Baress's Posts
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2016 BMW i3 After much discussion, Germany appears poised to implement significant incentives to encourage the purchase of electric cars. This week, the German government announced an incentive program that will include rebates for both electric cars and plug-in hybrids. The costs of the program are estimated at roughly 1 billion euros (about $1.1 billion) to the program, with funds to be provided both by the national government and by automakers. That will hopefully yield up to 400,000 electric-car sales, German Transport Minister Alexander Dobrindt told Reuters when the program was announced today. Buyers of electric cars will receive 4,000 euros (about $4,500), while buyers of plug-in hybrids will receive 3,000 euros (about $3,400). [UPDATE: This article was originally published on April 27, 2016. On May 18, the German cabinet approved the final legislation. We have updated this article in several places to reflect the provisions adopted.] See more <http://baress.com/2016/05/27/germanys-1-billion-electric-car-incentive-plan-approved-by-cabinet-update/
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Ford Motor Co. said today that it is recalling nearly 271,000 previous-generation F-150s after a three-month investigation by federal safety regulators into dozens of complaints about front brake failures and nine crashes. Ford said the problem involves fluid leaking from the master brake cylinder into the brake booster, resulting in reduced or no braking ability. Some owners who complained said they could not stop even when pressing the brake pedal all the way to the floor. Dealers will replace the master cylinder and, if there are signs of a leak, the booster, Ford said. Ford said it knows of nine crashes potentially linked to the problem but that none caused any injuries. One driver reported being injured while trying to brake but without being involved in a crash, Ford said. Read more>http://baress.com/2016/05/26/recall-alert-271000-2013-14-ford-f-150-pickups-need-immediate-brake-inspection/
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Newest GMC 3-row crossover is smaller, lighter and much, much better In 2007, GMC unveiled a three-row crossover built on the then-new Lambda platform. Dubbed Acadia, the new Suburban-lite shared the platform with the likes of the Buick Enclave, Saturn Outlook and Chevrolet Traverse. At the time, the Acadia was perfectly acceptable and provided people with what they wanted: a comfortable, attractive three-row crossover. But by today’s standards, nearly a decade on, the Lambda platform is heavy. The outgoing 2016 Acadia tips the scales at 4,656 pounds in front-wheel-drive base trim, but jumps to 4,850 pounds when optioned with all-wheel drive. That heft requires the sole engine, a 281-hp DOHC V6, to work hard to haul itself around and it still feels like a dog. For the new 2017 model, GMC added what the Acadia needs most: lightness. GMC claims the 2017 Acadia will tip the scales, in I4 FWD trim, at 3,956 pounds -- a whopping 700 pounds lighter. Some of the weight savings comes from dropping the base V6 in lieu of a lighter, naturally aspirated 2.5-liter I4, but even V6 models are more than 600 pounds lighter. To get the weight off, GMC trimmed 7.2 inches off the total length of the Acadia and used more aluminum and high-strength steel throughout. The shortened structure clips about 2 inches of legroom from the third row, and cuts storage behind the third row in half -- down from 24.1 cubic feet to 12.8. Total cargo space is down 37 cubic feet when compared to the outgoing Acadia, which means sports-equipment space can get scarce. In base trim, the Acadia’s interior is adorned mostly with plastic, with soft-touch materials placed strategically to improve comfort. However, if you can afford to spring for the top-tier Denali, you’ll be welcomed with plenty of leather. The 7-inch standard MyLink infotainment system can be optioned up to an 8-inch screen for $495. New for 2017, the MyLink system allows for third-party applications such as a Weather Channel app. There will be other apps, with one operating like the automotive equivalent of Foursquare, which tells your friends, and presumably GM, and presumably some advertising partners, where you are while you're in your car. The apps work fine, but don’t add much to the Acadia’s cabin experience. Read more>http://baress.com/2016/05/26/2017-gmc-acadia-first-drive-a-lighter-shade-of-crossover/
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This new Malibu is a hell of a lot of a car for less than $30,000. I was hoping it would be in the $25K range, but anything less than $30K is still a steal. Like the last redesign jumpstarted sales for the model, this one will do -- and is doing -- the same. Sales are up 24 percent from last January, making the Malibu Chevy’s best-selling car right now. The new body is handsome from any angle. I don’t love that the hood doesn’t reach all the way to the nose -- it has sort of a clamshell thing going on, but other than that, it’s great. The U-shaped fog lights look cool at night and even though the rear is a little plain, it’s far from offensive. The wheel wells look nice and tight too, which always makes a car look better. Inside, the ‘Bu is plain too, but it’s a clean look. The screen is integrated into the dash and everything seems to be within reach. The stupid teen driver aids were enabled though, so every time I crested 60 mph it beeped (if the shoe fits -- ed.). It also muted the radio anytime you came near the seatbelt. It also mutes if someone else jumps in, before they put their belt on. I’m not sure how big of a feature that is, though -- doesn’t everyone just wear their belt now? I was a late adopter for sure, but in the last 10 years, I don’t think I’ve driven without it. I thought the lane keeping worked well. It was a little annoying when I was just trying to make a quick move to the exit lane. I rarely signal for that, unless there’s someone right behind me, but this steering wheel gives a good push back towards the center unless you have your turn signal on. Overall, it’s obviously a net positive, and it would probably force you to use your signal every time, once it trains you. The forward collision warning may have been a little too sensitive; it flashed and beeped a few times when there was really no need. Again though, it’s probably a net positive. Read more: http://baress.com/2016/05/26/2016-chevrolet-malibu-lt-review-new-sheetmetal-interior-space-change-the-game-read-more-httpautoweek-comarticlecar-reviews2016-chevrolet-malibu-lt-reviewixzz49mdtdvqi/
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The 2017 Toyota Highlander will offer the choice of a new 8-speed automatic transmission paired with an improved 3.5-liter engine. Toyota recently announced what it’s calling a significant enhancement to its Highlander (aka Kluger) mid-size crossover SUV lineup. Destined for a more complete reveal at the New York International Auto show later this month, the updated Highlander range will feature the availability of an all new powertrain, a more powerful engine, and room for up to eight passengers. By adding a new 8-speed automatic coupled to what is now a 3.5 liter V-6 direct injection engine, Toyota is giving Highlander buyers more model options. The changes mean there are now three different powertrain options to choose from: the new V-6, a Hybrid V-6 with 8-speed automatic, and the unchanged 2.7-liter four-cylinder and six-speed automatic (available only in the LE). The new Highlander will come in six different model grades in the gasoline versions (LE, LE Plus, XLE, SE, Limited and Limited Platinum), and four in the hybrid models (LE, XLE, Limited and Limited Platinum). All of the gas models will be available in either front-wheel or all-wheel drive, while all hybrid models remain all-wheel drive. Current Highlanders are available with the same-sized engine, but it’s not direct injection and it’s coupled to a six-speed transmission, so performance numbers – horsepower, torque and gas mileage – should be improved in the 2017 models. To help improve fuel economy, all of the V-6 models get a new stop and start engine system that shuts the engine off when the vehicle comes to a complete stop, then restarts the engine when the driver takes their foot off the brake. Externally, Toyota sets each grade apart with different grille finishes and other cosmetic options, particularly giving the two upper grades a more refined and upscale look. Owners of the top-of-the-line Limited and Limited Platinum models will also have the choice of either a second-row of captain’s chairs to bring overall seating to seven, or second-row bench seats that will expand capacity to eight. Toyota has also improved safety features, with the addition of Toyota Safety Sense P (TSS) as standard, which includes lane departure alert, automatic high beam actuator, and pedestrian and forward collision warnings with automatic emergency brake. The Limited Platinum edition gets the added benefit of what the company is referring to as “Bird’s Eye View Camera with Perimeter Scan.” It incorporates four cameras and gives the driver a 360-degree view around the vehicle to help detect any obstacles. The new Highlander will debut at the New York International Auto Show on March 23 and is expected to be in showrooms later this year. See more pictures http://baress.com/2016/05/26/there-can-be-only-10-toyota-expands-and-updates-highlander-models-for-2017/
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While Land Rover’s epically expensive and ultra-deluxe Range Rover SVAutobiographyand sporty Range Rover Sport HST soaked up the limelight at the brand’s New York auto show stand, they weren’t the only news-makers. The regular Range Rover receives a smattering of minor updates for 2016, including a new diesel engine, a power bump for the base gas V-6 engine, and some new tech. Starting with our favorite topic, power, the mid-level 2016 Range Rover HSE’s supercharged 3.0-liter V-6 gains a 40-hp boost. Now, with 380 horsepower, the HSE stands a little taller above the base Range Rover, which still makes do with 340 ponies. The Td6 single-turbo six-cylinder diesel engine being offered in the 2016 Range Rover Sport joins the Range Rover lineup, where it makes the same 254 horsepower and 440 lb-ft of torque. The diesel Range Rover is expected to achieve 22 mpg in the city and 28 mpg on the highway, a respectable set of estimates that’s far, far above the next-most-efficient big Rovers, the supercharged V-6 at 17/23 mpg. Land Rover hasn’t touched the Range Rover’s handsome exterior—we’re okay with that—but it has introduced a new InControl Remote smartphone app that allows owners to remotely lock and unlock their doors, start their engine, and activate the horn and lights to help locate their car in crowded parking lots. Additionally, the backup and surround-view parking cameras now feed drivers a higher-resolution image, and the backup camera gets a standard washer function to keep it clean. Every Range Rover has a standard power tailgate with gesture-based (kicking) activation; Land Rover cleverly placed the sensors on the sides of the bumper so that users can open the tailgate with a kick from the sidewalk. Finally, a protocol was added to lower the Range Rover’s air suspension to its “access” height automatically when shifted into park. Pricing for the 2016 Rovers will be released closer to the on-sale date this fall. See more photos @ http://baress.com/2016/05/24/2016-range-rover-gets-diesel-engine-tech-upgrades/
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TOKYO -- Toyota Motor Corp. is partnering with Uber to explore ride-sharing opportunities and will make a strategic investment in the company. As part of the partnership, Toyota will create new leasing options in which car purchasers can lease their vehicles from Toyota Financial Services and cover their payments through earnings generated as Uber drivers. Toyota said it is making the strategic investment in Uber through its finance arm, Toyota Financial Services Corp. and Mirai Creation Investment Limited Partnership. "Ride-sharing has huge potential in terms of shaping the future of mobility. Through this collaboration with Uber, we would like to explore new ways of delivering secure, convenient and attractive mobility services to customers,” said Shigeki Tomoyama, senior managing officer of Toyota Motor Corp. and president of the Connected Company, one of Toyota’s recently created in-house companies. Toyota and Uber said the collaboration will start with trials in ride-sharing, in countries where ride-sharing is expanding. The two companies will explore collaboration in other areas, such as developing in-car apps that support Uber drivers. Traditional automakers are racing to find ride-sharing partners as technology companies such as Apple, Alphabet's Google and private companies such as Uber reshape the global auto industry. Earlier Tuesday, Volkswagen said it would make a $300 million investment in Gett, a smaller ride-sharing company. The Toyota-Uber partnership comes more than four months after General Motors' $500 million investment in Lyft, Uber's main U.S. rival, to develop an on-demand network of self-driving cars. More recently, Apple said it would invest $1 billion in Chinese ride-hailing service Didi Chuxing, seen as a political move by the technology giant to cement its presence in the crucial Chinese market. At the same time, Ford Motor Co. is looking at partnerships to expand beyond manufacturing and selling cars, with Executive Chairman Bill Ford saying on Monday that "you'll hear more from us" as the year progresses. Read more,http://baress.com/wp-admin/post.php?post=6925&action=edit
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The company, which is currently profitable, is far from optimum capacity utilization with both the vehicle assembly plant as well as its engine and transmission unit Toyota Kirloskar Auto Parts (TKAP) running at below-optimum capacity.Read more http://baress.com/2016/05/24/toyota-focusing-on-uv-market-with-products-like-crysta-in-india/
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The Italian-American automaker announced Tuesday that Reid Bigland will replace Harald Wester, who will retain his role as the automaker's chief technology officer.Read more@ http://baress.com/2016/05/24/fiat-chrysler-names-new-head-of-alfa-romeo-and-maserati/
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Mahindra, which acquired a 51% stake in Peugeot Motorcycles about a year ago, is in talks with at least half a dozen heritage brands in various parts of Europe and the US Read more @http://baress.com/2016/05/24/after-peugeot-mahindra-again-on-the-prowl-to-buy-foreign-two-wheeler-brands/
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The 25-year-old made a bold entrance at the annual amfAR gala in a racy red Ferrari on Thursday. The stunner turned heads in a simple monochrome outfit which flattered her frame…SEE MORE http://baress.com/2016/05/20/tennis-star-caroline-wozniacki-rocks-up-to-amfar-gala-in-red-ferrari/
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The Week in Luxury Cars: Spyker’s C8 Preliator, Prince Philip’s Aston Martin, and BMW’s Grand Vision for the Future BMW celebrated its centennial with the unveiling of the “Vision Next 100” concept car in Munich. See more http://baress.com/2016/05/23/the-week-in-luxury-cars-spykers-c8-preliator-prince-philips-aston-martin-and-bmws-grand-vision-for-the-future/
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Mounted on a 5.2-L engine, the Spyder produces 449 kW/610 hp and can accelerate from 0 to 100 km/h in 3.4 seconds, and can attain the top speed of 324 km/h.PTI See more @ http://baress.com/2016/05/16/lamborghini-launches-new-huracan-spyder-priced-at-rs-3-89-crore-ex-delhi/
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NEW DELHI: India's largest utility vehicle manufacturer Mahindra and Mahindra has launched its TUV300 with all new powerful mHAWK 100 engine; priced at Rs 8.87 lakh (ex showroom Mumbai).See more @ http://baress.com/2016/05/16/mahindra-tuv300-launched-with-more-powerful-mhawk-100-engine/
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Smartphones have tiny screens. Do people who get their news from their smartphones have tiny attention spans? Find Out @ http://baress.com/2016/05/16/think-people-who-read-the-news-on-smartphones-have-short-attention-spans-think-again/
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Leading automobile manufacturer Honda Cars India Ltd (HCIL) on Friday launched its compact sports utility vehicle (SUV) Honda BR-V in Karnataka, marking its entry into the highly-competitive segment in the state.IANS See more @http://baress.com/2016/05/16/honda-launches-compact-sports-utility-vehicle-br-v-in-karnataka/
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BEIJING: After poaching Bentley's design chief last year, Hyundai Motor Co is set to announce it has also secured the services of the luxury marque's exterior designer. See more @ http://baress.com/2016/05/16/hyundai-raids-bentley-to-turbo-charge-genesis-luxury-drive/
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For Apple, Chief Executive Tim Cook said to Reuters that investing in the leading Chinese ride sharing service could expand its presence in that "very, very important" market See more at: http://baress.com/2016/05/15/apple-chinese-rideshare-deal-heats-up-race-for-tech-smart-cars/
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See more at: http://baress.com/2016/05/15/texting-while-driving-breaks-down-our-brains-life-saving-autopilot/
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Novus Aware is a vision based driver drowsiness detection system which detects the face and analyzes different facial expressions See more at: http://baress.com/2016/05/15/hi-tech-robotics-adas-solution-to-be-launched-soon/
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Toyota loses 7% annual sales owing to diesel ban in NCR See more at: http://baress.com/category/autos-updates/
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In earthquake prediction, geologists work in probability distributions rather than absolute terms. Consensus is growing, however, of the likelihood of a large and devastating earthquake to strike California. Why are scientists beginning to worry? The San Andreas Fault hasn’t produced a big earthquake in that region of the fault since the M7.9 earthquake hit California in 1857, 159 years ago. The theory behind why we expect the next significant earthquake to be a big one becomes apparent in a few back of the envelope calculations. The average rate of plate movement along the San Andreas Fault has remained fairly consistent at approximately 2 inches per year for the last several million years. Given the aforementioned 159-year gap in a major earthquake along part of the San Andreas Fault, that would mean average plate movement has accumulated 26 feet of movement since then. The accumulated strain built up from 159 years and 26 feet of plate movement provides the ammunition needed for a major earthquake on the order of M8.0. At some point the rock holding that strain will break when the strain overcomes the tensile strength of the surrounding rock. At this point, the two plates will quickly snap to a state of equilibrium or close to it, thrusting the plates from their current position. Why Can’t We Predict Earthquakes? As you likely know, the 1906 San Francisco earthquake (M7. was one of the most powerful in the recent century and led to mass destruction of the San Francisco bay area from earthquake related damages as well as fire. Unfortunately, there are no reliable ways to predict an imminent earthquake, much like we do for practically every other natural disaster.We can measure increased toxic gasses and increased heat flow to predict volcanic eruptions, measure wind and weather patterns via satellites, and measure tsunami potential from earthquakes. Unfortunately, there are no telltale signs of an imminent earthquake. There are early warning messaging apps that will notify you of any impending danger. The only certainty is that the plates continue to move whether there is an earthquake or not to relieve the stress. The longer the time between earthquakes, generally leads to more powerful and devastating earthquake. You can find a multitude of articles that claim with almost certainty that we will have a major earthquake in California “tomorrow.” However, the truth is we just don’t know when the next earthquake will strike. Scientists recognize it is becoming increasingly probable of a significant earthquake, but those conclusions are largely grounded in the aforementioned back of the envelope calculation and limited concrete predictive analyses. A scary truth is that one single earthquake in this region is unlikely to happen in isolation. Stress has built up along much of the San Andreas Fault and the San Jacinto Fault. It is likely that a major release of stress through an earthquake would trigger the release of stress along the entire fault complex. With earthquakes, it is often unlikely to completely remove the stress within a fault zone, but rather push it down the line to another point within the fault. In 2008 the U.S. Geological Survey published a report on the predicted damage from a M7.8 earthquake along the San Andreas Fault. The report predicted more than 1,800 deaths, 50,000 injuries and a total of over $200 billion in damage. The truth is we just don’t know when the next big earthquake along the San Andreas Fault will be. It could be tomorrow or 10 years from now. However, we can say with a good deal of confidence that the area is primed for a large earthquake with devastating potential. Now is the time to upgrade infrastructure, early warning systems, and education on earthquake preparedness before it’s too late.
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Aston Martin’s successor to the ageing DB9 signals a new era for the British brand, not only because it ditches the repetitive design that characterized most of its models over the past decade or so, but also because it will be one of the firm’s first cars to benefit from the Mercedes-AMG partnership. The new DB11’s exterior incorporates styling cues from Aston’s recent studies like the DBX crossover, the DB10 from the James Bond flick ‘Spectre’ and even the CC110 centenary special, with the front end maintaining the brand’s signature grille, but decorating it with sharper details, and the fastback rear deviating from the brand’s design norms. There are no pictures of the interior yet, but prototypes of the car were fitted with a digital instrument panel and electronic dials lifted straight off from Mercedes-Benz’s S-Class Coupe, suggesting that the production DB11 will share its electrical architecture with the German luxury marque’s top model. It’s believed though that the DB11 will not be based on an AMG platform and instead continue riding on an evolved version of Aston's VH aluminum architecture. The British carmaker has already confirmed a new 5.2-liter twin-turbocharged V12 engine capable of delivering around 600 horses, possibly offered with both an eight-speed automatic and a six-speed manual, while the AMG will likely result in the availability of the former’s 4.0-liter turbo V8 as well.
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Read the statement below… Fellow Citizens: I have read the various observations about the fuel pricing regime and the attendant issues generated. All certainly have strong points. The most important issue of course is how to shield the poor from the worst effects of the policy. I will hopefully address that in another note. Permit me an explanation of the policy. First, the real issue is not a removal of subsidy. At $40 a barrel there isn’t much of a subsidy to remove. In any event, the President is probably one of the most convinced pro-subsidy advocates. What happened is as follows: our local consumption of fuel is almost entirely imported. The NNPC exchanges crude from its joint venture share to provide about 50% of local fuel consumption. The remaining 50% is imported by major and independent marketers. These marketers up until three months ago sourced their foreign exchange from the Central Bank of Nigeria at the official rate. However, since late last year, independent marketers have brought in little or no fuel because they have been unable to get foreign exchange from the CBN. The CBN simply did not have enough. (In April, oil earnings dipped to $550 million. The amount required for fuel importation alone is about $225million!) . Meanwhile, NNPC tried to cover the 50% shortfall by dedicating more export crude for domestic consumption. Besides the short term depletion of the Federation Account, which is where the FG and States are paid from, and further cash-call debts pilling up, NNPC also lacked the capacity to distribute 100% of local consumption around the country. Previously, they were responsible for only about 50%. (Partly the reason for the lingering scarcity). We realised that we were left with only one option. This was to allow independent marketers and any Nigerian entity to source their own foreign exchange and import fuel. We expect that foreign exchange will be sourced at an average of about N285 to the dollar, (current interbank rate). They would then be restricted to selling at a price between N135 and N145 per litre. We expect that with competition, more private refineries, and NNPC refineries working at full capacity, prices will drop considerably. Our target is that by Q4 2018 we should be producing 70% of our fuel needs locally. At the moment even if all the refineries are working optimally they will produce just about 40% of our domestic fuel needs. You will notice that I have not mentioned other details of the PPRA cost template. I wanted to focus on the cost component largely responsible for the substantial rise, namely foreign exchange. This is therefore not a subsidy removal issue but a foreign exchange problem, in the face of dwindling earnings. Thank you all. VICE PRESIDENT YEMI OSINBAJO, SAN May 13, 2016
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Honda has developed a capable and comfortable lifestyle pickup, with unique features, plenty of capability and a better interior package in the form of the Ridgeline pickup, a next generation effort that is much better aligned with truck consumers, as Honda learned and applied lessons from the first generation. The new truck arrives in June 2016, and will further drive life into the mid-size pickup segment. Does it suggest a wider change in consumer truck-buying behavior? It is not certain, but a growing consumer acceptance of unibody trucks cannot be ruled out. The all-new Ridgeline’s unibody construction is again derived from the Honda Pilot crossover utility vehicle, leading to virtues like an extremely roomy and comfortable passenger cabin with more interior space for people and stuff than the competition offers; a wider truck bed, for hauling those pesky drywall boards; and an improved version of Honda’s in-bed trunk. The dual-action tailgate provides easy access to the bed and trunk and there is a clever in-bed audio system. Ridgeline is a lifestyle pickup truck, with useful features that should resonate with consumers, several I was able to experience during a recent ride and drive hosted by Honda. The truck will not tow quite as much as its body-on-frame competition and does not have heavy off-road, rock-crawling capability. Ridgeline is designed to do what Honda says 94 percent of mid-size truck buyers need, particularly in the towing category. The second-generation has a traditional truck silhouette as well, addressing the largest pain point of the first generation. Honda amplified the elements its owners appreciated from the first effort and improved the issues they didn’t. The truck will easily tow a small boat and is very well-suited to haul motorcycles and ATVs. There are buyers for whom the Ridgeline’s capabilities will fit like a glove. Fuel economy is now best-in-class (for gasoline engines), though the difference against competitors is marginal. The relationship to the Pilot helps ensure the latest driver assistance systems are available, giving it a safety advantage. Honda also added front-drive versions, to appeal to drivers in fair-weather states. The front-drive option reduces towing and payload significantly and offers a lower price point, but doesn’t deliver much fuel economy improvement. The all-new Ridgeline is much more compelling than the first generation. But will this translate into higher, sustained volume? It may not, and for several reasons. While IHS IHS -0.51% forecasts it will bring volume of nearly 55,000 units to Honda in its first full year (2017), several factors may limit the product’s volume upside longer term. The Ridgeline’s advantages include a smaller footprint, more comfortable drive and better fuel economy than the competition—but The overall price ladder for the Ridgeline is competitive, but the relatively high base price of the Ridgeline can create a marketing disadvantage, particularly in initial shopping phases.
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This week pubs and blogs tried to burst the Model 3 bubble. Are they right? The Wall Street Journal was one of the first to go on the attack in the wake of Tesla Motors' TSLA +0.24% blustery earnings call last week. During that call, CEO Elon Musk said that it would produce 500,000 new cars in 2018 and “close to” 1 million by 2020, much of that increase coming from Tesla’s first mass-market electric, the Model 3. “Tesla’s rise didn’t occur entirely as planned. The profitability hasn’t materialized yet. Cumulative operating cash flow less capital expenditures is negative $4.6 billion since the company went public. And production snags have delayed the launches of key product,” the Journal article said. Then, The Los Angeles Times took its shots. “Here’s a dose of reality about Tesla’s heavily hyped mass-market Model 3 electric car,” according to The Los Angeles Times article. “The company hasn’t yet finalized the design for the Model 3, hasn’t selected its parts suppliers, isn’t sure it can produce and deliver the car in volume and on time, and still needs to do extensive testing’ to make sure the car can meet quality standards and government regulation,” citing Tesla’s form 10-Q. Allow me to add a little perspective here. I’ve combed through more than a few form 10-Qs and companies always insert all sorts of scary-sounding warnings to make sure investors are properly apprised of any potential risks. You can dig into many 10-Qs and find dire stuff about lots of companies that are not necessarily in dire straits. (This point was also made by electrek.) Apple AAPL +0.24% is a great example. In its latest 10-Q, it has spine-chilling warnings about competition from Windows PC makers, though we know they aren’t much of a threat to Apple. Then on Friday an article sporting the headline, “Tesla Needs Billions to Meet Musk’s Ludicrous Assembly Timeline,” from Bloomberg . The headline was really the scariest part. The story went on to say: “With its ambitious plans that will require an incremental fundraising, we view Tesla as more of a cash-hungry startup unicorn than a traditional public company,” said the article, citing a research note from Barclays Analyst Brian Johnson. He projected a $3 billion equity raise sometime in the second quarter. “At current stock prices, a transaction of that size would be about 14.5 million shares, an increase of 11 percent to the number of shares outstanding, ” the story projected. My take: Tesla, from a pragmatic point of view, is trying to do the impossible in many ways. Thus it is vulnerable to unending skepticism. Some of it, by the way, not unwarranted. Yes, it faces large capital expenditures as it ramps up its Gigafactory for batteries, adds factory capacity for the Model 3, grows sales and service operations globally, and adds more superchargers, among other things. But the non-pragmatic side of me sees Tesla becoming the first American auto manufacturer to succeed since Ford’s IPO in 1956 and doing it on the back of a cult following that will eventually translate to mass-market, Prius-replacing, industry-disrupting Model 3 success. And there are plenty of articles out there making arguments along these lines. A Washington Post article here and a very different Los Angeles Times write-up here, for instance. Lest we forget, Tesla was formed not to make the Model S and Model X but to make mass-market electric cars like the Model 3, a point Musk has repeated often. So, the Model 3 isn’t something Musk dreamed up yesterday. And if he’s going to sleep on the factory floor and invest lots of his own fortune to make sure Tesla gets there, I can curb some of my own skepticism.
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was one of the most powerful in the recent century and led to mass destruction of the San Francisco bay area from earthquake related damages as well as fire. Unfortunately, there are no reliable ways to predict an imminent earthquake, much like we do for practically every other natural disaster.