We're getting some meat on the bones for Tesla's ambitious expansion strategy. Tesla has reported its fifth consecutive quarterly profit and said it is on track to deliver half a million vehicles this year. There's a ramp-up of Model Y production in the US and Model 3 output at its new Shanghai factory. Tesla said it produced a record 145,036 vehicles in the third quarter and delivered 139,300 vehicles. Impressive stuff, especially during a pandemic. Moreover, Tesla says production at the Berlin factory is expected to start in 2021 and that buildings are under construction and 'equipment move-in will start over the coming weeks'.
Tesla posts fifth consecutive quarterly profit
The traditional automotive players are also ramping up their EV strategies. A Hummer SUV used to be a very large and chunkily styled gas-guzzler with what might be termed muscular stage presence. General Motors plans to revive the brand and it is a little bit different in concept, with an EV pickup to start. The GMC Hummer EV pickup and the Cruise Origin, a purpose-built electric, self-driving, shared vehicle, and other GM EVs will be built at Factory ZERO. Production of the EV pickup will begin in late 2021.
New GMC Hummer EV revealed to battle Tesla’s Cybertruck and Rivian’s R1T
We're into Q3 financial results reporting season. Both Mercedes and BMW picked up some tailwinds on the cash flow front in the third quarter. China sales have surged, but you can only meet demand with drawn down inventory for so long. The tailwinds will be easing.
Demand rebound lifts Daimler Q3 profit and outlook
BMW reports financial boost as demand rebounds
BMW is also focusing on cost, as this sourcing decision suggests. It will want to raise the rate of capacity utilisation at a BMW plant by bringing this Mini variant back in-house.
BMW to end Mini Countryman production at VDL Nedcar
There have been some interesting goings on at hydrogen truck start-up Nikola lately. The old phrase 'smoke and mirrors' springs to mind...
COMMENT - Nikola faces serious credibility questions
Talking of start-ups, this German one has a bit of pedigree and some heavy hitters on board. An outfit to watch. Matthias Mueller, I seem to remember, hadn't done much wrong at the VW Group helm before making way for Herbert Diess in 2018 (something from the archive I wrote at the time). Piech Automotive has a mission to develop upscale electric sports cars and borrow business techniques from the tech sector, contracting out to avoid heavy capital costs, while maxing out on in-house capabilities and expertise. Matthias Mueller is a pretty good name for this start-up to have in its team. Good luck to them.
Piech Automotive names 'leading auto executives' for launch plan
Please, stay safe.
Until next time...