Tuesday, 26 May 2015

Germany: Low Emissions Vehicle Lane Pilot

German State Piloting “Umweltstreifen” Program — Lane For Low-Emissions Vehicles

CleanTechnica.com: Drivers of electric vehicles (EVs) and other types of low-emissions vehicles in the German state of Baden-Wuerttemberg will soon have access to “Umweltstreifen,” which are, to put a rough translation to it, “eco lanes” — in other words, lanes that are reserved for use by low-emissions vehicles (amongst other qualifiers).

For the time being, though, this access will come as part of a feasibility study, rather than a full-out immediate change. But hey, that’s the German way, right? Cautious and arguably over-organized? Still, it is certainly better than nothing — it’s nice to see support coming along, despite the many “good” reasons that German automakers might have for wanting to slow down the rate of EV adoption by the wider public there.

Californian residents, Norway residents, and those in some other places should recognize the approach, as similar programs are already in use, and have been for some time. The predecessor of EV lanes — carpool lanes — date back several decades, and have long proven their worth.

Green Car Reports provides some more information:

In the German test, however, the lanes would be open to electric cars, plug-in hybrids, and any vehicle that met the latest Euro 6 emissions regulations that went into effect last year — and carpools too, of course.

The Euro 6 rules had their greatest effect on the diesel vehicles that comprise roughly half of Europe’s new car sales, bringing them up to the standard in effect for US sales since 2008.

The study will attempt to ascertain the effect of the “eco lane” on air quality as well as looking at ways to limit access to qualifying vehicles. In general, hybrids, plug-in hybrids, and electric cars usually have at least a few exterior features — badges and labels, if nothing else — that distinguish them from gasoline vehicles. But it could prove almost impossible to determine just by looking whether a vehicle meets the Euro 6 rules. And model year is usually not reflected by a car’s registration number.

It’s probably worth noting here that one similar proposal for electric vehicles by the country’s transport ministry (in 2013) ended up not being approved. Considering that the new proposal is open to any vehicles that qualify as low-emissions, though, even “conventional” ones, perhaps this one will get broader support?

The pilot study is currently expected to last for 6 months.

Monday, 25 May 2015

Oslo to ban diesel cars after 2 days of high pollution

Oslo gets diesel ban on days with high air pollution



DIESEL PROHIBITION: Oslo City Council does not want that asthmatics should have to remain at home because of high air pollution.

vg.no (translation) - The goal is that we do not need to go out with recommendations that asthmatics should stay home because of high air pollution, says transport commissioner Kathy Melby (V) to Aftenposten .

Diesel ban is one of several immediate measures being introduced on days with high air pollution for Oslo. The high air pollution must persist for at least two days for it to be bans on driving diesel cars in all or part of Oslo.

Driving ban will have exceptions for certain groups of vehicles. This will include inter alia deliveries to Oslo, emergency vehicles, vehicles used in public service, patient transport, vehicles used for executive employment and exit and entry of foreign ferries.

Although the city council has agreed to ban diesel, so this must be approved by the NPRA, writes Aftenposten.

Last December it was revealed in a research report that mortality among those with heart and lung ailments rose after days of high pollution in Oslo.

"Overruns are particularly high along the main roads and in other congested areas. An important reason why the levels have not fallen in recent years is an increased proportion of diesel cars, "wrote The City of Oslo in 2013 report on local air quality.

Daimler Working with Qualcomm on Wireless Charging



Daimler announced Saturday that it will be working with Qualcomm to give electric cars the ability to charge without the need for cables.

Daimler announced Saturday that it will be working with Qualcomm to give electric cars the ability to charge without the need for cables.

The partnership between the German automaker and the American mobile technologies company will also focus on giving smartphones and tablets inside these vehicles to charge wirelessly, according to SlashGear. Another objective of the deal will be to improve cars' ability to connect with each other through high-speed 3G/4G connectivity, which allows drivers to go online while on the road.

Working with Daimler, parent company of Mercedes-Benz, will give Qualcomm the chance to take some time off from competing with Apple and Samsung in the smartphone chipset market and get involved in a different venture.

The team-up will also give Daimler a chance to get ahead of German rivals BMW and Audi in its quest to become the top high-tech automaker, Reuters reported.

Daimler and Qualcomm said they want their electric vehicles (EVs) and plug-in hybrid EVs to be able to charge without having to be plugged in.

"It's important that we remain on the cutting edge of technology and continue to deliver unparalleled experiences to our customers," Thomas Weber, board member for research and development at Daimler, said in a statement.

"With this in mind, we are eager to jointly explore possible fields of future cooperation with an internationally leading tech firm like Qualcomm," Weber added.

Norway EV sales continue past 50000, 20% share of new car sales again in April



New all-electric passenger cars registrations in Norway – April 2015


2015 VW e-Golf

Norway plug-in electric car sales again reached 20% last month with 1,975 passenger all-electric cars and 584 plug-in hybrids for a total of 2,559.

Data includes 282 used imported zero-emission passenger cars and 35 new vans.

In other words,almost 3,000 new/used plug-ins added to already over 50,000.

We don’t have confirmation yet, but probably more than half of all passenger BEVs were Volkswagen e-Golf and e-up! (expected over 1,100 – usually about 60-70% of total for those models).

Tesla Model S would be second then – 230 in April and 1,762 YTD (3.7% overall market share).

Then we see Nissan LEAF at 167 and 1,249 YTD (2.6% overall market share).

Renault ZOE, with 154 last month and 515 YTD, managed to exceed BMW i3, which had 102 and 438 respectively.

But let’s turn our attention back for a while to the Nissan LEAF, which seems to weaken almost every month, scoring in April its worst result since December 2012.

The Japanese flagship monopolized the market in the early days taking market share from Mitsubishi i-MiEV, but then since new models entered Norway (Tesla Model S, BMW i3, Reanult ZOE, Volkswagen e-up! & e-Golf, etc.) is losing ground. Now, only 8% of new passenger BEVs are Nissan LEAF and e-Golf is finding almost 3-times more customers.


Nissan LEAF registrations in Norway – April 2015

Sunday, 24 May 2015

EV drivers test drive a petrol car



TeslaClubSweden: Having heard so much good about petrol cars, we decided to test drive one. They are said to combine cheap price with long range and fast charging. A winning formula on paper – but how are they in real life?

We sat us in the loaner car at the car salesman’s office. Automakers do not sell the cars themselves, only through independent car repair shops as middlemen. It may sound like a bad omen to buy the car from a car repair shop that you want to visit as seldom as possible. But you apparently can’t buy the car directly from the manufacturer but must go through such intermediaries. The seller was very ”pushy” and tried to convince us to buy the car very forcibly, but the experience is perhaps better elsewhere.

So we sat in the car and pressed the START button. The car’s gasoline engine coughed to life and started to operate. One could hear the engine’s sound and the car’s whole body vibrated as if something was broken, but the seller assured us that everything was as it should. The car actually has an electric motor and a microscopically small battery, but they are only used to start the petrol engine – the electric motor does not drive the wheels. The petrol engine then uses a tank full of gasoline, a fossil liquid, to propel the car by exploding small drops of it. It is apparently the small explosions that you hear and feel when the engine is running.

The petrol engine consists of literally hundreds of moving parts that must have tolerance of hundredths of a millimeter to function. We begun to understand why it is car repair shops that sell the cars – they might hope for something to break in the car that they can mend?

We put in a gear and drove away with a jerk. The jerk came not from any extreme acceleration, but gasoline engines apparently cannot be driven as smoothly as electric motors. The acceleration did not occur at all, because we could not get the car to go faster than 40 km/h! By then the petrol engine literally howled and the whole car shook violently. Convinced that something must have broken we stopped the car. The seller then explained that with petrol engines you need to ”change gears” on a regular basis. Between the engine and the wheels are not a fixed ratio gear, but a variable one. The petrol engine can produce power only in a limited speed range, and must therefore be geared with different ratios in order to continue to accelerate. There are 5 different gears we can select with increasing speed as result. It is -as we learned quickly- very important that each time select a suitable gear otherwise the engine will either stop or get seriously damaged! You need a lot of training to learn to select the right gear at the right time – though there are also models with automatic transmissions that can do this themselves. In the manual transmission car, we needed to constantly guard the engine from damaging it. Very stressful.

We asked if the constant sound of the engine -that frankly disturbed us from being able to listen to the radio- could be turned off. But it couldn’t. Very distracting.

After getting the car up to speed through intricate changing of gears we approached a traffic light. Releasing the accelerator pedal resulted in no significant braking, we had to use the brake pedal very much to slow down the car. We were surprised to hear the brakes are completely mechanical! The only thing they generate is heat – braking gives no regeneration of gasoline back into the tank! Sounds like a huge waste, but it would soon get even worse.

When we came to a stop the engine continued to run and the car vibrate – even though the car was standing still! The engine continued to burn gasoline without moving the car forward. Can it really be true? Yes, the seller explained, it is so with gasoline cars: the engine is always running and burning gasoline – even when the car is stationary. Some models however switches off the engine at a red light, he explained. Well that certainly makes more sense.

After a while we came to a gas station where we could charge the car. The car claimed that it still had half a tank left, but we wanted to try the famous super-fast charging of petrol cars!

So we drove to the gas station and opened the fuel cap. The filling nozzle is very similar to a charging connector, but it is not electrons that come out of it but gasoline. Gasoline is a highly carcinogenic, smelly and flammable liquid derived from plants and animals extinct since millions of years ago. The gasoline is pumped to a tank in the car, which then drives around with about 50 liters of this hazardous liquid in it.

We put the nozzle to the car, but nothing happened. The seller then explained that we must pay to fuel! Much like those extremely expensive fast chargers some electric utility companies have set up. After we put the credit card in the reader we could start fueling. It was extremely fast! In just two minutes we filled the gas tank to the max! But there were two counters on the pump: one that showed the number of liters we have fueled and one that showed how much it would cost us. And that counter was spinning so fast that we could hardly keep up with its pace! Sure we filled the tank full in two minutes, but it did cost us an unbelievable €30! A full charge would thus cost us double that – a whopping €60! We cursed our luck that we apparently have chosen one of the most expensive gas stations, and began to ask the seller what other alternatives are there? How much does it cost to fill up at home, and how many free stations are there?

The seller looked very puzzled at us and explained that it is not possible to refuel gasoline cars at home, and there are no free gas stations. We tried to explain our questions, in case he had misunderstood, but he insisted that you can not. Apparently youhave to several times a month drive to the gas station to recharge your petrol car at extortionate prices – there are no alternatives! We thought it was very strange that no gasoline car manufacturers have launched their own free gas stations?

There are no gas stations either where you can fill up more slowly at a cheaper price. We started calculating price versus consumption and came to the shocking conclusion that a petrol car costs unimaginable €12 per 100km! Sure, electric cars could also theoretically come up to these amounts if they quick charged at one of the most expensive charging stations in the country – but for petrol cars there are no cheaper alternatives! While electric cars are comfortably charged at home every night for €2 per 100km petrol cars must make detours several times a month to fill up at these extortionate rates – without exception! Monthly cost for a petrol car can -just for the gasoline alone- easily exceed one hundred Euros! We begun to understand why they are so cheap to purchase – operating them is extremely expensive instead.

We also begun to understand why there must be so many petrol stations everywhere, if all petrol cars always have to drive to them to refuel. Imagine if you could charge your electric car only at the power companies’ most expensive fast chargers – and nowhere else!

With this in mind we ended up in a traffic jam and was horrified that the gasoline engine continued to burn these expensive gasoline drops even when the car was standing still or moving very little. With gasoline vehicles it is easy to run into cost anxiety – the feeling that the car literally burns up your money! No cheap home charging and no regeneration of gasoline back to the fuel tank when braking sounds like economic madness – especially given that all gasoline must be imported from abroad.

We returned the car to the dealer’s premises, pulled the handbrake and step out of the car. The petrol engine continued to run! Apparently one must manually switch off the combustion of the precious liquid. But we wanted to see the petrol engine, so the seller opened the bonnet. The entire front portion of the car was completely cluttered with hoses, fittings, fluid reservoirs, and amid all a huge shaking cast iron block which apparently constituted the motor’s frame. There was no space for luggage in the front of the car! Despite its enormous size, high noise and vibration, the engine barely delivered one hundred horsepower. The engine was also extremely hot, we burned ourselves when we touched it. Even though this was on a warm summer day so the engine did not need to generate heat to the passenger compartment.

We became also worried about what would happen if we crashed with a petrol car? The cast iron block that occupied most of the engine compartment was sitting in the middle of the collision zone! Where would it go if we collided – would we get it in our lap? The salesman assured us that the motor in such case somehow gets folded down under the car but we could not escape the impression that the engine block was very much in the way at the front – the safety beams were built around it, which surely impairs their functionality. Avoiding that one hundred kilo iron lump in the front of the car makes it so much easier to build safe cars. In addition, we have seen on the Internet hundreds of pictures and videos of burning gasoline cars. The petrol tank apparently often leaks after an accident so the flammable liquid pours out and becomes ignited!

From the engine, under the car runs an exhaust system – a kind of chimney for engine exhausts. When you burn the carcinogenic gasoline a lots of noxious gases are produced. The car cleans away the most dangerous gases, but what remains is released into the open air behind the car. It is still unhealthy to breathe in – and smells very bad! And petrol cars are allowed to emit these harmful gases in the middle of our cities? Do not confuse petrol cars’ exhaust pipes with fuel cell cars’ – while hydrogen powered fuel cell vehicles emit only water vapor gasoline cars spew out noxious gasses, and even fossil carbon dioxide that contribute to Earth’s future-catastrophic warming!

We thanked the seller for the display, shook our heads and gave back the ignition key (yes, it’s called that) to him. He realized that there would be no business for him so except for one lame attempt he did not try to sell us the car any more.

On the way home in our electric car we looked with completely different eyes at our poor fellow commuters, who still had to put up with their gasoline cars. But soon it will be their turn to trade up, too!

Volvo Introduces Electric Concept Bus in Sweden






Volvo Electric Concept Bus

InsideEVs: Volvo launched its first all-electric bus, which now can be spotted in Gothenburg, Sweden.

Awaiting its official premier in mid-June, we don’t as of yet know any details on the powetrain or battery technology.

Three such 10.7 meter long vehicles will operate on route 55 between Lindholmen and Chalmers/Johanneberg, altogether with seven plug-in hybrids Volvo 7900 Electric Hybrid.

One of the interesting features is extra-wide doors and new design style.

Series production of battery-electric only buses is scheduled for 2017.

“The vehicles are equipped with battery packs that can be quick-charged with renewable electricity at their end terminals. Energy consumption of the electric buses is about 80 per cent lower than that of corresponding diesel buses. The new route is the result of a cooperative venture known as ElectriCity, which develops, demonstrates and evaluates innovative solutions for future sustainable public transport.

Before it enters regular operations Volvo’s new electric bus will also be shown at the large UITP public-transport show in Milan on June 8-10. UITP brings together public transport purchasers from all over the world who come to see the latest developments in the industry.”

“Volvo’s designers aimed to give the bus a modern and welcoming atmosphere. The interior is bright and airy and there are electrical power sockets for passengers to recharge their mobile phones. The bus features onboard Wi-Fi. Although the bus is just 10.7 metres long (more than a metre shorter than a conventional bus) it can carry up to 86 passengers. The central driver’s seat contributes to high passenger capacity.”

Håkan Agnevall, President Volvo Buses said:
“Right now we are carrying out final testing to ensure everything works just as it should when regular traffic gets under way. This marks a major milestone in our development of new solutions for electrified buses. Quiet and entirely exhaust-free operation will contribute both to a better urban environment and reduced climate impact, while passengers get a more pleasant ride,”.

“For instance, all boarding and exiting is quick and convenient via an extra-wide door opening with a low entry in the middle of the bus. Here there is a large area with a low, flat floor, to make things easier for passengers with child buggies or wheelchairs.”


Volvo 7900 Plug-In Hybrid Bus

Global revenue from EVSE charging services to $2.9 billion by 2023

Navigant Research: The global plug-in electric vehicle (PEV) charging market consists of two segments: residential and commercial. Residential charging is closely tied to the state of PEV sales and continues to grow in tandem with the PEV market. Commercial charging is dependent on a viable business model or major policy push for its success. Both markets exhibit different trends at a national or state level, depending on factors such as population density, utility involvement, and policy push for PEV adoption.

The residential charging market is entering a phase where the chargers are simply a commodity, with a focus on bringing down the price. The commercial charging space continues to test various business models, especially for the public charging market, including free charging to draw in customers, fees for usage by the hour or kilowatt, and the use of advertising. In some countries, public charging is driven by supportive policies; in others, public networks are being built out by automakers or utilities. The commercial charging market is still in flux, representing a competitive environment for PEV charging service providers. According to Navigant Research, global revenue from electric vehicle supply equipment (EVSE) charging services will grow from $81.1 million in 2014 to $2.9 billion by 2023.

Saturday, 23 May 2015

Recharging without cables: the road ahead for electric cars

Euronews.com: "As far as electronics are concerned, we've developed 99 percent of its full potential and we have what is needed to produce an efficient wireless charging station"

Electric vehicles are undoubtedly a form of transport with a future, but many technical challenges have to be overcome before they replace petrol and diesel-fuelled cars.

Researchers in Zaragoza in northern Spain are working on resolving one of the biggest problems; how to efficiently recharge batteries.

The scientists involved in the EU-supported Unplugged project have developed an innovative wireless charging station for electric vehicles. Unlike other systems it can charge electric cars or vans in around 20 minutes.

Lourdes García, an industrial engineer with Endesa, said the position of the coils is key: “The system works with coils that are buried under the tarmac of the charging station. It’s use inductive technology. The coil is energized from the electric grid. When the vehicle is positioned correctly on the charging station, a connection is made between the coils and the car. The coils transfer energy to the car. It’s a very flexible, modular system. You can charge cars, vans or electric buses”.

Researchers say the method is easier, safer, more vandalism-proof and has less visual impact than charging with cables.

José Francisco Sanz Osorio, an industrial engineer with the Research Centre for Energy Resources and Consumption said they are now turning to industry to help complete the testing: “As far as electronics are concerned, we’ve developed 99 percent of its full potential and we have what is needed to produce an efficient wireless charging station.

“The remaining work concerns coils; that is where we are lagging behind. We need to find coil manufacturers interested in this product. But these coils are so innovative, that it is still hard to find those manufacturers,” he said.

The project also aims to convince the public of the benefits of electric vehicles.

But firstly, there were major technical challenges to overcome, as Axel Barkow, an electronics engineer and project coordinator explained: “First on the level of communication, that is, how to make operable the communication between the car and the infrastructure. “Then on the level of energy transmission. That is: How can a 3,7 KW car be charged at a 50 KW charging station. And finally we were addressing the problem of positioning, because positioning the car correctly – that means positioning the coils under the station in line with those on the car. That has a big impact on charging efficiency.”

So how can drivers get the full potential of this technology?

The answer lies in developing a system that assists drivers to position their cars exactly over the charging coils, so no energy is wasted. Barkow’s colleague Jörg Küfen said their solution involves magnetic fields, optics systems and algorithms: “At the end of the project we’re now at a point where we can say, that with a camera and a radio frequency identification (RFID) support system we can enable a driver to approach the inductive charging system in the correct way.”

More research is needed to increase the charging station’s potential and to optimise its operability, according to José Francisco Sanz Osorio: “We’re working at a given frequency, but in other countries they can be working with a different frequency. So we need to harmonize those frequencies. We also need to agree on the size of the coils, on the distances of electric emissions. All this is needed for the system to be fully interoperable”.

“I think as far as cars are concerned we are very close to a serial production, said Barkow. “That is, I think, we will see cars that are equipped with this technology within the next one or two years”.

The next big issue, researchers say, is how to develop a dynamic charging system, that will allow vehicles to be charged on the move on motorways and streets.

Friday, 22 May 2015

Hyundai Sonata PHEV


Sonata plug-in-hybrid electric vehicle


KoreaTimes.co.kr: Hyundai Motor will begin selling the Sonata plug-in-hybrid electric vehicle (PHEV) by as early as July in order to secure an upper hand in Korea's rapidly-expanding eco-friendly vehicle market.

GM Korea and other automakers are expected to introduce PHEVs in 2016 when the government will begin extending subsidies to buyers.

The country's largest automaker said Thursday that it will make the Sonata PHEV available for Korean consumers in the third quarter, stressing that it will make every effort to lead in the country's growing environment-friendly automobile market.

"We first unveiled the vehicle during the Seoul Motor Show 2015 in April, attracting a great deal of attention from auto enthusiasts," a Hyundai Motor spokesman said. "To stay ahead of our competitors in this growing segment, we decided to put the Sonata PHEV on the market in the third quarter of this year."

PHEV shares characteristics of both a conventional hybrid electric vehicle, which has an electric motor and an internal combustion engine, and of all-electric vehicles, which have a plug to connect to the electrical grid. They are an upgraded model of hybrid cars currently available in the market as they can run longer distance by electricity.

The Sonata PHEV, powered by a 2.0-liter Nu GDI engine, 50-kilowatt electric motor and six-speed transmission, can run more than 40 kilometers only using electricity.

Hyundai's planned launch of the PHEV marks the ongoing market shift toward more fuel-efficient and eco-friendly vehicles. GM Korea, Audi and Volkswagen said they will introduce their latest plug-in hybrid models in Korea next year.

Auto industry watchers say that the level of government subsidies and the availability of charging facilities will determine whether PHEVs will take a root here or not.

The Ministry of Environment is considering extending up to 6 million won in subsidies and tax benefits to those purchasing PHEVs in 2016. Currently, motorists buying hybrid cars receive a 1 million won subsidy and save about 3.1 million won in registration taxes.

"The government will likely offer about 2 million won more in subsidies and tax benefits to the buyers of the PHEVs in 2016, compared to those driving conventional hybrid vehicles," the spokesman said. "This means we need to find ways of slashing the price tag by 2 million won for those buying the Sonata PHEV this year. We haven't yet decided how to do it."

Tesla: Mobile Stores

Fool.com: Electric-car maker Tesla Motors (NASDAQ: TSLA ) is already known for its unique approach to selling its cars, bypassing dealerships and instead selling its vehicles directly to consumers in company-owned retail locations in upscale shopping areas. But it wants to push the boundaries of what consumers are accustomed to in the auto retail experience even further. Showing off the flexibility of Tesla's direct-to-consumer model, the electric-car maker is meeting customers at popular summer locations with a touring, full-fledged store experience -- a feat auto dealers may have difficulty matching.


Inside Tesla's brand-new touring mobile store, currently in Santa Barbara, California. Image source: Tesla Motors.

Tesla's mobile store
When transported, Tesla's new mobile store fits on a single flatbed truck and is about the size of four shipping containers sitting side by side. Once expanded and transformed, the store is about 20 feet deep and 34.5 feet wide.

"Designed in-house, the shipping container arrives and unfolds to double its size in just a few hours," Tesla said in a media release. "The mobility and convenience of the design allows Tesla to bring our unique retail approach to customers in new locations where we do not yet have a brick-and-mortar location."

The store will highlight Model S components, including the Model S's electric powertrain and battery architecture. People visiting the store will be able to "learn about electric driving with enticing visuals and interactive displays," as well as to test-drive the Model S.

Just in time for the busy Memorial Day weekend shopping, Tesla's mobile container store landed in Santa Barbara, California, today, and will have its public grand opening tomorrow. After finishing up the month in Santa Barbara, Tesla will then transport its mobile store to its next stop in the Hamptons.

As Twitter user @TonyJGiannini pointed out, Tesla's mobile store is already touring in Europe. Mostly slipping under the radar in the media, the pop-up store made an appearance in England at the Bluewater shopping center in November and December.


Tesla mobile store in Santa Barbara. Image source: Tesla Motors.

There are three of these mobile stores in Europe and one in the U.S. The three in Europe are currently in Denmark, France, and Switzerland. Going forward, Tesla could very well expand its investment in these stores, Tesla spokeswoman Alexis Georgeson told The Motley Fool.

Tesla's secret weapon?
During Tesla's fourth-quarter earnings call, CEO Elon Musk said the company had "a secret weapon on the demand side that we'll probably start to deploy later this year for demand generation," adding that it could be a "good weapon against the dealers."

Is this unique touring retail experience the company's "secret weapon"? It's quite possible.

It would be difficult for traditional automakers to set up similar direct-to-consumer pop-up shops to sell their vehicles. Doing so would likely require the vehicle manufacturer to refer visitors to nearby dealers for test drives and sales, in order not to interfere with the local dealer network. Dealers, too, could have trouble matching Tesla's mobile store. They probably wouldn't want to set up shop far from their dealership, since the majority of dealer profits come from servicing cars -- not auto sales.

There's good reason to believe Tesla's investment in mobile stores is likely to pay off handsomely

First, Tesla's demand is arguably limited by the company's small retail footprint. So, every additional store is important.
Tesla stores and galleries in the U.S. Image source: Tesla Motors.


Not spending a dime on advertising, Tesla relies heavily on its limited yet fast-growing retail locations for sales. Touring its mobile stores in high-foot-traffic locations could help Tesla expand its retail footprint to key areas without having to take the time to set up a physical brick-and-mortar location.

Second, Tesla's spending on retail locations to date has proven to be a lucrative investment. Musk said last year that sales per square foot for its retail stores are double Apple's. Apple was previously thought to have the highest sales per square foot in the world.

Last, customer education plays an important role in Tesla's selling process. In Tesla stores, customers ask employees many questions about driving electrically. By bringing mobile locations to popular destinations where Tesla doesn't have a retail footprint, the company can educate more people who are unfamiliar with the company's fully electric vehicles.

Tesla's growing footprint of retail locations has been a key driver in sales growth. Model S deliveries were up 56% year over year in the company's most recent quarter.

Is Tesla's production catching up with demand?
With Tesla constantly ramping up the pace of production for the Model S, the company's further investment in these mobile stores could be a sign that its production is finally catching up to demand. While Tesla did say orders continued to grow in Q1 and that it expects global order growth for Model S to continue to rise throughout the year, perhaps the level and rate of Tesla's production ramp-up is getting closer to the level and rate of order growth.

If Tesla's production ramp-up for Model S is catching up with orders, will an investment in mobile stores help Tesla achieve its goal to increase Model S sales by about 50% for the entire year?