EVs

[Rich]

I wonder if, one day, they'll leverage in the Starlink infrastructure for the backhaul to the Tesla network, and for in-car consumers' devices. Good low latency bandwidth, 100% coverage, no need for 3rd-party carriers.

Probably all part of the Musk grand plan.  I read or heard Musk say that the electrical products they make will be a part of the Mars business, since ICE can't operate there.

[AutobahnSHO]

It's true, though. They train neural networks to control a lot of these systems. Their code doesn't actually have formal descriptions of what street signs or pedestrians look like. It's all learned datasets.

Oh I get that, but is it truly more than very complex if/then analytics??

[Morris Minor]

There is money in transmission flushes, engine oil & filter changes: parts & service operations are good profit makers. But that goes away with EVs.

About 150 U.S. Cadillac Dealers to Exit Brand, Rather Than Sell Electric Cars
About 17% of Cadillac's 880 U.S. dealerships decide against spending for necessary upgrades"


About 150 General Motors Co. dealers have decided to part ways with Cadillac, rather than invest in costly upgrades required to sell electric cars, according to people familiar with the plans, indicating some retailers are skeptical about pivoting to battery-powered vehicles.

GM recently gave Cadillac dealers a choice: Accept a buyout offer to exit from the brand or spend roughly $200,000 on dealership upgrades—including charging stations and repair tools—to get their stores ready to sell electric vehicles, these people said."

More:
https://www.wsj.com/articles/about-150-u-s-cadillac-dealers-to-exit-brand-rather-than-sell-electric-cars-11607111494

[AutobahnSHO]

There is money in transmission flushes, engine oil & filter changes: parts & service operations are good profit makers. But that goes away with EVs.

There is an old old story by Ayn Rand where the dystopian future is all controlled and running on 1800s tech. A guy discovers a lightbulb in a cave (abandoned subway). Leaders of the civilization try to punish and quiet him, he runs away. The discovery would disrupt their entire civilization- what would all the candle makers do for work????...

[Soup DeVille]

There is money in transmission flushes, engine oil & filter changes: parts & service operations are good profit makers. But that goes away with EVs.

About 150 U.S. Cadillac Dealers to Exit Brand, Rather Than Sell Electric Cars
About 17% of Cadillac's 880 U.S. dealerships decide against spending for necessary upgrades"


About 150 General Motors Co. dealers have decided to part ways with Cadillac, rather than invest in costly upgrades required to sell electric cars, according to people familiar with the plans, indicating some retailers are skeptical about pivoting to battery-powered vehicles.

GM recently gave Cadillac dealers a choice: Accept a buyout offer to exit from the brand or spend roughly $200,000 on dealership upgrades—including charging stations and repair tools—to get their stores ready to sell electric vehicles, these people said."

More:
https://www.wsj.com/articles/about-150-u-s-cadillac-dealers-to-exit-brand-rather-than-sell-electric-cars-11607111494

$200,000 seems like a relatively small amount of capital for a dealership. Sure, its a substantial cost; but such outlays are going to be necessary for any business from time to time.

GM had always forced dealerships to do things like upgrade their showrooms every once in a while; and surely those renovations run into 6 digits.

[shp4man]

Newsflash!!!
Electric cars break! Story at 6!

[Galaxy]

Newsflash!!!
Electric cars break! Story at 6!

But the overall reliabiliy should be in a different league.

My Stihl gasoline chainsaw  is a quality piece, however it gets used maybe once or twice a year, and it is then always a bit of a struggle to get a combustion engine running after that time. On the other hand, I have some electric tools that have not seen use in 5 years that just.......work. Immediately. With no effort. 

[CaminoRacer]

$200,000 seems like a relatively small amount of capital for a dealership. Sure, its a substantial cost; but such outlays are going to be necessary for any business from time to time.

GM had always forced dealerships to do things like upgrade their showrooms every once in a while; and surely those renovations run into 6 digits.

Seems like these Cadillac dealerships may have been on the way out already, this is just an excuse to finally call it quits.

[AutobahnSHO]

But the overall reliabiliy should be in a different league.

My Stihl gasoline chainsaw  is a quality piece, however it gets used maybe once or twice a year, and it is then always a bit of a struggle to get a combustion engine running after that time. On the other hand, I have some electric tools that have not seen use in 5 years that just.......work. Immediately. With no effort. 

Yup, we have a battery lawn mower, trimmer, and blower now.

[Morris Minor]

$200,000 seems like a relatively small amount of capital for a dealership. Sure, its a substantial cost; but such outlays are going to be necessary for any business from time to time.

GM had always forced dealerships to do things like upgrade their showrooms every once in a while; and surely those renovations run into 6 digits.

You're right. My guess is that the 17% were looking for an excuse to bail anyway. I was in an Infiniti dealership a couple of years ago and the place was chaos during a mandated, and major remodel. It was costing the franchise millions.
It looked great when it was finished - the only problem was that Infiniti decided to stop making & supplying them with cars that anyone wanted to buy.

[cawimmer430]

VW Says ID.3 Software Issues Are Now A Thing Of The Past

The Volkswagen ID.3 battery-electric hatchback is arguably the carmaker's most important new model in decades. However, its ascent from concept to production form has not been uneventful, leaving a trail of casualties in its wake.

The German brand went as far as to replace its software division boss over serious software issues that plagued the ID.3 in pre-production. VW then went on to build the EV despite some of these issues persisting – they actually started deliveries with certain features disabled.

Well, all that changes now as VW is finally ready to deliver the ID.3 to European buyers with fully functioning software, spokespersons for the brand told Autonews Europe.

Meanwhile, ID.3 models that have already been delivered to customers will be recalled and fixed. One such issue that's been resolved is the augmented reality head-up display function, which will now work as planned, projecting navigation directions onto the road ahead via the windshield.

However, in order to get things sorted, owners will be expected to leave their vehicles overnight at various VW workshops, due to the software update's considerable size. As compensation, VW will offer ID.3 customers (First Movers) incentives such as fewer monthly leasing payments.

"We have seen with our First Movers they are proud of their car and they serve as brand ambassadors. The happier we can make them, the greater the chance they recommend the vehicle to their friends and acquaintances," stated a VW source.

The VW ID.3 will not be sold in the U.S. as it has been deemed to small. Instead, U.S. buyers will get the ID.4, built in Chattanooga, Tennessee.


Link: https://www.carscoops.com/2020/12/vw-says-id-3-software-issues-are-now-a-thing-of-the-past/

[SJ_GTI]

Tesla raising another 5 billion in the equity markets. 

Do they still carry debt on their balance sheet? If so, with the crazy valuation it might make sense to keep raising equity to pay off the short/mid/long term dent. Its basically free money.

[r0tor]

Tesla raising another 5 billion in the equity markets. 

Do they still carry debt on their balance sheet? If so, with the crazy valuation it might make sense to keep raising equity to pay off the short/mid/long term dent. Its basically free money.

Absolutely makes sense

[Morris Minor]

Musk has joined the exodus from California. Very publicly.

It makes sense, many people are fleeing to more accommodating states, but I think being so public about it is a bit of a dick move in terms of the employees he's left stuck behind. Bad for morale.

When one of my wife's clients decided they couldn't stand CA fiscal & regulatory lunacy any more, they moved everybody lock stock & barrel, not just the executive team: generous relocation packages for all & decent severance for those who decided to stay.

[SJ_GTI]

The "OMG no income tax in Texas!" thing seems weird to me. As a business, we have to file a "State Franchise Tax" return every year there. To my non-tax expert eyes it looks a lot like an income tax return. The firm that we use to fill out all of our state income tax returns and our federal income tax return fills out the "franchise" tax return for us (they do not handle our sales & use tax reporting, that we do ourselves).

[r0tor]

This is just a bad response to him seeing other large companies getting states to roll over and offer all kinds of incentives to get their business in their state - like what happened with the Amazon relocation.

This is just bad for everyone outside of the company getting benefits

[Laconian]

Musk has been acting very redpilled lately so I'm not really surprised.

I'm willing to bet he spends 49.9% of his time in California and using a private jet to commute from his tax advantaged residence

[r0tor]

Musk has been acting very redpilled lately so I'm not really surprised.

I'm willing to bet he spends 49.9% of his time in California and using a private jet to commute from his tax advantaged residence

Maybe he has a secret hyperloop tunnel

[WookieOnRitalin]

The "OMG no income tax in Texas!" thing seems weird to me. As a business, we have to file a "State Franchise Tax" return every year there. To my non-tax expert eyes it looks a lot like an income tax return. The firm that we use to fill out all of our state income tax returns and our federal income tax return fills out the "franchise" tax return for us (they do not handle our sales & use tax reporting, that we do ourselves).

Our F&E tax is almost nothing each year in TN (another state with no income tax). As an LLC, we pay very little each year in taxes to the state. I think we pay  less than $1000 a year combining our F&E, Sales and Use, Business Tax, and LLC renewal. Our memberships are not subject to sales tax in TN as they are covered under "services" so we do not pay any high sales tax except what we sell in terms of small items (tshirts, bars, stickers, drinks, etc).

Having a business here has been a joy outside of the shutdown rules early on because of the county we were in unfortunately.

Shapiro, Rogan, and now Musk. Why anyone stays in CA is beyond me.

[Morris Minor]

The importance of having different fiscal, legal & regulatory environments in the US states is underestimated in my view, and often not understood. Local governments within states too have taxing authority.
The competition, and the fact that people can vote with their feet, helps moderate the dark instincts of the loonies. Eventually things self-correct when there's no one left to pay the bills - even California.

[Morris Minor]

Musk has joined the exodus from California. Very publicly.

It makes sense, many people are fleeing to more accommodating states, but I think being so public about it is a bit of a dick move in terms of the employees he's left stuck behind. Bad for morale.

When one of my wife's clients decided they couldn't stand CA fiscal & regulatory lunacy any more, they moved everybody lock stock & barrel, not just the executive team: generous relocation packages for all & decent severance for those who decided to stay.

I found this quite compelling.
(Am I the only one who thinks there's a hint of a Kim Jong-Un-look about him this days?)
https://youtu.be/U87G_LbTeoY

[CaminoRacer]

Shapiro, Rogan, and now Musk. Why anyone stays in CA is beyond me.

I was born in CA but I don't want to move back there. That being said - Shapiro, Rogan, and Musk are all dramatic attention seekers in their own ways, and their example probably means very little to the average CA resident or future resident.

[Laconian]

Musk is a multi-multi-multi-billionaire and Rogan's a multi-multi-multi millionaire. You don't need motives other than mega tax savings.

[AutobahnSHO]

Why anyone stays in CA is beyond me.

Outside of the cities it's gorgeous, plus weather is quite nice!

[cawimmer430]

I found this quite compelling.
(Am I the only one who thinks there's a hint of a Kim Jong-Un-look about him this days?)
https://youtu.be/U87G_LbTeoY

This reminds me of those old Marlboro commercials, but rewritten for the car world.


COME TO WHERE THE OIL IS. COME TO TEXAS COUNTRY. 

[cawimmer430]

My new best friend.   

Sadly it's a pay article on WSJ...




Link: https://www.wsj.com/articles/toyotas-chief-says-electric-vehicles-are-overhyped-11608196665

[SJ_GTI]

Toyota world takeover is imminent. 

[MX793]

My new best friend.   

Sadly it's a pay article on WSJ...




Link: https://www.wsj.com/articles/toyotas-chief-says-electric-vehicles-are-overhyped-11608196665

I find it funny that companies that are behind the curve for a given technology all make statements about how it's "overhyped".  You won't see Toyota claim hybrids, which are a compromised half step to EVs, are overhyped because Toyota has long been a leader there.

[MrH]

You think Toyota is behind the curve? 

Hybrids and EVs are two very different things, with different cost structures, infrastructure needs, etc.

[Morris Minor]

An EV standing on its own merits may be overhyped.
An EV with a gale force regulatory tailwind behind it is a very compelling choice.