Category: Tesla

Posted on

Tesla China chief unveils aggressive growth plan for China

Tesla Motors expects its China sales to contribute one third of global sales growth this year, a senior executive said, adding that a trademark issue stalling full-entry into China had been resolved.

Veronica Wu, vice president of Tesla's China operations, said the Palo Alto, California-based company planned to open stores in 10-12 Chinese cities by the end of 2014, including its flagship store in Beijing that opened late last year.

Wu, the 43-year-old executive who jumped ship to Tesla from Apple's China unit at the end of last year, said Tesla China had a "very aggressive growth objective".

She said the unit was aiming to contribute "30 to 35 percent" of Tesla's overall global sales growth targeted for 2014.

Wu said the company aimed to double overall total sales this year. She put global sales at 23,000 to 24,000 last year. "I have my work cut out for me," Wu said in an interview. "But I am pretty confident."

Wu discussed Tesla's plans for its Chinese sales and marketing operations at Tesla's flagship store inside an upscale shopping mall in Beijing a day after announcing its pricing strategy.

Tesla said on Thursday that a version of the Tesla Model S, a sleek all-electric battery car which sells for $81,070 in the United States, would retail for 734,000 yuan ($121,300) in China after shipping costs and import duty and other taxes. The company was referring to a Model S with an 85 kilowatt-hour battery pack.

The Beijing-born executive, who worked for Apple's China unit in Beijing from 2006 until she joined Tesla in December, said that given the Tesla car's "quality," the Model S offered "great value".

Wu applauded Beijing's support for electric and plug-in electric hybrid cars.

She said Tesla had also resolved a trademark issue that had long prevented the company from using "Te Si La" - the Chinese name best known among Chinese consumers, which Tesla wanted to use in China.

"We went to court and we won," she said. "The court has given use right to use the name, which is why you see the Chinese name in our store now."

The name had been registered by a local businessman who had refused to give up the trademark. The U.S. company had started offering its popular Model S sedans in China, but with no Chinese language name.

Wu said Tesla had no plans to start local production of its cars in China, at least for the time being.

"Right now we are not considering (that) as yet," the Tesla China chief said.

"The most important task right now, now that we have announced our pricing strategy, is to focus on getting the right car and making sure we have the right service network, and making sure the Chinese customer is happy," she said. "Happy customers are the best advocate of your product, right?"

Posted on

Tesla Model S to launch in Australia by June 2014

Tesla Motors have confirmed the company will return to Australia by June to launch the RHD Model S and its own network of Apple-style stores.

Having wound back its Australian operations following the end of its Roadster the US brand will begin deliveries of the Model S in the second quarter of 2014.

Speaking at the 2014 Detroit motor show, a spokesperson for the automaker said orders had already been taken.

They also confirmed plans are underway to establish a network of Tesla-owned stores in Australia, rather than traditional car dealerships. The Tesla store concept has been developed by the same man behind the Apple Store, George Blankenship.

The stores are usually based in shopping districts rather than traditional automotive areas and are owned by Tesla rather than being franchised to dealers.

The company’s next car, the Model X SUV, won’t arrive in Australia until 2015 at the earliest. Tesla declined to comment on price but it is expected the Model S may be priced around AUD$200,000.

Posted on

Tesla Sales & Share Price up 20 Percent

Tesla Motors said Tuesday it sold 6,900 Model S electric cars in the last three months of 2013 — 20 percent above the previous forecast.

On news that the company delivered 6,900 Model S cars in the fourth quarter, Tesla’s shares spiked 15.74 % in regular trading, and another 3.56 % in after-hours trading.

Palo Alto, Calif.-based Tesla had forecast just under 6,000 Model S sales in the fourth quarter. Tesla delivered about 22,400 Model S vehicles for all of 2013.

Diarmuid O'Connell, vice president of development for Tesla, said demand remains strong for the vehicle, but the company continues to wage battles with franchised auto dealers in different states. Tesla sells its vehicles directly to consumers, not using franchised dealers, which has drawn attacks from many of the dealer groups around the country.

Mr. O'Connell said Tesla is now fighting new political battles in Ohio and New Jersey, and expects a battle in Georgia. Last year, Tesla waged fights in Texas, Virginia, North Carolina and New York.

"We have had some success when we have been able to shed some light on the issue," he said. "But dealers in some states have not changed their point of view" on Tesla's sales system.

Tesla said it is still on target to deliver the first Model X sport-utility vehicle by the end of the year, but the company didn't give any other updates on the vehicle. Currently, the Model S is its only model.

Posted on

NHTSA reaffirms 5-star safety rating of the Tesla Model S

The National Highway Traffic Safety Administration (NHTSA) has reaffirmed the 5-star safety rating of the Tesla Model S overall and in all subcategories for Model Year 2014, confirming the highest safety rating in America.

While Tesla is awaiting feedback from NHTSA regarding their investigation of recent fire incidents, the German Federal Motor Transport Authority, Kraftfahrt-Bundesamt (KBA), recently concluded its review of the incidents, finding no manufacturer-related defects or need for further action.

It is worth noting that a Tesla vehicle is over five times less likely to experience a fire than the average gasoline car and that there have been zero serious injuries or deaths for any reason ever, fire or otherwise, in a Model S.

Over the course of more than 100 million miles driven in almost every possible terrain, weather and crash conditions, the Tesla Model S has consistently protected its driver and passengers, achieving the best safety track record of any car on the road.

Posted on

Tesla Model S is Top Selling Electric Vehicle in Canada

Tesla’s Model S is the top-selling all-electric car in Canada.

Consumer research by IHS shows that within its release year, the Model S captured a staggering 20% of the electric vehicle market share. Over the course of the next year (2013), it more than doubled to 43%, outselling all other OEMs. It is important to note that with such tremendous gains, Tesla did not necessarily conquest customers from other electric vehicle OEMs, but instead, brought new customers from outside the electric vehicle market to grow the current EV customer base.

Current EV competition includes the Nissan Leaf, Mitsubishi Imiev, Smart Fortwo, Ford focus EV, Toyota Rav4 EV and the Chevrolet Spark. This new option has helped the overall electric vehicle market volume more than double from 2012 to 2013 showing signs of continual rapid growth with Tesla leading the way. In short, Tesla's Model S has helped to boost the electric vehicle market in a big way. Perhaps now with strong customer loyalty, Tesla Motors can begin conquesting existing electric vehicle customers from other OEMs through the release of a family of Tesla vehicles.

Posted on

Norweigian Electric Car Sales hit 12% market share in November

Electric car sales in Norway have set yet another record. According to OGV battery electric vehicles sales increased sharply with 1434 new EVs being sold in November giving them an 11.9% market share amongst passenger car sales. This is a 357% increase on the same month last year when EVs accounted for only 2.6% of the market.

After topped the list of new car registrations in Norway in September, the top selling electric car for November is the Tesla Model S with 527 sold, accounting for 4.4% market share on it's own and second over-all of all cars sold behind the VW Golf.

After leading the market for the first time last month, the second most popular EV is the Nissan Leaf with 512 sold and 4.2% market share.

In fact EVs are so in demand in Norway another 249 used EVs were imported in November bring the total to 1683 electric cars.

Posted on

Auto sector adds spark to Japan’s electronic components industry

Japanese electronic component makers are looking beyond a fickle smartphone market that once lured them with rocketing growth, tying their fortunes more closely to the most resilient of Japan's big industries: automobiles.

Component makers such as Murata Manufacturing Co Ltd and TDK Corp are capitalising on rising demand for electronics like those that make cars safer with automatic braking or less polluting with engine controllers.

In contrast, Murata and others are having an up-and-down ride shipping components for Apple Inc's iPhones, while declining smartphone orders were a factor in January when TDK slashed its full-year operating profit forecast.

The auto industry offers a stable alternative, especially because of the enduring prominence of compatriot automakers such as global leader Toyota Motor Co. The value of electronic components per car will grow 26 percent over the decade to 2022, according to Fuji Chimera Research Institute.

But the payoff may not be as quick and will favour those with a longer history in the business.

"TDK and Murata were early to start working in automobiles and are strong there," said Manabu Akizuki, executive director at Nomura Securities. "Moving into automobiles is not so difficult but it takes 10 years to bear fruit."

Murata is the world's largest maker of ceramic capacitors used to control power supplies in electronic gadgets. It gets 40 percent of its sales from smartphones, including the iPhone for which it has been a major supplier since 2010.

Orders were hit earlier this year when Apple curbed output of the iPhone 5. It now aims to rely less on smartphones and boost autos' share of sales to 20 percent from 15 percent.

"Once we have products in place to expand our sales of power-supply parts, we expect to be able to generate growth that can match (that of our components for) smartphones," President Tsuneo Murata said in an interview last month.

Global smartphone demand is growing 30-40 percent a year, but this is likely to slow to 10-20 percent after about two years, he said.

Others in the industry also bemoan smartphone volatility.

"In December, (orders for the iPhone) were cut in half," said one senior executive who declined to be named. "Then they fell by half again. At that time, I thought: 'We'd be better off not doing this. The inventories just pile up.' It took four or five months to work them off. A smaller company would've gone under."

Murata has acquired several companies to bolster its position in autos, including Finnish microelectro-mechanical sensor maker VTI Technologies, bought in 2012 for 20 billion yen ($200 million). The sensors, which detect a car's movements, are used in stability control systems to prevent skidding that can cause accidents.

HYBRID AND ELECTRIC CARS

Hybrid and electric vehicles such as Tesla Motors Inc's all-electric Model S have multiplied the opportunities for electronics manufacturers, especially battery makers Panasonic Corp and Hitachi Ltd.

Batteries, motors, car navigation systems and other electronics account for 50 percent of the value of an electric-powered vehicle compared with 20 percent for a gasoline-powered car, according to estimates from the Ministry of Economy, Trade and Industry.

"The value of electronic materials and parts per vehicle will increase by factors of 10 with electric-powered vehicles," said Moritaka Kamiya, head of TDK's auto sales division.

TDK, which began supplying magnets for windshield wiper motors in the 1960s, bought German electronic parts maker Epcos for 200 billion yen in 2009. That saddled it with a declining business supplying parts for Nokia Oyj mobile phones, but also gave it sensors for car air conditioners and expertise in component modules, which offer higher margins than parts sold separately.

Other electronic components makers targeting the auto sector include Rohm Co Ltd. It increased its share of revenue from autos by 2 percentage points to 25.6 percent in the fiscal first half, and in September announced a tie-up with Freescale Semiconductor Ltd's Japan unit to boost its overseas business.

Nidec Corp, like TDK, has seen its hard disk drive component business shrink because of declining PC demand. In consequence, it has shifted focus to automotive uses such as windshield wipers and power steering.

The investment necessary to enter the market is substantial, says Nomura's Akizuki, but the stakes promise to be considerable.

The total market for automotive electronics will almost double to 26 trillion yen in 2022 from 14 trillion yen in 2012, according to Fuji Chimera Research Institute.

"There isn't the sharp growth and contraction that smartphones have, but it will steadily increase," said Shoji Sato, executive director at Morgan Stanley MUFG Securities.

Posted on

NHTSA opens ‘preliminary evaluation’ into Tesla fires

U.S. safety regulators have opened a preliminary evaluation into two fires in Tesla Model S electric cars.

The National Highway Traffic Administration says fires broke out in two of the cars' batteries after the undercarriage hit road debris. The debris damaged the batteries and caused a thermal reaction and fires. No one was hurt in the fires.

The probe affects more than 13,000 cars sold in the U.S. The agency says it wants to examine risks from the undercarriage getting hit.

Tesla's batteries are located beneath the passenger compartment and protected by a quarter-inch-thick metal shield.

Tesla says it asked the government to investigate even though its cars catch fire at a far lower rate than gas-powered vehicles.

In 2011 the NHTSA opened a similar preliminary evaluation into the Chevy Volt following a severe-impact lab test on a battery pack that resulted in an electrical fire six days later.

This led to GM adding further enhancements to the vehicle structure and battery coolant system in the Chevrolet Volt that would further protect the battery from the possibility of an electrical fire.

Only 3 months ago the NHTSA awarded the Tesla Model S Five Star ratings in all NHTSA crash tests.

Source: NHTSA