Volkswagen is set to significantly increase the amount of nickel in its electric vehicle batteries.
Nickel is an important component in battery manufacturing, and helps increase the storage capacity and energy density of batteries. This, in turn, can lead to lower cost-per-kWh of storage, according to the Nickel Institute.
VW’s current generation of batteries are comprised of 65% nickel but, according Reuters, the automaker’s “next generation batteries will have 80% nickel, 10% cobalt and 10% manganese.” The increased nickel should help the company significantly improve its electric vehicles’ storage capacity and range.
Reuters goes on to say that VW plans to produce 3 million electric vehicles by 2025. The company’s new battery tech should go a long way toward ensuring their new vehicles are competitive in an increasingly crowded field.
Uber is taking its battle against the Los Angeles Department of Transportation (LADOT) over customer data to federal court.
While Uber already shares location data for its electric bike and scooter ride-sharing services with many cities it operates in, the LADOT has required that Uber share real-time, or near real-time, data with the agency. The data would include start and end points, as well as the route taken. Uber has fought the ruling and ultimately had its license for its scooter business pulled.
The company appealed the ruling, which was heard by David B. Shapiro, a lawyer who has handled multiple city departments appeals. Shapiro sided with LADOT, but noted that neither side had made very compelling arguments. Uber had not given evidence that real-time data was being abused, or that customers’ privacy was negatively impacted. At the same time, LADOT did not adequately show why it was so important to receive real-time data.
Now Uber is taking the next step, suing the LADOT in federal court. According to CNET, the company is continuing to claim that customer privacy will be negatively impacted.
“Real-time in-trip geolocation data is not good for planning bike lanes, or figuring out deployment patterns in different neighborhoods, or dealing with complaints about devices that are parked in the wrong place, or monitoring compliance with permit requirements,” states the lawsuit. “What it is good for is surveillance.”
The outcome of this lawsuit will likely have far-reaching repercussions for a variety of industries, and determine the degree to which local governments do or don’t have the right to require real-time location data.
Tesla is scouting locations in the Central U.S. for a site to build a Cybertruck Gigafactory.
The Cybertruck is Tesla’s latest model, and the company’s attempt to upend the truck market. The Cybertruck has a futuristic design to compliment its name, and looks straight out of a dystopian movie. With three different models and priced to compete with Ford’s F-150, not to mention the attention the truck has already garnered, Tesla will likely have its hands full keeping up with demand.
Tesla’s CEO Elon Musk tweeted the company is looking for a suitable location for its new factory.
Scouting locations for Cybertruck Gigafactory. Will be central USA.
Panasonic has announced it is winding down its involvement in Tesla’s solar factory in Buffalo, NY as there are increasing signs of a detonating partnership.
“Panasonic Corporation will begin to wind down U.S. production of photovoltaic cells and modules at Gigafactory New York in Buffalo, NY, in line with the global solar strategy led by its Life Solutions Company,” the company said in a statement. “By the end of May 2020, Panasonic will cease U.S. solar manufacturing operations and is scheduled to exit the facility by the end of September 2020.
“Panasonic is supporting Tesla in its efforts to identify and hire qualified applicants from Panasonic’s impacted workforce. Tesla plans to hire qualified applicants to new positions needed to support its solar and energy manufacturing operations in Buffalo.”
The move comes as Panasonic is working to divest itself of some of its less profitable businesses and streamline its operations. There seems to be indication the two companies’ partnership is fraying, as U.S. News & World Report points out that Tesla is looking to diversify its battery supplies to include batteries from South Korea’s LG Chem Ltd and China’s Contemporary Amperex Technology Ltd.
In its own statement, Panasonic downplayed any issues with its partnership with Tesla, pointing out that the two companies are continuing to work together at Tesla’s Nevada facilities.
“This decision will have no impact on Panasonic and Tesla’s strong partnership in Nevada. The two companies will continue their industry-leading electric vehicle battery work taking place at Tesla’s Gigafactory outside of Reno, NV.”
Pony.ai has announced that it has secured $400 million in funding from Toyota to help develop its autonomous driving tech.
Pony.ai claims it is “developing the safest and most reliable autonomous driving technology globally. Having accumulated millions of kilometers in autonomous road testing in the most complex scenarios, we have a solid foundation to deliver autonomous driving systems at scale.”
The investment comes as virtually every major automaker, and numerous technology companies, are pursing autonomous driving tech. So far, Toyota has kept most of its plans under wraps, especially compared to some of its rivals.
Based in both the U.S. and China, Pony.ai’s technology is designed to meet the challenges of roads and driving conditions in vastly different and unique circumstances. A key element to that approach is the company’s Perception module.
“Our Perception module combines the strengths of a heuristic approach and deep learning models to boost performance, while ensuring the safety and operational redundancy of our vehicles,” says the company’s website. “Performance capability is further enhanced by our multi-sensor fusion technology, which intelligently leverages the most reliable sensor data depending on different environmental or driving scenarios.”
Pony.ai’s technology should go a long way toward helping Toyota meet its autonomous driving goals—whatever they may be.
Tesla may not have nearly the size or market penetration of its more established rivals, but the company is years ahead of them in electronics technology.
Nikkei Business Publication did a teardown of the Tesla Model 3, giving engineers from competitors the opportunity to examine the electronic components. In particular, the teardown looked at the integrated central control unit, the brains of the car. Tesla created the Full Self-Driving (FSD) Computer, or Hardware 3, after finding there were no existing solutions available.
According to Nikkei, “one stunned engineer from a major Japanese automaker examined the computer and declared, ‘We cannot do it.’”
As electric vehicles and self-driving cars become the standard, FSD-type hardware will be in high demand and be one of the single most critical components of such vehicles. As Nikkei highlights, however, industry experts don’t expect the technology to be widely used until 2025, giving Tesla a six-year head start.
Nikkei’s sources claim companies such as Toyota and VW have the technological ability to roll out similar hardware, but feel indebted to the supply chain they have spent decades building up. That supply chain will be devastated by FSD-style hardware that will greatly simplify the electronic design of vehicles, cutting down the number of components needed.
Tesla has already been credited with a significant advantage in its battery technology, allowing it to spend roughly $50 per kilowatt hour less than competitors. Now with it having an equally significant advantage in its electronics tech, competitors will have to play catchup on multiple fronts—whether for technical reasons or not.
BAE Systems has successfully completed the maiden flight of its solar-powered, high-altitude, unmanned aircraft.
The Persistent High Altitude Solar Aircraft (PHASA-35®) is designed to operate in the stratosphere and will bridge the gap between aircraft and satellites. The aircraft is a High Altitude Long Endurance (HALE) vehicle, and uses highly efficient solar panels, combined with long-life batteries to help it operate for up to a year without landing. BAE sees the aircraft being used by both military and commercial customers for communications, 5G deployment, surveillance and more.
“This is an outstanding early result that demonstrates the pace that can be achieved when we bring the best of British capability together,” said Ian Muldowney, Engineering Director. “To go from design to flight in less than two years shows that we can rise to the challenge the UK Government has set industry to deliver a Future Combat Air System within the next decade.”
BAE says the new aircraft helps deliver abilities and potential not currently being met by either traditional aircraft or satellites, while still offering the benefits of both.
Hyundai has signed a deal with electric vehicle startup Canoo to co-develop a platform that will serve as the basis for the automaker’s electric vehicle endeavors.
The two companies will use Canoo’s existing electric skateboard—the platform upon which an electric vehicle is built, housing the batteries and electric motors—as the basis for a platform the automaker can use for both Hyundai and Kia models. One of the selling points of Canoo’s skateboard is that, in addition to housing the critical components, it is designed around functional integration. In other words, each component fulfills as many functions as possible. This significantly cuts down on the complexity of the skateboard, while also reducing size, weight and cost. Fewer components also mean more cabin space.
Hyundai had previously committed to investing $87 billion over the next five years to help foster and lay the groundwork for future growth. The deal with Canoo is a big part of that.
“We were highly impressed by the speed and efficiency in which Canoo developed their innovative EV architecture, making them the perfect engineering partner for us as we transition to become a frontrunner in the future mobility industry,” said Albert Biermann, Head of Research & Development, Hyundai Motor Group. “We will collaborate with Canoo engineers to develop a cost-effective Hyundai platform concept that is autonomous ready and suitable for mass adoption.”
With automakers racing to move to electric vehicles, Hyundai’s announcement is welcome news from a company that has built a reputation on building quality vehicles at an affordable price point. Hopefully that reputation carries over to their electric vehicles, thanks in no small part to the benefits of Canoo’s skateboard.
Uber and Los Angeles have been fighting over a rule ordering scooter rental companies to share ride data with the city—a rule that was just upheld on appeal, according to the Los Angeles Times.
The Los Angeles Department of Transportation (LADOT) passed a rule requiring scooter and electric bike sharing services to provide real-time data on riders’ trips, including start and end points, as well as the full route traveled.
Uber has argued that providing that degree of data would unnecessarily risk riders’ privacy and make it all too easy to personally identify individual riders, and “reveal personal information about riders, including where they live, work, socialize or worship,” according the LA Times. After six months of arguing, the city suspended Uber’s operating license.
Uber filed an appealed, which was heard “by David B. Shapiro, a lawyer who has handled appeals for multiple city departments, including the Los Angeles Fire Department and the Department of Cannabis Regulation.”
Although Shapiro sided with the city in saying it was within its rights to terminate Uber’s operating permit, he said both sides had made weak arguments. Uber failed to provide examples of data being used improperly, while Shapiro did acknowledge Uber’s concerns. At the same time, LADOT failed to make a compelling case as to how it could use real-time data to solve the problems it says are the reason for the rule. Uber has already said it is willing to provide near-real-time, aggregated data that would protect privacy.
Shapiro’s decision is a loss for privacy advocates and concerned citizens, but Uber has already promised to appeal.
The Los Angeles Fire Department has become the first in the country to order an electric fire engine, according to a department news release.
The fire engine is based on the Rosenbauer Concept Fire Truck (CFT). Austrian-based Rosenbauer first demoed the fire engine in Los Angeles last fall. The CFT will be customized to meet the specific needs of the LAFD
“I am excited that we are the first Department in North America to order this cutting-edge fire engine,” said LAFD Chief Ralph Terrazas in the news release. “The electric fire engine is an innovative tool that will help reduce noise and harmful diesel emissions while providing a flexible tool for firefighting and rescue operations from a technologically advanced platform. We are looking forward to evaluating it in a real-world environment once it hits the streets of Hollywood next year.”
The fire engine will have two batteries, providing 100 kilowatt hours, which should power operations for two hours. An onboard diesel generator can be used to operate beyond the batteries’ limits.
The LAFD expects to take possession of the new fire engine in early 2021, ushering in a new era for the department.
Citing Cairn Energy Research Advisors, CNBC is reporting that Tesla has a significant advantage in electric battery technology.
The electric vehicle pioneer is facing more and more competition from startups and established rivals. Rivian has made headlines as a more traditional-looking electric vehicle manufacturer, while Ford has also had its fair share of news for an all-electric Mustang Mach-E and upcoming F-150. GM, Toyota, Subaru and others are all planning to roll out all-electric lineups, with Subaru committed to producing only electric vehicles by the mid-2030s.
According to Sam Jaffe, managing director of Cairn Energy Research Advisors, despite the competition, Tesla still has a major advantage in the battery tech it uses. While most automakers use battery packs that have pouch or prismatic cells, “Tesla is the only automaker to use cylindrical battery cells in its battery packs.” In the last four years, the cost of cylindrical cell battery packs has dropped over $100 per kilowatt hour (kWh), hitting $158.27 per kWh last year. In contrast, the cost of the competition’s battery packs is still running over $200 per kWh.
While a difference of less than $50 per kWh may not seem like a lot, as manufacturers ramp up production and begin mass-producing electric vehicles, that expense will add up quickly. In addition, Jaffa says Tesla also has an advantage not only in its more advanced cylindrical battery cells, but also in its battery management system.
“Tesla has really revolutionized that part of the battery pack and made it much more sophisticated, and it gives them the competitive advantage,” said Jaffe, according to CNBC.
“We just put out our latest research on Tesla,” says Ark Investment analyst Tasha Keeney. “We think over the next five years our expected value for the stock is $7,000 per share.” Tesla’s current share price is roughly $735 equating to a market cap of $132.4 billion. A $7,000 per share price would increase their current value tenfold. And that’s just Ark’s “expected” valuation. Ark’s bullish valuation is $15,000 a share, a $2.7 trillion market cap.
Keeney says it’s because Tesla is a leader in electric autonomous vehicles. “That’s the future of the auto market. What we’ve seen over the past year is that traditional autos have really struggled to produce EVs that are on par with Tesla’s cars and its data library. In terms of autonomous driving, it is really just running away from the competition.”
Tesla Has a Massive Advantage With Their Machine Learning Algorithms
In electric vehicles, Tesla is the leader and that’s because they’re writing down the battery cost decline curve. At Arc Invest we’ve actually done a lot of work using Wright’s Law to predict the future declines of batteries. Basically, for every cumulative doubling in production, you get a corresponding reduction in cost. We actually think that Tesla’s gross margins could go from say around 20 percent today, if you take out credits, to up to 40 in the best-case scenario. They also have not lost share in the electric vehicle market.
They’re sitting right around an 18 percent share. We think that they’re at least three years ahead of other automakers on a battery efficiency standpoint. That’s dollar per range that you get out of the car. Then on autonomous driving, they’re the only automaker that’s collecting data from their vehicles. This gives them a massive advantage in terms of training their machine learning algorithms to get the car to drive.
Our Case Is Really Driven By Autonomous Driving
We’ve devised a probability matrix where we’ve looked at the past year. We’ve seen what Tesla’s done in Shanghai and It’s amazing. They’ve built the factory in less than a year, and they’re right now shipping cars. Tesla’s shown that they can scale in a capital-efficient manner. We look at a few key variables. We look at capital efficiency, gross margins based on our Wright’s Law work, and autonomous driving. We set probabilities to each of those that help us arrive at that $7,000 mark.
Our bulk case is really driven by autonomous driving. This could be a huge opportunity for Tesla. It’s going to totally transform the business model if they pull it off. They’re going to get software like margins in a market that we think could be worth trillions of dollars globally.
Tesla’s In a Great Position To Be the Leader of the Future
Tesla’s been misinterpreted for a long time. One, on the autonomous driving front. You can’t value it like a traditional automaker because the future of the auto industry is changing. Electric vehicles and autonomous vehicles are going to make this a more consolidated market. A lot of automakers are going to go out of business and Tesla’s really in a great position to take advantage and be the leader of the future.
So again, if you look at autonomous driving that means software like multiples because we think they’ll get software like margins off of that business.
Report: Potential Tesla Valuation of $2.7 Trillion by 2024
Walmart and Nuro have partnered to bring driverless grocery delivery to Houston, Texas, according to an announcement Nuro posted on Medium.
Nuro is a robotics company specializing in electric, self-driving vehicles. The company already operates a delivery service in Houston for Kroger. In their blog post, Nuro emphasized the benefits of working with Walmart, a company that revolutionized the supply chain and retail experience.
The service will be available to a select group of pilot customers at first.
“Nuro’s self-driving technology and fleet will power this pilot with Walmart to provide customers in Houston with another innovative, accessible option for getting the groceries they need day-to-day.
“To start, self-driving deliveries will be available to a pilot group of participants who have opted in to try the service, teaching us more about how to best serve those customers. Through the pilot, we’ll gain insights that will enable us to further develop and refine our service, while helping Walmart create the best end-to-end customer experiences.
“At Nuro, we believe in the power for self-driving technology to support and improve local commerce, and see this technology as a key part of our future. We’re working to expand our footprint in Houston, to maximize the impact of our delivery platform for the community at city-scale. Throughout 2019, we’ve been building toward this objective, and this partnership represents another step forward.”
Should the Nuro/Walmart venture prove successful, it’s a safe bet communities around the country may start getting their groceries delivered this way.
Electrek is reporting that Elon Musk has said “it won’t be long before Model S has a 400-mile range.”
One of the biggest limitations of electric vehicles is range. While they are ideally suited for city and suburban travel, their range can often be a limitation for rural drivers or those wanting to take them on long road trips.
While the Model S currently has a maximum range of a 373 miles, battery technology is reaching the point where the company expects to cross the 400-mile threshold soon. Musk attributed the improvements to changes to the core chemistry in the vehicle’s batteries.
The end result, according to Musk, is “we’re rapidly approaching a 400-mile range for Model S, for example. So, it won’t be long before Model S has a 400-mile range.”
This is good news for Tesla customers, or those interested in making the jump to electric vehicles.
In what is good news for electric vehicle fans, Rivian has announced that it’s upcoming vehicles will be priced less than originally expected, according to Reuters.
Rivan announced in December that it had secured an addition $1.3 billion in funding. Although the automaker has not yet produced any vehicles, its technology will be used by Ford in its electric vehicles and the company will also create 100,000 electric vans for Amazon.
One of the appealing elements of Rivian’s designs is a more traditional aesthetic, unlike Tesla’s Cybertruck that looks like it’s straight our of a dystopian science fiction movie. For customers excited about Rivan’s upcoming truck and SUV, there’s more good news than just the vehicles’ looks.
According to Reuters, “Rivian on Saturday displayed its pickup truck and SUV at an event in San Francisco’s Bay Area and said that when their prices are unveiled soon they will be lower than has been previously announced.”
It’s possible the move may be due to the number of pre-orders the company has received. While founder and chief executive R.J. Scaringe didn’t say how many individuals had paid the $1,000 pre-order deposit, he did say the reaction had been “really positive.”
“My view is that cars are becoming the most relevant units on the internet, says Volkswagen CEO Herber Diess. “Cars are becoming devices. They are fully connected. Data streams into the car and out of the car will be much higher than with smartphones. So the car gets a new role in the internet ecosystem. We have to adapt to that.”
Herbert Diess, CEO of Volkswagen, discusses how cars will be the most relevant devices on the internet in an interview with CNBC International at Davos 2020:
Cars Are Becoming Internet Devices
My view is that cars are becoming the most relevant units on the internet. Cars are becoming devices. They are fully connected. Data streams into the car and out of the car will be much higher than with smartphones. So the car gets a new role in the internet ecosystem. We have to adapt to that. From a traditional car manufacturer to become a tech company, it’s quite a long way to go but we are on the way. It will be a huge transition.
I think it’s great to have a good competition (regarding Tesla building a plant in Germany). We think that Tesla plays a very important role in the transition because they are paving the way. They’re probably running higher risks than we can from the traditional industry but they’re paving the way. They show that electric vehicles are working and that the fully connected car is the right solution. So we appreciate Tesla’s success.
Cars Will Be The Most Relevant Internet Devices, Says Volkswagen CEO Herbert Diess
Following a petition to the National Highway Traffic Safety Administration (NHTSA) to recall Tesla vehicles for “unintended acceleration,” Tesla has responded saying there is no evidence to support the claim.
Brian Sparks originally filed the request on September 30, 2019 and said “it appears Tesla vehicles have a Sudden Unintended Acceleration Problem and Tesla must know about this problem.”
In their response today, Tesla calls the petition “completely false” and says Sparks is a Tesla stock short-seller. CNBC confirms that Sparks “is currently shorting Tesla stock,” calling into question his motivations.
In the meantime, after going into the technical details as to why unintended acceleration should not be possible, Tesla highlighted their ongoing cooperation with the NHTSA:
“We are transparent with NHTSA, and routinely review customer complaints of unintended acceleration with them,” says the blog post. “Over the past several years, we discussed with NHTSA the majority of the complaints alleged in the petition. In every case we reviewed with them, the data proved the vehicle functioned properly.”
Reuters is reporting that Subaru has set the first half of the 2030s as its target for making the switch to electric vehicles.
The announcement is a bold move for the company that prides itself on producing quality, all-wheel-drive vehicles that are popular with active, outdoors consumers. Subaru has a long-term goal of a carbon-free society, and eliminating fossil fuel vehicles from its lineup will go a long way toward achieving it.
As a mid-term goal, the company plans to have at least 40% of its lineup be either electric or hybrid by 2030, with all models being electric-powered within a few years of that.
“Subaru’s strong commitment and dedication toward car-manufacturing that we have cultivated throughout our history remain unchanged,” President Tomomi Nakamura said in a statement seen by Reuters.
With Subaru’s well-established reputation for safety, quality and reliability, the move to electric vehicles should provide a significant boost to the market in general.
The Wall Street Journal is reporting that Fiat Chrysler and Foxconn are working together to develop electric vehicles.
Fiat Chrysler may be the eighth largest automaker, but it lags significantly behind in the electric vehicle market. This is a long-term problem the company must deal with, as both China and Europe have increasingly been cracking down on automotive emissions.
Foxconn, on the other hand, is well known in the electronics industry and is one of the main companies behind the success of Apple’s iPhone manufacturing. The company has been working to branch out into other industries, and its “chairman, Young Liu, said during an investor call in November that electric vehicles were one area the company was focusing on for future growth,” according to the WSJ.
The company had indicated it was not interested in building the entire car itself, but providing a chassis platform for automakers to use. That approach was evidently agreeable to Fiat Chrysler.
While Fiat Chrysler did not return the WSJ’s request for comment, regulatory filings in Taiwan provided evidence of the proposed joint venture, with Foxconn having roughly a 40% share.
In an interview with Bloomberg, Daniel Kirchert, CEO of Chinese electric vehicle maker Byton, outlined his belief the car is becoming the next smart device.
Speaking about a recent deal with ViacomCBS to bring infotainment into the car, he said:
“Yeah, so I think from their side, they clearly think the car is going to become the next screen…and we have founded Byron with the vision of building a smart device on wheels….Obviously, I think our role of the car will clearly change in the future, and I think it will become a kind of fourth space.
“I mean, right now, time in cars is downtime. We go from A to B, it’s a waste of time. But with the technology we are bringing in, making the car a smart device, it will also become a digital living space. We will be able to work, we will be able to entertain and bringing in content to the car to stream is the next logical step.”
As the interview moved into possible revenue streams, Kirchert talked about the revenue sharing that would naturally occur between automakers and content providers.
“Besides selling a great car, we have built a great digital platform, which is a device, and we will bring in great content. The users will be willing to pay for great content, and of course we’re going to share that with partners.”
As cars become more connected, both with data being streamed to them and the data they generate themselves, Kirchert believes this will open up all new opportunities.
“Without any doubt, it will become a major source of revenue in the mobility industry…being on the move, and being connected on the move and monetizing data streams from there.”
The interview is a fascinating insight from the CEO of a newer car company that is approaching the industry from a very different perspective than the old standbys.
Few SUV designs are more recognizable as GM’s Hummer. Following its retirement in 2010, in the midst of GM’s bankruptcy, the company is bringing the iconic SUV back as an electric vehicle.
According to The Wall Street Journal, the Hummer will not be its own brand as it was previously. Instead, it will be another model under the GMC line. GMC has increasingly become GM’s premium line and should be a good fit for the redesigned Hummer.
Moving the vehicle to an electric platform should also help Hummer avoid the criticism it faced the first time around. Weighing in at over 6,000 pounds and getting a mere 10 miles-per-gallon, the Hummer was a favorite target of environmentalists. The size of the vehicle will also give it plenty of space for batteries.
WSJ reports that GM has already enlisted Lebron James to help promote the new vehicle, including during a Super Bowl commercial next month. The combination of rugged looks, off-road performance and electric economy will likely prove to be a winning combo for the Detroit automaker.
