The news week has been tough on Tesla Motors Inc , all things considered. The company got some much deserved praise from an unlikely source. Outcasts have come back to rival the firm. Apparently Ludicrous mode is a bit overrated for some engineers. And we’re once again reminded of the EV maker’s money problems.
Tesla Gets Surprise Support From Jim Cramer
Tesla Motors Inc got a surprising endorsement this week and it came from none other than CNBC’s Jim Cramer. It was no surprise to hear the Mad Money host voice his opinion on the company. In actuality, he has mentioned the luxury EV maker numerous time before. But to say that Cramer was particularly fond of Tesla before now would have been a bit of a stretch. His tendencies towards the stock have often leaned on bearish. However, this time around Cramer was singing a different tune.
He pointed out the EV maker’s progressive stance against the odds. “We often forget that there is such a thing as progress, and progress can create a better world,” Cramer asserted. “Progress is also the secret propellant of stocks.”
Mr. Cramer didn’t summon this change of heart on his own, though. His point of view changed when he heard Jay Leno share his own stance on Tesla. Leno says he can’t quite figure out why people are against the EV producer.
“I don’t understand why people attack this car,” Leno said. “It is made in America, by Americans.”
Former Tesla Execs Gang Up on Tesla
The EV market has grown saturated with new and eager rivals. One need only take a look at China and its EV developments to get a good idea of what lies in store for the electric car scene. It was reported this week that Atieva, an energy solutions company, is fast on its way to rivaling Tesla in 2 years. Unlike most competitors though, Atieva has a bit of advantage over its budding peers.
The car Atieva wishes to produce has been referred to as “Project Cosmos”. It is also said to be a Model S challenger. Sources state the upcoming EV’s drivetrain is already being tested. On board a Mercedes-Benz Vito, the powertrain can reach 60 MPH in 3.1 seconds. The end result will have at least 0.4 seconds shaved off it though.
But this EV up-and-comer has an edge over other rivals. Three former Tesla Executives lead the Cosmos venture. Atieva was founded by Former Tesla VP, Bernard Tse, and Martin Eberhard. The latter too held an executive role at Tesla. Then Peter Rawlinson was taken in to help oversee Cosmos’s development. Rawlinson was the Model S Chief Engineer and VP a few years back as well. He is now CTO at Atieva.
Atieva hopes to have the car on the market by 2018.
Tesla needs a massive tax break
On the financial side of things, Tesla Motors Inc isn’t as strong as it wants to be. The popular mass market Model 3 needs all the help it get to reach the market next year. Tesla has collected an overwhelming and, frankly, unexpected number of pre-orders for the car. Now the company is in desperate need for expansion. It has even pushed its 0.5 million production goal up by 2 whole years. After hearing that it sold $1.7 billion’s worth in stock last week, the EV firm now needs a tax break of over $100 million — $106 million.
Porsche Attacks Tesla’s Ludicrous Mode
Tesla Motors has no shortage of opinions being thrown at it this week. Perhaps in the spirit of things, an engineer at Porsche saw it fitting to voice his own views as well. From the safe confines of his anonymity, the engineer feels that Tesla Motors’ Ludicrous mode is far overrated.
“The thing about Ludicrous mode is that it’s a facade… Two launches saps the whole battery.”
Ludicrous mode on Tesla EVs is a feature that adds an unprecedented amount of speed and torque. It allows the Model S to go from 0 to 60 MPH is just 2.8 seconds. Across the internet, Tesla fanatics have posted footage of the near out of this world fun powered by Tesla’s battery packs. Though among the only sort of its kind in the EV market, rivals still enjoying pointing at its trivial cons.
True to this, the anonymous engineer stated that Porsches upcoming Mission E concept will have no limitations of the sort.
“That won’t be the case with the Mission E,” he bravely asserted from behind his veil of anonymity. “You’ll be able to run it hard, over and over; the battery will not overheat, the power control module will not overheat, and the seats will not suck.”
But Porsche does have a point. Ludicrous mode is a taxing feature on the Model S and Model X. It not only drains the battery but is inconsistent with its output too. The battery pack must be charged to 95 percent in order for maximum acceleration to be reached. For now, we eagerly look to Porsche’s Mission E to show Tesla how it should be done.