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Tesla ride-sharing program: exploring its practicality and real world benefits

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Many of the Tesla faithful sat with bated breaths waiting for the Master Plan Part 2 to be published. Once it did, we devoured every word, with some words more surprising than others. Making a pickup truck, while not surprising is thought-provoking. Ride-sharing as a concept, also not very surprising. Ride-sharing using the autonomously driven car that you personally own? Now there’s something to think about.

“In cities where demand exceeds the supply of customer-owned cars, Tesla will operate its own fleet, ensuring you can always hail a ride from us no matter where you are.” – Elon Musk

Let’s consider for a moment what this might look like.

Practicality 

My initial thought of an autonomous Tesla was ride-sharing within the same household. My spouse and I have jobs that are in opposite directions, but we also work different hours with him having the far shorter commute. That being said, it would technically be feasible for a car to drop me off at work and make it back home just in time to take him. Then, it would have plenty of time to come back to me before my work day is done. Driving me home would also be tight – but I think the car would make it just in time to drop me off and go grab him. (Anyone else getting wide-eyed at the thought of a car driving you around? I sure am!) The only downside that I can think of is that both of us, at times, like to run errands on a lunch break. Surely with a little planning we could just schedule who will have the car available mid day. For example, on his day the car wouldn’t come back to get me until later in the day. Should I need to use it, it could come back to me earlier. All of this sounds technically feasible but the miles would add up quickly. Over 90 miles a day, to be exact; double what we currently drive combined. This may be obvious, since the car is making each round trip twice, but on paper that distance really hits home. As for cost, our electricity use at home would clearly go up. What would go down, however, is the cost associated with having a second car. I only estimate that the Tesla costs us $50/month to power now but even if it went up to $150, that delta is far less than the savings associated with not having a second car to insure and maintain. (Let alone pay to own/lease, depending on how expensive a car you’d be giving up.)

Tesla Model 3 15" center touchscreen

In this regard, I see practicality as a wash. If technically feasible with your schedule as it would be with ours, it may work. Getting past the mental barrier of having only one car between two adults who drive and work full time however, may be a challenge. Tesla has shifted thinking in many ways already, so it’s possible this will as well. I keep trying to think of reasons why we need two cars but aside from our daily jobs, which a car that can drive us to negates, all I’m coming up with is the rare occasion where we both need to go somewhere different at the same time. Truth be told, I’m sure even that could be worked out in most cases. In those where it can’t? Summon up another autonomous Tesla to drive you where you need to be. Again, this comes with a cost but again, it pales in comparison to the cost to own a second car that spends over 90% of its life parked anyway.

Public Domain

Most Tesla owners I know treat their cars with extreme care. I am no exception. The thought of a stranger taking up residence in my car without me sends shivers down my spine. I guess there is only so much damage a person could do sitting in the back seat being chauffeured, presumably while staring down at their smart phone to pass the time. The after 2am crowd, on the other hand, poses additional risks but I for one wouldn’t send my car out that late. A sick passenger is one danger, sharing the road with impaired drivers in (gasp!) manual driving mode is another. How do you specify who is eligible for pick up anyway? Imagine the headline “Tesla picks up prison escapee and drives it across the state line.” Add in your fear here (underage runaway, woman in labor, very sweaty marathon runner.)

Battery expert Jeff Dahn inside the frunk of a red Model S

Battery expert Jeff Dahn inside the frunk of a red Model S [Source: dal.ca]

Availability

This is the main point I’ve heard brought up in my quick chats about this topic. How do you schedule your car to go off and pick people up within a strict window until you need it again? How does traffic play a part? Do you wait until you’re home for the evening and send it out, knowing full well it’ll definitely make it home by the next morning? Or do you risk letting it take a 4pm pickup when doing so could leave you stranded at the office? How far would you let your car go anyway? What about charge? You might need a certain range to get home so can you restrict your car’s pickup jobs to a certain distance? What if it’s cold outside?

In this regard, I have a lot more questions than answers. I have no interest in my car being late to bring me to or from work. It’s my car after all. I have even less interest in being picked up without enough range to get me where I’m going. I live in a major city and I don’t expect to see a Supercharger within our limits any time soon. There are now chargers within 100 miles of me in all major directions, which very easily enables long distance travel as intended. I’m happy with this, as I certainly don’t find myself needing a fast charge close to home. If I plan on letting my car work all day however, that may change. Letting it go home and plug in is impractical at the current rate of my charging setup. 29 miles per hour doesn’t speak well to quick turnaround.

Quick-Tesla-App-3

Cost

All of the questions above can be overlooked for a price. The big question is what that price might be. In my own life, I wouldn’t entertain the idea if it made me $100 per month. If it made me $1,000, I’d be the first in line to sign up. Everyone has a different sensitivity to price but I’d be willing to bet that even the least price sensitive people would at least consider using their Tesla in this way if the resulting income matched or exceeded their car payment. Getting to own and drive what I consider the world’s best car for no monthly payment is an offer that’d be too hard to refuse.

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Those were just arbitrary numbers though. What might be realistic? I’d like to think that tomorrow’s Tesla is comparable to today’s Uber Black. My Uber app only gives prices for Uber X but I know that Black costs more. At this very moment, a quick ride from my work place to the very center of our downtown is $12 on Uber X. Let’s estimate that it would be $20 for Black. In fact, let’s assume the average ride would net $20. The car would certainly be smart enough to try to do another pickup on the way back to me so I can probably count on $40 as a “round trip” made during my work day. If I let the car drive two round trips on Friday and Saturday nights as well as one each work day, that bring us up to 9 round trips per week, or $360. Already, this isn’t sounding so bad. Let’s scale that down due to some Tesla profit and market saturation. It still seems very reasonable that with little time commitment, $200 per week is reasonable. We’re at $860 per month. If you, like me, go out into a city once or twice a month yourself and spend anywhere from $10-30 in parking or cab rides, you could be earning/saving a combined $900 each month. I suppose I just learned that yes, I’d probably consider letting my car go out and work for me. Even at half the dollars I’m picturing, a Model 3 payment would be covered.

Convenience

Airports. Nights out drinking. Events out of town that force a one night hotel stay. Finding parking in crowded places. Paying for parking at concert or sports venues. These are some of the most popular reasons people today might use ride sharing services even if they have a car. It would sure be convenient if your own car could handle these occasions for you. This, I know, has more to do with autonomy than making the decision to allow your car to work for you. But it’s only a small leap from one to the other. I say this because if my car dropped me off at an Eagles game, I wouldn’t want it paying for parking while it waits. I’d want it headed back home, because that’s a safe place for it to wait. But if it’s going to driving alone anyway, why not pick someone up? It’ll be an exceptionally convenient life when cars can drive for us.

Tesla-Autopilot-Traffic-Rain

Implementation

How might a program like this actually work? Given a very elementary level of consideration, I imagine the same way Uber works now. I picture a beautiful and streamlined app interface on your smart phone that allows you to log in when you want the car to be able to drive. I imagine the ability to draw a border around the distance you’re willing to let your car travel, as well as the ability to set a time that the car has to return by. Many people far smarter than I will program fantastic algorithms that only allow the car to accept rides that, given traffic and other factors, will get the car back within its allowable time window. I also picture the ability to send the car out with a child’s car seat, if summoned. That would require a bit of interaction, as the app would have to notify you to install it first unless you leave one installed. Speaking of app, I imagine it would notify you that it’s about to head out. (“Mom! I’m going out for a bit. Be back in an hour!”)

Teslarati-Lifestyle-App

Supercharger map with crowdsourced recommendations from Tesla owners

Challenges

Much like I expect to be challenging for vehicle autonomy in general, the regulatory nightmare that is a driver-less vehicle will be the biggest hurdle to jump, in my humble opinion. Those aforementioned people way smarter than I? They’ll figure out programming the self driving technology sooner than later. They’ve already done a lot. Those perhaps-not-as-smart people we elect to office? Those folks I’m not too confidant in. Well, not them per say. The big jumbled mess of a political system that in the United States and so many other places churns out rules based on the almighty dollar rather than the good of citizens. Right here in my own home town, Uber is technically not legal. It’s legal in the state, just not the city, which has a cluster of a Parking Authority that somehow controls taxis. Except, by the way, when the Democratic National Convention came to town around the same time our local train system was having problems. Then the city made a special exception to “let” Uber operate. (Spoiler alert: it operates anyway.) My point is to illustrate that all the engineering and data in the world won’t guarantee that Tesla will even be allowed to operate driver-less ride sharing services as quickly as the technology itself will be available. That to me, is challenge numero uno.

Quick-Tesla-App-PARZ

The technology itself though, still has a lot of work ahead. Just like any parent tells their teenage driver “It’s not you, it’s the other cars on the road I’m worried about.” A Tesla can be a flawless driver 100% of the time on empty roads and that still won’t even come close to accurately predicting how it will drive when sharing the roads with distracted drivers, well-meaning drivers in poor weather conditions, and anything in between. Temporary lane restrictions are hard to compute, as is seeing a car that you just know is going to make a move without a signal. Years of driving experience allows people to read another car’s “body language” so to speak. Will a car ever be able to do the same?

An extension on the both of the topics above, I can only imagine the bureaucratic and technological nightmare that will result if (when!) cars have to learn to talk to each other. Surely that’s where we are headed. It’d be safer that way. But can you see BMW, who I suspect is a little hurt right now, cooperating with Tesla? I can’t but I hope they’ll have no choice. Step up or step aside.

Production vs. demand is another potential challenge. If the ability to buy a car and have it work for you to the tune of effectively negating your payment arrives sooner than Tesla exponentially increases its output of cars, we’ll have a problem. Maybe I’m biased, but I assume a darn lot of people would jump at the chance of driving a car that pays for itself. I mean, I wasn’t wrong when I called myself crazy for assuming there would be 50-100,000 people would put in reservations for a Model 3. Well, I was wrong, but in the right direction.

What do you envision ride-sharing capability looking like? What challenges will it face? Drop me a comment.

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Elon Musk

Elon Musk sheds two new bits of detail on Starship after 13th test launch

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Credit: SpaceX

Elon Musk shed two new bits of detail on Starship following its 13th test launch, which was an overwhelming success.

SpaceX launched Starship for the 13th time last Friday after two delays: one on Monday when several Raptor engines did not ignite, and another on Thursday due to unfavorable weather conditions in Starbase, Texas.

The launch was overwhelmingly successful. SpaceX was able to complete a necessary test of the heat shield tiles by increasing the acceleration of Starship from launch throughout the flight; 20 Starlink v3 satellites were released with no issue; the Super Heavy Booster landed safely in the Gulf of America, Ship successfully reignited engines while in space; and it also splashed down without incident in the Indian Ocean.

SpaceX Starship just nailed something it’s never done before

Nevertheless, more details are coming out about Starship, and Musk is doing the talking.

Starship Will Be Retrieved in the Ocean

Musk revealed on Tuesday night that Starship would be recovered by a ship in the Indian Ocean. SpaceX routinely tries to recover Starship after splashdown in an effort to find out more about the flight by examining the spacecraft afterward.

This helps engineers find out more about why things might have happened, allows them to examine any potential damage or anomalies that might have occurred, and increases the chances of an even more successful flight next time thanks to the additional information recovered.

Ship Could Have Been Caught by Tower Arms, Musk claims

Musk has already indicated that SpaceX will plan to attempt a catch of Starship with the 14th test flight. While this would be a major accomplishment, it would be an expected next step, considering the fact that the Super Heavy Booster has already been caught by the chopsticks on numerous occasions.

A ship catch would be a great indication of where SpaceX stands in terms of reusability and launch cadence. A successful catch with relatively no incidents would be a good sign that SpaceX is nearing a more frequent launch of Starship, but also that the reusability of the massive rocket would be something many would expect in the near future.

It is a necessity to make life multiplanetary.

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Elon Musk

Elon Musk updates the SpaceX timeline for Mars

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Rendering of a colonized Mars by way of SpaceX
Rendering of a colonized Mars by way of SpaceX

Elon Musk has updated his timeline for when humans will walk on Mars and for when ships will simply get there.

The objective of getting to Mars has been one of Musk’s biggest goals since becoming a serial entrepreneur and realizing that time on Earth is limited. Musk has said several times he hopes to die on Mars, and not by impact.

Musk now believes that people will be on Mars in “roughly 5 to 7 years.” He said that a Mars lander will get there “a few years sooner.”

The response from Musk comes after NASA Administrator Jared Isaacman said that SpaceX’s biggest priority is the Moon and not Mars. Because of this, Isaacman conceded that he believes nuclear power and propulsion investments will provide “potentially the pathway with the fewest miracles required to put four people on Mars in the next 10 to 15 years.”

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Of course, this is what NASA can do through taxpayer funding and nuclear investments, he added.

Musk’s grand ambitions are much more optimistic than most, and it is certainly a double-edged sword. This is not the first time timelines for Mars have been somewhat lofty, especially to those normal thinkers like you and me, not super geniuses like Musk.

SpaceX Board has set a Mars bonus for Elon Musk

In fact, the SpaceX and Tesla frontman has said on at least a dozen occasions that we could be on Mars in the coming years. Musk said 2020 would be the big year as early as 2009. In 2020, he was “highly confident” of a landing in 2026, and had even said 2024 in a best-case scenario.

The point is, the range has varied, and it’s anyone’s guess when we’ll get there. This latest adjustment to the timeline is typical of Musk, and while the Moon has seemingly taken priority over Mars, it is still worth mentioning that the ultimate goal is to make life multiplanetary, and it starts potentially with the Red Planet.

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Investor's Corner

SpaceX gets an absolutely crazy price target after rough IPO

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Credit: SpaceX

SpaceX (NASDAQ: SPCX) got an absolutely crazy price target rating from Raymond James after the company experienced a tough first few weeks following its Initial Public Offering (IPO).

Despite the tumultuous start, SpaceX has plenty of believers, and the company’s massively successful Starship launch last Friday, its 13th test flight of the massive rocket, went so smoothly that Raymond James analysts pushed its price target on the company to roughly 7 times its current trading level.

SpaceX Starship just nailed something it’s never done before

The firm officially put a “Strong Buy” rating and an $800 price target on the stock. It currently trades at around $113. Its all-time high is $225.64, reaching this trading level shortly after shares first went public.

Raymond James’ price target is tied to the firm’s confidence after Starship’s 13th test flight. Analysts at the firm said it was an incremental step that reduces engineering risks, citing the widely successful heat shield test that CEO Elon Musk recently detailed, the smooth deployment of Starlink V3 satellites, and a successful in-space engine relight.

SpaceX also managed to see Starship splash down safely in the Indian Ocean, while the Super Heavy Booster fell down to the Gulf of America with no incidents.

It is interesting to see these launches have such a tremendous impact on the stock and what investors think of it. After SpaceX initially delayed the Starship launch last week, shares fell tremendously. Most probably did not realize that the stand-down is a standard practice, especially if everything is not perfect.

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The mission was initially aborted due to an issue with Raptor engines. This was resolved, and Starship launched last Friday after another delay on Thursday, which was caused by weather.

Now that analysts have seen what SpaceX launches are capable of and how impressive the feat is, firms are adjusting their price targets accordingly, making it known that they have high expectations for the space exploration company.

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