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Volvo launches Polestar as stand-alone performance EV brand to target Tesla

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Swedish auto manufacturer, Volvo, has announced it is now entering the high-performance EV market. The company is transforming its long-time racing and performance division into an EV powerhouse. Polestar will become a “new separately-branded electrified global high-performance car company.” The new vehicles will not bear the Volvo brand and will be introduced as an entirely new stand-alone brand.

Volvo purchased Polestar in 2015, a move that allowed the brand to introduce higher performing vehicles. At the time of the acquisition, Volvo stated that they intended to incorporate their hybrid technology into the vehicles. Now, as the automotive industry rushes to compete with Tesla in the EV market, Volvo has decided to transform Polestar into its own stand-alone brand.

“Polestar will be a credible competitor in the emerging global market for high performance electrified cars. With Polestar, we are able to offer electrified cars to the world’s most demanding, progressive drivers in all market segments.” – Håkan Samuelsson, President and CEO of Volvo Cars

Rewinding back to 2014, before buying Polestar, Volvo announced its new Drive-E scalable platform architecture (SPA). The SPA focused its complete product line around a 2.0 liter 4-cylinder engine, tuning the engine with super and turbochargers to increase power as needed. Since then, the company has nearly redesigned its entire line of vehicles around the SPA. The company has seen global sales surge 25% since 2014, and Volvo has yet to see the effects of a major overhaul to its best seller, the XC60.

Polestar announces new management team to develop electrified performance brand for Volvo cars

The Swedish manufacturer has long been committed to environmentally friendly vehicles and is directly going after Tesla’s market. Earlier this month, Volvo’s CEO cited Tesla as a major reason for developing an electric car, “We have to recognize that Tesla (TSLA.O) has managed to offer such a car for which people are lining up. In this area, there should also be space for us, with high quality and attractive design.”

While it may seem odd that the new performance EV brand won’t be wearing the Volvo badge, the new brand could allow Volvo to mimic Tesla’s business in a larger sense. Volvo’s Polestar brand won’t be tied to Volvo’s network of franchised dealers and could allow the company to pursue direct-to-consumer car sales. Volvo has flirted with the idea in the past, and even allowed buyers of the XC90 order the vehicle online, directly from the manufacturer. While Volvo’s dealers still handled the pricing and delivery of the vehicle, it has allowed the company to test out sales model. Tesla has previously claimed that traditional franchise dealers are the wrong place to sell electric vehicles, citing dealers’ incentives to sell maintenance-heavy gas vehicles.

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Polestar’s Logo, Polestar will be transformed into a performance EV brand over the next few years

Leading the new brand is Volvo’s former SVP of Design, Thomas Ingenlath. It’s worth noting that Ingenlath previously worked at VW along with other EV design leaders, Tesla’s Franz Von Holtzhausen and Lucid’s Derek Jenkins. While it is still to be seen what exactly Volvo plans to produce, this new direction for the Polestar brand puts it in direct competition with other EV-only brands such as, Lucid Motors, NIO, Tesla, and Rivian.

Christian Prenzler is currently the VP of Business Development at Teslarati, leading strategic partnerships, content development, email newsletters, and subscription programs. Additionally, Christian thoroughly enjoys investigating pivotal moments in the emerging mobility sector and sharing these stories with Teslarati's readers. He has been closely following and writing on Tesla and disruptive technology for over seven years. You can contact Christian here: christian@teslarati.com

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Tesla lands new partnership with Uber as Semi takes center stage

Tesla and Uber will work together, using the company’s all-electric Semi, to make sustainable Class 8 electric trucks more affordable with three main strategies: Subsidized Pricing, Predictable Growth, and Optimization of Utilization.

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Credit: Uber

The Tesla Semi has led to a new partnership between the company and Uber, as the two are launching a program that aims to revolutionize logistics by making sustainable commercial vehicles more accessible.

Uber announced on Tuesday that it was planning to launch the Dedicated EV Fleet Accelerator Program in a new partnership with Tesla. Uber’s Freight division is mainly responsible for the new program, which it calls a “first-of-its-kind buyer’s program designed to make electric freight more affordable and accessible by addressing key adoption barriers.”

Tesla and Uber will work together, using the company’s all-electric Semi, to make sustainable Class 8 electric trucks more affordable with three main strategies: Subsidized Pricing, Predictable Growth, and Optimization of Utilization.

  • Subsidized Price: Fleets purchasing Tesla Semis through this program will receive a subsidy on the purchase price.   
  • Predictable Growth: Fleets will integrate their Tesla Semis into Uber Freight’s dedicated solutions for shippers for a pre-determined period. This creates an opportunity for carriers to forecast revenue with confidence, while shippers gain consistent access to reliable, zero-emission capacity. 
  • Optimize Utilization: Uber Freight taps into its extensive freight network to match carriers with consistent, high-quality freight from our strong shipper base—helping ensure the addition of these Tesla Semis stay fully utilized and carriers see dedicated, real, measurable returns from the start

Tesla will work directly with interested companies to iron out technical details about the Semi, as well as its cost of ownership based on the tailored needs of their business. Fleets can expect savings on the first day, Uber says, as they will avoid diesel fuel costs and reduced maintenance, a widely known advantage of EVs.

Uber announced that it had partnered with select carriers to pilot the Dedicated EV Fleet Accelerator Program prior to its launch:

“During the 2-month pilot program, the Tesla Semis showcased both reliability and efficiency for Uber Freight’s shipper network. Over 394 hours of drive time, carriers covered 12,377 miles. With an average net energy consumption of just 1.72 kWh per mile and only 60 hours of total charge time, these results highlight the operational viability of Tesla Semis on demanding freight lanes. “

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In its press release launching the program, Uber effectively highlights how the use of the Semi can impact a company’s margins and profitability through fuel savings, reduced maintenance costs, and lower total cost of ownership.

This is something that turns so many people away from gas cars and toward EVs, so it’s no surprise that Uber wanted to emphasize this point on a larger scale with a company that utilizes a fleet of vehicles.

Tesla Semi shows strong results in ArcBest’s real-world freight trial

Tesla has been experimenting with a select group of companies, as well. It partnered with PepsiCo. several years ago, in an effort to launch a pilot program for the Semi. It had excellent results, showing higher efficiency, lower costs, and an exceptional ability to handle long runs.

Drivers have had a lot of positive things to say:

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Tesla Semi earns strong reviews from veteran truckers

The Semi will enter mass production next year, but we anticipate that some companies will commit to Uber’s new platform well before then.

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Energy

Tesla recalls Powerwall 2 units in Australia

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(Credit: nathanwoodgc /Instagram)

Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.

Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.

Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.

Tesla announces 100k Powerwalls are participating in Virtual Power Plants

The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.

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The issue is related to the cells, which Tesla sources from a third-party company.

Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company said.

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Cybertruck

Tesla launches Cybertruck orders in a new market with a catch

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Credit: Tesla

Tesla is launching Cybertruck orders in a new market, but there’s a bit of a catch.

The Cybertruck was launched in the Middle East earlier this year, as Tesla launched the ability to place a reservation for the all-electric pickup in the United Arab Emirates. It would be the first market outside of North America that would have the ability to place an order for the Cybertruck.

Tesla confirms Cybertruck will make its way out of North America this year

Other markets where the vehicle has been widely requested, like Europe and Asia, have still not approved the vehicle to be sold to the public, mostly because of size and design restrictions.

However, in the UAE, Tesla is opening up the ability for those who placed reservations for the vehicle to finally put in their order. The Order Configurator is only available to those who have already placed a reservation; it is not yet available to the public.

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Tesla said it would open up the public online configurator across the Middle East in the coming weeks:

The UAE is not the only country that will have access to the Cybertruck, as fans in other Middle Eastern countries will also be able to place orders soon. Tesla announced back in April that Saudi Arabia and Qatar would also have Cybertruck deliveries.

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These vehicles will be built at Tesla’s Gigafactory Texas plant just outside of Austin, as Gigafactory Berlin and Gigafactory Shanghai, two factories located in the same hemisphere as the Middle East, do not have established lines for Cybertruck production.

As for the other markets, Tesla CEO Elon Musk has hinted that the company could develop a smaller Cybertruck for those markets, as he admitted that in the long term, it likely made sense to build a more compact version for regions where roads are traditionally tighter.

Elon Musk hints at smaller Tesla Cybertruck version down the road

There has been no evidence of Tesla developing this more compact version, but it could eventually happen.

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