SEC filings on Wednesday revealed Elon Musk sold $3.6 billion more in Tesla stock.
Analysts speculate the proceeds will help cover Twitter’s deficits, raising concerns.
Dan Ives stated that Musk is ‘using Tesla as his own ATM machine’ to fund Twitter.
The impact of Elon Musk buying Twitter on Tesla is getting scarier for investors. For the third time, after saying in April that he had “no further TSLA sales planned,” filings made on Wednesday revealed Musk sold 22 million more shares of Tesla, valued some $3.6 billion. That brings the total amount of Tesla stock that Musk has sold this year to $23 billion.
Just a few days ago, Musk promised that in the long haul, Tesla would benefit from his ownership of Twitter. But there’s growing skepticism from analysts that will happen. Dan Ives at Wedbush wrote in a report on Thursday that Twitter remains a nightmare for investors because Musk has been using “Tesla as his own ATM machine to keep funding” the social network.
Tesla’s falling electric vehicle sales as countries around the world face their own recessions amid the ongoing fall out of the pandemic isn’t necessarily a shock. But it does present a problem for Tesla and its owner, who continues to use its shares to fund his refashioning of Twitter for his ventures to build out ‘the everything app’ that he refers to under the name “X.”
Ultimately, Elon promised Tesla shareholders they’d benefit from Twitter. He also promised he wouldn’t sell any more Tesla stock. It’s up to Tesla investors to decide whether he plans to keep his promise.
In his note to clients, Ives maintained an outperform rating for Tesla, indicating that he expects Tesla’s rate of return to do better than its peers despite signs that it won’t be the best performer in the batch.
Munster, for his part, further admonished that Elon would cause long-term damage if he does nothing about the number of issues arising from the billionaire’s purchase of Twitter.
The broader market is also worried. Tesla’s stock has dropped 31% since Musk bought Twitter at the end of October. When you track how the stock has held up since Musk’s offer to buy Twitter in mid-April, it’s down 52%. It should be noted that tech stocks lost trillions of dollars in value this year due to a drop in consumer demand, inflation, and the overall market correction from the astronomical multiples seen the year before.
Tesla faces other issues besides Musk’s Twitter problems. The company is no longer the main electric car maker on the block in multiple countries. Since new entrants have carved out their own market share and traditional automakers have successfully launched a series of hybrids and their own EV models, Tesla has seen a rise in competition in the US, China, and parts of Europe.
It was only earlier this month that Bloomberg reported that Tesla was slashing some of its production output in China by 20% to 30%, a sign that the reality of sales didn’t live up to what they were projected to be. It’s been also reported that the EV maker lowered the cost of its cars in China in an attempt to boost sales. It worked, but Tesla ultimately lost out to its Chinese competition, BYD.
“More activism and growing investor frustration will force the Board of Tesla to confront some of these issues head on in the near-term. This is a moment of truth for Musk and Tesla,” wrote Ives.
When Speedhunters started back in 2008, my mission was to cover as much European car culture as possible. One of the first events I covered that year was the Essen Motor Show, held at the Messe Essen exhibition center in the North Rhine-Westphalia region of Germany. I’ve attended the show every year since (except 2020, of course) and while a lot has changed in almost a decade and a half, the passion around Essen has remained constant.
But what is the Essen Motor Show? I think the best way to describe it is that it’s a mix between a trade show and a car show. There is something for everyone, from youngtimers to the latest hypercars. You can even buy that special tool for your car or a scale model. I managed to bag two Liberty Walk Hot Wheels for my collection.
But in the end it’s all about the cars. The TuningXperience hall is full of handpicked cars that showcase the latest trends. Most of these builds are privately owned, and built by the owners themselves. Then there are the halls dedicated to tuning brands, that showcase demo cars fitted with the newest parts. Over the course of this post and a second instalment, I’ll be sharing with you some of the standouts. Let’s get started…
An Essen highlight every year – and something that seems to be getting bigger and bigger – is the JP Performance stand. ‘JP’ stands for Jean Pierre (Kraemer), JP Performance’s owner and Germany’s biggest automotive YouTuber. One of the cars I was really excited to see was this pink 911 nicknamed Flamingo, built from the ground up by AP Car Design in Göttingen. A key objective for the build was light weight, and with the 964 tipping the scales at just 983kg (2,167lb), I think they more than succeeded.
Some cars are made from unobtamium, so the next best thing is a replica. CN Racing from Germany built this Porsche 917 homage up from the original drawings, but have incorporated a whole lot of new tech to vastly improve it. It will be easier to drive than the original thanks to a 3.6-liter engine from a Porsche 993 Turbo, but is certain to still be a handful thanks to its power-to-weight ratio of 600ps-to-820kg (1,807lb).
Essen had no shortage of BBBs (Big Body Benzes) this year, and you can always count on Levella adding to the mix. One of Levella’s cars was this 560 SEC fitted with their own Retroline wheels, the R2 model in this case.
Another Revella Mercedes-Benz receiving a lot of attention was this W124 E-Class, fitted with R4 Retroline wheels. Under the hood is a 6.0-liter V8 from an E60 AMG.
Fitting big engines into small cars never gets old, and here’s the owner of this stunning VW Golf explaining to some enthusiasts how he put the Mk1 together. You may have noticed the big V6 lump in the engine bay; this one came from an Audi, along with the entire drivetrain including 6-speed DSG gearbox. The wheels started life as 15-inch BBS RAs, but have been converted to 3-piece with 17-inch barrels.
I kept coming back to this E36 BMW time and time again. Perfect paintwork and a perfectly-fitted set of BBS wheels really set it apart.
This Ferrari Testarossa from Top Secret Tuning has had the full Liberty Walk treatment and sits on its skirts thanks to Prazis air suspension with Air Lift Performance 3P management.
Of all the VW Golfs, the Mk4 is my favorite, and this one is a beauty. Under the hood is a fully-built 3.2-liter R32 engine with ‘stage 3′ supercharging good for 400ps, and it sits on 2-piece BBS Le Mans wheels in an 18-inch fitment.
Given the value of R34 Nissan Skyline GT-Rs these days, it’s always refreshing to come across a modified version that sees regular road use. I’m sure this one – sitting pretty on 19-inch Work Meister S1 3P wheels – is a lot of fun to drive too – 600ps (thanks in part to a Tomei 2.8L stroker kit) on 16psi boost pressure ensures that.
This BMW E9 has been doing the rounds for several years, but the guys at Qualitatief are always changing it up to keep the car relevant. In the past we’ve see the coupé completely blacked out, but I’m glad to see they’ve returned to a more traditional look with all the chrome parts.
When I first laid eyes on the new BMW M2, I was on fence with regard to its square design. But seeing the car in person changed my mind; it looks way better when it’s sitting right in front of you.
It’s hard to beat a classic Euro look, and this Mk4 Golf proves it with a clean exterior, massive drop and a set of 19-inch BBS GT004 wheels. Some say it’s easy, but to get the perfect fitment takes dedication and plenty of trial and error.
You don’t see many Opel Oscanas around these days, as most have rotted away. Of all the survivors, this Ascona B must surely be one of the best. The car has received a full nut and bolt restoration with a 2.0L engine on Weber carburetors at its heart, Koni shocks and Mantzel springs, and classic Schmidt wheels in 16-inch sizing.
This Typ 89 Audi Coupe looks wild wearing a wide-body kit from Prior Design, of which only 40 have been released to the market. The Audi is powered by a 2.6L V6 engine and rides on KW V3 coilover suspension with a front lift system.
I got a nice surprise when I saw this Midnight Purple III R34 Skyline GT-R on the Chrome Cars stand. It’s something extra special too, having been previously rebuilt at Nissan’s famed Omori Factory to full Clubman Race Spec.
What’s better than a Porsche 992 GT3? A Porsche 992 GT3 MR with all the latest Manthey Racing upgrades and 4-way adjustable KW coilovers. Absolutely gorgeous.
This is definitely not your average Peugeot 206. It all starts with a full WRC-inspired wide-body kit and 18-inch Excalibur wheels, but when the hood is open it’s hard to look past the 3.0L V6 engine complete with Garrett GTX3582R turbo.
This Audi RS4 belongs to German YouTuber Philipp Kaess, and features full carbon fiber bodywork amongst many other upgrades.
A 1982 VW Golf GTI 16 S Oettinger provides the base for this ultra-clean build. It’s powered by a 1.8-litre Oettinger engine with plenty of extra enhancements, Gepfeffert KW V3 suspension and genuine BBS E19 magnesium wheels.
We’ll finish up this post with another Golf and another build from the JP Performance stable. JP’s Mk7 ‘Super Golf’ has gone from silver with orange accents to this white and rainbow version, but under the skin is still absolutely nuts.
Stay tuned for more from the 2022 Essen Motor Show!
Car retailers in the UK are missing out on £166 million in aftersales revenue due to a failure to tap into manufacturers’ vehicle safety recalls, research conducted by Auto Data Solutions has found.
The automotive data and technology consultancy found that around 3% of vehicles in the UK have outstanding safety recalls during an in-depth audit of revenue opportunities conducted to mark its second anniversary.
It believes that the untapped opportunity could generate £94m in extra labour revenue or a total potential revenue, including parts and labour, of over £166m.
Jon Sheard, director of Auto Data Solutions, said: “We connect dealers with recall databases to identify vehicles that need work. It’s a low-cost way of generating additional aftersales revenue and an opportunity that could be worth up to £300m over the next five years, and in addition to the financial benefits for the sector, we are also helping to improve UK road safety.”
Auto Data Solutions advises dealers to remind customers of their obligations to schedule recall work after receiving notification from the OEM.
Some motorists may be putting off a visit to a dealership to have recall work done due to concerns about the cost-of-living crisis, so emphasis should be placed on the terms of work carried out under warranty in any communications.
In a recent interview for the 2022 AM100 report, meanwhile, Swansway Group director Peter Smyth said that connected cars’ alerts to vehicle owners had the potential to be the biggest driver of aftersales efficiencies in 2023.
Auto Data Solutions is led by former Cap HPI senior managers Jon Sheard, Amanda Morgan and Mark Bassford.
It claims to help dealers, fleets and OEMs trade more efficiently by using the latest technology and smarter data.
Auto Data Solutions’ customers include fleet software company Digital INNK and international media group, Autovia.
It has recently helped dealers meet their compliance requirements with audits and advanced data cleansing.
Sheard said: “Our business has grown as we help dealers and the automotive supply chain harness the power of data to create new revenue streams. Our combined expertise and experience have helped launch new digital services and unlock opportunities for dealers. We’ve come a long way, and the future has never looked more exciting.”
Morgan said: “It is possible to balance customer satisfaction with corporate profitability by adopting a data-centric approach. The latest technology can create hyper-personalised offerings that deliver the loyalty of happy customers. The recall study shows that using data can provide benefit to the customer while improving revenue for the dealer.”
While ESG implementation and energy management for fleets becomes increasingly complicated, the first step in making the best decisions is to share information and data with all stakeholders.
Photo: Canva
When it comes to sustainability and reducing carbon emissions, the microscope is on transportation; and rightfully so, given that the sector generates the lion’s share of U.S. greenhouse gas emissions. Against this backdrop, it’s little surprise that sustainability and electrification were dominant themes at this year’s Fleet Forward Conference.
As sustainability becomes an ever-growing priority for fleets everywhere, ESG leaders, fleet managers and owners/operators are all looking to electric vehicles as a key tool in the global shift toward decarbonization … and while EVs are making progress, they are not the only tool at our disposal. Although fleet electrification is an essential component to long-term decarbonization, solutions like alternative sustainable fuels and data analytics will be just as crucial to facilitate smooth, streamlined carbon reductions across the transportation sector.
Expectation vs. Reality: ESG Implementation
As the transportation sector stares down the energy transition, fleet managers are getting top-down directives to “go green” and as a result, are finding themselves having to manage not only their fleets, but energy as well. ESG programs are becoming more dialed and detailed, with increasingly aggressive timelines that often put fleet managers in the position to reconcile the high-level goals set out by senior leadership and sustainability directors with the realities of day-to-day fleet operations.
But often, those goals do not match the realities of fleet management, as senior leadership may lack firsthand knowledge of the operational complexities and budgetary constraints associated with successfully operating a fleet. Electrification, for example, goes far beyond simply putting drivers in EVs: the transition requires the successful convergence of vehicle procurement, availability of charging infrastructure, budgetary constraints, driver education, maintenance requirements, and more.
As the energy transition continues, fleet management must integrate with complex energy management if fleet owners and operators are to develop holistic, long-term plans for fleet operations. As the energy landscape complexifies, the burden of this expertise is getting higher as well.
Even this year, if you look at the fluctuations in conventional energy pricing, the expansion of renewable options, and the potential impacts of the Inflation Reduction Act, those managing fleet energy decisions are navigating an increasingly complicated landscape that will continue to require in-depth knowledge and dedicated attention.
Tracking Progress
As Sweeney of Wheels Donlen explained during the panel, the best tool we have in managing expectations and informing decisions is education through data and information sharing. Making these realities clear to all levels of management is key to ensuring successful outcomes. She noted that one in five public charging sessions ends in failure; ensuring that drivers, fleet managers, and senior leadership are aware of these limitations and other critical information is key to managing expectations and justifying robust backup options.
Offering data insights to all levels of a company allows fleet managers and senior leadership to see eye-to-eye. Insights can be used to demonstrate the realities of fleet performance using any range of fuel types and conditions. Insights can also be used to model which decarbonization solutions can be deployed successfully with any given fleet.
At this 2022 Fleet Forward Conference session, panelists discussed the importance of a holistic approach to ESG initiatives.
Photo: Ross Stewart, RMS3Digital
With services by providers such as Wheels Donlen, data is even tailored to specific audiences within companies — webcasts or dashboards that show high-level fleet insights or challenges faced might be targeted toward senior leadership, while fleet managers would gain more tactical insights like KPI-focused data analytics.
Altering the metrics used to track performance may also help manage expectations. Instead of thinking of carbon reduction on a “tailpipe emissions vs. no tailpipe emissions” spectrum, we should consider it from the metric of carbon intensity per mile, allowing for a more holistic view of carbon emissions involved. An EV may have zero tailpipe emissions, but carbon intensity per mile would take into account the carbon emissions generated by the mining of minerals to build batteries and the carbon burden from grid energy, making “zero tailpipe emissions” less sustainable than they seem.
When we look at carbon intensity per mile, it becomes more a question of the overall impact of each fuel source paired with its efficiency in the field. With sustainable alternative fuels, for example, there may be tailpipe emissions, but the overall impact may be offset by the use of renewable feedstocks or more sustainable mobile fuel delivery services like that offered by Booster.
Diversifying the Toolbox
Regardless of education and the driving forces of ESG directives, real progress is dependent on the tools fleet managers deploy and the feasibility of those tools in the real world. Lack of EV chargers, inclement weather conditions, improper maintenance, government incentives, and more all stand to complicate decarbonized transportation solutions. The key to success is to develop a range of solutions in each fleet arsenal that can address various needs, conditions, and goals.
During the panel, Reese of Utilimarc pondered the risks of relying on one decarbonization solution. She considered emergency events, questioning what happens when a fleet manager is completely reliant on stationary EV infrastructure to charge vehicles — and then the power goes out. How do you charge emergency response vehicles and how do people get to the grocery stores or food banks?
With a privatized grid, how can people afford the surge pricing that comes along with a major outage like the one Texas experienced in 2021? Her point: you must have the ability to actively deploy other solutions like mobile EV charging or sustainable alternative fuels. Diversifying the decarbonization toolbox is key to maintaining operations across unknown events and the changing landscape.
Diversifying the decarbonization toolbox is key to maintaining operations across unknown events and the changing landscape.
Sustainable fuels also offer a great solution, especially for fleets that might not be ready to fully electrify or who lack the grid power and infrastructure to support EVs. Given calls to speed adoption of decarbonized transportation solutions, the market is seeing an influx of sustainable alternative fuels that are fully fungible, healthier for internal combustion engine vehicles and 100% renewable.
What’s more, fuels from green feedstocks — renewable diesel made from used cooking oil, for example — have now reached a cost parity to fossil fuels in some areas due to government incentives. This opens the opportunity to take a fleet that was powered by fossil fuels on Monday, and convert it to renewable energy by Tuesday with no capital expenditure.
Building a diverse energy portfolio now will help fleets sustain success and profitability across the long term of the energy transition by making them adaptable. Implementing sustainable alternative fuels while developing electrification in parallel will allow fleets immediate sustainability gains and carbon reduction as well as longevity into a future where EVs are more widely supported by infrastructure and the market.
Managing Expectations and Embracing Holistic ESG
Reconciling high-level ESG goals with the operational and budgetary constraints may be a headache, but the ongoing tension between the boots-on-the-ground “doers” and the mandates from above present the opportunity to identify gaps and address them over time so that we make meaningful progress toward wide-scale electrification. Beyond that, the market itself still holds major economic and operational roadblocks to electrification that will impede fleets with limited resources, at least in the short term.
But if fleet managers break down the transition into smaller parts by focusing on education through data and iterative sustainability gains through diverse solutions, success is attainable.
Creating truly sustainable fleets will require approaching the transition from all angles, combining electrification, sustainable alternative fuels, education, data, and more to be sustainable not just from an environmental perspective, but from a profit and longevity perspective as well.
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Lego has announced its next automotive release, the Nissan Skyline GT-R from “2 Fast 2 Furious.” The 319-piece kit is part of the Speed Champions series, Lego’s line of officially licensed car kits.
Like the car used in the movie, the kit is based on an R34-generation Nissan Skyline, built between 1999 and 2002. Lego’s version does a fairly good job of depicting the actual JDM supercar. It’s instantly recognizable as an R34, especially with its squared-off headlights and iconic stagger-sized afterburner taillights. Overall, it’s one of Lego’s more accurate adaptations to the low-resolution medium of plastic bricks.
In addition to the base car, both the film and the plastic car have six-spoke aftermarket wheels, a body kit, and gigantic wing on the trunk. There’s even a nitrous oxide bottle where the passenger seat should be. The kit also comes with a figure of Paul Walker’s Brian O’Conner, the series’ cop turned street racer turned secret agent protagonist.
In 2019 an R35 Nissan GT-R Nismo became the first Japanese car licensed by Lego. They haven’t done much with the Nissan relationship since (Datsun 240Z, anyone?). Though the movie tie-in makes for good marketing, we’d prefer to see a regular Skyline GT-R kit without the Y2K-era graphics. Nevertheless, it makes a good addition to the many Corvettes, McLarens and Lamborghinis they’ve already made. The Skyline GT-R goes on sale in January 2023.
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Not all of us are lucky enough to drive the real deal, but some of us get pretty close.
The Porsche 993 GT2 was a car embellished with firsts and honoured with lasts. It was a car that showcased the height of the Porsche design team’s efforts to tame the rear-engine catapult that was the 911 in all its unruly character. It was a car that borrowed race car technology from the ineffable 959, and was also the car that signalled the end of the Porsche air-cooled flat-six era.
This is not a 993 GT2, but a lowly 993 Turbo, for which I would still offer my first born child. It was put together at the Madlane workshop in Okayama, and in some ways it is better than the car it’s modelled off. Let me explain why…
The 993 series was released back in 1995, and unlike previous versions of the 911, this time around Porsche designed 80% of the car from scratch. Of the many revisions and improvements, some of the biggest changes made were to the suspension and driveline. An all new multi-link suspension system made from lightweight alloy was essential support for the all-wheel drive system taken from the 969. This was the first 911 to send power to all four wheels.
The GT2, in accordance with FIA race regulations at the time and thanks to dominating grip monsters like the Audi Quattro and Nissan Skyline GT-R, did away with the AWD system. But for both the road and track, I know what I would rather have…
What the Turbo gains in weight it makes up for with extra front-end grip to smooth out the oversteer that had given previous Porsches such… character. Thankfully, this one retains the innovative AWD system.
GT2: 0, Madlane Turbo: 1.
Another thing that sets the GT2 apart from the run-of-the-mill Turbo 993 is the widened track – 46mm wider at the rear to be exact. Housing all that extra width, the GT2 had its fenders cut off and replaced with plastic bolt-on overfenders.
Madlane’s interpretation of the GT2 has a full carbon fibre kit including arches and front and rear bumpers. We all know carbon fibre is better than plastic, so GT2: 0, Madlane Turbo: 2.
Another first for the 993 Turbo was the offering of lightweight hollow-spoke alloy wheels, undoubtedly iconic in their own right. However, if you’re familiar with Madlane’s creations then you’ll know that Kazuki-san has a bit of a wheel fetish. For this build, he’s chosen custom-built, three-piece Speedlines.
On a mechanical level, the GT2 and Turbo models had basically the same 3.6L air-cooled boxer engine with the GT2 getting an extra 50PS bump from its tune and turbo system. Kazuki-san has managed to source a GT2 ECU which takes care of that.
To complete the GT2 package, this Turbo has had its turbos replaced with the Kühnle, Kopp & Kausch turbos from a GT2. Are you keeping track of how many times I’ve mention turbos so far?
Funnily enough, the air-cooled engine found in the 993 an almost entirely new design. It was a kind of last hoorah, the swan song of the air-cooled flat-six. Ultimately, the efficiency and power gains which water-cooling enabled would open the door for ultimate German combustion. It wasn’t perfect on the first try, but after a few revisions of some faulty designs, the foundation was laid for all the 911 monsters that have followed.
Air-cooled purists will of course tell you that there is nothing like the sound and feel of a classic luftgekühlt Porsche. But they’re probably the same people who only wear lambswool or only ride penny-farthing bicycles. There’s no real benefit, other than it being unique.
All of our favourite cars have had to evolve and go through various generations, some more popular than others. Probably the most desirable models are the cars which were the first or last to introduce some feature. The cars which sat at the cusp of these transitions seem to be the ones that people love; they give us just enough of the old stuff we love with the benefits of the new stuff we need. They also tend to be the models which can have the stuff we don’t like, easily swapped for the stuff we want from the new kid on the block.
Messing around with cars is the best.
This is what I love about car culture – taking a classic and adding a few tasteful improvements in the right places to make it shine. I truly believe that ‘built not bought’ is a philosophy well worth having tattooed across the chest of every car enthusiast. Or maybe a bumper sticker is more sensible…
Against a backdrop of rising interest rates, slowing loan/lease volumes and increased competition, auto lenders are finding that their most valuable future customers are the ones they already have. According to the J.D. Power 2022 U.S. Consumer Financing Satisfaction Study,SM released today, customer retention has become a key focal point for auto loan providers, putting the spotlight on specific actions lenders can take to drive increased loyalty and brand advocacy.
“Consumers have more lending choices than ever before,” said Patrick Roosenberg, director of automotive finance intelligence at J.D. Power. “They’re doing more research and doing that research earlier in the vehicle-buying process. That’s why the customer experiences they are having with their existing lender is so important. For lenders that want to secure repeat business with existing customers, it is critical to consistently anticipate and meet their needs at key points in the customer journey.”
Following are key findings of the 2022 study:
Captive lenders significantly outperform non-captives for customer advocacy: For a second consecutive year, automotive captive lenders significantly outperform non-captive lenders when it comes to brand advocacy with existing customers. The average Net Promoter Score® (NPS)[1] for captive lenders is 56 and the average NPS for non-captives is 40. Industry-wide, customers who are promoters (those who say their likelihood to recommend their current lender as a 9 or 10 (on a 0-10 scale) are nearly twice as likely to say they “definitely will” consider their current lender for their next vehicle when compared to customers who are passive (those who say their likelihood to recommend their current lender as a 7 or 8).
Most auto financing research begins a month before a purchase: Among auto loan customers who research financing options prior to a purchase, most begin the research process more than 30 days prior to purchasing or leasing a vehicle. Effective use of both applied for and unsolicited pre-approvals can lead to a greater customer recapture rate and conquest opportunities.
Key actions to drive brand advocacy: Specific actions taken by auto lenders that have the most positive effect on customer advocacy include easy-to-use websites; useful account review information; and electronic statements that are easy to set up.
Study Rankings
Capital One Auto Finance ranks highest in customer satisfaction among luxury brands, with a score of 879. GM Financial (865) ranks second and BMW Financial Services (858) ranks third.
Ford Credit ranks highest among mass market brands for a second consecutive year, with a score of 877. Southeast Toyota Finance (874) ranks second, while Capital One Auto Finance (870) and Honda Financial Services (870) each rank third in a tie.
The U.S. Consumer Financing Satisfaction Study measures overall auto financing customer satisfaction in five factors (listed alphabetically): account management; application/approval process; billing and payment process; customer orientation process; and customer service experience. The study was fielded in July-August 2022 and is based on responses from 10,199 customers who financed a new or used vehicle through a loan or lease within the past three years.
Tesla is developing a revamped version of the Model 3, according to four people with knowledge of the effort, as the top EV maker aims to cut production costs and boost the appeal of the five-year-old electric sedan.
One focus of the redesign codenamed “Highland” is to reduce the number of components and complexity in the interior of the Model 3 while focusing on features that Tesla buyers value, including the display, according to the people, who asked not to be named because the revamp has not been announced.
The previously unreported redesign comes as the electric sedan faces increased competition from models from the likes of China’s BYD, Hyundai and coming releases from other major automakers.
The revamp of the battery-powered sedan, which could also include some changes to the Model 3’s exterior and powertrain performance, will go into production at Tesla’s factory in Shanghai and the company’s Fremont, California plant, two of the people said. Tesla’s Shanghai Gigafactory will put the redesigned Model 3 into production in the third quarter of 2023, they said.
It was not clear when production would start at the Fremont plant or how large a cost savings Tesla would achieve from the redesign as it works with suppliers.
The effort spotlights an approach to vehicle development pioneered by Tesla and now being copied by other automakers, including Toyota Motor, that removes complexity – and cost – in production.
It is also an example of a key project at Tesla that has rolled ahead even as Chief Executive Elon Musk has focused on his troubled acquisition of Twitter in recent months, an area of concern for Tesla investors.
Tesla did not respond to a written request for comment from Reuters.
Change you can see
The redesign for the Model 3 builds on the revamp of the Model S — Tesla’s premium EV sedan — that was released last year. That redesign added an airplane-style yoke in place of a traditional steering wheel and removed buttons and traditional air vents as part of a minimalist interior where the centerpiece is a 17-inch electronic display.
The Model 3, Tesla’s cheapest EV starting at just under $47,000 in the United States, had been the automaker’s best-seller but is being overtaken by the Model Y crossover. With only four models in production, styling changes to any part of Tesla’s lineup carry an outsized importance compared to established automakers.
Ed Kim, president of AutoPacific Group, which tracks market trends and production, said the current Model 3 has already been updated from the version that first went on sale in 2017 because of the way Tesla updates battery performance, information and entertainment options through software, even if it still looks the same.
“Having said that, consumers still tend to equate visual changes with newness,” he said. “Tesla knows visually tangible changes are in order.”
“The upcoming changes that potential customers can see and feel will be very important in ensuring that EV customers still have Tesla at the top of their minds as truly excellent alternatives to Tesla are starting to flood the market,” he said.
Keep it simple
Musk has pushed a simplified approach to design and production at Tesla that the Highland project extends, said the people with knowledge of the development.
Tesla has pioneered the use of massive casting machines known as Giga Press and built by IDRA Group in Italy to make single, larger pieces of a vehicle in assembly, reducing cost and speeding production. It has also designed a structural battery pack that does away with more expensive modules.
Musk has said Tesla is looking to drive costs down through simplification and working on a small-car platform that would be half the cost of the Model 3.
“Over and over, we found parts that are not needed. They were put in there just in case or by mistake. We eliminated so many parts from a car that did nothing,” Musk said in an interview at a Baron Funds conference earlier in the month.
The approach is part of what has made Tesla the most profitable electric vehicle maker while many rivals are still running at a loss. In the third quarter, Tesla made a profit of just over $9,500 for every car sold, compared to roughly $1,300 for Toyota, according to disclosures by both companies.
The revamp of the Model 3 comes at a time when sales in China, its second-largest market after the United States, are under pressure. Sales for the Model 3 in China fell 9% in the first ten months from a year earlier, while BYD’s Qin and Han electric sedans outsold the Model 3, according to China Passenger Car Association.
To boost sales, Tesla cut prices for Model 3 and Model Y in China by as much as 9% in October and offered an additional rebate for buyers who took immediate delivery.
Sam Fiorani, who tracks Tesla and industry-wide production at Auto Forecast Solutions, said the upcoming changes to the Model 3, which he understood were coming, showed the power of Tesla’s approach in taking out complexity.
“They are always looking for ways to make EVs profitable, and more profitable,” he said.
Easily one of the most controversial additions to cars in the past 10 years is the introduction of artificial powertrain sounds. And that’s entirely understandable. On internal combustion cars, it seems so needless, because the natural noises could be amplified instead of creating a digital facsimile. Worse, the fake sounds usually sound fake and unpleasant. In most internal combustion cars with such augmentation, I try to turn it off. And you would think that would be the case with electric cars, since they’re pretty close to silent.
And yet, I actually rather like the sounds in EVs. Let me explain.
While I dislike sounds that attempt to recreate natural ones, I don’t mind them if they’re trying to be something else entirely. Those internal combustion sounds live in a sort of uncanny valley where they’re so close to reality, the areas where they miss stand out and make them unpleasant. Many EVs, on the other hand, go with a completely artificial and imagined soundscape. Perhaps most successful are the latest BMW electric cars, such as iX, that feature sounds created by film composer Hans Zimmer. They have a futuristic, but growly noise that avoids being grating.
Additionally, the relative silence of electric cars takes away a helpful sensation for gauging what the car is doing. There’s no aural feedback for your acceleration and deceleration like you get with an internal combustion car. It can make it harder to determine how fast you’re going or whether you’re decelerating enough. Another instance where sound is so helpful in internal-combustion cars is with shifting. When I’m driving a car with a manual transmission, I mainly shift by ear, unless I’m trying to shift at redline every time. Sound is a genuinely useful piece of feedback, and artificial noises can help with that.
Our long-term Kia EV6 hits these key points for me. First, the sounds are connected to your throttle and acceleration, so they add that helpful feedback. Second, they’re all unique and aren’t based in reality. And yes, I’m using “they” because Kia gives you three options to pick from.
Stylish
My favorite so far is “Stylish,” which is a slightly high-pitched whir or whistle that sounds high-tech and adjacent to motor whine. I also like that the frequencies tend to fade into the background of light wind and road noise at cruising speed, so it doesn’t get annoying at cruising speeds.
Dynamic
The second sound available is “Dynamic,” and it’s my least favorite. It has a lower, more mechanical sound, sort of like gears in a transmission. It sounds more aggressive and can be fun when driving hard, but at cruising speeds, it’s more dominating and can get tiresome. Check it out.
Cyber
Then there’s “Cyber.” I liken it to Stylish’s deeper-voiced cousin. It has similar noises, just all pitched down. It also has a more aggressive vibe than Stylish, but not as annoying to me as Dynamic. The lower sound stands out to me more at highway speed, so I prefer Stylish, but depending on your hearing, you may prefer it. Take a listen.
All of these have default sound profiles, but they can each be customized even further. You can adjust the maximum volume, as well as the sensitivity to throttle inputs.
And critically, they can be turned off completely. While I do enjoy having a little sound with my driving experience, the fact is that the relative silence of electric cars is a huge perk to many people. Adding back sound takes that away. So I genuinely appreciate that Kia offers the option to shut it off entirely.
I think some automakers, such as BMW may have slightly better soundscapes, but Kia has some darn solid ones. And the customization and option to toggle them off are exactly how such a feature should be implemented in new electric cars.
So what exactly is the 408? In essence, it’s effectively Peugeot’s version of the Citroën C5 X, a car that aims to combine coupé looks with plenty of practicality and a smattering of SUV style. Not only do they share a similar fastback profile (I’m pretty sure we used to call this type of design a hatchback), it’s underpinned by the same EMP2 V3 architecture and offers an almost identical line-up of powertrains, including the petrol-electric plug-in hybrid (PHEV) tested here and a forthcoming all-electric version.
That said, while the two are closely related, there’s no doubt that Peugeot’s stylists have done a fine job of giving the 408 distinctive visual appeal. Bold surfacing, particularly the sculpted rear wheel arches and bold LED lighting signatures, help the 408 stand out, while it being a little shorter than the C5 X gives it a tauter and more muscular stance. Neat details include the retro-inspired script for the badging and the eye-catching asymmetric design used on the optional 20in alloy wheels. Even quirkier are the ‘cat’s ears’ at the top of each C-pillar, which are said to improve airflow as well as hide the extra metal needed to balance head room against the desired coupé aesthetic.
As ever, i-Cockpit remains a bone of contention, with many drivers finding that the top of the small steering wheel impedes their view of the instrument cluster, which is a shame, because the 3D-effect display looks pretty cool.
More successful is the new 10.0in infotainment touchscreen, which has already been seen on the Peugeot 308. Not only does it look slick and respond fairly crisply to your inputs, but also its strip of large touch-sensitive hot keys for the various menus make it simpler than most to use while you’re driving.
For most people most of the time, it will be a comfortable, hassle-free and stylish companion. It’s also remarkably spacious, well equipped and well built – plus we have to give thanks that it’s not just another SUV. Whether it’s worth more than £2000 over an equivalent C5 X is up for debate, but there’s no denying that for fleet users, this Peugeot’s numbers do add up – even if the ones on its bootlid don’t quite.
