The Model Y……… vs ………. global pandemic

Courtesy of Tesla

12 months ago, Elon musk introduced the Model Y to the world. It was a subtle introdcution to the world. Some have said that the model Y reveal was a less impressive introduction of any Tesla before and after. The question is why? Could it be due to the similarities with Model 3 taking 75% of the parts that the Model 3 has? Maybe, but I think there may be a greater theory.

SUV market is huge globally and as such Tesla understands, to compete you have to be part of the field. How do you do this easily and ahead of time? You use what you have already designed and make it incrementally better.

So, the Model Y is born.

Since then we have had little insight into the vehicle or its timeline until Tesla announced that deliveries would start in March. Today is the 14th March and the first deliveries have already started according to recent reports.

image courtesy of Electrek
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You tube, Twitter, Facebook and many more social media accounts are all a fluster over the model Y. Any Tesla fan would be anxious to see the new car on the road because the rumors are suggesting that this will be the best-selling vehicle from Tesla yet.

One thing that had not been anticipated by anyone was the outbreak of a modern Pandemic that is impacting global population, markets, companies and above all else production of things.

This pandemic is real, not a myth and not to be underestimated. There is going to be impact. I have a health background and know the impact this disease can do, and I also know that what China did with Social distancing is going to be the only way forward until we find a treatment.

The impact that is yet to be realized is the impact to production. If Model Y is a shining light at the beginning of the year 2020 for Tesla and yet they are about to find it difficult to meet expectation due to unforeseen circumstances.

Will it sell like expected? Will it continue to wow the general public when they are closed behind self-imposed and then governmental restrictions to move. In the short term I think deliveries will slow and the world will possibly take time to reflect on the important things in life.

Hopefully they will realize that the world needs change to be able to survive and enjoy the best of life. They will also realize that if they are confined to home that there are a lot of people online who want to share their story about amazing cars called Tesla’s and hopefully, they will think they are amazing and wants to buy one. So, they will order online. Here’s Hoping.

Tesla will survive and the Model Y will thrive and grow and become the juggernaut that everyone thinks it should be. The pandemic will recede, and a vaccine will be developed, and the world will move forward with sadness and sorrow. It will be looking for ways to make the sunshine brighter and the people smile larger than before the pandemic occurred.

Let’s hope Tesla and Model Y help to heal the damage.

Image courtesy of Tesla

Dave

Written by David McCann 14/03/2020
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Australian Tesla Prices

Image courtesy of Tesla

Australian Tesla Prices, 12 days have passed since I received a response to a simple twitter request to Elon Musk. It is incredible that a CEO of a global company is willing to respond to average people like myself. I am a passionate Tesla fan who is driven to see the mission of Tesla realized. 

To accelerate the worlds transition to sustainable energy. 

The only way I am able to currently assist with this is to spread the stories and information about Electric Vehicles to the greater community across Australia and the Globe. 12 Days ago, Elon gave me assistance to achieve this very goal.

I also wish to be able to transition my own house and family to utilizing Sustainable energy and vehicles. As I explained in my tweet to Elon the cost of Tesla’s in Australia is not within the reach of the average Australian. With a starting point of the base model 3 with no Full Self Driving is $71512. (Australian Dollars) This is a hefty sum for anyone to swallow. 

In comparison, in the United States the price of the same car is $39990 (US Dollars). When this is converted using the conversion rate of $1.51 us dollars to the Australian dollar the conversion cost equates to $60385(Australian Dollars). 

Australian Tesla Prices

Comparison between USD and AUD for Model 3 Tesla

So, the question needs to be asked what is the difference of $11127 used for?

According to the Australian Bureau of statistics (https://www.ato.gov.au/rates/key-superannuation-rates-and-thresholds/?page=40 ) the average wage in Australia (based upon Average Weekly ordinary time earnings (AWOTE) in June of 2019 of $1634.90 multiplied by 52 weeks of the year equals $85014.80(AUD), before tax. If the taxation rate is approx. 32.5 cents in the dollar for every dollar above $37000. Once this calculation has been completed the approximate amount that one individual will earn is $70000. This sounds like a large number however there is still the home loan/rent, Utilities, Living expenses, Car expenses, schooling for kids, etc. These numbers outline the fact that purchasing a car is not only a big decision, but one primarily driven by the cost.

Australian living expenses have been on the increase in the last 10 years due to a number of reasons least of all that environmental factors are playing their part with long droughts, 100-year storms, flooding and bushfires that are devastating areas of produce and farming.

This impact is felt in the hip pocket of every Australian across the country and that only increases the cost of living expenses and consumes the savings which historically have been put towards the wants rather than the needs. 

If Tesla, and by extension Elon Musk, truly wish to gain traction in Australia there is a real need to drop the price so that the Average Australian family can afford the Model 3. The Model 3 is well suited to the Australian Market. Especially city dwellers. The Cybertruck would be well placed for those who live in the country.

If Elon and Tesla could find a way to reduce the cost of either building or transporting and investigate the $11127 disparity between the US and Australian numbers, I believe the uptake of the Model 3 in Australia would advance greatly. Furthermore, I also believe that the mission that Tesla has prided itself upon would also be realized that much quicker. 

Whilst investigating the above points I also reviewed the comments from the Tweet. I came across a number of people comments who also expressed their challenges with the cost within their countries, these included 

All of these people highlighted their challenges with cost of Tesla’s, however in a number of cases they also voiced that they would buy a Tesla as their next car if they could afford the price.

Australian Tesla Prices.

These are customers in waiting.

Waiting for a price that they can afford and manage on their wages. Their passion for the cars is not wavering but the cost is a real factor. 

I also had a number of people talk about their experience when buying a Tesla at the current prices and outlined that a number of Taxes here in Australia were also considerably high and unnecessary like the “Luxury Car Tax”, which was introduced to assist local car manufacturing. Unfortunately, in recent years all car manufacturing by all big companies has ceased in Australia. This was due in part to a greater acceptance of foreign manufacturers and the improved quality and variety of vehicles on offer. Now that we have no manufacturers and all vehicles are imported this tax serves no purpose. 

So, where to from here so more people can gain access to some amazing environmentally friendly cars and the suite of other products that Tesla has on offer. 

Some ideas include:

  • Tesla
    • Find cost saving s to reduce Model 3 Price
    • Investigate the price differences highlighted above
    • Leasing (suggested by @TeslaGong)
    • Supplying Australia with Giga Shanghai Tesla’s 
    • Compartmentalize features of Tesla’s that can be purchased at a later date
    • Build an Australian Giga Factory #GigaOz
  • Government
    • Incentives (Green rebate)
    • Remove the Luxury car tax from all Electric Vehicles
    • Reduce stamp duty, registration, etc. 

 These changes would have a profound effect on the footprint of Electric vehicles in Australia and also assist people to truly transition to a sustainable energy future. 

Dave

Rating: 1 out of 5.

Appendix ( Comparison between USD and AUD)

2020 Tesla Semi

Image courtesy of Tesla.com

The Tesla SEMI was announced with great fanfare by Tesla in late 2017. Since then there have been a number of sightings across USA of the test vehicles being put through their paces. They have also been used as demonstration vehicles for companies looking to purchase the all-electric Semi truck for their fleets. 

These are the companies who have placed orders for the Tesla Semi so far:

  1. Walmart: One of the first major companies to reserve the trucks, the retailer has made aggressive investments in technology in recent years as part of its effort to compete with Amazon.
  2. Pepsi: Pepsi previously had the largest Semi order, reserving 100 trucks in December.
  3. Anheuser-Busch: The brewer announced it ordered 40 Semis in December.
  4. FedEx: The transportation service announced that it reserved 20 Semis in March.
  5. Sysco: The food distributor has reserved 50 Semis.
  6. UPS: The delivery company placed the largest Semi order to date, reserving 125 trucks in December.
  7. DHL: The transportation and logistics company has reserved 10 Semis to add to its fleet.
  8. Meijer: Based in Michigan, the grocery chain has ordered four of the electric trucks.
  9. Ryder: The transportation company reserved an unspecified number of Semis in November.
  10. J.B. Hunt: The trucking company is set to purchase “multiple” Semis, but hasn’t revealed the exact number.
  11. Asko: The Norwegian food distribution company has ordered 10 Semis.
  12. Posten Norge: The Norwegian postal service ordered an unspecified number of Semis.
  13. Flexport: Ryan Peterson, the freight company’s CEO, announced the company has ordered one Semi.
  14. JK Moving: The independent moving company has reserved four Semis.
  15. Loblaw: After ordering 25 Semis, the Canadian supermarket chain announced plans to make its trucking fleet 100% electric by 2030.
  16. Fercam: Based in Italy, the trucking company has reserved a single Semi.
  17. Girteka Logistics: Not to be outdone by Fercam, the European transportation company also announced its plans to invest in one of Tesla’s electric trucks.
  18. Fortigo Freight Services: The Canadian logistics company reserved one Semi.
  19. Best Transportation: The shipping company also ordered one Semi.
  20. Mecca & Son Trucking: According to Jalopnik, this trucking company has reserved one Semi.
  21. TCI Transportation: The truck rental and leasing company has reserved 50 Semis.
  22. City Furniture: The furniture retailer has reserved five Semis.

As can be seen there are a number of large corporations that have taken the time and initiative to see that the future is electric.

Just today I was looking at tweets from @Brett_Swanson7 who explained that he is looking forward to the SEMI due to the fact that “this one product will have the greatest environmental impact over any other product in world history”.

Brett has a significant point here and one that cannot be denied. Currently to move goods across large distances there are three ways. By air, by sea and by land. I want to focus on the land element. The vehicles that are used to travel across land are trucks. 

This one product will have the greatest environmental impact over any other product in world history

@Brett_Swanson7

Due to large populations and limited amounts of space on most trucks there has to be large fleets on the road at any given time. We are talking thousands of trucks across any one continent and many more when considering global population. What this means is large amounts of Carbon dioxide (CO2) being pumped into the air from exhaust fumes. 

Photo by Tom Fisk on Pexels.com

The point that Brett is highlighting is that to remove CO2 producing vehicles from the road and replace them with electric vehicles, like the Tesla SEMI, we then start to have a significant impact to the global warming and environmental impacts that are becoming more apparent every day. 

Just recently with the bush fires in Australia we have seen the ongoing impacts of an increase in global temperatures and a reduction of rain across land masses which has allowed the land to become extremely dry and easily catch fire. What most forget is that trees are the main devices to help remove carbon dioxide from the air. By having over 5 million hectres burn they not only release smoke but also the contained carbon dioxide within the trees into the atmosphere.

Any assistance, we as a global society can do to help this reduce is helping mother earth heal and better combat the issue we currently face. 

In no way will it be the only thing that will help but Tesla is uniquely qualified to assist with the uptake of the Semi and other electric cars. 

Image courtesy of Tesla.com

I believe the Semi can allow for many global companies to provide improved transportation between destinations whilst contributing to the evolution of clean vehicles and ultimately drive the future environment back to health. 

Dave 

Written by David McCann 14/01/2020

Rating: 1 out of 5.

2020 Predictions

Photo by Roberto Nickson on Pexels.com

Looking back on the past decade it is easy to say that Tesla has led the way with the invigoration of the Electric Car industry. With their lineup of vehicles currently in production and the possibilities this decade will bring puts Tesla in the driver’s seat for 2020. 

Tesla is not just a Car Company it is a Tech Company

David McCann
Ev-hq.com

The plan that Elon originally conceived 

  • Build a sports car 
  • Use the money to build an affordable car
  • Use that money to build an even more affordable car
  • While doing the above, also provide zero emission electric power generations options. 

This plan was in itself simple to say but for Tesla over the last 10 years has proven that to perform as a car company is difficult and challenging. But as has been said many times Tesla is not just a car company it is a tech company and is and has been behaving like that since the start. What this has allowed them to do is shake up an industry that has needed an injection of life and innovation. 

The introduction of the all-electric car by Tesla all those years ago was ahead of its time for sure but I wonder if Elon and the tesla team knew then that it would be so profound 10 years later. 

Current cars

When the Roadster was released it was unique, inspirational and hinted at what tesla could achieve when given the right tools. This car again led to greater things when the Tesla released the Model S and then the Model X. These cars according to the original master plan where parts of steps 2. They achieved with the introduction of the Model 3, step 3. Whilst they were creating these award-winning vehicles Tesla was also building large Gigafactory’s, innovating and deploying energy generation and storage capability to many areas around the globe. 

Those that believe the last 10 years that has seen Tesla go from a small car company to a global phenomenon was just a fluke and is not possible to continue their run of great success may find that the next decade gives them many reasons to pause. 

Predictions

Photo by Kaboompics .com on Pexels.com

Now as we head into the 2020’s it is important to make some predictions about what they may look like for tesla and electric vehicles. Tesla has a number of projects that 2020 and beyond will show that they are well advanced in the next couple of years. The introduction of the Model Y, Cybertruck, New Roadster and the Semi are just the start of the potential for Tesla over the next couple of years. 

Having watched Tesla for a number of years I have a few ideas of what I think they may do over the coming years 

Proliferation

Remembering that the mission statement of tesla is to increase the proliferation of electric vehicles I believe their biggest objective for this decade is to continue to build new Gigafactory’s like the one in china in other areas of the globe that will increase sales and electric vehicle uptake. Tesla has already proven they can do this in a timeframe unheard of before so this should occur in the next couple of years. 

Remember the mission statement….

david Mccann
ev-hq.com

Deliveries

When the new vehicles are released, they will continue to drive sales and proliferation however deliveries are essential to improve the process. Knowing that Tesla is an innovation company I believe they will find a way to have cars delivered to the home instead of picking up at the Delivery Centre as a first choice rather than an exception. This will allow for less over heads and more deliveries in decentralized areas. 

New Vehicles

Tesla has shown it can respond to different vehicle categories and I believe this will continue to occur. First, they disrupted the sedan luxury market. They then upset the Average driver market. Soon they will disrupt the SUV market followed quickly by the supercar market. They have the potential with the SEMI to disrupt the trucking industry and they might have the same effect with the Cyber truck. 

Autopilot and Full Self driving

Elon has been quoted many times that we should be afraid of artificial intelligence (AI) and yet he runs one of the companies that is using machine learning and A.I. to build an essential element to the Tesla fleet with Full self-driving. I believe that Full self-driving will be one of the defining factors that will put Tesla ahead of the rest of the field. It will also have implications in how AI is used within all devices moving forward. They will set the tone for what is required. 

Image courtesy of Evannex

These predictions and ideas are not necessarily new and have been discussed in some way in the past. I believe that this is the decade where Tesla really doubles down on their ideas and will exit the decade with amazing new vehicles and software that is without equal. 

Dave

Written by David McCann
14/01/2020

Rating: 1 out of 5.