Tesla China announces R&D center, shares teaser for Tesla Bot project
Tesla China has formally announced its newly completed Research and Development (R&D) center in the Gigafactory Shanghai complex. The recently completed facility will be hosting several critical programs that would benefit Tesla on a worldwide scale, such as the design and creation of the company’s upcoming $25k car. Interestingly enough, Tesla China’s announcement video for its R&D center also included a rather interesting reference to a future product.
The official announcement of Giga Shanghai’s R&D center was posted on social media platforms such as Weibo and Twitter. The company posted a two-minute video to commemorate the announcement, which features some of the key milestones that Tesla China has achieved over the years. These include the ramp of the Model 3 and Model Y, as well as the creation of a dedicated Supercharger facility. A substantial part of the video was also dedicated to the company’s software prowess.
Tesla Shanghai Research and Development Center and Tesla Shanghai Gigafactory Data Center are officially landed. We will let it roll recently.💪 pic.twitter.com/CpV7arsvjo
— Tesla Greater China (@teslacn) October 25, 2021
“The Shanghai R&D Innovation Center is Tesla’s first overseas R&D center based on vehicle development, including software, hardware, electronics, materials, power, and energy engineering teams. In the future, Tesla’s Shanghai R&D and Innovation Center will carry out more original development work around complete vehicles, charging equipment, and energy products, and develop into a comprehensive R&D center on the same scale as the US R&D center,” Tesla noted in a local social media platform in China.
Tesla VP of Vehicle Software David Lau and VP of Vehicle Engineering Lars Moravy spoke about the newly launched facility. According to Lau, as Tesla was starting to build its first manufacturing facility in China, the company was also growing its engineering team. This team was designed to be high-performing and self-sufficient, and it did not take long before China’s engineering team started making recommendations for improvements in the company’s products. The presence of the R&D center would most certainly expedite the growth of Tesla’s China-based engineering talent.
“These next steps in this building today is the first time overseas Tesla had all its great engineer functions in one facility. Vehicle firmware, software, vehicle engineering, manufacturing, as well as materials, electrical, and mechanical design are right here. We began developing products not only for the China market but for the global vehicle market with the Chinese engineering team here. And we’re excited to see that the development of a world-class organization with the support of the Chinese government,” Moravy remarked.
Interestingly enough, Tesla China made it a point to include the Tesla Bot as part of the products that it highlighted while the VP of Vehicle Engineering was speaking. Whether this is hinting that some developments of the Tesla Bot would be made in Gigafactory Shanghai’s R&D center remains to be seen. But if the talent is there, there is no doubt that Tesla would utilize all its resources across the globe to make such an ambitious project a reality.
Watch Tesla China’s official announcement of its R&D center in the video below.
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Tesla China announces R&D center, shares teaser for Tesla Bot project
Tesla shares (TSLA) jump following blockbuster Hertz order announcement
Credit: Tesla
Tesla (NASDAQ: TSLA) shares surged over 7% during the morning trading hours on the heels of an announcement that the electric automaker had secured an order for 100,000 Model 3 vehicles in a deal worth $4.3 billion.
In a report this morning, it was confirmed that rent-a-car company Hertz had secured a massive order for 100,000 Tesla Model 3 electric vehicles. The order stands as the single largest purchase order of electric vehicles to date and provides Tesla with roughly $4.3 billion in revenue in a single transaction. Tesla reported its ninth consecutive quarter of profitability last week with $13.757 billion in revenue in Q3. The deal with Hertz is worth roughly one-third of the revenue that the automaker reported for all of Q3.
The deal has sent Tesla shares through the roof, extending toward $1,000 per share. At the time of writing, Tesla shares were up over 7%, or roughly $67, trading at around $976.
GOAT’s recognize GOAT’s. Introducing our all new EV fleet (@TomBrady not included) #Hertz #LetsGo pic.twitter.com/TElSE2PDKb
— Hertz (@Hertz) October 25, 2021
The deal between Tesla and Hertz is extremely bullish for the automaker, especially as the transition to electrification is now being recognized by some of the largest car rental agencies in the world. Wedbush analyst Dan Ives said the $4.3 billion deal is “a major feather in the cap” for Tesla and is indicative of the continuing surge toward electrification, especially in terms of EV demand. “While Hertz is in the early stages of electrifying its rental car fleet, Tesla getting an order of this magnitude highlights the broader EV adoption underway in our opinion as part of this oncoming green tidal wave now hitting the U.S.,” Ives wrote in a note to investors today.
Hertz placed an order for 100,000 Tesla vehicles by the end of 2022 which is the biggest electric deal order ever placed and representing $4.2 billion. This Hertz deal is a “major feather in the cap” for Tesla and speaks to where demand is heading in the Green Tidal Wave.
— Daniel Ives (@DivesTech) October 25, 2021
Pierre Ferragu of New Street Research also commented on the deal between Tesla and Hertz, stating that the rental company’s decision to choose Tesla was obvious. “VW or others would have dreamt of winning this deal and would have offered a discount,” Ferragu wrote. “Tesla won it without discount. It says a lot about the gap with competition on TCO.”
3) Combine the two: VW or others would have dreamt of winning this deal and would have offered a discount. Tesla won it without discount. It says a lot about the gap with competition on TCO.
— Pierre Ferragu (@p_ferragu) October 25, 2021
Hertz executives are also extremely excited regarding the idea of adopting electric vehicles and recognize that EVs are now a crucial part of ongoing consumer demand for rental cars. “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Mark Fields, Interim Chief Executive of Hertz, said. “The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.”
Hertz will begin offering Model 3s to customers at some locations starting in November. Additionally, Hertz will begin installing charging infrastructure throughout the U.S. and Europe, with plans to add 3,000 stations for customers.
Disclosure: Joey Klender is a TSLA Shareholder.
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