Connect with us

News

Gassed Up: Prices at the pump fall, unlike Tesla’s delivery numbers

Minnesota is experiencing some of the lowest gas prices in recent memory because of COVID-19. (Credit: YouTube | WCCO - CBS Minnesota

Published

on

Welcome to a FREE preview of our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future. 

A big thanks to our long-time supporters and new subscribers! Thank you.

This week, it came to my attention when driving by my local Sheetz gas station (if you’re ever in the vicinity of one, get the Chicken Tender sub) that gas prices are getting low. Low in the sense that it is much lower than the typical $2.79 that I see on the sign. When they’re sitting at $2.09, it makes me interested in why, especially considering my county and, more specifically, my entire state of Pennsylvania is on a “Stay at Home” order currently. Prices are low, but nobody is driving. When I travel to my Dad’s house or to go on a hike at a local trail, my commute time is typically anywhere from 2-5 minutes quicker as I am not forced to deal with an excess amount of cars on the road.

Advertisement

Most would think that these low gas prices would entice some to buy that vehicle they’ve always wanted—the gas-guzzling truck, maybe that petrol-pounding sports car. Who knows, people want different things. But you’d think low prices would lead to higher petrol-powered sales, and it isn’t. Teslas continue to sell, and they’re selling in record numbers.

But what’s interesting to me is the fact that nobody is driving, and nobody is buying cars. Yet, the overwhelming appeal of low gas prices, combined with the new oh-so-brilliant rollback on emissions that I wrote about last week, is making cars cheaper. With people out of work, there are still people out there getting paid, and some could be interested in buying cars. After all, Tesla owners are, because the company just had its best Q1 yet.

With showrooms of the world’s most popular automakers becoming more and more bloated, inventories rising above what a building can contain, and salespeople out of work, the LA Times says that manufacturers and showroom managers alike are ready to cut a deal. No cars moving out of the building is costing some companies hundreds of thousands of dollars a day. Service is where dealerships make their money, and that is, in reality, how some are managing to survive.

Unless, of course, there was a way that a carmaker could have customers order vehicles over the internet or phone. Then, that vehicle could be built to the buyer’s exact specifications and delivered or picked up without ever needed to come in contact with another human being. Oh, wait. This sounds familiar!

Advertisement

Tesla’s contactless delivery process has helped the company continue delivering vehicles to customers. While COVID-19 shut down some stores and provided barriers for delivery in others, Tesla found a way to work around that. The process was documented on our site a few weeks ago, and it showed that the company’s deliveries could continue without human-to-human contact.

According to the same LA Times article I talked about earlier, a Chevy dealership is “delivering” cars to people’s houses in a safe way. I’ll give credit where credit is due, and that’s a great way to adapt to the changing world we live in.

But as gas vehicles should appeal to people now more than ever because of low fuel prices, there’s plenty of evidence that suggests the tide is changing in favor of electric forms of transportation.

Let’s think about this:

Advertisement

1. Dealerships and petrol car manufacturers require government assistance to stay open. These businesses are laying off massive amounts of people, and they can’t afford to pay them currently at all. Their buildings are shut down, some dealerships are not running currently, and people are not buying gas vehicles anyway.

2. Tesla just released its Q1 2020 numbers. Despite Giga Shanghai being closed for an extended period, and Fremont being closed for the final week of the first quarter (which is where the company seems to push out massive amounts of vehicles to maximize delivery numbers), the company still had its biggest Q1 as a company. Eighty-eight thousand four hundred vehicles delivered in total, well above Wall Street’s estimates.

It is fair to assume a decent amount of these 88,400 cars were delivered before things got dicey here in the United States. Even still, Tesla has a lot to be proud of here.

I think all of us expected a slow Q1, and we all thought it was understandable. Even if things would have been even more impressive if deliveries and production were not affected by COVID, there is still a lot to be happy about. The whole situation is quite impressive, and it seems that Tesla’s ability to adapt to situations has led to its mass-appeal to car buyers.

Advertisement

Join me next week as I go ‘Beyond the News’ and give you my take on the current state of the industry and beyond.

Could it be that COVID is helping Tesla in a way? Not only is the big picture of environmental sustainability being answered through the lack of cars on the road, but the numbers suggest Tesla vehicles are being bought while gas cars are not. How is it that a car company could post its most impressive first quarter amidst a situation that has done nothing but hurt every other company in the world? The proof is in the pudding, and Tesla’s adaptability seems to be appealing to car buyers.

I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!

-Joey

Advertisement

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

Advertisement
Comments

Elon Musk

Tesla Full Self-Driving’s newest behavior is the perfect answer to aggressive cars

According to a recent video, it now appears the suite will automatically pull over if there is a tailgater on your bumper, the most ideal solution for when a driver is riding your bumper.

Published

on

Credit: Tesla

Tesla Full Self-Driving appears to have a new behavior that is the perfect answer to aggressive drivers.

According to a recent video, it now appears the suite will automatically pull over if there is a tailgater on your bumper, the most ideal solution for when a driver is riding your bumper.

With FSD’s constantly-changing Speed Profiles, it seems as if this solution could help eliminate the need to tinker with driving modes from the person in the driver’s seat. This tends to be one of my biggest complaints from FSD at times.

A video posted on X shows a Tesla on Full Self-Driving pulling over to the shoulder on windy, wet roads after another car seemed to be following it quite aggressively. The car looks to have automatically sensed that the vehicle behind it was in a bit of a hurry, so FSD determined that pulling over and letting it by was the best idea:

Advertisement

Advertisement

We can see from the clip that there was no human intervention to pull over to the side, as the driver’s hands are stationary and never interfere with the turn signal stalk.

This can be used to override some of the decisions FSD makes, and is a great way to get things back on track if the semi-autonomous functionality tries to do something that is either unneeded or not included in the routing on the in-car Nav.

FSD tends to move over for faster traffic on the interstate when there are multiple lanes. On two-lane highways, it will pass slower cars using the left lane. When faster traffic is behind a Tesla on FSD, the vehicle will move back over to the right lane, the correct behavior in a scenario like this.

Perhaps one of my biggest complaints at times with Full Self-Driving, especially from version to version, is how much tinkering Tesla does with Speed Profiles. One minute, they’re suitable for driving on local roads, the next, they’re either too fast or too slow.

Advertisement

When they are too slow, most of us just shift up into a faster setting, but at times, even that’s not enough, see below:

Advertisement

There are times when it feels like it would be suitable for the car to just pull over and let the vehicle that is traveling behind pass. This, at least up until this point, it appears, was something that required human intervention.

Now, it looks like Tesla is trying to get FSD to a point where it just knows that it should probably get out of the way.

Continue Reading

Elon Musk

Tesla Megapack powers $1.1B AI data center project in Brazil

By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.

Published

on

Credit: Tesla

Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.

The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.

According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.

“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”

Advertisement

By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.

“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.

The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.

The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.

Advertisement
Continue Reading

Elon Musk

Starlink powers Europe’s first satellite-to-phone service with O2 partnership

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.

Published

on

Credit: SpaceX

Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.

The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.

Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.

The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.

Advertisement

By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.

Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.

Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.

For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.

Advertisement
Continue Reading