2015 Tesla Model S 85d Sedan 4d on 2040-cars

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How the Chinese tycoon driving Volvo plans to tackle Tesla

HANGZHOU, China — "Do you know how big Volvo is?" asked Don Leclair, finance chief at Ford. It was 2008, and Leclair was responding to an offer from a little-known Chinese businessman to purchase the Swedish carmaker, which Ford owned. The businessman, Li Shufu, had a company with less than half Volvo's sales and a flagship model, King Kong, almost unknown outside China. He was politely shown the door of the "Glass House," Ford's iconic headquarters near Detroit, according to two people who were at the meeting. Ford's Leclair did not respond to requests for comment about the episode. Fast-forward to 2021 and Li Shufu's company, Zhejiang Geely Holding Group, is one of the biggest-selling automakers in the world's biggest auto market. It controls not only Volvo Cars but also a clutch of global auto brands, and a significant stake in German giant Daimler AG, the maker of Mercedes-Benz. These names are now part of its plans for a revolution in autos. Geely is preparing Volvo for a listing on the Nasdaq Stockholm exchange as a route towards the future of transportation: One where cars are part of an electrified network of mobility services, driving themselves, connecting to each other and — like cellphones — generating an array of data and new business opportunities. It's a vision more Silicon Valley than Detroit, where traditional automakers globally are chasing another giant — Tesla Inc. Li Shufu and his advisers eventually convinced Ford to part with Volvo in 2010 for $1.8 billion. It was the first in a string of deals, tapping brands such as Lotus, Smart and the London Electric Vehicle Company to form a network that he calls a "bigger circle of friends" across industry segments. Li Shufu sees them as building blocks to help Geely compete in a future where autos are not vehicles, but "service providers," he told Reuters in his management suite at Geely's headquarters in Hangzhou, eastern China. In that business model, cars will be available on subscription and offer services such as making payments and in-car apps. They will update their own software, and spawn opportunities in the same way as the mobile operating systems developed by Apple Inc and Google. "We are trying to create an automotive ecosystem similar to Android," he said. Li Shufu, 58, recently adopted a foreign first name - Eric - because he liked the sound of it.

Analyst slashes Tesla sales forecast by 40% due to fuel prices

While falling gas prices are cause for celebration among Americans, many of whom are seeing their budget for Christmas presents burgeon on account of the cheap fuel, it's decidedly bad news for Tesla Motors. The electric car manufacturer's fortunes are being seriously impacted by the low cost of petrol, with one of the firm's biggest fans on Wall Street, Morgan Stanley's Adam Jonas, now slashing his expectations for the Palo Alto, CA-based company. Jonas has a long record of being bullish on the brand, but that hasn't stopped him from lowering his forecast for the company by a whopping 40 percent. In other words, Jonas thinks Tesla will only be able to sell 300,000 vehicles by the end of the decade rather than the half a million that was originally forecast. "While nobody buying a Model S today is doing so to save on their monthly expenses, the longer-term story is far more dependent on the volume success of the Model 3," Jonas wrote, according to CNN Money. "Oil price is a factor for Model 3." Gas prices might not be the only factor that could hurt the Model 3, though. Jonas seems to think that Tesla won't be able to sell its more affordable model for anything less than $60,000, which is a far cry from the $35,000 price that the company has targeted. Jonas doesn't elaborate on why Tesla might miss its target so drastically, but it does help to explain his bearish attitude – if gas prices remain low, there's not really any incentive for customers to join the Tesla family. That's doubly true when the cost of joining said family is twice as much as expected.

Tesla gets its own Smartcar, but it's not what you think [w/video]

The idea may be a good one, but to call your new car-based predictive technology "Smartcar" seems like you're asking for a lawsuit from Daimler, the makers of the Smart car. But dig a little deeper and you realize that the plan could work, and whether or not Daimler bites is something we'll let the lawyers decide. In the meantime, here are the details on what the Smartcar for the Tesla Model S is all about. "Whenever you can automate something, that's where the value comes in" - Smartcar CEO Sahas Katta The idea is that your car, using the Internet and a Smartcar subscription, should be able to figure out what time you head off to work each day. Once it does, it can have the cabin at the right temperature (heated in the winter, cooled in the summer) and the battery charged for the drive by the time you're headed out the door. The automated system can also tell the charger to only slurp electrons when lower-cost nighttime electricity rates are in effect. The slightly confusing part is that the Model S already has the capability to program nighttime charging built-in and it can also be pre-conditioned remotely without the Smartcar system, you just have to tell it to do so with your smart phone (see one happy driver doing just this in frigid temperatures in the second video below). The difference with Smartcar is that your Tesla will soon be able to do all this stuff automatically. For example, the system "predicts the required range for your next journey" and "will only delay charging to off-peak hours when it can confidently determine your vehicle will have enough range available for the rest of the day." Smartcar is being designed for the Model S and the upcoming Model X, but the developers say "we're working to bring support to connected vehicles from other manufacturers in the near future." The lead developer behind Smartcar is Sahas Katta, who readers might remember from his GlassTesla project, which integrated Google Glass with a Model S. We called him up to ask why it makes sense to pay $100 a year for a Smartcar subscription when the features it offers are available in the car's default settings. Katta had obviously thought the arguments through, and told AutoblogGreen that he knows plenty of Model S owners who don't remember to set these triggers every day. "Whenever you can automate something, that's where the value comes in," he said.