Shell's Bold Move Towards Electric Vehicle Infrastructure: Selling Gas Stations, Building Charging Stations

Shell Energy Transition

Shell has unveiled its comprehensive energy transition strategy, marking a pivotal shift in its operations towards cleaner energy solutions. Shell is committed to leading the decarbonization of transport, leveraging its global presence and innovative capabilities to meet the evolving demands of customers and the environment.

The report states: “We believe growth in oil demand is set to slow in the second half of this decade and could start falling in the 2030s because of increasing vehicle efficiency and growth in electric vehicles.”

Expanding EV Charging Networks: A Future-Driven Approach

The automotive sector is at a crossroads, with around 1.3 billion cars globally consuming a quarter of the world's oil production daily. The electric vehicle market is responding, showing rapid growth from less than 3% of new car sales in 2018 to 18% in 2023, with the number of EVs on the road expected to rise from 40 million today (led in large part by Tesla) to 275 million by 2030. China leads this surge, offering affordable EV options, followed by Europe and the USA. The expansion of charging infrastructure emerges as a key factor in supporting this shift towards electric mobility.

Expanding its electric vehicle charging infrastructure is at the heart of Shell's strategy. Recognizing the rapid growth of EVs as a crucial element in reducing emissions, Shell plans to increase its public charging points. With approximately 54,000 public charge points at the end of 2023, Shell is on track to boost this number to around 70,000 by 2025 and aims for an ambitious target of 200,000 by 2030. This expansion aligns with the global surge in EV adoption and caters to the increasing demand for accessible and convenient charging options.

Strategic Divestments and Market Adaptation

Shell's strategy includes divesting approximately 500 Shell-owned sites (including joint ventures) annually in 2024 and 2025. This decision reflects a strategic pivot towards markets with higher demand for low-carbon solutions, such as China, Europe, and the USA. By aligning its portfolio with the changing needs of its customers and the broader energy landscape, Shell aims to maintain its leadership in the energy sector while navigating the transition to a low-carbon economy efficiently.

Shell's largest EV charging station in the world, located in Shenzhen, China, exemplifies the company's efforts in this area. Featuring 258 fast-charging points and partially powered by rooftop solar panels, this facility highlights Shell's commitment to integrating renewable energy sources into its operations, providing a model for future developments.

Shell's executives, including Chair Sir Andrew Mackenzie and CEO Wael Sawan, strongly believe in the company's strategic direction. Emphasizing the importance of innovation and global reach, Shell aims to leverage its capabilities to deliver low-carbon energy solutions that meet today's needs and pave the way for a cleaner, more sustainable future. Tesla may have some competition in becoming the “gas” station of the future.

Follow

Follow

Follow

Will Tesla Launch a 'Robotaxi' Network With Tesla Drivers?

During Tesla’s Q1 earnings call, Tesla talked about its plan for its upcoming robotaxi network and even showed off a design for the app that would allow customers to request vehicles, much like Uber and Lyft.

While Tesla plans to unveil the robotaxi, officially now called CyberCab this August, a true autonomous taxi is at the very least, a couple of years away. So why is Tesla so eager to show off an app and start offering a Tesla taxi service?

in 2023 Uber had a revenue of 37.28 billion, while Lyft had a much smaller revenue of 4.4 billion. For comparison, Tesla’s revenue last year was 96.77 billion. A taxi service, even one operated by humans can be incredibly lucrative. While Tesla’s ultimate goal may be an automated taxi service, they may be itching to get into the space.

Tesla’s robotaxi was initially supposed to be a taxi service owners would lend their vehicles to. While that’s still the plan, Tesla wants their own vehicles to be a part of the service as well.

Will the Robotaxi Service Start With Tesla Drivers?

Tesla comparing themselves to Airbnb and Uber during their earnings call is intriguing. While Tesla can start producing robotaxis almost whenever they want, it’d likely be smart to wait until autonomy is solved so they’re not limiting themselves to current FSD hardware.

While full autonomy is likely several years away, Tesla seems to be eager to make this push toward a Tesla-owned service. Is Tesla thinking about operating their own Uber-like service? Tesla could be thinking about releasing their future robotaxi app and service in “beta,” letting current Tesla owners operate their own vehicles on the service.

This could result in several benefits for Tesla, not only letting them test their service but also opening up another revenue stream. This would allow Tesla to start operating their robotaxi network as soon as this year, and then slowly replace drivers and owner vehicles with Tesla-owned robotaxis.

Tesla Shows Off Robotaxi App

Tesla showed off it's robotaxi app

At the earnings call, Tesla also showed off a design of their robotaxi app. While it feels early to design an app for a service that could be years away, Tesla appears to be preparing itself for the future and getting customers excited about the prospect.

Tesla showed off five screens of the app, essentially showing how you’d request a robotaxi, how you can view its progress, and control certain features of the vehicle. Through the various screens, you can see most of Tesla’s Autopilot features coming to fruition in terms of autonomy, such as summon, self-driving and eventually Autopark.

Summon - Much like Tesla has re-thought the interior of a car and so many features, you can see the same mechanics applied to the app. To request a vehicle, you simply hold down a summon button and you’ll be presented with an estimate of when a vehicle will arrive.

Set Preferences and Destination - On the second screen, you can see the vehicle’s current location on a 3D map, possibly alluding to future FSD visualizations. It also lets you set your destination and set the climate temperature to your preference.

Trip Progress - While you’re traveling in the vehicle, you’ll be able to view trip information as well as set entertainment options.

Recap

Tesla had a lot to talk about during their earnings call and specifically about the Robotaxi — more information was revealed than ever before.

While there are various things at play to make a service like this come together, we can easily separate them out into separate components.

There’s the robotaxi itself, which Musk recently said would be similar to Tesla’s next-gen vehicle without a steering wheel. However, during this earnings call, he revealed that Tesla will save its new “unboxed” manufacturing process for the robotaxi and use a more traditional method for their next vehicle.

Then there’s FSD itself, while it’s crucial to operating a driverless robotaxi network, it’s not necessary to start a Tesla taxi service.

The last piece is the ride-hailing component itself and how it’s managed, and Tesla was happy to show this off, which makes us believe that it may be closer to reality than many think. While Tesla needs all three of these components to come together to operate a true robotaxi network, they piece them together separately, much like they’ve done with Autopilot. Initially, Tesla only released auto-steer then slowly added on summon, Autopark and city driving.

When we look back at Tesla five years from now, we may very well look back to this earnings call and say this was the pivotal moment when Tesla started transitioning to a services company.

Follow

Follow

Follow

Tesla Reveals Robotaxi App and Names the Robotaxi the CyberCab

Tesla has invested billions of dollars over the years toward vehicle autonomy. The mission continues as Elon Musk and Tesla now prepare to unveil their ride-hailing product, Robotaxi this August. Or, as Musk called it on Tuesday, Tesla CyberCab.

Early Days

Five years ago, during Tesla’s Autonomy Investor Day in April 2019, Elon Musk said he felt “very confident predicting autonomous robotaxis for Tesla in the following year [2020]”. At the time, Musk added a bolder claim, predicting that Tesla wouldn’t even make cars with steering wheels or pedals by 2022. While timeliness may not be Musk’s strong suit, he has a track record for getting things done that others were unwilling to try or thought were impossible. Musk later admitted he can be overly optimistic and said “sometimes I am not on time, but I get it done.” 

Now, 5 years later, we have the robotaxi unveiling scheduled for August 8th. After the release of FSD v12, it’s clear that we’re much closer to autonomy than we were in 2019, although FSD v12 is still a far cry from full autonomy.

While Tesla still has the robotaxi unveiling scheduled for August, Tesla announced yesterday that it’d be prioritizing a simpler “next-gen” model that could be released by early 2025.

Latest Updates

On the conference call, Musk added that Tesla now has over 300 million miles driven with FSD v12 since it was launched just last month. He added that it's becoming “very clear that the vision-based approach with end-to-end neural networks is the right solution for scalable autonomy”.

Tesla said it has been investing in the hardware and software ecosystems necessary to achieve vehicle autonomy and a ride-hailing service. The company is confident that it can establish a scalable and profitable autonomous driving business by employing a vision-only architecture.

think of it [Tesla] as combination of Airbnb and Uber meaning that there will be some number of cars that Tesla owns itself and operates

Tesla = Uber + AirBnb

Later on, Elon Musk unveiled that the new service will operate and result in a mix between Uber and Airbnb where the Tesla driver decides if and when he wants his Tesla to be used and by whom. Tesla stated:

“We believe the Tesla software experience is best-in-class across all our products, and plan to seamlessly layer ride-hailing into the Tesla App.”

Tesla’s CEO clarified that the owners will be able to add or remove their car from the fleet “whenever they want” adding that it will be up to them to decide if they want to only let the car be used “by friends and family or only by five-star users or by anyone at any time”. The flexible program will, just like Airbnb, allow the owners to take the car out of the market when they want.

The upcoming ride-hailing service will enable users to easily request a Tesla vehicle, control the car's temperature, monitor its real-time location, and adjust the audio system. The only question is when.

Follow

Follow

Follow