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Tesla Presses Its Case On Fuel Standards 291

An anonymous reader writes: Tesla is preparing their case to leave federal mileage and emissions regulations intact, or make them even more strict. In addition, the company is fighting other car makers from loosening more stringent regulations in California. The WSJ reports: "Tougher regulations could benefit Tesla, while challenging other auto makers that make bigger profits on higher-margin trucks and sport-utility vehicles. Tesla's vice president of development, Dairmuid O'Connell, plans to argue to auto executives and other industry experts attending a conference on the northern tip of Michigan that car companies can meet regulations as currently written. 'We are about to hear a lot of rhetoric that Americans don't want to buy electric vehicles,' Mr. O'Connell said in an interview ahead of a Tuesday presentation in Traverse City, Mich. 'From an empirical standpoint, the [regulations] are very weak, eminently achievable and the only thing missing is the will to put compelling products on the road.'"
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Tesla Presses Its Case On Fuel Standards

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  • Not surprising (Score:5, Insightful)

    by Registered Coward v2 ( 447531 ) on Monday August 03, 2015 @05:08AM (#50238845)
    Every company likes regulations that limits competition or hurts competitors; while fighting any that impacts its profitability.
    • Re:Not surprising (Score:5, Insightful)

      by mc6809e ( 214243 ) on Monday August 03, 2015 @07:36AM (#50239223)

      And politicians enjoy the power to write regulation enabling law so as to extort campaign contributions from companies.

    • by ksheff ( 2406 )
      Not to mention that Tesla sells "zero emissions" credits that it gets from the state of California to other auto manufacturers. The sale of those credits gets them another $30-40K per car that they sell.
      • by jpapon ( 1877296 )
        Do you have a source for this? Because I just don't believe it. 30-40k credits? Which manufacturer could make money buying credits at that price? Ferrari?
        • Re: (Score:3, Informative)

          by JackieBrown ( 987087 )

          I googled the sentence the poster above you wrote

          http://www.marketplace.org/top... [marketplace.org]

          http://money.cnn.com/2013/05/2... [cnn.com]
          "In the first quarter, Tesla sold nearly $68 million of the zero-emission credits to other automakers. That represented 12% of its overall revenue. "

          So really, Telsa is not helping the climate - they are just outsourcing (selling) their percentage of climate damage to the competition. If they really cared, they would not sell or use these credits and actually help save the environment.

          • by Copid ( 137416 )
            And if Microsoft actually "cared" about their customers, they'd give all of their profits away in free pizza and concert tickets. Businesses don't "care" about things. They do thte things that they have incentives to do. The right to sell pollution credits gives businesses an incentive to decrease pollution. That's it.
      • by sjames ( 1099 )

        That is exactly what was intended. The other auto makers are free to produce zero emission vehicles and sell credits too.

    • by sjames ( 1099 )

      Sure. Their motive may be profit, but in this case, they are probably right. Fuel hasn't suddenly become more plentiful and pollution hasn't just vanished from the air, so why should the standards be relaxed?

      • Sure. Their motive may be profit, but in this case, they are probably right. Fuel hasn't suddenly become more plentiful and pollution hasn't just vanished from the air, so why should the standards be relaxed?

        I am not arguing the correctness of their position just pointing out the impact of regulatory capture. I would guess, if CA ended amazons credit, they would argue as forcefully for them as the argued for keeping existing fuel standards since it's to their benefit.

    • by hey! ( 33014 )

      Indeed. But it's also true that change per se puts more stress on less innovative or agile companies, especially companies that have massive investments sunk into older technologies. No matter what rules you set it'll benefit some companies over others; rules that are very favorable to GMC would be unfavorable to Tesla and vice versa. They'll both argue that rules that benefit them the most are best for the country.

      I'll say this for Tesla's position, though: the notion that it's physically impossible to b

      • ]

        I'll say this for Tesla's position, though: the notion that it's physically impossible to build fuel efficient cars that people will want to buy is balderdash.

        The problem is not want to buy but can afford to buy. Tesla is at the high end of what I would consider the car pricing range if you leave out the super premium and exotics. As a result, many people who might preferentially buy one simply can't afford one.

  • Smart (Score:5, Insightful)

    by Gordo_1 ( 256312 ) on Monday August 03, 2015 @05:22AM (#50238869)

    Hey I like Tesla as much as the next guy, but wake me up when a corporation lobbies government in a way that goes against their own self-interest.

    The theory here is that if more stringent fuel mileage standards are maintained, it will force traditional automakers to either make more tiny, anemic 4 cylinder gas engines (early 1980s anyone?) or push further into hybrid and electric car territory in order to deliver meaningful power without as much (or any) gasoline. In either situation, Tesla stands to gain as either they compete with comparatively fast, powerful vehicles (Model S, X, 3) or they are competing apples to apples in electrics/plug-in hybrids for which they'll have significant control over lithium ion battery production with the Gigafactory, and a 5-10 year head start at building ground up purpose-built all-electrics.

    • Re:Smart (Score:5, Insightful)

      by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Monday August 03, 2015 @05:24AM (#50238881) Homepage Journal

      Hey I like Tesla as much as the next guy, but wake me up when a corporation lobbies government in a way that goes against their own self-interest.

      Wake me up when they prove that they're actually performing battery swaps, which is required at this phase to get all the credits they're getting. There's no evidence that they can do it, let alone that they are doing it. (If anyone feels differently, let's see some photographic evidence of a swap actually taking place; I am not interested in seeing the pictures of the car sitting in the swap station with nothing happening.)

      • Re:Smart (Score:5, Interesting)

        by Gordo_1 ( 256312 ) on Monday August 03, 2015 @05:48AM (#50238935)

        They *are* doing them, but there are several manual steps currently. Go to Teslamotorsclub.com if you don't believe it.

        For what it's worth, battery swaps are a dead end. Few people need them with Supercharging becoming more ubiquitous by the day . Tesla won't be doing widespread swaps for privately owned cars any time soon, if ever. Maybe for commercial vehicles 5-10 years down the road...

        • Re:Smart (Score:4, Informative)

          by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Monday August 03, 2015 @06:07AM (#50238983) Homepage Journal

          They *are* doing them, but there are several manual steps currently. Go to Teslamotorsclub.com if you don't believe it.

          I've been there, and what I saw was a bunch of people who don't own Teslas slapping each other on the back while looking at photos which don't provide any proof that swaps are occurring.

          For what it's worth, battery swaps are a dead end.

          Sure, I agree. But credit systems are bullshit, too, and Tesla is gaming the credit system on top of that.

          • Re:Smart (Score:5, Informative)

            by Cyberax ( 705495 ) on Monday August 03, 2015 @07:55AM (#50239295)
            I have a Tesla Model S. And I've participated in the battery-swap beta.

            It works, almost as on the video - except you have to carefully position your car and attendant manually blocks your car's wheels from rolling.

            It doesn't make a lot of sense, though. The price ($85) is not worth it, it's just easier to wait 30 minutes for a supercharge.
            • I have a Tesla Model S. And I've participated in the battery-swap beta.

              Did you see the swap occur, or was it all smoke and blue curtains?

              • Would you accept as evidence that the user, within 5 minutes time, was driving off with a fully charged battery?

            • Is there a possible benefit to getting a battery with fewer charge cycles in a swap ? I sort of saw this concept as a way to get a refurbished battery when yours is reaching end of life, or has a few dead cells.

              • Is there a possible benefit to getting a battery with fewer charge cycles in a swap ? I sort of saw this concept as a way to get a refurbished battery when yours is reaching end of life, or has a few dead cells.

                That's a completely different issue. Even without quick-recharge swaps, it's certainly possible to replace an old battery. But you're going to have to pay for that new battery (less a rebate for the value of the old one, I'm sure).

        • Few people need them with Supercharging becoming more ubiquitous by the day.

          With just shy of 500 stations across the entire US, and many major cities lacking a Supercharger station entirely or having one at best... the word "ubiquitous" does not mean what you think it does.

          McDonald's is ubiquitous - Supercharger stations are rare and unusual.

          • by short ( 66530 )
            You need Superchargers only on highways, otherwise you charge at home or at work. You do not need them particularly in cities.
            • Re: (Score:2, Insightful)

              by itsdapead ( 734413 )

              You need Superchargers only on highways, otherwise you charge at home or at work. You do not need them particularly in cities.

              Unless, of course, you are visiting a city and need a recharge to get back home.

      • Re: (Score:3, Insightful)

        by Gordo_1 ( 256312 )

        Furthermore, why all the hate over the credits? Tesla collects government incentives, Oil and gas companies collect government incentives, other automobile manufacturers collect government incentives. Yet plenty of folks constantly point out how the first successful auto manufacturing upstart in 80 years in America, apparently reaps some mythical unfair advantage over everyone else.

        • Re:Smart (Score:4, Interesting)

          by msauve ( 701917 ) on Monday August 03, 2015 @08:07AM (#50239329)
          "Furthermore, why all the hate over the credits? Tesla collects government incentives, Oil and gas companies collect government incentives, other automobile manufacturers collect government incentives."

          So, your argument is that multiple wrongs make it right? Incentives are driven by special interests with inequitable influence. Let the people decide in a free market.
          • by Gordo_1 ( 256312 )

            Not at all. My argument is that no one bothers framing the problem properly. All they do is complain about Tesla and ignore everything else.

          • It's funny that emission credits are seen as a liberal construct, when they were originally developed as a market based solution by conservatives. In 1990, George H. W. Bush established a "cap and trade" system to combat acid rain. This was a market alternative to a "command and control" style solution. Yet today, you're a bleeding liberal to suggest such a thing.

            The crux of the problem is that free markets don't address external costs. A simple example is over-fishing. In a free market, the oceans ar

        • by radl33t ( 900691 )
          Control of the purse strings is the vital element to argumentation in US politics. Subsidies or credits for things I like are agreeable, permissible, or definitely necessary to avoid economic destruction. Meanwhile subsidies for things I (or my party bosses) do not like are socialist or fascist government intrusion and will result in the reckless and imminent destruction of everything the US was or every will be.
      • Re:Smart (Score:5, Interesting)

        by Zobeid ( 314469 ) on Monday August 03, 2015 @09:02AM (#50239593)

        CARB was convinced that Tesla demonstrated the ability to swap batteries, and CARB sets the rules for ZEV credits. Tesla have done exactly what they needed to do in order to meet CARB's bizarre diktats.

        Now, can anybody explain to me why battery swapping is worth additional credits in the first place? CARB's mandate is supposed to be cleaner air. Swapping batteries doesn't make the air cleaner. They give three times the ZEV credits for hydrogen fuel cell vehicles as they do for battery electric vehicles -- even though both produce the same amount of pollutant emissions: none. Where's the logic?

        Oh yeah. . . The logic is that Toyota -- by some measures the largest car company in the world (effectively tied with VW, last I heard) -- unloaded a truckload of cash to lobby CARB board members.

      • What's the big deal with a battery swap? I would think that waiting 20 min to get an 80% charge for free would be much more preferable to paying $80 and getting a battery that might have seen abuse and wear. Charging is the future. We just need to bring it down to 10 minutes.

    • Re:Smart (Score:5, Insightful)

      by jandersen ( 462034 ) on Monday August 03, 2015 @06:25AM (#50239029)

      ... theory here is that if more stringent fuel mileage standards are maintained, it will force traditional automakers...

      I'm no fan of cars in general, although I would probably go for an electric vehicle next time I need to change. It looks to me like they (Tesla) are pushing for a standard that only or predominantly looks at the emissions from the vehicle, whereas the obviously right thing would be to count in all the emissions required to produce and maintain vehicles.

      • Re:Smart (Score:4, Interesting)

        by Anonymous Coward on Monday August 03, 2015 @09:45AM (#50239805)

        Nobody counts the emissions to produce any other vehicles, so why would we hold electric cars to a different standard? The manufacturing processes are not particularly worse for one than for the other.

        In fact, I would bet that the reduced metal machining from not having a solid-block engine under the hood probably saves overall manufacturing emissions, once you factor it all the way back to the metal foundry, refinery, and strip mine. Only the strip mine would be comparable for rare earths that go into batteries. The refinery is much smaller due to smaller volumes and the foundry isn't really necessary at all.

        Other than that, you still have to have a metal frame, metal or plastic body panels, a finished interior, glass windows, and rubber for the tires and various other parts. This is identical for any car manufacturing process.

        The reason they're pushing to measure emissions is because that's the only meaningful difference between electric and ICE cars.

        • In fact, I would bet that the reduced metal machining from not having a solid-block engine under the hood probably saves overall manufacturing emissions, once you factor it all the way back to the metal foundry, refinery, and strip mine. Only the strip mine would be comparable for rare earths that go into batteries. The refinery is much smaller due to smaller volumes and the foundry isn't really necessary at all.

          There's an awful lot of wiring in them there electric motors which still need mining, refining and drawing out.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      they'll have significant control over lithium ion battery production with the Gigafactory, and a 5-10 year head start at building ground up purpose-built all-electrics.

      Building a new factory doesn't give you control over production. Other manufacturers of lithium ion batteries are available. It might give them a cost benefit.

      As for a 5-10 year head start, what planet are you on? They have about a 12-month head start, if that. Just because other companies aren't productized yet doesn't mean they're 5 yea

    • by AmiMoJo ( 196126 )

      All true, but anything that forces manufacturers to clean up and stop polluting the air I am have to breathe is a good thing.

    • by swb ( 14022 ) on Monday August 03, 2015 @07:50AM (#50239269)

      As much as I dislike the NY Times trend towards posting videos, it was interesting to see their review of the new Volvo XC90 with a 4 cylinder engine that's supercharged AND turbocharged. IIRC the review says its rated at nearly 300 HP.

      It's a large and fairly heavy car, so I don't think combined mileage was more than 25 MPG but it's definitely an improvement over the 4.4L V8 (my S80 with the same engine gets about 17 combined).

      The only thing I'd worry about is if they're extracting Fast and Furious style horsepower from 4 cylinder engines is that they'll get Fast and Furious levels of engine life.

      Frankly, I don't think Tesla needs to play the bootlegger-and-baptist game with fuel economy regulations to be competitive with ICE carmakers, they just need to be price and performance competitive within their model segments. At the oligarch country club where I do some work, I've seen a lot more Teslas and a lot fewer new S550s and my guess is that most of the drivers don't give a shit about the fuel cost or environmental impact of what they drive. They want performance and look-at-me status, and if it gives them an environmental cachet with their daughters' bohemian ivy league friends, so much the better,

      The bigger challenge will be providing a car the plebes find competitive at the $30k mark. For tofu-eating yoga types, this won't be hard. They would drive a Prius or a Fit anyway. It's the Honda Pilot or Santa Fe buyers they need to appeal to and provide a competitive alternative.

      • The only thing I'd worry about is if they're extracting Fast and Furious style horsepower from 4 cylinder engines is that they'll get Fast and Furious levels of engine life.

        Japanese companies have been doing this for ages and there is no problem with reliability. While there is some challenge in making a high strung 4 banger reliable, it's a problem that was solved a long time ago. A Subaru WRX generates plenty of HP and still manages to be quite reliable. You get F&F reliability when people who don't actually know what they are doing tune their cars beyond what they were designed for. That's not an issue when you are the company designing the car in the first place.

        The bigger challenge will be providing a car the plebes find competitive at the $30k mark.

        Ye

    • Hey I like Tesla as much as the next guy, but wake me up when a corporation lobbies government in a way that goes against their own self-interest.

      So you don't care when a company lobbies against YOUR self interest like the traditional auto makers have been doing? Personally I care about that very much. Improved fuel economy standards are in MY interest so I'm kind of behind Tesla on this one.

      The theory here is that if more stringent fuel mileage standards are maintained, it will force traditional automakers to either make more tiny, anemic 4 cylinder gas engines (early 1980s anyone?) or push further into hybrid and electric car territory in order to deliver meaningful power without as much (or any) gasoline.

      More or less yes. Though "anemic" is a bit subjective. 20 years ago a car with 300 HP was rather unusual. Now it's more or less routine despite very few people actually needing more than about 150 or so HP. So despite today's engines actually being much imp

    • by Ichijo ( 607641 )

      1. Anticipate the need for higher fuel efficiency standards
      2. Build your company around them
      3. If they have not yet materialized, lobby for them
      4. Profit!

  • by dltaylor ( 7510 ) on Monday August 03, 2015 @05:31AM (#50238893)

    I can only have one car, and an electric just cannot now, nor is likely to be able to, in my lifetime, do the kinds of things for which I use one. It doesn't help that none of the current, or probable, models of car (not SUV) allow a linebacker-sized driver (and, yes, I've tried the on the Telsa; it's pathetic).

    I have ridden a couple of electric motorcycles. H-Ds demo reminds me of my 2004 Ducati Monster, and there's an electric superbike (Energica Ego) coming, maybe, from Italy. Modern superbikes have limited range, anyway, so an electric is not a downside. One of those I could do.

    • by Gordo_1 ( 256312 )

      > an electric just cannot now, nor is likely to be able to, in my lifetime, do the kinds of things for which I use one.

      Hmmm... I don't think Tesla's are much smaller than say S class Mercedes, but maybe even that's too small for you. In any case, I'm sure they could serve you, but I imagine that will come 10+ years down the road as electrics slowly replace all the smaller markets.

      Unless you're in your 70s, I sense you'll live to eat those words by the way.

      • If he won't fit in tesla, there are very few cars (not SUVs) he actually will fit easily into. I'm only 6' - 200# and most sedans are fairly cramped. SUVs, otoh, are generally roomy.

        Funny that a car without an unlimited range is a non-started for him, but a bike with very limited range is okay.

        Unless he's a regular cross-country driver, I suspect you're right - in 10 years there will be an electric car which meets enough of his (actual) needs to be his sole vehicle. On the rare case you need to go futher, y

        • There are just some people who aren't very forward thinking. The I only have a 84 mile range on a Leaf before needing to recharge complaint is just whining because it is the current starting point. These people also are the ones who will buy a big giant SUV because some day them might want to tow or haul something but in all likelihood will never do either. For me that would be cutting it very close in ideal cases for my daily commute, but for my wife that would likely be one charge a week. I have told my
        • by ncc74656 ( 45571 ) *

          If he won't fit in tesla, there are very few cars (not SUVs) he actually will fit easily into. I'm only 6' - 200# and most sedans are fairly cramped. SUVs, otoh, are generally roomy.

          What kind of weird bodily proportions do you have that you can't fit into most cars? I could understand if you were 7' tall or something like that, but I'm 6'0" and a bit further past 200 lbs. than I'd like. :-P My daily driver up until about a year ago was an Oldsmobile Alero, which was their smallest model. I had no trouble

    • Out of curiosity, why do modern superbikes have limited range?
    • Specific complaint? (Score:3, Interesting)

      by sjbe ( 173966 )

      I can only have one car, and an electric just cannot now, nor is likely to be able to, in my lifetime, do the kinds of things for which I use one.

      And that would be what exactly? What do you do with a car that is so different from the rest of us that it can never work for you?

      It doesn't help that none of the current, or probable, models of car (not SUV) allow a linebacker-sized driver (and, yes, I've tried the on the Telsa; it's pathetic).

      If you think the Tesla is "pathetic" then you are talking out your ass. It's among the nicest luxury vehicles available this side of a Rolls Royce. Maybe it's not your particular cup of tea but anyone who thinks it is "pathetic" has either never actually sat in one or has an ax to grind. You don't even have to like Tesla to see that it is a very nice car.

      As for size, if you a

      • by dltaylor ( 7510 )

        I mostly ride the motorcycles when traveling around town and commuting, so the car is used for road trips and tightly scheduled long days when it's too hot for getting in and out of the armor multiple times or lots of people/stuff to haul. By "road trip", I mean things like Sturgis, SD, to Mt Rushmore on to the Devil's Tower and ending up at Buffalo, WY. Cannot do that in an electric, nor can I pause for an hour while running 400 miles of errands in the LA basin.

        It's not the waistline, it's the seat-to-cr

        • By "road trip", I mean things like Sturgis, SD, to Mt Rushmore on to the Devil's Tower and ending up at Buffalo, WY.

          The big thing will be getting recharge times down. That's going to take another 10-15 years minimum I think. (The superchargers are nice but not quite there yet) Until then long distances with EV will be via hybrids. I think it won't be long before we start seeing long distance haulers and trucks being hybrids. Lots of torque from the electric motors and it will help the automakers meet CAFE standards. Wouldn't be surprised to see some diesel electric hybrids at some point.

          Cannot do that in an electric, nor can I pause for an hour while running 400 miles of errands in the LA basin.

          Cannot do that in an electri

  • Suppose Tesla was concerned about man made climate change. The company might want to decrease animal protein consumption because methane from farm animals is far more important than automobile emissions: http://timeforchange.org/are-c... [timeforchange.org] If the government can force us to drive different cars, they can force us to eat different foods. Come on Tesla: lobby to force all bacon and hamburger be made with 55% tofu. See how popular you are. Disclosure: I drive a P85D and I love it. It is an amazing car and works

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