Connect with us

News

Tesla Ranks Third In 2015 North American Suppliers’ Choice Study

Tesla is ranked third in the 2015 North American Suppliers’ Choice Study conducted by Deloitte and Automotive news. It placed ahead of Honda and Toyota.

Published

on

Tesla Factory

Robots from Tesla Fremont factory assembling Model S frame [Source: Tesla Motors]

The 2015 North American Suppliers’ Choice Study conducted by Deloitte in cooperation with Automotive News ranks Tesla third behind BMW and Mercedes Benz. The study ranks car manufacturers based upon their willingness to encourage innovation and adopt new technology. William Forsythe IV, a principal at Deloitte, says the landscape is changing “as the vehicle evolves from mechanical to more software-based.”

Forsythe says, “Suppliers are managing their relationships with OEMs differently than in the past. They’re being selective about customers with whom they choose to do business.” Joe Vitale, Deloitte’s global automotive sector leader, added to Forsythe’s remarks, saying suppliers often “have more knowledge than OEMs about customers. They’re unwilling to add capacity unless it’s going to add significantly to the value” of their businesses.

The Deloitte and Automotive News study ranks automakers in 5 categories on a scale of 1 – 1000. The categories are openness to new ideas, ease of working with the automaker, level of trust, willingness to provide financial incentives or rewards for supplier innovation, and ability to implement innovations. Each category is weighted according to its overall importance. Openness to new ideas is considered the most important factor of all. As such, it accounts for 32% of the total score.

Not surprisingly, suppliers place a high value on their ties with automakers that encourage innovation, are willing to build relationships based on trust, and are easy to work with. Of the more than 170 suppliers who responded to the survey, the majority said they would decline to offer their most innovative products to automakers that do not participate in collaborative relationships.

Tesla Assembly plant in Tilburg, Netherlands [Source: Tesla Motors]

2015 marks the first time that Tesla has been recognized in the survey. It was rated highly by suppliers for its openness and ease to work with. The company also earned high marks for its trustworthiness. “Tesla is extremely aggressive, but takes a position that they are the innovator and will drive technology to the supply base,” wrote one survey respondent, who added: “Could improve with a more collaborative approach.” That sounds like Tesla could be a bit more humble in its dealings with those outside the company.

Industry attitudes have changed substantially since suppliers were simply “job shops” that turned manufacturers’ specifications into finished products. Tesla has room for improvement, according to the respondents to the survey, but it is still ranked higher than 12 other North American manufacturers, including Honda and Toyota. For a newcomer, that is high praise indeed.

Related

Advertisement
Comments

News

Tesla rolling out Robotaxi pilot in SF Bay Area this weekend: report

Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

Published

on

Credit: @AdanGuajardo/X

Tesla is reportedly preparing to launch a Robotaxi pilot program in the Bay Area this weekend, with invites to a select number of customers reportedly being sent out as early as this Friday.

The update was shared in a report from Insider, which cited an internal memo from the electric vehicle maker.

New Robotaxi service launch

According to Insider, the Robotaxi service in the Bay Area is set to launch as soon as Friday. Thus, some Tesla owners in the area should receive invites to use the driverless ride-hailing service. Similar to the Austin pilot, the Robotaxi rides will reportedly be a paid service.

The publication noted that the Robotaxi service’s geofence in its Bay Area launch will be quite large, as it will include Marin, much of the East Bay, San Francisco, and San Jose. This is not surprising as California has long been saturated with Teslas, and it is home to several of the electric vehicle maker’s key facilities.

Unlike the Austin pilot, the Tesla Robotaxi service’s pilot in the Bay Area will use safety drivers seated in the driver’s seat. These drivers will be able to manually take over using the steering wheel and brakes as needed. As per a spokesperson from the California DMV, the agency recently met with Tesla but the company is yet to submit a formal application to operate fully driverless cars. 

Advertisement

Tesla Robotaxi expansion

Interestingly enough, Tesla did tease the release of its Robotaxi service to the Bay Area in its second quarter earnings call. While discussing the service, Tesla VP of Autopilot/AI Software Ashok Elluswamy mentioned that the company will initially be rolling out Robotaxis with safety drivers in the San Francisco Bay Area. He did, however, also highlight that the electric vehicle maker is working hard to get government permission to release the service for consumers.

“The next thing to expand would be in the San Francisco Bay Area. We are working with the government to get approval here and, in the meanwhile, launch the service without the person in the driver seat just to expedite and while we wait for regulatory approval,” he stated.

Continue Reading

News

Tesla is ready with a perfect counter to the end of US EV tax credits

Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup.

Published

on

Credit: Tesla Asia/X

The United States’ electric vehicle tax credit is coming to an end at the end of the third quarter. Tesla, the country’s leading electric vehicle maker, is ready to meet this challenge with a rather simple but clever counter. 

Tesla executives outlined this strategy in the recently held Q2 2025 earnings call.

End of the US EV tax credit

While Elon Musk has always maintained that he prefers a market with no EV tax credit, he also emphasized that he supports the rollback of any incentives given to the oil and gas industry. The Trump administration has not done this so far, instead focusing on the expiration of the $7,500 EV tax credit at the end of the third quarter.

Tesla has been going all-in on encouraging customers to purchase their vehicles in Q3 to take advantage of lower prices. The company has also implemented a series of incentives across all its offerings, from the Cybertruck to the Model 3. This, however, is not all, as the company seems to be preparing a longer-term solution to the expiration of the EV tax credit.

Affordable variants

During the Q2 2025 earnings call, Vice President of Vehicle Engineering Lars Moray stated that Tesla really did start the production of more affordable models in June. Quality builds of these vehicles are being ramped this quarter, with the goal of optimizing production over the remaining months of the year. If Tesla is successful, these models will be available for everyone in Q4. 

Advertisement

“We started production in June, and we’re ramping quality builds and things around the quarter. And given that we started in North America and our goal is to maximize production with a higher rate. So starting Q3, we’re going to keep pushing hard on our current models to avoid complexity… We’ll be ready with new, more affordable models available for everyone in Q4.,” Moravy stated. 

These comments suggest that Tesla should be able to offer vehicles that are competitively priced even after the EV tax credit has been phased out. Interestingly enough, previous comments from Tesla executives have mentioned that these more affordable models would resemble the company’s current lineup. This suggests that the more affordable models may indeed be variations of the Model Y and Model 3, but offered at a lower price.

Continue Reading

Elon Musk

Elon Musk reveals Tesla’s next Robotaxi expansion in more ways than one

Tesla Robotaxi is growing in more ways than one. Tesla wants to expand and hopes to reach half the U.S. population by the end of the year.

Published

on

Credit: Tesla

Tesla CEO Elon Musk revealed the company’s plans for its next expansion of the Robotaxi in terms of both the geofence in Austin and the platform overall, as it looks to move to new areas outside of Texas.

Tesla launched the Robotaxi platform last month on June 22, and has since expanded both the pool of users and the area that the driverless Model Y vehicles can travel within.

The first expansion of the geofence caught the attention of nearly everyone and became a huge headline as Tesla picked a very interesting shape for the new geofence, resembling male reproductive parts.

The next expansion will likely absolve this shape. Musk revealed last night that the new geofence will be “well in excess of what competitors are doing,” and it could happen “hopefully in a week or two.”

Musk’s full quote regarding the expansion of the geofence and the timing was:

“As some may have noted, we have already expanded our service area in Austin. It’s bigger and longer, and it’s going to get even bigger and longer. We are expecting to greatly increase the service area to well in excess of what competitors are doing, hopefully in a week or two.”

The expansion will not stop there, either. As Tesla has operated the Robotaxi platform in Austin for the past month, it has been working with regulators in other areas, like California, Arizona, Nevada, and Florida, to get the driverless ride-hailing system activated in more U.S. states.

Tesla confirmed that they are in talks with each of these states regarding the potential expansion of Robotaxi.

Musk added:

“As we get the approvals and prove out safety, we will be launching the autonomous ride-hailing across most of the country. I think we will probably have autonomous ride-hailing in probably half the population of the US by the end of the year.”

We know that Tesla and Musk have been prone to aggressive and sometimes outlandish timelines regarding self-driving technology specifically. Regulatory approvals could happen by the end of the year in several areas, and working on these large metros is the best way to reach half of the U.S. population.

Tesla said its expansion of the geofence in Austin is conservative and controlled due to its obsession with safety, even admitting at one point during the Earnings Call that they are being “paranoid.” Expanding the geofence is necessary, but Tesla realizes any significant mistake by Robotaxi could take it back to square one.

Continue Reading

Trending