Tag Archives: China

Tesla Chief Musk Now World’s Wealthiest Person due to Record-Setting Stock Price

Tesla CEO Elon Musk has ridden the EV maker’s skyrocketing stock to the worlds richest person title.

The ongoing run up of Tesla Inc.’s stock price has made the EV maker the world’s most value automotive company several times over. However, it’s not just the company that’s sitting atop the money list now.

CEO Elon Musk, who owns a massive amount of the company’s stock, has ridden the company’s rising share prices to the title world’s richest man, passing Amazon founder and chairman Jeff Bezos.

With the company’s gains Thursday, the 49-year-old Musk saw his net worth soar to more than $188.5 billion, $1.5 billion more than Bezos, Bloomberg reported. The brash and oft-impatient, which has worked in his favor many times, Musk has seen his personal wealth skyrocket as the value of Tesla shares has leapt eightfold.

(Tesla narrowly misses 500K delivery target for 2020.)

He has a 20% stake in the carmaker and about $42 billion of unrealized paper gains on vested stock options, according to the Bloomberg report.

The battle of the richest currently mirrors the boxing world where are multiple champions in the same weight class. In this case, the Forbes Billionaire’s list still listed Bezos as the top dog with a $7.8 billion bigger balance sheet. Forbes dings the EV maker because some of the stock he owns has been pledged as collateral for personal loans, the company said.

Tesla isn’t Musk’s only venture, with the serial entrepreneur owning controlling stakes in the Boring Company, which builds tunnels designed to alleviate urban traffic; Neuralink, a startup company developing brain-machine interfaces; and SpaceX, which produces rockets that launch payloads into space while landing back on Earth so they can be reused.

(Tesla’s latest system update sounds like real gas.)

The passion for rockets and space is something he shares with Bezos, who created Blue Origin. Much like SpaceX, the company is focused on the development of reusable rockets. The company’s mission calls for those multi-use boosters to take people into space.

Musk was rather blasé about the milestone, tweeting out “How strange” and then “Well, back to work,” He later pinning an earlier tweet about his fortune to the top of his feed.

“About half my money is intended to help problems on Earth & half to help establish a self-sustaining city on Mars to ensure continuation of life (of all species) in case Earth gets hit by a meteor like the dinosaurs or WW3 happens & we destroy ourselves,” he tweeted Oct. 12, 2018.

(Tesla gets green light to sell Shanghai-built Model Y in China.)

The new title is just the latest bit of good news for Musk, who was Tesla fall only just short of his stated goal of delivering 500,000 vehicles worldwide, despite the impact of the COVID-19 pandemic. The EV maker, which has enjoyed four consecutive profitable quarters to be placed on the S&P 500 index, sold 499,550 vehicles in 2020, falling just 450 short of the goal.

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Apple Readying to Bring a New Vehicle to Market in 2024, Report Claims

Apple appears to be back in the “building a car” game with an EV said to be coming in 2024.

Tech behemoth Apple Inc. is apparently on again when it comes to its on-again, off-again oft-speculated about Project Titan, after media reports say the company will bring out a vehicle potentially using a cutting-edge battery technology in 2024.

Apple’s been walking the line of potentially building an electric vehicle for most of the last decade, scooping up top tech minds from potential competitors, like Tesla, during that time. However, the company would never officially confirm Project Titan or its plans to build its own car.

However, a few years back, CEO Tim Cook decided to put the rumors to rest, saying the company was working on the development of autonomous technology that could be used by automakers. However, a new report from Reuters, which cites multiple sources familiar with the project, claims that an actual car is coming in three years, separate from the self-driving technology.

(Apple cuts over 200 jobs at autonomous vehicle project.)

Apple CEO Tim Cook has called self-driving vehicles “the mother of all AI projects.”

The tech giant’s been close before, hiring Doug Field, an Apple veteran who had worked at Tesla Inc., to oversee the project in 2018 and laid off 190 people from the team in 2019, according to Reuters. However, since then, the company’s been plugging along and now believes it’s made enough progress to build a vehicle, Reuters reported.

In an age where electric vehicle startups are seemingly commonplace, Apple’s return to the game doesn’t seem all that big a deal, until the report of the new battery design comes into play. Automakers are looking to improve batteries significantly so the costs will be on par with a vehicle with a gasoline- or diesel-powered engine.

The sources told Reuters that the new design could “radically” cut the battery cost while increasing the vehicle’s range. Current range for the top EVs exceeds 300 miles on a single charge, but Tesla, Lucid, General Motors and others are proclaiming that they’re pushing beyond 400 miles with their current vehicles. By the time an Apple EV shows up in 2024, the range could be double that, if not more.

(Apple files patent linked to AV driving.)

According to the story, the iPhone maker plans to use a “monocell” design. It bulks up the individual cells in the battery, freeing up space inside the battery pack by eliminating pouches and modules holding battery materials. The design allows for more battery material to be stuffed in the battery, extending its range.

Apple’s autonomous vehicle — a T6 Transporter van from Volkswagen.

Additionally, Reuters reported that Apple is researching a new battery chemistry: lithium iron phosphate, also known as LFP. Its primary advantage is that it’s less likely to overheat, making it safter than other batteries.

Apple’s big checkbook instantly makes it a player in any market it chooses to compete, but building a car isn’t the same as building a phone or a laptop. Tesla has struggled with its production issues and quality problems plague each of their vehicles when they roll off the assembly line during the early launch and even well beyond that time frame.

(Apple’s autonomous vehicle involved in California crash.)

VW Group Expected to Sell Lamborghini, as well as Bugatti and Ducati

Ferdinand Piech, grandson of Volkswagen’s founder, assembled an array of auto companies during his tenure atop the company.

Under former CEO Ferdinand Piech, Volkswagen pieced together a vast array of brands covering everything from entry-level small cars to ultra-exotic sedans and sports car but, now, it looks like current CEO Herbert Diess wants to unravel the empire and sell or spin off some of those marques.

According to various reports out of Europe, backed by several company sources, two of VW’s most exclusive automotive brands, Lamborghini and Bugatti, are in the crosshairs, as is the company’s motorcycle division, Ducati.

Shedding those brands could simplify Volkswagen’s management structure, reduce future investment needs and, equally important, such a move could raise cash to help fund VW’s aggressive electrification program. The German marque has laid out plans to launch at least 50 all-electric models by mid-decade and has allocated about $66 billion for that effort.

(Volkswagen teases new compact ute coming in October.)

Volkswagen AG Chairman Herbert Diess is looking to take VW in the opposite direction of Piech, selling or spinning off companies to better fund its core business.

Lamborghini could be spun off on its own, along the lines of what Fiat Chrysler Automobiles did with Ferrari, reports Reuters.

Currently, under the peculiar structure of the broader Volkswagen Group, Lambo effectively reports to the semi-autonomous Audi brand. The news service quotes various sources indicating the Italian supercar company would become “a more independent unit,” making it easier to eventually stage an initial public offering.

“This is a first step which gives VW the option to list the unit further down the line,” one of the sources familiar with the discussions told Reuters.

Ducati, which is likewise based in Italy and also reports directly to Audi, seems destined to go through similar changes which could include a spinoff, a sale or simply operating more independently.

Audi had actually looked for a buyer for Ducati a couple years ago but eventually ended that quest unsuccessfully.

Volkswagen has designated $66 billion to bring more than 50 EVs to market in the next few years, including the ID.4.

As TheDetroitBureau.com reported last week, the three brands are likely to go to different buyers – or possibly be spun off separately. Bugatti appears to be destined to go to Croatia’s electric supercar startup Rimac, according to London-based Car magazine.

Bugatti, whose products start around $3 million, is the most exclusive of all the VW brands, but with production running barely one a week, it generates little real cash and requires substantial investments to remain competitive.

It also faces the growing challenge of meeting global emissions and energy efficiency mandates that appear destined to force a shift from conventional gas engines – like the W-16 used in the current Bugatti Chiron – to electric assist or full battery-electric propulsion.

(Report: VW set to sell Bugatti to Croatia’s little EV maker Rimac.)

That’s where Rimac could be a solid fit, its own products, like the Concept_Two, running entirely on batteries.

Italian sports car maker Lamborghini would likely be spun off, much like Fiat Chrysler did with Ferrari.

Whatever happens to Lamborghini, it would face a similar challenge, however. And even in the motorcycle sector there’s a push to electrify, such traditional brands as Harley-Davidson launching battery-powered models.

If Volkswagen does move to sell or spin off these brands it would mark a dramatic reversal of the strategy implemented by Piech, heir to the family that founded both VW and Porsche.

After becoming CEO three decades ago, and then as chairman of Volkswagen’s all-powerful Board, he approved the acquisition of brands ranging from low-end Skoda and Seat to high-line Porsche and Bentley, as well as the revival of the Bugatti marque.

That strategy positioned VW in a three-way fight with Toyota and the Renault-Nissan-Mitsubishi Alliance for global sales leadership. But Piech was forced out in 2015 following VW’s disastrous emissions cheating was revealed. He passed away in August 2019.

Diess has been looking for ways to streamline the German giant and is aggressively shifting from the diesel technology that long propped up the automaker to electric propulsion. But that transition, along with the need to develop autonomous vehicles, is incredibly expensive, further encouraging the idea of paring down the corporate line-up.

Bugatti and its record-setting Chiron could be sold to Croatian EV maker Rimac.

Decisions on what to do Lamborghini, Bugatti and Ducati reportedly could come during a five-year planning meeting set to bring together VW’s separate management and supervisory boards in November.

(Volkswagen suffers Q2 loss; board publicly backs Diess.)

Even if the Volkswagen Group does get rid of the three brands it won’t vanish from the highest regions of the automotive market. There appears to be no plan under discussion to shed British Bentley. And both Porsche and Audi remain secure in their roles within the company, as well.

A Week With: 2020 Toyota Prius XLE

The 2020 Toyota Prius XLE offers good, green transportation for buyers.

The Prius has been around for a long time, going back to the end of the last century when its introduction forever changed the way consumers and manufacturers look at powertrains by using batteries and electric motors.

This little hybrid began the slow but inexorable shift away from gasoline-driven automobiles that has spurred the development and production of vehicles like the Nissan Leaf, Chevrolet Bolt and, of course, Tesla’s entire line-up.

Overall: For anyone still interested in fuel economy, the 2020 Toyota Prius XLE is still a champ with combined 50 mpg rating from the Environmental Protection Agency. However, once considered pricey, the Toyota Prius now carries a relatively modest sticker price by today’s standards.

(Toyota marks 20th anniversary of “The Car That Changed an Industry” with special edition Prius.)

The new Prius still features one of the most recognizable exterior shapes in the market.

In fact, it is well below the average of vehicles sold in the United States of $31,755. It’s also proven to be durable and appears to have captured – or at least earned permanent place – the hearts of American motorists, which belies all the millions of words of snark and criticism sent its way throughout the years.

Its zero to 60 time remains mired, we would guess, in the double-digit range. But it is versatile and still really is one of the greenest of green vehicles on the road after all these years, getting better than 56 miles per gallon in the city.

Exterior: The five-door hatchback shape of the Prius makes it easily one of the most recognizable vehicles on the road. Even people who couldn’t care less about automobile design can recognize a Prius almost instantly.

“…Say what you will about its exterior shape, it is one of the few designs of the past two decades to have carved out a distinctive niche in automotive lore…”

That said, the face of 2020 Toyota Prius has been altered to give the car a more contemporary look. There also LED lights and the wheel have been dressed up, providing the car with more curb appeal.

The Prius comes complete with plenty of technology, including Apple CarPlay integrated into the infotainment system.

Interior: At its heart, the Prius is a compact car. But the interior also is comfortable, and the controls and the center stack is within easy reach of the driver’s seat. The materials used throughout the cabin of this version of the Prius has been upgraded from past when the interior had the distinct aura of cost cutting that worked against the vehicle’s technical virtues.

The seats are supportive with the rear seats being quite usable. The car’s interior is quite versatile with fold-down seats that increase the car’s capacity for carrying cargo or extra luggage and the area under the hatch can even accommodate a set of golf clubs. The visibility from the driver’s seat is excellent. However, the security shade that covers the cargo area tends to interfere visibility.

(Q&A: Toyota’s hydrogen chief Jackie Birdsall.)

Powertrain: Toyota has been tinkering with the hybrid drive system that utilizes nickel-metal hydride batteries, electric motors and a 1.8-liter double overhead cam four-cylinder engine. In the 2020 Prius XLE, the basic front-wheel-drive layout has been augmented by an electronic all-wheel-drive system.

The Prius offers plenty of room for five passengers.

Overall the system produces 121 horsepower and 105 pound-feet of torque. The 2020 Prius can operate solely on electric power in slow traffic for short distances. However, once the speed picks up, Synergy drive, unique to Toyota, is designed to connect the gasoline engine, electric motor and generator into one operating unit.

Safety and Technology: The 2020 Toyota Prius XLE that we drove was loaded with technology and safety features For 2020, the Prius offers Bluetooth a new Toyota Audio 7-inch Touch-Screen Display on L Eco, LE and XLE, new Apple CarPlay and Amazon Alexa Compatibility standard on all model grades and newly standard Safety Connect on all grades.

The rear passenger seats also have been equipped with USB ports. The safety equipment on the XLE includes driver assistance features such as lane-keeping and blind-spot monitoring and pedestrian alert. The XLE version I drove also came with a head-up display and automatic headlines that turn on dark roads and off when there is oncoming traffic.

Driving Impressions: Throughout the years, Prius has come under fire due to complaints about its sluggish performance. We found the 2020 Toyota Prius XLE is still rather sluggish in certain situations on the highway.

The powertrain performed well. There is plenty of torque, coming off a standing start and the regenerative brakes add stopping power and the shifts are seem virtually invisible because they were so seamless. The steering wasn’t as crisp as in conventional sedan but the Prius delivered a smooth, steady ride and handled curves and varied pavement conditions easily.

(Sales sliding, Toyota rethinks future of the Prius.)

Wrap Up: The Prius has been a mainstay of the Toyota line-up for years and while it may not be th most fashionable passenger car on the road today – and let’s face it, the automotive industry is nothing if not acutely fashion conscious – it has proven itself to be a versatile and reliable vehicle for urban and suburban driving.

The drop in fuel prices has diminished some of its appeal, but it is still one of the most efficient vehicles on the road today. As it prices come come into line with other sedans and crossovers available on dealer lots these days, it does offer the added benefit of being more environmentally friendly than other vehicle choices. The fact that the vehicle introduced years ago and hasn’t been scrapped underscores its durable character.