Tag: tesla

  • Tesla Raises Full Self Driving Software Price To $12,000 In U.S., Musk Says

    Tesla Raises Full Self Driving Software Price To $12,000 In U.S., Musk Says

    Tesla Inc Chief Executive Officer Elon Musk tweeted on Friday that the electric carmaker will raise the U.S. price of its advanced driver assistant software dubbed “Full Self Driving” to $12,000 on Jan. 17.

    The 20% price rise comes less than two years since Tesla raised Full Self-Driving (FSD) prices to $10,000 from $8,000 in 2020.

    “Tesla FSD price rising to $12k on Jan 17. Just in the US.” Musk tweeted.

    Musk also added that the monthly subscription price will rise when FSD goes to wide release.

    “FSD price will rise as we get closer to FSD production code release,” he tweeted.

    Tesla has been expanding the release of a test version of its upgraded FSD software, a system of driving-assistance features – like automatically changing lanes and making turns, but the features do not make the vehicles autonomous.

  • Tesla, VW, SAIC Look To Recommence Shanghai Operations

    Tesla, VW, SAIC Look To Recommence Shanghai Operations

    Tesla VW and SAIC are among several companies that are looking to get production back up and running at their Shanghai facilities after almost three weeks of COVID-19 related shutdowns. The news comes following Beijing having drawn up a “whitelist” of companies prioritised to re-open or keep operations going in Shanghai. The list included a number of companies ranging from carmakers to semiconductor manufacturers and medical firms.

    As per Reuters, Tesla had already recalled workers to its Shanghai factory where they would be required to live on-site. The company had planned to commence production today though it has now been deferred to tomorrow citing logistical issues from a supplier. SAIC Motor meanwhile reported that it was commencing stress testing from Monday with an eye on recommencing production while VW said it was evaluating the feasibility of resuming production at its SAIC joint venture.

    However, with COVID-related closures in other cities in the country, it remains to be seen how manufacturers work around supply chain disruptions.

    Shanghai meanwhile aims to stop the spread of COVID-19 outside of quarantined areas by Wednesday with reports saying that the city had stepped up testing measures and transfer positive cases and their close contacts to isolation.

    Companies are being required to ensure ‘closed loops’ for workers being called into work while also maintaining medical supplies. Under ‘closed loops’ employers have been asked to minimise employee exposure to others while transiting to work or arranging for employees to live on their factory premises.

  • Musk Promises ‘Dedicated Robotaxi’ With Futuristic Look From Tesla

    Musk Promises ‘Dedicated Robotaxi’ With Futuristic Look From Tesla

    Electric carmaker Tesla will make a “dedicated” self-driving taxi that will “look futuristic,” Chief Executive Elon Musk said on Thursday, without giving a timeframe.

    The 50-year-old billionaire, wearing a black cowboy hat and sunglasses, made the comments at the opening of Tesla’s $1.1 billion factory in Texas, which is home to its new headquarters.

    “Massive scale. Full self-driving. There’s going to be a dedicated robotaxi,” Musk told a large crowd at the factory.

    Musk has several times missed his targets of full autonomy. In 2019, he said robotaxis with no human drivers would be available in some U.S. markets in 2020.

    In January he said he would be “shocked” if Tesla did not achieve full self-driving that is safer than that of humans this year.

    Tesla will expand its “Full Self-Driving” beta software to all North American FSD subscribers this year, he said on Thursday.

    Tesla now sells the advanced driver assistance systems for $12,000, with a promise of more features. It says the software does not make its vehicles autonomous, and requires driver supervision.

    The beta version, launched in late 2020, aims to enable cars to navigate city streets better. By January, it had been installed in nearly 60,000 vehicles in the United States.

    Musk said Tesla had started deliveries of Texas-made Model Y electric sport utility vehicles, with a goal of producing half a million a year at the Texas factory, which he said would be the biggest car factory in the United States.

    He gave no details of such Model Ys, but they are likely to be lower-priced versions to better take on cheaper competitors.

    Tesla will start production next year of its Cybertruck as well as a humanoid robot, Optimus, Musk said.

    The firm’s new giga factories in Texas and Berlin, which will make vehicles and its own battery cells, face challenges of ramping up production with new processes

    Musk said Tesla was simplifying car making by making a car using three major parts.

    Despite record deliveries in the first quarter, a recent COVID-19 spike in China has forced Tesla to suspend production at its Shanghai factory for several days.

    Thursday’s event comes after Musk surprised the market this week by revealing he had bought a stake of 9% in Twitter and will join the board of the social media network.

  • Tesla and SpaceX billionaire Elon Musk buys a 9.2% stake in Twitter

    Tesla and SpaceX billionaire Elon Musk buys a 9.2% stake in Twitter

    Billionaire Elon Musk, CEO of SpaceX and Tesla, has recently acquired a three billion dollar Twitter stake, which equates to about 9.2% of the social media company, or 73,486,938 Twitter shares.

    The news comes from a US securities filing, and according to the BBC, the acquisition, which reportedly happened on March 14, has now resulted in Twitter’s shares jumping up 25% in pre-market trading. With his acquisition, Musk now owns a larger Twitter share than the site’s original co-founder and until recently CEO Jack Dorsey, who currently owns 2.25%.

    Being a regular and prolific Twitter user, Elon Musk’s official profile currently has over 80 million followers. He’s used the platform to not only share his views on current events and update people on what his companies are up to, but to interact with fans, often Tesla users, and has been known to regularly share witty memes.

    This has created an image of being a different and fun, relatable “kind of billionaire,” as opposed to the likes of Microsoft co-founder Bill Gates and Amazon founder Jeff Bezos.

    Notably, the billionaire has used Twitter to share his views on the subject of free speech, and has been critical of social media sites, Twitter included, in regards to it.

    The 50-year-old billionaire’s first breakthrough was through co-founding x.com, which was later renamed to PayPal and sold to eBay for $1.5 billion. Currently Musk is most well-known as the CEO of electric car company Tesla and aerospace manufacturer SpaceX.

  • Tesla, Lucid Supplier LGES Plans To Build $1.4 Billion Battery Factory In Arizona

    Tesla, Lucid Supplier LGES Plans To Build $1.4 Billion Battery Factory In Arizona

    LG Energy Solution (LGES), a supplier for electric car makers Tesla and Lucid, said on Thursday in Korea it plans to invest 1.7 trillion Korean won ($1.4 billion) to build a battery factory in Arizona by 2024 to meet demand from “prominent startups” and other North American customers.

    This will be its first U.S. factory to make cylindrical cells, a type of battery that has been used in Tesla and Lucid vehicles, LGES said. Construction will begin in the second quarter of 2022, with mass production to start in 2024 with production capacity of 11 gigawatt hours, LGES said in a statement.

    Earlier, Reuters reported that potential customers would include EV makers Tesla, Lucid and Proterra and Philip Morris, maker of IQOS heated-tobacco sticks, among others. The report cited people familiar with the matter.

    LGES said in a statement that it plans to consider securing additional production capacity at its Arizona factory in the future.

    “The Arizona factory could add further production capacity in the future as we are seeing growing demand for cylindrical batteries from various customers, including automakers and power tool makers,” said an official at LGES.

    On Tuesday, Tesla Chief Executive Officer Elon Musk said battery production would be “the limiting factor” for vehicle production in two to three years. He has called on suppliers to raise production, while Tesla starts making cells itself.

    Tesla, Lucid and Proterra did not immediately respond to requests for comment. Philip Morris declined to comment.

    Japan’s Panasonic Corp, a Tesla supplier, along with Contemporary Amperex Technology Co Ltd, is also looking to invest billions of dollars to build a factory to make a new type of electric vehicle (EV) battery for Tesla, public broadcaster NHK reported this month.

    Panasonic is looking at building the factory in either Oklahoma or Kansas, not far from Tesla’s new Texas vehicle plant, NHK reported.

    Lucid Chief Financial Officer Sherry House told Reuters last month the company, which has a car factory in Arizona, had signed multi-year supply agreements with two battery suppliers, and the agreement “does have some capacity coming from state-side cell lines.”

    She did not identify the companies. Lucid sources batteries from LGES and Samsung SDI.

    LGES, which raised more than $10 billion in its initial public offering in Korea in January, has announced a flurry of battery joint ventures with GM and Stellantis in the United States and Canada.

    In August, U.S. President Joe Biden signed an executive order aimed at making half of all new vehicles sold in 2030 electric.

  • Australian Researchers To Study How Tesla Car Batteries Can Power Grid

    Australian Researchers To Study How Tesla Car Batteries Can Power Grid

    Australia’s University of Queensland (UQ) on Wednesday said it would recruit Tesla Inc car owners around the world to analyze if the vehicle’s spare battery capacity could support the energy grid and even power homes in the future. The university has partnered with analytics platform Teslascope for the research project, which it said would be a world-first trial that would check how owners of electric vehicles (EV) currently drive and charge their vehicles. For the first phase of the study, Tesla owners in Australia, the United States, Canada, Norway, Sweden, Germany, and Britain can apply. The program could be expanded later to include other electric vehicle companies.

    With increasing numbers of electric vehicles globally, scientists are looking to find how the batteries can provide other cleaner energy services besides helping lower emissions in the transport industry. Researchers at UQ said most EVs are driven only one-eighth of their daily driving range of 400 km (249 miles), providing opportunities to store energy and export power to the grid using vehicle-to-grid (V2G) chargers. “(The study) will not only help to inform EV policy internationally but importantly assess the feasibility of using EVs as batteries-on-wheels,” Jake Whitehead, Research Fellow at UQ, told Reuters.

    V2G technology is a connection between the EV and the grid through which power can flow from the grid to the vehicle and vice-versa. That potentially enables car owners to sell energy to the network, while utilities could use electric cars as a backstop during peak demand periods. The study, which aims to initially recruit 500 Tesla owners, will collect usage data through the vehicle’s software interface and in return users will be offered a free premium subscription to Teslascope for a year. Australia last week pledged A$178 million ($132 million) to ramp up the rollout of charging stations for electric vehicles but did not set targets to phase out petrol cars.

  • Elon Musk Giving ‘Serious Thought’ To Build A New Social Media Platform

    Elon Musk Giving ‘Serious Thought’ To Build A New Social Media Platform

    Tesla Inc Chief Executive Officer Elon Musk is giving “serious thought” to building a new social media platform, the billionaire said in a tweet on Saturday.

    Musk was responding to a Twitter user’s question on whether he would consider building a social media platform consisting of an open-source algorithm and one that would prioritize free speech, and where propaganda was minimal.

    Musk, a prolific user of Twitter himself, has been critical of the social media platform and its policies of late. He has said the company is undermining democracy by failing to adhere to free speech principles.

    His tweet comes a day after he put out a Twitter poll asking users if they believed Twitter adheres to the principle of free speech, to which over 70% voted “no”.

    “The consequences of this poll will be important. Please vote carefully,” he said on Friday.

    If Musk decides to go ahead with creating a new platform, he would be joining a growing portfolio of technology companies that are positioning themselves as champions of free speech and which hope to draw users who feel their views are suppressed on platforms such as Twitter, Meta Platform’s Facebook and Alphabet-owned Google’s YouTube.

    None of the companies, including Donald Trump’s Truth Social, Twitter competitors Gettr and Parler and video site Rumble, have come close to matching the reach and popularity of the mainstream platforms so far.

  • Tesla Raises Prices For Second Time In Days On Rising Costs

    Tesla Raises Prices For Second Time In Days On Rising Costs

    Tesla raised its prices in China and the United States for the second time in less than a week, after CEO Elon Musk said the U.S. electric carmaker was facing significant inflationary pressure in raw materials and logistics. The increases come as costs of raw materials are surging, exacerbated by supply chain disruptions following Russia’s invasion of Ukraine.

    Prices of metals used in cars have soared, including aluminum that is used in the bodywork, palladium used in catalytic converters, and nickel and lithium that power electric vehicle (EV) batteries. The costs have raised concerns about EV economics, as legacy automakers and startups prepare to launch new cars on the back of a long semiconductor supply crunch that is still knocking production at companies including Toyota and Volkswagen.

    Tesla, which has a diversified supply chain, has bought “millions of euros worth of aluminum” from Russian aluminium giant Rusal, CNBC reported on Monday, citing internal documents.

    Rusal’s billionaire founder Oleg Deripaska has been sanctioned by Britain.

    Tesla bought Rusal aluminum for casting parts at its new vehicle assembly plant outside of Berlin for the Tesla Model Y, among other things, CNBC said.

    Tesla received a conditional go-ahead for its 5 billion euro ($5.5 billion) German gigafactory earlier this month after months of delay.

    Tesla and Rusal did not immediately respond to emails seeking comment.

    “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” Musk tweeted on Monday, referring to his rocket company. “And we are not alone,” he said.

    Tesla raised prices on Tuesday for all its models in the United States by 5%-10%, its website showed. In China, it raised prices of some China-made Model 3 and Model Y products by about 5%.

    Last week, the company increased prices of its U.S. Model Y SUVs and Model 3 Long Range sedans and some China-made Model 3 and Model Y vehicles.

  • Tesla’s Long-Delayed German Gigafactory Gets Conditional Green Light

    Tesla’s Long-Delayed German Gigafactory Gets Conditional Green Light

    Tesla Inc received a conditional go-ahead for its German gigafactory near Berlin on Friday, the state of Brandenburg said, ending months of delay for the 5 billion euro ($5.5 billion) landmark plant. The gigafactory, which is crucial to Tesla Chief Executive Elon Musk’s ambitions to vanquish European market leader Volkswagen, was initially supposed to open last summer. Germany’s largest automaker has the upper hand in Europe, with a 25% share of electric vehicle (EV) sales to Tesla’s 13%.

    First Counsellor of the Oder-Spree district Sascha Gehm, Brandenburg Economy Minister Joerg Steinbach, Brandenburg State Premier Dietmar Woidke, Brandenburg Environment Minister Axel Vogel, and Gruenheide Mayor Arne Christiani attend a news conference following a court hearing on the Tesla car plant, in Potsdam, Germany

    Brandenburg state premier Dietmar Woidke told a news briefing that the development marked “a big step into the future”, adding that the Tesla plant would be a major industrial and technological driver for Germany and the region.

    Around 2,600 of the plant’s expected 12,000 workers have been hired so far, unions said last month, and Tesla is in talks with numerous parts suppliers in the region to source as much as possible locally, lowering waiting times and costs.

    Underlining the intense competition facing Tesla, Volkswagen said on Friday it would spend about 2 billion euros on a new factory near its Wolfsburg headquarters to make the Trinity, the first of a new generation of electric vehicles for the German carmaker, with construction due to start next year.

    Friday’s 536-page conditional building permit for Tesla does not mean the U.S.-based EV pioneer can start production right away. It must first prove that it fulfils numerous conditions, including in water use and air pollution control.

    Only then will Tesla get its long-awaited operating permit and actually start rolling out the 500,000 battery-powered vehicles it wants to produce each year at the new plant, located in the small community of Gruenheide.

    Another hurdle to secure the site’s water supply emerged late on Friday, when a Frankfurt Oder administrative court sided with environmental groups who had challenged a licence given to a local water utility to supply the Tesla site.

    But the court said the procedural errors made in the licencing decision could be remedied by the water utility, leaving open the door for the water supply arrangement to be salvaged.

    Kickstarting production in Germany would mean Tesla can deliver its Model Y cars to European customers faster and more cheaply, after meeting orders in Europe from its Shanghai factory in recent months as it awaited approval for the site.

    Tesla plans to show that it meets the imposed conditions within the next two weeks, Brandenburg’s environment minister Axel Vogel said, while objections can be filed over the next month.

    Tesla’s next challenge will be to scale up production as quickly as possible, which Musk said at a fair on-site in October would take longer than building the factory.

    Local environmental groups have long feared that the plant will negatively impact local habitat. Numerous public consultations, focusing primarily on that aspect, delayed the process, with Musk expressing irritation on multiple occasions over German bureaucracy.

    The factory, which Tesla has begun constructing under pre-approval permits, will also include a battery plant capable of generating more than 50 gigawatt hours (GWh) per year – outstripping European competitors.

    Batteries for cars produced on-site will initially come from China, Musk said, but he intends to reach volume production at the German battery plant by the end of next year.

  • Tesla Software Updates Allow Quick Fixes

    Tesla Software Updates Allow Quick Fixes

    Tesla Inc’s ability to quickly issue safety patches via remote software updates is an approach other automakers eye enviously, but that also carries risk as cars become more like rolling computers. Investors have awarded Tesla’s leadership on in-car software with a market value of $905 billion that dwarfs traditional carmakers, many of which are now scrambling to roll out their own ability to offer over-the-air software updates. However, Tesla’s risk-friendly culture and its desire to quickly release cutting-edge technology have also put it on a collision course with U.S. safety regulators, which have launched a string of recalls and investigations into the carmaker in recent months. The latest included the opening of a formal probe on Thursday into reports of unexpected brake activation.

    “There’s definitely the mindset that you can fix fast so you can take a higher risk,” Florian Rohde, a former Tesla validation manager who is now a consultant, said about the electric carmaker’s ability to issue remote updates. That behavior was illustrated earlier this month when the National Highway Traffic Safety Administration (NHTSA) ordered Tesla to issue a recall to prevent some of its vehicles from making “rolling stops” instead of coming to a complete halt at some intersections. That feature violated state laws and was a safety risk, the agency said.

    Tesla Chief Executive Elon Musk, who has a long history of clashing with U.S. safety officials, denied there was a safety issue with the function. “The car simply slowed to 2 mph & continued forward if a clear view with no cars or pedestrians,” Musk wrote on Twitter.

    But the carmaker nevertheless issued a software update to disable the function. NHTSA officials on Thursday said they would push for recalls if they feel safety risks may exist in any vehicles.

    Tesla has said it develops almost all its software to allow for regular over-the-air updates. The carmaker has issued software updates that control vehicle performance, braking, battery charging and infotainment functions.

    Tesla has led the auto industry in over-the-air recall updates. While nearly all recalls issued by NHTSA since 2020 required physical fixes, seven of Tesla’s 19 recalls since January 2020, or 37%, were addressed with over-the-air software updates, an analysis of public data showed.

    Unlike traditional recalls that require a trip to the dealership, remote updates are cheaper and can ensure that all vehicles receive the required fix. Traditional recalls have shown an average compliance rate of around 70%, with that rate falling to less than 50% for older cars, according to NHTSA data.

    With other automakers racing to offer the same upgrades as Tesla, safety experts are concerned wider over-the-air updates could open the door to carmakers lowering their safety thresholds by rushing out immature updates.

    “Over-the-air software updates come with promise and they come with peril,” said William Wallace, manager of safety policy at Consumer Reports. “Companies need to be really responsible.”

    The dispute over Tesla recalls comes as the automaker faces increasing scrutiny by several U.S. agencies over its conduct and CEO Elon Musk’s personal behavior. Musk’s attorney on Thursday accused the U.S. Securities and Exchange Commission of an “endless” investigation to punish him for criticism of the U.S. government.

    Tesla did not respond to a request for comment, but it has criticized the agency for “anachronistic regulations”. Analysts wonder whether the company’s fast-moving, technology-centered culture could lead to issues.

    “The problem is, when you try to apply the Silicon Valley mindset to automobiles, it’s a very different situation,” said Guidehouse Insights analyst Sam Abuelsamid, a former automotive software engineer. He added Tesla should do more internal testing before releasing updates.

    But the software shift also raises new challenges for regulators, with some experts questioning whether NHTSA has the expertise to validate modern technology.

    “I haven’t seen any evidence that NHTSA has people with the experience and expertise to deal with software issues right now,” said Don Slavik, a Colorado-based lawyer who has served as a consultant in automotive technology lawsuits, including many against Tesla.

    NHTSA’s recent investigations into Tesla have centered around the carmaker’s driver assistance system Autopilot and what Tesla calls its Full Self-Driving (Beta) software – technology that allows about 60,000 Tesla users in the United States to test the company’s autonomous technology on public roads.

    While the aggressive approach allows Tesla to deploy software updates faster than the competition, “it puts untrained drivers in the position of having to compensate for potential software defects,” said Philip Koopman, a Carnegie Mellon University professor working on autonomous vehicle safety.

    Safety advocates warn Tesla vehicles potentially affect everyone on public roads.

    “A two-ton vehicle is not the same as a desktop computer or your laptop crashing,” Consumer Reports’ Wallace said. “Automakers and their suppliers need to treat software that relates to safety like it’s a life-and-death issue.”

  • Tesla Recalls 817,000 Vehicles In U.S. Over Seat Belt Reminder Alert

    Tesla Recalls 817,000 Vehicles In U.S. Over Seat Belt Reminder Alert

    Tesl is recalling more than 817,000 vehicles in the United States because an audible alert may not activate when a vehicle starts and the driver has not buckled the seat belt, a U.S. auto safety regulator said. The National Highway Traffic Safety Administration (NHTSA) said on Thursday the vehicles, 2021-2022 Model S and Model X, 2017-2022 Model 3, and 2020-2022 Model Y fail to comply with a federal motor vehicle safety standard on “Occupant Crash Protection” because the chime does not activate. Tesla will perform an over-the-air (OTA) software update to address the issue.

    Tesla told NHTSA that as of Jan. 31 it was unaware of any crashes or injuries related to the issue. Tesla said in a document filed with NHTSA, the South Korea Automobile Testing & Research Institute (KATRI) on Jan. 6 brought the condition to Tesla’s attention. Tesla said on the recalled vehicles a software error may prevent the chime from activating upon vehicle start under certain circumstances.

    The automaker said the issue was limited to circumstances where the chime was interrupted in the preceding drive cycle and the seat belt was not buckled after that interruption. Tesla added the issue does not affect the audible seat belt reminder chime from activating when the vehicle exceeds 22 km/h and the driver seat belt is not detected as buckled. The condition does not impact the accuracy of the accompanying visual seat belt reminder. Tesla has come under increasing scrutiny from U.S. regulators and issued several recalls in recent months.

    On Tuesday, Tesla said it was recalling 53,822 U.S. vehicles with the company’s Full Self-Driving (Beta) software that may allow some models to conduct “rolling stops” and not come to a complete stop at intersections posing a safety risk. Tesla will perform an over-the-air software update that disables the “rolling stop” functionality, NHTSA said.

  • Apple Makes Easy Escape From Supply Crisis, But Others Like Tesla May Have To Wait

    Apple Makes Easy Escape From Supply Crisis, But Others Like Tesla May Have To Wait

    Apple Inc’s triumph over the global chips supply-chain shortage has signaled good news amid troubled markets around the world. Not so fast, say analysts. The iPhone maker, which had warned three months ago that supply issues would dent its holiday-quarter revenue, on Thursday posted record results largely boosted by sales of its premium phones. It sees an improving situation, if some remaining shortages.

    “Most of the supply-constrained issues are over for Apple, but not necessarily for everybody else,” said Bob O’Donnell, chief analyst at TECHnalysis Research.

    Companies from electric automaker Tesla Inc to wafer fabrication equipment supplier Lam Research have warned again that supply chain issues, which crippled several industries, would continue to limit production this year.

    Semiconductor companies tend to give priority to bigger players such as Apple, for its massive buying power, huge demand for its products, and the company’s ability to place custom orders for components used in its products. And Apple’s high-end chips are costly, an attraction for the chip makers.

    This essentially means Apple has an advantage and can procure components relatively faster than rivals.

    Still, while Apple got better service for more sophisticated chips, like many others, it faced troubles with some of the older technology chips, Daiwa Capital Markets analyst Lou Miscioscia said.

    Chips used in Apple iPads, which saw a 14% drop in revenue, use chips with older technology, and supplies of those older chips were particularly tight, Apple Chief Executive Tim Cook told analysts.

    Cook said the constraints on the older chips, or nodes, were very significant in the holiday quarter. “Overall, we do see an improvement in the March quarter in terms of the constraints going down versus what they were in the December quarter,” he said.

    Tesla CEO Elon Musk this week said supply chain woes would limit manufacturing output in all company factories. “So the chip shortage, while better than last year, is still an issue,” he told analysts.

    Semiconductor equipment maker Lam Research noted new supply challenges, with the Omicron surge adding more disruption to freight and logistics operations. The company said it was seeing scarcity of certain components and parts, including semiconductors, a few weeks into 2022.

    Analysts and market leaders in the semiconductor space held out hopes that supply issues would ease later this year.

    “That’s going to remain a concern for the industry, but Apple may be the exception to the rule,” said Romeo Alvarez, technology analyst at William O’Neil + Co.

  • Tesla Countersues JP Morgan, Claims Bank Sought ‘Windfall’ After Musk Tweet

    Tesla Countersues JP Morgan, Claims Bank Sought ‘Windfall’ After Musk Tweet

    Tesla Inc on Monday fought back against JPMorgan Chase & Co over a disputed bond contract, countersuing the bank for seeking a “windfall” following Elon Musk’s notorious 2018 tweet that he might take his electric car company private.

    In a filing in Manhattan federal court, Tesla accused JPMorgan of “bad faith and avarice” for demanding $162.2 million after the bank had unilaterally changed the terms of warrants it received when Tesla sold convertible bonds in 2014.

    “JP Morgan pressed its exorbitant demand as an act of retaliation against Tesla both for it having passed over JPMorgan in major business deals and out of senior JPMorgan executives’ animus toward Mr. Musk,” Tesla said.

    By changing the terms of the warrants, JPMorgan “dealt itself a pure windfall” after receiving a “multibillion-dollar payout” from Tesla’s soaring share price, Tesla added.

    Musk is Tesla’s chief executive, and according to Forbes, is the world’s richest person.

    JPMorgan spokesman Brian Marchiony said in an email: “There is no merit to their claim. This comes down to fulfilling contractual obligations.”

    The countersuit escalates the battle between the largest U.S. bank and world’s most valuable car company, which have done little business with each other since the disputed contract.

    Warrants give holders the right to buy company stock at a set “strike” price and date.

    In its Nov. 15 lawsuit, JPMorgan said the Tesla warrants let it lower the strike price to counteract any economic impact from “significant corporate transactions” involving that company.

    JPMorgan said Musk’s Aug. 7, 2018 tweet that he might take Tesla private and had “funding secured,” followed by his reversing course 17 days later, was such a transaction because it made Tesla’s share price more volatile.

    The bank accused Tesla of defaulting because it failed to hand over shares or cash when the warrants expired in June and July 2021, by which time Tesla’s share price had risen about 10-fold.

    Musk’s tweets resulted in a U.S. Securities and Exchange Commission civil lawsuit. It ended with Musk giving up Tesla’s chairmanship, and he and Tesla each being fined $20 million.

    Tesla’s lawsuit seeks unspecified damages.

  • Panasonic To Invest $700 Million To Produce Tesla EV Battery

    Panasonic To Invest $700 Million To Produce Tesla EV Battery

    Japan’s Panasonic will begin producing its new lithium-ion battery for Tesla from as early as 2023, with plans to invest about 80 billion yen ($705 million) in production facilities in Japan, the Nikkei reported on Monday. The powerpack could help make electric vehicles (EVs) more attractive to motorists by extending cruising range by about a fifth, the Nikkei reported, without saying where it obtained the information.

    “We are studying various options for mass production, including a test production line we are establishing this business year. We don’t, however, have anything to announce at this time,” Panasonic said in a statement sent to Reuters.

    Panasonic unveiled the 4680 format (46 millimetres wide and 80 millimetres tall) battery in October. At around five times as big as batteries it currently supplies to Tesla, it is also expected to help the U.S. electric vehicle maker lower production costs.

    Panasonic will make the 4680 batteries at a plant in Wakayama prefecture in Western Japan, with output of less than 10 gigawatt hours a year, equivalent to around 150,000 vehicles, the Nikkei said.

    Panasonic is the sole maker of the more advanced Tesla battery, ensuring it remains a key supplier to the U.S. company, at least for its pricier models, even as the EV maker seeks out battery suppliers in China and elsewhere.

  • Moody’s Expects Tesla To Stay At EV Leader Spot, Upgrades To ‘Ba1’

    Moody’s Expects Tesla To Stay At EV Leader Spot, Upgrades To ‘Ba1’

    Moody’s upgraded Tesla Inc’s debt rating by two notches to “Ba1” from “Ba3” on Monday, reflecting the ratings agency’s expectations that the Elon Musk-led company will maintain its position as the leading battery electric vehicle manufacturer. Moody’s affirmed in a note that Tesla’s outlook remains positive and the company will continue to increase its scale rapidly and improve its profitability notably.

    Tesla’s financial policy is likely to be prudent and liquidity would remain very good, Moody’s said, adding that a more competitive offering of battery electric vehicles by other automakers could start to exert some pressure on the company’s margins in 2023.

    In January, Tesla reported record quarterly deliveries that far exceeded Wall Street estimates, riding out global chip shortages as it ramped up China production. It was the sixth consecutive quarter that the world’s most valuable automaker posted record deliveries.

    The ratings agency also anticipated that Tesla will deliver nearly 1.4 million vehicles in 2022, up from about 936,000 in 2021.