Tesla has started production at its new Megafactory in Shanghai, its second such factory, and it is starting to ship to its first customer.
Energy storage has been Tesla’s silver lining over the last few quarters.
While its main business, the automotive business, has been shrinking in both revenue and margins, its energy storage business has been growing at an impressive pace.
That’s mainly due to its Megapacks, its popular utility-scale energy storage systems, and the production ramp at its Megafactory in California, where it produces those battery packs.
Tesla has ramped up production at the plant with a capacity of 40 GWh.
The company has also been building its second Megafactory, this one in Shanghai, China.
Today, Tesla announced that it has produced its first Megapack at the Shanghai factory and released these pictures:
Tesla also said that it will soon ship the first Megapacks to Australia from this factory.
Australia has been one of Tesla’s earliest customers of large-scale energy storage systems and it will make more sense to ship Megapacks from China than from the US.
This second Megafactory will help the logistics of Tesla’s energy storage business.
While Tesla’s energy storage volumes are ramping up, the company has had to slash Megapack prices over the last year, which is resulting in lower margins.
The company is also facing stronger competition. Its own battery cell suppliers, BYD and CATL, have released similar products as Megapacks.
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Russian President Vladimir Putin and Hungarian Prime Minister Viktor Orban during their joint press conference at the Kremlin on July 5, 2024.
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Russia’s allies in Eastern Europe say Brussels plans to end all Russian gas and energy imports in the coming years are tantamount to “economic suicide” and a threat to the region’s energy security and economy.
The European Commission announced plans on Tuesday to phase out Russian gas, nuclear energy and liquefied natural gas (LNG) imports by the end of 2027, saying the move “paves the way to ensure the EU’s full energy independence from Russia.”
The EU’s latest proposals have already prompted a furious response from eastern European nations which have traditionally been more reliant on cheaper energy supplies from Russia, and which repeatedly warn of higher energy prices for consumers as a result of banning such supplies.
Slovakia and Hungary, whose governments have maintained warm ties with Moscow despite the war in Ukraine, described the EU’s latest plans as a “serious mistake” that would harm the region.
“We recognize the strategic goal of reducing energy dependence on third countries, and Slovakia is ready to work on this together with the European Union but … this is simply economic suicide to agree that neither gas, nor nuclear, nor oil [can be imported from Russia], that everything must end just because some new Iron Curtain is being built between the Western world and perhaps Russia and other countries,” Slovakian Prime Minister Robert Fico said Wednesday, in comments reported by Slovak news agency TASR and translated by Google.
In this pool photograph distributed by Russian state agency Sputnik, Russia’s President Vladimir Putin shakes hands with Slovakia’s Prime Minister Robert Fico prior to their talks in Moscow on Dec. 22, 2024.
Gavriil Grigorov | Afp | Getty Images
Hungarian Foreign Minister Péter Szijjártó said Wednesday that the EU’s proposals were “politically motivated” and a “serious mistake.”
“It threatens energy security, drives up prices and violates sovereignty. They want us to bear the cost of their reckless support for Ukraine and its rushed EU accession. We firmly reject this,” the minister commented on X.
Both Hungary and Slovakia have pushed back against previous EU initiatives to cut energy ties with Moscow, instead opting to maintain supplies amid fears of mounting energy costs at home.
Both have also been vocally critical of giving more military and financial assistance to Ukraine and have previously threatened refused to back the EU’s regular extensions of sanctions against Russia. Both looked to extract concessions from the bloc before approving their renewal, most recently in March.
In announcing its latest plans to distance itself from Russia, the EU said Tuesday that its “roadmap” to phasing out all Russian energy imports would first introduce a ban on all imports of Russian gas (both pipeline and LNG) under new contracts and existing spot contracts, which would take effect by the end of 2025, before all remaining imports are phased out by the end of 2027.
The Commission’s legislative proposals, to be presented in June, will require approval from the European Parliament and a qualified majority of member states, meaning the plans cannot be vetoed by just a few countries.
He added that the bloc was currently in an “unacceptable situation” in which it was dependent on a Russian state and leader, President Vladimir Putin, who had “chosen to weaponize energy.” He added that importing Russian gas had indirectly helped to fill the Kremlin’s “war chests” to continue its war against Ukraine.
The Commission said in its statement Tuesday that it envisaged a “gradual and well-coordinated” approach across bloc, with member states being asked to prepare national plans by the end of this year “setting out how they will contribute to phasing out imports of Russian gas, nuclear energy and oil.” It’s uncertain whether Slovakia and Hungary will accede to the request.
CNBC has asked the Kremlin for a response to the EU’s proposals and is awaiting a reply.
Tesla has confirmed it has given up on plans to make a Cybertruck range extender to achieve the range it originally promised on the electric pickup truck.
It started refunding deposits for the $16,000 extra battery pack.
When Tesla unveiled the production version of the Cybertruck in late 2023, two main disappointments were the price and the range.
The tri-motor version, the most popular in reservation tallies before production, was supposed to have over 500 miles of range and start at $70,000.
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Tesla now sells the tri-motor Cybertruck for $100,000 and only has a range of 320 miles.
The dual-motor Cybertruck was supposed to cost $50,000 and have over 300 miles of range. In reality, it starts at $80,000 and has 325 miles of range.
However, Tesla had devised a solution to bring the range closer to what it originally announced: a separate battery pack that sits in the truck’s bed. Tesla called it a “range extender.” It costs $16,000 and takes up a third of the Cybertruck’s bed.
Even though the Cybertruck has been in production for a year and a half, the range extender has yet to launch.
At the time, Tesla also reduced the range that the removable battery pack adds to the Cybertruck to “445+ miles” rather than “470+ miles” for the dual motor – a ~25-mile reduction in range.
Last month, Electrek reported that Tesla has quietly removed the range extender from the Cybertruck online configurator, where buyers could reserve it with a “$2,000 non-refundable deposit.”
At the time, we speculated that Tesla was most likely giving up on the product.
Sure enough, the automaker has now confirmed that it doesn’t plan to produce the range extender.
A Tesla Cybertruck owner contacted Electrek to share communication that Tesla started sending to Cybertruck owners who reserved the range extender, letting them know that the product is dead.
Tesla wrote in the email:
“We are no longer planning to sell the Range Extender for Cybertruck.”
The automaker says that it will start processing refunds for the deposits.
Here’s Tesla’s communication about the Cybertruck range extender in full:
Update to Your Cybertruck Range Extender Order
Hi [redacted],
Thank you for being a Cybertruck owner.
We are no longer planning to sell the Range Extender for Cybertruck. As a result, we will be refunding your deposit in full. The amount will be returned to the original payment method used for the transaction.
Thank you for your understanding.
The Tesla Team
Electrek’s Take
There could be many reasons why Tesla has given up on the product.
The range extender was confirmed to take 30% of the Cybertruck’s bed, and Tesla needed to install and remove it at a service center. Owners couldn’t remove them themselves. I think it was pretty much dead on arrival at $16,000.
But I think it could also be as simple as it’s not worth producing due to demand – both due to insufficient people reserving it and not enough Cybertruck buyers to create a market for the range extender.
Therefore, the range extender is dead for the same reason that the Cybertruck RWD now has the same battery pack as the AWD instead of a smaller pack for less money: the Cybertruck is a commercial flop, and it’s not a high-volume program enough to justify making several battery pack sizes, including a removable one.
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The U.S. Patent and Trademark Office (USTPO) has denied Tesla’s attempt to trademark the term “Robotaxi”. which it has been using to refer to its long-promised self-driving vehicles.
CEO Elon Musk has been using the term “robotaxi” for years.
At first, it was to refer to what its existing consumer vehicles (Model S, X, 3, Y and Cybertruck) would become once it finally delivers on its “full self-driving” promises– something that was supposed to happen by the end of every year for the last 6 years.
However, Tesla held its ‘We, Robot’ event in October 2024, where it unveiled two new vehicles, a dedicated robotaxi vehicle and a self-driving ‘Robovan’ – pictured above.
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Musk referred to the dedicated robotaxi vehicle as both a ‘Robotaxi’ and ‘Cybercab’.
Now, Techcrunch reports that USTPO has denied Tesla’s trademark application for being too generic:
Tesla’s attempt to trademark the term “Robotaxi” in reference to its vehicles has been refused by the U.S. Patent and Trademark Office for being too generic, according to a new filing. Another application by Tesla to trademark the term “Robotaxi” for its upcoming ride-hailing service is still under examination by the office.
USTPO notes that other companies and media have used the term ‘robotaxi” to refer to other self-driving vehicles.
The decision is “non-final”. Tesla can still appeal the decision.
Tesla also saw its trademark application for ‘Cybercab’ halted as USTPO reviews other applications using the term ‘cyber’.
Electrek’s Take
I don’t think Tesla should get a trademark for ‘Robotaxi’. It’s indeed too generic. ‘Cybercab’ should be fine though. If Tesla was able to get Cybertruck, it should be able to get ‘Cybercab’.
I hope the Cybercab works out better for them than the Cybertruck has so far.
But it’s tough to make a steering wheel-less vehicle works if you haven’t solved self-driving.
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