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Tag: tesla

  • Tesla’s Price Cuts Promise More Pain For Money-Losing U.S. EV Startups

    Tesla’s Price Cuts Promise More Pain For Money-Losing U.S. EV Startups

    A price war in electric vehicles started by market leader Tesla Inc has made it much more difficult for money-losing U.S. startups like Rivian Automotive Inc and Lucid Group Inc to grab share in an industry competing for shrinking consumer wallets.

    Tesla’s move last week to slash prices globally on its EVs by as much as 20% could draw new buyers to electric cars in the industry, but also will force other automakers to respond with lower prices or risk getting left behind, analysts and investors said.

    Some startups may not be able to afford lower prices as they struggle with staggering raw material and production costs combined with far lower output than the Elon Musk-led Tesla, which delivered more than 1.3 million vehicles last year.

    Tesla’s move will “strengthen their … competitive advantage over other automakers,” CFRA Research analyst Garrett Nelson said.

    The struggles of most startups are a far cry from their initial public offerings over the past few years, when investors believed these companies would take over the EV market and echo the heady valuation Tesla has sported in the past.

    ‘GAME OF THRONES’ FOR EV STARTUPS

    Both Rivian and Lucid have yet to turn a profit. Together they delivered more than 24,000 cars last year, with Rivian spending more money on making each car than the selling price of that vehicle.

    The company’s cost of goods sold was about 2.7 times its revenue in the last reported quarter, while Lucid’s cost of revenue was about 2.5 times its sales.

    Still, Rivian had $13.8 billion in cash at the end of the third quarter – the most among the U.S. EV startups. Lucid had the second-highest cash reserves with $1.26 billion, and it raised another $1.52 billion in the fourth quarter.

    That gives the companies a sizeable production runway at a time peers Faraday Future and British EV startup Arrival have been seeking funding and have warned they might not be able to sustain operations through 2023.

    “It’s a ‘Game of Thrones’ battle for EV startups and they face some dire options over the next 12 to 18 months if they do not succeed in their financial targets,” said Wedbush Securities analyst Daniel Ives. “We would expect some … losers that face the prospect of consolidation or possibly worse on the horizon.”

    A clearer picture of their balance sheets is expected when these companies report fourth-quarter earnings.

    Rivian declined to comment, while Lucid did not respond to a request for comment.

    Lucid aims to target the luxury and sport-luxury sedan segment of the EV market, with its cars starting at over $87,000, which is $8,000 less than the base version of Tesla’s Model S sedan after the January discounts.

    Lucid, headed by former Tesla executive Peter Rawlinson, has not announced plans for a mass-market car to rival Tesla’s Model 3 and Model Y, which start at about $44,000 and $53,000, respectively.

    Rivian sells its R1T pickup truck at a starting price of $73,000 while its R1S SUV starts at $78,000.

    The company, whose largest shareholder is Amazon.com Inc, does not plan on selling cheaper cars that it will build on a next-generation R2 platform before 2026. The platform will support higher volumes and be less expensive than the vehicles built on the R1 platform, Rivian says.

    Tesla’s price cuts come just months after contract manufacturer Magna Steyr began production of Fisker’s Ocean SUV, which starts at $37,499 and makes it more vulnerable, analysts said.

    Fisker declined to comment.

    Lordstown Motors, which in May sold a significant chunk of its assets to contract manufacturer Foxconn to raise funds, said its Endurance pickup targets the commercial fleet market only.

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  • Tesla Uses Its Profits As A Weapon In An EV Price War

    Tesla Uses Its Profits As A Weapon In An EV Price War

    Tesla earns more money for every vehicle it sells than any of its global rivals. Now, Chief Executive Elon Musk is using that superior profitability as a weapon in the EV price war he started.

    Tesla, once one of the auto industry’s biggest money losers, has over the past year built a commanding lead over most major rivals in profit per vehicle, a Reuters analysis of industry data shows.

    Tesla earned $15,653 in gross profit per vehicle in the third quarter of 2022 – more than twice as much as Volkswagen AG, four times the comparable figure at Toyota Motor Corp and five times more than Ford Motor Co, according to a Reuters analysis.

    For most of this year, Tesla joined rivals in aggressively raising prices on its most popular vehicles, such as the Model Y SUV. Shortages of semiconductors and other materials kept auto industry production down, allowing companies across the industry to focus on higher-margin models and book strong profits, even as sales volumes fell.

    Tesla’s decision to reverse course and spend its production-cost advantage on price cuts now challenges the profit-over-volume strategies established automakers such as GM have pursued since the 2008 financial crisis, and doubled down on during the pandemic.

    To control production costs, Tesla has invested heavily in new manufacturing technology – such as the use of large castings to replace small metal parts. Tesla brought battery manufacturing and other parts of its supply chain in-house, and standardized vehicle designs to improve economies of scale.

    Using production-cost advantages to fund price cuts has a long history in the auto industry.

    Henry Ford slashed prices on his Model T in the early 20th Century as his innovative mass-production system revved up. During the 1980s and 1990s, Toyota used the cost lead provided by its lean production system to offer features at prices Detroit automakers struggled to match. Now, Toyota is rebooting its strategy under pressure from Tesla.

    Growth in electric vehicle demand outpaced the overall market in the United States and globally during 2022. That emboldened automakers to push EV prices higher. Ford hiked prices for its electric F-150 pickup by 40% during 2022.

    But analysts are warning the global EV market could soon have more production capacity than demand.

    By 2026, North American EV demand will hit a level of about 2.8 million vehicles a year, said industry forecaster Warren Browne. But North American EV factories will be capable of assembling more than 4.5 million vehicles, putting overall capacity utilization at just under 60%, he said.

    In China, the end of central government subsidies is accelerating a market share war among rivals in the world’s largest EV market.

    “Tesla has taken the nuclear option to bully the weaker, thin margin players off the table” in China, said Bill Russo of Automobility, an industry consultancy in Shanghai. “Big pie, fewer slices, more to eat for those that remain.”

    Startups such as China’s Xpeng Inc had benefited from Tesla’s price hikes. Now, Xpeng is cutting prices in China – but with less financial leeway than Tesla. Xpeng reported gross profit of $4,565 in the third quarter, and a net loss of $11,735 a vehicle, according to company data analyzed by Reuters.

    “We hope more people can access smart vehicles after we make our cars increasingly affordable,” Xpeng said in a statement.

    Vietnamese EV startup Vinfast said Thursday it will use price promotions to fight back against Tesla.

    Chinese EV market leader BYD Co Ltd announced price increases effective Jan. 1 after Beijing phased out EV subsidies. So far, BYD has not responded to Tesla’s latest price cuts in China. However, BYD’s gross margins of $5,456 per vehicle give it more headroom in a price war than VW, Toyota or GM.

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  • Tesla Driver In Multi-Car Crash Told Police Self-Driving Software Malfunctioned

    Tesla Driver In Multi-Car Crash Told Police Self-Driving Software Malfunctioned

    The driver of a 2021 Tesla Model S involved in an eight-vehicle crash last month on San Francisco’s Bay Bridge told police he was in Full-Self Driving (FSD) mode which had malfunctioned, according to a police report made public Wednesday.

    The Thanksgiving Day crash on Interstate-80 near Treasure Island resulted in two juveniles being transported to a local hospital to treat minor injuries, leading to lengthy delays on the bridge.

    Chief Executive Elon Musk has touted Tesla “Full Self-Driving” software as a potential cash cow for the world’s biggest electric carmaker. But Tesla’s advanced driver assistance systems – and Musk’s claims about them – face growing legal, regulatory and public scrutiny.

    Tesla sells the $15,000 FSD software as an ad-on, enabling its vehicles to change lanes and park autonomously. That complements its standard “Autopilot” feature, which enables cars to steer, accelerate and brake within their lanes without driver intervention.

    The Tesla driver told police the FSD malfunctioned. Still, police were unable to determine if the software was in operation or if his statement was accurate, according to the report, which was made public after a Reuters request.

    The police report said the vehicle made an unsafe lane change and was slowing to a stop, which led to another vehicle hitting the Tesla and a chain reaction of additional crashes.

    The police report said if FSD malfunctioned, the driver should have manually taken control of the vehicle.

    Tesla did not respond to a request for comment.

    The National Highway Traffic Safety Administration (NHTSA), investigating the automaker’s advanced driver assistance systems, did not comment.

    Tesla’s says “Full Self-Driving” gives access to more advanced driver assistance features but emphasizes “all Tesla vehicles require active driver supervision and are not autonomous.”

    National Transportation Safety Board chair Jennifer Homendy has questioned Tesla’s marketing the feature as “full self-driving,” when it is incapable of that and said Tesla must do more to ensure people do not misuse the feature.

  • Tesla Falls On Growing Angst Over Musk’s Focus On Twitter

    Tesla Falls On Growing Angst Over Musk’s Focus On Twitter

    Shares of Tesla Inc fell nearly 6% on Tuesday after a string of brokerages cut their price targets on the electric-vehicle maker’s stock, citing the risk from Elon Musk’s Twitter distraction.

    Tesla’s shares hit a more than two-year low of $140.86.

    Analysts say investors are worried that Musk may need to sell shares further to fund Twitter and sentiment around the acquisition of the social media firm could hurt the EV maker’s brand.

    Evercore ISI, which slashed its price target on the company’s shares to $200 from $300 said investors fear damage to the Tesla brand.

    Daiwa Capital Markets also cut its price target to $177 from $240, citing a “higher risk profile from the Twitter distraction”.

    Tesla shares, which have lost nearly 60% of their value so far this year, closed down 0.2% on Monday as Twitter users voted decisively in a poll for Musk to step down as chief executive of the social media platform.

    Analysts at Oppenheimer downgraded Tesla’s shares on Monday.

    The price target cuts come ahead of Tesla’s quarterly deliveries report expected in early January amid weakening demand in China.

    Daiwa lowered the company’s delivery estimate by 5% for 2023 and forecast an 8% reduction in revenue per unit year-over-year.

    Musk has said Tesla targets 50% growth in delivery volumes annually, however, the electric-vehicle maker said it will miss the target this year due to logistics issues.

    China’s passenger vehicle sales fell for the first time in six months in November and are expected to stay flat next year, China Passenger Car Association said.

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  • Tesla Adds Apple Music, Zoom & Steam Games Via OTA Update

    Tesla Adds Apple Music, Zoom & Steam Games Via OTA Update

    Tesla has released a new over-the-air (OTA) update for the Model S and Model X which have 16GB RAM. This new update for the 2022 models, now adds some notable new features like the ability to play games from the Steam App Store with cloud synchronisation and support for Bluetooth game controllers while using the arcade mode. This includes support for the PlayStation 5 Dual Shock remote.

    Other updates include a dog mode which allows users to access the in-car camera from the mobile app to keep an eye if your pet is doing well. There are updated media features as well. Teslas notoriously don’t have support for Apple CarPlay and Android Auto. This also meant users of streaming services like Apple Music or YouTube Music could only stream music via Bluetooth or use Spotify which already had an app for the Tesla infotainment system.

    Over the months Tesla had been developing an Apple Music client which has now been released with this OTA update. This was important as a majority of Tesla’s user base has an iPhone which comes preloaded with Apple Music. In addition to Apple Music, there is also a dedicated Zoom client for the video calling and conferencing service which would be a boon to people who are always working on the go.

    The entire user interface for navigation has been updated with drivers having the ability to relive Mario Kart memories and drive on the rainbow road. The turn signals can also automatically turn off and the door handles have new options while parked at home.

    This update furthers Tesla’s vision of the car becoming the next mobile entertainment hub. When the new Model X and S cars where launched they came with a new infotainment system that had AMD RDNA 2 silicon which provides comparable computational power to the Sony PlayStation 5.

    In fact, Sony which has partnered with Honda for an electric car venture is hinting at embedding the PlayStation 5 console within the new cars they launch in the next few years. Mercedes is also moving in a similar direction with the MBUX platform on its cars while Google’s Android Automotive is providing a phone like operating system for manufacturers like Volvo.

  • Tesla Launches EVs In Thailand Amid Competition From Cheaper Brands

    Tesla Inc launched two electric vehicle (EV) models in Thailand on Wednesday, marking its first foray into the regional autos hub that has long been dominated by Japanese manufacturers.

    The launch of two EVs with prices ranging between 1.7 million baht to 2.5 million baht (($48,447 to $71,205) comes as Thailand makes a push for EV adoption and production by offering tax cuts and subsidies.

    The U.S. automaker plans to start selling its EVs in Southeast Asia’s second-biggest economy via online channels, with deliveries set to start early next year. But it faces stiff competition from Chinese brands like BYD and Great Wall Motors, which have set up showrooms and distribution partners in recent years to reach customers and offer EVs with prices starting at 800,000 baht.

    Tesla did not provide details on sales targets.

    Thailand is Asia’s fourth-largest auto assembly and export hub for companies like Toyota Motor Corp and Honda Motor Co Ltd. It produces about 1.5 million to 2 million vehicles annually, of which about half are exported.

    Fuel-based vehicles, especially made by Japanese brands, still dominate the market and uptake of EVs has gradually gained momentum, with about 7,000 new battery EVs registered in the first ten months of 2022, according to the Thailand Automotive Institute, up from 2,000 last year.

    Customers who showed up to Tesla’s launch in a luxury mall in central Bangkok said they were interested in the new cars being offered.

    “I’m excited. The price differences aren’t significant (from other EV brands),” said office worker Thitipun Paisirikul, 36, adding he expected the re-sale value of the car would be high.

    The government wants at least 30% of vehicles produced in the country to be electric by 2030.

    State-owned energy firm PTT Group this year announced a $1 billion joint venture with Taiwan’s Foxconn to produce EVs in Thailand.

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  • Hyundai, SK To Build New Battery Plant In Georgia

    Hyundai, SK To Build New Battery Plant In Georgia

    Hyundai Motor Group and SK On said Thursday they will build a new battery manufacturing plant in the U.S. state of Georgia to supply the Korean automaker’s U.S. assembly plants.

    Hyundai Motor Group and SK On, the lithium-ion battery subsidiary branch of SK Innovation, recently signed a memorandum of understanding (MOU) for a new EV battery manufacturing facility with details of the partnership still in development, the companies said.

    The companies aim to begin operations in 2025 and said “stakeholders estimate it will create more than 3,500 new jobs through approximately $4-5 billion of investment” in Georgia’s Bartow County. Hyundai separately broke ground in October on a $5.54 billion electric vehicle (EV) and battery plant in Georgia’s Bryan County.

    SK Innovation opened a $2.6-billion battery plant in Commerce, Georgia, in January that is producing batteries for the Ford F-150 EV.

    Hyundai and SK did not immediately say how much they plan to invest in the battery plant. Automakers and battery companies are building battery assembly plants across the United States as the industry shifts to electric vehicles.

    Hyundai, Kia and the South Korean government are heavily lobbying the Biden administration to ease new rules that in August immediately made all EVs assembled outside North America ineligible for $7,500 tax credits — including the Korean automakers’ EVs.

    The South Korean government on Tuesday urged Treasury “interpret ‘commercial clean vehicles’ broadly” to include rental cars, leased vehicles and vehicles purchased for use in Uber or Lyft rideshare fleets.

    Georgia Governor Brian Kemp told Reuters in October the EV tax credit rules should be changed to ensure Hyundai and Kia vehicles can qualify for the credit as it works to complete its EV assembly plant in the state.

    Kemp criticized the $430 billion climate bill approved in August that rewrote the tax credit rules.

    “It was targeted to help a lot of union-based suppliers that are in the United States,” Kemp said.

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  • Tesla readies revamped Model 3 with project ‘Highland’

    Tesla readies revamped Model 3 with project ‘Highland’

    According to four people with knowledge of the effort, Tesla is developing a revamped version of Model 3, as the top EV maker aims to cut production costs and boost the appeal of the five-year-old electric sedan.

    One focus of the redesign codenamed “Highland” is to reduce the number of components and complexity in the interior of the Model 3 while focusing on features that Tesla buyers value, including the display, according to the people, who asked not to be named because the revamp has not been announced.

    The previously unreported redesign comes as the electric sedan faces increased competition from models from the likes of China’s BYD, Hyundai, and coming releases from other major automakers.

    The revamp of the battery-powered sedan, which could also include some changes to the Model 3’s exterior and powertrain performance, will go into production at Tesla’s factory in Shanghai and the company’s Fremont, California plant, two of the people said. They said that Tesla’s Shanghai Gigafactory will put the redesigned Model 3 into production in the third quarter of 2023.

    It was unclear when production would start at the Fremont plant or how much a cost savings Tesla would achieve from the redesign as it works with suppliers.

    The effort spotlights an approach to vehicle development pioneered by Tesla and now being copied by other automakers, including Toyota Motor, that removes complexity – and cost – in production.

    It is also an example of a key project at Tesla that has rolled ahead even as Chief Executive Elon Musk has focused on his troubled acquisition of Twitter in recent months, an area of concern for Tesla investors.

    The redesign for the Model 3 builds on the revamp of the Model S — Tesla’s premium EV sedan — that was released last year. That redesign added an airplane-style yoke in place of a traditional steering wheel and removed buttons and traditional air vents as part of a minimalist interior where the centerpiece is a 17-inch electronic display.

    The Model 3, Tesla’s cheapest EV starting at just under $47,000 in the United States, had been the automaker’s best-seller but is being overtaken by the Model Y crossover. With only four models in production, styling changes to any part of Tesla’s lineup carry an outsized importance compared to established automakers.

    Ed Kim, president of AutoPacific Group, which tracks market trends and production, said the current Model 3 has already been updated from the version that first went on sale in 2017 because of the way Tesla updates battery performance, information and entertainment options through software, even if it still looks the same.

    “Having said that, consumers still tend to equate visual changes with newness,” he said. “Tesla knows visually tangible changes are in order.”

    “The upcoming changes that potential customers can see and feel will be very important in ensuring that EV customers still have Tesla at the top of their minds as truly excellent alternatives to Tesla are starting to flood the market,” he said.

    Musk has pushed a simplified approach to design and production at Tesla that the Highland project extends, said the people with knowledge of the development.

    Tesla has pioneered the use of massive casting machines known as Giga Press and built by IDRA Group in Italy to make single, larger pieces of a vehicle in assembly, reducing cost and speeding production. It has also designed a structural battery pack that does away with more expensive modules.

    Musk has said Tesla is looking to drive costs down through simplification and working on a small-car platform that would be half the cost of the Model 3.

    “Over and over, we found parts that are not needed. They were put in there just in case or by mistake. We eliminated so many parts from a car that did nothing,” Musk said in an interview at a Baron Funds conference earlier in the month.

    The approach is part of what has made Tesla the most profitable electric vehicle maker while many rivals are still running at a loss. In the third quarter, Tesla made a profit of just over $9,500 for every car sold, compared to roughly $1,300 for Toyota, according to disclosures by both companies.

    The revamp of the Model 3 comes at a time when sales in China, its second-largest market after the United States, are under pressure. Sales for the Model 3 in China fell 9% in the first ten months from a year earlier, while BYD’s Qin and Han electric sedans outsold the Model 3, according to China Passenger Car Association.

    To boost sales, Tesla cut prices for Model 3 and Model Y in China by as much as 9% in October and offered an additional rebate for buyers who took immediate delivery.

    Sam Fiorani, who tracks Tesla and industry-wide production at Auto Forecast Solutions, said the upcoming changes to the Model 3, which he understood were coming, showed the power of Tesla’s approach in taking out complexity.

    “They are always looking for ways to make EVs profitable, and more profitable,” he said.

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  • Musk hints that a Tesla phone could be made to punish Apple and Google

    Musk hints that a Tesla phone could be made to punish Apple and Google

    You might wonder how Elon Musk got where he is today based on his uneven performance as Twitter’s new owner. His confusing and illogical changes to the verification checkmarks and his inability to make a decision and stick to it without changing his mind a few times does not inspire confidence in the guy as someone who can run a company like Twitter.
    And when former T-Mobile president and CEO John Legere said that he would be interested in working his magic on Twitter (albeit at a superstar executive salary of course), Musk flat-out rejected him without even hearing him out. Considering what Legere did for T-Mobile, taking it from its position as last among the four major wireless providers to second, the guy should get at least a personal meeting. After all, he does have a stunning track record and helped T-Mobile become the most innovative company in the industry.
    The latest news involving Musk and Twitter is that the multi-billionaire has posted a tweet in which he says that should Apple and Google bounce Twitter from their respective app storefronts, Musk will make what he calls an “alternative phone.”
    Let’s run through the whole thing. A conservative commentator Liz Wheeler tweeted, “If Apple & Google boot Twitter from their app stores, @elonmusk should produce his own smartphone. Half the country would happily ditch the biased, snooping iPhone & Android. The man builds rockets to Mars, a silly little smartphone should be easy, right?” Elon responded by writing, “I certainly hope it does not come to that, but, yes, if there is no other choice, I will make an alternative phone.”

    This reminds us of another billionaire who thought that building a competitive smartphone might be right up his alley. Jeff Bezos and Amazon released the Fire Phone in June 2014. To put it mildly, this phone was a flop, as reportedly only 26,000 units were sold.

    But we digress. Right now there are no signs that Apple or Google is considering the removal of Twitter from the App Store and Google Play Store, respectively. But you never know when something Musk does will go afoul of App Store and Play Store rules. If Google were to banish Twitter from the Android app storefront, Twitter could always end up in a third-party app store like Amazon’s where Android users could sideload it.
    Sideloading an app on Android means downloading it from an app store other than the Play Store. Losing the App Store wouldn’t even be a blow even if sideloading is not an option on iOS. That’s because without an Android or iOS app, Twitter still would be accessible through the mobile browser on iPhone and Android handsets; in other words, the lack of a native iOS and/or Android app would not spell the end for Twitter.

    We’d imagine that if a Tesla phone is developed, Musk would create a mobile/wireless business unit for Tesla. But Elon is going to have to be careful how he approaches such a project. Keep in mind that his holdings in Tesla stock have cratered by 54% so far this year. Tesla stockholders might not take too kindly to Elon using Tesla’s cash and name to prop up Twitter which is one of Musk’s personal holdings.

    Again, this is all conjecture at this point, especially since Twitter remains a listing in good standing in the App Store and the Play Store. Unless development plans for an alternative phone have already started, the process of building a new smartphone using a brand-new platform will take several years. So hopefully Mr. Musk doesn’t expect to snap his fingers and see a new phone instantly become an iOS and Android competitor.
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  • Tesla Reports Two New Fatal Crashes Involving Driver Assistance Systems

    Tesla Reports Two New Fatal Crashes Involving Driver Assistance Systems

    Tesla told U.S. auto safety regulators it has reports of two new crash fatalities in Model 3 cars tied to advanced driver assistance systems in the month ending October 15, data released Tuesday by the government shows.

    The National Highway Traffic Safety Administration (NHTSA) in June began releasing data provided by automakers on reports of crashes tied to driver assistance systems like Tesla’s Autopilot.

    “NHTSA has reviewed these crashes and is conducting appropriate follow-up. NHTSA uses many data sources in its enforcement processes,” the agency said Tuesday.    NHTSA issued an order in June 2021 requiring automakers and tech companies to immediately report all crashes involving advanced driver assistance systems (ADAS) and vehicles equipped with automated driving systems tested on public roads. The safety regulator said Tuesday it uses data submitted by automakers under its 2021 order as part of its investigations.

    Nearly all of the 18 fatal crashes reported since July 2021 that had to do with driver assistance systems involved Tesla vehicles.

    The agency has emphasized crashes are tracked by individual automakers in different ways and discouraged comparisons of performance among automakers partly due to lack of comprehensive metrics to track how widely each system is used or how crashes are reported.

    Separately, since 2016, NHTSA has opened 38 special investigations of crashes involving Tesla vehicles where advanced driver assistance systems such as Autopilot were suspected of being used. Overall, 19 crash deaths have been reported in those Tesla-related investigations.

    Tesla did not respond to a request for comment.

    It has said Autopilot allows vehicles to brake and steer automatically within their lanes but does not make them capable of driving themselves.    In June, NHTSA upgraded its defect investigation into 830,000 Tesla vehicles with Autopilot, a required step before it could seek a recall.

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  • Tesla Recalls 3,21,000 U.S. Vehicles Over Rear Light Issue

    Tesla Recalls 3,21,000 U.S. Vehicles Over Rear Light Issue

    Tesla is recalling more than 321,000 vehicles in the United States because tail lights may intermittently fail to illuminate, the company said in a filing made public Saturday.

    The news follows the company’s recall on Friday of nearly 30,000 Model X cars in the United States over an issue that may cause the front passenger air bag to deploy incorrectly, which sent its shares down almost 3% to a near two-year low.

    In the filing published Saturday to the National Highway Traffic Safety Administration (NHTSA), the electric vehicle manufacturer said the tail light-related recall covers some 2023 Model 3 and 2020-2023 Model Y vehicles.

    Texas-based Tesla said it will deploy an over-the-air update to correct the rear light issue and said it has no reports of any crashes or injuries related to the recall.

    The company said the recall followed customer complaints it became aware of in late October, largely from foreign markets, claiming vehicle tail lights were not illuminating.

    The investigation found in rare cases the lights may intermittently not work due to an anomaly that may cause false fault detections during the vehicle wake-up process. Tesla said it had received three warranty reports over the issue.

    Tesla has reported 19 U.S. recall campaigns in 2022 covering more than 3.7 million vehicles including four callbacks in November, according to NHTSA data.

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  • Musk sells Tesla shares worth $3.95 bln days after Twitter takeover

    Musk sells Tesla shares worth $3.95 bln days after Twitter takeover

    Tesla Inc Chief Executive Officer Elon Musk has sold $3.95 billion worth of shares in the electric vehicle maker, according to U.S. regulatory filings, days after he completed his purchase of Twitter Inc for $44 billion.

    Musk, whose net worth dropped below $200 billion after investors dumped Tesla stock, unloaded 19.5 million shares between Friday and Tuesday, filings published by the U.S. Securities and Exchange Commission showed.

    The latest share sale leaves Musk with a stake of roughly 14% in Tesla, according to a Reuters calculation.

    The purpose of the sale was not disclosed.

    The latest sale dump comes as analysts had widely expected Musk to sell additional Tesla shares to finance the Twitter deal.

    Musk, the world’s richest man, had asserted in April he was done selling Tesla stock. Still, he went on to sell another $6.9 billion worth Tesla shares in August and said the sale was conducted to pay for the social media platform.

    Musk, the world’s richest man, had about $20 billion in cash after selling a part of his stake in Tesla, including the sales made last year. This would have required him to raise an additional $2 billion to $3 billion to finance the takeover, according to a Reuters calculation.

    Tesla has lost nearly half its market value and Musk’s net worth slumped by $70 billion ever since he bid for Twitter in April.

    Twitter and Tesla did not immediately respond to Reuters’ requests for comment.

    Musk took over Twitter last month and has engaged in drastic measures including sacking half the staff and a plan to charge for blue check verification marks.

    The billionaire pledged to provide $46.5 billion in equity and debt financing for the acquisition, which covered the $44 billion price tag and the closing costs. Banks, including Morgan Stanley and Bank of America Corp, committed to provide $13 billion in debt financing.

    Musk’s $33.5 billion equity commitment included his 9.6% Twitter stake, which is worth $4 billion, and the $7.1 billion he had secured from equity investors, including Oracle Corp co-founder Larry Ellison and Saudi Prince Alwaleed bin Talal.

    Musk had tried to walk away from the deal in May, alleging that Twitter understated the number of bot and spam accounts on the platform. This led to a series of lawsuits between the two parties.

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  • Tesla closes its first showroom in China in retail strategy shift

    Tesla closes its first showroom in China in retail strategy shift

    Electric vehicle giant Tesla has closed what had been its flagship showroom in China as the company adjusts its sales and service strategy in its second-largest market, two people with knowledge of the matter said.

    Tesla shut the showroom in Beijing’s Parkview Green, an upscale downtown shopping centre late last week, according to the people, who spoke on condition they not be named because they were not authorised to discuss the closure.

    A member of the mall’s staff confirmed to Reuters during a visit to the site on Wednesday that Tesla had shut the showroom, whose windows are now plastered with posters belonging to the next tenant, a streetwear brand.

    “Their contract with us expired and Tesla decided not to extend it,” the mall staff member said.

    A call to the store earlier in the day was redirected to another Tesla showroom nearby. Tesla did not immediately reply to a request for comment.

    The Beijing store, opened in 2013, was Tesla’s first in China. It was renovated in 2018 and expanded to occupy two floors of the mall.

    Tesla owns and runs over 200 outlets across the country that display models and arrange test drives for potential buyers.

    Reuters reported in September that Tesla was considering closing some showrooms in flashy malls in cities like Beijing after traffic plunged during Covid restrictions.

    It also plans to put more emphasis on stores in less-costly suburban locations that can also provide repairs as the company works to meet Chief Executive Elon Musk’s goal of improving service for customers.

    As part of that effort, Tesla has been hiring technicians and other staff for service jobs in China. The company’s China recruitment website showed 305 openings for service jobs as of Wednesday, little changed from September.

    More than half of Tesla’s China stores do not offer repair or maintenance services and are in high-rent locations where space is limited. That included the now-closed Parkview Green Tesla store.

    Tesla owns all of its own stores rather than relying on dealers. It also sells its cars online. That has allowed it more leeway to adjust a retail strategy that had been initially modeled on Apple’s glossy stores in high-rent locations.

    Tesla has cut starter prices for its Model 3 and Model Y cars by as much as 9 per cent in China, reversing a trend of price increases across the industry amid signs of softening demand in the world’s largest auto market.

    Tesla sold 318,151 vehicles in China in the first nine months of 2022, up 55 per cent from a year earlier, according the China Passenger Car Association. By comparison, overall sales of electric vehicles and hybrids increased 113.2 per cent.

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  • Tesla Recalls 24,000 U.S. Vehicles Over Seat Belt Issue

    Tesla Recalls 24,000 U.S. Vehicles Over Seat Belt Issue

    Tesla Inc is recalling just over 24,000 U.S. 2017-2022 Model 3 vehicles over a seat belt issue.

    The Austin-based electric vehicle company said the second-row left seat belt buckle and second-row center seat belt anchor may have been incorrectly reassembled during vehicle service.

    It told the National Highway Traffic Safety Administration it had reports of 105 service repairs, including warranty claims, for U.S. vehicles that were or might be related to the recall issue.

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  • Elon Musk Admits That Tesla Will Not Get Approval For Self-Driving Cars

    Elon Musk Admits That Tesla Will Not Get Approval For Self-Driving Cars

    Elon Musk has revealed that Tesla will not get any approvals for driverless cars in the U.S. (which means that the car wouldn’t need any input from the driver to operate). At the time in 2016 when Tesla had launched the AutoPilot stack, Musk had falsely predicted that permissions would be achieved by 2020 and till today he never had a morbid outlook towards the same.

    Now for the last two years, Tesla has been running its full self-driving beta but now Musk admits that it will not be given permission to operate without a driver in 2022. In fact, the software is not ready even now and Musk also says another major beta update will be rolled out before the end of the year.

    “The car will be able to take you from your home to your work, your friend’s house, the grocery store without you touching the wheel. It’s a separate matter as to will it have regulatory approval. It won’t have regulatory approval at that time,” he said.

    Recently, a Tesla Model 3 was also involved in an accident that had a fatality. The car was reportedly on AutoPilot and rear-ended a bike. Many have been critical of Tesla’s approach to the technology and accused it of false advertising which will certainly make regulatory approval harder. Tesla’s cars also don’t use radars anymore and Musk has been resistant towards adding LiDAR, something every other self-driving tech player has admitted is necessary.

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