This Week in Musk World

This week in Musk World saw some controversy between Tesla and the NHTSA over the safety of Tesla's cars. Tesla shot right back saying their cars are the safest in the world. And the data seems to support that claim.

The Tesla Model 3 total cost of ownership over 5-years is now even less than a Toyota Camry. The Tesla Semi is also reportedly getting even better range than first estimated. It will be interesting to see the total cost of ownership for that vehicle vs a traditional rig.

In other news:

Tesla Solar just relaunched. Now you can rent your solar panels? The details to the program are interesting. This week also saw information on Tesla's patents for curved and textured solar roof tiles. So rented panels for existing roofs and multiple tile-types for new solar roof installs seems to be the plan.

SpaceX's next two Falcon 9 launches will be for StarLink satellite launches. Interesting detail from the article was that 10-15% of the first 60 StarLink satellites have been decommissioned. That's a high number even if some of those decommissioned were planned "failures" to test certain procedures.

Future SpaceX launches (much further down the road) will utilize Starship to establish a base on Mars. This is the future I was promised as a kid!

And finally - Tesla Roadster with Starman completes its first orbit around the sun. Who knew but there is actually a WhereisRoadster website that allows you to track the now iconic vehicle as it travels through space. This year went by fast!

Few Weeks in Musk World

To me the biggest thing in Musk World these past few weeks has been the unveiling of Neuralink.

I have to admit that a billionaire who can read people's minds through technology and control their vehicles has a bit of a Doctor Who Rise of the Cybermen vibe to it.

Somehow I wasn't even aware of Ad Astra's existence. A minor foray into education by Elon Musk but somehow its now the most sought after and exclusive private school in California. (And what better way for an "evil" billionaire in a science fiction story to groom his technology henchmen? Just saying the narrative is veering scarily close to a decent Terminator, Battlestar Galactica or Borg storyline.) Only partially kidding.

A reminder that Tesla's success selling cars in the US is happening despite anti-free market roadblocks still set up in many states. And despite 68% of respondents to a JD Power survey saying they've had no experience with electric vehicles. So very impressive!

The Tesla Gigafactory in Nevada is bigger than you expect. When it is finally complete it will have the largest footprint of any building in the world!

Some of that space is possibly going to be used to make the Megapack utility scaled battery back-up system which was unveiled last week. I think this is another winner from team Musk. It is tough to keep up with all the technologies they are leapfrogging the competition on.

Elon Musk and SpaceX got some exposure last week on CBS Sunday Morning. A nice dovetail interview to go along with the Apollo 11 anniversary.

Couple of weeks ago SpaceX also successfully launched its 18th commercial cargo mission to the International Space Station on Thursday and successfully docked with the ISS that Saturday.

Also this week SpaceX announced a small sat "rideshare" program for smaller satellites. The pricing on these missions should be much less than traditional satellite launching services.

Musk says that the Starship and Super Heavy (BFR) combo will have 41 Raptor engines. This will give it more than double the thrust capacity of NASA's Saturn V rockets. That much thrust would destroy existing launch pads. So SpaceX will be creating new, better launch pads in Texas and Florida.

NASA selects SpaceX as one of 13 companies they will be working with on their Moon and Mars missions. And Europe admits that the SpaceX model of reusable rockets is the way to go.

And not to forget The Boring Company news - Elon Musk to attend Conference on AI in China at the end of the month where he will also be launching The Boring Company China.

Two Weeks in Musk World

First off happy belated birthday to Elon Musk who turned 48 on June 28th. Sorry Elon next year I'll send a card..

Tesla's Model S gets the ultimate award from MotorTrend being named the best car of the last 70-years. And Jay Leno is a big fan of Tesla. Positive reviews and awards like this are a big reason why Tesla doesn't even need to advertise. Think of it no advertising at all and Telsa's market share of EV's in the US jumped from 68% of the market in Q1 2019 to 77% in Q2 2019. The 95,200 cars delivered in Q2 also represent another production high in the evolution of the company.

Meanwhile Tesla's autopilot may reach 2 BILLION miles driven before the end of the year. Amazing when it basically didn't exist before Tesla introduced in to the masses. From science fiction to the Model 3 potentially being the first fully autonomous vehicle. Amazing progress!

In SpaceX news Elon says major Starship engine bug has been fixed. And SpaceX also captured its first rocket fairing. Here's what that means and why it is so damn cool.

Finally - out of nowhere came a Neauralink announcement. What's Neauralink you ask? Only Elon Musk's newest and most ambitious company yet (which is really saying something).

This Week in Musk World

Liftoff of the Falcon Heavy early Tuesday morning - NASA photo

Another jam packed week in Musk World.

SpaceX had another successful launch early Tuesday morning. This time it was the Falcon Heavy STP-2 mission for the DoD.

This mission also marked the first time the side boosters that flew on a previous Falcon Heavy mission were reused. Big item in making Falcon Heavy more cost effective than the competition.

This past week SpaceX also got its (extremely) tentative NASA dates for the first Crew Dragon astronaut launch.

BBC's Top Gear does a Model 3 road test and comes away very impressed, "This [the Model 3] is the traffic light king. It's an AK-47 disguised as a butter knife." Host Chris Harris was so impressed he announced he was buying one.

Speaking of the Model 3 - it is probably the safest car on the planet (according to NHTSA testing).

James May (formerly of Top Gear) reviews the Model S P100D and calls it the "greatest muscle car that America has ever produced." I think his admiration is a little more than grudgingly given from this traditional motorhead and there's a more than a little bit of snark even in his compliments.

And speaking of the Model S - this past week marked the 7th year anniversary of its availability. In 2012 2,650 were delivered and last year 245,240 customers got their Model S's. I'm sure that number will be surpassed when the 2019 numbers are finalized.

Tesla will now also now be offering some collision repair via their service centers and mobile repair service. I really like how Tesla is moving to becoming a full one-stop shop for all car related needs. The car, the charging (Superchargers and Powerwall), the maintenance and repair and even soon insurance for the vehicle.  Oh and also "fast pass" access to The Boring Company's tunnels (very cool video).

Finally - Tesla Powerwalls now starting to be used in the telcom sector to replace diesel generators. This could be significant when coupled with solar recharging for remote cell sites and towers.

This Week in Musk World

Tesla recently had their annual shareholders meeting.

Here are 7 takeaways from the meeting. The most interesting wrinkle to me continues to be the idea of Tesla getting into the insurance business. That could be a huge revenue generating aspect to the company. One of the big (but boring to some) details from the Shareholders meeting is the fact that Tesla has now installed over 1,500 V3 Superchargers worldwide. No other EV car manufacturer is even close.

In considering some of the news from the Shareholders meeting it is good to recall that Tesla has had an excellent record of meeting or exceeding production estimates.

Most of the credit for that belongs to the employees and management of Tesla but interestingly enough part of the credit belongs to the people who bought a car and are helping others to fully enjoy their new Tesla car. The phenomenon continues in China where current Tesla owners are volunteering to help with an upcoming delivery surge.

Interesting look into Tesla's mobile service and repair.

Tesla's Solar Roof is also making the news. Seems like if you're energy efficient that the Solar Roof may actually be able to make you a little money. The new roof tiles are now even more aesthetically pleasing (and supposedly less expensive).

Tesla and SpaceX remain one of the top choices for top engineering talent. And speaking of SpaceX...

SpaceX had their sixth successful Falcon 9 launch of 2019 exactly a week ago. Launching three Canadian satellite into a 400-mile orbit above our neighbor to the north.

Below is a very well done video explaining why SpaceX is making Starlink. It's got me rethinking some of my doubts about the product.

Two Weeks in Musk World

Lots happening in Musk World over the past two weeks.

Musk says Tesla pickup pricing my be "well under" $50,000. That's a freaking sharp looking vehicle!

Interesting and detailed one-year review by a Model 3 owner who is not new to the EV driving experience.

And the Model 3 is now available to a much larger area in Asia. Hong Kong, Japan, Macau, Ireland, Australia and New Zealand were all added to the purchasing portal this past week. Why Ireland is bunched in with those countries - I have no idea.

GM and Fiat Chrysler admit that they are buying regulatory credits from Tesla. Put another way major competitors are subsidizing the company that is taking market share from them. Just like they teach at Harvard Business School!

 Looks like the Model Y SUV to be initially built in the Fremont CA factory. With the factory upgrades basically paid for by GM and Fiat Chrysler credits?

With all that going on look for Tesla to continue to dominate the EV sales world (the animated graph is amazing).

NASA's first SpaceX astronauts ready for "messy camping trip" into space. To be fair the astronaut who said that, Doug Hurley, was calling all trips into space messy camping trips. The mission is hopefully slated for later this year. The mission is notable because it will utilize the SpaceX Falcon 9 rocket and Crew Dragon capsule and be the first manned spaceflight based on American soil in a decade.

And finally in what seems like it happened months ago but was really just a couple of weeks - SpaceX successfully launched the first 60 Starlink LEO satellites.

This Week in Musk World

Busy week in Musk World.

SpaceX has rescheduled the launch of a Falcon 9 rocket carrying 60 Starlink satellites for Thursday at 10:30 PM EST. This is the third launch attempt with the payload with the other two times being pushed back due to weather concerns. I'm on record being skeptical of the Starlink program not just because of adoption concerns but also because of logistical ones (like launch delays).

The plan is to have 12,000 LEO (Low Earth Orbit) satellites providing broadband service. Starlink has FCC approval to launch 4,409 satellites but that approval is contingent on SpaceX launching at least half of those satellites in the next six years. Then the company will have just 3-years to launch the other half. But even if they are successful in meeting those combined 9-year timetables - that still leaves them short about 7,500 satellites from the 12,000 final goal. And a lot can happen with terrestrial broadband in 9+ years.

The launch of the Starlink satellites may be the sexy thing today but I think when history looks back at this week in Musk World it will be the acquisition of Maxwell Technologies that will be considered the big deal. Here's an interesting video outlining 5 reasons why Tesla bought Maxwell. Could lead to a big jump forward for the company.

In other news:

Tesla's dashboard cams save a Model 3 owner from an apparent insurance scam. Meanwhile the Sentry Mode records vandals who unaware they were being recorded who did about $2,000 in damage to another Model 3. Also as a Rick & Morty fan I love the idea of a "Keep Summer Safe" mode.

Tesla is lapping its competitors in battery capacity and in charging time. And this is before the acquisition of Maxwell Technologies!

This Consumer Reports article says, "Tesla Driver in Fatal March Crash Was Using Autopilot, NTSB Says: Car hits side of tractor-trailer at 68 MPH with no sign of stopping." The report also says that autopilot was engaged just 10 seconds prior to the crash and that the accident was caused by the truck changing lanes into the lane occupied by the Tesla. Why is Consumer Reports slanting their coverage in such a negative light? The truck caused the accident. Has Consumer Reports been reduced to click-bait tactics? Sadly the misinformation or negative reporting in the MSM seems to be across the board (I think much of this is due to the fact that Tesla doesn't buy ads like the rest of the major car manufacturers).  But when you hear all that doom and gloom keep this in mind.

Tesla has also dropped the base price of the Model S by $3,000 and the Model X SUV by $2,000 while raising the base price of the Model 3 by $400 to $35,400.

Despite my skepticism I wish SpaceX all the luck in the world with their Thursday launch.

This Week in Musk World

Tomorrow is the target date for a Falcon 9 to launch 60 Starlink satellites (the 60 satellite payload is pictured left). To be honest, of all of Elon Musk's projects - this is the one that makes me most skeptical.

Most commercial communication satellites are launched knowing their transponders are 100% sold and as long as the launch is successful a profit is all but guaranteed (and an unsuccessful launch is covered by insurance). Starlink seems to be an "if I build it people will come" project for Musk. Perhaps there's something more going on behind the curtains but like I said - I'm skeptical.

Staying in SpaceX world - there was a problem with a parachute test on Crew Dragon in April. With President Trump adding $1.6 billion to NASA's 2020 budget it looks like issues like this will get magnified (and rightfully so when manned flight is involved). However, the amount of politics involved in any NASA decisions will also get magnified (and not rightfully so).

A cartoonist explains what it's like to own a Tesla Model S. Things like this just expand the legend of Tesla. Can you imagine any better advertising? Not that Tesla uses advertising (which is a whole other can of worms and why I think much of Tesla's coverage in traditional media may be slanted against them).

Meanwhile Tesla battery partner Panasonic debunks rumors about alleged Gigafactory 1 conflicts. There is still excess capacity at Gigafactory 1 for more batteries to serve the North American and European markets. It makes sense business and politically-wise to research a "local" Chinese battery supplier for Gigafactory 3. This seems to be a nothing story rebuttal made necessary by those who would try to find issue with Tesla no matter what.

This Week in Musk World

SpaceX leads the news in Musk world this week.

Just yesterday morning the Crew Dragon capsule was captured and attached to the International Space Station. This comes after the successful Falcon 9 launch on Saturday.

Meanwhile more information was released on the "anomaly" that cause the destruction of a Crew Dragon craft a couple of weeks ago. This issue is troublesome and will cause delays in manned Crew Dragon missions to the space station until its resolved.

Tesla accounted for 78% of all-electric cars sold in the US in April. Who are these 22% who buy something other than a Tesla when buying an all-electric vehicle?

Tesla looks to raise $2 billion in new capital. This would basically double their current cash reserves. And in an effort to increase solar revenue Tesla will be slashing solar panel pricing to be more competitive. I haven't seen it broken out anywhere but I wonder how much of Tesla's $700 million loss last quarter was due to sluggish solar sales.

Long read about how a lawsuit over a Tesla autopilot fatality is likely to lose in court. And speaking of autonomous vehicles - Tesla's self-driving computer puts it 4-years ahead of the competition.

This is something I've long commented on - Tesla spends $0 on ads, still tops all automakers in organic social media engagement. The flip side of this coin is because Tesla doesn't advertise on traditional media - that traditional media has been quick to post negative stories about Tesla (especially content from those who engage in short-selling the stock). Those analysts and investors who defend Tesla seem to have their voices muted (which probably wouldn't happen if Tesla was buying ads on a network the way Ford or Toyota and the rest do).

Finally the below video of Elon Musk announcing the Tesla robotaxi service is fascinating. One of the details that stunned me a little was that Tesla is designing their cars for 1 million miles of service. This is a huge departure from the traditional gas engine cars where getting 150,000 miles is considered getting a lot out of a vehicle. I drive about 35,000 miles a year and at that rate it would take me just over 28.5 years to get to 1 million miles. Even if I doubled my miles by adding my (fictional) Tesla to the robotaxi fleet - that's still 14-years plus of ownership. This is really changing the paradigm.

Two Weeks in Musk World

In the past two weeks perhaps the biggest news out of Musk World is the fact that Tesla will be offering car insurance on their vehicles.

Elon Musk is quoted as saying that regulatory approval is "almost there for larger US states." And that it would be "at least" 6-12 months for Europe and the UK. This is genius! Tesla will own the end to end consumer experience for buying (or leasing) the vehicle, charging the batteries at Supercharging stations (or at home with Powerwalls) and also the vehicle insurance. No middlemen. All revenue going to Tesla. And as Warren Buffett showed with Berkshire Hathaway's purchase of Geico - the "float" between the insurance premiums coming in and payments for accidents going out provides a tremendous cash flow for investment. Like I said - genius!

And it doesn't even end there! Three weeks ago Musk announced that Tesla would be creating a fleet fleet of autonomous ride-shire vehicles to compete with companies like Uber and Lyft. Some Tesla enthusiasts may never have to step into another brand of car ever again! And be happy about it!

Being innovative like this is how a car company can go from being less than 3.5% the size of Ford Motors to being valued at more than $8 billion than last century's American icon in less than 10-years.

Of course some may argue that the release of the fully autonomous driving feature was the true big news but that news was expected. Who expected Tesla to announce they will be competing with Geico? Though it must be said that the amount of data that can be collected in just a few seconds by the cars cameras is very impressive. The "from scratch" FSD (Full Self Driving) computer is not just impressive but game changing. Meanwhile:

The Model 3 whipped the BMW M3 in performance testing performed by Top Gear.

Tesla's Gigafactory 3 in China is on track to break China's record for fastest factory build out.

Tesla is also considering constructing a Gigafactory in Germany.

Google Maps will now show if charge stations are in use.

Not all the news was rosy though as Tesla posted a $702 million Q1 loss. Revenue was up $1.1 billion year over year but things aren't always that simple.
 
In Space X news the Crew Dragon had an "anomaly" which is disturbing. The "anomaly" is not expected to cause any delay in Tuesday's International Space Station re-supply mission.

This Week in Musk World

The photo to the left is of the Falcon Heavy and its 27 engines. "Awesome" is the word that pops to mind.

SpaceX's Falcon 9 wins launch of an asteroid-attacking NASA spacecraft. Maybe we'll be able to point back to this and tell our grandkids "This is how the Space Force was born!"  Maybe future generations will view Falcon Heavy nailing the first triple rocket landing this week the way we look at the Wright brothers' first voyage.

And SpaceX is poised to win even more NASA contracts in the near future.

Meanwhile in the automobile world Elon Musk is bullish not just on EV's but on autonomous EV's going so far as to state that "in the future any car that does not have autonomy would be as useful as a horse." Even raising eyebrows by saying, "Please note that Tesla Full Self-Driving option will increase substantially over time." Will we look back at self-driving cars like some people look at standard transmission vehicles today? Elon Musk - putting the "auto" in "automobile".

In an interesting wrinkle on autonomous cars Tesla announces leasing options for the Model 3 but also that returned vehicles after the lease expires will be used for a Tesla owned ride hailing network. The leases will be true leases with no end of term option to purchase. Instead those vehicles will used to create basically a driverless alternative to Uber and Lyft.

Tesla this week also released their first ever 48-page Impact Report. The everyday use of Tesla cars and solar products has the biggest environmental impact but Tesla also goes the extra mile in making sure their manufacturing is as sustainable as possible. Their Fremont CA factory was certified as a "Zero Waste" facility. All of this is laudable but I kept waiting to read two words - nuclear power. The report states, "The world cannot reduce CO2 emissions without addressing energy generation and consumption." Solar does augment the grid and make it more resilient but the amount of coal used in the world is at the same level is was 20-years ago. You'd think an engineer and pragmatist such as Elon would simply state the truth that if you want true zero emissions then nuclear power has to be a big part of the picture.

But speaking of the factory - I know I posted this video before but it is so cool watching a Tesla Model 3 actually be assembled.

This Week in Musk World

The chart to the left is of Q1 vehicle production and deliveries year-over-year for Tesla. Quite impressive!  Over the long term such growth will be difficult to maintain but in the short-term as Tesla enters a market like Germany, for example, they quickly become one of the main players.

Or like in China.

Domestically some upgrades to Enhanced Autopilot and Full Self-Driving are now available. Upgrades Elon Musk has classified as "epic". The International upgrades will be available soon. As autopilot continues to be more studied I would expect fairly frequent fine-tuning updates to make the experience smoother and smoother. 

All the recent updates weren't safety or performance related though. TeslAtari was also in the latest release. Playing Asteroids while waiting in the parking lot while the girlfriend shops - cool!

Interesting profile on what gives Elon Musk his Silicon Valley "super powers".

In space news - Israel became just the seventh nation to put a spacecraft into the Moon's orbit. On Thursday they will attempt to be just the fourth nation to land a craft of the surface of the moon. All this was made possible because the Beresheet craft was launched on top of a SpaceX Falcon 9 rocket. 

Meanwhile a federal judge wants Musk and the SEC to put their "reasonableness pants on" when it comes to resolving issues over some of Musk's Tweets. The judge is giving the parties two weeks to adhere to his admonishments.

I guess nothing says 2019 like a federal case over the accuracy of someone's Tweets.

This Week in Musk World

The Top 5 reasons to buy a Tesla. Not mentioned is how a Tesla can save an owner thousands of dollars in operation costs over a gas powered car. Total cost of ownership should be a big selling point.

Still some confusion in the market about Tesla closing some retail stores. Is it 10% of stores? 20%? All of them? None? While I agree that Tesla customers especially are willing to do the whole transaction online (especially in states that have dealership laws like Michigan, New York, Connecticut, Texas, Utah, New Mexico, Oklahoma and Wisconsin) - what about service and solar?

Service is the lifeblood of many car dealerships and Tesla needs more places where owners can get their cars fixed - not fewer. If Elon Musk is planning on closing some expensive, flashy retail stores and replacing them with more practical garages where the cars can be repaired then great. Service is a looming issue for Tesla that also has to be addressed. More places not fewer would be better.

And solar? Weren't the Tesla retail stores supposed to double as places to showcase the Tesla solar products as well? It's not like a Powerwall  can be just dropped off at a person's home like a Model 3. The Powerwall has to be installed and homeowners are going to have questions. Questions that could be answered at a retail store. Maybe the plan is to have an all-mobile fleet of service vans for both cars and solar? Like I said confusing.

Tesla recently released its enhanced summon feature. But all I could think is I'd go apeshit if I got stuck behind a car moving that slow in traffic. Also until advanced summon works seamlessly for someone to retrieve their car back home from a bar where you took an Uber ride home the night before then it's not a real selling point for me.

The "Tesla Effect" hits Germany as VW, Daimler, and BMW fully commit to EV's.

Construction going 24/7 in China to meet the goal of opening the Gigafactory 3 by the end of the year.

This Week (and a Half) in Musk World

The big news from Tesla, of course, was the unveiling of the Model Y crossover SUV which Fortune Magazine suggests may be a "game -changer".  The Model Y compares very favorable to even the top crossover SUV's like the Porche Maycan.

That was hardly the only news as Tesla announced a new customer referral program which they rolled out this week. It also looks like there might be a tow package in store for future Model 3's and Y's. Meanwhile in the shorter term the new firmware update announced two weeks ago which will increase Model 3 power by about 5% (increasing top speed by 7 mph) is now available. Cool.

Lots of cool positive things going on at Tesla but if you read this review from Consumer Reports you would think things are doom and gloom. I know I'm an Elon Musk fanboy but this sort of biased reporting bugs me. How can I trust Consumer Reports on a laptop recommendation when I see obvious bias on something I pay close attention to? Clearly a case of Gell-Mann Amnesia.

As Consumer Reports points out  maintenance and repair of EV's in general are an issue but to help address this Tesla has announced a new college course which it will be utilizing at six North American colleges to train EV technicians.  Tesla may want to partner with some European colleges as well as the Model 3 has quickly become the top selling EV in Western Europe.

Over at SpaceX - American rockets launching from American soil. Elon Musk confirms that SpaceX rockets will be built in Texas and Florida.

SpaceX's Starship undergoing some serious tests this week. Remember that the goal of SpaceX is to get to Mars but landing heavy payloads on Mars will not be easy. Successfully getting the SpaceX Starship to Mars may be the easy part when compared to landing on Mars.

In other news - a very valid question - what exactly is Tesla's strategy with solar? Elon Musk said at the Model Y unveiling that "this is definitely going to be the year of the Solar Roof and Powerwall."  Since many of the Solar Roof customers seem to also be Tesla car customers - maybe they should institute a new customer referral program that packages both car and solar products? Maybe that's in the works and why Tesla reversed course in closing their product showrooms?

One last thing - this is pretty mind-blowing especially when you remember that Elon Musk is only 47-years old and far from finished.

This Week in Musk World

Perhaps the most historic event in Musk World this week was the successful splashdown of the Crew dragon capsule. American astronauts launching on American rockets from American soil once again just became one step closer.

Tesla Model 3 quickly becomes #1 in the Netherlands. The Model 3 is also a hit in France. And "crushing it" in Norway. And in the US the Model S has been proclaimed "America's greatest muscle car" by no less an authority than Top Gear's James May.

What I've long said was the unappreciated "muscle" behind Tesla's long-term are the network of charging stations which this week got a big boost as Supercharger V3 was unleashed. Short-term the financial "muscle" of Tesla coming out with a $35,000 Model 3 has caused competitors to react with price drops of their own.

Meanwhile the Model Y is teased on Tesla's website. The question is how the Model Y will stack up against the announced Audi e-tron Q4. The Model Y is scheduled to be unveiled on Thursday. With the Model Y - Tesla's product line will officially be S3XY (pun obviously intended) And speaking of sexy teases - what the heck is this bad boy?

Let's not forget The Boring Company - Las Vegas might be the site of the next tunnel for the company.Makes sense. You don't want conventioneers too tired from walking all day to gamble at night.

This Week in Musk World

Very busy week in Musk World as lots of things were happening in both the Tesla and Space X operating spaces. Let's start with Space X.

The big news was the successful launch of the Crew Dragon mission early morning March 2nd. The unmanned Crew Dragon then successfully docked with the International Space Station. All of this, of course, brings Space X one step closer to manned space flight. This article expounds on the historic nature of this mission. Meanwhile, NASA Administrator Jim Bridenstine also put the his stamp on the historic mission. The return of the US having the capability to launch astronauts into space from American soil cannot be overstated.

In Tesla World it was announced that the long-promised $35,000 Tesla is finally here. This standard Model 3 will have a range of 220-miles. The drop to $35,000 has been compared to Henry Ford making the Model-T more affordable to the masses. That might be putting the cart before the horse here though.

To help accommodate all these cars - Tesla will be greatly expanding their Supercharging and Destination locations - including doubling the charging stations in California.  Almost buried in the news of the $35,000 Tesla is the fact that Tesla is now "shifting sales worldwide to online only."  Tesla certainly isn't afraid of being on the cutting edge.

Coming up on March 14th is the unveiling of the Model Y. Always something going on in Musk World.

This Week in Musk World

Consumer Reports pulled its recommendation for the Model 3 over reliability issues. Tesla says most of those issues had already been addressed. And most of the owner reviews I've seen are beyond positive regarding their Tesla vehicle - like this one. 

Last week there was a big shipment of Tesla cars to Europe - this week over 1,600 Model 3's were delivered to China. Ahead of schedule! Last week Sentry Mode was also released.

Next week in Musk World we get to see NASA's launch of the Space X Crew Dragon mission. Looking forward to that. And after all the testing the Space X team has been going through - my guess is they are more than up to the task.

And speaking of Space X - Elon says that the costs of the BFR could even be less than the Falcon 9.

This Week in Musk World

With Valentine's Day this past Tuesday maybe the big news on the Tesla front this week was the features and upgrades starting with the perfect time to use Tesla's Romance Mode.

- Sentry mode was made active.
- Dog Mode was released.
- And of course let's not forget about Fart Mode.

The Kia Niro EV could emerge as the leading competition to the Model 3 in the US. That is once the car is available in more than 12 states. Audi teases the Q4 e-tron as a potential competitor to the Model Y. The Q4 e-tron SUV is not scheduled to be available until late 2020 (is that why they called it the Q4?) or 2021. The Model Y gets a head start as it is supposed to be ready for shipment in 2020 and if it gets a perfect crash-test safety rating like it's big brother the Model X then the Model Y will be tough to top. Meanwhile Amazon invests $700 million in electric pickup truck startup Rivian. Setting up Bezos vs Musk once again (like SpaceX vs Blue Origin). GM is also rumored to be an investor in the Michigan based startup.

Threats of competition are nothing new for Tesla. But if Tesla can continue to top the lists of "most satisfying" cars this competition will continue to exist largely on paper. And as noted by Morgan Stanley - Tesla's Supercharger Network is a big competitive advantage. Even if Tesla opens up the Supercharger Network to other manufacturers just the subconscious sheepishness of an owner connecting to a Supercharger with a big "TESLA" on it will make them feel probably a little more than second class.

In non-hypothetical news - the first big shipment of Model 3's made landfall in China this week. Real cars, real revenue. The shipments would continue to be in place until the new Gigafactory in China is complete. But once again - real cars, real revenue.

In SpaceX news - it could cost less than $500,000 to move to Mars and maybe as little as $100,000 according to Elon. Musk stated that the return trip would be free for those wishing to leave. He also stated that the chances of him going to Mars is 70% (kinda skeptical of that). SpaceX is facing certification review by the Pentagon. It is stated that "it's not known what sparked the Pentagon investigation" but a cynic could say that the answer was supplied earlier in the article when it was noted that certification allowed SpaceX to "take on regular defense contractors Boeing Co. and Lockheed Martin Corp." Money talks.

An Elon Musk backed AI company created a text generator AI that's too good out of the box causing the company to slow down the project to look for potential harmful issues with the technology. Musk hasn't been active with the company in over a year and does not sit on the company's board. It should also be noted the Musk is also one of the most outspoken leaders on the existential damage AI could cause to mankind. All that said - I would like to read the rest of the 1984 story the AI text generator would have created.

Artificial Intelligence may be an existential threat but self-driving cars can be an actual threat as underlined by this recent crash. I'm not sold on auto-pilot for any vehicles yet. That doesn't make me a grumpy old man either. Just makes me a pragmatist.

This Week in Musk World

This week in Musk World.

Tesla cut the price of its Model 3 once again this week - this time by $1,100. The stated goal is to get the price down to $35,000 which could happen in 6 months or so but that would require trimming another $7,900 off the price. These price reductions could be achieved by "a combination of workforce reduction, manufacturing improvements, and greater economies of scale from higher-volume production." The higher volume should be helped with new markets and speaking of - Model 3's started being delivered in Europe so Elon Musk went over to tour the operations.

Also helping higher volume production will be the introduction of the Model Y - the all-electric Tesla SUV.

Even traditional media like CNN have taken note that the Model 3 was the top selling luxury car in America last year. The article brings up a good point though - Tesla didn't have a Super Bowl commercial. In fact I can't recall ever seeing a Tesla commercial. Maybe that's why traditional media have been so negative to Tesla - other car manufacturers buy lots of ads.

The Model 3 basically was a dead-heat in a drag race vs a 560-horsepower BMW M5. The Model 3 seems to be getting most of the media attention these days but the Model S remains perhaps the most badass EV out there.

In other car news - is Tesla going to work with Mercedes on an electric Sprinter van?

CNBC wants to know whatever happened to Tesla's Solar Roof tiles? It's a valid question but now I wonder if Tesla bought broadcast ads if the question would be asked in a more positive way. Meanwhile - even old homes can be fitted with solar and with Tesla Powerwalls. My opinion is that it is the Powerwalls that will be the real game-changer (for a number of reason).

SpaceX has a goal of 24-28 launches in 2019. SpaceX's website says that they have "secured over 100 missions to its manifest, representing over $12 billion on contract." By itself SpaceX is looking like a formidable company.

It really is amazing how much happens every week in Musk World. Being Elon must be exhausting!

This Week in Musk World

USA! USA! USA! The Model 3 was the best selling luxury car or SUV in the US - "the first time in decades an American carmaker has been able to secure the top spot." As the article points out - this may be an indictment of Cadillac and Lincoln more than anything. Not to take anything away from Tesla though because the Model 3 was also ranked by Consumer Reports as the Number 1 Car in Owner Satisfaction. USA! USA! USA!

Tesla cars have been shown to be robust when it comes to handling wear and tear with minimal maintenance costs.

According to Elon Musk the Model Y is up next but close behind is going to be the Tesla pickup truck. It supposedly looks like a smaller Tesla Semi but one cool feature I think is the plug in port(s) for electric hand tools. That could be a killer app for workmen.

One Tesla story I think has been underplayed is the demand for Tesla vehicles in Europe. A demand that is only now being met.

It is interesting to look at some of the negative "news" about Tesla and wonder who is sponsoring this stuff? Like the Washington Post's profile of Elon Musk's use of a private plane. Is there going to be a follow-up article in the Post on Jeff Bezos' use of private jets? If not then I'm going to chalk this up to the Bezos owned Washington Post taking a collateral damage swipe at Blue Origins (another Bezos company) biggest competition SpaceX and their primary owner in Musk. And people wonder why nobody trusts the media.

The article is another example. Tesla had 83% market share of all EV's sold in the US but Tesla's fourth quarter earnings were deemed "relatively disappointing" because they missed some analysts estimates. What did those analysts want? 100% of the EV market?

In other Musk World news - SpaceX is getting closer to a manned mission to the International Space Station.