In physics, a flywheel is a rotating disk that stores kinetic energy in its momentum and then spins that energy out to a nearby engine. In the context of business, as the flywheel rotates, it increases output or revenue without increasing input or cost.
Tesla, best known for being an all-electric car company, is, well, much more than just a car company. It has disrupted a legacy industry with a new business model and consumer approach. But Tesla didn’t stop there. It expanded to new industries, grabbed a stake in key infrastructure sectors, worked to decentralize power distribution, and now offers a new alternative to today’s utility industry. Tesla’s end products are state-of-the-technological-art — all of which interconnect in a flywheel that incites consumer allegiance across multiple sectors and keeps those consumers coming back to Tesla for more — in a flywheel effect, essentially.
Tesla’s mission statement is: “to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” Today, Tesla builds not only all-electric vehicles, but also scalable clean energy generation and storage products, all part of a business model that prods the world to stop relying on fossil fuels and move towards a zero-emission future.
The intersecting notions of a flywheel in this article were inspired by Post Corona — From Crisis to Opportunity, by Scott Galloway (2020). The book draws upon the metaphor to suggest that, when today’s consumers are introduced to one product within a brand, they are more likely to purchase other products within that same brand. Companies today, Galloway explains, should be focusing on the reciprocal nature of consumerism so that the lure of one product leads consumers to other, different products made by the same company.
In the book, the author, an NYU Stern School of Business professor, unpacks how “tech” used to be a “narrowly defined industry consisting of companies that made computer hardware and software, which companies in ‘other’ industries bought for their business.” No longer is tech so specifically grounded. As an example, Galloway explains that combined tech/auto company Tesla appeals “through every aspect of its strategy: pricing, production, marketing, and even its leadership.”
In a February regulatory filing, Tesla acknowledged CEO Elon Musk’s numerous commitments. “Although Mr. Musk spends significant time with Tesla and is highly active in our management, he does not devote his full time and attention to Tesla,” the filing indicated. It described Musk’s leadership in SpaceX and “other emerging technology ventures.” Musk’s influence extends beyond Tesla to a company that merges the human brain with computers, Neuralink, along with a tunnel-building firm, The Boring Company.
In essence, the Tesla flywheel concept suggests that a person who purchases a Tesla Model 3 is more likely to add range at a Tesla Supercharger and eat at a Tesla restaurant. Later, when growing into other renewable energy options, that same consumer is more likely to choose Tesla Solar and Powerwalls over a competitor’s offerings. And who knows what else?
The Tesla flywheel concept makes the company very appealing to some investors. In fact, Canaccord Genuity estimates that Tesla will reach $8 billion in revenue by 2025.
Tesla Energy Storage alongside Use
The Tesla company website acknowledges that “electric cars, batteries, and renewable energy generation and storage already exist independently, but when combined, they become even more powerful.” That confluence is the essence of the Tesla flywheel.
EVs and other renewable energy sources rely on batteries, and Tesla has refused to relinquish its full autonomy as it grows into different products and sectors. As elsewhere, Tesla is planning for its own battery production in China and has been advertising for technicians for its Shanghai facility in recent months, part of better per unit profitability in the region.
The Tesla Energy division provides stationary storage batteries for residential (Powerwall), commercial (Powerpack), and utility-scale (Megapack) applications. Musk has noted on several occasions that Tesla Energy could someday become bigger than Tesla’s automobile business.
Storage is not just about enabling renewable energy — it’s also an important tool for ensuring the reliability of the grid, smoothing out peaks in demand for power, and preventing sudden surges that can overload local distribution systems.
Tesla’s Core Electric Vehicle Catalog
New regulations on safety and vehicle emissions, technological advances, and shifting customer expectations are bringing electric vehicles (EVs) into the consumer transportation mainstream. The Tesla flywheel is evident within its EV business model, which is based on 3 levels of consumer service: selling, servicing, and charging its electric vehicles, which maintains control over sales and service.
The Washington Post says that Musk’s “impulsive leadership” has vaulted Tesla from its initial entry “as an upstart electric vehicle pioneer to the world’s most valuable automaker.” Fortune named him its 2020 Businessperson of the Year.
An international network of Tesla-owned showrooms and galleries, mostly in urban centers, is based on direct sales and service, not franchised dealerships. The showrooms are complemented by internet sales as well as Service Plus centers. In some areas, Tesla mobile technicians make house calls, and service can even occasionally be delivered remotely — without ever physically touching the car.
Tesla has created its own network of “supercharger stations” where drivers can charge their Tesla vehicles in about 30 minutes using a proprietary network. The highly anticipated “Full Self-Driving” suite will be another way of allowing longer and safer road trips.
Future additions to the Tesla catalog include the Cybertruck, an all-electric pickup truck with angular proportions and stainless steel exoskeleton, and a Semi, which will invigorate long-haul trucking with more benefits for drivers and transit companies.
The Tesla Gigafactory Flywheel Phenomenon
Tesla’s has 4 “gigafactories” (‘giga’ stems from gigawatt-hour, or GWh, here):
Giga Nevada — in Sparks, near Reno, Nevada;
the Solar City Gigafactory at Buffalo, New York (Giga Buffalo? Gigafactory 2?);
Giga Shanghai — the 2019 Tesla plant in Shanghai, China; and,
Giga Berlin — the new European Tesla gigafactory, which is being constructed in Grünheide, near Berlin, Germany.
Separate from their scale, Tesla’s organization of production reverses much current conventional wisdom regarding production geography. For example, Tesla’s automotive facility in Fremont, California, reconcentrates manufacturing onsite as in-house brand componentry, especially heavy parts, or by requiring distant global suppliers to relocate in proximity to the main manufacturing plant.
As an electric vehicle producer, Tesla’s production and logistics infrastructures are important in meeting greenhouse gas mitigation and the reduction of global warming.
Tesla’s deployment of Big Data analytics, artificial intelligence (AI), and predictive management are important. Gigafactory logistics contribute to production and distribution efficiency. Company effectiveness is a primer for all future industry and services as they seek to minimize time-management issues. Methods of reduction of wasteful energy usage become evident through dataset analysis.
Tesla’s global reach is extending to Europe and Asia. Tesla Motors India and Energy Private Limited was incorporated on January 8, 2021. Registered in Bangalore — the country’s technology hub — the company would start with sales and then potentially move on to assembly and manufacturing, Nitin Gadkari, India’s transport minister, said. Also see:
The Long Reach of Tesla’s Flywheel
Tesla solar customers from now on will buy power systems that feed exclusively to Powerwalls. Powerwalls will interface only between the customer’s utility meter and house main breaker panel, enabling a relatively simple install and seamless whole house backup during utility dropouts, according to Musk.
Updates reflect customer feedback — many people thought their battery-less solar system would work in a blackout, only to be disappointed when it didn’t. Moreover, Tesla consumers seemed eager to gain protection against blackouts, so streamlining the offerings into paired technologies made sense — and deepened the Tesla flywheel effect.
Texas lawmakers have officially requested that Tesla delay its planned Robotaxi launch in Austin by a few months due to a new law being implemented.
It’s a Godsend for Elon Musk.
As we previously reported, Tesla’s planned Robotaxi launch in Austin, Texas, now “tentatively” scheduled for June 22, is a moving of the goal post for Tesla.
CEO Elon Musk himself has previously described what Tesla plans to launch as “not really self-driving”, but the CEO is using the new strategy as a way to claim a win in autonomous driving after years of missed deadlines and failed promises.
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Since last year, Musk has discussed launching the service in Austin this summer. For the last few months, he had indicated that it would happen in June, with the June 22nd date being officially shared last week.
For Musk to claim his win, Tesla would need to stick to the deadline, which would be a first for Tesla when it comes to its autonomous driving roadmap.
However, Texas lawmakers have just given Tesla an out.
A group of seven Austin-based lawmakers in the Texas Senate and House have signed a letter asking Tesla to delay its launch until September:
As members of the Austin delegation in the Texas Senate and Texas House of Representatives, we are formally requesting that Tesla delay autonomous robotaxi operations until the new law takes effect on September I, 2025. We believe this is in the best interest of both public safety and building public trust in Tesla’s operations. If Tesla opts to proceed with the June 22, 2025, launch date, we request that you respond to this letter with detailed information demonstrating that Tesla will be compliant with the new law upon the launch of driverless operations in Austin.
Texas has had very few regulations affecting autonomous driving, and the new law maintains this status quo. However, it also introduces requirements for following federal guidelines, and the latest version of the bill references SAE autonomous driving levels.
It doesn’t sound like the lawmakers are forcing Tesla to delay the launch for now. They are more politely asking to delay until the new framework is in place.
here’s the full letter from the Texas lawmakers:
Electrek’s Take
This appears to be a Godsend for Tesla and Musk. Even with the significantly reduced scope of the program compared to what Tesla has promised for years, and the fact that Waymo has been doing exactly what Tesla is trying to accomplish for years, it appears that Tesla is having difficulties delivering on that.
As we previously reported, testing without a safety driver has been extremely limited based on sightings, and it appears that Tesla has simply relocated the “safety driver” to the passenger seat with a kill switch for optics.
Now, Tesla can claim that it has to delay the launch to please the regulators rather than because it is not ready.
There’s also NHTSA, which put a deadline for today for Tesla to answer a bunch of questions about its planned Robotaxi launch in Austin. So, that could also play a role.
Now, let’s see if Tesla takes the out or decides to move forward. For everyone’s sake, I hope they take the out.
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Rove, a company founded to improve the EV charging experience by building “full service” EV charging centers with access to amenities you can use while charging, has just broken ground on its 2nd charging center, to be open in October/November of this year.
Rove’s first charging center opened last October, and features 40 DC charging stalls, with 28 V4 NACS/Tesla Superchargers and 12 CCS (2 of the CCS chargers also include a CHAdeMO cable, for the few cars out there that still need one of those). 2 of the CCS chargers are 350kW, with the rest capable of 184kW.
The concept doesn’t end there though – in addition to being able to charge every type of EV out there (well, except this writer’s Tesla Roadster, which has no DC charging capability), it also includes a lot of amenities that EV drivers don’t often get at their charging stops.
While lots of charging stations are located in areas like malls with nearby shops to go to, the actual charging area itself is usually just the chargers and nothing else, without the convenience items that you often find at a gas station.
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So, Rove includes all of those and more. It’s got air for your tires, a car vacuum, windshield cleaner stations, a canopy to keep you and your car shaded (and to generate electricity for the site with solar panels), and… get this… trash cans!
In addition, there’s also a 24/7 lounge on site, with security, clean bathrooms, indoor and outdoor seating (and standing tables, so you can stretch your legs after a drive), and wifi.
And, finally, Rove has partnered with upscale SoCal grocery chain Gelson’s to provide a grocery store experience – somewhere between the gas station convenience store and a full, fancy Gelson’s.
The chain calls these smaller stores “ReCharge by Gelson’s,” and they include an area for hot food (pizza and sandwiches), frozen food (like single-serving ice cream treats, an absolute necessity on the road, at least according to me), and even fresh sushi. The store also includes several convenience items, such that visitors can conceivably combine a charging stop with a small grocery shopping trip at the same time. Or, for those who live in the nearby apartments, it’s another walkable grocery stop.
The Santa Ana site has been operating for the better part of a year now, and has hosted several community events as well – which has been a great place to go EV spotting, as each time I’ve been there, I’ve seen an incredible variety of cars (including some of the newest EVs – that’s Southern California for you).
Now, Rove is making moves to open its second station in nearby Costa Mesa, with much the same setup of its first station.
The new site is at 2666 Harbor Blvd in Costa Mesa, about a mile South of the 405, between Adams and Merrimac. It’s a bit further from the freeway than the Santa Ana site, which is only a couple hundred yards away, but Harbor Blvd is a large street with a lot of traffic, and nearby several freeways (the 405, 55 and 73).
The building is shared with a Goodwill, so you might perhaps be able to even go clothes shopping at this one, if you’re all full up on groceries.
Costa Mesa will include mostly the same setup of chargers and amenities as the Santa Ana site, except it won’t have the car wash and small turf-covered dog area that they have in Santa Ana. It will also have solar and battery storage on site, just like Santa Ana.
While the last charger took about a year to open after its groundbreaking, Rove thinks it can get this site ready much more quickly. It expects to have it open somewhere around October/November, a pretty quick timeline given groundbreaking just happened today in June.
The groundbreaking was attended by Rove CEO Bill Reid and representatives from Gelson’s and the city of Costa Mesa, who posed for the ceremonial “shovel photo.”
We also got a short tour of the site showing us… well, nothing yet except some holes where cables will go and the inside of a building. But hey, at least the building is already up, and doesn’t need to be built like the last one did.
Rove is planning several other sites around Southern California, with locations identified in Corona, Torrance and Long Beach so far. Each will have slightly different amenities (like larger parking spots in Corona, to accommodate up to class 6 vehicles), and will open gradually over the coming years (the company is still a fairly small team, so give them time).
Electrek’s Take
I love what Rove is doing, and I think there’s a lot of room for locations like this in the EV charging space, and I think Rove is doing it as right as anyone else is. That’s why I like to cover them whenever they come up.
There’s a lot of talk about EV charging being difficult, but for those of us who have taken EVs on roadtrips, it’s often a pleasant experience anyway. As long as there are clean chargers with something to do nearby, you really don’t feel restricted by the time you spend charging.
For example, I went on a 2,200 mile roadtrip with no prep, and never felt like I had to wait on my car to charge. This is because I stopped at some excellent charging stops (shoutout to my favorite charging stop at the Supercharger in Harrisburg, Oregon, run by Olsen Run Winery) which really improved the process.
The thing is, EV charging could be such an opportunity for businesses to offer services to captive customers who are happy to have something to do, and often won’t mind spending a few bucks anyway. There are some businesses who have already learned to take advantage of this, but it’s been a bit of a patchwork so far.
Rove shows how a business could provide all of these services under one roof. And we think this concept would work in a wide variety of areas. Gas stations already have something similar, with Buc-ee’s style travel stops, and people enjoy stopping at those even though they’re not waiting for their car to fill up. So why not offer something similar for EVs, and kill off all the complaints about EV charging being somehow inferior or weird or different?
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Nissan is betting big on solid-state batteries to help power up a comeback. The automaker says the next-gen battery tech will be a “game-changer for EVs,” promising more range, faster charging, and lower costs. Nissan just confirmed its first EV with solid-state batteries is on track, but it may trail Toyota and Volkswagen to market.
When will Nissan launch its first solid-state battery EV?
In 2021, Nissan announced plans to launch its first EV with solid-state batteries by early 2029. The company said at the time that it was involved in “wide-ranging research and development,” including at the molecular level.
According to the latest update, it could be here slightly ahead of schedule. Nissan’s director of product planning in Europe, Christop Ambland, confirmed with Auto Express, saying, “Yes, we will be ready for SSB (solid-state batteries) in 2028.”
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Ambland added that Nissan “can’t rush the process” and wants to ensure the new battery tech is “reliable, and ready to meet our customers’ expectations.”
Nissan believes, like many, that solid-state EV batteries can increase energy density by up to 30% compared to traditional lithium-ion batteries, at a much lower cost.
Nissan N7 electric sedan (Source: Dongfeng Nissan)
It also said they offer the potential to cut charging times by one-third. In October, Nissan unveiled the Hyper Force EV concept, an electric supercar (that looks a bit like the GT-R meshed with a Tesla Cybertruck), boasting over 1,300 hp (1,000 kW).
Nissan hinted the new battery tech could be used to power its upcoming electric sports cars, like an electric GT-R. Although it’s blurred the Hyper Force concept wore a GT-R logo up front.
Nissan Hyper Force EV concept (Source: Nissan)
It will initially be used for EVs, but Nissan could also utilize the new tech for its plug-in hybrids. Amberland hinted, “We are not sure where the technology could lead, but we are actively exploring all potential applications.”
Toyota, Volkswagen, and Stellantis are aiming to release their first solid-state battery-powered electric vehicles around 2027.
BYD and CATL, which are already dominating global EV battery sales, plan to launch their first EVs with solid-state batteries around 2027. It looks like Nissan could be late to the party once again.
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