Tag: Elon Musk

Tesla to boost production with existing factories, new investments in India and Mexico on hold

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tesla said on Tuesday that it will use its existing factories to build new and more affordable vehicles as early as late this year, leaving investments in new factories in Mexico and India unlikely in the near term.

The world’s top EV maker said it plans to raise production by 50% from 2023 to its current capacity of close to 3 million vehicles before investing in new manufacturing lines.

“This update may result in achieving less cost reduction than previously expected but enables us to prudently grow our vehicle volumes in a more capex efficient manner during uncertain times,” the company said.

Investors cheered the decision not to take the risks of building new models in new factories, with Tesla shares jumping 12% in after-hour trading despite the company’s quarterly results missing financial targets.

“I think it’s a positive that he’s not just barreling ahead with an expansion plan, ignoring the challenges in the market and the fact that he’s doing a cheaper vehicle from the existing product line,” said Elliot Johnson, chief investment officer at Evolve ETFs, which manages nearly $6 billion in assets, including investments in Tesla and other EV makers.

Reuters exclusively reported on April 5 that Tesla had scrapped plans to launch its cheap vehicle, known as Model 2, which Tesla planned to build in Texas, Mexico and a third country. The Model 2 had been expected to cost $25,000 and drive Tesla’s growth into a mass-market automaker.

Musk had responded to the Reuters report with a message on X that “Reuters is lying.” He did not give details and on Tuesday he did not directly address the Reuters report.

Instead, Tesla discussed unidentified new models that appeared to be different products.

In January, Musk said Tesla aimed to deliver the cheaper new model in the second half of 2025, adding that the model will have “revolutionary manufacturing technology” and generate the next wave of growth for Tesla.

But Lars Moravy, head of Tesla’s engineering, said on Tuesday that new manufacturing processes and production lines come with “some risks,” and the automaker made a “major shift” to utilize its facilities to build low-cost vehicles in a fast and efficient manner for now.

Musk had been expected to meet with Indian Prime Minister Narendra Modi on Monday and announce major investments in an auto factory to produce a small, affordable model. Musk canceled at the last minute, citing “very heavy Tesla obligations” and said he aimed to reschedule the visit for later this year.

Musk said last year that Tesla will “definitely” build its factory in Mexico, but that the timing of the factory would depend on the economy and interest rates that reduce the affordability of vehicles. He also said that Tesla would start the initial phases of construction last year.

Tesla did not respond to a request for comment on Tuesday on its plans in Mexico and India.

Analysts said it would be hard for Tesla to expand capacity while it braces for slowing sales after years of double-digit growth rates. Tesla on Tuesday reiterated that this year, its vehicle volume growth rate may be notably lower than in 2023. Musk added during a conference call that sales would still grow from last year.

Smaller peer Rivian, known for its R1S SUVs and R1T pickup trucks, said last month it would start producing its smaller, less expensive electric R2 SUVs at its existing U.S. factory to hasten deliveries in the first half of 2026. It had previously planned to build the R2 at a new $5 billion plant.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Elon Musk says Tesla robotaxi will be like a combo of Airbnb and Uber

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Usually when you buy a car, either you drive it or you rent it out to a ride-hailing company, you don’t get to do both. Electric vehicle maker Tesla now plans to enable its customers with both choices soon with its robotaxi.

“Tesla will be some combination of Airbnb and Uber,” Chief Executive Officer (CEO) Elon Musk said on April 23 in a conference call with investors after the company’s results for the January to March 2023 period.

Explaining the concept, he said there will be some cars owned by Tesla and some owned by an end user who will choose when their car can be used. “At any time, they can have the car come back to them, like Airbnb for cars….,” he said.

Musk’s comments come days after he announced Tesla plans to unveil its long-promised robotaxi on August 8 this year amid weak sales and competition from cheap Chinese EVs.

Tesla plans to operate its own fleet of self-driving taxis. Owners would be able to “add or subtract their cars from the fleet whenever they want” and “they can decide if they want to only let the car be used by friends and family, or only by five-star users or by anyone”, he explained.

Also Read: Tesla shares surge 13% in extended trading despite steepest revenue drop since 2012; Here’s why

The electric carmaker also shared a preview of what the ride-hailing app service would look like once integrated into the Tesla app.

Preview of autonomous ride-hailing via Tesla app pic.twitter.com/GPs5itjA84

— Tesla (@Tesla) April 23, 2024

A fully autonomous vehicle, pitched to investors in 2019, has long been key to Tesla’s lofty valuation. In recent weeks, Tesla has rolled out the latest version of the driver-assistance software that it markets as FSD, or Full Self-Driving, to consumers.

Also Read: Elon Musk’s India plan remains on track, Tesla to increase sourcing from India to $15 billion

When asked about the pathway to regulatory approval for unsupervised FSD in the United States, he said, “Other autonomous driving companies are also working with regulators. The safety numbers are going to be hard to ignore. I don’t think there will be significant regulatory barriers if we can prove the safety data is there.”

Also Read: Automakers line up over 15 new EVs in India for 2025 while Tesla struggles with sales

Also Read: Electric cars may only get cheaper from here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brazil judge gives X five days to explain alleged non-compliance with court ruling

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A Brazilian Supreme Court justice has given social media platform X until Friday to explain why it allegedly did not fully comply with earlier rulings ordering the Elon Musk-owned company to block certain accounts.

The decision is part of an inquiry opened earlier this month by Justice Alexandre de Moraes into Musk, after the billionaire said he would reactivate accounts on X that the judge had ordered blocked.

X, the social media platform previously known as Twitter, did not immediately respond to a request for comment.

Moraes, whose decisions regarding X Musk called “unconstitutional,” set the five-day deadline in a public decision on Saturday, though the count began on Monday.

A report by Brazil’s federal police seen by Reuters on Friday showed accounts on X that local courts had ordered blocked were still active on the platform by early April, contradicting a previous statement by the company.

These accounts were still able to get new local followers and to publicize links for live streaming videos, according to the report.

“Representatives for social network ‘X’ (formerly known as Twitter) are requested to comment on the non-compliances highlighted in the report presented by the police,” Moraes wrote in the decision.

Moraes is investigating “digital militias” that have been accused of spreading fake news and hate messages during the government of former far-right President Jair Bolsonaro and is also leading an investigation into an alleged coup attempt by Bolsonaro.

Previously, lawyers representing X said the platform had blocked 226 accounts since 2022 after orders from the court or Brazil’s top electoral court, adding the accounts were still blocked and not allowed to live stream videos.

The lawyers have also said X would comply with every ruling issued by both courts.

Also Read: Elon Musk accuses Australia of censorship after court bans violent video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Elon Musk accuses Australia of censorship after court bans violent video

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tech billionaire Elon Musk accused Australia of censorship after an Australian judge ruled that his social media platform X must block users worldwide from accessing video of a bishop being stabbed in a Sydney church.

Prime Minister Anthony Albanese responded Tuesday by describing Musk as an “arrogant billionaire” who considered himself above the law and was out of touch with the public.

X Corp., the tech company rebranded in 2023 by Musk after he bought Twitter, announced last week it would fight in court Australian orders to take down posts relating to a knife attack on Bishop Mar Mari Emmanuel in an Assyrian Orthodox church as a service was being streamed online on April 15.

The material was geoblocked from Australia but available elsewhere.

But the regulator that made the orders, Australia’s eSafety Commission, which describes itself as the world’s first government agency dedicated to keeping people safer online, successfully applied to the Federal Court in Sydney for a temporary global ban on sharing the video of the bishop being stabbed.

In an after-hours hearing Monday, Justice Geoffrey Kennett suppressed the footage from all X users until Wednesday, when an application for a permanent ban will be heard.

Hours later, Musk posted on his personal X account a cartoon that depicted a fork in a road with one path leading to “free speech” and “truth” and the other to “censorship” and “propaganda.”

Musk cited Albanese telling reporters Monday that other social media platforms had largely complied with the regulator’s orders to take violent content down.

“I’d like to take a moment to thank the PM for informing the public that this platform is the only truthful one,” Musk posted.

Albanese berated Musk in several television interviews Tuesday.

“We’ll do what’s necessary to take on this arrogant billionaire who thinks he’s above the law, but also above common decency,” Albanese told Australian Broadcasting Corp. “The idea that someone would go to court for the right to put up violent content on a platform shows how out of touch Mr Musk is. Social media needs to have social responsibility with it.”

Albanese told Sky News, “This is a bloke who’s chosen ego and showing violence over common sense.”

“This isn’t about censorship. It’s about common sense and common decency. And Elon Musk should show some,” Albanese told Seven Network.

The regulator’s lawyer, Christopher Tran, had argued Monday in court that geoblocking Australia did not meet the definition of removal of the footage under Australian law.

Tran said the footage was a “graphic and violent video” that would cause “irreparable harm if it’s continuing to circulate.”

X’s lawyer, Marcus Hoyne, said he was unable to get instructions from his San Francisco-based client because it was early Monday morning in the United States.

X did not immediately respond Tuesday when asked if and how the company had complied with the court order.

Musk has described eSafety Commissioner Julie Inman Grant as the “Australian censorship commissar.”

Albanese said on Monday that social media posts, misinformation and dissemination of violent images had exacerbated suffering from the church attack, which the two clerics survived, as well as a knife attack at a Sydney shopping mall two days earlier that killed six people.

X’s Global Government Affairs team said Saturday that Inman Grant ordered it to remove some posts that commented on the church attack, but it said the posts did not violate X’s rules on violent speech.

X said the Australian regulator had demanded the platform “globally withhold these posts or face a daily fine of $785,000.”

“X believes that eSafety’s order was not within the scope of Australian law and we complied with the directive pending a legal challenge,” the Global Government Affairs account said. “While X respects the right of a country to enforce its laws within its jurisdiction, the eSafety Commissioner does not have the authority to dictate what content X’s users can see globally.”

“We will robustly challenge this unlawful and dangerous approach in court,” it added.

The live feed of the church attack and social media posts that followed attracted a crowd of 2,000 people and fueled a riot against police, who barricaded the young suspected attacker inside the place of worship.

The rioting injured 51 police officers and damaged 104 police vehicles, officials said.

Three alleged rioters were arrested by Sunday and police released images Monday of 12 suspects they accuse of being the main instigators of the violence, taken from video of the riot.

A 16-year-old boy accused of the stabbings has been charged with terrorism offences. He has received online condemnation and praise for the attack.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Elon Musk’s India plan remains on track, Tesla to increase sourcing from India to $15 billion

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tesla CEO Elon Musk may have postponed his visit to India, but the company’s plan to apply for the new electric vehicle manufacturing policy remains intact, according to sources familiar with Musk’s India strategy. CNBC-TV18 has learnt that Tesla’s Chief Sourcing Officer will soon visit India to meet leading component manufacturers.

The US-based automotive company aims to increase component sourcing from India to $15 billion over the next five years, said a source requesting anonymity. Tesla teams continue to explore different locations in India for the establishment of a manufacturing plant.

Tesla recently signed an agreement with Tata Electronics for component sourcing. One of Tesla’s top five suppliers in India, Sona Comstar, has inaugurated a manufacturing facility in Mexico to cater to electric vehicle demand in North America. The facility is expected to meet the demand for components from Tesla among other car manufacturers.

Also Read: Sona Comstar inaugurates new plant in Mexico, boosting BEV driveline production

India assumes greater importance for Tesla as the company is grappling with slowing sales in China. Musk is now likely to visit India after the general elections, and sources suggest one of the reasons Musk may have postponed his visit was to avoid getting caught up in BJP and opposition politics during the election season.

The Tesla CEO was also keen on announcing Starlink’s entry into India, which he may not have been able to do during this visit as the Indian government cannot make new announcements during the model code of conduct.

Musk attributed the postponement of his India visit to heavy responsibilities at Tesla. The company has seen a decline in its biggest markets, including China. BYD recently surpassed Tesla in annual production in 2023. Tesla shareholders have been seeking a clear roadmap from Musk to increase growth and launch new vehicles.

Also Read: Amitabh Kant: If BYD can take on Tesla, why can’t Tata and Mahindra?

The company has seen a 40% slide in the stock price this year. Advertisement revenues at X have also been falling. The company recently recalled 4,000 Cybertrucks due to an accelerator pedal issue.

Tesla has an earnings call on April 23 with investors and analysts to discuss the company’s first-quarter results. Musk is expected to face questions on negative growth in China, the rollout plan for Model 2, and Tesla’s AI strategy.

Also Read: Electric cars may only get cheaper from here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tesla cuts global prices, full self-driving software now $8,000 amid EV price war

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tesla has cut prices in a number of its major markets, including China and Germany, following price cuts in the United States, as it grapples with falling sales and an intensifying price war for electric vehicles (EVs), especially against Chinese EVs.

The price cuts come after Tesla, led by its billionaire CEO Elon Musk, reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years.

“Tesla prices must change frequently in order to match production with demand,” Musk posted on X on Sunday.

Tesla, the EV market leader, ignited an EV price war over a year ago by aggressively cutting prices at the expense of profit margins.

Tesla cut the starting price of the revamped Model 3 in China by 14,000 yuan ($1,930) to 231,900 yuan ($32,000), its official website showed on Sunday.

In Germany, the price of the Model 3 rear-wheel-drive was trimmed to 40,990 euros ($43,670.75) from 42,990 euros, where the price had been since February.

There were also price cuts in many other countries in Europe, the Middle East and Africa, a Tesla spokesperson said.

US prices of the Model Y, Model X and Model S vehicles were cut by $2,000 on Friday. On Saturday Tesla slashed the price of its Full Self-Driving driver assistant software to $8,000 from $12,000 in the United States.

Tesla has been slow to refresh its ageing models as high interest rates have sapped consumer appetite for big-ticket items, while rivals in China, the world’s largest auto market, are rolling out cheaper models.

This weekend, Musk postponed a planned trip to India, where he was to have met Prime Minister Narendra Modi, citing obligations at Tesla. The trip was to have included the announcement of plans for Tesla to enter the South Asian market, Reuters reported on Saturday.

Musk said last Monday that Tesla will lay off more than 10% of its global workforce as the automaker braces for its first annual drop in deliveries.

The announcement came after Reuters reported on April 5 that Tesla had scrapped plan to develop its long-awaited affordable EV in favour of robotaxis. Musk posted that “Reuters is lying” after the report, without citing any inaccuracies. He has not spoken further about the model, leaving investors clamouring for clarity.

Tesla shares have fallen 40.8% so far this year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tesla trims prices on Model Y, S and X amid market challenges

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tesla knocked $2,000 off the prices of three of its five models in the United States late Friday, another sign of the challenges facing the electric vehicle maker led by billionaire Elon Musk.

The company cut the prices of the Model Y, a small SUV which is Tesla’s most popular model and the top-selling electric vehicle in the U.S., and also of the Models X and S, its older and more expensive models. Prices for the Model 3 sedan and the Cybertruck stayed the same.

The cuts reduced the starting price for a Model Y to $42,990 and to $72,990 for a Model S and $77,990 for a Model X.

The move came the day after Tesla’s stock tumbled below $150 per share, eliminating all gains made over the past year. The Austin, Texas, company’s stock price has dropped about 40% so far this year amid falling sales and increased competition. Discounted sticker prices are a way to try to entice more car buyers.

Musk posted early Saturday on X, the social media platform known as Twitter before he acquired and renamed it, that the cost of an entry-level Tesla was as low as $29,490 once a federal tax credit and gas savings were factored in.

Industry analysts have been waiting for Tesla to introduce a small electric vehicle that would cost around $25,000, the Model 2. Media reports this month that Musk planned to scrap the project created more uncertainty over the company’s direction, although Musk called them untrue.

The price cuts ended a long workweek at Tesla, which announced Monday that it was cutting 10% of its staff globally, about 14,000 jobs. The company also said it was recalling nearly 4,000 of its 2024 Cybertrucks after discovering the accelerator pedal can get stuck, potentially causing the vehicle to accelerate unintentionally and increase the risk of a crash.

On Saturday, Musk confirmed he had postponed a planned weekend trip to India to meet with Prime Minister Narendra Modi, citing “very heavy Tesla obligations.” He said on X that he looked forward to rescheduling the visit for later this year.

Tesla is scheduled to announce its first-quarter earnings on Tuesday.

The company reported earlier this month that its worldwide sales fell sharply from January through March as competition increased worldwide, electric vehicle sales growth slowed, and earlier price cuts failed to lure more buyers.

It was Tesla’s first year-over-year quarterly sales decline in nearly four years.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Musk says Tesla’s Full Self-Driving may enter China very soon

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tesla chief Elon Musk on Saturday said the electric-vehicle (EV) maker may make Full Self-Driving (FSD) available to customers in China very soon.

Musk said “It may be possible very soon” while replying to an X post by a user asking when the EV maker would launch FSD in China.

It may be possible very soon

— Elon Musk (@elonmusk) April 20, 2024

The Musk-led EV maker rolled out FSD four years ago but has yet to make it available in China despite customers urging it to do so.

Other Chinese automakers have been seeking to gain an advantage over Tesla by rolling out similar software.

In March, Chinese automaker Xpeng said it is upgrading its advanced driver assistance software and plans to make all of its functions available to drivers across China by 2024.

Xpeng’s XNGP Advanced Driver Assistance System (ADAS) is similar to Tesla’s FSD technology.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exclusive | Amitabh Kant: If BYD can take on Tesla, why can’t Tata and Mahindra?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Expressing his optimism about the future of the electric vehicle (EV) market in India, Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog stated, “I’ll be truly delighted if the new EV policy leads to many Indian companies, such as Tata and Mahindra, challenging Tesla in the market and even surpassing it both domestically and internationally.”

In an exclusive interview with CNBC-TV18, Kant said he believes that by 2047, India will provide almost 30% of the world’s skilled manpower. He emphasised the need for increased competition among the states.

Kant’s statement comes just days before the highly anticipated Indian visit of Tesla CEO Elon Musk as the global EV leader battles a slowdown in its key markets, the US and China. The Indian government is hopeful that Tesla’s investment will help position the country as a hub for EV manufacturing.

Also Read: Tata Motors to manufacture JLR cars in Tamil Nadu

Kant also pointed out the potential of Indian companies to compete with global giants like Tesla. He said, “It’s quite possible. If BYD can take on Tesla, people don’t realise that BYD controls the EV market. These are companies that should all think globally. Once you start thinking global, you will penetrate global markets, but you will do a lot of good to the Indian consumers.”

Kant stated that Tesla would face stiff competition in India and it will do good to customers.

“The Indian consumer is going to benefit in a big way because there will be competition as far as electric vehicles are concerned. And competition will lead to better products and it’ll lead to prices coming down for electric vehicles.”

Kant also highlighted the need to support two-wheelers and three-wheelers, which comprise 70% of the Indian market. Kant had recently stated that combustion vehicles will eventually die out and the future will be dominated by electric vehicles charged with renewable energy.

Also Read: Tata Punch tops March sales, Hyundai Creta close second, Maruti slips to No. 3 for the first time

While pointing out the challenges in the Indian market, such as the high import duty on automobiles, Kant praised the government’s strategic move to reduce the import duty.

“We are going to reduce the import duty so that you can bring vehicles and test out the Indian market. But we’ll do it only if you will, in the long run, do manufacturing in India, the import should actually lead you to manufacturing in India, that’s the objective. So it’s strategically a very good move.”

Kant emphasised the need for a large number of charging stations in India and commended Tesla for opening up its IP for the charging stations, making them interoperable.

“The good thing is that Tesla has opened up its IP for the charging stations and made it interoperable. Several other vehicles can also get charged on the Tesla charging stations.”

Also Read: Indian auto industry sees 12.5% rise in domestic sales, SUVs lead with 25.8% growth: SIAM

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow