09 May 2020 | Elon Declares Tesla Is Leaving California

Episode 773,   May 09, 2020, 12:00 AM

Elon Declares Tesla To Leave California | Tesla Sues County Of Alameda | GM EVs Full Speed Ahead Despite Cheap Gas And Relaxed Emissions | ARCFOX Alpha-T sets energy density record for EV batteries | Bob Lutz: Tesla Is Doomed And Here Is Why

Show #773

 

Good morning, good afternoon and good evening wherever you are in the world, welcome to EV News Daily for Saturday 9th May 2020. It’s Martyn Lee here and I go through every EV story so you don't have to.

 

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ELON DECLARES TESLA TO LEAVE CALIFORNIA

Tesla Soap Opera 1: California county tells Tesla it 'must not reopen' its car factory

"Local county health officials say Tesla Inc "must not reopen" its vehicle factory in the San Francisco Bay area, as local lockdown measures to curb the spread of the coronavirus remain in effect." reports Autoblog: "The comments on Friday came after Tesla's chief executive, Elon Musk, told employees Thursday that limited production would restart Friday afternoon at the factory in Fremont, Tesla's only U.S. vehicle factory. Earlier on Friday, Erica Pan, a health officer for the county, said the department has had many discussions with the company and recommended that Tesla wait at least another week to monitor infection rates and discuss safe ways to resume production. Pan, speaking during a virtual townhall with the mayor of the city of Alameda, called Tesla a "very hot topic.""

 

Tesla Soap Opera 2: Then Tesla published a blog post laying out their side of the argument: “Tesla is the last major carmaker remaining in California, and the largest manufacturing employer in the State with more than 10,000 employees at our Fremont factory and 20,000 statewide. We understand the impacts COVID-19 has caused and have a responsibility to look out for the livelihoods and safety of our personnel, many of whom rely on us and have been out of work for weeks due to the impacts of shelter-in-place orders.”

 

Tesla Soap Opera 3:

@elonmusk

Tesla is filing a lawsuit against Alameda County immediately. The unelected & ignorant “Interim Health Officer” of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!

 

@elonmusk

Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.

 

Tesla Soap Opera 4:

CNBC then reported: "A public information officer for Alameda County Public Health Department offered more details in a statement: “We have informed Tesla of all of the conditions that must exist for phasing in the safe reopening of various sectors of the economy and the community. All businesses within the County must comply with the May 4th Health Officer Order and if a business does not meet the limited criteria stated in that Order to reopen, then they are out of compliance. “Tesla has been informed that they do not meet those criteria and must not reopen. We welcome Tesla’s proactive work on a reopening plan so that once they fit the criteria to reopen, they can do so in a way that protects their employees and the community at large.”"

 

 

Tesla Soap Opera 5:

Mayor of Fremont, Lily Mei, published a statement in support of Musk’s intentions.

 

“As the local shelter-in-place order continues without provisions for major manufacturing activity, such as Tesla, to resume, I am growing concerned about the potential implications for our regional economy.  We know many essential businesses have proven they can successfully operate using strict safety and social distancing practices.  I strongly believe these same practices could be possible for other manufacturing businesses, especially those that are so critical to our employment base. The City encourages the County to engage with our local businesses to come up with acceptable guidelines for re-opening our local economy.  As we have done for over a decade, the City is prepared to support Tesla as soon as they are able to resume automobile manufacturing operations and are committed to a thoughtful, balanced approach to this effort that remains safe for our Fremont community.”

 

Tesla Soap Opera 6:

The lawsuit: From TechCrunch: "Tesla filed a lawsuit Saturday against Alameda County in an effort to invalidate orders that have prevented the automaker from reopening its factory in Fremont, California. The lawsuit, which seeks injunctive and declaratory relief against Alameda County, was first reported by CNBC. The lawsuit was filed in U.S. District Court for California's Northern District.  The lawsuit argues that by preventing Tesla from opening, the Alameda County is going against its own guidance.  "Alameda County has expressly recognized and publicized that “businesses may . . . operate to manufacture” batteries and electric vehicles," the complaint reads. "Inexplicably, however, the Third Order as well as County officials have simultaneously insisted that Tesla must remain shuttered, thereby further compounding the ambiguity, confusion and irrationality surrounding Alameda County’s position as to whether Tesla may resume manufacturing activities at its Fremont Factory and elsewhere in the County."

 

Tesla Soap Opera 7:

And finally: A California State assemblywoman Lorena Gonzalez tweeted "F--- Elon Musk" on Saturday night, hours after the Tesla CEO announced was considering moving his company out of the state amid ongoing lockdown restrictions.

 

GM EVS FULL SPEED AHEAD DESPITE CHEAP GAS AND RELAXED EMISSIONS

"General Motors outperformed all expectations in the first quarter of 2020, posting $300 million in income on $32.7 billion in revenue. The results were discussed during the recent GM Q1 2020 earnings call, during which GM CEO Mary Barra discussed a number of things – including the company’s commitment to future GM EVs." reports GM Authority: "During the call, Credit Suisse analyst Dan Levy asked Barra about upcoming GM EVs, noting that the current environment of low gas prices and relaxed emissions regulations could make the case for pulling back on electric vehicle investment. However, Barra’s response indicated that it’s full speed ahead when it comes to electric vehicles. “Our commitment is unwavering,” Barra responded. “We think it’s the right path forward and we think with the Ultium battery platform that we have, the partnership we have with Honda, the strength we have from China where EVs and new energy vehicles are a key part of being successful in that market, positions us extremely well to have a leadership position in EVs with a full range of EV vehicles.”"

 

Cadillac Lyriq crossover and GMC Hummer pickup were still on track.

 

https://gmauthority.com/blog/2020/05/gm-evs-full-speed-ahead-despite-cheap-gas-and-relaxed-emissions/

 

ARCFOX ALPHA-T SETS ENERGY DENSITY RECORD FOR EV BATTERIES

"With a very impressive figure of 194,12 Wh/kg, the ARCFOX α-T now holds the record of having the most energy dense battery in a mass-produced electric car. The NCM 811 battery cells made by SK Innovation are very impressive and we’ll soon see them powering other electric cars." says PushEVs: "It’s curious that electric cars such as ARCFOX α-T, BYD Han EV and Xpeng P7 made by Chinese automakers seem to be the best alternatives to Tesla so far. Years ago we might have thought that German premium automakers would be the first to produce good alternatives. Anyway, Chinese electric cars have come a long way since the old BYD e6 launched in 2009, they are no longer super slow and inefficient. From now on, I will pay more attention to Chinese electric cars, some of which will end up being sold worldwide."

 

https://pushevs.com/2020/05/09/arcfox-alpha-t-sets-energy-density-record-for-ev-batteries/

 

BOB LUTZ: TESLA IS DOOMED AND HERE IS WHY

"Bob Lutz, a former top leader of Ford, Chrysler and GM, is very skeptical and sometimes also derisive about Tesla. He's been this way for years." says InsideEVs, who have listed out the reasons Bobby thinks Tesla is doomed:

 

they will fail, because of the "continued lack of profitability", "stocks gonna tank" and it will be difficult to raise more cash, especially if Elon Musk

will undermine investor confidence

"All they have are some good-looking electric cars that sell below cost"

Tesla doesn't have unique technology, they are using the same lithium-ion technology as everybody else

Every other manufacturer will introduce a 300+ mile electric car on the market (there will be no advantage)

zero-emission credits as a source of revenues (in the U.S.) and in Europe (deal with FCA) will dry too

Other manufacturers are forced to produce a certain amount of EVs, so they will do it, even at a loss, and then recoup the cost on conventional models (this is a major factor behind the rising prices on crossovers/SUVs and full-size pickups). For Tesla, it's a lot of EV competition.

Another problem is too many employees at the plants (in particular at the Tesla Factory - currently closed)

The vertical integration is wrong, as you not only spend precious capital instead of ordering stuff from suppliers, but also will be required to keep investing to stay competitive with external suppliers of the rest of the industry

 

 

QUESTION OF THE WEEK

 

…we take a break for a week and QotW is back on Sunday 10th May

 

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