Tesla’s European Gigafactory 4 to begin construction as early as January 2020

Joey Klender

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Posted on December 13, 2019

Tesla’s Gigafactory 4 in Berlin, Germany will reportedly begin construction around January 2020. This comes just after Tesla reportedly reached an agreement with local government officials to purchase a piece of land where the company’s electric vehicle and battery production facility will be built.

CEO Elon Musk announced that Berlin would become the home of Tesla’s next vehicle production factory last month. A report from Deutsche Bank appearing to be published on December 9 states the company “expects construction to start in Berlin around January 2020 and will begin with Model Y production and then Model 3 will follow.” Following the announcement of Gigafactory 4 at the Golden Steering Wheel Awards in Germany, Musk tweeted that the factory “will build batteries, powertrains & vehicles, starting with Model Y.”

Tesla expects Model Y production at Gigafactory 4 to begin in 2021, or “a maximum of two years after the groundbreaking ceremony.” It is not known when Tesla will begin Model 3 production, nor is the exact dollar figure of how much the company will invest in the upcoming facility. However, there is speculation that the cost will be “slightly” higher than the estimated $2 billion investment Tesla had building Gigafactory 3 in Shanghai, as noted by the Shanghai Planning and Land Resources Administration.

According to Bild, Tesla’s purchase agreement for 300 hectares of land for production and logistics space will become valid following approval from Brandenburg’s Finance Committee. However, the electric car maker based out of Silicon Valley, California reportedly plans to begin building its new plant before approval is received. “Tesla is likely to start at his own risk even before the approval, if a positive decision can be expected,” Brandenburg Minister of Agriculture, Environment and Climate Protection Axel Vogel said.

Economy and Energy Minister Joerg Steinbach says the project is on schedule and “the building area is expected to be cleared by mid-March.” Steinbach and other government officials have been openly supportive of Tesla’s presence in Germany. Economy Minister Peter Altmaier was alongside Steinbach at a press conference in Potsdam, Germany following the announcement of Gigafactory 4, where they spoke highly about Tesla’s decision.

“We see it as recognition of Germany as a location for making cars. We think we now have the chance, in the coming years, to become an important international centre in this future-oriented sector,” Altmaier said.

Musk and Tesla saw several advantages in bringing the company’s new factory to Germany. “Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany,” the Tesla CEO stated. Tesla expects Gigafactory 4 to assist in the production of its increasingly popular vehicles, especially the Model Y crossover, a vehicle that will be competing in the highly competitive crossover segment, which is among the most lucrative in the auto market.

Tesla’s European Gigafactory 4 to begin construction as early as January 2020

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Watch Tesla’s Automatic Emergency Braking kick in for a fake pedestrian

Joey Klender

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Posted on December 13, 2019

Tesla’s Autopilot and Automatic Emergency Braking (AEB) features were recently highlighted in a video depicting the system’s ability to avoid collisions with pedestrians and obstacles.

In a series of videos posted on Twitter, Tesla community member and resident hacker @greentheonly demonstrated how Autopilot, under version 2019.40.1.1, safely and successfully avoided contact with a cardboard dummy fondly referred to as “Sir Steady”. When being driven steadily on Autopilot, the vehicle recognized the pedestrian and slowed down, showing that the vehicle’s computer successfully recognized Sir Steady from a distance.

On one attempt, AEB abruptly stopped the vehicle when Autopilot detected the fake pedestrian. While the use of the AEB system managed to avoid contact with Sir Steady, Autopilot did not recognize him. Fortunately, AEB did manage to keep the pedestrian safe and avoid any damage to the vehicle.

Making the experiment more difficult, @greentheonly then moved Sir Steady on the side of a lane. This test showed that Autopilot and AEB both still need improvement. The vehicle collided with Sir Steady on all four attempts. Interestingly, AP did recognize an obstacle because the vehicle beeped when approaching the dummy. It just failed to stop in time. The AP view confirmed to the Tesla enthusiast that lane positioning within the software was incorrect, even though Sir Steady was clearly in the road.

In the past, AEB has saved numerous Tesla owners from violent accidents. According to Tesla’s Owners Manual, the AEB system utilizes a series of forward-facing cameras and a radar sensor to recognize and avoid colliding with obstacles. It first determines the object’s distance from the front of the car and then applies the braking system as necessary. Many examples of the AEB system show it is an effective safety technique, there is room for improvement.

Autopilot has improved in many ways throughout Tesla’s continuous software updates. Most recently, the 2019.40.2 update gave Tesla owners “Adaptive Lane Speed Adjustment,” a feature allowing vehicles to adjust their speed according to the speed of vehicles on adjacent lanes. Tesla has also added the recognition of some obstacles like traffic cones, to Autopilot’s software.

Watch Tesla’s Automatic Emergency Braking kick in for a fake pedestrian

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Tesla (TSLA) shows strength amid analyst’s 1k Model Y weekly production update

Simon Alvarez

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Posted on December 12, 2019

Tesla shares (NASDAQ:TSLA) are up as a longtime bull provided a quick update on the upcoming Model Y crossover, stating that the electric car maker plans to produce 1,000 units of the vehicle per week to start. This is a bit conservative considering the current weekly output of the Model 3, but it hints at Tesla’s more deliberate approach with its production and delivery forecasts. 

Baird analyst Ben Kallo recently toured Tesla’s Fremont factory together with several other investors. The tour was supervised by the electric car maker, but the analyst did provide a number of new details about the company’s preparations for the production of the Model Y. 

The analyst mentioned that investors in the tour were able to get a glimpse of giant presses “stamping aluminum body panels and robots picking batteries and placing them into battery packs that power the electric vehicles.” Interestingly, it was also mentioned that different Tesla vehicles currently run on the same assembly line, providing the company with flexibility in its vehicle production process. The Model Y will reportedly be included in this line when it enters production. 

Kallo also stated that Tesla will aim to produce 1,000 Model Y per week once the vehicle enters production. This is quite conservative for Tesla, especially since the company is already producing the Model 3 at scale in both the Fremont factory and Gigafactory 3 in Shanghai, China. The Model Y and Model 3 share about 75% of their components, after all, and thus, expectations for the Y’s ramp have been quite optimistic. 

Tesla made a mistake by setting hyper-aggressive targets for the Model 3 ramp in the past. After the vehicle’s initial deliveries in mid-2017, Elon Musk announced that Tesla will attempt to hit a production rate of 2,500 Model 3 per week by the end of the year. This target was reached at the end of Q2 2018, translating to a six-month delay. With this in mind, it appears that Tesla is taking a more cautious approach with its Model Y targets. 

This ultimately bodes well for the electric car maker. Over-promising and under-delivering in deliveries and production have been an Achilles Heel for Tesla for far too long, and little by little, the company appears to be learning how to do the opposite. This was shown in Tesla’s forecasts with the Model Y, with Musk initially announcing a Fall 2020 delivery date for the vehicle. Tesla has since moved this estimate up to Summer 2020, but if recent reports are any indication, the all-electric crossover may start deliveries even earlier. 

With the Model Y, Tesla seems to be intent on under-promising and over-delivering. And considering that the vehicle has the potential to outsell the Model S, Model X, and Model 3 combined, this cautious approach may very well prove to be a masterstroke for the electric car maker. 

As of writing, Tesla stock is trading +1.87% at $359.30 per share.

Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.

Tesla (TSLA) shows strength amid analyst’s 1k Model Y weekly production update

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