2015.

    DBAG said Grohmann had developed production lines for battery cells and batteries for “numerous” German and international automobile manufacturers. Grohmann was also specialized in the industrial production of fuel cells, DBAG said, and was active in the electronic and semiconductor industries as well as the biotechnology and medical technology sectors.

    Grohmann Engineering will be renamed Tesla Grohmann Automation after the deal and will serve as the initial base for Tesla Advanced Automation Germany with other locations to follow, Tesla said.

    The deal is expected to close next year.

  • Tesla’s Musk unveils solar roof tiles, longer-lasting batteries

    Tesla’s Musk unveils solar roof tiles, longer-lasting batteries

    Tesla Motors Inc Chief Executive Elon Musk on Friday unveiled new energy products aimed at illustrating the benefits of combining his electric car and battery maker with solar installer SolarCity Corp.

    The products include solar-powered roof tiles that eliminate the need for traditional panels and longer-lasting batteries aimed at helping to realize Musk’s vision of selling a fossil fuel free lifestyle to consumers.

    “This is sort of the integrated future. An electric car, a Powerwall and a solar roof. The key is it needs to be beautiful, affordable and seamlessly integrated,” Musk said during an event to showcase the products at the Universal Studios theme park near Los Angeles. “If all those things are true why would you go any other direction?”

    Musk is the biggest shareholder in both Tesla and SolarCity, which is run by two of his first cousins. Analysts have been dubious of the deal’s proposed synergies, with some suggesting the merger is a way for Tesla to rescue money-losing SolarCity. A vote on the acquisition is scheduled for Nov. 17.

  • Tesla rents second space in Korea to go Gangnam-style

    Tesla rents second space in Korea to go Gangnam-style

    Tesla Motors is preparing to open a second showroom in Korea in Gangnam, southern Seoul. Its first will open in the Starfield Hanam shopping mall in Gyeonggi in less than two months.

    A lease on three floors of a five-story building in Cheongdam-dong, 131-11, known as Yeongdongdaero 730 under the new address system, was signed by Tesla Motors Korea on Sept. 1. Tesla will rent the building’s basement, first and second floors through Aug. 31, 2021. The rent is 500 million won ($439,059) for the entire period, the document shows.

    The landlord is Bora Trading, a Seoul-based importer of Italian food products including the De Cecco pasta brand.

    Tesla made it official Sept. 2 that it would open its first Korea showroom in Starfield Hanam, a shopping mall that was opened Sept. 9 by retail giant Shinsegae, by December. The announcement came 10 months after the American electric vehicle pioneer opened an office in Samseong-dong, southern Seoul.

    Second showroom for Korea in a building in Cheongdam-dong, 131-11, 

    Tesla confirmed its rental in Gangnam.

    “We have just registered a building on Yeongdong Boulevard,” said Atsuko Doi, Tesla’s head of communications for Asia Pacific, in an email. She added the company hasn’t “planned in detail how we use it.”

    Regarding rumors among auto enthusiasts in Korea that Tesla may choose not to open the showroom in the 212-square-meter (2,281-square-foot) space in Starfield Hanam, she described them as “incorrect.”

    When visited on Monday by the Korea JoongAng Daily, the space Tesla has rented from Bora Trading was already under remodeling. Previously an Italian restaurant, the old interior was torn down completely. One of the workers on the scene said they are working on an automobile showroom without elaborating further. The process is expected to be finished in a month, which would indicate it could open in November at the earliest.

    There is speculation Tesla will open two showrooms simultaneously. The one in Gangnam will be more symbolic of Tesla’s attempt to be considered a luxury brand.

    Cheongdam-dong is Seoul’s swankiest area full of luxury-brand stores including Dior, Cartier and Hermes. Showrooms for Lamborghini, Ferrari and Bentley are less than 1 kilometer from Tesla’s space. Korea’s top automaker, Hyundai Motor, is scheduled to complete by 2021 a 105-story new headquarters just 1.6 kilometers farther down Yeongdong Boulevard.

    The building in Gangnam has been optimized to serve as a car showroom. It was established in 2004 by KUZ Plus, which was the official importer of Ferrari and Maserati until 2006. The floors are framed by huge glass windows to display vehicles.

    In Asia, the California-based company led by business magnate Elon Musk opened its first showroom in October 2010 in Tokyo’s trendy Aoyama district. Now there are three in Japan. Tesla runs 21 stores in China, three in Hong Kong and one in Taiwan, which opened in July.

     

  • Tesla posts 70 percent rise in quarterly deliveries, backs 2016 target

    Tesla posts 70 percent rise in quarterly deliveries, backs 2016 target

    Tesla Motors Inc said on Sunday its third-quarter deliveries rose 70 percent to 24,500 cars, following production improvements, cheaper lease deals and reports of discounts on some vehicles.

    Deliveries are a key metric of performance for the luxury electric vehicle manufacturer, which had missed these targets in the previous two quarters.

    The improved deliveries for the third quarter bring Tesla closer to meeting its second-half 2016 target of 50,000 vehicles, which it reiterated on Sunday. It said in a statement that fourth-quarter deliveries would be “at or slightly above” the third quarter’s.

    However, the third-quarter figures included 5,150 vehicles in transit at the end of the second quarter, as Tesla reported in July. Another 5,500 cars in transit would be counted in the fourth quarter, it said.

    Meeting the third-quarter target was a priority for the money-losing Silicon Valley carmaker, which is hoping to raise funds from the equity market later this year for multiple efforts, including building out its factory for the Model 3 mass-market sedan due in late 2017 and the planned acquisition of SolarCity Corp (SCTY.O).

    Tesla experienced production problems earlier this year and began to resolve them in June. It said in July that production would improve from 2,000 cars a week to 2,200 in the third quarter and 2,400 in the fourth.

    Production rose in the third quarter to 25,185 vehicles, implying just shy of 2,000 vehicles per week.

    The company will release third-quarter financial results in early November.

    Chief Financial Officer Jason Wheeler said in August that if second-half production and delivery targets are met, the company had a “great chance of being non-GAAP profitable,” without specifying a time period.

    In September, Tesla began advertising its inventory cars, for showrooms or test drives, “at favorable prices and ready for expedited delivery.”

    Some analysts expressed concern that discounts, reported extensively on online Tesla forums, would undermine margins.

    Last week, Chief Executive Officer Elon Musk published a memo telling employees to follow the company’s policy of not offering discounts on new cars.

    Musk was responding to a research note published on Tuesday by Pacific Crest Securities analyst Brad Erickson criticizing Tesla for offering discounts on Model S inventory cars, not those built-to-order for specific customers, to boost third-quarter sales.

  • LeEco India ready to roll out 1000 stores

    LeEco India ready to roll out 1000 stores

    Chinese tech firm LeEco India plans to open 1000 outlets across the subcontinent by the end of this year.

    Expecting half of its revenue in India to come from physical stores, LeEco filed an application five months ago with the Foreign Investment Promotion Board (FIPB) to open single-brand retail stores.

    These will be a mix of company-owned stores as well as franchise outlets, says LeEco India COO for smart electronics business Atul Jain. “This is in line with our aim to be among top three brands in the country by 2018.”

    LeEco, which also has an offline presence in China, has not revealed the cost of setting up the stores. However, it will be spending nearly US$10 million on marketing in the three months starting October.

    Already the company has tied up with multiple distributors across organised and unorganised channels in India and is already available in about 3000 outlets in cities including Bengaluru, Chennai, Delhi, Mumbai, Pune and Varanasi. It expects to reach 65 cities and have a presence in 6000 to 8000 outlets by December.

    No longer exclusive

    Launched exclusively on Flipkart, LeEco’s products will now be available on other eCommerce marketplaces such as Amazon India and Snapdeal. Flipkart has contributed nearly 75 per cent of LeEco’s sales in India.

    LeEco has invested Rs.50 crore (US$500 million) in setting up a smartphone assembly plant in the Greater Noida area, in partnership with Compal Electronics. The factory has an initial capacity of 60,000 units a month but this will be ramped up to 200,000 by the end of December.

    By the second half of next year, the company plans to start exporting products to Hong Kong, Indonesia, Malaysia, Russia and Singapore, says Jain. LeEco sold more than 70,000 phones and 2000 televisions last month alone.

    Other plans include a partnership with Hungama to offer music services from next month.
    Founded by billionaire Jia Yueting in 2004, LeEco positions itself as the Apple, Netflix and Tesla of China. Apart from smartphones and online content, the company sells TVs, electric vehicles and virtual-reality headsets.

  • Tesla’s Musk says new Autopilot likely would have prevented death

    Tesla’s Musk says new Autopilot likely would have prevented death

    Tesla Motors Co Chief Executive Elon Musk said on Sunday the automaker was updating its semi-autonomous driving system Autopilot with new limits on hands-off driving and other improvements that likely would have prevented a fatality in May.

    Musk said the update, which will be available within a week or two through an “over-the-air” software update, would rely foremost on radar to give Tesla’s electric luxury cars a better sense of what is around them and when to brake.

    New restrictions of Autopilot 8.0 are a nod to widespread concerns that the system lulled users into a false sense of security through its “hands-off” driving capability. The updated system now will temporarily prevent drivers from using the system if they do not respond to audible warnings to take back control of the car.

    “We’re making much more effective use of radar,” Musk told journalists on a phone call. “It will be a dramatic improvement in the safety of the system done entirely through software.”

    Tesla’s Autopilot, introduced in October, has been the focus of intense scrutiny since it was revealed in July that a Tesla Model S driver, Joshua Brown, was killed while using the technology in a May 7 collision with a truck in Florida.

    The National Highway Traffic Safety Administration (NHTSA) has been investigating Tesla’s Autopilot system since June because of the fatal accident. The agency had been briefed on the changes by Tesla and would review them, spokesman Bryan Thomas said. He declined to offer an update on the Tesla investigation.

    Musk said it was “very likely” the improved Autopilot would have prevented the death of Brown, whose car sped into the trailer of a truck crossing a highway, but he cautioned that the update “doesn’t mean perfect safety.”

    “PROBABILITY OF SAFETY”

    “Perfect safety is really an impossible goal,” Musk said. “It’s about improving the probability of safety. There won’t ever be zero fatalities, there won’t ever be zero injuries.”

    One of the main challenges of using cameras and radars for a braking system is how to prevent so-called false positives, in which a car might think an overhead highway sign, for example, was an obstacle to be avoided.

    Using radar and fleet learning, rather than relying primarily on cameras, would solve that problem, Musk said.

    “Anything metallic or dense, the radar system we’re confident will be able to detect that and initiate a braking event,” he said.

    Silicon Valley-based Tesla is known for its innovation in luxury electric vehicles but some critics, including rival carmakers, have said it was hasty in rolling out Autopilot. Tesla stood by Autopilot after the fatality.

    The revised system will sound warnings if drivers take their hands off the wheel for more than a minute at speeds above 45 miles per hour (72 kph) when there is no vehicle ahead, Musk said.

    The warning will sound after the driver’s hands are off the wheel for more than three minutes when the Tesla is following another car at speeds above 45 mph. The dashboard also will flash a pulsing light.

    If the driver ignores three audible warnings in an hour, the system will temporarily shut off until it is parked, Musk said.

    Advanced Autopilot users, rather than new users, were most likely to ignore warnings to put their hands back on the wheel, Musk said.

    Besides the fallout from the fatality, Musk has had to prepare for the Model 3 mass-market vehicle due late next year and completion of its Nevada battery factory, while trying to sell skeptical investors on the merits of a proposed acquisition of SolarCity.

    On Sept. 1, SpaceX, where Musk serves as CEO, sustained what he later called “the most difficult and complex failure” in the commercial space company’s history when a Falcon 9 rocket exploded on its launch pad in Cape Canaveral, Florida.

    “One of the worst weeks ever, really,” he told reporters.

    Musk said he had wanted to improve Autopilot’s capabilities last year but was told it was impossible to do so without incurring more “false positives,” such as a car braking suddenly for a harmless tin can.

    In July tweeted publicly that he was encouraged by talks with supplier Bosch about improvements to radar.

    “I wish we could have done it earlier,” he said on Sunday. “The perfect is the enemy of the good.”

  • Tesla opens website for online reservations in Korea

    Tesla opens website for online reservations in Korea

    Tesla Motors has begun taking online reservations in Korea for its electric cars, Model S, Model X, and Model 3, the company said Friday.

    With a deposit of 2 million won ($1,800) for the Model S, 5 million won for Model X and 1 million won for model 3, customers can make a reservation, it said in the first statement released for Korean press.

    “Korean customers have already shown a great interest in Tesla through reservations for Model 3,” it said. The model 3 is a Tesla electric vehicle that will be available starting at $35,000 in 2017.

    Test drives of the Model S in Korea will be available at its retail stores and events at the end of this year, the US carmaker said, without naming the location of stores. The model X will be showcased at the beginning of 2017, it added.

  • Tesla may open first dealership in Korea

    Tesla may open first dealership in Korea

    Tesla Motors, the Silicon Valley-grown electric vehicle manufacturer, may open its first Korea dealership in a Shinsegae Group shopping complex within this year.

    “The talks are positive, for sure, but the final confirmation has yet to be reached,” said a Shinsegae Group spokesperson.

    “If the final confirmation is made, Shinsegae Property, which is pursuing the deal with Tesla, will give us notice,” he added.

    According to industry sources Thursday, if negotiations succeed, Tesla will open its first Korean dealership in Shinsegae’s Starfield Hanam shopping complex in Gyeonggi as early as November. The complex is a 30-minute drive from Seoul’s Gangnam District.

    Tesla CEO Elon Musk also confirmed Seoul as one of his next targets along with Taipei and Mexico City for the company’s high-end electric vehicles.

    “We are also accelerating store openings and plan to add a new retail location every four days on average during the remainder of Q3 and through Q4,” said Musk in an earnings report distributed Wednesday.

    “We are adding stores in new population-dense markets like Taipei, Seoul, and Mexico City, while also adding stores in our most mature markets like California,” he added.

    Scheduled to open early next month, Starfield Hanam is Shinsegae Group Vice Chairman Chung Yong-jin’s ambitious project to make a retail complex that includes not only shopping venues but all sorts of entertainment- and leisure-related facilities such as a waterpark, cinema and aquarium. Korea doesn’t have such a complex.

    In addition to offering some 750 retail brands, the complex will also house Asia’s first BMW dealership that handles both the original BMW and Mini vehicles. Luxury motorcycle brand Harley Davidson will have a store that displays not only vehicles but also its clothes and accessories lines.

    Since last December, Tesla has been gearing up to enter Korea by registering the corporate name Tesla Korea Limited and sending out job advertisements for car dealers and mechanics.

    Korea’s retail giants have been sending out feelers to the prestige car company, counting on its attractiveness to the general public.
    Lotte World Mall in Jamsil District, eastern Seoul was considered a candidate to house a Tesla shop, but the negotiation fell apart early this year.

    Opening an independent dealership in Gangnam District was raised as another possible choice and Tesla is still reported to be considering that option.

    Tesla is known for a unique way of directly operating and managing its branches, instead of franchising dealerships as most carmakers do.

    Its first New York showroom, which Musk located in the funky Red Hook neighborhood of Brooklyn earlier this year, symbolizes the concept. It shows that a Tesla shop is not exclusively for car shoppers but is open to anyone interested in futuristic car technology. That also explains why many Tesla dealerships are in U.S. shopping malls.

    “The quality of our new locations is also improving as many shopping malls now consider us the new standard for an anchor tenant based on the amount of foot traffic that we draw and our very high revenue per square foot,” said Musk in the earnings report released Wednesday.

    If Shinsegae’s negotiations with Tesla succeed, its shop in Starfield Hanam will operate as a display until the Korean government allows the luxury electric vehicles on Korean roads

    In the meantime, Tesla’s second quarter earnings announced on Wednesday fell short of analysts’ expectations. It posted a $293 million net loss in the second quarter, a more than 60 percent drop compared to last year’s Q2 operating loss of $184 million.

     

  • Tesla in talks for store in Korea’s biggest mall

    Tesla in talks for store in Korea’s biggest mall

    Tesla Motors Inc. is in talks to open its first store in what will be South Korea’s biggest mall, according to the shopping complex’s owner Shinsegae Group.

    The two parties are negotiating over an outlet at Starfield Hanam, which is set to be the country’s largest mall when it opens in September, according to Shinsegae Group. Built jointly by Shinsegae Group and Taubman Asia, the four-story complex occupies an area the equivalent of 70 football fields and is located about six miles east of Seoul.

    Premium automakers including BMW are opening showrooms in retail districts to attract walk-in customers who wouldn’t otherwise visit car dealerships. Shinsegae Group owns Shinsegae Co. and E-MART Inc. and is South Korea’s second-largest retail conglomerate, behind Lotte Group.

    Atsuko Doi, a spokeswoman for Tesla in Tokyo, didn’t immediately reply to an email request for comment. Tesla said last month it plans to set up an office in Seoul, without giving further details. The U.S. electric vehicle maker advertised positions in sales, engineering, service and marketing in Seoul on its website. South Korea would be Tesla’s fourth market in Asia after China, Hong Kong and Japan.

    Separately, Hyundai Motor Co. said in an email that it will open its first premium Genesis brand store in the Starfield mall later this year.

  • BMW to develop driverless car technology with Intel, Mobileye

    BMW to develop driverless car technology with Intel, Mobileye

    BMW is teaming up with Intel and Mobileye to develop new technology for the auto industry that could put self-driving cars on the road by around 2021.

    The alliance highlights a shift in the dynamics of research and development in the car industry, which until recently saw automakers largely dictating terms for suppliers to manufacture their proprietary technologies at specified volumes and prices.

    Now carmakers are increasingly striking up partnerships with technology firms using open technology standards, seeking to harness their expertise in areas including machine learning and mapping as they race against Silicon Valley companies such as Google, Tesla and Apple to develop driverless vehicles.

    “Highly autonomous cars and everything they connect to will require powerful and reliable electronic brains to make them smart enough to navigate traffic and avoid accidents,” Intel Chief Executive Brian Krzanich said on Friday at a joint news conference announcing the alliance.

    The three companies said their new platform would be made available to multiple carmakers and they expected vehicles with highly and fully-automated driving would be brought into mass production by 2021. It is too early to say which other carmakers would join the alliance, BMW Chief Executive Harald Krueger said at a news conference on the outskirts of Munich on Friday.

    Sophisticated cruise control systems already enable “hands off” driving as cameras and computers allow cars to automatically brake, steer and accelerate in traffic at low speeds. But drivers are required to stay in control.

    Now BMW, Intel and Mobileye will develop cars with even higher levels of automation described as “eyes off,” “mind off,” and “driver off”. This requires much more computing power and software know-how, forcing traditional carmakers to collaborate more closely with technology specialists.

    Both industries see huge revenue opportunities in the market for autonomous vehicles, although it is unclear how many drivers will be prepared to relinquish control and how quickly laws will be put in place to allow fully autonomous vehicles on the roads.

    But creating common technology standards would help all manufacturers update their vehicles faster, Intel Chief Executive Brian Krzanich said. “That will be critical for advancing the safety aspects of this.”

    A common approach to standards will also make it easier for regulators to understand and approve the roadworthiness of a vehicle while still leaving enough scope for individual car manufacturers to customize their cars, Mobileye Chairman Amnon Shashua said.

    Beyond technological hurdles there are legal questions over who is responsible when a crash occurs. On Thursday, the driver of a Tesla Model S car, operating in Autopilot mode, was killed in a collision with a truck in the United States, prompting an investigation by federal highway safety regulators.

    When asked about the crash, BMW CEO Harald Krueger said: “The accident is very sad …. We believe today the technologies are not ready for series production,” he added, explaining the alliance had not forecast that until 2021.

    “For the BMW group, safety comes first,” he said.

    As part of the new alliance, Intel, the world’s largest computer chip maker which has been looking to expand into the automotive electronics market, will supply the microprocessors – or central processing units – to control an array of sensors.

    Auto camera and software maker Mobileye will supply its Road Experience Management (REM) technology and make its latest EyeQ5 chip available to be deployed on Intel computing platforms.

    The three companies said they would demonstrate their technology in a prototype in the near future.