Australian Tesla Prices Drop

Model 3 Tesla
Image courtesy of Tesla.com

Australian Tesla Prices Drop, however there is still a long way to go. 

This week has been a busy week for Tesla. It has also been a fun time for those in the EV community who follow Tesla closely. 

A couple of weeks ago I posted a blog talking about “Out of Balance”, in this blog I talked about how I had caught up with a  friend who had limited knowledge of the benefits and differences between Internal Combustion Engine(ICE) and Electric Vehicles(EV).  We spoke about the vehicles and I gave a balanced view of the EV’s including Tesla’s.

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Planted a seed

What I hadn’t realized is that I had planted a seed that had grown over the last couple of weeks. This week I received a surprise that has made me smile. I received a call from my friend Andrew the Optometrist, he said to me “I did something a little crazy this week. “I bought a Model 3.”

To say I was super excited for him and his family is an understatement. I am passionate about Tesla and the EV community and another person to join the fold is just great news. To have someone who you know and have helped to see the electric vehicle in a different light just makes me warm to the soul. 

He was very excited about the purchase. He and his family had, since we spoke, looked around at both ICE Vehicles and Electric Vehicles. The decided to take the Model 3 for a Test drive. He said that was the clincher. His wife and kids were sold, and they all fell in love with the Model 3. 

Of course, as anybody in the EV community knows, the Test drive cannot be explained it has to be experienced. 

Model 3 standard range old
Image courtesy of Tesla.com

Andrew the optometrist referral link – https://ts.la/andrew53106

They ordered the Black Standard Range Model 3 not long after the Test drive. He explained they liked the black because they have had black cars for years and liked the look. His kids were super excited and they love the idea of putting their bags in the frunk. 

It was an incredible feeling to know before this he had not considered an electric vehicle as being an option and after our conversation, he seriously considered it. 

Of course, that is not where the week ended. 

Rumours

Rumours had started to float around over the last couple of weeks that a refresh of the Model 3 was upon us. Images of the cars missing chrome trim and a new console had started to surface thanks to Whole Mars Blog, however there had been no official word from Tesla. 

Well on Friday afternoon Australian time we understood why they had not said anything. Unannounced, the Tesla website changed. 

What a dramatic change it was, not only did it introduce the new console, but it also changed prices in some impressive ways. 

Surprise

Elon announced earlier in the week that the cost of the Model S would be reduced to USD $69420. These numbers seem random but trust me if you have been a tesla fanboy for a while, they make perfect sense. 

Any way it was in response to Lucid air releasing their price for the latest vehicle. 

This again was a surprise and many people jumped onto this price as it was a good many thousands of dollars savings. 

But Elon and tesla were not done there. On Friday afternoon, Australian time, we understood why they had not said anything about the Model 3 changes, Australian Tesla prices drop. Unannounced, the Tesla website changed. 

What a dramatic change it was, not only did it introduce the new console that had been rumored it also changed prices in some impressive ways. 

On entering the Website, you are presented with the new look Tesla Model 3 Performance with the Uber Turbine Wheels. 

Model 3 Tesla .com
Image courtesy of Tesla.com

Once you then go to the Order page for the Model 3 there are differences across the whole product line. 

Standard Range 

The Standard Range Aero wheels have been updated which gives the Model 3 a new and sportier look. Included with this refresh is the power trunk, increased range and of course the decrease in price of almost $8000 dollars depending on which state you order from in Australia. With the change to the price the standard range no longer incurs the Luxury Car Tax (LCT) that Australia imposes on imported luxury Vehicles.

Model 3 Tesla .com standard range
Courtesy of Tesla.com

Long Range 

The long-range again has a new set of Wheels with an update to the 19” sport wheels. They are very similar to the original Wheels however they have a subtle change that whether functional or not may be polarizing. The changes again included the Power trunk, Increased range, and the price difference of $6000, again depending on the state in Australia.  LCT will be incurred. 

Insert Image – highlighting changes 

Model 3 long range tesla.com
Image courtesy of Tesla.com

Performance Model 3

The performance Model 3 introduced the Uber turbine wheels when the model 3 was first introduced to the world it is wonderful to see them back again and introduced to customers. As with the standard range and Long-range Model 3 the performance also includes the power trunk, increased range and a spectacular drop in price of almost $20000 depending again which state you are buying from in Australia. 

Insert Image with changes. 

Model 3 Performance tesla .com
Image courtesy of Tesla.com

Once again Tesla has not disappointed. The new changes to the Model 3 line up were not just restricted to Australia. The range increase is particularly interesting and possibly indicates that the introduction of a heat pump may have occurred for the Model 3 as it did for the Model Y. 

It has been and continues to be a wonderful and exciting experience following Tesla as they continue to lead the EV market with innovation, passion, and a mission that inspires many. 

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Andrew the Optometrist

When I heard the news of the price drop I instantly messaged Andrew the optometrist. His response made me smile” Woooooooooo Hooooooooo”

It turns out he had ordered at the right time. He and his family saved over $8000 dollars in one night thanks to Tesla. The Model 3 they are to get will be better than it was when they ordered.

Australian Tesla Prices Drop and I am glad to help bring electric vehicle knowledge into more people’s lives. It is truly special when that information is used to make informed decisions. I hope Andrew and his family find great joy in the purchase.

Dave

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Phantom braking can it be solved?

tesla model x brake light
Photo by Szymon Kita on Unsplash

Phantom Braking can it be solved? It seems that in recent years the introduction of the intelligent vehicle has been seen as a victory for the motor vehicle industry.

Sensors

The introduction provides increased safety and awareness for and around the vehicle. Using sensors, cameras and in some cases Radar or LIDAR to map the world around it the car is able to perform with greater accuracy and capability. 

The introduction of sensors to vehicles has been reserved for the higher end of the market, up till now. Due to the prices of these components coming down and technology advancing at an exponential rate the sensors are starting to be more present in less expensive models.  

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Tesla autopilot

self driving

Tesla introduced its first iteration of “Autopilot” several years ago. Since its inception and introduction to the family of Tesla vehicles, Autopilot has been applauded for its ability to manage highway driving with little intervention. Many have reported their fondness of the capability and how it makes long road trips more enjoyable. 

As a result of the new capabilities, Tesla has been proud to show that its vehicles with the use of Autopilot have increased the distance collectively between accidents.  This fact highlights the increased safety aspects which have been introduced. 

However, since the introduction of the self-driving capabilities the issue of Phantom Braking has in parallel been increasing. 

Phantom Braking

bridge underpass
Photo by Clay Banks on Unsplash

Phantom braking occurs when a vehicle being managed by Artificial Intelligence, or autopilot in Tesla’s case, suddenly and abruptly decelerates. This sudden loss in acceleration is unexplained and inconsistent in most cases. 

As you probably have determined this puts the driver and passengers in danger including the vehicles around it. The vehicles travelling behind suddenly have to contend with an unexpected slowing of the vehicle in front. These usually occur when the vehicle is travelling at speed. This increases the chances of accidents and injury. 

Online there are numerous on social media that state the cause of accidents seems to be attributed to the phantom braking phenomenon.  

In the case of Tesla, and if Phantom braking can it be solved, it would seem this is an active problem they are attempting to solve. This week there has been a discussion on twitter regarding this very thing. Elon tweeted regarding the introduction of the new build Full Self Driving (FSD). He was responding to a tweet discussing the WAYMO approach. He mentioned that it would be beta released in a number of weeks. 

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As part of responses, I asked Elon Musk “Is the issue of phantom braking fixed in this release? Has been a number of people talking about this recently.” https://twitter.com/EVHQ2/status/1314287584105779200

Elon was kind enough to respond to me on twitter at EV-HQ.com by stating “It should be” he then followed up with some clarification

It is encouraging to see that Tesla is actively working to resolve issues like Phantom braking. What’s important is they are not just waiting for big releases like FSD. It makes sense considering not every driver has FSD as it is an opt-in function.

 It would also seem that Elon understands the issues of his company and is actively working to resolve them. His engagement with twitter followers shows he is kind enough to respond to people asking about the latest information.  

This twitter response gained momentum over the next couple of days which just highlights the importance this issue has for people.

Software updates

Phantom braking can it be solved? It would seem that the release of the upcoming software updates that drop regularly has bug fixes to address the phantom braking. The latest release may have some of those fixes but there are still reports that it is occurring. 

Let’s hope that phantom braking will become a thing of the past. Let’s hope that the use of “First Principles” can assist to find a solution to the immediate and long-term problem. 

Safety has always been at the heart of the Tesla Vehicles. Elon Musk has been very clear on this point. It is up to the manufacturers to make sure that the occupants of their vehicles remain safe and sound for their journey. 

It is refreshing to see that Tesla is working to find solutions. Tesla is actively trying to find solutions to issues that have been created by the introduction of information technology devices. 

The best advice you can hear if you love your tesla but feel unsure about the use of the autopilot system is to drive the car yourself. enjoy the experience without the use of autopilot or FSD. The cars are incredible to experience and fun to drive. 

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Tesla week in review

Image by Kathysg from Pixabay 

Tesla week in review post the highs of battery day, Tesla delivered a number of interesting additions to the Tesla almanac.  History may judge this to be another step towards Tesla’s ultimate goal of transition to sustainable energy and transport. 

A word on Tesla and the future of the Company. 

Last week saw one of the most significant steps forward for Tesla and the development of their battery technology. The new and innovative thinking demonstrated by Tesla and their team regarding the use of first principles to rethink the functions of the battery, truly set up Tesla to move into a confident position.  

Sandy Munro from Munro & Associates Inc., by his own admission seen thousands of vehicles over his life time and because of this has a unique perspective on the construction, manufacturing and innovation of vehicles. 

Munro’s perspective on the battery day and his support for Tesla, is one out of respect for  innovative products and support for the companies Goals. His perspective on the Tesla innovations highlighted the fact that Tesla is heading in a direction well ahead of any competition. He is able to provide insights to the technical aspects of the innovations. 

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The market for Tesla shares after the battery day presentation went down. Analyst thought that Tesla would announce a cheaper vehicle that would be available in the short term. Tesla did in fact announce a new cheaper vehicle which would not be available for several years. 

What it does suggest is that analysts don’t have a full understanding of the technology and how to classify tesla as a company. They believe that because Tesla have not produced an affordable vehicle with the battery technology available to use now that the value of the company does not meet their predictions. 

Tesla has always highlighted the fact that they are not just a car company or an energy company but a tech company. This difference has been a challenge for analysts as they still continue to place Tesla in the car company field. 

China Model 3

blue yellow and green lighted pagoda tower
Photo by Ruiyang Zhang on Pexels.com

This Tesla week in review also saw the introduction to the Made-In-China (MIC) Model 3 LFP or lithium ion battery technology provided by CATL. 

“Tesla’s new powertrains are expected to include a cobalt-free lithium iron phosphate (LFP) battery made by Ningde, Fujian-based Contemporary Amperex Technology Co. Ltd.,” Bloomberg News. 1 October 2020, 11:46 am AEST Updated on 1 October 2020, 5:24 pm AEST

tesla tail light model 3
Photo by Damo T. on Unsplash

This innovation has been met with great excitement by the Chinese. There has been an increase in orders. In conjunction with the new battery technology there has been a price reduction and a significant range increase. The price reduction may have been expected but the range increase was something no one had expected.

The Model 3 range went from 455km to 468kms. With any electric car, range is important and an increase is always welcome. This is helping to drive sales and improve customer experience. 

Here in Australia we still have to contend with significantly high prices. 

These include:

  • Taxes on imports
  • Luxury car tax
  • Exchange rate
  • Lack of manufacturing competition

These have significant impacts on price and ability for the average Australian to enter the electric car market. 

Opportunity

With the introduction of the new Model 3 to the Chinese market, there is an opportunity for Australians and those in the southern hemisphere, to have greater access to a more affordable Tesla. 

Recently there was a rumor that deliveries from Giga Shanghai to countries like Australia would provide a more affordable Model 3. As shown this week with the introduction of the new Model 3 to the Chinese market this rumour may have some foundation. 

A recent article from Tesmanian outlined the increase in shifts within the Giga Shanghai factory. This might indicate a lift in production numbers and possibly an opportunity to export model 3’s to other countries like Australia. 

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The Model 3 range of 468kms is comparable to current petrol cars of the same size and dimensions that are sold in Australia. With the added benefit of no petrol and reduced rates for electricity, this would make the vehicle quite competitive and compelling. 

Currently in Australia the cost of the Model 3 averages approx. $74000 dollars . As this starting price it does not incur Luxury car tax LCT. However, with the introduction of the new MIC model 3 the price when convereted to Australian dollars is $61000. This would be quite a significant price reduction which could make quite an impact on the electric vehicle market.  https://thedriven.io/2020/10/01/model-3-with-cheaper-battery-on-sale-soon-price-drop-leak-4000/

India 

taj mahal india digital wallpaper
Photo by Rahul on Pexels.com

Tesla week in Review, Elon Musk is known for his use of the social media platform Twitter.  This week he responded to TCIN when asked if Tesla was going to come to India. 

Elon responded with, “sometime next year.” This is significant as it would open another country to the benefits of electric vehicles. https://twitter.com/elonmusk/status/1311931936261263360

This week has been a significant week for Tesla. They innovate, create, and produce some of the greatest technology we have seen for years. 

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Battery Day – Tesla

Tabless battery by Tesla
Image courtesy of Battery Day – Tesla

Battery Day – Tesla, if anyone had any doubt that Tesla is going to be the leader heading into the future of the electric car and power management this week solidified their position.

It is truly incredible the innovation that Tesla continues to deliver. The team at Tesla reviews a part of the market that has been devoid of innovation, they turn it on its head with first principal thinking. 

Battery day – Tesla was presented online and a number of lucky investors and followers of Tesla were in attendance and the unique way they socially distanced was very cool.

A picture containing car, lot, filled, person

Description automatically generated
Image courtesy of Battery Day – Tesla

First Principles

Elon has spoken a number of times regarding the first principle thinking to reframe a question regarding a current problem.

“The first principle” was conceived by Aristotle to rethink an already existing process and find another way to achieve a better outcome.

First principle thinking guided Tesla to reimagine a better battery for the future of the company.

They broke down the detail into 5 complete sections

  • Cell Design 
  • Cell factory 
  • Anode Materials
  • Cathode Materials
  • Cell Vehicle Integration
Image from battery day
Image courtesy of Battery Day – Tesla

Cell Design

Image from battery day
Image courtesy of Battery Day – Tesla

Tesla is turning the cell design on its head. They thought long and hard about the fundamentals of what constitutes the cell. The team at Tesla looked at the main features of current cells looking for opportunities to increase energy storage and output.

The introduction of the tabless 4680 cell made of silicon whilst limiting the use of cobalt has led them to achieve an innovative approach. With these changes it can increase the cells range by 16%. This range extension is truly incredible and critical to the uptake of EV’s as we move into the next couple of years.

Image from battery day
Image courtesy of Battery Day – Tesla

Cell Factory

Image from battery day
Image courtesy of Battery Day – Tesla

One of the most surprising elements regarding the cell announcement pertains to the fact that a pilot factory already exists. The fact that cells are already being produced would suggest that this is not just a theory but a revolution and real.

Taking inspiration from printing and bottling factories of yesteryear where the production line does not slow down during the whole process, Tesla has implemented a similar process that allows the cells production to increase accordingly.

Within the production of the cells there are 4 main steps

  • Electrode
  • Winding
  • Assembly
  • Formation
Image from battery day
Image courtesy of Battery Day – Tesla

Major efficiencies can be found within the process of manufacturing battery cells as opposed to the traditional processes.

The use of a “High-Speed Continuous” motion allows for a smaller footprint within factories producing more cells per hour allowing an increase in efficiencies with manufacturing and could produce a 7x improvement with possiblility 10x improvement over time.

Tesla last year purchased Maxwell which had a process for converting dry powder materials and applying that as a film onto the separator in the jelly roll of the battery. Elon explained that since this purchase, they have iterated on the process 4 times and believe that they will achieve greater efficiency by about the sixth iteration. This advancement removes the need for a wet process and thus reduces the size of the factory required exponentially.

These improvements are revolutionary to the production of cells. Once again first principles has delivered a new perspective.

Most companies rely on old solutions where as Tesla as confirmed by Elon will continue to innovate and push the boundaries of what is possible.

Currently Tesla refers to the factories as Gigafactories. As they move forward and transition to the new cell form factor the factories will be referred to Terafactories.

Image from battery day
Image courtesy of Battery Day – Tesla

Anode Materials 

Image from battery day
Image courtesy of Battery Day – Tesla

Silicon is considered a fundamental element used in most batteries. Once again Tesla has had to go back to fundamentals and find a way to improve the process of creating better density and usage of the batteries. 

When a battery is charged and discharged the movement of lithium across the membrane causes it to crack and become gooey. Overtime this causes the cell to lose the ability to manage the state of charge thus rendering the cell less effective.

Many have tried to rectify this by addressing the symptoms not the cause. The introduction of different binders and support materials have been used to lessen the impact of the heat generated during charging and discharging. This has been met with varying results.

Tesla is attempting to look at the fundamentals of what makes up the anode of the battery and see if they can eliminate cobalt whilst using Silicon in a different way. Raw silicon has been proposed as a possible solution to help with the expansion issue when charged and discharged.

  • Raw material silicon,
  • stabilize surface through elastic, non-conducting polymer coasting,
  • robust network – highly elastic binder and electrode design.

By implementing the above changes to the cell It has been shown to provide a 20% increase in range for vehicles.

A 20% increase in cell range is groundbreaking when dealing with electric vehicles. Distance is king in many cases and this could help to achieve this greater range for the same price. Or alternatively it could mean less cells with same range reducing costs.

Image from battery day
Image Courtesy of Battery Day – Tesla

Cathode materials

Image from battery day
Image courtesy of Battery Day – Tesla

A cathode provides structure to the management of lithium ions within the battery cell. Tesla has been experimenting with different cathode types that would allow cells to be more environmentally friendly and increase recyclability.

In the course of their investigations they believe a diverse range of materials will be utilised for different purposes. Tesla will implement different material across their product line to address cost, density and output.

Iron – Low level use 

Nickel Manganese – medium level use 

High Nickel – used for Long range – Cyber truck and semi

Image from battery day
Image courtesy of Battery Day – Tesla

The use of nickel as a main component gives the best dollar per kwh and wh/kg. This combined with removing the cobalt has a number of positive effects

  • Reduces complexity of the materials 
  • Continues to address the human rights issues with mining 
  • Has a good structure to hold the lithium 
  • Reduction in costs of $/kwh

Again the returned to first principles regarding the manufacturing of the cathode. This lead to an improvement in battery production and thus a cumulative effect upon the percentile shift of costs in the downward trend.

Further to this, lithium is a highly abundant material and is available within many and varied locations. It seems that the collection and processing of the material is able to be achieved within in the USA.

Mining lithium is important way forward for cell production and Tesla has found a way to extract it from clay with the use of Nacl (Salt). The outcome of this leads to highly recyclable cells and materials, that can be easily reconstructed into new cells. This leads to some impressive cost savings.

Image from battery day
Image courtesy of Battery Day – Tesla

Cell vehicle production 

Image from battery day
Image courtesy of Battery Day – Tesla

Elon announced a change to the fundamental design of the Tesla vehicles.

He was inspired by the airline industries innovation when they created a fuel tank as part of the wing which improved capacity and reduced weight. By changing the way the vehicles are constructed to achieve a similar concept Tesla’s vehicles have also had similar outcomes.

Image from battery day
Image courtesy of Battery Day – Tesla

This one design change is said to lead to;

  • 10 % in weight reduction
  • 14% range increase opportunity 
  • 370 fewer parts

Cumulative effect 

Tesla has shown that it can innovate in areas that most car companies take for granted and follow a standard view of the processes. Tesla chooses to look at the fundamentals and innovate using the first principles thinking regarding anything from the car to the power train to the battery cells and beyond.

The above innovations with cell production, cell development, anode, cathode and vehicle design allow for changes and efficiencies in their own right, but the cumulative effect it has upon the overall price and production helps to drive prices down , safety up and more people in cars everywhere.

56 % reduction in $/KWH. 

Image from battery day
Image courtesy of Battery Day – Tesla

This is a monumental step in regard to Tesla’s value as a company and value of the individual vehicles. The impact it will have on the tesla solar and battery storage costs moving into the future will be profound.

 Elon highlighted that the realization of this technology will not occur for 1-3 years but the ability to own a tesla in the coming years with a price that is reasonable is extremely exciting. 

Benefits

  • 54% Range increase
  • 56% S/KWH reduction
  • 69% Investment per GWH reduction. 
Image from battery day
Image courtesy of Battery Day – Tesla

What does this mean for Australia?

I have watched a number of Tesla presentations over the years and this presentation was the most exciting for a number of reasons.

In Australia the prices of tesla vehicle is quite significant for the average person. With a starting price of $74000 a lot of people find this price out of reach.

If Tesla was able to maximise on the 56% reduction in dollars per KWH then the possibility exists that in the future Tesla’s could be priced around $40000 – $ 50000. If this was to transpire then more Australians would be in a position to consider their next car to be electric.

If the new 4680 battery cell is adapted to the home power storage solutions it could assist Australians to increase their ability to maximise their solar panel efficiencies whilst also reducing the cost of electric and charging electric vehicle.

If this is the future in 1-3 years, then I am on board and I would encourage all Australians to investigate electric products.

One more thing….

Image from battery day
Image courtesy of Battery Day – Tesla

It would not be a Tesla event if there wasn’t something unexpected. Tesla announced a possibility of a new, smaller sedan with a price range of around $25000 USD.

The Plaid Model S

The Plaid Model S, which has been seen on the Nürburgring, with a tri motor specifications and a 0-60 mph time of 2.1 seconds is now available to be purchased online. this impressive vehicle has a starting price in Australia of $189000.

Last word

Battery Day – Tesla has shown what it is capable of and sets a high standard for all to follow. Tesla’s mission will improve the environment and accelerate the transition to a sustainable future. The information provided by Tesla has great potential to realise the possibilities.

Tesla’s philosophy of using first principles to reimagine what battery technologies can be will have positive impacts on the environment for years to come. It’s ability to continually innovate and move their mission forward is inspiring.

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Out of Balance!

aerial view of road in the middle of trees
Photo by Deva Darshan on Pexels.com

Out of Balance! Two weeks ago I had one of those experiences that I thought would never come. My belief is that everyone has a good understanding of electric vehicle. I believe that everyone has a good foundational knowledge of what an electric car is and can do. Turns out I live in a bubble.

I realized two weeks ago that this type of thinking is a misconception and that we need to do more. 

Let me explain. 

My friend

I have a friend who is currently doing it hard as a business owner. He had to shut up shop while quarantine was occurring. This had an impact, now that he is open again, he is trying to make up for lost time. 

I have not had as much trouble with this area as I have worked across all quarantine. So, when it came to having an optometrist look at my sight, my friend jumped straight to mind. 

He and his wife both have worked tirelessly to build this business and their reputation to make their Optometrist business successful.

We visited the store and had our eyes checked and purchased a number of glasses. We had not seen each other for a while so afterwards we went back to their place to catch up.

Electric benefits

During the conversation we ventured onto the subject of cars. They were thinking about buying a new car to replace their 12-year-old car. It was at this point I mentioned electric vehicles. 

Much to my surprise they really had little knowledge of what electric cars could do and what their features were.

So, I tapped into my knowledge and started to answer questions and drive discussion. It was not only gratifying to hear myself speak with confidence about the cars, but also see my friend grow increasingly interested in the benefits of these cars.  

We discussed the ins and outs of Tesla’s talking about the savings across the spectrum from petrol to solar to battery storage to upfront cost versus ongoing costs. 

When I mentioned that there is limited maintenance that needed to occur for the cars, they were both surprised. We then spent that next 20 minutes convincing him that electric cars have a lot fewer moving parts and they don’t require the same maintenance that an ICE car requires. 

I tried to put forward a balanced view, both the good and the bad. Advising them that if they truly wanted to understand how an electric car feels to drive then to test drive a Tesla or any other electric vehicle, they find appealing.  

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Out of balance 

It was during this conversation that I realized that my knowledge was greater than I had previously thought but I did not truly appreciate the lack of information in the marketplace. This lack of clarity is part of the reason the electric car companies have had little chance of getting a foothold. 

Social Media

social media icons
Photo by NordWood Themes on Unsplash

Social media is an important avenue to pass on information to people. However, it anything that is not front, and center seems to be lost in the noise.  The general public don’t seem to find it as they don’t know what they are looking for. 

Recently I mentioned a report put out by the Electric Vehicle Council.  The report advised that 45% of people would consider an electric vehicle as their next car. 

This number may very well be true, but I also wonder how many of that 45% actually understand what the differences are with an electric car from an ICE vehicle.  

graphs of electric car information.
Information courtesy of “State of Electric Vehicles” August 2019- Electric Council Australia

I(nserrt image of percentages)

Furthermore, I wonder how we capture the remaining 55% of people’s attention to have a better understanding of the Electric vehicle market. 

Misinformation

I received a text message from my friend a couple of days later.  He told me that he had been considering the discussion about electric vehicles and had spoken to someone who said that Tesla’s need to have software updates and that Tesla charges fees to upgrade. 

I was surprised that anyone would sprout that kind of nonsense, so I sent my friend the links to the software update details that Tesla puts on its website. I also sent him the link to Andy Slye  that also outlines how the software works. 

This just reinforced the need to find new ways to get the message out that electric has greater benefits than most people think and that there is so much misinformation the waters are getting murky. 

Call to Arms

I call upon all my followers and friends, my fellow bloggers and Youtubers to combine forces, to create new and fresh ideas on how to get the right information in front of as many as you can. 

The opportunity is now! The information is out of balance! We have a responsibility as passionate aficionados of the information to share and spread it near and far and help to reduce the confusion and misunderstanding. 

My friend has not made any decisions as to whether he can afford to go electric. I hope I have helped to change the mind of one or two more people to the benefits of the electric vehicle. 

By sharing my knowledge with just one person who becomes interested I have helped to spread the information and hope it keeps going. I will continue to share my passion for the cars and hope that my turn to own a Tesla won’t be far away. 

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Are Australian Tesla’s about to get cheaper?

white tesla

Are Australian Tesla’s about to get cheaper? An encouraging report is suggesting that Australian deliveries for Model 3 and Model Y from Tesla, may be delivered from Giga Shanghai towards the end of 2020 beginning of 2021. 

It has been a major point of contention, that the prices in Australia are too high for the average person. 

The idea of Tesla’s being manufactured and delivered from Giga-shanghai is not a new idea but one that many have requested for a while, my self included.

Australian Prices

If the Model 3 and Y are to be sold as a family car, or as the car for the masses, then the price needs to be more affordable, around the $30,000 – $40,000 dollars mark.

This price would give price parity with the average ICE vehicle and allow for natural competition. Currently in Australia costs of Tesla’s are almost double these amounts.

Now of course, part of these cost are taxes both Luxury Car Tax (LCT) and Import tax and every other person who is involved with the delivery tax. 

breakdown of a tesla

Giga-Shanghai

GIGA Shanghai
Featured Image Credit: WuWa Vision/YouTube

There is a possible change for the delivery of Tesla’s from Giga-Shanghai to the Southern hemisphere, inclusive of Australia, this was reported by Bloomberg and shared by Sawyer Merritt on twitter.

This change in location of manufacturing and delivery increases the chance of a possible price change. That would make the Model 3 and hopefully Model Y see price drops and become more affordable and achievable by the average person in Australia. This would continue to help to support the Tesla Mission. 

The news that it may actually be occurring is exciting for Australians looking to make their next purchase an electric car. 

The Electric Vehicle Council released a report in August 2019 called the State of Electric Vehicles. This report highlights some of the details relating to the possibility that 53% of people either already own or are thinking about purchasing an electric car as their next vehicle.

Model Y ordering

Model Y not an order page
Courtesy of Tesla.com

In Australia the Model Y is yet to be able to be ordered. This is not in line with the Model 3, which was available to be reserved from almost day one of the announcement. 

This delay with ordering could be aligned with the decision to ship cars from Giga Shanghai. Giga Shanghai has a number of buildings being constructed currently which have been rumored to be for the Model Y.

These would need to be completed for deliveries of model Y to Australia to occur.

Based on reports the building are close to being finalised which would in turn align with the timeline suggested for Giga Shanghai deliveries to Australia. 

Prices in Australia

Are Australian Tesla’s about to get cheaper? EV-HQ in February of this year commented on the prices of Tesla’s in Australia on Twitter and Elon Musk responded with this tweet.

This response was an indication that he also believed that prices for Tesla’s are too high, which he reinforced at the recent shareholders meeting held in July 2020, Tesla, Inc. Q2 2020 Financial Results and Q&A Webcast.

Tesla’s mission of transitioning the world to sustainable energy and transport must at its core be able to be flexible in the execution. The possible change to delivering and manufacturing vehicles for the Southern hemisphere and right-hand drive (RHD) countries is another step towards this achievement. 

Opportunities for Fremont

Fremont factory
Image courtesy of CleanTechnica.com

The knock-on effect of a change like this opens the way for reduced reliance on delivering all models of the Tesla fleet globally from Fremont and disperses the deliveries across the network of factories. Thus, building redundancy and stability in manufacturing and deliveries.

It also allows Fremont to start planning for the manufacturing of the Roadster which Elon has mentioned would come out of Fremont factory. 

Are Australian Tesla’s about to get cheaper? It is encouraging to see that possible changes may be coming to the way Tesla is progressing their vision and the positive impact it can have on the average person is a win for the individual, and also for the world as we try to fix the issues that we have caused over the last century. 

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Eco system lock in

world from space
Image by motionstock from Pixabay 

Eco system lock in, Tesla has grown from a small startup car company to a global leader in EV technology.

Are Tesla heading down a road that is predicated on the fact that people need to be in the ecosystem to get the benefits of the companies’ technologies?

Since apple’s recent concern regarding the app store I have been wondering if this is something that Tesla needs to manage as well. 

Apple

Apple products
Photo by Serpstat on Pexels.com

Apple has in recent history been criticized for not being more transparent and open. They pride themselves on privacy, which is good business sense, however it does come with some draw backs. 

When you as the customer buy apple products you are open to the opportunities apple provides. Firstly, you have the ability to create an account, once you have the account the following becomes available to you;

  • Access to the app store 
  • Apple Music
  • Find my family
  • Apple Maps
  • Apple TV, Apple TV+
  • iTunes Store
  • Etc. 

These are mostly software application portals. These days you can get a credit card (USA Only) which locks you into their banking, Apple pay system, where they offer incentives for spending more. 

Apple is working to be part of your health management with the apple watch, health app, integration with Medical Record systems like Cerner and aligning with the Mayo Clinic to develop research projects that utilize the customers of the apple products. 

This innovation has a lot of positives that benefit many people and make their lives better. It also helps to keep people locked into their ecosystem.

Let’s Imagine for a second

Let’s Imagine that you have been using and integrating with apple products for 10 years and a new company with the newest and greatest product comes along and you want to change! 

It is at this point that Eco system lock in becomes real. 

Trying to transition all your devices and your information from the last 10 years could prove to be a challenge, not to mention costly.

So why does Tesla need to be cautious?

Tesla is starting to build a singular experience for the amazing technological cars they design and build.

These cars require an account, and they have an inbuilt ecosystem within the vehicles. This is complimented by the phone application that allows you access to your car and account. 

Tesla offers an eco-system that is not beholden to just cars either. Their products include solar panels, solar roof’s and Tesla batteries.

Their mission is to transition the world to sustainable energy and in doing so it would be reasonable to consider that this would include realization of new and innovative products. 

As any new product is introduced it is another way to get locked into the Tesla Ecosystem.

Tesla has the opportunity to avoid ecosystem lock in and look at the ability for the products to integrate with other systems long term. To bring others along for the journey to a sustainable nonpolluting energy production future. 

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This is the start of an ecosystem. 

Tesla Charger
Image by ElasticComputeFarm from Pixabay

Elon Musk is a very smart guy and he has helped to bring some of the brightest minds in the world to Tesla to develop the amazing products we see today. These people have started Tesla down the road of creating an Eco system that is exciting and futuristic. 

One of the most interesting parts that highlights the different thinking that Tesla is bringing in the early days that even apple did in the early days of its resurrection.

They are offering the ability for other car companies which may not have the technical know-how of electric cars to utilize their drive chain and batteries.

This is encouraging to see. I would hope that into the future the software systems may also be integrated.

It shows the thinking that is occurring in Tesla that just may indicate that they hopefully are trying to avoid the issues related with Ecosystem lock in. 

Tesla is aspirational and is looking to grow and develop a fandom and customer base that keeps coming back for more.

The Tesla community are passionate, sometimes to a fault. They are driven to see the world and the Tesla Mission realized. 

This group of passionate people want nothing more than to enjoy their cars, spread the fun and passion they have to the rest of the world and hope that Tesla comes out on top. They profess that once you go electric you will never go back. 

This is extremely true for Tesla because they are so far ahead in technology and performance. 

Tesla’s ecosystem is growing, and the passionate fans are growing with them. The early adopters have been the vocal few for many years and have continued to share their passions with their family and friends and the rest of the world.

Compare

I am an apple fan boy and have been for many years. In my collection of products i own iPhone, iPad, apple TV’s etc. I am a tragic ecosystem lock in having influenced friends and family to buy.

This has been not just because I love their products but also because their operating system just works and is easy to navigate. 

Tesla aligns with similar features, they have products of which I do not own any yet, but when I do, I will want to buy more and share that with family and friends. 

Both companies have a number of similarities;

  • Create an account 
  • App helps to manage that account
  • Applications can be access through the products
  • Software updates bring new functionality
  • New products help to improve your lives

Customers!

At the heart of any company wishing to sell their products Customers are the life blood. Customers are the ones that will make or break you as they will do their talking with their money and their feet. 

In the case of Tesla, the customers are their greatest asset. They do a large amount of promotion across social media and they expect a lot from the product. 

They are passionate and loud, but they do not go into buying a Tesla blindly, they do their research they understand the products and the company well before purchasing. 

CEO influence

Elon Musk is the most vocal CEO of any car company across the globe and with that it allows a unique opportunity for people to engage and influence how the world of Tesla moves forward. 

This unique relationship helps to allow the community voice to guide the future of the car company.

This unique relationship can help to avoid the ecosystem lock in with the customer helping to show the way and have a voice at the table. 

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But ecosystem lock in Is real. 

Eco system lock in is real and once a customer purchases all Tesla Products one could argue that they are locked-in to Tesla’s Ecosystem.  

One of the main reasons that the customer would consider Tesla first if already part of the Ecosystem is the familiarity of the products. 

It is a person’s ability to realize it is easier to connect to an already established eco system than it is to buy new cars, solar panels and batteries. Tesla sells large purchases, it is hard to change your solar panels, car or house battery year to year.  

Tesla stands out, and looks to the future

There is, some positive things to look towards that indicate that Tesla is trying not to have a walled garden completely. Recently, Elon Musk said on twitter that they are open to allowing other car companies to use their components from Tesla for their cars, drive train and batteries. In the future it may even be software.

This glimmer of positivity to open the Tesla ecosystem to others is important and should be pursued.  It is a positive step towards improving the ability for other companies and products to interface and avoid the eco system lock-in that other companies have become accustomed to. 

Tesla has a mission that is greater than the parts of Tesla itself and that shows the true human factor behind why they want to change the world for the better. 

If there is to be an ecosystem lock-in then lock in to the ecosystem we live in and help the environment we live in.

Ecosystem
Image by enriquelopezgarre from Pixabay

People at the end of the day have a choice, they have a chance to decide for themselves. 

Eco system lock in is something that could happen to Tesla and the customers. The question is will it? That is yet to be decided. 

I hope that the future they wish to achieve, based upon their mission, is the one that we all focus on and use of the technology they produce to help achieve this goal is open for everyone to enjoy. 

I would think that the ecosystem supports the goal not the other way around. 

Through the roof

Tesla Model 3 driving down dark road
Photo by Dylan Calluy on Unsplash

Through the roof, what a week. 

This week has seen one of the most thrilling weeks in the Tesla stock price I can remember since taking an interest a number of years ago. 

Stock Price

I am a small investor as I don’t have a lot of money to throw at Tesla, but I am an avid fan. This week I have watched in awe at the original people who got on board of the Tesla Train back when the share price was around the $150 mark.

They bought what they could and when they could for many years hoping that one day the vision that Elon Musk kept talking about would come true. 

Well this week was that week for many. Most of the people who posted on twitter were just simple average people who put money in and now they find themselves with bigger than expected outcomes. 

Some have cashed in and made their lives easier. Other have decided to keep ongoing on the Tesla train and most have taken some and kept some. 

I too have had a small amount that has grown with them and in a small way I have enjoyed the ride. Would I have liked to have more invested? Yes of course but like I have said before I am an average guy. 

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The word Future with man Creating it

Tesla Future

The reality of what Tesla can achieve is always going to be one of my passions not just because of the Stock price but for the amazing technology they produce. 

Tesla is just about the split their stock so that the price is lower so that more “retail “investors can get on board. I will take advantage at that time as well and grow my footprint of how much stock I own. 

I am truly excited for what is coming down the pipeline and for Tesla going through the roof.

  • Possible inclusion in S&P
  • Tesla Battery and Investor day 
  • Release of Model Y to the rest of the Globe including Right Hand drive Countries. 
  • Cyber truck release
  • Semi Release
  • Cyber Quad (if this ever happens)
  • Roadster

These are just some of what is yet to be realized with Tesla. 

I have no doubt that Tesla will continue to innovate and grow their ideas and footprint globally. That is why I am a fan and someone who is loving the ride. 

I will in the future own a Tesla so I can share my passion for the cars and brand. 

Tesla will continue to be a company that leads the way into the future that as a kid I was always promised. 

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I cannot wait to see what the stock price does next and how others are rewarded for their passion and support of Tesla. I hope that it goes through the roof.

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Tesla Stock Split – Part 5

(Dave’s Journey to owning a Tesla) 

tesla bespoke wheel
Photo by Tommy van Kessel 🤙 on Unsplash

Tesla Stock Split- Part 5 is the next part of the Dave’s Journey to owning a Tesla. 

Disclaimer – This information is my own opinion. I am not a financial advisor or affiliated with any financial institution. 

Part 3 – The Entrepreneur, and Part 4 – Taking my own advice, discussed the ability to grow your income through innovation of thought and applying fresh ideas to already existing problems and finding a way to monetize that approach. 

Let’s talk about the stock split!

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Stock Split

In the last week we have had a significant pivot in the way Tesla is looking at their future growth. The news which was reported by Tesla themselves outlined the Tesla Stock Split of 1:5

This stock split is not unprecedented in the world of stocks but for the average person who has not been a shareholder or involved in any company that they held shares for, this is an interesting thing to do.

The BareFoot Investor as part of their strategy, also talk’s about investing to grow wealth over time. 

The Tesla stock split is interesting by the fact that it allows those of us who are average people with little ability to spent thousands of dollars on stocks and investing, we now have the opportunity to invest just a couple of hundred dollars and become part of something we have a passion for.

For a lot of people investing in a company that aligns with their values, to help improve the environment and increase the ability for the world to transition to renewables is now reachable. 

So, what does 1:5 share split mean? 

If you as a shareholder currently with Tesla and you have a full share, then as of the 28th August you will end up owning 5 shares on the 31st August. 

The total of those 5 shares will be the same as the original share. For example, if your original share was $1500 before the stock split. After the split you will have 5 shares valued at $300 each, $1500 in total. 

So why is this Part 6 Tesla stock split part of the Dave’s journey to owning a Tesla? 

The share market is a way to grow wealth so long as you listen to professional advice, and based on your assessment of your own financial position and risks, you proceed with caution while being well informed. 

As I have said I am no financial wiz, but this is one-way I can grow wealth to achieve my goals while staying true to my values.

This is an opportunity if you like Tesla( https://www.tesla.com/en_au/ add link ) and you wish to be part of the retail investor environment, want to back a company that aligns with your values on the environment and own a cool car and technological products then look at this opportunity. 

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If you don’t have the money, then don’t do it! 

If you have financial difficulty this will not get you out of trouble. 

Look for opportunities that you are happy to accept the risk (loss) on. 

Investing is risky and can be fraught with peril if you don’t do your homework. 

But for me this is something I have long been working towards and I am going to try and take advantage of the opportunity before me. 

passion led us here, looking down at the words and shoes
Photo by Ian Schneider on Unsplash

I believe Tesla has a long way to go and has road map that doesn’t end with the cyber truck.

I am looking to the future and seeing that I have an opportunity to get one step closer to the end goal of owning a Tesla and helping to assist the world to transition to sustainable energy and transport. That is the ultimate goal.

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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The long road

long road running off in the distance and sunset

The long road, each car we drive has an impact upon our souls. 

Being 5 

As a young man I would dream of driving cars through rough terrain and battling against wind rain and hail. I would be making some amazing jumps and maneuvers that made me the best driver in the world. I was 5 after all.

My imagination ran a little wild when I was 5 going on 25 but man it was fun imagining the ultimate machine. Of course, I have never owned was is considered an ultimate machine but at least I can still imagine. 

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My Dad

I have always liked cars and when I was young it was any car that my dad would point out. These days those cars are considered classics or bombs, depending on their condition. But to me they are the cars of my childhood and they left a mark. 

My dad drove many cars over the years. But the most interesting and awesome of these cars came in a small package. 

classic mini in brown
Image by MikesPhotos from Pixabay 

A classic 1975 Mini – brown. My dad had this car for many years, and he drove it into the ground. This car was always fun to be in. It was low to the ground, went superfast and had some interesting interior. 

It was a work horse of a car, but it was lots of fun and my dad loved it.

At 5 years old any car was fast, and the interior was interesting because it had very little in it other than an am radio and a gear stick that came up from the floor. The seats were vinyl and the boot opened down.

This brown mini was the first of 2 mini’s my dad owned. He also spoke of the VW beetle he owned and how it was the best car he owned. I don’t remember the beetle, but my dad has talked on and off about it over the years. 

VW beetle Classic Purple
Image by Vahid Kanani from Pixabay 

These cars had good memories for my dad and because of his impressions and love for the cars it influenced my car passions. 

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My first car

My Dad allowed me to take over the second mini as my first car and I can tell you that it was a fantastic car. 

All cars have their quirks and this mini was no different. But the fun, stories and quirks made the experience all the better. 

Hanging out with friends who also drove mini’s and the good times we had catching up because of these cars made the experience leave impressions on my soul. 

When driving the mini I was close to the ground and could feel and hear every bump and roll of the car. It was small, comfortable and just downright fun. 

The long road calls back to the long road taken to get to where I am today but to the long road to own a car that makes me feel the way I did when I first owned the Mini. 

Feeding the Soul

Model Y Roof panorama
Image courtesy of Tesla

I have test driven a Tesla model 3 and I can say without any doubt the model 3 reminds me of the original mini. Minimal interior, power when you need it and not much else. It reminds me of the passion I have for cars and the fun that I had in my early 20’s.

To say that cars leave an impression on your future decisions by taking you back to your youth is totally true. 

I loved the mini, and when I finally can own a Tesla, I too will love being taken back to my younger years to that feeling of passion, fun and exuberance. 

I hope I too can have the same influence and impact for my son when he starts to learn how to drive.  

Dave 

David McCann
David McCann

EV_HQ founder

DAVE’S Blog posts

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Offers of sponsorship and collaboration are welcome.

please contact Dave at electricvehicleHQ@gmail.com, on twitter @evhq2 or on the contact page of EV-HQ.com.