Trillion Dollar Tesla Strikes Hertz Deal | 26 Oct 2021

Episode 1257,   Oct 26, 2021, 12:00 AM

Today’s big EV stories:
• Tesla's $1 trillion value a double bonanza for Musk
• Tesla-Hertz blockbuster deal paves way to take EVs mainstream
• Tesla doesn’t want anyone to see its response to the Autopilot investigation
• Panasonic unveils prototype battery to help Tesla lower production costs
• Tesla builds data center, R&D facility in China
• Tesla Model 3 leads EV revolution across EU in September
• Mercedes EQB enters serial production
• Xpeng Motors to launch 480 kW fast charging technology
• Saudi Arabia to Start Electric-Vehicle Push in Capital Riyadh
• UK battery ‘gigafactory’ plans huge expansion
• UK Transport Committee Makes EV Recommendations
• Battery energy storage system with 50MW capacity goes live

Show #1257

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Good morning, good afternoon and good evening wherever you are in the world, welcome to EV News Daily for Tuesday 26th October. It’s Martyn Lee here and I go through every EV story so you don't have to.

Thank you to MYEV.com for helping make this show, they’ve built the first marketplace specifically for Electric Vehicles. It’s a totally free marketplace that simplifies the buying and selling process, and help you learn about EVs along the way too.

TESLA'S $1 TRILLION VALUE A DOUBLE BONANZA FOR MUSK

- The surge in Tesla Inc's (TSLA.O) stock market value beyond $1 trillion on Monday is a double bonanza for Chief Executive Elon Musk, the electric car maker's largest shareholder. The stock rallied 12.7% on news that Tesla landed its biggest-ever order from rental car company Hertz.

- With Tesla's stock at a record high close of $1,024.86, Musk's 23% stake in the newly minted trillion-dollar company is now worth about $230 billion

- Musk receives no salary at Tesla: his pay package provides 12 options tranches that vest when Tesla's market capitalization and financial growth hit a series of rising milestones. The options let Musk buy Tesla shares at $70 each, a discount of more than 90% from their current price.


TESLA-HERTZ BLOCKBUSTER DEAL PAVES WAY TO TAKE EVS MAINSTREAM

- Hertz Global Holdings Inc.’s $4.2 billion deal with Tesla Inc. is about more than just an order for 100,000 cars. It’s about vaulting electric vehicles into the mainstream.

- Not only does Tesla get a huge order at a premium price, it gets a way for the electric-curious masses to test-drive its Model 3. Hertz, meanwhile, gets to tap into the growing interest in EVs while aligning itself with the industry’s leader and sexiest brand. Tesla also will benefit from exposure in a splashy Hertz ad campaign starring seven-time Super Bowl Champion Tom Brady.

- “This is an opportunity not only to fix the business, but also to employ a strategy that allows us to play a central role in development of the modern mobility industry,” Mark Fields, Hertz’s new interim chief executive officer and a former CEO of Ford Motor Co., said in an interview. “One of our objectives is to lead in the adoption of electric vehicles.”

- Elon Musk said in Twitter post that he was a bit surprised by the “strange” jump in value, considering that his automaker’s already selling as many cars as it can make as it speeds up production.

- Until now, Tesla has relied on word-of-mouth and eschewed traditional advertising entirely. But a side benefit of this deal is the Hertz ad campaign where Model 3 rentals will be the focus of Brady’s message. Two TV spots debuting today -- entitled “Plugged In” and “Speed” -- show the Tampa Bay Buccaneers quarterback renting, recharging and driving a Tesla from an airport. The tag-line for the commercials is Brady’s signature exhortation, “Let’s Go!”

- Tesla also benefits simply from the size of the order, which is about $4.2 billion, according to people familiar with the terms of the deal. That value suggests Hertz is paying close to full price, breaking with a long-time tradition of automakers selling their wares to rental companies at a deep discount.

- Hertz also said it’s installing “thousands” of charging stations that will augment Tesla’s supercharging ports in the U.S. and Europe.

- For more context. that’s more than the 93,000 that Tesla registered across Western Europe in 2020.


TESLA DOESN’T WANT ANYONE TO SEE ITS RESPONSE TO THE AUTOPILOT INVESTIGATION

- If Tesla’s request is granted, it would effectively bar the public from seeing the company’s response to a host of information that NHTSA has requested regarding its probe into Autopilot and possible defects.

- Tesla wants to keep secret its response to the federal investigation into its Autopilot driver assist system. In a memo submitted to the National Highway Traffic Safety Administration (NHTSA) last week, regulators noted that Tesla has requested “confidential business information (CBI) treatment for the entirety of the information request submission.”


PANASONIC UNVEILS PROTOTYPE BATTERY TO HELP TESLA LOWER PRODUCTION COSTS

- Panasonic on Monday unveiled a new large prototype battery designed to help Tesla (NASDAQ:TSLA) Inc lower electric vehicle (EV) production costs, in a move the Japanese company's battery chief said would deepen business ties with its key U.S. customer.

- as the sole manufacturer of the 4680 format (46 millimetres wide and 80 millimetres tall) battery, Panasonic should remain a critical link in the EV maker's supply chain, at least for its pricier models.


TESLA BUILDS DATA CENTER, R&D FACILITY IN CHINA

- Tesla said on Monday that it has built a research facility and a data center in Shanghai, both of which will be put into use soon, as the United States electric carmaker ramps up its localization strategy in the country.

- The R&D facility, Tesla's first outside the US, employs engineers for software, electronics, materials and charging, it said in a statement. Tesla said the facility will develop over time similar in size to the one in the United States.

- The newly built data center in Shanghai will store Tesla's operation data locally. At an industry forum in September, Tesla CEO Elon Musk said data security will become even more important when vehicles are becoming smart and autonomous.

- China issued trial guidelines on automobile data protection in August in a move to protect drivers' privacy and safeguard national security as vehicles are becoming increasingly digitalized in the world's largest auto market.

- Tesla said data about its vehicles sold in China as well as their local production, sales, after-service and charging information will be stored locally in the country.


TESLA MODEL 3 LEADS EV REVOLUTION ACROSS EU IN SEPTEMBER

- Tesla topped the European new car sales charts in September, taking a 2.6% market share, according to the latest figures from JATO Dynamics. This is both the first time an EV has led the EU market and the first time that a vehicle manufactured outside of Europe has occupied the top spot.

- Since its’ entry to the European market, the Model Y has also performed well, securing second position in the BEV ranking. Due to the success of these two models, Tesla leads the BEV market with a share of 24%, ahead of the Volkswagen Group with 22%, Stellantis with 13%, and Hyundai-Kia with almost 11%.


MERCEDES EQB ENTERS SERIAL PRODUCTION

- Series production of the all-electric Mercedes EQB has started at the Mercedes-Benz plant in Kecskemét, Hungary. The EQB, which was presented in April, is manufactured there for the world markets – only the China-specific version is built by the joint venture BBAC in Beijing.

- the angular EQB is only eight centimetres shorter than the EQC, but a full 22 centimetres longer than the EQA. Technically, however, the EQB is more closely related to the EQA; both are based on Mercedes’ compact car platform,

- Hungarian Foreign and Trade Minister Péter Szijjártó was also present at the event to mark the start of series production. He indicated that the Hungarian state had provided 15 billion forints (about 42 million euros) in support of the 50 billion forint (equivalent to about 136 million euros) investment in the plant.


XPENG MOTORS TO LAUNCH 480 KW FAST CHARGING TECHNOLOGY

SAUDI ARABIA TO START ELECTRIC-VEHICLE PUSH IN CAPITAL RIYADH


UK BATTERY ‘GIGAFACTORY’ PLANS HUGE EXPANSION


UK TRANSPORT COMMITTEE MAKES EV RECOMMENDATIONS


BATTERY ENERGY STORAGE SYSTEM WITH 50MW CAPACITY GOES LIVE


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