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Republican party in Texas backs Tesla sales plan

Opposition to direct sales to consumers may be weakening in Texas. The state Republican Party has include a plank in its political platform backing Tesla’s bid. 90% of Republican representatives say they are in favor of the change.

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Texas is a red state through and through. The Republican Party is strong there, but it is also a place where people have a strong libertarian streak. Many oppose to what is often considered meddling in private affairs by government. Last week , state GOP convention delegates in Texas endorsed the idea of allowing Tesla to sell its cars directly to customers, despite bitter opposition. Nearly 90% of the more than 8,000 delegates supported language in the party platform that backs Tesla.

The platform committee rejected pleas by U.S. Rep. Roger Williams and former Republican national committeeman Bill Crocker to strip the pro-Tesla language from the platform. Williams is a car dealer, and Crocker is a lawyer who represents car dealers. Williams personally called all five members of the platform subcommittee on the economy according to its chairman, Alan Arvello. When asked about the calls by the Dallas Morning News, a spokesperson for Williams said, “Like all Members of Congress, Rep. Williams uses his spare time to help support his political party.” Uh huh.

Waco Supercharger

Collin Street Bakery welcomes Tesla owners stopping by the Waco, TX Supercharger

The position taken by the Texas automobile dealers has been successful so far at preventing a change in state law to allow Tesla to sell cars directly to customers. As things stand at the moment, customers can look at a Tesla car in one of the company’s three “galleries” in Dallas, Houston and Austin, but can’t test drive them without an appointment.

They also can’t buy the cars onsite. A Tesla employee can discuss the technology but cannot discuss price, take orders or direct the customer to the company’s website. Test drives are only permitted on Thursday, Friday, or Saturday. Even then, the company must get a test permit first.

The only way to buy a Tesla in Texas is to order online. The car will arrive registered in California, which means the customer has to re-register it in Texas. To have a Tesla worked on at one of the company’s four maintenance centers in Texas, service calls must be routed through the company’s California offices. Tesla says Texas is one of only five states with such a burdensome process.

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But things are changing. Younger shoppers are less impressed with the state’s heavy handed approach to Tesla. They see little difference between a Tesla and an Apple product. Their libertarian leanings are offended by how the state has dealt with Tesla these past 3 years.

David White, Tesla’s Texas spokesman, said he and two others working in the company’s booth at the Dallas convention spoke to thousands of delegates last week. Many were surprised to learn of barriers the Legislature has imposed that limit “open competition” in car sales, he said. “If Texas is truly ‘wide open’ for business, our elected officials should take the appropriate steps to end these frivolous regulations in 2017,” White said.

Arvello, chairman of the platform subcommittee and a physician assistant, said the pressure from Williams and Crocker seemed to backfire. “The more we were getting calls and having people try to influence us to vote against it, just some of that Texas emotion took over from my committee,” he said. “It was like, we’re going to do this!”

2017 may be the year when Tesla is finally victorious in its battle to sell directly to customers in Texas.

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Source and photo credit: Dallas Morning News

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Tesla just told us twice that Model Y L is coming to the U.S.

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Credit: Tesla

Tesla just told us twice that the Model Y L is coming to the U.S., and two social media posts definitely just tipped the company’s hand, as if they wanted it to be any other way.

The two social media posts basically confirm that the slightly longer version of the Model Y will be heading to the United States soon, and many have speculated that the company could launch the vehicle as soon as this weekend.

The first post was directly from Tesla, and it showed an incredibly long Dachshund, with words above that said, “Looking forward to the long weekend.”

Anyone who knows Tesla knows the company loves to troll its fans and have fun, and this is a perfect example of that. While not a direct acknowledgement, Tesla is very involved on social media, especially CEO Elon Musk’s platform X, and the company is well aware of what is being discussed within the community.

With recent sightings of Model Y L test mules in California, peeks of the vehicle at Giga Texas, and a large call for the car to come to the U.S., Tesla is simply stoking conversation with this.

However, the company also made another move that was recognized on social media. Tesla has a large gallery that includes photos of its products so media and others can use them. This gallery applies to the U.S. market specifically, unless otherwise specified.

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Tesla uploaded a Model Y L to the Gallery last night:

This seems to be another indication that the Model Y L is coming to the United States.

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Musk said last year that the Model Y L could make its way to the United States late this year, but it was not something that was set in stone by Tesla. The company definitely needs to establish something in the SUV market that is larger than the Model Y, and the Model Y L might be the answer.

Even still, there are consumers out there who would love Tesla to develop something even larger, like a competitor to the Tahoe or Expedition. Tesla has not really given much of an indication that it will go in that direction.

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Tesla is using vehicle microphones to improve build quality: here’s how

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Credit: Tesla

Tesla is using the vehicles’ internal microphones to improve build quality, Vice President of Engineering Lars Moravy revealed recently.

It’s no secret that Tesla is always finding ways to make its manufacturing operations more efficient, accurate, and valuable. Constantly trying to make its cars better, the company has never placed any restrictions on what it will do to improve everything from panel gaps to paint.

As Teslas have been driving autonomously on the property of the Gigafactory Texas plant for a while now, Moravy revealed to Herbert Ong in a new interview that cars rolling off production lines now autonomously navigate themselves through a bumps, squeaks, and rattles (BSR) portion of the line. This helps to identify any loose or improperly installed internal parts.

The cabin’s microphones, which are used for a variety of things in ownership, simultaneously monitor any noises inside the vehicle while it rolls through the BSR portion of the production line. Moravy actually revealed that Tesla is trying to build “Full Self-Hearing,” an AI system that will detect minor imperfections so they can be corrected before delivery.

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It’s no secret that build quality is something that Tesla struggled with as it scaled to a fully massive production operation that manufactures over 1.6 million vehicles per year. However, in recent years, especially, there have not been as many complaints. Tesla has truly improved upon its build quality and paint quality over the past several years, especially in the U.S.

Tesla’s ‘megacasts’ are key to massive build quality improvements

While those improvements have been evident, there are still some complaints; no automaker is perfect with this. But this step will now ensure that every single car that rolls off the production lines at Gigafactory Texas will be void of any creaks, squeaks, or squeals when it leaves the factory.

This measure is one of the most unique we’ve seen in terms of a strategy to avoid build quality issues, but it is not exclusive to Tesla.

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Ford uses acoustic analysis AI to find abnormalities in seat motors, climate control units, and other components. Suppliers and OEMs will also use microphone arrays or particle velocity sensors in end-of-line stations.

The full interview with Lars Moravy is available below:

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Investor's Corner

Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent

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Tesla (NASDAQ: TSLA) beat Wall Street expectations of 406,000 vehicles delivered in Q2 by reporting 480,126 deliveries for the three months ending in June.

Tesla reported it delivered 467,762  Model 3 and Model Y units, while 12,364 Model S, Model X, and Cybertrucks switched hands during the quarter. The Model S and Model X were officially sunset this past quarter and will no longer be part of the company’s Production & Delivery reports moving forward.

The quarter is a pleasant surprise and a good rebound from Q1, when Tesla slightly missed the Wall Street consensus of 365,645 cars by reporting 358,023 deliveries for the first three motnhs of the year.

Energy storage deployments also provided some strength in Tesla’s delivery report, hitting 13.5 GWh for Q2. This is a particular division of Tesla’s business that has been overwhelmingly robust over the past few years, truly being a strong point of the company’s overall model.

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For the year, Tesla analysts still predict deliveries to trend in the 1.69 million unit region, a modest 3 to 5 percent increase from the 1.64 million cars the company delivered last year. Tesla will likely return to more sequential and noticeable year-over-year growth as the Cybercab project starts to ramp up considerably in the next few years.

Tesla has some other potential catalysts to spur vehicle deliveries, too. Not only is it expecting Cybercab to truly start making a change in the next few years, but other vehicles could be entering the company’s lineup.

Tesla sends production Cybercab with no steering wheel, pedals to on-road testing

The slightly longer Model Y L has been a highly speculated release candidate in the U.S. It has already done incredibly well in China, and U.S. buyers have been wanting slightly more interior space than the Model Y. Now that the Model X is gone, it is more needed than ever.

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Q2 highlights a pretty stable automotive division within Tesla, and no true concerns arise from these figures, especially considering it managed to beat expectations convincingly.

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