It seems like the dream of having a self-driving Tesla may still be a bit further off than we thought. According to Tesla’s Head of Autopilot and AI Software, Ashok Elluswamy, the company is currently “a couple of years” behind Google’s Waymo in terms of self-driving technology. This admission comes as a surprise to many, as Tesla has always been touted as the leader in autonomous driving.
Waymo, a subsidiary of Alphabet, has been making significant strides in the self-driving space, with its fleet of lidar-equipped Jaguar I-Paces setting the standard for autonomous vehicles. Tesla, on the other hand, has chosen to take a different approach, using a camera-only system known as Tesla Vision. This decision has put them at a disadvantage compared to companies like Waymo, who have invested in more expensive but arguably more accurate lidar technology.
Despite the setback, Ashok remains optimistic about Tesla’s future in autonomous driving. He believes that Tesla’s large fleet and data collection capabilities could help them catch up to Waymo in the long run. However, he acknowledges that there are technical challenges to overcome, particularly in terms of accuracy and efficiency.
One of the main arguments for Tesla’s camera-only approach is cost. Cameras are much cheaper than lidar units, costing between $1 and $10 per sensor compared to $75,000 for a lidar unit. Additionally, cameras are more power-efficient, drawing less power than lidar systems. While these factors make camera-based systems more affordable and energy-efficient, they may not offer the same level of accuracy as lidar.
Despite the challenges ahead, Ashok believes that Tesla’s vision-based approach is more valuable for the world, as it provides a low-cost solution to autonomous driving. While Tesla may be behind in the race for self-driving supremacy, they are still committed to building the future of autonomy.
It’s refreshing to see a Tesla executive acknowledge the company’s shortcomings and work towards addressing them. As the competition heats up in the autonomous driving space, it will be interesting to see how Tesla adapts and innovates to stay ahead of the curve.
Volkswagen has made a groundbreaking announcement that its electric vehicles (EVs) will achieve cost-parity with internal combustion engine (ICE) vehicles next year for the first time ever. This revelation comes at a crucial moment as the automotive industry shifts towards electric mobility and sustainability.
The key to this achievement lies in Volkswagen’s adoption of Lithium-iron Phosphate (LFP) batteries in its upcoming MEB Plus platform. While LFP batteries may not be as glamorous as other battery technologies, they offer a more affordable and practical solution for mass-producing electric vehicles. By utilizing LFP batteries and implementing a simplified cell-to-pack battery layout, Volkswagen aims to significantly reduce production costs and increase the profit margins of its EV lineup.
During a presentation at the Financial Times Future of the Car Congress in London, Volkswagen CEO Thomas Schafer emphasized the importance of reducing battery costs to achieve parity with ICE vehicles. The introduction of LFP batteries in the Volkswagen ID.2 model marks a major milestone for the company, as it will be the first EV to match the profit margins of a gas-powered car in Volkswagen’s lineup.
However, Volkswagen acknowledges that the cost of electricity plays a crucial role in determining the overall production costs of EV batteries. Schafer highlighted that even a slight increase in electricity costs could have a significant impact on the company’s expenses. To address this concern, Volkswagen plans to produce “Unified Cell” batteries through its subsidiary, PowerCo, at manufacturing plants in Germany, Canada, and Spain.
The significance of Volkswagen’s announcement cannot be overstated. Achieving cost-parity between ICE and EV vehicles has been a longstanding challenge for automakers, with batteries being a primary cost driver. By leveraging LFP batteries and streamlining production processes, Volkswagen is poised to revolutionize the EV market and make electric mobility more accessible to consumers.
As Volkswagen prepares to launch its robotaxi service and expand its EV lineup, the cost-parity milestone represents a major step forward in the company’s electrification strategy. With the automotive industry undergoing a rapid transformation towards electrification, Volkswagen’s innovative approach to battery technology sets a new standard for affordability and sustainability in the EV market. The automotive industry is facing a challenging time as new vehicle inventory continues to shrink while prices are on the rise. This trend is primarily due to tariffs that have impacted manufacturing and supply chains. According to data from Cox Automotive, there has been a significant drop in new vehicle inventory, with a 10.5% decrease year-over-year and a 7.4% decline since March.
The current supply of new vehicles on dealer lots in the U.S. stands at 2.49 million units, representing a 66-day supply. The decrease in inventory is attributed to automakers holding back on deliveries and production due to uncertainty surrounding tariff policies. This has resulted in fewer choices for consumers, reduced incentives, and higher prices for new cars.
As inventory levels continue to decline, buyers are being pushed towards higher-cost trims with higher margins. The Average Transaction Price of a new car has reached $48,699, marking a 1.1% increase year-over-year. Similarly, the Average Transaction Price of an electric vehicle has risen to $59,225, reflecting a 3.7% increase from the previous year.
The long-term impact of tariffs on the automotive industry remains uncertain. Many automakers are preemptively raising prices to offset the costs of tariffs, which could potentially deter buyers. However, if consumer demand remains strong, new car inventory may continue to decrease, reaching levels not seen since the chip shortage that followed the Covid pandemic.
In conclusion, the current trends in the automotive industry highlight the challenges faced by both manufacturers and consumers. As prices continue to rise and inventory levels decline, finding the right vehicle at an affordable price may become increasingly difficult. Only time will tell how the industry will adapt to these changes and whether consumers will be willing to pay the higher prices for new vehicles.
However, as automakers like VW aim to bring down costs by using cheaper battery technology like LFP, the trade-off may come in the form of reduced range. While this may not be a big deal for some drivers, it could be a deal-breaker for others who rely on their EVs for longer trips or have limited access to charging infrastructure.
So, the question remains: would you trade range for dollars? Would you be willing to sacrifice some range for a more affordable electric vehicle? Or is range non-negotiable for you, even if it means paying a higher price for your EV?
As the electric vehicle market continues to evolve and new battery technologies emerge, consumers will have to weigh the pros and cons of different options. While range anxiety may be less of a concern for some drivers, others may prioritize range above all else.
Ultimately, the decision will come down to individual preferences and priorities. For some, the cost savings of a cheaper EV may outweigh the potential inconvenience of reduced range. For others, having a longer range may be worth the extra cost.
Regardless of where you stand on the range vs. cost debate, one thing is clear: the electric vehicle market is rapidly changing, and consumers will have more options than ever before. Whether you prioritize range, cost, or some other factor, there’s likely an electric vehicle out there that fits your needs.
As automakers continue to innovate and expand their electric vehicle offerings, the range vs. cost trade-off may become less of an issue. With advancements in battery technology and charging infrastructure, EVs may soon offer both affordable prices and ample range, making it easier for consumers to make the switch to electric.
So, would you trade range for dollars? The answer may depend on a variety of factors, but one thing is certain: the future of electric vehicles is looking brighter than ever.