Tesla has just started what could become a major EV price war, and it could change the landscape as the automaker is in a great position to win that war.
The number one thing I hear from people that are interested in buying an electric car is that the price is high.
I always counter it by asking them how much they spend on gas and with those savings, the cost of ownership is often cheaper than a gasoline vehicle. However, a higher sticker price remains an important psychological barrier for many buyers even after considering the total cost of ownership.
On top of that, the average price of electric vehicles has been steadily increasing over the last two years thanks to high demand, supply chain issues, and general inflation.
But now things are starting to get interesting for the first time on the EV pricing front.
Tesla’s sales are surging following the price drop and now we are seeing other automakers following in the price drop. For example, Xpeng saw its sales drop during the week following Tesla’s price drop, and the company has now implemented important price drops, too.
Many experts are seeing this as the first few steps into the first ever EV price war.
Tesla is in a perfect position to win the EV price war
In a price war, it’s all about your ability to absorb price reductions and on that front, you can’t deny Tesla’s lead.
For years now, the automaker has been enjoying industry-leading gross margins and net profits.
Here, Reuters put a chart together showing how Tesla’s gross margin and net profit compare to rivals in the auto industry:
That chart is impressive, but it doesn’t even tell the whole story.
Aside from companies like Nio and Xpeng, all the gross margins and net profits from the other companies also come from non-all-electric vehicles – meaning hybrids, PHEVs and gas-powered cars.
For companies like GM, which comes in second to Tesla in net profits, it is believed that its gasoline-powered vehicles have much higher margins than its electric vehicles.
Electrek’s Take
I’ve always said that I believe some big companies will fall during the electric revolution. I’m not saying that’s happening now, but if an EV price war heats up, I think we could see it happen.
I think Tesla still has a few wild cards that are questionable – Elon Musk is at the top of that list – but it is definitely Tesla’s war to lose.
FTC: We use income earning auto affiliate links.More.
Tesla appears to be doubling down on its new “Oasis” Supercharger station concept, which consists of larger stations powered by solar and a microgrid battery system.
Although, this new one is a bit less ambitious.
Last month, Tesla announced its “project Oasis” (pictured above), which should become one of Tesla’s largest Supercharger stations with several pull-through stalls for trucks and trailers, but the real differentiating factor is a large solar array and battery system that enables the charging station to operate off-grid mostly.
CEO Elon Musk has been saying that the goal of the Supercharger network is to be powered by solar and batteries and mostly off-grid since 2016, but Tesla has yet to make this common.
The announcement of the Project Oasis gave us some hope that it might finally happen, and now it looks like Tesla is planning a mini Oasis.
Marco RP, who tracks Supercharger projects, reported on the new construction plans submitted for the Coalinga, California station:
The project is about 50 miles north of Project Oasis – also on Interstate 5 between Los Angeles and the Bay Area.
We call it a “mini Oasis” not because it has fewer charging stations than Oasis; it actually has the same number of planned stalls, 168 stalls, but because it doesn’t have as much solar and batteries to enable off-grid use.
Oasis has 11 MW of planned solar power and 39 MWh of energy storage.
This new project in Coalinga has less than 1 MW of solar and 15.5 MWh of energy storage. In the case of Oasis, the grid complements Tesla’s microgrid, and in this new project, it’s Tesla’s microgrid that complements the grid connection.
But Tesla could eventually expand its solar array and battery storage system at the new station.
This new station also includes restrooms, which Tesla has sometimes deployed at bigger stations.
Supercharging with solar is great, but the best solar to charge your car is the one you own. If you want to make sure you’re finding a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage. EnergySage is a free service that makes it easy for you to go solar – whether you’re a homeowner or renter. They have hundreds of pre-vetted solar installers competing for your business, including some who install Tesla products like Powerwalls. They ensure you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links.More.
Home to luxury automakers like Porsche and BWM, Lucid Motors (LCID) is making a name for itself in Germany. Lucid just had its second consecutive month of record EV registrations in Europe’s largest auto market.
Lucid is taking on Europe with its luxury EVs
According to new data released Tuesday from Germany’s Federal Motor Transport Authority (KBA), Lucid had 129 new registrations in October.
Although it may not seem like much, it’s a considerable jump from the 41 registrations Lucid had in September. Lucid sold more cars in Germany last month than it did in the entire third quarter. The luxury EV maker has 256 registrations in Germany through the first ten months.
Lucid’s growth comes despite overall EV registrations in Germany slipping nearly 5% YOY to 35,491 units in October.
After opening its newest studio in Hamburg last month, Lucid declared its “expansion in Europe continues.” The new studio comes just a month after opening one in Frankfurt.
Lucid now has four showrooms in Germany and eight in Europe as it expands overseas. Last month, the EV maker also signed a deal with SIXT to add its luxury Air sedan to its fleet in Germany.
Following the deal, former CEO Peter Rawlinson said more customers will be able to “experience the only EV in the world which is equally at home on the Autobahn as on city streets.”
Lucid’s mobile service network covers 15 European markets, including Belgium, Luxembourg, France, Austria, Italy, Spain, the United Kingdom, Sweden, Denmark, Poland, and the Czech Republic.
The Lucid Air Pure starts at about $93,000 (€85,000) in Germany and has up to 464 miles (747 km) of WLTP range. Lucid’s Air Touring and Air Grand Touring models start at $108,200 (€99,000) and $141,000 (€129,000), respectively.
Starting Price
WLTP Range
Lucid Air Pure
$93,000 (€85,000)
464 miles (747 km)
Lucid Air Touring
$108,200 (€99,000)
451 miles (725 km)
Lucid Air Grand Touring
$141,000 (€129,000)
521 miles (839 km)
Lucid Air EV prices and range by trim in Germany
Lucid said it plans to continue expanding in Europe with its newly opened service and delivery centers in Munich and Zurich.
In the US, the company is gearing up to launch its first electric SUV, the Gravity. Lucid will begin taking Gravity SUV orders for US buyers on November 7, 2024.
FTC: We use income earning auto affiliate links.More.
Renewables developer Exus Renewables North America is giving a $200 million upgrade to Somerset County, Pennsylvania’s 139 megawatt (MW) Twin Ridges Wind Farm – here’s why repowering projects like this are the future of the wind industry.
Wind energy repowering is all about breathing new life into older turbines or entire wind farms. By swapping out aging parts like turbines, blades, and nacelles for the latest tech, wind farms can see significant boosts in efficiency, power capacity, and overall lifespan. Other infrastructure and control systems can also get a second life, too.
Adding new components to existing infrastructure and grid connections mean it’s less expensive to extend the life of the wind farm with fewer resources. New components make the turbines less prone to breakdowns which means less maintenance, so there are fewer operational costs. Plus, a wind farm’s debt is usually paid off at around 10 years, and it qualifies for new tax credits and new financing at around that time. Existing wind farms often have power purchase agreements in place, and data companies are increasingly chasing power sources as demand grows.
Repowering Twin Ridges meant keeping all 68 towers and foundations while swapping out the nacelles and blades. Vestas, which has identified the repower market as a huge opportunity and engineered a solution that’s compatible with most turbines, supplied US-made nacelles, hubs, blades, and tower adaptors for the project. (Twin Ridges’ original supplier, RES, is no longer in business.)
Jim Spencer, CEO of Exus Renewables North America, said of Twin Ridges, “This upgrade will increase the power generation by 30%, which is a lot more power going into the grid. Repowering will allow it to use more of its allotted grid capacity since wind farms don’t operate at maximum capacity 100% of the time.”
Unlike a new wind farm, which comes online all at once, a repowered wind farm sees refurbished turbines turned on one at a time since the infrastructure is already in place. Out of its 68 upgraded turbines, Twin Ridges has brought 40 repowered turbines online, and a 41st turbine will soon follow.
Industry estimates suggest that up to 50 GW of US onshore wind capacity will be assessed for repowering in the next few years.
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links.More.