Documents Show Tesla Expanding Annual Production To About Half Of 500K Goal


The Daily Kanban has obtained Tesla’s application [PDF here] to the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) for about $100m worth of Sales and Use Tax Exclusion (STE) on its purchase of about $1.2 billion worth of production equipment to be used to produce its affordable Model 3. An analysis of key unredacted portions of this CAEATFA application shows that this massive investment –along with CAEATFA documents related to Tesla’s expansion of Model S and Model X vehicle production— will only increase the electric automaker’s annual production to between 230,000 and 300,000 units per year, well short of the firm’s 500,000 unit per year goal for 2018.

Though Tesla could reach its much-discussed half-million per year production goal through other means, these CAEATFA documents appear to validate Daily Kanban‘s analysis of air quality permits at Tesla’s Fremont plant which indicates a current production limit of about 230,000 units per year.  Tesla has yet to publicize any plans to apply for the new permits or make the new investments required to bring its production rate beyond these limits and towards its planned 2018 rate of 500,000 units per year.

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Analysis: Understanding Tesla’s Potemkin Swap Station

Where are the customers?

Where are the customers?

The return of battery electric vehicles (BEVs) to the US market nearly a century after internal combustion technology swept them aside is one of the most compelling automotive stories of the last decade, bringing a much-needed injection of fresh ideas and enthusiasm to an increasingly mature and commodified industry. Though BEVs remain less than 1% of global auto sales, they have become immensely important to automakers by aiding compliance with various emissions regulations, as well as creating an aura of environmental responsibility and technological innovation. The immense power of these incentives is made manifest in Tesla, the Silicon Valley-based BEV maker that has defied the industry’s immense challenges to startups and become the hottest automotive brand in the world. Despite selling just 31,655 vehicles in 2014, a tiny fraction of the industry’s global volume, Tesla and its CEO Elon Musk receive huge amounts of (largely favorable) media coverage and enjoy a market capitalization that exceeds far larger competitors like Fiat Chrysler Automobiles.

Sales of BEVs continue to grow in the face of lower gas prices, but nearly every model still sells far below initial estimates. Even President Obama’s goal of putting a million plug-in vehicles (BEVs and plug-in hybrids [PHEVs]) on US roads by 2015 has turned out to be wildly optimistic. The high cost of lithium-ion batteries is widely considered a key limiting factor on the growth of BEVs, but just as important is the issue of range and recharging; in a market long accustomed to the convenience of gasoline, the limited range and long recharging time of BEVs remains a major barrier to consumer acceptance. Though rapid charging infrastructure has grown as more BEVs have been brought to market, they still require at least 30 minutes to deliver a meaningful amount of power, speed battery degradation, use competing charging standards, and remain far less common than gas stations.

These shortcomings have pushed some automakers, like Toyota and Hyundai, to avoid BEVs altogether in favor of hydrogen fuel cell electric vehicles (FCEVs) that generate zero tailpipe emissions but can be recharged as rapidly as gasoline cars. The only other way to provide rapid refueling of zero-emissions vehicles (ZEVs) involves swapping batteries rather than recharging them. This strategy was attempted by Project Better Place, a now-defunct firm that deployed battery swap stations and an innovative pricing structure in Israel and Denmark between 2008 and its 2013 bankruptcy, as well as several pilot projects elsewhere. When Better Place failed, the battery swap concept was widely seen as having been discredited. But by then, another startup had taken up the mantle of the promising-yet-challenging swap strategy: Tesla.

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Nissan introduces blue-collar EV, takes jabs at competition

Andy Palmer eNV200 - picture courtesy Bertel Schmitt

If you want to find out whether an automaker is serious about a new technology, there is a simple test: If they put the tech into workaday vehicles, then they really mean it. Today, Nissan passed this test by launching an all-electric delivery van, the e-NV200.

The van is a love child of Nissan’s LEAF and its NV200 van. From the LEAF, it inherited the drivetrain, and the face. From the NV200, it received the brawn of a 9-5 multi-role street fighter that can carry a big load. [Continue Reading]