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BMW CFO downbeat about electric cars and their ability to generate profit

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BMW chief financial officer Friedrich Eichiner was downbeat about electric cars when he spoke to reporters in Lisbon last week. “We’ve learned that people aren’t prepared to pay a higher price for an electric vehicle. I don’t see some kind of disruptive element coming from electric cars that would prompt sales to go up quickly in the next five to six years.” This is in spite of recent reports that German Minister of Economic Affairs has called for a joint effort by European car makers to produce batteries for electric vehicles in Germany and Europe.

Eichiner says it will take seven years to double the energy density of batteries for electric cars. Until then, “We simply have to walk through the valley of tears,” Stefan Juraschek, vice president of electric powertrain development, told reporters at a briefing at a BMW testing facility in Munich recently. That’s what he says it will take before his company will be able to make money selling battery powered cars.

The conundrum, Juraschek says, is that buyers expect EVs to have longer range and sell for less money. He thinks electric cars will not go mainstream until battery technology improves significantly. “There’s a clear trend to bigger electric cars and longer driving ranges,” Juraschek told the press. The statement is in line with a recent poll suggesting that would-be EV buyers prefer longer battery range over short range but with ultra-fast charging times.

One way around the limitations of current battery technology is to make plug-in hybrid cars. BMW presented a plug-in hybrid MINI Countryman at the Los Angeles auto show last month. It also has added plug-in powertrains to its 3 Series sedan, X5 SUV, and 7 Series sedans. It has plans for a battery electric version of the MINI and the X3 compact crossover SUV but not until 2019.

Plug-ins do not have the same green car credentials as battery electrics, but BMW is hoping they will allow it to cap spending while it pushes the boundaries of autonomous and connected cars. It’s iNext self-driving car is scheduled to come to market in 2021.

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BMW’s complaint about the slow pace of battery development seems to run counter to Tesla’s experience. In one year, it doubled the storage capacity of its Powerwall residential battery, added an integrated inverter and lowered the price. It has also consistently pushed the limits of its batteries for the Model S and Model X, finding ways to increase energy density while keeping the size of the overall battery pack the same. Its latest product, the company’s newest 100 kWh battery pack with upgraded liquid cooling seems to prove that advances in battery technology are not quite the “valley of tears” BMW suggests.

Source: Bloomberg
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Elon Musk

Elon Musk says this essential Tesla Robotaxi feature will be here soon

Tesla will work to solve automatic parking at available Supercharger stalls with future updates.

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Credit: Tesla

Elon Musk reiterated that one feature, which is ultimately an essential part of the operation of the Tesla Robotaxi platform, will be here soon.

Tesla released a new video of its longest Full Self-Driving demo yesterday, showing off a zero-intervention drive from San Francisco to Los Angeles. The drive is roughly seven hours and 360 miles long, and not a single need for the driver to touch the wheel was recorded.

Tesla flexes its most impressive and longest Full Self-Driving demo yet

There was one question that was brought up by an owner that brings up an interesting point. Tesla still needs to solve the vehicle’s ability to pull into Superchargers automatically, something that does not currently have a high success rate, at least for the owner who got a response from CEO Elon Musk.

Musk assured him that a Tesla’s ability to pull into open parking spaces at Superchargers would be more reliable with future software updates. Owners can see how many and which exact stalls are available before traveling to a Supercharger, so Teslas should be able to identify these stalls and pull in automatically:

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This is a small part of what will be imperative for the charging experience when Robotaxi launches in the coming years. Tesla plans to enable customer-owned cars to potentially enter the Robotaxi fleet and become an autonomous ride-sharing vehicle by next year.

However, it still needs to figure out autonomous charging. There are two parts to that process: pulling into the spot and charging without human need to connect the Supercharger to the vehicle.

Tesla used to consider a robotic snake-arm charger for this, but it has talked about induction charging more recently. Wireless charging seems to be the route that Tesla plans to go, but it might take some time to resolve the energy loss issue and make it an efficient charging method.

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Tesla flexes Robotaxi wireless charging — autonomy from top to bottom

Tesla has said its wireless charging efficiency is “well above 90 percent.”

Nevertheless, Tesla is still working toward figuring out all of the edge cases of Robotaxi operation. Figuring out charging without the need of a human is just one part of the puzzle it still has yet to solve, but with its improvements over the past few years, there’s no doubt Tesla will find the missing piece.

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Tesla Superchargers get massive nod in new study showing reliability

It showed Tesla Superchargers had the highest score on the 1,000-point scale with 709. They also had the highest reliability, as respondents reported they only had failed charging visits at Tesla Superchargers four percent of the time.

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tesla supercharger
Credit: Tesla

Tesla Superchargers got a massive nod in a new study that showed reliability across EV charging suppliers as electric car ownership in the United States continues to grow.

J.D. Power’s 2025 U.S. Electric Vehicle Experience Public Charging Study aims to find the most (and least) reliable charging suppliers for EV owners.

While charging has become much more popular over the past few years, thanks to the increase in sales of electric vehicles, they are still not quite as plentiful as gas pumps for combustion engine cars.

Tesla is rolling out a new ‘Supercharger queue’ in an effort to end one issue

For this fact alone, it is imperative that EV charging companies offer a fast and reliable product that will enable confidence and peace of mind for car owners. There are quite a few companies out there, but Tesla has the most expansive charging network, not only in the U.S., but globally.

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It also has the most reliable chargers, a fact that was reiterated in this year’s J.D. Power study, which was released today.

It showed Tesla Superchargers had the highest score on the 1,000-point scale with 709. They also had the highest reliability, as respondents reported they only had failed charging visits at Tesla Superchargers four percent of the time. This beat out Electrify America at six percent, Red E at 10 percent, and EVgo and 12 percent.

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These companies were the only ones to report failed charging visits below the average.

Tesla’s 709 score on the 1,000-point scale was a 22-point drop from last year, but the study said that most of the complaints came from non-Tesla owners.

Many non-Tesla EVs now have access to the company’s Supercharging Network, and the complaints came from those drivers as they stated the process and payment were not as streamlined for them.

Brent Gruber, Executive Director of the EV practice at J.D. Power, said:

“Tesla has facilitated an experience for its owners by creating an optimal technical environment that makes the charging process very easy to use and complete payments. That process isn’t quite as streamlined for non-Tesla owners.”

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This likely came from the increased per-kilowatt-hour rate that non-Tesla owners are required to pay for having access to the company’s massive charging network.

For Tesla owners, reliability is not much of a concern. Apart from vandalism, it is pretty rare that a Supercharger stall is out of service, but, of course, it happens.

The important thing to note is that this study continues to show Tesla’s focus on keeping its charging network up and running, especially now that non-Tesla owners are able to utilize them.

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Investor's Corner

Deutsche Bank boosts Tesla (TSLA) stake by 20.8% to over $2.6 billion

The German banking giant now owns 10,076,461 Tesla shares.

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Credit: Tesla China

Deutsche Bank AG has significantly increased its position in Tesla (NASDAQ: TSLA), boosting its stake by 20.8% in the first quarter. 

The German banking giant now owns 10,076,461 Tesla shares, an additional 1,733,531 shares compared to the previous quarter, valued at roughly $2.61 billion. 

A top holding

As noted in a report from MarketBeat, Tesla now represents about 1% of Deutsche Bank’s overall investment portfolio, making it the firm’s 13th-largest holding. This also means that Deutsche Bank now owns 0.31% of the electric vehicle maker, at least as of its most recent SEC filing.

Tesla shares are typically volatile, and they are still being traded actively, with an average trading volume of 104.7 million. As of writing, Tesla has a market capitalization of around $1.11 trillion, making it the biggest automaker in the world by far.

Institutional investors

Deutsche Bank is not the only firm that has been increasing its stake in TSLA. Charles Schwab Investment Management raised its Tesla holdings by 4.9% in Q1, resulting in the firm now controlling over 18.17 million shares worth $4.71 billion. Evolution Wealth Advisors also increased its Tesla stake by 85.7% to over 13,000 shares.

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Overall, institutional support for Tesla remains robust, with 66.2% of the company’s stock held by hedge funds and other large investors.

TSLA stock has been seeing some momentum as of late, amidst reports that the electric vehicle maker is making progress in several of its key initiatives. Tesla’s Robotaxi business in Austin and the Bay Area is expanding well, and Elon Musk recently announced that FSD V14 should be released soon to consumers. Tesla China is also expected to launch the Model Y L, a six-seat extended wheelbase version of its best-selling car, before the end of the third quarter.

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