Tesla is now 2nd largest U.S. automaker

Tesla on Monday became the second-largest U.S. car maker in terms of market capitalization, displacing Ford, whose sales are lagging amid concerns about the ability of the U.S. market to keep growing.

Many major auto makers reported sharp U.S. sales declines in March compared to a year ago, but Tesla over the weekend said it saw a huge jump in sales in the first three months of the year.

That was enough to send the electric car maker's stock soaring Monday, even as investors punished major car brands for reporting lower-than-expected sales last month.

Tesla said it delivered 25,000 of its high-tech vehicles in the January-March period -- a 69 percent surge compared to the first three months of 2016 -- indicating it was on its way to meeting its goal of 50,000 vehicle deliveries by mid-2017.

Late last year, the company reported its first quarterly profit in more than three years, but then slipped back into unprofitability in the following quarter.

Investors rewarded the company, and stock movements Monday reshuffled the hierarchy among U.S. carmakers, with Tesla Motors overtaking Ford for the number two spot and closing the gap with GM, the biggest US automaker by market capitalization.

Near 1800 GMT, Tesla was up 5.5 percent to $293.89 for a market capitalization of $47.9 billion.

Ford, which fell 2.6 percent, has a market capitalization of $45.1 billion. GM fell 3.9 percent and has a market capitalization of $50.9 billion.

Tesla founder and CEO Elon Musk marked the occasion on Twitter with a dig at short sellers, investors who bet that the company's stock would decline.

"Stormy weather in Shortville," Musk tweeted.

Major brands struggle

For the industry as a whole, it may indeed be stormy weather.

Car companies appeared to be struggling to meet forecasts of an overall March sales increase of two percent year-over-year, according to auto data firm Edmunds.

GM saw sales gain 1.6 percent, helped by Americans' strong demand for light trucks and sport utility vehicles, as well as bigger discounts.

Nissan sales also rose, up 3.2 percent compared to March 2016, helped by its popular Rogue compact SUV.

But the news was not good for many other big players.

Ford reported sales fell a worse-than-expected 7.2 percent, while Toyota sales dropped 2.1 percent, compared to the same period last year.

FCA US, the American arm of Fiat Chrysler, continued to struggle, reporting a five percent decline last month, while in the first three months of the year, sales were down eight percent.

Record truck and SUV sales could not help American Honda notch an overall increase last month, as total sales slipped 0.7 percent, when accounting for declines at its Acura luxury brand.

In an earlier forecast note, Edmunds analyst Jessica Caldwell struck a cautionary tone, saying there were several areas of concern.

"Inventories have reached levels not seen in more than a decade, and incentives are rising," Caldwell said, referring to discounts and other enticements offered to consumers.

"We're also seeing an increase in loan terms and indications of a rise in subprime lending, which demonstrate sales aren't coming as easily as they used to," she said.

But while Toyota echoed that cautionary tone, saying the industry's overall selling rate may be declining, GM remained optimistic.

"More people are working, consumer confidence is at a 16-year high, fuel prices are low," Kurt McNeil, head of GM's US sales, said in a statement.

"We see more growth ahead for our brands," McNeil said.

source: news.abs-cbn.com

Elon Musk: tech dreamer reaching for sun, moon and stars

SAN FRANCISCO - Sending tourists for a trip around the moon is the latest big idea launched by Elon Musk, a Silicon Valley star known for turning his passions into visionary enterprises.

Musk has become one of the United States' best-known innovators. He was a founder of payments company PayPal, electric carmaker Tesla Motors and SpaceX, maker and launcher of rockets and spacecraft.

SpaceX recently announced that two private citizens have paid money to be sent around the Moon in what would mark the farthest humans have ever traveled to deep space since the 1970s.

In a sector where entrepreneurs often speak of "moonshots," Musk is one of the biggest dreamers.

The 45-year-old South Africa-born entrepreneur has channeled a dot-com fortune into a series of ambitious ventures.

Besides being the head of SpaceX and Tesla, Musk is the chairman of SolarCity, a solar panel installer recently bought by Tesla.

He also operates his own foundation focusing on education, clean energy and child health.

And he drafted a paper detailing the feasibility of an ultra-fast "Hyperloop" rail transport system that would transport people at near supersonic speeds, then made it freely available to enterprises willing to pursue the project.

'DOESN'T SIT AROUND'

"He is a visionary who has some key passions which he pursues with vigor," Jackdaw Research chief analyst Jan Dawson said of Musk.

"He doesn't sit around and wait for people to do something about them; he goes out and does it himself."

Musk's penchant for rocketing after his passions may appear to spread him thin, but he has built a record of success.

Musk appears strong on painting big ideas in broad strokes and then enlisting people skilled at tending to the nuts-and-bolts work needed to follow through, say observers.

"He doesn't seem to be able to focus," analyst Rob Enderle of Enderle Group said.

"He just likes coming up with the ideas and is good at picking other people who can deal with the plumbing -- that is why he is able to do a lot of stuff."

And while some may wonder whether hubris or realism reigns in Musk's moves, his businesses have gained value, with the jury still out on the wisdom of the Tesla acquisition of SolarCity.

"He can certainly sell his ideas," Enderle said.

"The fact his businesses have held together so long indicates he is not a con man."

FIGHTING AGAINST EVIL
Musk more than a year ago took part in creating a non-profit research company devoted to developing artificial intelligence that will help people and not hurt them.

Musk found himself in the middle of a technology world controversy by holding firm that AI could turn on humanity and be its ruin instead of a salvation.

Technology giants including Google, Apple and Microsoft have been investing in making machines smarter, contending the goal is to improve lives.

"If we create some digital super-intelligence that exceeds us in every way by a lot, it is very important that it be benign," Musk said at a conference in California.

He reasoned that even a benign situation with ultra-intelligent AI would put people so far beneath the machine they would be "like a house cat."

"I don't love the idea of being a house cat," Musk said, envisioning the creation of neural lacing that magnifies people's brain power by linking them directly to computing capabilities.

LIVING IN A GAME

Some of his ideas have prompted questions about whether Musk is a visionary or mad scientist. He has raised eyebrows with a theory that the world as it is known may be a computer simulation.

"I've had so many simulation discussions it's crazy," Musk said while fielding a question on the topic at the conference.

He maintained that "the odds that we are in base reality is one in billions."

Musk lives in Los Angeles and holds US, Canadian and South African citizenship.

He moved to Canada in his late teens and then to the United States, earning bachelor's degrees in physics and business from the University of Pennsylvania.

After graduating, Musk abandoned plans to pursue further studies at Stanford University and started Zip2, a company that made online publishing software for the media industry.

He banked his first millions before the age of 30 when he sold Zip2 to US computer maker Compaq for more than $300 million in 1999.

Musk's next company, X.com, eventually merged with PayPal, the online payments firm bought by Internet auction giant eBay for $1.5 billion in 2002.

Forbes estimates Musk's current net worth at $13.4 billion.

source: news.abs-cbn.com

Tesla taps Apple engineer for Autopilot software

Electric carmaker Tesla Motors Inc. has hired a key Apple Inc. software engineer to oversee its Autopilot self-driving software efforts, Tesla said in a blog post Tuesday.

Chris Lattner, who served at Apple for more than a decade, said in a online message to Apple developers on Tuesday morning that he would "leave Apple later this month to pursue an opportunity in another space" without saying which company he planned to join.

Later in the day, Tesla posted a message on the company's website saying that Lattner had been hired as vice president of Autopilot software but did not say when he would start work there. Tesla declined to comment beyond the announcement. Apple confirmed the departure but would not comment beyond Lattner's posted message.

The move is a significant win for Tesla, bringing a high-profile figure in the world of software development for a position that previously did not have a full-time leader.

Tesla's Autopilot was overseen on an interim basis by the software chief Jinnah Hosein of SpaceX, which is also headed by Tesla Chief Executive Officer Elon Musk.

Autopilot is the hardware and software system on Tesla vehicles that allows self-driving in some situations but still requires drivers to keep their hands on the steering wheel. Federal safety regulators in the United States are examining whether Autopilot played a role in a fatal crash in Florida last year.

Lattner most recently served as a senior director in the developer tools department at Apple and was best known for introducing Swift, a programming language that made it easier for software developers to write apps for iOS, the operating system that powers iPhones and iPads.

In addition to developing Swift at Apple, Lattner also led a successful push to make the programming language "open source," meaning that developers could incorporate it into their applications without having to pay fees to Apple.

The move was a first for Apple, which until then had typically tightly controlled the technology it created. Microsoft Corp. and Google parent Alphabet Inc. have also either published or contributed to open-source programming languages.

source: news.abs-cbn.com

Tesla's Musk adds solar roofs to his clean energy vision

Tesla Motors Inc. Chief Executive Elon Musk on Friday unveiled new energy products aimed at illustrating the benefits of combining his electric car and battery maker with solar installer SolarCity Corp.

The billionaire entrepreneur showed off solar-powered roof tiles that eliminate the need for traditional panels and a longer-lasting home battery, which Tesla calls the Powerwall, aimed at realizing his vision of selling a fossil fuel free lifestyle to consumers.

"This is sort of the integrated future. An electric car, a Powerwall and a solar roof. The key is it needs to be beautiful, affordable and seamlessly integrated," Musk said while showcasing the products on homes that once served as the set of the television show "Desperate Housewives."

Musk is the biggest shareholder in both Tesla and SolarCity, which is run by two of his first cousins. Analysts have been dubious of the deal's proposed synergies, with some suggesting the merger is a way for Tesla to rescue money-losing SolarCity. A vote on the acquisition is scheduled for Nov. 17.

The rollout of the product, expected as soon as next summer, would be "unwieldy" if the two companies are not combined, Musk told reporters.

Having two separate companies "slows things down, makes them more expensive. It's worse for shareholders," he said.

Musk refused to answer a reporter's question about how Tesla's balance sheet would accommodate the acquisition of SolarCity.

By incorporating solar modules into rooftops, Tesla is hoping to succeed with a solar technology that to date has had little success. Just this year, Dow Chemical said it would stop selling a solar shingle it launched five years ago.

Tesla's glass solar roof tiles would look far better than any similar product, Musk said. They can be manufactured in a range of styles, which were demonstrated on the rooftops on the set.

Tesla gave little detail on cost, except to say that the cost of the roof would be less than a conventional roof plus solar. The product will appeal to home builders and people looking to replace their roofs, Musk said, adding that the shingles would be more durable and have better insulation qualities than conventional roofs.

SolarCity co-founder Peter Rive, Musk's cousin, said the solar roofs could easily have a five percent share of the new roof market within a year or two.

The new generation of home and industrial batteries will be available this year.

source: www.abs-cbnnews.com

Tesla to build self-driving tech into all cars

SAN FRANCISCO - Tesla will build self-driving technology into all the electric cars it makes, running it in "shadow" mode to gather data on whether it is safer than having people in control.

"Every car that Tesla produces from here on out will have the full autonomy capability," said Tesla co-founder and chief executive Elon Musk.

A new onboard computer with 40 times the processing power of the previous generation will run a new "neural net" for vision, sonar and radar sensors, he said.

During a conference call with reporters, Musk referred to the hardware as "basically a super-computer in a car," different from auto-pilot technology to date.

It will be up to regulators and the public as to when the self-driving capabilities will actually be put to use on roads, according to Musk.

Meanwhile, the system will run in "shadow mode" to gather data regarding when it might have avoided or caused accidents if it was in command.

Musk hoped that Tesla would one day be able to impress regulators with a statistically significant amount of data showing the autonomous driving technology would avoid crashes and save lives.

"Then we are at a point where we can allow it to take action," Musk said of amassing data showing the system's merits.

Upgrading existing cars with the autonomous driving hardware was not practical, according to Tesla.

"It would be like giving someone a spinal cord transplant; not advisable," Musk said on the call.

MILLIONS OF MILES

Tesla planned to calibrate the system using feedback from millions of miles of real-world driving before enabling the new hardware.

In the meantime, Teslas with the first-generation Autopilot technology will lack some standard safety features such as automatic breaking and collision warnings.

As features are validated, they will be enabled with over-the-air software updated.

The United States last month unveiled a sweeping new regulatory framework for the unexpectedly rapid rise of self-driving automobile technology, just days after Uber broke ground with its first driverless taxis.

US Transportation Secretary Anthony Foxx said the federal government intends to set the safety standards for cars of the future where no human is involved in the driving, even while individual states still regulate cars with humans behind the wheel.

Announcing a 15-point safety assessment for driverless car systems, Foxx stressed that the government wants to work with developers -- which include most large automakers as well as tech giants such as Uber and Alphabet (Google) -- without stifling their efforts.

A Self-Driving Coalition for Safer Streets boasts founding members including Ford, Google, Lyft, Uber and Volvo.

The coalition supports guidelines that standardize self-driving regulations across the country, avoiding confusion and lost industry momentum.

EXPECTATIONS

Meanwhile, Germany wants Tesla to stop advertising the "autopilot" function on its cars because it leads to false customer expectations, as the system comes under scrutiny following two fatal crashes.

Transport regulator KBA has written to the company, telling it: "In order to prevent misunderstandings and false expectations from clients, we are asking that the misleading term 'Autopilot' no longer be used in advertisements for the system."

The KBA letter cited in Bild am Sonntag was confirmed to AFP by the transport ministry.

Germany has been conducting an investigation into the autopilot system in vehicles made by electric carmaker Tesla, which has been available with its Model S series since October 2015.

Questions have been raised over the system after two fatal crashes, one in northern China in January and another in the US state of Florida in May.

In September, a Tesla electric car crashed into a tourist bus on a motorway in northern Germany, lightly injuring the driver who said he had activated the vehicle's autopilot system.

At the time, Tesla said the driver had confirmed the autopilot was "functioning properly and... was unrelated to the accident."

source: www.abs-cbnnews.com

Tesla recalls all Model S cars worldwide for seatbelt fix

NEW YORK, United States - Tesla said Friday it was recalling all 90,000 of its Model S luxury electric cars sold worldwide since 2012 after discovering a security problem with seatbelts.

The front seatbelts failed to correctly fasten, but no accidents or injuries had been reported as a result, Tesla said, in a blow to its stellar reputation.

In an email to customers, Tesla said it was ordering the recall as a "proactive" step after learning of a Model S in Europe with a front seatbelt "that was not properly connected to the outboard lap pretensioner."

"This vehicle was not involved in a crash and there were no injuries. However, in the event of a crash, a seatbelt in this condition would not provide full protection," the email said.

The notice said the company had inspected 3,000 vehicles and found no issues, but "we have decided to conduct a voluntary recall as a proactive and precautionary measure to inspect all front Model S seatbelts and make absolutely sure that they are properly connected."

Tesla's cars have been in high demand, despite a price tag of $70,000 and up, and the vehicles had won much praise -- until a recent Consumer Reports review which highlighted problems with the Model S.

Some analysts see Tesla's innovations as driving a new model for the auto sector, and predict it can grow from its small base into a major producer.

Tesla plans to unveil its Model 3 electric car aimed at less affluent buyers in March 2016.

Model 3, whose price is estimated at $35,000 -- half the cost of other Teslas -- is seen as key to expansion for the carmaker, which has a loyal following among well-heeled buyers.

source: www.abs-cbnnews.com

Apple poaching auto engineers to build battery division

SAN FRANCISCO - Electric-car battery maker A123 Systems has sued Apple Inc for poaching top engineers to build a large-scale battery division, according to a court filing that offered further evidence that the iPhone maker may be developing a car.

Apple has been poaching engineers with deep expertise in car systems, including from Tesla Inc, and talking with industry experts and automakers with the ultimate aim of learning how to make its own electric car, an auto industry source said last week.

Around June 2014, Apple began aggressively poaching A123 engineers tasked with leading some of the company's most critical projects, the lawsuit said. The engineers jumped ship to pursue similar programs at Apple, in violation of their employment agreements, A123 said in a filing earlier this month in Massachusetts federal court.

"Apple is currently developing a large-scale battery division to compete in the very same field as A123," the lawsuit read. The suit was reported earlier by legal website law360.com.

Neither Apple nor A123 immediately responded to requests for comment and Apple has not responded to the allegations in the complaint. The company also sued five former A123 employees, who could not be reached for comment.

A123 Systems is a pioneering industrial lithium-ion battery maker, which was backed by a $249 million U.S. government grant. It filed for bankruptcy in 2012 and has been selling off assets.

Lithium-ion is a battery technology that can be used in applications from computers to airplanes, but A123 specializes in big batteries that can be used in big machines, including cars. A123 did not say what specifically the engineers worked on.

It said in its lawsuit that the engineers who left were of such caliber that the projects they had been working on had to be abandoned after their departures. It also accused one of the five defendants, Mujeeb Ijaz, of helping Apple recruit among its ranks.

"It appears that Apple, with the assistance of defendant Ijaz, is systematically hiring away A123's high-tech PhD and engineering employees, thereby effectively shutting down various projects/programs at A123," according to the lawsuit.

"They are doing so in an effort to support Apple's apparent plans to establish a battery division that is similar if not identical to A123's, in competition with A123."

In its complaint, A123 said it believed Apple was looking to hire other battery engineers from companies including LG Chem Ltd, Samsung SDI Co Ltd, Panasonic Corp , Toshiba Corp and Johnson Controls Inc . None of the companies immediately responded to requests for comment.

A123 added that former executive Ijaz also contacted its battery partner SiNode Systems on behalf of Apple. Ijaz's outreach to SiNode "confirms that his work on behalf of Apple is at least substantially similar (if not identical) to his work at A123," the filing said.

SiNode did not respond to a request for comment.

Trying to build an actual car would mark a dramatic shift for the maker of the iPhone and iPad. Apple often researches projects which are then discarded, but has so far mainly stuck to its core expertise in mobile and electronic devices.

Whether it will build and release an electric car or a more evolved autonomous vehicle remains to be seen, the source told Reuters last week. But evidence is mounting that the maker of smartphones and other mobile gadgets is, like Google Inc , researching and developing next-generation car technologies.

Silicon Valley is competing to create software to run self-driving vehicles, as well as services associated with autonomous driving, such as mapping, car-sharing and car recharging services.

Data on LinkedIn, the professional networking site, shows that Apple has been siphoning up automotive engineers and experts, many with expertise in autonomous driving technology, at a significant pace.

A search of LinkedIn profiles turns up more than 60 former Tesla employees now employed by Apple, including dozens of hardware, software, manufacturing and supply chain engineers. There are also a variety of ex-Tesla recruiters, retail or sales specialists, attorneys and product managers.

Apart from the five defendants, at least six other ex-A123 engineers had moved over to Apple, according to their LinkedIn profiles, though with titles like "Technical Program Manager," their duties at Apple are unclear.

source: www.abs-cbnnews.com