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Mercedes-Benz apologizes for ‘red hot’ AMG GLA 45 ad amid Europe’s summer heat wave

(Photo: Mercedes-Benz Kundencerter/Twitter)

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Veteran automaker Mercedes-Benz has issued an apology on Twitter following a gaffe in a recent ad for one of its vehicles, the Mercedes-AMG GLA 45 4MATIC. The apology comes amidst a strong negative reaction from users of the social media platform, many of whom found the company’s framing of the vehicle as a “red hot” addition to this summer’s record-setting temperatures as insensitive. 

Mercedes-Benz’s advertisement for the vehicle featured a variant of the GLA 45 4MATIC in a stunning red finish. As a way to emphasize the car’s attributes, the automaker related its shade to the sweltering summer heat. “If this summer wasn’t warm enough already, the Mercedes-AMG GLA 45 4MATIC will heat things up even more with this red-hot finish,” the carmaker wrote.  

The wordplay was not appreciated by a notable number of social media users, many of whom called out the company for the seemingly tone-deaf nature of the tweet. This year’s summer has been particularly brutal, after all, with Europe’s scorching heat wave in July being 3 degrees Celsius hotter than usual. Scientists have noted that the intense heat experienced in the region was exacerbated by climate change, as noted in a CNN report. 

So notable were the effects of July’s summer heat wave in Europe that last Wednesday, a Eurostar train traveling from Belgium to London broke down and trapped 40 passengers in 40 degrees Celsius heat without air conditioning. In France, public events and schools were canceled as temperatures reached alarming levels. In Spain, the heat helped exacerbate a 10,000-acre wildfire, which was one of the worst to hit Catalonia in decades. 

July’s heat wave was felt across the European region, with the UK, Belgium, and the Netherlands recording their highest temperatures to date last month. Germany, where Mercedes-Benz is based, experienced the same intense heat, with temperatures topping 40 degrees. According to a report from the World Weather Attribution group, temperatures in the region would have been between 1.5-3 degrees lower without climate change.  

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Amidst the strong reaction to its advertisement, Mercedes-Benz has posted an apology, admitting that the tweet was not its “finest hour.” “Folks, that was really not our finest hour. We apologize sincerely. We’re working hard on the transformation of our car fleet. We aim for CO2-neutral mobility,” the company wrote. The automaker also included a link to its Ambition2039 initiative, a plan for the company to become carbon-neutral in 20 years. 

Daimler, Mercedes-Benz’s parent company, is currently in hot water in Germany, with the company being on the sights of the country’s vehicle authority, the Federal Motor Transport Authority (KBA) over the alleged use of illegal shut-off devices for the diesel-powered Mercedes-Benz GLK 220, a popular SUV, as well as other vehicles equipped with the automaker’s OM642 and OM651 engines. The KBA’s investigation of Daimler has resulted in a recall of 60,000 units of the GLK, though the number could be as high as 700,000 vehicles if other vehicles using the OM642 and OM651 engines are also found to have used the emissions-cheating device.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla launches its coolest gift idea ever just a few weeks after it was announced

“Gift one month of Full Self-Driving (Supervised), which allows the vehicle to drive itself almost anywhere with minimal intervention.”

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Credit: Tesla

Tesla has launched its coolest gift idea ever, just a few weeks after it was announced.

Tesla is now giving owners the opportunity to gift Full Self-Driving for one month to friends or family through a new gifting program that was suggested to the company last month.

The program will enable people to send a fellow Tesla owner one month of the company’s semi-autonomous driving software, helping them to experience the Full Self-Driving suite and potentially help Tesla gain them as a subscriber of the program, or even an outright purchase.

Tesla has officially launched the program on its Shop. Sending one month of Full Self-Driving costs $112:

“Gift one month of Full Self-Driving (Supervised), which allows the vehicle to drive itself almost anywhere with minimal intervention. All sales are final. Can only be purchased and redeemed in the U.S. This gift card is valued at $112.00 and is intended to cover the price of one month of FSD (Supervised), including up to 13% sales tax. It is not guaranteed to cover the full monthly price if pricing or tax rates change. This gift card can be stored in Tesla Wallet and redeemed toward FSD (Supervised) or any other Tesla product or service that accepts gift card payments.”

Tesla has done a great job of expanding Full Self-Driving access over the past few years, especially by offering things like the Subscription program, free trials through referrals, and now this gift card program.

Gifting Full Self-Driving is another iteration of Tesla’s “butts in seats” strategy, which is its belief that it can flip consumers to its vehicles and products by simply letting people experience them.

There is also a reason behind pushing Full Self-Driving so hard, and it has to do with CEO Elon Musk’s compensation package. One tranche requires Musk to achieve a certain number of active paid Full Self-Driving subscriptions.

More people who try the suite are likely to pay for it over the long term.

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Tesla expands Robotaxi app access once again, this time on a global scale

Tesla said recently it plans to launch Robotaxi in Miami, Houston, Las Vegas, Phoenix, and Dallas.

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Credit: Grok

Tesla has expanded Robotaxi app access once again, but this time, it’s on a much broader scale as the company is offering the opportunity for those outside of North America to download the app.

Tesla Robotaxi is the company’s early-stage ride-hailing platform that is active in Texas, California, and Arizona, with more expansion within the United States planned for the near future.

Tesla said recently it plans to launch Robotaxi in Miami, Houston, Las Vegas, Phoenix, and Dallas.

The platform has massive potential, and Tesla is leaning on it to be a major contributor to even more disruption in the passenger transportation industry. So far, it has driven over 550,000 miles in total, with the vast majority of this coming from the Bay Area and Austin.

First Look at Tesla’s Robotaxi App: features, design, and more

However, Tesla is focusing primarily on rapid expansion, but most of this is reliant on the company’s ability to gain regulatory permission to operate the platform in various regions. The expansion plans go well outside of the U.S., as the company expanded the ability to download the app to more regions this past weekend.

So far, these are the areas it is available to download in:

  • Japan
  • Thailand
  • Hong Kong
  • South Korea
  • Australia
  • Taiwan
  • Macau
  • New Zealand
  • Mexico
  • U.S.
  • Canada

Right now, while Tesla is focusing primarily on expansion, it is also working on other goals that have to do with making it more widely available to customers who want to grab a ride from a driverless vehicle.

One of the biggest goals it has is to eliminate safety monitors from its vehicles, which it currently utilizes in Austin in the passenger’s seat and in the driver’s seat in the Bay Area.

A few weeks ago, Tesla started implementing a new in-cabin data-sharing system, which will help support teams assist riders without anyone in the front of the car.

Tesla takes a step towards removal of Robotaxi service’s safety drivers

As Robotaxi expands into more regions, Tesla stands to gain tremendously through the deployment of the Full Self-Driving suite for personal cars, as well as driverless Robotaxis for those who are just hailing rides.

Things have gone well for Tesla in the early stages of the Robotaxi program, but expansion will truly be the test of how things operate going forward. Navigating local traffic laws and gaining approval from a regulatory standpoint will be the biggest hurdle to jump.

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Investor's Corner

Tesla gets price target boost, but it’s not all sunshine and rainbows

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Credit: Tesla Europe & Middle East/X

Tesla received a price target boost from Morgan Stanley, according to a new note on Monday morning, but there is some considerable caution also being communicated over the next year or so.

Morgan Stanley analyst Andrew Percoco took over Tesla coverage for the firm from longtime bull Adam Jonas, who appears to be focusing on embodied AI stocks and no longer automotive.

Percoco took over and immediately adjusted the price target for Tesla from $410 to $425, and changed its rating on shares from ‘Overweight’ to ‘Equal Weight.’

Percoco said he believes Tesla is the leading company in terms of electric vehicles, manufacturing, renewable energy, and real-world AI, so it deserves a premium valuation. However, he admits the high expectations for the company could provide for a “choppy trading environment” for the next year.

He wrote:

“However, high expectations on the latter have brought the stock closer to fair valuation. While it is well understood that Tesla is more than an auto manufacturer, we expect a choppy trading environment for the TSLA shares over the next 12 months, as we see downside to estimates, while the catalysts for its non-auto businesses appear priced at current levels.”

Percoco also added that if market cap hurdles are achieved, Morgan Stanley would reduce its price target by 7 percent.

Perhaps the biggest change with Percoco taking over the analysis for Jonas is how he will determine the value of each individual project. For example, he believes Optimus is worth about $60 per share of equity value.

He went on to describe the potential value of Full Self-Driving, highlighting its importance to the Tesla valuation:

“Full Self Driving (FSD) is the crown jewel of Tesla’s auto business; we believe that its leading-edge personal autonomous driving offering is a real game changer, and will remain a significant competitive advantage over its EV and non-EV peers. As Tesla continues to improve its platform with increased levels of autonomy (i.e., hands-off, eyes-off), it will revolutionize the personal driving experience. It remains to be seen if others will be able to keep pace.”

Additionally, Percoco outlined both bear and bull cases for the stock. He believes $860 per share, “which could be in play in the next 12 months if Tesla manages through the EV-downturn,” while also scaling Robotaxi, executing on unsupervised FSD, and scaling Optimus, is in play for the bull case.

Will Tesla thrive without the EV tax credit? Five reasons why they might

Meanwhile, the bear case is placed at $145 per share, and “assumes greater competition and margin pressure across all business lines, embedding zero value for humanoids, slowing the growth curve for Tesla’s robotaxi fleet to reflect regulatory challenges in scaling a vision-only perception stack, and lowering market share and margin profile for the autos and energy businesses.”

Currently, Tesla shares are trading at around $441.

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