Investor's Corner
Tesla patents aluminum “spray quench” process for molecular-level strengthening
Tesla has submitted a patent that describes a new, more effective cooling process for manufacturing high-strength aluminum components to be used in its product line.
The patent entitled, “System and Method for Facilitating Pulsed Spray Quench of Extruded Objects”, describes a quenching process that aims to increase the strength, rigidity, and energy absorption of aluminum alloy components. A multi-way spray nozzle system would cool extruded aluminum with an atomized spray of liquid.
“A system includes a billet die at a proximal end configured to accept a billet and form an extrudate, a quench chamber located adjacent to the billet die for receiving the extrudate and comprising at least one pulsed width modulation (PWM) atomizing spray nozzle and a control module in communication with the at least one PWM atomizing spray nozzle and configured to independently control a liquid pressure, a gas pressure, a spray frequency, a duty cycle and flow rate of each at least one PWM atomizing spray nozzle,” reads the patent abstract.
Vehicles today use 6XXX aluminum alloys, which make up the front and rear bumpers, side and back steps, and knee bolsters of a car, the Kobelco Technology Review stated. Tesla also indicates within the patent that it uses 6XXX alloys for its vehicles. After these parts are extruded, they enter a quenching process, which is simply the process of cooling the metal after it has been heated.
Currently, Tesla utilizes a quenching process that involves cooling recently extruded aluminum alloys by soaking the parts in water. This process of quenching is recognized as “quick cooling.” While other cooling means are available, such as air cooling and furnace cooling, soaking the parts in water is the most time-effective method for automotive manufacturing.
However, Tesla’s patent recognizes the adverse effects that quick cooling aluminum alloy parts can have on the structural integrity of the metal. Quick-cooling can not only lead to deformation and warping of metal parts, but things can change chemically as well.
Magnesium silicide, or Mg2Si, is present in these aluminum alloy parts, and quick cooling them can inhibit the compound’s ability to set in the metal. Without the proper setting of Mg2Si by quick-cooling the aluminum alloy in water, the metal requires a higher extrusion pressure and becomes more sensitive to heat, according to Light Metals 2014. The combination of these two properties can effectively compromise the mechanical properties of the final product, making the frame of the vehicle lose strength through the manufacturing process.
Tesla plans to utilize a multi-way spraying system to cool extruded aluminum parts, eliminating the soaking process that is used by so many manufacturers of aluminum alloy. In the patent, the company describes a quenching system that would spray newly extruded metals at varying rates depending on the size of the part. Between one half-gallon and 10 gallons of water per minute would cool the metal in question.
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- Tesla’s described cooling process. (Credit: U.S. Patent Office)
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- Tesla’s described cooling process. (Credit: U.S. Patent Office)
Two pyrometers would be placed at both the proximal and distal ends of the quench chamber. These would hold the responsibility of maintaining the metal’s temperature through the quenching process. The pyrometers would communicate with the system to ensure proper cooling temperatures, making sure the aluminum does not cool too quickly, allowing the Mg2Si to set. In conjunction with the temperature control, spray frequency, liquid pressure, gas pressure, and flow rate will also be monitored to ensure maximum strength after extradition is complete.
Tesla’s recognition of the flaws in quick-cooling extruded metals indicates the company’s realization that increased strength of a car’s frame could improve with a more efficient cooling technique.
In the teardown of the Model Y, Sandy Munro complimented Tesla’s use of what he called the “aluminum rear crush plate.” The piece is located at the trunk hatch and is designed to fold in the event of a rear-impact. The part saves the sides of the body from being compromised in a crash, which can ultimately total the vehicle if the chassis bends excessively.
While the crush plate is durable and prevents excessive damage to the body of the Model Y, the quick-cooling process used during manufacturing could ultimately make the crush plate less sustainable than what it could be. Not to mention, the front bumper, rear bumper, side and back steps, and knee bolsters are also made of aluminum. Using a different cooling technique could eventually lead to an even safer Tesla vehicle, which already has many five-star crash safety ratings from several organizations located around the world.
Read Tesla’s patent for a new aluminum cooling process below.
Tesla SYSTEM AND METHOD FOR FACILITATING PULSED SPRAY QUENCH OF EXTRUDED OBJECTS by Joey Klender on Scribd
Elon Musk
Tesla locks in Elon Musk’s top problem solver as it enters its most ambitious era
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla has granted Senior Vice President of Automotive Tom Zhu more than 520,000 stock options, tying a significant portion of his compensation to the company’s long-term performance.
The generous equity award was disclosed by the electric vehicle maker in a recent regulatory filing.
Tesla secures top talent
According to a Form 4 filing with the U.S. Securities and Exchange Commission, Tom Zhu received 520,021 stock options with an exercise price of $435.80 per share. Since the award will not fully vest until March 5, 2031, Zhu must remain at Tesla for more than five years to realize the award’s full benefit.
Considering that Tesla shares are currently trading at around the $445 to $450 per share level, Zhu will really only see gains in his equity award if Tesla’s stock price sees a notable rise over the years, as noted in a Sina Finance report.
Still, even at today’s prices, Zhu’s stock award is already worth over $230 million. If Tesla reaches the market cap targets set forth in Elon Musk’s 2025 CEO Performance Award, Zhu would become a billionaire from this equity award alone.
Tesla’s problem solver
Zhu joined Tesla in April 2014 and initially led the company’s Supercharger rollout in China. Later that year, he assumed the leadership of Tesla’s China business, where he played a central role in Tesla’s localization efforts, including expanding retail and service networks, and later, overseeing the development of Gigafactory Shanghai.
Zhu’s efforts helped transform China into one of Tesla’s most important markets and production hubs. In 2023, Tesla promoted Zhu to Senior Vice President of Automotive, placing him among the company’s core global executives and expanding his influence beyond China. He has since garnered a reputation as the company’s problem solver, being tapped by Elon Musk to help ramp Giga Texas’s vehicle production.
With this in mind, Tesla’s recent filing seems to suggest that the company is locking in its top talent as it enters its newest, most ambitious era to date. As could be seen in the targets of Elon Musk’s 2025 pay package, Tesla is now aiming to be the world’s largest company by market cap, and it is aiming to achieve production levels that are unheard of. Zhu’s talents would definitely be of use in this stage of the company’s growth.
Tesla analyst Andrew Percoco of Morgan Stanley teased the company’s dominance in its self-driving initiative, stating that its lead over competitors is “not even close.”
Percoco recently overtook coverage of Tesla stock from Adam Jonas, who had covered the company at Morgan Stanley for years. Percoco is handling Tesla now that Jonas is covering embodied AI stocks and no longer automotive.
His first move after grabbing coverage was to adjust the price target from $410 to $425, as well as the rating from ‘Overweight’ to ‘Equal Weight.’
Percoco’s new note regarding Tesla highlights the company’s extensive lead in self-driving and autonomy projects, something that it has plenty of competition in, but has established its prowess over the past few years.
He writes:
“It’s not even close. Tesla continues to lead in autonomous driving, even as Nvidia rolls out new technology aimed at helping other automakers build driverless systems.”
Percoco’s main point regarding Tesla’s advantage is the company’s ability to collect large amounts of training data through its massive fleet, as millions of cars are driving throughout the world and gathering millions of miles of vehicle behavior on the road.
This is the main point that Percoco makes regarding Tesla’s lead in the entire autonomy sector: data is King, and Tesla has the most of it.
One big story that has hit the news over the past week is that of NVIDIA and its own self-driving suite, called Alpamayo. NVIDIA launched this open-source AI program last week, but it differs from Tesla’s in a significant fashion, especially from a hardware perspective, as it plans to use a combination of LiDAR, Radar, and Vision (Cameras) to operate.
Percoco said that NVIDIA’s announcement does not impact Morgan Stanley’s long-term opinions on Tesla and its strength or prowess in self-driving.
NVIDIA CEO Jensen Huang commends Tesla’s Elon Musk for early belief
And, for what it’s worth, NVIDIA CEO Jensen Huang even said some remarkable things about Tesla following the launch of Alpamayo:
“I think the Tesla stack is the most advanced autonomous vehicle stack in the world. I’m fairly certain they were already using end-to-end AI. Whether their AI did reasoning or not is somewhat secondary to that first part.”
Percoco reiterated both the $425 price target and the ‘Equal Weight’ rating on Tesla shares.
Tesla stock (NASDAQ: TSLA) just got a price target boost from its biggest bear, Gordon Johnson of GLJ Research, who raised his expected trading level to one that is 95 percent lower than its current trading level.
Johnson pushed his Tesla price target from $19.05 to $25.28 on Wednesday, while maintaining the ‘Sell’ rating that has been present on the stock for a long time. GLJ has largely been recognized as the biggest skeptic of Elon Musk’s company, being particularly critical of the automotive side of things.
Tesla has routinely been called out by Johnson for negative delivery growth, what he calls “weakening demand,” and price cuts that have occurred in past years, all pointing to them as desperate measures to sell its cars.
Johnson has also said that Tesla is extremely overvalued and is too reliant on regulatory credits for profitability. Other analysts on the bullish side recognize Tesla as a company that is bigger than just its automotive side.
Many believe it is a leader in autonomous driving, like Dan Ives of Wedbush, who believes Tesla will have a widely successful 2026, especially if it can come through on its targets and schedules for Robotaxi and Cybercab.
Justifying the price target this week, Johnson said that the revised valuation is based on “reality rather than narrative.” Tesla has been noted by other analysts and financial experts as a stock that trades on narrative, something Johnson obviously disagrees with.
Dan Nathan, a notorious skeptic of the stock, turned bullish late last year, recognizing the company’s shares trade on “technicals and sentiment.” He said, “From a trading perspective, it looks very interesting.”
Tesla bear turns bullish for two reasons as stock continues boost
Johnson has remained very consistent with this sentiment regarding Tesla and his beliefs regarding its true valuation, and has never shied away from putting his true thoughts out there.
Tesla shares closed at $431.40 today, about 95 percent above where Johnson’s new price target lies.
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