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Pressures mount for BMW as Tesla continues to lead US large luxury car market

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It’s a little early to predict that Tesla will drive the giant global automakers, one by one, into bankruptcy. However, there’s no question that some brands are already feeling the shockwaves from the electric automaker’s rise, especially in certain market segments.

Every automaker has its own mix of products, so the companies have varying degrees of exposure to the coming wave of disruption. As known Tesla bear Seeking Alpha argues, BMW could be in the most vulnerable position of all. Unlike the Big Three, BMW doesn’t sell pickup trucks, and unlike VW and the Asian carmakers, it doesn’t offer cheap entry-level runabouts (at least not in the US market). The Bavarian brand’s bread and butter consists of high-end sporty sedans and luxury SUVs – precisely the market segments in which Tesla is beginning to mop up the competition.

BMW’s troubles aren’t just theoretical – Seeking Alpha writer ValueAnalyst notes that sales of the company’s flagship sedan, the 7 Series (which BMW has produced since 1977), are in decline. As shown by tables from CarSalesBase.com, 7 Series sales jumped in 2016 after a redesign, but fell significantly in 2017. If current trends continue, yearly sales in the US for 2018 could see the lowest sales since 1992.

Tesla’s Model S has dominated the large luxury segment for a couple of years now, as a table from Statista makes clear. Tesla’s gains have come at the expense of legacy brands such as BMW and Mercedes, which has seen a year-to-date 15% drop in sales of its S Class.

Above: Large luxury car sales in the United States in 2016, by key model in units (Source: Statista)

The news could get worse for the German sedan-meisters. According to SA’s ValueAnalyst, there are several indications that Tesla may be planning another redesign of Model S, and the latest specs for the upcoming Semi and Roadster make it sound as if battery improvements may be on the way too. When Model 3 comes into its own, it’s expected to offer stiff competition for BMW’s best-selling 3 Series. Considering all these factors, ValueAnalyst believes that “BMW can very well face an existential risk as early as 2018.”

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In fact, in an earlier article entitled BMW Will Be the First to Go, ValueAnalyst characterized the company as “floundering in the face of severe competitive pressure and industry disruption.” BMW recently announced a $240-million investment in battery research, but that’s only a fraction of the billions that Tesla has invested over the last decade. “BMW may be years behind Tesla in battery technology.”

The company’s woes are not limited to competition from Tesla. Reuters recently reported that German prosecutors have begun an inquiry into allegations that BMW indulged in the same sort of diesel emissions shenanigans that have cost Volkswagen a few billion bucks. And BMW is in worse financial shape than VW was, with lots of debt and little cash on its balance sheet.

Taking it all into account, our Alpha Seeker expects BMW to be “the first traditional automaker to be significantly impacted by Tesla’s growth, as it has no segment that will not be under severe disruption by 2019.”

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Note: Article originally published on evannex.com, by Charles Morris

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Source: Seeking Alpha

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SpaceX aces Starship’s 11th launch with success in every mission objective

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Credit: SpaceX

SpaceX aces its eleventh Starship test launch on Monday evening, marking the company’s second consecutive takeoff that crossed off each of the planned mission objectives.

It was also the final launch of the V2 Starship rocket. The twelfth test flight will feature the larger V3 Starship rocket, followed by V4, which will eventually make the first trip to Mars.

The launch was overwhelmingly successful. In its 12th test flight, SpaceX was able to achieve every major mission objective, including the second successful deployment of Starlink satellite simulators and the relight of a Raptor engine while in space. The latter achievement demonstrated “a critical capability for future deorbit burns,” the company said.

The ship officially launched at 6:23 p.m. local time in Starbase, Texas, with all 33 engines igniting and sending the Ship to space.

Stage separation occurred just over eight minutes later, and Super Heavy started its descent back to the Gulf of America, where it successfully splashed down. The first part of the launch was complete.

Starlink simulators were deployed about twenty-one minutes after launch, as the Pez dispenser sent the faux-satellites out to space without any issue:

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Perhaps the most anticipated part of the launch was with Starship’s banking maneuver and subsequent splashdown in the Indian Ocean.

Prior to Starship 11’s launch and successful re-entry and splashdown, SpaceX had lost a few vehicles during this portion of the previous flights.

However, the company had made tremendous improvements and has now aced two consecutive launches. On Monday, its approach and splashdown were both overwhelmingly successful:

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The re-entry phase of this particular Starship launch aimed to gather data on the performance of the heatshield, SpaceX said. The heatshield was intentionally stressed to its limits to determine how much it could withstand without failing.

SpaceX will now turn its focus to the next vehicles, including V3, which is larger, more capable, and will help the company gather even more information about its launches into space:

CEO Elon Musk has said the third-generation Starship rocket will be built and tested by the end of the year.

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Tesla launches new color from Gigafactory Berlin

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Credit: Tesla

Tesla has launched a new color at Gigafactory Berlin in Germany, home of the company’s “world-class paint shop,” as Elon Musk once called it.

Bringing a new color to Tesla’s Model Y, there are now five available colors for those who will receive a vehicle from Gigafactory Berlin, with four of them being colors offered in other markets.

However, there is now one distinct color that is only available in Germany: Marine Blue.

Priced at €1,300, Marine Blue will cost the same as both Diamond Black and Stealth Grey, while Quicksilver and Ultra Red are available for double the price.

It is the third shade of blue Tesla offers across its lineup, as Deep Metallic Blue and Glacier Blue are also offered, but in other markets.

Tesla has routinely flexed Giga Berlin for having the most advanced paint shop throughout its factories, and it has produced some interesting colors over the past few years, some of which were truly awesome.

Tesla Giga Berlin is getting a world-class paint shop, new color ‘layers’ to come

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In 2020, Musk said, “Giga Berlin will have the world’s most advanced paint shop, with more layers of stunning colors that subtly change with curvature.”

He also detailed the company’s plans to upgrade the Fremont and Shanghai paint shops. Gigafactory Texas was not yet unveiled. Tesla has worked to improve those facilities, especially in Fremont.

It was able to roll out the new Diamond Black color earlier this year.

However, Giga Berlin seems to remain the standard in terms of paint for Tesla. It routinely offers new colors.

For example, back in 2022, Tesla rolled out its familiar Quicksilver color for the Model Y, while also introducing Midnight Cherry Red, a color close to burgundy. However, the company chose to discontinue the color after determining internally that customers no longer wanted to buy it.

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Midnight Cherry Red was removed as an option earlier this year, likely to make way for the development of the new Marine Blue.

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Tesla Autopilot visualization gets big upgrade with tons of new additions

The AP visualization shows up on the center touchscreen and illustrates the surroundings of the cars. It has gotten better in recent years, as it is able to outline types of vehicles, pedestrians, animals, and more.

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Credit: @greentheonly | X

Tesla’s Autopilot visualization just got a big upgrade as the company added tons of new additions to what it will be able to render in terms of a vehicle’s surroundings.

The AP visualization shows up on the center touchscreen and illustrates the surroundings of the cars. It has gotten better in recent years, as it is able to outline types of vehicles, pedestrians, animals, and more.

Tesla just fixed a four-year-old bug with Full Self-Driving visualization

However, it still does not have every single application, and acquiring them will take some time. If an object or vehicle is visible to the vehicle but an accurate render is not available, the car will instead pick whatever is closest.

For example, I passed an Amish family yesterday in Lancaster, PA, and instead of illustrating the horse and carriage, it simply showed a small box truck.

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In an effort to make the Autopilot and Full Self-Driving suites more robust and accurate, Tesla has added a substantial amount of vehicle renders, which will become available in the coming weeks.

The visualizations were found by Tesla hacker @greentheonly, who posted them on X.

The new visualization renders are:

  • Ambulance
  • Firetruck
  • Garbage Truck
  • Schoolbus
  • European Semi Truck
  • Golf Cart
  • Person on a Scooter
  • Person on a Skateboard
  • Stroller
  • Street Sweeper
  • Three-Wheeler
  • Trailer
  • Train
  • Tram
  • Person in a Wheelchair

Here is an image with all of the Autopilot visualization renders:

Credit: Green

The visualization is a crucial part of manual operation and can be considered a distinct advantage that Tesla has over other companies.

It continues to be an effort that Tesla invests heavily in, as it keeps refining the suite and making it more robust with additional visualizations and animations.

Recently, it was revealed that Tesla is planning to utilize Unreal Engine for driver visualization to create a realistic depiction of the vehicle’s environment. Tesla has not yet confirmed this, but coding found with the Model S and Model X showed it could be coming in the near future.

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