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Norway saves Tesla’s stock prices

Norway helps Tesla gain an extra 6% at trading and will help meet its delivery estimates

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Tesla Model S SnowIt’s funny to think a disruptive electric vehicle (EV) Californian startup can not only get under the skin of the biggest automakers in the U.S., but would find some of its biggest success in a country known for its harsh cold weather, Norway.

Norway is red hot for Tesla Motors

Norway has the hots for Tesla Motors and shows a serious love for electric vehicles (EV) than even our fair weathered states in the U.S.. Norway helped push Tesla’s shares by more than 6% on Wednesday, sending analyst scratching their heads once more. To put this into context, the over-value of Tesla’s shares (TSLA) has attracted criticism, even from Elon Musk. This has raised serious red flags for investors, most of which have flocked en masse to buy shares, thus further raising its price.

Gigafactory sends analysts into a frenzy

It would be fair to say that news of the Gigafactory sent analysts through the roof with negative comments and recommendations. Tesla stocks spiked to a dizzying $265, then fell to $203 in a month to finally stabilize at $230 currently. According to Seeking Alpha, Tesla’s production is expected to out-pace its deliveries in the first quarter of this year. In other words, as Tesla moves more vehicles around, thanks to its European and Asian markets, the European sales will be very important for the company and its valuation.

Analysts predict the future through equations. Yet a closer look at their track record shows they don’t always get it right. In fact, they rarely do. Not too many predicted the 2005 real estate crash, and even less predicted the 2008 economic nightmare. Analysts get carried away as investors unnaturally inflating stock prices beyond their realistic values. Still, if the Gigafactory is exciting, it raises a lot of valid economic questions.

Playing the Tesla number game

In a recent report from StreetInsider , Tesla nearly reached 1,500 deliveries in Norway during March. This is up from just 563 in the first two months of 2014 and the report shows it delivered 2,057 vehicles in Norway this year so far, compared to under 2,000 all of 2013 in Norway. Tesla has already outpaced last year’s total and could be well on track to meet its estimates.

If Tesla expects 35,000 deliveries in 2014, it needs to increase its production rate, since only 6,500 deliveries were expected in the first quarter of the year. This means in order for the company to achieve its 35,000 Model S target, it would need to reach 6,500 deliveries in the first quarter, followed by 7,500 in the second quarter and 9,500 in the third quarter, and finally 11,500 in the last quarter. You can see this is a lot, even for Tesla Motors.

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It’s exciting to see Tesla beat estimates. Many downplayed the company in its early years. Those of us backing Tesla since then were dismissed as idealists with no grasp on reality. Yet, reality has to start from somewhere, and that usually is through imagination. Tesla shows there is room for what we truly want and need to happen, that entrepreneurship is well and alive in the U.S..

Note: The author does not own any Tesla Motors stocks to his awareness, although has ETF shares, which can include any given stocks at any time.

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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.”

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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.

How to repair your Tesla Model S Door handle (DIY Kit)

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.

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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.

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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.

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Tesla is bailing out Canadian automakers once again: here’s how

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(Credit: Tesla)

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.

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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.

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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.

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Tesla ditches key Cybertruck charging feature for very obvious reason

“Wireless charging something as far off the ground as the [Cybertruck] is silly.”

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Credit: Tesla

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.

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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.”

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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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