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Tag:

Tesla

Standards Still China’s Waterloo Where Spread of Electric Vehicles is Concerned

Standards Still China’s Waterloo Where Spread of Electric Vehicles is Concerned

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Electric vehicle enthusiasts here in the U.S. are all a flutter over the news that China has announced several policies aimed at creating a market for electric vehicles.

They are also excited about the news that a Chinese businessman decided to build his own charging network when he couldn’t drive his Tesla Model S from Guangdong to Beijing because of a lack of charging stations.

The businessman, Mr. Zong, bought 20 220V charging stations from Tesla and installed them at businesses on the roads to Beijing. Now he can drive to Beijing in his new Tesla, it seems. Other Tesla owners can use the chargers too, he says.

Tesla thanks him for his contribution to China’s charging network. “We welcome any efforts from the private or public sector that promotes the widespread adoption of electric vehicles,” a Tesla spokesperson here in the U.S. wrote to me in an email.

This has little significance where widespread adoption of electric vehicles in China is concerned. It may promote more sales of Telsa vehicles in China. That’s about it. The stations can’t be adapted to charge other EVs, though the press has mistakenly reported that Mr. Zong will adapt them so other EVs can use them. Per the Tesla spokesperson: “Mr. Zong did not modify the wall connectors to fit other EV brands. He installed the Tesla ones for Tesla only.”

Even if Mr. Zong had wanted to modify the connectors to fit other EV brands, he couldn’t have. Well, perhaps he could, but they might only fit one other EV brand, in one city. That’s because, despite all the stories that China puts out (and the foreign press eats up) about producing and selling millions of EVs, and about all the charging standards it has issued, and the mandates to make local governments buy EVs and install charging posts, there are still no finalized standards in China for the connector configuration, the communication standard, or DC charging. Without those, China is creating a huge problem by urging widespread adoption of EVs. Instead of a nationwide industry, it is creating many local industries.

Here’s the lowdown on the state of charging standards in China:
First, the AC standard. That’s the slower charging method, and the one that will be used most widely. Chinese voltage is already 220V (versus the common 110V and less common 240V here in the U.S.) so plugging into a wall socket gets you Level 2 charging in China.

China in 2011 released an AC standard, GB/T 20234.2-2011. GB stands for “Guobiao” or “national standard.” T stands for “tuijian,” or “recommended.” How does that really translate? China hasn’t settled on a final standard yet. The Tesla spokesperson put it well. She wrote: “It lacks definition of some important parameters, resulting in the incompatibility of EV products with different brands and charging facilities in different cities. So it is still a voluntary standard, not mandatory.”

The central government is pushing automakers in China to produce EVs. People won’t buy them without a charging network. So localities come up with their own charging station parameters including connectors and communication. Local automakers produce EVs that can use those charging stations but can’t safely charge anywhere else.

And what about that mandates that 30% of local government fleet purchases must be EVs? And that that 30% of their purchases be made from manufacturers outside their area? (Which are not new, by the way. Both were included in the policy issued in September, 2013).   Well, the EVs from outside the area won’t be able to charge on the local stations.

I talked with my old friend David Reeck, who recently retired from his post as Manager of Electrification Strategy for GM China, about the state of standards in China’s EV world. This is a man who spent years trying to rationalize China’s charging standards. Reeck is living in Oregon now, working as a consultant. He was not optimistic. “I would say by the end of the year China will realize it has really messed up,” he said.

He is especially pessimistic about the DC standards, which are the most contentious and thus the most difficult to decide. “From end of this year until about 2016 China won’t have a DC standard formalized,” said Reeck. China has a DC connector plug that it is promoting. But that lacks safety features that the European, U.S., and Japanese standards include. Also, the male and female parts on the Chinese DC connector are reversed, added Reeck.
There is disagreement among the Chinese about this standard, he says. Some figure it is safe for passenger vehicles — though perhaps not for trucks — and should be released. Others think it better to wait for a standard that works for all kinds of vehicles.

This is an argument that has been going on a long time. I attended the global EVS25 electric vehicle conference in Shenzhen in 2010 and executives from the U.S. Society for Automotive Engineers (SAE) told me at that time of their safety concerns regarding the Chinese plug standard. SAE is now working with China’s CATARC on a DC standard. But SAE declined to comment when I asked about the safety issue.

What do all these internecine battles mean for the industry? Let’s go back to Mr. Zong and his Tesla charging network. No, let’s drop Mr. Zong and just consider Tesla’s attempt to build a charging network in China. Remember, this is a company that has charging stations that only work with its vehicles. But the issues Tesla faces are those that the whole industry faces.

Tesla’s 220V charging stations in China have connectors that are based on the EU standard, which shares a communication standard with J1772, the U.S. standard. Those two are therefore compatible even if the connectors aren’t exactly the same.

When China does finalize the AC charging standard, “Tesla Model S in China will be compatible with the new GB AC standard,” said Tesla. That means all the charging stations that are installed up until then probably won’t work with future Tesla vehicles.

Meanwhile, the U.S. and Europe are moving ahead. In October of 2012, they unveiled a combined AC DC plug standard. It was created through collaboration between engineers in the U.S. and in Europe. “This new standard reflects the many hours that top industry experts from around the world worked to achieve the best charging solution – a solution that helps vehicle electrification technology move forward.” Gery Kissel, the combo plug Task Force Chairman, said. That didn’t include Chinese engineers, it seems. Or if it did, China didn’t collaborate. No, it wants to create its own DC standard.

Foreign automakers in China haven’t been sitting idly by while EV charging standards moved forward in the rest of the world. A group of foreign automakers – collectively known as the Charging Interface Initiative Asia – that includes BMW, Volkswagen Group, Daimler, Ford, and General Motors has been encouraging China to adopt a combined plug standard similar to that just adopted by Europe and the U.S..

So far China insists it wants its own standard. But in 2015, the Germans will “aggressively” demonstrate a combined China GB standard plug, says Reeck. Still, he figures China won’t have a DC standard formalized until 2016. And whether or not that will be compatible with international standards remains to be seen.



July 28, 2014 0 comment
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BMW Flogs its EV in China and Tesla Hits Some Potholes

BMW Flogs its EV in China and Tesla Hits Some Potholes

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I was in Chongqing a few weeks ago. Boy has that city changed since I first visited it in 2003.

But that’s not what I want to talk about. I was on an EV panel at the 2014 China Auto Summit , and also visited the Chonqqing Auto Show on media day.

What a pleasant change from Auto China. I could actually walk around without shoving through crowds of “journalists.” Of course, the Chongqing show is considerably smaller than Auto China and also is consumer-oriented – visitors can actually buy cars there. Since I was in town anyway, however, it was well worth the visit.

I went to a few press conferences, but mainly I just walked around and looked at car and for electric vehicles. I saw lots of cars, but found only one EV, the Zinoro E1, a pure electric vehicle produced by the BMW Brilliance joint venture.

(I do not count the Lexus CT200h regular hybrid in the EV category but it had a big stand all to itself in Chongqing.)

Oliver Liang, Brand Management Director for BMW Brilliance Zinoro China, was a fellow panelist at the Summit so I already knew something about the marketing plan for the 1E. I picked up several pamphlets at the show, as well. The car itself is nice-looking enough. But what impressed me is the thought BMW Brilliance has put into the marketing plan, which centers on the concept of “worry free.”

The vehicle is only available to be leased. It offers 1, 2, or 3-year or daily rental plans. Costs are respectively RMB11, 000/month, 9,000/month, 7,400/month, or RMB 400 a day. “We have prepared a range of convenient, worry-free services and flexible rental plans tailored to meet urban and individual needs,” said the pamphlet.

It includes a free maintenance package and warranty since Chinese consumers worry about the maintenance costs of a car with new technology such as an EV. “You will be able to keep your Zinoro 1E in optimal condition without incurring additional maintenance costs,” said the pamphlet.

If the car does need to go into the shop, Zinoro provides a free loaner car, and in the “rare event” of a breakdown, offers year-round, 24-hour roadside assistance as part of the lease.

China has few public charging spots. And who wouldn’t rather charge at home anyway? So the lease includes a wall-mounted charging unit and free installation (up to RMB 12, 0000).

The 1E became available for lease in December of 2013. It is currently only available in Shanghai and Beijing though I suppose someone from another city, say Hangzhou, could lease one in Shanghai and drive it home. If they could find charging stations along the way….

It will be interesting to see if this plan succeeds in moving some electric metal for BMW Brilliance Zinoro.

Tesla discovering China’s special characteristics

Meanwhile, I’ve been getting a stream of Chinese-language messages from Tesla on my Weixin feed concerning launch plans and services in China. But remember a blog I wrote a while back regarding issues Tesla would likely face in China, especially where building a charging infrastructure was concerned?

Well, anecdotal evidence and actual evidence suggests Tesla is off to a bit of a rocky start in China.
First the actual evidence. An e-commerce entrepreneur in Inner Mongolia smashed the windshield of his new Model S to protest glitches in the delivery process. Now that was a bit silly. But this is China. Buyers of an RMB 1 million EV don’t like to feel slighted.

Now the anecdotal stuff: A friend has a neighbor who bought a Model S with the 85 kWh battery. Charging does not seem to be a big issue for this new owner, for now. He lives close to Hongqiao Airport, and works in Anting, which is not that far from Hongqiao. One of Shanghai’s two fast-charging stations is in Anting (the other is in Pudong). So the Tesla owner can charge while at work, for now.

That may change if Tesla ownership reached the levels Tesla has predicted and competition for charging spots emerges. But I guess Tesla plans to add more charging stations if permitted. The owner also has a garage, so he can charge at home overnight.

Other aspects are not so sanguine. First, some interesting details about the licensing and tax: He was exempt from the license plate cost, which is at RMB 70,000 in Shanghai right now. But he did still have to pay the import tax. So the total cost of the Model S was RMB 1,000,000! Tesla touted its fair price policy of charging only RMB 734,000 for the Model S based on the following breakdown. So I guess there was an extra expense Tesla missed.
$81,070 US price
$3,600 Shipping & handling
$19,000 Customs duties & taxes
$17,700 VAT
734k CNY @ 6.05 exchange rate

Also a problem Tesla may not have anticipated – the touchpad for the infotainment control system doesn’t fully function in China. GPS, traffic, mapping of locations don’t work, said my friend. Neither does over-the-air updates, which will be a real problem as Tesla issues those rather frequently.

I sent an email to Tesla here in the U.S. asking how it planned to resolve these issues and hadn’t heard back at time of posting. I will add that info if/when I get it.

Article by Alysha Webb, a freelance automotive journalist and founder of ChinaEV Blog.



June 30, 2014 0 comment
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Elon Musk Launches the Tesla-Patent Commons

Elon Musk Launches the Tesla-Patent Commons

written by Eric Lane

About six years ago, a handful of tech companies launched the Eco-Patent Commons.  This initiative to share environmentally friendly patented technologies is administered by the World Business Council for Sustainable Development (WBCSD), a Geneva-based organization that promotes sustainability in business.

Last week, of course, Elon Musk, CEO of Tesla Motors, made quite a splash by announcing on the company blog that the EV maker would “donate” its entire patent portfolio.  To be precise, what Musk said was “Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.”

Although Musk’s move is very much in the tradition of the Eco-Patent Commons, it is more significant and likely to have a greater impact.  The significance of the brand new Tesla-Patent Commons is best understood by comparing and contrasting it with the Eco-Patent Commons before it.  This comparative analysis reveals both major relative strengths and some flaws.

The greatest distinction between the two is in the nature, quality, and breadth of the available patents.  The Eco-Patent Commons is comprised of tiny random slices of technologies developed by an eclectic mix of donating companies.  An entity that wishes to commercially exploit technology in the Eco-Patent Commons would have to locate a donated patent directed to an important innovation, and any business opportunity would have to logically flow from that patented innovation.

Commercial success in this way seems unlikely for two reasons.  First, aside from patent “troll” activity and similar secondary market business models, businesses do not flow from patents.  It works much better the other way round:  innovate, start a business around the innovation, and then, if possible, patent the innovation.

Second, the patents in the Eco-Patent Commons are those which the donating companies had little interest in exploiting themselves (or licensing to others) so the odds are slim that they are directed to important innovations that will be worthwhile for others.

Tesla’s patent portfolio, on the other hand, is large in scope, holistic in its breadth (i.e., supporting established commercial products) and presumably includes the crown jewels of the company.  Everyone knows the technology areas, product areas, and business ventures Tesla’s patents can support.  One can easily envision a number of well-defined businesses successfully selling electric vehicles, advanced batteries, and charging systems based on the freedom to operate provided by the Tesla-Patent Commons.

Keep in mind, though, that no commons can provide 100% freedom to operate.  True, if you manufacture and sell EVs, batteries, or charging systems employing innovations that are entirely coextensive with the claims of Tesla’s patents you won’t be sued by Musk.  However, these are complex technologies.  What if your EV includes Tesla-patented innovations along side other technical features patented by another less commons-y patentee with enforcement proclivities?

Perhaps the possibilities are not so limited.  Maybe instead of the need to match the features of their products to the donated patent claims, budding Tesla-tech businesses could copy the EV maker’s actual products, e.g., manufacture the Tesla Model S under another name.  After all,  the company has been around for a while and, to my knowledge, hasn’t been sued for patent infringement.  So it seems Tesla has the freedom to operate for its existing product lines.

Then the question becomes whether there are any mechanisms besides its patents that confer upon Tesla this freedom to operate.  For example, does Tesla license any of the technologies in its vehicles from other patentees?  If so, a budding Tesla-tech business might need to ask Musk if he would consider assigning the rights under any relevant license agreements to which Tesla is a party.

So the Tesla-Patent Commons is very significant, and unlike any prior (small “e”) eco-patent commons, but the commercial and legal realities of dealing with patents and positioning technological businesses to be free to operate are always extremely complex.

Ultimately, the impact of Musk’s decision may turn on to what extent other such players will be motivated to invest in manufacturing vehicles, batteries, etc. using Tesla’s patented and patent-pending technology with the obvious upside being the proven innovation that technology brings and the down side being no exclusivity, instead of investing in their own R&D and patent protection where the upside may be exclusivity and the down side may be inferior or unproven technologies.

Only time will tell, and I’m sure this author and many other commentators will be watching this closely.



June 16, 2014 2 comments
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Shanghai to Provide Free License Plates to Tesla Model S Buyers

Shanghai to Provide Free License Plates to Tesla Model S Buyers

written by CleanTechies Staff

By now, many of you may be aware of license plate quotas as a means to reduce the growth of the number of vehicles on the road as well as pollution. In China, major cities like Beijing and Shanghai have used license plate auctions for a number of years. In Shanghai, the cost of a license plate can cost nearly $15,000.

In an effort to stimulate the electric vehicle market, Shanghai exempted Chinese made electric vehicles from the license auction. Now, it has been confirmed that Shanghai will exempt foreign made electric vehicles as well with one caveat. The exemption only applies to the first 3,000 electric vehicles sold by a manufacturer. Once an automaker reaches 3,000, it must seek the approval of the Shanghai government for additional exemptions. News of this exemption was confirmed in Tesla’s Q1 financial statement release.

How soon will foreign automakers reach the 3,000 limit? Only time will tell. Official deliveries of the Tesla Model S start next month and may provide a good indication, especially in light of the cost of the car in China where it ranges from 734,000 to 852,500 yuan or 121,000 to 140,000 USD.



May 13, 2014 1 comment
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Guide to Buying Plug-in Hybrid and Electric Cars

Guide to Buying Plug-in Hybrid and Electric Cars

written by CleanTechies.com Contributor

Is an Electric Car Right for You?

Operating a car without needing to visit a gas station is intriguing idea to many American drivers.  After all, the pumps can be a painful place—gas prices have been on a roller coaster ride the past few years.  But in the minds of many American, electric cars are nothing more than glorified golf cars incapable of providing adequate daily driving range or sufficient highway speed.   In this new era of electrified transportation, those misconceptions need to be tossed aside.

Todays’ electric vehicles, like the Nissan Leaf, provide all the creature comforts and capabilities of gasoline internal combustion cars.  These EVs comfortably seat four or five passengers, offer quasi-luxury features, and serve up smooth, silent and sporty levels of acceleration.  But there are a couple of important issues to consider—such as driving range and refueling times.

Are There Drawbacks To Consider?

Except for top-of-the line expensive models like the Tesla Model S, which offers 250 or more miles of range on a single charge, most of the new EVs commonly provide about 80 to 100 miles of travel after receiving a full charge.

Actually, the average distance traveled by commuters in the U.S. is about 30 miles.  So EVs provide plenty of range for the most common routes.  The limitation only becomes an issue for single-car families or those who regularly go on a road-trip of hundreds of miles.  If you are a road warrior who takes long trips all the time—or have a daily commute of more than 60 or 70 miles—an electric car is probably not right for you.

For everybody else, an EV is a refreshing break from the petro-dominated past.

Unlike a gas car that refuels at a gas station in a matter of minutes, an electric car commonly takes a few hours to fully recharge.  This is mostly overstated as a concern because your car is almost always parked overnight while you sleep.  That’s the perfect time to charge, so that you can wake up with a full 80 to 100 miles of driving in front of you.  It’s as easy as pulling into your driveway or garage, reaching for the cord, and plugging it in.   This might be challenging for folks without a dedicated parking spot, but for most drivers, charging an electric car is more convenient than making those dreaded trips to a gas station.

What Are the Top Models?

The two top electric models today are the Nissan Leaf and Chevrolet Volt.  Keep in mind that not all electric cars are created the same.  The Nissan Leaf is a pure electric car, while the Chevrolet Volt is what General Motors calls “an extended-range electric vehicle.”  This is also referred to as a plug-in hybrid—meaning that the first set of miles, after a charge, are provided by batteries and an electric motor, after which a gas engine is used to extend range by hundreds of miles.  Other plug-in hybrids include the Ford C-Max Energi, Fisker Karma, and Toyota Prius Plug-in Hybrid.

Chevrolet Volt
The Chevy Volt is a well-equipped, five-door, four-seat hatchback that operates as an electric car for its first 37 or so miles after a full charge—and then uses gas to extend its range.

Ford Focus Electric
The five-door hatchback provides about 80 miles of range. It features higher speed charging than many competitors—as well as liquid cooled/heated batteries for maintaining range in hot and cold weather.  Availability is somewhat limited.

Nissan Leaf
Nissan’s groundbreaking electric car is the most popular EV ever produced.  It comfortably seats five adults and is loaded with high-tech luxury-like features. As of summer 2012, the Leaf is available to test-drive and purchase at Nissan dealerships throughout the United States.

Tesla Model S
The full-size Model S sedan has swept awards for Car of the Year in 2012.  It’s not only the most capable, comfortable, luxurious, and sporty EV on the road, it beats nearly every gas-powered sedan on all these same categories.  Range, with its largest battery pack, is more than 250 miles on a charge.  Expect a high price tag, and a wait of at least a few months.

Toyota Prius Plug-in Hybrid
The Toyota Prius Plug-in Hybrid’s 4.4 kilowatt-hour battery pack provides 11 or more all-electric miles after a full charge. As a result, drivers with short commutes commonly get more than 100 miles per gallon.  After the battery is depleted, the car works just like a conventional hybrid, providing about 50 miles per gallon.

Where Do I Get Fuel?

EV Charging

Electricity is ubiquitous in the United States.  So charging an electric vehicle is as close as your nearest electric receptacle.  For plug-in hybrids, you’ll only ever really 110-volt charging (using the cord set provided with the car).  For pure electric cars with larger batteries, you’ll likely want to install a piece of hardware referred to as “electric vehicle service equipment,” that can provide a 220-volt supply of juice.  The public charging infrastructure is in its infancy, but if you live in one of the major markets for electric cars, you’ll discover hundreds of local charging spots.

How Much Does the Fuel Cost?

As a rule of thumb, miles of travel on electricity are between one-fourth to one-sixth the cost of gasoline or diesel.  That means returning to the days of (the equivalent of) one dollar a gallon.  Some public EV charging is slightly more expensive, but by and large, the price advantage of using electricity as an automotive fuel is dramatic.

Are Electric Cars Green?

Regardless of how your local electricity is produced—whether by coal, hydro, nuclear or renewables—driving an electric car is as green as a motorist can get.  That’s because EVs are very efficient, using as much as 90 percent of onboard electricity (stored in batteries) as propulsion for the wheels—compared to gasoline internal combustion engine vehicle that use only a small percentage of its fuel to move the car down the road.  The rest of that energy is wasted as heat or, unfortunately, tailpipe emissions.

As time passes, and our electric grids increasingly use renewables, such as wind and solar, the environmental profile of EVs will become even greener.  Many of today’s electric cars have home photovoltaic (solar) systems, so they can essentially power their electric cars with sunshine today.

Article by Brad Berman, appearing courtesy ebay Green Driving.



April 28, 2014 4 comments
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GigaFactory Proves that Tesla is Ahead of the Clean Energy Curve, But Does Texas Stand to Benefit?

GigaFactory Proves that Tesla is Ahead of the Clean Energy Curve, But Does Texas Stand to Benefit?

written by CleanTechies.com Contributor

Disruptive technologies tend to follow a certain trajectory. First, they are outliers, often ignored, and typically on the cusp of never entering the market. But, for the successful ones, a tipping point is ultimately reached, after which the technology goes viral and changes the status quo it was designed to replace. In the new energy revolution, Tesla is one such company that has surpassed the tipping point and threatens to change the way we produce, distribute, and consume electricity.

It isn’t just Tesla’s sleek and beautiful electric vehicles that will be key to disrupting the status quo. At a current price point of around $80,000, most people en masse won’t be able to afford a Tesla, even though the company has plans to develop more affordable models. But what makes Tesla unique, besides the strange genius of CEO Elon Musk, is the potential diversification of its offerings, highlighted recently by the company’s announcement to build the GigaFactory, a $5-billion battery factory that will employ 6,500 workers.

Set to open in about three years, the new GigaFactory will be large enough to manufacture more lithium-ion batteries than the entire industry produces now, and due to its sheer scale, is expected to reduce the cost of batteries by almost one-third.

Tesla batteries and renewables

Tesla’s move to build the largest battery factory in the world is significant for the electricity market – and not solely for the large-scale adoption of electric vehicles.

Energy storage is the missing link for realizing the full potential of renewable energy. Storage guarantees that the energy produced by renewables is available at all times, even when the sun isn’t shining or the wind isn’t blowing. For example, storage can capture West Texas wind power at night when wind energy is most abundant and release that stored energy during the afternoon hours when demand for electricity is high.

But, to date, storage has been lagging in its availability and cost-competitiveness.

Worldwide, there were only 420 storage projects at the end of 2013 and only 34 megawatt hours’ worth of lithium ion battery projects built for the grid by the end of 2012. For comparison’s sake, there were 23 gigawatt hours’ worth of lithium ion batteries made for consumer electronics, like cell phones, over the same period (1 gigawatt is equal to 1,000 megawatts).

Tesla’s current costs for lithium ion batteries (supplied by Panasonic) are around $200 – $300 per kwh. If the factory could reduce those battery costs by 30 percent, prices could drop to $140 – $210 per kWh. Navigant analyst, Sam Jaffe estimates that battery packs will end up at around $180 per kWh. “They are definitely setting the bar for battery costs,” Jaffe said. “By 2020 every other battery manufacturer will have to get close to or beat the sub-$200 per kwh number that Tesla will be able to accomplish if they meet their goals.”

This is not to say that lithium ion batteries are the only option for energy storage- especially when it comes to renewables. A diverse portfolio of choices, including technologies like compressed air caverns and hydro pumping to sodium-sulfur batteries, will play an important role in the application of storage for both utility-scale and distributed generation energy storage.

Location, location, location

Tesla has not yet decided on a location for the GigaFactory, and many states are vying for the economic benefits of this development. The automaker is looking in Arizona, Nevada, New Mexico, and Texas, but at least two of these states (Texas and Arizona) are at odds with the company over its direct-to-customer selling strategy.

Because of long-standing state laws protecting and regulating auto dealerships (and the lobbying power of the Automobile Dealers Association), Tesla cannot sell directly to consumers in these states, or New Jersey, the latest state to effectively ban Tesla under their current business model.

Instead, Tesla can only showcase vehicles at “galleries” and state law prohibits employees from discussing the price or any logistical aspect of acquiring the car. Prospective buyers must order the cars from California, which are “delivered in a truck with no company markings, per Texas law, and customers even have to unwrap their new automobiles themselves, because the law prohibits Tesla’s in-state representatives from doing, saying or touching anything related to selling or delivering cars.”

Ironically in a letter attempting to woo Tesla to the Lone Star State, Rep. Jason Villalba stated, “I can attest to you that there is no better state in the Union to begin, grow and expand a new and thriving business such as Tesla Motors.” Tesla begs to differ.

According to Diarmuid O’Connell, Tesla’s Vice President of Business Development, “The issue of where we do business is in some ways inextricably linked to where we sell our cars. If Texas wants to reconsider its position on Tesla selling directly in Texas, it certainly couldn’t hurt. In an interview in April with The Texas Tribune, Tesla CEO Elon Musk went as far to call the state’s auto franchise laws “very un-Texan.”

Too late for a Texas GigaFactory?

During the last Texas legislative session, House Bill 3351 introduced rules to allow manufacturers of 100 percent electric cars to sell directly to consumers, but it did not pass. Arizona is also lobbying aggressively for the factory and lawmakers are pushing legislation that would allow Tesla to sell direct. And automakers in Ohio just struck a deal with Tesla easing the battle over its direct-to-consumer retailing model. Governor Perry has voiced support for HB 3351 and went so far as to admit in a recent Fox Business Today interview that Texas needs to revisit its “antiquated rules” prohibiting Tesla from selling electric vehicles in the state.

Perhaps Texas legislators should reevaluate their principles for the upcoming legislative session. Waiting till next year may be too late to sweeten the deal for a Texas GigaFactory, although it does appear that Texas leaders are making moves behind closed doors to secure this project.

The Texas Tribune reported that a secret meeting took place on Wednesday, where Tesla executives met with leaders in San Antonio, causing further speculation about the lone star state’s chance of landing this coveted project. Either way, Texas leaders should act fast or risk losing the opportunity for thousands of jobs in Texas. As Tesla breaks down many barriers with its innovative products and business models, it will be met with resistance. But the agility of the company to overcome the odds has already been proven.

Article by Marita Mirzatuny, appearing courtesy EDF Blog.



March 31, 2014 0 comment
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Big Hurdle for Tesla: Building a Charging Network in China

Big Hurdle for Tesla: Building a Charging Network in China

written by

I wrote the piece below for Automobile and Parts, a Chinese publication.  Since I wrote it news came out that the State Grid will allow private investment in charging networks.  But no timeline was mentioned.  And no news regarding whether South Grid will follow suit.  Allowing private investment offers a sliver of hope for Tesla. But as always in China, implementation will be the tricky part.

Tesla’s business model – a non-automotive company that has successfully produced and marketed a pure electric luxury vehicle – seems to be much admired by some parties in China. And despite disputes regarding its distribution model with automotive dealers in some states in the U.S., Tesla has sold well here.  Based on that popularity, Tesla founder Elon Musk and his representatives in China are confidently predicting that Tesla will sell around 5,000 Model S electric sedans in China in 2014 and as many as 22,000 in 2015.

Those sales numbers are based on an underestimation of the difficulties Tesla will face in China, however, and won’t be achieved. Furthermore, Tesla will likely have trouble making a profit in China if the costs and difficulty of building out a distribution network and charging network are considered.

First, there is the price of the car itself. Tesla made a big deal out of the fact that it will charge “only” 734,000 RMB for a Model S sedan with an 85 kWh battery. That is the cost of the vehicle plus shipping and handling, customs and duties, and a value-added tax.  Tesla’s electric vehicles come with several optional battery sizes; larger batteries cost more but provide more range.  A car with an 85kWh battery provides about 300 miles per charge.

Tesla says it goal is to make the same level of profit per car no matter where it is sold.  Even if Tesla isn’t making more profit, however, the price for the Model S is still more expensive then the majority of luxury cars sold in China. That price is not set in stone, by the way.  Tesla will adjust the cost of the Model S in China when the USD/RMB exchange rate fluctuates, according to a Tesla spokesperson. Would someone prefer to buy an electric vehicle, even a Tesla, over say a similarly-priced gasoline-powered Porsche 911? Only a few would.

If someone does want to buy a Tesla in China, they first have to find a Tesla store. Tesla’s distribution model relies on company-owned stores rather than franchised dealerships.  In the U.S., cars are sold through dealerships owned by individuals rather than the automakers themselves. That has made Tesla the target of a handful of lawsuits here in the U.S. by the owners of dealerships. Those lawsuits claim Tesla violated the state laws governing auto dealer ownership (each of the 50 states in the U.S. has its own auto franchise law.).

In China, Tesla may not run into such lawsuits, but will need to build out a nationwide Tesla store network to even begin to reach the sales numbers it predicts.

So far, it has one store, in Beijing. Elon Musk has said Tesla will have stores or service centers in six metropolitan areas in China by the end of 2014. Let’s say Tesla succeeds in opening those stores by then. Will each of those stores manage to sell nearly 1,000 units each? Let’s assume they will. To achieve sales of 22,000 in 2015, Tesla will have to quadruple the number of stores it has in China, and each will have to sell nearly 1,000 units each.

I think distribution i.e. a network of stores will be the easy element of achieving Tesla’s ambitions in China, however. I believe the biggest barrier to its success will be its inability to construct a nationwide charging network. Rather than rely on public charging, Tesla constructs a network of Superchargers that only owners of its EVs can use. To date it has installed 74 Supercharger stations in North America. Each station costs US$150,000 to build, according to a Tesla spokesperson. This does not include maintenance or monthly energy costs. “We cannot yet speak to cost of location of Supercharger stations in China,” said the spokesperson. “Elon plans to visit in March and more details will be unveiled at that time.”

Elon may find that building Supercharger stations in China will be not only expensive, but very difficult. For one, each station charges at 120kw. “That is more power than an electric bus consumes,” exclaimed an executive working on EV charging networks at a foreign automaker in China.

He also asked if Tesla has approval from the State Grid and the Southern Grid , China’s two largest utilities, to construct the Supercharger network. That is, are they willing to provide the power? What’s in it for them? Then there are the Supercharger stations themselves, said the executive. Have they been approved by Chinese regulators?

Elon Musk has succeeded when others have thought he would fail, and his self-confidence is well-earned. He founded and sold Pay Pal, an online money transfer service, for $1.5 billion. Musk also founded and still runs SpaceX, a company which designs and launches rockets. In China, however, he may meet his match.

Article by Alysha Webb, a freelance automotive journalist and founder of ChinaEV Blog.



March 20, 2014 1 comment
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Chinese Eco-mark Lawsuit Ends Well for Tesla

Chinese Eco-mark Lawsuit Ends Well for Tesla

written by Eric Lane

A previous post reported on Tesla’s Chinese trademark problem. Apparently, a businessman named Zhan Baosheng had registered the TESLA (or “Te Si La” transliterated) trademark in China, blocking the American automaker from using the mark there.

Mr. Zhan was also operating a web site using the Tesla China domain (www.teslamotors.com.cn), and operating a Tesla-branded account on the Chinese microblog site Sina Weibo.

As part of a recent press release announcing its plan for growth in China the company said it resolved the trademark issue. More particularly, Tesla obtained a court decision granting it the right to use the TESLA mark in China (see the story here on Green Car Reports and covered by Clean Technica here).

Veronica Wu, Tesla’s vice president for China operations, said the company had won this right without the need to pay Mr. Zhan (who had apparently hinted that he would sell the trademark for millions of dollars). According to Wu, “we went to court and won.”

Though technically Zhan may have been the first user of the TESLA mark in China, the court decision seems right because his apparent high asking price for the mark signals bad faith on his part and that his use may not have been bona fide.

This decision bodes well for American and other non-Chinese companies who may need to protect and enforce their intellectual property rights against local competitors in China.

The highest profile cleantech IP dispute in China is the trade secrets and copyright case between American Superconductor and Chinese turbine manufacturer Sinovel, which made it all the way to, and is (as far as I know) still pending in, the Chinese Supreme Court.

Eric Lane is a patent and trademark attorney and the Principal at Green Patent Law in San Diego and the author of Green Patent Blog. Mr. Lane can be reached at (619) 818-6043 and at elane@greenpatentlaw.com.



March 5, 2014 0 comment
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Bullish on Tesla Motors?

Bullish on Tesla Motors?

written by 2GreenEnergy

It seems that almost every day, there is news, most of it incredibly good, about what Tesla, driven by charismatic entrepreneur Elon Musk, is up to. Recently, the news is the “Gigafactory,” to be located somewhere in the U.S. southwest, in which the company plans to build huge volumes of low-cost batteries.

When I sold the ExxonMobil that my father bequeathed me, I considered buying stock, which, at the time, was trading under $30. As of this morning, I would have made almost nine times my money.

The interesting news here, however, isn’t crying about the past, it’s the lack of predictability about the future. Wedbush sees a $295 target for 2017; Bank of America Merrill Lynch reaffirms its predicted crash to $65. Someone’s going to be far more embarrassed here than the folks who picked the Denver Broncos to win the Superbowl.



February 27, 2014 0 comment
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China Lags World in EV Tech, Needs to Focus on Components

written by

Anyone who believes that the Chinese government and other players in the policy-making process have complete agreement on the readiness of China’s domestic companies to produce globally-competitive electric vehicles, or in how to bring them to that level, need only read the diverse commentaries that appear in the Chinese press to know that is not true.

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February 3, 2014 0 comment
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Understanding the Proper Value of Tesla Motors

written by Walter Wang

Here’s a good article, selected from the ton of them I see, on how to analyze the value of Tesla Motors. The author argues, as many others have before, that those who ridicule Tesla’s astronomical market cap are missing the point that Tesla is more than just a “car company.”

For what it’s worth, I agree – for all the reasons laid

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January 21, 2014 0 comment
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Shift Happens

written by Walter Wang

When I heard in late December that Bill McKibben had written another article for Rolling Stone, I was thrilled. His July 2012 piece for that publication — “Global Warming’s Terrifying Math” — started a firestorm. McKibben had determined that the public was losing interest in battling climate change because there was no clear enemy. With no titanic

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January 7, 2014 0 comment
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Small All-Electric Mercedes Heading to U.S. Early Next Year

written by Walter Wang

Mercedes-Benz unveiled its forthcoming B-Class electric vehicle at the 2013 New York Auto Show in March. The car is promised for an early-2014 release, when it will represent the first battery-powered Mercedes to hit the market.

The B-Class is a small, all-electric hatchback with a

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November 8, 2013 0 comment
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New Optimism for a Cleantech Future

written by Walter Wang

If you’ve not been paying much attention to cleantech in the last little while, it’s time to sit up and take notice.

Because post-Solyndra, cleantech has been quietly gaining momentum.

We had the chance to take a close look at the fundamentals of cleantech over the last two months in co-authoring a new (and free!) 38-page research report in conjunction with Oakland, Calif.-based advocacy group As You Sow and the Responsible Endowments Coalition of Brooklyn, New York.

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October 25, 2013 0 comment
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