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Mayor tied to Tesla Supercharger site questioned over ‘conflict of interest’

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Tesla Supercharger station in Aberdeen, Washington [Credit: Trebor Thickweb via app check-in]

He was young. Ambitious. Gifted. One of the greatest players to ever set foot on a professional baseball diamond, “Shoeless” Joe Jackson’s career ended in tatters for his alleged role in the infamous Chicago “Black Sox scandal” of 1919.

Call it a “conflict of interest.” It involved money. Lots of it.

Something else that involves money – lots of it – is afoot in Aberdeen, Washington: A Tesla Supercharger station and a “Gateway Center.” Aberdeen Mayor Erik Larson is a staunch proponent of both.

Updated: Mayor Larson fines himself $500 for violating the state’s conflict of interest ethics code

Mayor Larson is making the rounds looking for funding to help cover the costs of Gateway Center construction which is expected to cost upwards of $8M to complete, and incorporate Tesla’s Supercharger station into the design.

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Questions within the community are swirling around what appears to be a conflict of interest regarding the mayor’s involvement in the Tesla deal. Documents have surfaced showing that the mayor has, or had, a financial interest in the electric car company that’s building the Supercharger station, apparently while he was negotiating with the company to bring the project to a city-owned lot. Why the station is being built on publicly owned land rather than on a private site is also in question.

Background

Mayor Larson negotiated the original agreement with Tesla for the charging station, which could have cost the city up to $2,000 a month in utility bills. The lease agreement came before the Aberdeen City Council for approval last summer. Originally, the City of Aberdeen was on the hook for paying  electricity costs.

Tesla Supercharger station in Aberdeen, Washington during construction [Credit: Trebor Thickweb via app check-in]

As noted in the Aberdeen City Council meeting agenda dated July 13, 2016, the lease language at that time included (see page three):

“The Mayor has negotiated with Tesla Motors, Inc. for the construction of a Tesla supercharger station in Aberdeen on the city of the former Chevron station. The supercharger will be incorporated into the design of the Gateway Center. …  the city will also be responsible for… paying the utility bills for Tesla vehicles that use the charging station, up to monthly cap of $2,000 per month.” (Emphasis added.)

Reading further, Item 8 of that actual lease agreement specifies that:

“Tesla agrees to arrange for all Tesla-related utility services provided or used in or at the Premises… Tesla shall pay directly to the utility company the cost of installation of any all such Tesla-related utility services and shall arrange to have the utility service separately metered. (Counterparty) shall be responsible for paying all utility bills related to such meter after installation, including payment for electricity consumed at the Premises during the Term, up to two thousand dollars ($2,000) per month.” (Emphasis added.)

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Other Cities, Other Charging Stations

Tesla lease agreements with city governments aren’t new. Similar charging stations exist in five other Washington cities: Centralia, Burlington, Ellensburg, Kennewick, and Ritzville. There are eleven Supercharger stations in Oregon. All are located on either hotel/resort type private property or some other type of retail/outlet center. But the Aberdeen location is on a city-owned lot.

In California, two Supercharging stations on publicly owned property exist in Ukiah and Crescent City. But the terms negotiated by those cities for the stations are jarringly different from those negotiated for the Aberdeen site:

In Ukiah:

– “Tesla pays for the entire project, including staff time and utility costs.” (Ukiah Daily Journal, August 8, 2015.)

In Crescent City:

  • The city is being paid by the tenant for use of its property. A proposal by Recargo, Inc. to build and operate a universal electric vehicle charging station in Crescent City included a $4,800 annual payment from Recargo to the district for use of the property. (Del Norte Triplicate, October 11, 2016.)
  • “Essential components” of the city’s lease agreement with Tesla includes: “(1) the term, which is five years with two five-year options to renew, (2) Tesla will build and maintain the facility, and (3) the lease amount is one dollar per month.” (City of Crescent City Council Agenda Report, April 6, 2015.)
  • Tenant “agrees to arrange for and pay for all Tenant-related utility services provided or used in or at the Premises during the term of the Lease.” (#10 – Utilities – City of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)
  • “Tenant shall pay directly to the utility company the cost of installation of any and all such Tenant-related utility services and shall arrange to have the utility service separately metered.” (#10, UtilitiesCity of Crescent City Ground Lease for Tesla Supercharging Station, April 6, 2015.)

In Aberdeen:

  • The city (re: taxpayers) could get stuck with “up to 30,000 for the costs of installing the new infrastructure for the city” per the re-negotiated August agreement.

[Credit: Conservelocity]

Key items in the re-negotiated agreement between the city and Tesla include (Aberdeen City Council Meeting Agenda, August 24, 2016. See page 3):
  • The provision requiring the city to pay for electricity used by Tesla vehicles was removed.
  • The proposed new lease requires Tesla to pay for all costs of charging Tesla vehicles.
  • The lease also requires Tesla to install infrastructure “that would allow the city to add charging stations for other electric vehicles at some point in the future.”
  • The city “will reimburse Tesla up to $30,000 for the costs of installing the new infrastructure for the city.” (Emphasis added.)

According to minutes from the August 24, 2016 Aberdeen City Council Meeting, a motion to adopt the re-negotiated lease agreement carried.

An interesting wrinkle, as announced by Tesla on November 7, 2016, is that Tesla has decided to stop offering unlimited free use of its network fast-charging stations worldwide beginning this year.

So, other than hopes of helping “attract potential tenants to the center as the first project participant” and providing “nearby restaurants and retailers with additional business” per Mayor Larson, just how, exactly, does the supercharging station tangibly benefit Aberdeen taxpayers or offset “up to $30,000” in reimbursements to Tesla “for the costs of installing the new infrastructure for the city”?

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The Daily World reports that “A $30,000 grant will help Aberdeen reimburse Tesla for installing the station.” In light of the agreements hammered out with other cities for charging stations on public land, however, why is Aberdeen on the hook for reimbursing Tesla for any installation costs?

Another wrinkle:

According to an October 28, 2016 story in The Daily World, five Aberdeen sites were in the running as possible locations for the new Supercharger station, including the parking area for the Center. Larson explains:

“They (Tesla) could have easily worked with Gateway Mall or sought out private ownership, but they were interested in the Gateway Center parking lot.”

Why was a publicly owned site selected instead of a privately owned one? Is city government using public funds to compete with private business?

Additional questions swirl around Mayor Larson’s financial interest in Tesla Motors.

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Some questions:

  1. Did Mayor Larson disclose his financial interest/common stock in Tesla Motor Company anywhere other than on his 2015 and 2016 PDC F-1 forms?
  2. As a candidate, Mayor Larson reported his stock value as $4.5K – $23.9K. After he was elected, he reported the value as $24K – 47.9K. What’s up with that?
  3. The mayor apparently handled all negotiations with Tesla, even though he had/has a financial interest in the motor company (See PDC F-1 forms, above). Did the city know about his financial interest in this company? If so, did it okay the mayor as negotiator of the Tesla lease agreement anyway? Why?

Perhaps a contract negotiator sans an apparent financial interest in the project under negotiation might be a good idea?

While we’re raising questions, what of Shoeless Joe? After the Black Sox scandal, Jackson never set foot on a professional baseball diamond again. He was banned for life along with seven other Chicago players for their alleged involvement in intentionally throwing the 1919 World Series to the Cincinnati Reds. Jackson’s alleged involvement in the conspiracy is still the subject of hot debate. Some maintain that the only things Joe was guilty of were being young, ambitious, gifted, and a bit naive.

Ring any bells?

Kristine Lowder

This guest post was written by Kristine Lowder of Conservelocity. Do you have a post you’d like to share? Email it to us at info@teslarati.com

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Tesla Full Self-Driving impressions after three weeks of ownership

I will be fair and tell you all what I truly enjoy, as well as what frustrates me about Full Self-Driving.

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Credit: Joey Klender

Tesla Full Self-Driving is amongst the most robust and refined semi-autonomous driver assistance systems on the market today. After three weeks of ownership, I’ve driven around half of my miles using it, and my impressions put me right in the middle of it being very impressive and needing some work.

Of course, if it were perfect, it would be driving us all around all the time while we sleep, scroll our phones, or watch movies in the cockpit. It does a lot of things very well, and it has managed to impress everyone I’ve put in the passenger’s seat.

However, there are some things that are obvious pain points, situations that need improvement, and areas where I believe it has a long way to go. Regardless, these are things I have noticed, and they may differ from your opinions based on your location or traffic situations.

Tesla Model Y ownership two weeks in: what I love and what I don’t

I’ll try to keep it pretty even and just highlight the things that are truly noticeable with Full Self-Driving. I won’t be too critical of the things that it is bad at, and I won’t try to give it too much of a pat on the back.

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I will be fair and tell you all what I truly enjoy, as well as what frustrates me about it.

*Disclaimer: These Full Self-Driving examples were in use with v13.2.9.

Where Tesla Full Self-Driving is Great

Highway Driving

I have yet to have a critical intervention of any kind on the highway. I have driven on easy highways like Rt. 30 in Pennsylvania, and I have driven on congested four-lane parking lots like I-695 near Baltimore, Maryland.

Tesla FSD does a tremendous job on all of it. I usually use the “Hurry” setting of FSD with an offset of between 25 and 40 percent, depending on what I’m doing and where I’m going. Sometimes, I want to push it a bit, and at other times, I’m okay with taking my time and enjoying the drive.

I find the driving style of Hurry is more similar to the traffic around me than the Standard, which tends to drive like an 80-year-old on their way to Bingo.

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It does a great job of being considerate, maintaining an appropriate rate of travel, getting over for cars that are tailgating in the left lane after passing traffic, and it always is where it needs to be when it needs to be there.

Taking the Stress Out of Driving

A few nights ago, I was having some trouble sleeping, and I was up at 3 a.m. I decided it would be a good time to get up, grab a breakfast burrito and a coffee, and head to the Supercharger.

(If you don’t know, I do not have home charging, and I will be diving into EV ownership without that in a future article.)

I let FSD drive me to the Supercharger and back while I was done. I was able to enjoy a beautiful sunrise without having to focus all my attention on the traffic around me, while still maintaining enough attention to the road to keep the driver monitoring happy.

It was really nice. I enjoyed the ride, and it felt like I was in an Uber with a very careful driver while I enjoyed the rest of my coffee and peeked at the sky every few seconds.

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Learning and Improving

A few weeks ago, I approached an “Except Right Turn” stop sign. I have discussed how these are a Pennsylvania specialty, and the first time FSD encountered one in my Model Y, it stopped, even though we were heading right.

I took over, submitted a voice memo to Tesla about it, and went on with my evening. A week later, the car approached the same turn, and, to my surprise, it proceeded through the Stop Sign correctly, safely, and at an appropriate speed.

It was nice to see this improvement, especially since this is one of those regional issues that Tesla will need to address before FSD is fully autonomous. The change even impressed my Fiancé, who was with me during both instances we came upon this turn.

Where Tesla Full Self-Driving Could Be Better

Auto Wipers

Good gravy, these Auto Wipers always seem to give me a good laugh.

They never really have the right speed; they are either way too fast or not fast enough. There’s never been a happy medium.

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It also loves to activate a single wipe of the blade at the strangest times. I’ve noticed that it actually seems to activate at the same spots on the road sometimes. There’s a hanging branch near my house, and every time we go under it and FSD is activated, the wipers wipe once.

It would be nice to set your own intervals for the wipers, but I am okay with the current presets. I do hope the Auto Wipers improve, because it could be one of the best features the car has if it’s more accurate.

It Struggles with Signs That Require Reading

The “Except Right Turn” sign is one example, but another is a “Stop Here on Red” sign that is recessed from an intersection at a stop light if it’s a tighter turn. Recently, I had to slam on the brakes as it was headed straight through one of these signs.

It can recognize Stop Signs and Yield Signs, but signs with instructions for an intersection appear to present a greater challenge for FSD.

Sometimes, It Just Does Things I Don’t Like

There is a four-lane light near my house; the two right lanes go straight, but the lane furthest right is for turning into businesses past the intersection. Some people tend to go in that far right lane, even if they have no intention of turning right into the businesses, and take off quickly from the light to cut ahead.

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I’m not saying it’s illegal or even wrong, but I personally prefer not to do it. I am never in that much of a hurry.

FSD tried to do that the other day; I intervened and kept it in the lane that is designed to go straight. I wouldn’t say this is technically an intervention. I would just say it’s a move I wasn’t super comfortable with because I know people tend to get frustrated with those who cut the line. It’s an etiquette issue, and I didn’t want FSD to do it.

I also am not a huge fan of when there is no traffic in the right lane, yet it continues to cruise in the fast lane. I was taught to drive in the right lane and pass in the left lane. There are states where cruising in the left lane is illegal, and it sometimes tends to stay in the passing lane too long for my liking. I will turn on my right signal and get back into the correct lane.

These are totally disputable, and I am aware of that. Some people might not see a huge issue with these two examples, and I can understand that. My courtesy on the road differs from others, and that’s okay.

All in all, I’m pretty happy with FSD, and I will be continuing my Subscription after the three-month trial ends. In the coming days, I’ll be picking up a camera for FSD videos, and I’ll be able to embed examples of what I mean, as well as share full-length videos of my drive.

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Tesla gets price target increase on Wall Street, but it’s a head-scratcher

Delaney’s price target on Tesla shares went up to $395 from $300. Currently, Tesla is trading between $420 and $430, making the new price target from Goldman Sachs a bit of a head-scratcher.

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Credit: Cybertruck | X

Tesla (NASDAQ: TSLA) received a price target increase from a Wall Street analyst today, who noted in his report that the company’s shares could rise or fall based on its execution in robotics and autonomy.

However, the price target boost still fell below Tesla’s current trading levels.

Mark Delaney of Goldman Sachs said in a note to investors today that Tesla has a significant opportunity to solidify itself as one of the stable and safe plays in the market if it can execute on its two key projects: humanoid robots and autonomy.

In the note, Delaney said:

“If Tesla can have [an] outsized share in areas such as humanoid robotics and autonomy, then there could be upside to our price target.”

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Delaney’s price target on Tesla shares went up to $395 from $300. Currently, Tesla is trading between $420 and $430, making the new price target from Goldman Sachs a bit of a head-scratcher.

He went on to say that Tesla could also confront outside factors that would limit the stock’s ability to see growth, including competition and potentially its own lack of execution:

“…although if competition limits profits (as is happening with the ADAS market in China) or Tesla does not execute well, then there could be downside.”

The note is an interesting one because it seems to point out the blatantly obvious: if Tesla performs well, the stock will rise. If it doesn’t, the stock price will decline.

We discussed yesterday in an article that Tesla is one of the few stocks out there that does not seem to be influenced by financials or anything super concrete. Instead, it is more influenced by the narrative currently surrounding the company, rather than the technicals.

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Tesla called ‘biggest meme stock we’ve ever seen’ by Yale associate dean

Tesla’s prowess in robotics and autonomy is strong. In robotics, it has a very good sentiment following its Optimus project, and it has shown steady improvement with subsequent versions of the robot with each release.

On the autonomy front, Tesla is expanding its Robotaxi platform in Austin every few weeks, and also has a sizeable geofence in the Bay Area. Its Full Self-Driving suite is among the most robust in the world and is incredibly useful and accurate.

The company can gain significant value if it continues to refine the platform and eventually rolls out a driverless or unsupervised version of the Full Self-Driving suite.

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Elon Musk

Tesla addresses door handle complaints with simple engineering fix

“We’ll have a really good solution for that. I’m not worried about it.”

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Tesla Model S self-presenting door handle
Tesla Model S self-presenting door handle (Credit: TesBros)

Tesla is going to adjust one heavily scrutinized part of its vehicles after recent government agencies have launched probes into an issue stemming from complaints from owners.

Over the past few days, we have reported on the issues with Tesla’s door handle systems from both the Chinese and American governments.

In China, it dealt with the Model S, while the United States’ National Highway Traffic Safety Administration (NHTSA) reported nine complaints from owners experiencing issues with 2021 Model Ys, as some said they had trouble entering their car after the 12V battery was low on power.

Bloomberg, in an interview with Tesla Chief Designer Franz von Holzhausen, asked whether the company planned to adjust the door handle design to alleviate any concerns that regulatory agencies might have.

Regarding the interior latch concerns in the United States:

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  • Von Holzhausen said that, while a mechanical door release resolves this problem, Tesla plans to “combine the two” to help reduce stress in what he called “panic situations.”
  • He also added that “it’s in the cars now…The idea of combining the electronic and the manual one together in one button, I think, makes a lot of sense.” Franz said the muscle memory of reaching for the same button will be advantageous for children and anyone who is in an emergency.

Regarding the exterior door handle concerns in China:

  • Von Holzhausen said Tesla is reviewing the details of the regulation and confirmed, “We’ll have a really good solution for that. I’m not worried about it.”

The new Model Y already has emergency mechanical door release latches in the back, but combining them in future vehicles seems to be an ideal solution for other vehicles in Tesla’s lineup.

It will likely help Tesla avoid complaints from owners about not having an out in the event of a power outage or accident. It is a small engineering change that could be extremely valuable for future instances.

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