Tesla is looking for a Chief Designer to oversee its production of China-specific model releases in the country. The company’s efforts to open a Design Studio in China have been well-known, but the search for someone to help design cars that will be geared toward the Chinese market in specific continues.
Tesla has been manufacturing its electric vehicles in China since late 2019, while the first public deliveries began in January 2020. Since then, the automaker has seen overwhelming growth, which has been driven by incredible demand in China. The Tesla Model 3 is coming off of a highly-successful 2020 where it dominated sales figures for the full year. The Model Y also began production in late 2020 in Shanghai at its manufacturing plant, but the two cars are not all the company has in its plans.
Sources familiar with Tesla’s operation in China told Reuters that the company had started a full-fledged search to find the person who will design China-geared designs moving forward. According to the sources, recruiters and human resources representatives have worked diligently for four months to find a “bi-cultural” candidate with at least 20 years of experience. It will require a subjective sense of automotive design and familiarity with Chinese tastes. Even though Tesla has done relatively well in the Chinese market with its cars, the company plans to attack the market with designs that will speak to local citizens, which should drive sales figures through the roof.
A handful of potential candidates have been interviewed by Franz von Holzhausen, Tesla’s Chief Designer, but it is unknown how many people Tesla has talked to thus far.
In June 2020, Teslarati reported that Tesla was requesting that everyone, regardless of design experience or automotive craftsmanship, design an all-electric car that would appeal to China’s masses. “Even if you are not a car designer, you are welcome to submit. It’s more than just a car designed for you,” Tesla stated. “Please think of China in your Tesla design work.”
This request from the automaker followed a January 2020 Reuters report that revealed Tesla’s plans to design a “Chinese-style” vehicle.
Tesla is coming off its biggest year as a company, successfully delivering 499,650 of its over 509,000 produced cars. Q4 2020 was the company’s biggest quarter yet in terms of production and deliveries, as the company worked diligently to attain the 500,000 vehicle guidance it set for itself well before the COVID-19 pandemic slowed production lines.
Chinese-Style Tesla Vehicles (Source: Tesla China WeChat)
The mission to increase the number of EVs on the road is far from over for Tesla. Now, it seems the automaker will begin adapting body styles to every market, looking to cater to each consumer base individually, instead of planning to release a universally-accepted vehicle that doesn’t require revisions. While Tesla’s cars have been successful in countries other than the U.S., there is still work to be done. With more cars on the road in China than any other country globally, focusing on China could ultimately lead to long-term success for Tesla and may lead to a more prolonged domination of the sector than originally anticipated. CEO Elon Musk has openly stated that other companies will catch up in terms of EV development, but Tesla would be able to remain in their lead due to manufacturing efficiencies.
Once a Chief Designer is hired, Tesla will begin to build a team that will turn renderings into clay models. This will eventually lead to new EV designs being built and a broader range of body styles for consumers to choose from.
It is unclear if the development of new Chinese designs has anything to do with the $25,000 vehicle that Tesla plans to manufacture in China soon. Tesla detailed this vehicle at the company’s Battery Day event in September, where Musk stated that a $25k, fully autonomous car would be available in 3-5 years.
Right now, China is swallowing up demand for small, compact cars, even if they are not electric. The Toyota Corolla and Volkswagen Golf are two of the most popular, and Shanghai-based consultancy group Automotive Foresight says that a compact vehicle could be Tesla’s key to dominating the country and beyond. “A compact Tesla car would do well in China, as well as the rest of Asia and Europe,” Automotive Foresight’s Yale Zhang said. “It could potentially put a serious dent in sales of cars like Toyota’s Corolla and the Volkswagen Golf.”
News
Starlink gets its latest airline adoptee for stable and reliable internet access
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
SpaceX’s Starlink, the satellite internet program launched by Elon Musk’s company, has gotten its latest airline adoptee, offering stable and reliable internet to passengers.
Southwest Airlines announced on Wednesday that it would enable Starlink on its aircraft, a new strategy that will expand to more than 300 planes by the end of the year.
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
Tony Roach, Executive Vice President, Chief Customer and Brand Officer for the airline, said:
“Free WiFi has been a huge hit with our Rapid Rewards Members, and we know our Customers expect seamless connectivity across all their devices when they travel. Starlink delivers that at-home experience in the air, giving Customers the ability to stream their favorite shows from any platform, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing.”
Southwest also said that this is just one of the latest upgrades it is making to provide a more well-rounded experience to its aircraft. In addition to Starlink, it is updating cabin designs, offering more legroom, and installing in-seat power to all passengers.
Southwest became one of several airlines to cross over to Starlink, as reviews for the internet provider have raved about reliability and speed. Over the past year, Hawaiian Airlines, United Airlines, Alaska Airlines, airBaltic, Air France, JSX, Emirates, British Airways, and others have all decided to install Starlink on their planes.
This has been a major move away from unpredictable and commonly unreliable WiFi offerings on planes. Starlink has been more reliable and has provided more stable connections for those using their travel time for leisure or business.
Jason Fritch, VP of Starlink Enterprise Sales at SpaceX, said:
“We’re thrilled to deliver a connectivity experience to Southwest Airlines and its Customers that really is similar, if not better, than what you can experience in your own home. Starlink is the future of connected travel, making every journey faster, smoother, and infinitely more enjoyable.”
Starlink recently crossed a massive milestone of over 10 million subscribers.
Elon Musk
Tesla nears closure of Full Self-Driving purchasing option
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.
Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.
Tesla is overhauling its Full Self-Driving subscription for easier access
We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.
This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.
Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.
The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.
Positives
- Lower barrier to entry and higher potential adoption
- Financially better for many users
- Easier transfers and brand loyalty
- Predictable recurring revenue for Tesla
- Access to the latest features
Negatives
- Higher long-term cost for loyal/long-term owners
- No true “ownership” or permanence
- Risk of future price hikes or even deactivation
- Perceived as of less value
- Impact on resale and used market
Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.
Elon Musk
Elon Musk’s Boring Company selected for Universal Orlando tunnel project
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe.
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project.
The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.
The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.
Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.
The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.
For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area.
“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.
The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.
Starlink gets its latest airline adoptee for stable and reliable internet access
Tesla nears closure of Full Self-Driving purchasing option
