The Italian automaker Fiat Chrysler (FCA) withdrew from the merger deal with the French Renault (RNO). According to the company info, the merger proposal was rejected by the French government, which owns 15 % of Renault.
If the 35 billion euros merger would have continued, the companies would have created the world’s third largest car manufacturer. Shares of Nissan´s and Renault alliance partner Mitsubishi Motors fell in Tokyo today, while Fiat closed yesterday down 3,3 % to 12,75 dollars in New York. Renault traded yesterday down 0,65 % to 56,20 dollars in Paris.
Cars and auto parts may be the next trade dispute between the US and EU. According to Reuters, this issue may rise already next week.
The EU started the official trade talks with the US last month and the new tariffs for cars and auto parts would affect 47 billion euros worth of goods.
Tesla (TSLA) announced yesterday its second master plan or vision for the future. CEO Elon Musk also wrote also about his ideas of sustainable energy, new segments of Tesla and self-driving cars.
Tesla´s idea is to integrate energy generation and storage. According to Musk the company is bringing Tesla and SolarCity together in order to get better and integrated services for customers.
Musk also wrote about the automotive production:
– What really matters to accelerate a sustainable future is being able to scale up production volume as quickly as possible. That is why Tesla engineering has transitioned to focus heavily on designing the machine that makes the machine — turning the factory itself into a product. A first principles physics analysis of automotive production suggests that somewhere between a 5 to 10 fold improvement is achievable by version 3 on a roughly 2 year iteration cycle. The first Model 3 factory machine should be thought of as version 0.5, with version 1.0 probably in 2018, he said.
Tesla, market cap of 33,6 billion dollars, is also seeking new segments in autoindustry. According to Musk there are two other types of electric vehicle needed: heavy-duty trucks and high passenger-density urban transport. Both are in the early stages of development at Tesla and should be ready for unveiling next year.
– We believe the Tesla Semi will deliver a substantial reduction in the cost of cargo transport, while increasing safety and making it really fun to operate, he said.
Musk also made comments regarding the self-driving cars.
– When true self-driving is approved by regulators, it will mean that you will be able to summon your Tesla from pretty much anywhere. Once it picks you up, you will be able to sleep, read or do anything else enroute to your destination, he wrote.
Tesla shares ended yesterday to 228 dollars, up 1,38 percent in New York. The company is announcing the next interim report in the 3rd of August.
According to Elon Musk, the CEO of Tesla (TSLA:US) the company is aiming to become the world leader in the manufacturing processes in the automotive industry. Speaking in the company quarterly meeting, Mr Musk said that he believes in manufacturing and that the most potential innovations in the automotive industry is there.
– We believe in manufacturing and that is why Tesla wants to become the leader in the manufacturing in automotive industry. We believe that in production there are more potential for innovations than for example in design. We are increasing our vertical integration, he said on Wednesday.
He also explained about the problems in the manufacturing process at the moment with 6000-7000 components and how it will affect the whole manufacturing process, timetable and quality if some of the components are missing. – That is also why, we are exploring ways, how to minimize risks in our production, but also that our R&D cycle is 2-3 years, not 6 years, he stated. This also means that the current supply chain has to adapt to the new cycle of doing things.
Tesla also announced that they are expecting to reach the mass production by the second half of next year and that would give the company the benefit to scale rapidly by using modern technology and design.
In the interim report Tesla also estimates that they will be producing 500.000 cars by 2018. Mr Musk was expecting that 100 000 would be S-cars, 150.000 X-cars and the rest of, 250.000 the new model 3-cars.
Musk did not want to comment about the possible new production plants in the near future. – It is obvious that California is not the best possible place for shipments for example to Asia. This will happen at some point, when we have reached the mass production and it is up and running, he said. In the first quarter report the company says it will open more than 70 new sales & service locations globally.
The orders of the new Model 3 have reached 400 000 and 93 % of the customers are new, according to the company. Musk also pointed that the way Tesla is differentiating from its competitors like Google and Apple, is that they have their own production and he believed that by this way Tesla can attract the best manufacturing talent as well.
During the first quarter, the company revenues were 1,1 billion dollars and net loss was 278 million dollars. The net loss per share was 2,13 dollars compared to 2,44 dollars at the year end. Elon Musk did not want to disclose any plans for new capital for this year. Tesla share jumped after the full-year delivery forecast, but ended down 4,2 percent to 222,56 dollars in New York.