

News
Tesla China pushes back MIC Model 3 deliveries amid coronavirus outbreak
As the novel coronavirus outbreak continues in China, Tesla has opted to postpone MIC Model 3 deliveries scheduled for February, at least until the situation in the country improves. The update was related by Tesla China VP for External Affairs Grace Tao Lin, who noted on Weibo that MIC Model 3 deliveries will likely be pushed back, perhaps as far back as the third quarter of 2020.
Giga Shanghai currently has a run rate of 3,000 Model 3s per week and is poised to hit an annual production rate of 150,000 vehicles. The company has also launched the Model Y program in the country. With these in mind, the recently-announced delays will likely set back the ramp of the locally-made Model 3, while potentially pushing back the Model Y program in the country.
Interestingly enough, Tesla has noted that it does not expect a big financial hit in China due to the coronavirus outbreak. This is because the MIC Model 3 only represents a small fraction of the company’s quarterly profits, according to Tesla’s finance chief Zach Kirkhorn during the company’s Q4 2019 earnings call.
Analysts currently expect markets to underperform because of the ongoing coronavirus outbreak. However, Tesla seems to be defying the odds so far. This week, the Tesla stock continued to soar, with the Silicon Valley-based electric carmaker surpassing the current valuation of Volkswagen and BMW combined on Monday. Tesla’s price per share hit past $900 and settled at $887.06 when the market closed on Tuesday
The real impact of production delays and supply chain issues might be felt soon though if the closure of factories across China will be stretched to mid-March. Automotive research firm IHS Markit estimates that carmakers may lose about 1.7 million units during the first quarter of 2020. This corresponds to a 32.3% decline from the firm’s initial estimates.
“In this scenario, we might expect the potential of a China-wide supply chain disruption caused by parts shortages from Hubei, a major component hub — and adjacent province closures for the majority of the month of February as a result,” IHS Markit wrote in a press release.
The Shanghai government has ordered the shutdown of companies in the city, including Giga Shanghai, amid the coronavirus outbreak. Government and private companies are not allowed to resume operations before Feb. 9. Prior to the suspension of work, the government has also extended the Lunar New Year holidays to help control the spread of the 2019-nCOV that started in Wuhan, a city about 9 hours away by car from Shanghai.
Tesla is not the sole automaker that is being affected by the ongoing outbreak. Hyundai, Toyota, Ford, Nissan, Volkswagen, Daimler, and Continental have also shut down their respective factories in China due to the virus.
Based on the latest updates, there are more than 24,000 people infected by the coronavirus that causes fever, serious respiratory illness, impaired liver function, and kidney failure. As of Wednesday local time, there have been 490 deaths reported in connection to the virus. The World Health Organization has declared the outbreak, which has infected people in 25 countries, a public health emergency. The United States and several countries have also implemented travel bans to and from China.
In response to the coronavirus outbreak, Tesla China has offered local customers free Supercharging for an indefinite time to make traveling easier for drivers who reside in areas affected by the outbreak.
Amid the public health scare, Tesla has continued to provide customer support through Douyin, China’s version of TikTok. Tesla sales staff from certain experience centers live-streamed tours of the Made-in-China Model 3 and entertained questions from potential buyers. The company has also posted schedules of the live streams that interested consumers can join via Douyin.
Meanwhile, Tesla owners in China united to raise 123,000 yuan or about $17,500 to purchase N95 masks, surgical masks, and sets of protective clothing that they plan to donate to different hospitals treating patients infected by the coronavirus. Tesla has also donated 5 million yuan or more than $700,000 to assist the government and other institutions involved in disease control.
The recent news from China appears to have weighed down on Tesla stock. As of writing, TSLA stock is trading
News
This signature Tesla feature is facing a ban in one of its biggest markets
The report indicates that Chinese government agencies have concerns “about failure rates and safety issues with the flush design.”

A signature Tesla feature is under fire in one of the company’s largest markets, as regulators in one EV hot spot are mulling the potential ban of a design the automaker implemented on some of its vehicles.
Tesla pioneered the pop-out door handle on its Model S back in 2012, and CEO Elon Musk felt the self-presenting design was a great way to feel like “you’re part of the future.”
It is something that is still present on current Model S designs, while other vehicles in the Tesla lineup have a variety of handle aesthetics.
According to Chinese media outlet Mingjing Pro, the company, along with others using similar technology, is facing scrutiny on the design as regulators consider a ban on the mechanism. These restrictions would impact other companies that have utilized pop-out handles on their own designs; Tesla would not be the only company forced to make changes.
The report indicates that Chinese government agencies have concerns “about failure rates and safety issues with the flush design.”
However, EVs are designed to be as aerodynamically efficient as possible, which is the main reason for this design. It is also the reason that many EVs utilize wheel covers, and sleek and flowing shapes.
However, the Chinese government is not convinced, as they stated the aerodynamic improvements are “minimal,” and safety issues are “significantly elevated,” according to The Independent.
The issue also seems to be focused on how effective the handle design is. According to data, one EV manufacturer, which was not specified in the report, has 12 percent of its total repairs are door handle failure fixes.
There are also concerns about the handles short-circuiting, leaving passengers trapped within cars. Tesla has implemented emergency latch releases in its vehicles that would prevent passengers from getting stuck in their cars in cases of electric malfunctions or failures.
However, evidence from the Chinese Insurance Automotive Technology Research Institute (C-IASI) suggests that 33 percent of door handles using this design fail to function after a side impact.
Obviously, Tesla and other automakers could introduce an alternative design to those vehicles that are affected by the potential restrictions China intends to impose. The regulation would take effect in July 2027.
News
Tesla is bailing out Canadian automakers once again: here’s how

Tesla is bailing out Canadian automakers once again, as some companies in the country are consistently failing to reach mandated minimum sales targets for emission-free vehicles.
Many countries and regions across the world have enacted mandates that require car companies to sell a certain percentage of electric powertrains each year in an effort to make sustainable transportation more popular.
These mandates are specifically to help reduce the environmental impacts of gas-powered cars. In Canada, 20 percent of new car sales in the 2026 model year must be of an emissions-free powertrain. This number will eventually increase to 100 percent of sales by 2030, or else automakers will pay a substantial fine — $20,000 per vehicle.
There is a way companies can avoid fines, and it involves purchasing credits from companies that have a surplus of emissions-free sales.
Tesla is the only company with this surplus, so it will be bailing out a significant number of other automakers that have fallen short of reaching their emissions targets.
Brian Kingston, CEO of the Canadian Vehicle Manufacturers’ Association, said (via Yahoo):
“The only manufacturer that would have a surplus of credits is Tesla, because all they do is sell electric vehicles. A manufacturer has to enter into an agreement with them to purchase credits to help them meet the mandate.”
Tesla has made just over $1 billion this year alone in automotive regulatory credits, which is revenue acquired from selling these to lagging car companies. Kingstone believes Tesla could be looking at roughly $3 billion in credit purchases to comply with the global regulations.
Tesla still poised to earn $3B in ZEV credits this year: Piper Sandler
Automakers operating in Canada are not putting in a lack of effort, but their slow pace in gaining traction in the EV space is a more relevant issue. Execution is where these companies are falling short, and Tesla is a beneficiary of their slow progress.
Kingston doesn’t believe the mandates are necessarily constructive:
“We’ve seen over $40 billion in new investment into Canada since 2020 and all signs were pointing to the automotive industry thriving. Now the federal government has regulations that specifically punishes companies that have a footprint here, requiring them to purchase credits from a company that has a minimal (Canadian) footprint and an almost nonexistent employee base.”
Kingston raises a valid point, but it is hard to see how Tesla is to blame for the issue of other car companies struggling to bring attractive, high-tech, and effective electric powertrains to market.
Tesla has continued to establish itself as the most technologically advanced company in terms of EVs and its tech, as it still offers the best product and has also established the most widespread charging infrastructure globally.
This is not to say other companies do not have good products. In my personal experience, Teslas are just more user-friendly, intuitive, and convenient.
Cybertruck
Tesla ditches key Cybertruck charging feature for very obvious reason
“Wireless charging something as far off the ground as the [Cybertruck] is silly.”

Tesla is officially ditching the development of a key Cybertruck charging feature, and the reason is very obvious, all things considered.
The Cybertruck is among the most unique vehicles available on the market, and, like all Tesla vehicles, it has continued to improve through Over-the-Air software updates that enhance performance, safety, and other technological features.
However, the development of some features, while great on paper, turns out to be more difficult than expected. One of these features is the presence of wireless charging on the all-electric pickup, a capability Tesla has been working to integrate across its entire vehicle lineup.
Tesla wireless charging patent revealed ahead of Robotaxi unveiling event
Most people who have used wireless charging for their phones or other devices have realized it is not as effective as plugging into a cord or cable. This is even relevant with Tesla vehicles, as the introduction of wireless charging for smartphones within the vehicles has been a nice feature, but not as impactful as many would hope.
It’s not necessarily Tesla’s fault, either. Wireless charging is a complex technology because much of the energy intended to be transferred to the phone is lost through heat.
Instead of the energy being stored in the battery, it is lost on the outside of the phone, which is why it becomes warm to the touch after sitting on a charging mat.
This is something that Tesla is likely trying to resolve with its vehicles before rolling out inductive charging to owners. The company has confirmed that it is working on a wireless charging solution, but it has yet to be released.
However, this feature will not be coming to the Cybertruck. Wes Morrill, the Cybertruck’s lead engineer, said that the vehicle’s height makes wireless charging “silly,” according to Not a Tesla App:
“Wireless charging something as far off the ground as the CT is silly.”
This is something that could impact future vehicle designs; the Cybertruck might not be the only higher-ground clearance vehicle Tesla plans to offer to customers. Therefore, being transparent about a design’s capabilities, or even developing technology that would enable this, would be useful to potential buyers.
At this point, wireless charging seems like it would be more advantageous for home charging than anything.
Due to its current inefficiency, it would likely be a great way to enable seamless charging in a garage or residential parking space, rather than something like a public charger where people are looking to plug and go in as little time as possible.
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