Musk Responds to Concerns of Demand and Twitter

Tesla demand and reputation are on the rise, as well as the stock

Tesla

Tesla's fourth quarter and 2022 numbers beat expectations, and the company is stronger than ever, but convincing nervous investors is a tough sell. A significant stock sell-off saw Tesla lose 70 percent of its value last year, and critics predict doom. Even some hardcore Tesla fans harshly criticized Elon Musk, demanding the board step in. But these negative narrative headlines don't show up on Tesla's bottom line.

Musk took over Twitter in October of 2022, and not long after that, Tesla's stock started to spiral downward. It certainly didn't help that Musk was selling many of his Tesla shares to pay for Twitter, and the overall market was turning bearish. However, many linked Musk's takeover of Twitter and subsequent controversial tweets as having a detrimental impact on Tesla.

Twitter is Helping Tesla's Brand

An investor question during the quarterly call cited brand damage due to partisan tweets and asked how any brand image would be mitigated. Of course, Musk, who has changed his Twitter handle to Mr. Tweet, knows all about the condemnation of his actions on Twitter. It seemed he was waiting to unleash his response. "Well, let me check my Twitter account," said Musk, "Okay, so I've got 127 million followers. It continues to grow very rapidly. That suggests that I'm reasonably popular."

But it's not just the number of followers; Musk will surprise people daily when he randomly joins a conversation. "I'm the most interactive account, social media account, I think, maybe in the world, certainly on Twitter, and that's actually predated the Twitter acquisition. So I think Twitter is actually an incredibly powerful tool for driving demand for Tesla... So the net value of Twitter, apart from a few people who are complaining, is gigantic, obviously."

Tesla Demand Increasing

Musk encourages others, including his competition, to use Twitter to drive demand for their products because he has seen demand jump to new levels at Tesla. "The most common question we've been getting from investors is about demand. I want to put that concern to rest. Thus far in January, we've seen the strongest orders year-to-date than ever in our history. We currently are seeing orders at almost twice the rate of production."

2023 Price Fluctuations

That demand may have been sparked by Tesla's considerable price drops globally. In fact, the demand is so high the company has already raised the price of the Model Y in a few regions. According to Tesla's CEO, Zachary Kirkhorn, the company will continue to look for price adjustments, "As we look towards 2023, we are moving forward aggressively leveraging our strength and cost." Kirkhorn says Tesla is "holding steady on plans to rapidly increase volume, while improving overhead efficiency, which is the most effective method to retain strength in our operating margins.

While Kirkhorn admits the cost reduction will impact the operating margin in the short term, the company believes the long-term outlook remains strong, especially as the world transitions to a deflationary environment, where costs are likely to come down.

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Tesla Vehicles are the Cheapest to Maintain and Repair According to Consumer Reports Study

Consumer Reports

Tesla cars are the cheapest to maintain and repair according to a new study by Consumer Reports. Elon Musk commented on the survey on X emphasising that Tesla is “the lowest car to maintain”.

The study, which includes data from thousands of car owners in the US, was recently published and shows that Teslas averaged only $580 in maintenance and repair costs over the first five years of ownership. From years six through ten, the costs increased to $3,455, which brings the total to $4,035 for the first ten years of ownership — the lowest of any vehicle tested. It’s worth noting that the average length of car ownership in the U.S. is about 8 years. 

Buick and Toyota fall right below Tesla (both at $4,900) with Lincoln and Ford closing the top 5 with $5,040 and $5,400 respectively for maintenance and repair costs in a 10-year ownership.

German premium automakers BMW, Audi and Mercedes-Benz are among the 5 most expensive on the list with 10-year costs reaching $9,500, $9,890 and $10,525, respectively. The trio is only surpassed by the luxury German automaker Porsche with an average cost of $14,090 and Land Rover closes the list at $19,250. 

Car Maintenance

Vehicles with internal combustion engines (ICE) require additional maintenance, not only oil changes, but drive belts, transmission oil changes, coolant flushes, and more. Not only that, but ICE cars have more moving parts that decrease the reliability of the vehicle and can cause additional repairs such as transmission issues, clogged fuel filters or injectors, faulty spark plugs and the list goes on and on.

Since electric vehicles use regenerative braking to slow the vehicle down, brake pads also last much longer, sometimes lasting over 100k miles. This reduces wear on the brake pads, and rotors and even reduces brake dust on your wheels.

“EVs are cheaper to maintain, look after, and certainly to service,” says Matt Cleevely, from Cleevely Motors to Wired magazine adding that EVs “have half as many moving parts and require no regular oil changes”.

In Tesla’s case, the automaker suggests Model 3 owners replace the cabin air filter and HEPA filter every three years, check brake fluid every two years, and clean and lubricate the brake calipers every year or 12,500 miles, in areas where the roads are salted during the winter.

Gas Savings

These maintenance savings are only a small part of the reason why electric vehicles are cheaper to use for daily driving. Another large portion of savings comes from fuel costs. Tesla often promotes their vehicles’ gas savings on their website. For example, the Model Y has an estimated gas savings of $6,000 in the U.S. over the first five years of ownership alone. The savings may be even greater in other parts of the world where gas may be more expensive. After taking those savings into account, the world’s best-selling vehicle in 2023 starts at $29,490 after gas savings and the U.S. federal tax credit — and that’s before you include maintenance cost and time savings.

Cheapest cars to maintenance and repair through 10-years of ownership

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Tesla is Creating a Voice Assistant to Replace Voice Commands [Example of Voice]

It looks like Tesla may soon be replacing its archaic voice commands with something much more useful — a voice assistant.

Greentheonly, who often takes deep dives into Tesla software by decompiling the firmware and looking for changes, has now found the early integration of a voice assistant.

Voice Assistant Already Available in China

Tesla has already replaced its voice commands in China with a voice assistant that can not only control certain aspects of the vehicle using more natural language but can also answer common knowledge questions such as the current weather, stock quotes and more (video below).

Available Only on AMD?

Correction: Tesla’s voice assistant in China is only available on vehicles with AMD processors (MCU 3), and unfortunately not on older Intel-based (MCU 2) cars. If Tesla is utilizing the same core technologies in its upcoming voice assistant for other regions, we may see the same limitation.

Intel vehicles in China still use the voice command system we’re familiar with today.

Tesla Creating Own Assistant

According to Green's findings, it looks like Tesla may be rolling its own solution instead of integrating something like Amazon Alexa like Rivian has. Tesla created their own solution in China by using some of their own technology and several existing software solutions. However, some of them are only available in China so they don’t scale to support additional regions.

Grōk

The first thought that comes to mind is Tesla leaning on AI efforts by Grōk and xAI, which could help it support common knowledge questions and search the web for answers. However, that only gets Tesla partly there, as Alexa and Google Assistant already support a large ecosystem, one that may not be available if Tesla creates their own voice assistant. With Tesla’s solution, a driver may be limited to what devices they can control through the voice assistant, at least initially. Either way, just a more natural way to activate certain vehicle solutions will be an improvement over what’s available today. The ability to ask the assistant common questions will be the icing on top.

Wake Word

According to Green, the source code hinted at the voice assistant using a wake word, which would replace the need to press the scroll wheel on the steering wheel. Tesla has begun to use the left scroll wheel button for additional things lately such as wiper controls and a multi-function mode, so this may fit in with their plan.

It’s fun to speculate what the wake word would be or whether Tesla would add the ability to create your own. It could be something as simple as ‘Hey, Tesla’, ‘Grok’, or something more humorous as Tesla has a knack for. Unfortunately, there weren't any hints on what the actual wake word would be, but being able to set a destination, play a specific song or ask the assistant for the weather will be a much-needed improvement.

Supported Models

It's not clear which models Tesla would support a voice assistant, but with the release of software v12 with update 2024.14.3, Tesla is starting to leave more features out of older Intel-based vehicles. While a voice assistant may not necessarily be computationally heavy, it may depend on Tesla's implementation and whether voice commands are transcribed on device or carried over the internet for transcription.

Voice Model

In the software, there are references to Microsoft's text-to-speech technology and specifically to a voice named “Jenny Neutral.”

The “Jenny Neutral” voice seems like an acceptable voice, bringing a natural-sounding voice to Tesla's voice assistant, although it doesn't differ much from what you find on other assistants. You can view an example of Microsoft’s “Jenny Neutral” voice in the video below.

Tesla has been more mindful lately about adding information for unreleased features to its software to help prevent leaks, so by the time something like this is found by Green, it usually doesn't take long before it becomes available, although this could also make for an exciting Christmas present.

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