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Porsche exec credits Tesla for proving EV demand, reveals Taycan reservation details
Porsche Cars North America president and CEO Klaus Zellmer recently shared his insights about what he perceives to be the upcoming widespread adoption of electric cars. In an op-ed published on USA Today, Zellmer argued that the demand for electric vehicles is definite at this point, and it will only be a matter of time before the United States’ roads are filled with EVs.
While the Porsche CEO continues to prepare for the arrival of the Taycan, he nonetheless gave credit to Tesla for making “inroads” in the push for battery-electric vehicles. Zellmer argued that Tesla has all but proven that there is “significant demand” for electric cars, particularly those which combine sustainability with performance and design.
“Last year, the Model 3 outsold any other premium sedan in the US. We know that American consumers embrace new technology, especially if it delivers a new experience. And once a technology catches on, consumers respond well to expanded choice as competitors enter the field. Just look at how many models of SUV you can buy today, or the proliferation of smartphones since Apple introduced the iPhone in 2007,” he wrote.
Apart from the demand for electric vehicles being all but certain, the Porsche CEO added that the expansion of EV charging infrastructure is starting to hit its stride, as shown by the efforts of companies like Electrify America, ChargePoint, and EVgo. Zellmer also argued that electric cars are cleaner than they have ever been, thanks to a grid that is steadily becoming greener.
Nevertheless, perhaps the most notable sign for the Porsche CEO was the demand the German carmaker is seeing for its first modern all-electric vehicle, the Taycan. According to Zellmer, there is enough interest in the Taycan to fully account for Porsche’s production of the vehicle through late 2020.
“We already have enough interest to account for all the Taycans we expect to deliver in the US in the first year, through late 2020. That’s powerful, given that the final production model has yet to be unveiled. And the market potential is so strong that we just announced we will switch our best-selling model, the Macan compact SUV, to all-electric in the next few years,” he wrote.
A particularly interesting tidbit given by Zellner in his op-ed involves some details about the demographic that the Taycan has been attracting. The CEO mentioned that fewer than half of the Taycan’s reservation holders are current Porsche owners, but from those who are, the biggest single group own a Porsche 911, the company’s flagship vehicle.
“The fact that someone can love the sound and feel of an exhilarating flat-six gas engine and also be attracted to the silent power of a performance EV says volumes about the capacity of the US market for this new power train,” Zellmer stated.
Porsche is currently preparing for the launch of the Taycan, which is expected to be held this coming September. The final details of the vehicle are yet to be released by the company, though reports have emerged stating that the car will come in three variants: a base rear-wheel-drive Taycan that’s equipped with an 80 kWh battery pack, a mid-range Taycan 4S that’s fitted with a 96 kWh battery, and a top-of-the-line Taycan Turbo, which will also feature a 96 kWh battery. Recent reports have also hinted at possible upcoming variants for the vehicle, such as the Taycan Turbo S and a lighter, RWD Taycan GTS that will likely be optimized for track driving.
The full text of Porsche Cars North America CEO and president Klaus Zellmer insights on electric car adoption, Tesla, and the Taycan could be accessed here.
Tesla launched a new configuration of the Model Y this week, bringing more complexity to its lineup of the vehicle and adding a new, lower entry point for those who require an All-Wheel-Drive car.
However, the broadening of the Model Y lineup in the United States could signal a somewhat uncomfortable reality for Tesla fans and car buyers, who have been vocal about their desire for a larger, full-size SUV.
Tesla has essentially moved in the opposite direction through its closure of the Model X and its continuing expansion of a vehicle that fits the bill for many, but not all.
Tesla brings closure to Model Y moniker with launch of new trim level
While CEO Elon Musk has said that there is the potential for the Model Y L, a longer wheelbase configuration of the vehicle, to enter the U.S. market late this year, it is not a guarantee.
Instead, Tesla has prioritized the need to develop vehicles and trim levels that cater to the future rollout of the Robotaxi ride-hailing service and a fully autonomous future.
But the company could be missing out on a massive opportunity, as SUVs are a widely popular body style in the U.S., especially for families, as the tighter confines of compact SUVs do not support the needs of a large family.
Although there are other companies out there that manufacture this body style, many are interested in sticking with Tesla because of the excellent self-driving platform, expansive charging infrastructure, and software performance the vehicles offer.
Additionally, the lack of variety from an aesthetic and feature standpoint has caused a bit of monotony throughout the Model Y lineup. Although Premium options are available, those three configurations only differ in terms of range and performance, at least for the most part, and the differences are not substantial.
Minor Expansions of the Model Y Fail to Address Family Needs for Space
Offering similar trim levels with slight differences to cater to each consumer’s needs is important. However, these vehicles keep a constant: cargo space and seating capacity.
Larger families need something that would compete with vehicles like the Chevrolet Tahoe, Ford Expedition, or Cadillac Escalade, and while the Model X was its largest offering, that is going away.
Tesla could fix this issue partially with the rollout of the Model Y L in the U.S., but only if it plans to continue offering various Model Y vehicles and expanding on its offerings with that car specifically. There have been hints toward a Cyber-inspired SUV in the past, but those hints do not seem to be a drastic focus of the company, given its autonomy mission.
Model Y Expansion Doesn’t Boost Performance, Value, or Space
You can throw all the different badges, powertrains, and range ratings on the same vehicle, it does not mean it’s going to sell better. The Model Y was already the best-selling vehicle in the world on several occasions. Adding more configurations seems to be milking it.
The true need of people, especially now that the Model X is going away, is going to be space. What vehicle fits the bill of a growing family, or one that has already outgrown the Model Y?
Not Expanding the Lineup with a New Vehicle Could Be a Missed Opportunity
The U.S. is the world’s largest market for three-row SUVs, yet Tesla’s focus on tweaking the existing Model Y ignores this. This could potentially result in the Osborne Effect, as sales of current models without capturing new customers who need more seating and versatility.
Expansions of the current Model Y offerings risk adding production complexity without addressing core demands, and given that the Model Y L is already being produced in China, it seems like it would be a reasonable decision to build a similar line in Texas.
Listening to consumers means introducing either the Model Y L here, or bringing a new, modern design to the lineup in the form of a full-size SUV.
Elon Musk
Elon Musk reiterates Tesla Optimus’ most sci-fi potential yet
Musk shared his comments in a series of posts on social media platform X.
Elon Musk recently reiterated one of the most ambitious forecasts for Tesla’s humanoid robot, Optimus, stating it could become the first real-world example of a Von Neumann machine. He also noted once more that Optimus would be Tesla’s biggest product.
Musk shared his comments in a series of posts on social media platform X.
Optimus as a von Neumann machine
In response to a post on X that pondered on sci-fi timelines becoming real, Musk wrote that “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet.” In a separate post, Musk wrote that Optimus will be Tesla’s “biggest product ever,” a phrase he has used in the past to describe the humanoid robot’s importance to the electric vehicle maker.
A Von Neumann machine is a class of theoretical self-replicating systems originally proposed in the mid-20th century by the mathematician John von Neumann. In his concept, von Neumann described machines that could travel to other worlds, use local materials to create copies of themselves, and carry out large-scale tasks without outside intervention.
Elon Musk’s broader plans
Considering Musk’s comments, it appears that Optimus would eventually be capable of performing complex work autonomously in environments beyond Earth. If Optimus could achieve such a feat, it could very well unlock humanity’s capability to explore locations beyond Earth. The idea of space exploration becomes more than feasible.
Elon Musk has discussed space-based AI compute, large-scale robotic production, and the role of SpaceX’s Starship in transporting hardware and materials to other planets. While Musk did not detail how Optimus would fit with SpaceX’s exploration activities, his Von Neumann machine comments suggest he is looking at Tesla’s robotics as part of a potential interplanetary ecosystem.
News
Tesla China January wholesale sales rise 9% year-on-year
Tesla reported January wholesale sales of 69,129 China-made vehicles, as per data released by the China Passenger Car Association.
Tesla China reported January wholesale sales of 69,129 Giga Shanghai-made vehicles, as per data released by the China Passenger Car Association (CPCA). The figure includes both domestic sales and exports from Gigafactory Shanghai.
The total represented a 9.32% increase from January last year but a 28.86% decline from December’s 97,171 units.
China EV market trends
The CPCA estimated that China’s passenger new energy vehicle wholesale volume reached about 900,000 units in January, up 1% year-on-year but down 42% from December. Demand has been pressured by the start-of-year slow season, a 5% additional purchase tax cost, and uncertainty around the transition of vehicle trade-in subsidies, as noted in a report from CNEV Post.
Market leader BYD sold 210,051 NEVs in January, down 30.11% year-on-year and 50.04% month-on-month, as per data released on February 1. Tesla China’s year-over-year growth then is quite interesting, as the company’s vehicles seem to be selling very well despite headwinds in the market.
Tesla China’s strategies
To counter weaker seasonal demand, Tesla China launched a low-interest financing program on January 6, offering up to seven-year terms on select produced vehicles. The move marked the first time an automaker offered financing of that length in the Chinese market.
Several rivals, including Xiaomi, Li Auto, XPeng, and NIO, later introduced similar incentives. Tesla China then further increased promotions on January 26 by reinstating insurance subsidies for the Model 3 sedan. The CPCA is expected to release Tesla’s China retail sales and export breakdown later this month.
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
Elon Musk reiterates Tesla Optimus’ most sci-fi potential yet
