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Tesla Model 3 Could Be in For a Surge in Sales, Market Survey Suggests

One of the most famed Apple analysts, Gene Munster, has recently turned his attention to Tesla.

Munster’s firm, Loup Ventures, “surveyed 519 people in the U.S. regarding interest in buying a Tesla Model 3… [and] found a surprisingly high number (17 percent) of people would buy a Model 3 at $40,000. Even if this survey is off by [a factor of three], the results still imply significant market share gains are in store for Tesla given their current U.S. unit market share is below 0.5 percent.”

Even though any first-time survey has its limitations, Munster acknowledges that the insights are “still valuable” for future projections. He predicts, “Longer-term (10 years from now) we believe Tesla can capture 17 percent of the U.S. auto market share, consistent with our survey results… [although] it’s easy for someone to say they’re going to spend $40,000 and harder for them to actually do it. Our optimism regarding this initial survey is based on dialing back the intent to buy by 60 percent, which would still indicate significant market share gains.”

So what does all this mean? According to Munster, “Expect Tesla market share to increase from 0.5 percent to 1.5 percent. As of the end of Dec 2017, Tesla has delivered 1,772 Model 3s. We expect 14,000 in the Mar 2018 quarter and 168,000 deliveries in 2018, with a 70 percent chance they actually hit those numbers… If we assume Model 3 deliveries are heavily weighted (70 percent) in the U.S. initially, and that Tesla delivers the net preorders over the next two years, we expect Tesla (Model 3, S and X) to make up 1.5 percent of all cars sold in the U.S.”

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On the other hand, Munster expects a choppy ride. He notes, “[Tesla’s] ramp in Model 3 production won’t be linear. As Model 3 production scales to meet this backlogged demand, it will not be a smooth ramp from ~1,000 vehicles per week today to their goal of 10,000 per week. Steps up in output require factory retooling and significant capex investment that will cause temporary steps down in production. In other words, don’t be alarmed by the inevitable news of Model 3 production issues, as it may be part of the natural process of scaling production.”

Nevertheless, Tesla remains laser-focused on improving its manufacturing prowess. Once executed, volume deliveries of ~455,000 Model 3 pre-orders will likely result in market share impact. To accomplish this, Tesla’s herculean efforts to ramp up battery production at Nevada’s Gigafactory are both forward-thinking and industry-leading. That said, Munster admits, “We’ve seen the challenges Tesla has had scaling their production… To tackle this problem, Tesla has [also] made acquisitions in the manufacturing space.”

Elon Musk has said, “The biggest epiphany I’ve had this year is that what really matters is the machine that builds the machine, the factory, and that this is at least two orders of magnitude harder than the vehicle itself.” Musk may be getting a head-start on this front as Munster notes, “While other car manufacturers build gas-powered vehicles at scale, building [high volume] EVs is a vastly different process that will require traditional auto manufacturers to re-engineer their production facilities. That means every automaker that wants to compete in the future needs to go through the production pain Tesla’s experiencing today.”

Article originally published on evannex.com by Matt Pressman. EVANNEX offers aftermarket accessories, parts, and gear for Tesla owners. The Florida-based company also maintains a daily blog on the latest Tesla news. Source: Loup Ventures (Note: Loup Ventures surveyed 519 people in the U.S. — survey age and household income distribution representative of U.S. census data. Survey question: Would you buy a Tesla Model 3? ($40,000); Survey results: Yes: 17 percent, No: 61 percent, Maybe: 22 percent)


Seiichi Miyake: 5 Brilliantly Simple Uses for His "Tenji Blocks"

Inclusive design led to safer streets.

If you have ever taken public transportation, cruised through a city on a bicycle, or even simply crossed the street, you can thank the Japanese inventor Seiichi Miyake for helping you get from point A to point B safely.

That’s because Miyaki is credited with inventing the ribbed, yellow squares of pavement that warn pedestrians to stand back from the edge of a train platform, known as “Tenji blocks.” Monday marks the 52nd anniversary of the first Tenji block installment in Okayama City, Japan, and Google marked the occasion with a front-page doodle.

Seiichi Miyake: How His Innovative Design Helped the Visually Impaired

The tactile blocks enable more to safely use the roads.

Google paid tribute to Seiichi Miyake on Monday, a Japanese inventor that developed a system of tactile blocks for helping people to cross the road. The world’s largest search engine commemorated the creation with a homepage doodle, marking the first day his blocks made their debut.

Miyake was inspired to help a friend who was gradually losing their vision. He created the “Tenji blocks” — taking its name from the Japanese term for the language’s braille script — to help provide information to users through feeling raised bumps around five millimeters high in their shoes, tapping a cane, or through a trained guide dog. The dotted style indicates danger ahead while the direction of the bars indicate a safe path of travel. Miyake’s creation first debuted in 1967 near the Okayama School for the Blind in Okayama City, Japan. The design gradually rose in popularity until 1975, when the Japanese National Railways mandated their use at platforms.

Tesla Model Y Price: Elon Musk Unveils the Long-Awaited $39,000 Electric SUV

After almost four years of anticipation, Tesla unveiled the Model Y Thursday in Los Angeles, and CEO Elon Musk revealed that the all-electric SUV will start at $39,000 with four variants: a Standard Range, Long Range, Dual-Motor All-Wheel Drive, and Performance version, which will have a top speed of 150 miles per hour and cost $60,000.

The Best Wireless Earbuds for Audio Quality

What truly wireless earbuds are actually worth your time?

Filed Under Amazon, Apple & Music

While we’ve been well on our way to a truly wireless existence (I’m looking at you, umbilical cord) in almost every facet of our life, the “truly wireless” headphone segment has been dominated by Apple’s AirPods, and for good reason. They’re the headphones to beat when it comes to ease of use, and seemingly every manufacturer is trying to best Apple with their own AirPod alternative.

You Can Save Up to 30 Percent on Your Power Bill With Arcadia Power

Connect to clean, low-cost energy and bring down your power bill for free.

Given the chance, most of us would jump at the opportunity to bring down our power bills. But there’s a prevailing assumption that doing so involves dealing with steep upfront costs before the savings actually come in. Arcadia Power presents a different solution, however, and it’s willing to give new users $20 off their first utility bill for trying out the platform.