A shopper sits on a mobility scooter outside the Tesla Motors Inc. store at Westfield Stratford City ... [+] retail complex in London, U.K., on Thursday, Oct. 24, 2013. Tesla, the electric-car maker led by Musk, had its first quarterly profits this year with a boost from selling California pollution credits. Photographer: Simon Dawson/Bloomberg

[7/23/2020] Soaring Emission Credit Sales Drive Teslas Q2 Beat

Tesla published Q2 2020 results on Wednesday, posting a net income of $104 million - well ahead of consensus estimates that projected a small loss. So how did Tesla manage to beat expectations by such a wide margin? Soaring regulatory credit sales were the primary reason.

The sale of regulatory credits rose to around $428 million in Q2, up from about $354 million in Q1 and just $111 million in Q2 2019. As these credits are almost pure profit (Tesla probably incurs no direct expenses to earn them), the company would very likely have reported a loss on a GAAP basis, if it didnt recognize these revenues. Moreover, we estimate that Teslas Automotive Gross Margins would have been lower by over 600 basis points (6%) in Q2 2020, if not for these sales.

Trefis

So why are Teslas emission credits sales soaring, when its automotive deliveries grew by just 3% sequentially and are down by about 5% year-over-year? Firstly, revenue recognition for these credits is quite lumpy and Tesla could sell vehicles in a quarter and recognize revenue from related credits in future quarters. Secondly, stronger demand for credits might also be driving up the price. The European Union introduced more stringent emission norms this year, requiring average Carbon Dioxide emissions per kilometre to drop to 95 grams from an average of over 120 grams in 2018 for passenger cars. Considering this, automakers need to buy credits from clean vehicle manufacturers such as Tesla in order to avoid large fines for breaking these new emissions rules. Fiat Chrysler is a large customer for Teslas credits - agreeing to buy credits worth roughly $2 billion over 2020 and 2021. [1]

To be sure, this cash cow wont last for too long. In the medium- to long-term, mainstream automotive companies will scale up their zero-emission vehicle sales, reducing the need to buy credits from Tesla.

However, Tesla should continue to improve its margins and profits via higher software sales and battery improvements (related: A Detailed Look At How Teslas Battery Costs Impact Its Gross Margins). Teslas self-driving software upgrades, which cost about $8,000 per vehicle currently, are highly lucrative and we estimate that they contributed about 400 basis points (4%) to Teslas Automotive Gross Margins of 21% in 2019. (See our analysis: How Do Teslas Software Upgrades Impact Its Margins?)

[5/1/2020] How Emission Credit Sales Helped Teslas Q1 2020 Results

Tesla posted a stronger than expected set of Q1 2020 results, despite the coronavirus pandemic, with revenues growing by ~32% year-over-year and adjusted profits coming in at $227 million, versus a loss of about $494 million a year ago. While the company benefited from strong deliveries of the Model 3 and a production ramp at its Shanghai factory, much of the improved profitability came from higher sales of emission credits which soared to about $354 million from an average of about $150 million over the last four quarters. If not for the spike in regulatory credit sales, Tesla would likely have barely broken even. Below, we take a look at how sales of regulatory credits have helped Tesla and why we believe the near-term outlook for the company looks quite challenging.

For more details on the outlook for Teslas revenues, view our dashboard analysis Tesla Revenues: How Does TSLA TSLA Make Money?

What Are Regulatory Credits And How Do They Help Tesla?

Several U.S. states and countries have Zero Emissions Vehicle regulations that require that clean vehicles account for a certain mix of auto manufacturers sales each year. If automotive companies, which still largely sell internal combustion engine-based vehicles, dont meet these standards, they can buy credits from the likes of Tesla that earn credits, as they only sell electric vehicles. Although the revenues from these credits are quite volatile they are very lucrative for Tesla, as it likely incurs no direct costs to earn them. The bump in these regulatory credit sales is likely to be partly responsible for the companys automotive gross margins expanding 300 bps sequentially to 25.5%. While its possible that such credits could become more valuable in the medium term, as new emissions regulations come into play in Europe and states in the U.S. look to enforce stricter norms, the current collapse in global auto sales could hurt revenues from ZEV credits in the near-term for Tesla.

Outlook Remains Tough For Tesla In The Near-term

Tesla is likely to face significant near-term revenue pressure and the company has put its 2020 guidance on hold, due to uncertainty surrounding the coronavirus pandemic and the broader economic recovery. There is little reason for people to buy expensive cars right now and Teslas production at its Fremont facility, which accounts for about three-quarters of its annual capacity, remains suspended and theres no clarity as to when it could resume.

However, despite significant near-term headwinds, the companys stock has continued to rally, almost doubling year-to-date. The company trades at a P/S multiple of about 6x, compared to GM which trades at about 0.3x, based on trailing revenues. This means that the stock has significant valuation risk, making it react more strongly to negative news compared to its peers.

Our theme Autos Fight COVID-19 contrasts the performance of Tesla stock, which is up almost 90% YTD, with mainstream automakers, who have seen their stocks fall by about 40%.

See allTrefis Price EstimatesandDownloadTrefis Datahere

Whats behind Trefis? See How Its Powering New Collaboration and What-Ifs ForCFOs and Finance Teams |Product, R&D, and Marketing Teams

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Behind Teslas Profits - Forbes

The fate of the $2-trillion auto industry is now sealed: In this double disruption thats defying the global pandemic, Tesla (NASDAQ:TSLA) has gained over 433%, sailing past a $1,500 share price and a $300-billion valuation.

And absolutely everyone tied to this industry is catching the tailwinds.

EV startup Fisker opted to go public right at this time, seeing the industry writing on the wall.

Blink Charging (NASDAQ:BLNK) has gained 257% since June and is still climbing.

But investors eyeing more--and less obvious ways--to profit from the EV surge is this tie-in: The company that upstaged giant Uber and Lyft on the ESG Investing scene to bring the world the first-ever ride-hailing platform with an EV angle.

The next in line that could benefit from the massive EV surge is Facedrive (TSXV:FD,OTC:FDVRF), the startup leading the Canadian evolution of shared mobility--from EV and carbon-offset ride-sharing to acquisition-hungry food delivery, healthcare services, even COVID tracing tech--and much more.

There were EVs before Tesla. But no one wanted to drive them. Elon Musk changed that.

In the same way, there was ride-hailing before Facedrive. But it had no impact investing appeal. Facedrive is changing that.

Big money is no longer willing to risk it all on high-growth prospects with no ESG angle. Thats because ESG, or environmental, social and governance investing has become synonymous with risk mitigation, whether its related to climate change, human rights or simply good governance.

Facedrive has the new business model designed to lure in this big money.

Its sharp, sleek, ultra-high-tech, eco-friendly and comes with a complete ESG value chain of services.

Its the first to offer riders a choice of EVs and hybrids, and to plant trees to offset its carbon footprint.

Its the first to bring cities and communities on as stakeholders, and to treat its drivers as people who deserve living wages.

Its the first to truly view ride-sharing as one part of a much bigger ESG shared mobility picture that all hinges on the most advanced technology.

Now, its starting to go international, and even giant Amazon (NASDAQ::AMZN) has taken notice.

A series of smart acquisitions, new service launches and FAANG-level and Tier-1 corporate partnerships have positioned it to be a key challenger to the shared mobility throne.

The news flow has been fast and furious even beyond acquisitions, with corporate tie-ins to Amazon and Canadas Telus telecoms giant and even government endorsement for its high-tech COVID tracing and its planned to start flowing even faster.

Here are 6 Reasons to keep a close eye on this space:

#1 Facedrive: The New ESG Poster Child

ESG Investing isnt just a trend--its a megatrend. And it isnt just a megatrend, even. It hit that status in 2018 at the $30-billion mark.

Now its a craze thats tied sustainability directly to risk mitigation instead of morals. In other words, its where the big money is flowing, and where the big money is to be made.

Just ask BlackRock, which has now replaced Goldman Sachs to become the King of Wall Street.

Facedrive (TSXV:FD,OTC:FDVRF) is about sustainability across its entire chain of ESG-focused services and revenue streams.

Thats because it saw the trend coming in advance--way back in 2016.

It saw where things would go wrong for Uber, the first ride-sharing giant that completely ignored sustainability--not to mention profit--with studies showing that ride-hailing results in nearly 70% more pollution than whatever transportation it displaced.

Thats where Facedrive launched its ESG coup: Offering customers a choice theyve never had in ride-hailing. Facedrive customers can choose from EVs, hybrids or conventional cars, and then rest assured that part of the CO2 footprint they might leave behind is offset by Facedrive tree-planting. Globally each year, plants remove about 25% of the carbon emissions produced by human activities

And this premium environmentally-friendly service doesnt come at a cost premium, nor do drivers lose out on fares for the green initiative.

That puts Facedrive at the lucrative crossroads of two megatrends: The disruption of the global transportation service industry heading towards $7.5 trillion in 2023 and the ESG investing trend that has far more demand than supply right now.

And while green ride-sharing will be pinging the radar of ESG-hungry investors on Wall Street, Facedrive has a major lineup of other services that all tick the rider-relationship revenue box and all play into the sustainability trend ...

#2 Partnership Deals With Corporate Giants

When Facedrive officially launched its Corporate Partnership Program on June 30th, to anyone paying attention, it was a huge deal because it included giant Amazon--just for starters.

Both global e-commerce giant Amazon and Canadian Tier-1 telecoms giant Telus jumped in on Facedrives corporate partnership program. And that news flew right under the radar because it wasnt officially announced and was revealed only after Facedrive released its Q2 earnings report.

That means both giants will be Corporate partners of Facedrive and that their employees will receive preferred rates on Facedrive products and services.

And they wont just be using Facedrive in Canada, theyll be helping it expand its technology infrastructure around the world as Facedrive branches out internationally.

With Amazon and Telus on board, more companies are likely to join.

What theyre following is the ESG trend on a very large portfolio of sustainable services that all take advantage of wider potential of rider-platform relationships.

Theyre also following what has become a clear challenge not only to giant Uber, but to the entire food delivery industry, too.

#3 Storming the Food Delivery War Zone

Facedrive (TSXV:FD,OTC:FDVRF) is pursuing aggressive expansion in this space--but is not prepared to pay premium prices like Uber has been.

On July 10th, Facedrive finalized a deal to acquire the assets of Foodora Canada, a subsidiary of giant Delivery Hero--the $20-billion multinational food delivery service operating food delivery services in 40 countries and services over 500,000 restaurants. And its a brand that doesnt have the negative reputational baggage of Uber Eats or DoorDash.

Facedrives acquisition of the Foodora Canada food delivery business gives it hundreds of thousands of user contacts and over 5,500 new restaurant partners, making the launch of Facedrive Foods a major power play in Canada.

The deal comes at a time when the food delivery segment is undergoing a global war thats even more intense than the streaming wars. Its also a war that is likely to result in premium-price rival takeovers. After all, by 2027, the global food delivery business is expected to be closing in on $100 billion.

Overnight, Facedrive is set to position itself into the top echelon of Canadian food delivery services. The next move is international expansion.

#4 Government Endorsement of Proprietary COVID Tracing Tech

Facedrive engineered a major coup at the height of the COVID pandemic, launching TraceSCAN, a homegrown Canadian COVID-19 tracing solution and the only well-known viable application that features Bluetooth wearable tech integration.

Its also got one of the biggest labor unions in the world on board, and more recently--official endorsement from the Government of Ontario.

Facedrive has now partnered with LiUNA--one of the largest labor unions in the world--to help protect the health and safety of its 130,000 members and their families in Canada.

Now, Facedrive is the definitive leader in this space in Canada.

The government isnt just endorsing the tech, its supporting its deployment--far and wide. Its the only tech that can effectively help trace coronavirus infections, and it will be crucial to contact tracing on everything from Parliament Hills major renovation project in Ottawa, to corporate offices, sporting events, healthcare facilities, long-term care facilities and outdoor venues.

That is a major proprietary coup for a shared mobility company that is disrupting multiple industry segments with the notion that this is about far more than getting from Point A to Point B. Its an entire ecosystem of sustainability revenues.

Another important development is that its social distancing app now has 500,000 downloads within one month of launching.

#5 The Right Kind of Branding for Mass Appeal

Millennials have changed the future of investing, and that means branding has to pay attention to where all the money is coming from. Branded correctly, shared mobility can reach into countless revenue streams to tap into the rider relationship.

Facedrive isnt just creating multiple services. Its creating a lifestyle.

And the company leaves few stones unturned here, including its own line of exclusive, celebrity-branded clothing.

Will Smith and Jada Pinkett Smith were the first to jump on board, attracted by the ESG portfolio and the Facedrive people and planet first motto.

Now, Will Smith has co-branded an entire line of exclusive clothing with Facedrive with his Bel Air Athletics clothing brand.

And his company with Jada Pinkett Smith, WestBrook Inc., is partnering with this rideshare startup that is now expanding internationally to challenge Uber for the throne.

Over 1,000 new products co-branded by Bel Air and Facedrive have launched on the Facedrive marketplace website and the demand has been great.

As always, sustainability is the name of the game, with Bel Air and Facedrive pursuing 100% sustainably sourced materials by next year.

#6 The Name of the Game Is Ultimate Impact

Initiatives that have the capacity for widespread impact are drawing investors in flocks. And with the socially conscious millennial generation launching itself into the market and 30-some-odd years from retirement, this trend is beyond mega. Big money has latched onto it firmly now.

And Facedrive (TSXV:FD,OTC:FDVRF) is adding impact to everything from ride-sharing and food delivery to COVID tracing and exclusive clothing for a solid line-up of ESG services in a single shared mobility company.

So, welcome to the conscientious revolution, led in part by Facedrive.

But pay attention to the numbers because Stakeholder capitalism is a trending term, embraced even by mainstream organizations, and its what Facedrive is all about.

And the high-speed news flow

Facedrive only publicly launched in Q3 2019, and the list of deals and developments has been hard to keep up with:

Its rare to see a new company moving this fast to take advantage of multiple opportunities provided by everything from giant Ubers missteps to a global pandemic and the march of big capital toward sustainable investing.

Its on the right side of history: In lock-step with Teslas EVs and BlackRocks impact investing takeover of Wall Street ... and the tailwinds are ferocious.

Conclusion

The dramatic rise of all things green in the stock market has been a boon for companies like Facedrive, Tesla, and Blink Charging.

COVID-19 should have put the brakes on the the EV industry boom because of a pandemic lull in driving in Q2--but it didnt.

Tesla (NASDAQ:TSLA) has been tearing it up, with its stock price skyrocketing this year. Not only is Teslas auto business booming, its even taken a dive into the solar sector, creating rooftop solar panels that are cheaper and more efficient than traditional sources.

Smashing Wall Street consensus left and right, there seems to be no stopping Tesla, and its taking the rest of the industry along for a ride in its wake.

Teslas rise has even helped propel Blink Charging into the spotlight.

Blink (NASDAQ:BLNK), an electric vehicle charging company, has risen by 319% in just three months, and its showing no signs of slowing. A flurry of new deals, including a collaboration with EnerSys have created some support for the relative newcomer.

Michael D. Farkas, Founder, CEO and Executive Chairman of Blink noted, This is an exciting collaboration with EnerSys because it combines the industry-leading technologies of our two companies to provide user-friendly, high powered, next-generation charging alternatives. We are continuously innovating our product offerings to provide more efficient and convenient charging options to the growing community of EV drivers.

Another high-profile deal between Blink and Envoy Technologies to deploy electric vehicoes and charging stations adds further support.

Aric Ohana, CEO of Envoy noted, Were excited to work with Blink on the deployment of their fast Level 2 charging stations as part of our exclusive electric car-sharing service. The vision of our two companies is aligned: to advance the adoption of electric vehicles. To continue to drive the growth and success across our expanding locations, we have to ensure that our clients have easy and efficient access to high-quality, reliable charging equipment. Blink has an established reputation as an innovator in the EV market, and we are thrilled to add them as a preferred partner.

While millennial Robinhood traders might be leading the charge, its clear that theres a demand for eco-friendly alternatives.

Blackrock (NYSE:BLK) makes this trend all too clear. The worlds largest asset manager has played a key role in fueling the hype. Its planning to more than 10x that number over time though, aiming to boost that number to over $1 trillion by 2030.

This should serve as a massive wake-up call for investors everywhere, as BlackRock - the $84 billion hedge fund - has replaced Goldman Sachs as the most important banking company in the world.

Thats also the reason its gone beyond banking, even reaching 4th branch of government status.

Its not alone though. Many across Wall Street and beyond have been vocal about the direction ESG investing is heading.

Even Amazons Jeff Bezos is on board. In addition to his $10 billion green fund, Amazon (NASDAQ:AMZN) is investing big on the transportation of tomorrow too leading a $700 million investment round in EV startup Rivian before acquiring robo-taxi startup Zoox for over $1 billion.

But its not just limited to transportation. Earlier in July, Perpetual Limited, an Australian asset manager, acquired sustainable investment firm Trillium Asset Management, for a massive $3.3 billion!

The money involved in this global shift toward sustainability is staggering.

And Uber (NASDAQ:UBER) still hasnt seem to have gotten the message.

Though it has been incredibly successful in disrupting the entire transportation market in just a few short years, Uber is still struggling with debt, and its public image is dwindling as it fails to meet the new standard of sustainability.

Ubers ex- CEO Travis Kalanick once said, "A city that welcomes Uber onto its roads will be a city where people spend less time stuck in traffic or looking for a parking space," adding, "It will be a cleaner city, where fewer cars on the road will mean less carbon pollutionespecially since more and more Uber vehicles are low-emission hybrid vehicles."

But the reality couldnt be further from the truth. In fact, in many studies, it has been revealed that Uber actually increases emissions in these cities. And thats why the world so desperately needs an alternative.

This is where Facedrive has stepped up, offering users are choice to pick a greener ride and even if they dont, the company actively offsets emissions a win-win for customers.

Canadian companies are getting on board, as well.

Telus Corporation (TSE:T)

Telus long-standing commitment to putting its customers first fuels every aspect of its business, has had it a definitive leader in Canada. In fact, Telus Health is one of the countrys biggest healthcare IT providers. And its done so with sustainability in focus.

Driven by its goal to connect all Canadians for good, it has contributed over $55 in community giving, reduced emissions by 31% and has four consecutive years on the Dow Jones Sustainability World Index.

Shopify Inc (TSX:SH)

Shopify is a rapidly-expanding tech giant in the e-commerce sector. Its already got over 1 million businesses using its platform, including Budweiser, Tesla and Red Bull. Shopify has revolutionized the e-commerce world, allowing anyone, even if they do not know how to code, build and deploy an e-commerce website. And its not without its ethical grounding, either. Shopify is pushing towards sustainability in a major way. It has started its own sustainability fund, which it adds $5 million to each year to help tackle the looming climate crisis.

Shaw Communications Inc (TSE:SJR.B)

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The 400% Tesla Rally Was Only The Beginning Of The EV Boom - OilPrice.com

A rare glassy lithium metal observed by battery researchers, including Shirley Meng, the research partner for the Maxwell Technologies business acquired by Tesla in 2019, could lead to faster charging, higher capacity EV batteries.

This is truly exciting!!! Glassy lithium might be the answer to the quest for fast charging lithium metal batteries, said Meng in the tweet on Tuesday (Australian time).

Tesla CEO and co-founder Elon Musk has previously flagged Maxwells dry cell technologies as key to its planned electric Cybertruck.

It is not outside the realms of possibility that if the new research leads to commercially viable and significant battery improvements it will also be utilised by Tesla.

This is truly exciting!!! Glassy lithium might be the answer to the quest for fast charging lithium metal #batteries Thank our partners at @INL and @PNNLab Battery500 consortium continues to make progress @LESC_Public @UCSDJacobs @NANO_UCSD https://t.co/Mw4fwCvuT9

Ying Shirley Meng (@YingShirleyMen1) July 27, 2020

According to a release published by INL, the researchers found that by slowly charging lithium atoms at a very low rate produced a new glassy lithium material that has never been observed before and which can improve charging behaviour.

As The Driven has noted previously, lithium metal offers great potential for electric car batteries in its ability to store more energy and because it is lighter than graphite which is traditionally used for anodes.

However, it has inherent stability issues because the lithium atoms deposit in varying crystalline form onto an anode when a cell is being made.

Because cracks appear in polycrystalline batteries every time they are charged and discharged, this means batteries using lithium metal are currently not considered rechargeable.

The INL and UCSD researchers were seeking to better understand the nucleation process (when lithium atoms first come together) in the belief that improving regularity of the first early atom deposits could greatly improve cell performance.

That initial nucleation may affect your battery performance, safety and reliability, said Gorakh Pawar, an INL staff scientist and one of the papers two lead authors in a statement.

It is critical to comprehend the underlying mechanism of lithium depositionespecially in the very early stage of nucleation, they wrote.

The researchers were surprised to find that in certain conditions, instead of the usual crystalline form created during nucleation, that an amorphous, or glassy, form was taken.

Compared to crystalline lithium, glassy lithium outperforms in electrochemical reversibility and is a desired structure for high-energy rechargeable batteries, the authors wrote.

According to Meng, the discovery was made by using a powerful electron microscope to see the creation of the lithium metal embryos, after which computer simulations helped explain what they saw.

The power of cryogenic imaging to discover new phenomena in materials science is showcased in this work, said Shirley Meng, who led UC San Diegos pioneering cryo-microscopy work.

Meng said that because imaging and spectroscopic data observed are often complicated, It is true teamwork that enabled us to interpret the experimental data with confidence because the computational modeling helped decipher the complexity.

EVen more exciting is that the researchers believe the amorphous nucleation structure could be retained throughout the anode structure growth.

We can make amorphous metal in very mild conditions at a very slow charging rate, said Boryann Liaw, an INL directorate fellow and INL lead on the work. Its quite surprising.

Next steps are for the research to be applied to high-capacity batteries, which the researchers hope could be help meet the goals of the Battery500 consortium, a US department of energy initiative that aims to develop commercially viable electric vehicle batteries with a cell level specific energy of 500Wh/kg.

Citation:Glassy Li metal anode for high-performance rechargeable Li batteriesWang, X., Pawar, G., Li, Y. et al. Glassy Li metal anode for high-performance rechargeable Li batteries.Nat. Mater. (2020).https://doi.org/10.1038/s41563-020-0729-1

Bridie Schmidt is lead reporter for The Driven, sister site of Renew Economy. She specialises in writing about new technology and has been writing about electric vehicles for two years. She has a keen interest in the role that zero emissions transport has to play in sustainability and is co-organiser of the Northern Rivers Electric Vehicle Forum.

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Tesla could reap benefits of truly exciting glassy metal battery research - The Driven

Renaissance man Jamie Foxx got what looks to be his first taste of electric torque in a Tesla Model 3 Performance this week on his YouTube channel. The comedian, songwriter and actor says his friends have been hounding him to drive one, and he does his best imitation of a car reviewer, which isnt very good. Thats OK, the impressively ripped Foxx has other talents, like playing Mike Tyson in an upcoming biopic.

Ive only been in a few Teslas during my tenure here at Autoweek. Circumstances seemed to always be against me. The first one was stuck at the bosss house with a charger issue; the second died after half a track day. But do I remember a similar string of expletives coming out of my mouth the first time I was riding shotgun and went from zero to 60 mph in 2.9 seconds.

Foxx does what he does best, crack jokes to the camera, while driving. He floors it a few times, letting out a string of swear words each time. He also slips into a Dwayne Johnson impression for a moment, which is not surprisingly great. His cohorts film it all from the passenger seat.

He swaps into semi-autonomous mode for few minutes and does a little dance, having to be reminded that the driver needs to touch the wheel periodically. He then pretends to take a nap, which I want to say is not funny, but almost anything Foxx does IS funny. Dont do that, people. Dont try to take a nap in your Tesla.

Foxx finishes off the video with the old, step-out-of-the-car-and-give-your-final-thoughts bit, but of course he just cracks jokes. Wed expect nothing less.

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Jamie Foxx Uses All the Swears in a Tesla Test Drive - Autoweek

Elon Musk is commonly compared to comic-book heroesthe brainy, scientific kind like Tony Stark or Bruce Wayne, grappling with huge problems and inventing technologies to save the planet.

One of his lesser-known superpowers, however, has been his ability to defy the laws of brand building, establishing Tesla as the cool, aspirational brand of the decade without advertising of any kind. Tesla sits in a sector that spends big on advertising; Toyota Motor Corp spent $4.4 billion in 2018. But in July, Musks operation became the most valuable car company in the world, zooming ahead of Toyota without spending a dollar on ad campaigns. Even Apple and Amazon advertise.

How is Tesla doing it?

Musk does not lack marketing smarts. He once saidBrand is just a perception, and perception will match reality over time. Sometimes it will be ahead, other times it will be behind. But brand is simply a collective impression some have about a product.

Musk knows the foundations of branding and, presumably, how advertising has contributed to the growth of household names including McDonalds or Chevrolet. But he wants to generate positive perception for Tesla without spending those ad dollars. One of his core values is that hed rather go all-in on the product.

Musk has followed this mantra in bringing the companys mission, to accelerate the worlds transition to sustainable energy, to life. For Tesla, this isnt just a brand statement that lives on the website or in its Impact Report. It is a filter the company has used since its inception to inform everything it says, builds and doescreating consistency that is matched by few, and flexibility to grow and evolve.

Teslas adherence to its mission has accelerated the transformation of a scrappy American sports car manufacturer into a cutting-edge energy ecosystem provider that operates around the globe.

When Tesla was founded in 2003, electric vehicles were widely perceived as undesirable:ugly, inadequate and expensive. Instead of tiptoeing around these barriers, Tesla took on all of them.

From a product viewpoint, Musk has made the right plays with a high-end aspirational model that pushes the category forward in terms of performance and design, while gradually introducing more affordable entry points that benefit from the brands halo effect. And Teslas high standards dont stop with the vehicle. The entire user journey has been upended by the business.

Hosting product events that rival the likes of Apple and Google. Choosing to have no dealerships. Building charging networks across markets. Delivering vehicles directly to customers and servicing them in their driveways. Evolving performance with over-the-air software updates. There isno shortage of examples of how Tesla is rethinking the way people experience the brand.

By focusing on disrupting the details, Tesla quickly overtook traditional auto manufacturers and set its sights on comparison with other exemplary brands, most notably the tech giants.

Musk knows better than anyone the value of a charismatic, rebellious CEO to establish a strong positioning. He is synonymous with the Tesla brand, bringing along the Silicon Valley swagger of a tech company founder/CEO who moves in influential and celebrity circles, guaranteeing mainstream coverage along the way.

Tesla has also shunned theclich that innovative companies must be shrouded in secrecy. Instead, he has adopted an unparalleled open and conversational approach. Musk is truly only a tweet away, bouncing from answering technical queries to debating critics. When the Cybertruck was involved in a window-smashing foul-up, Musk didnt hesitate to take to Twitter and give an explanation of what happened.

Being visible and joining conversations builds rhythm and momentum around brand activity, maintaining interest from reveal to development to release. It also manages expectations, sharing progress early and often to lessen the focus on meeting specific deadlines. Lastly, it creates transparency and a sense of ownership, allowing many people to feel like they are a part of Teslas journey and become the brands loudest ambassadors.

Circumstances and market goals change. There is a motion about advertising on the table for the shareholder meeting in September. Tesla cannot be defined as a challenger brand anymore, given its market valuation. If the company is to become a mass market marque, selling the forthcoming Model Y SUV and its other cars to millions a year, it will have to pay up for advertising at some point. Doing so will be key to attracting elusive customers and strengthening price points.

If Tesla's advertising invokes its sustainable-energy mantra as well as high-end aspirations for performance and design, itsmedia plan and execution could leaverivals in the dust.

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Opinion: Tesla is defying the laws of brand-building - AdAge.com

Harley Finkelstein, COO, Shopify

Scott Mlyn | CNBC

(This story is for CNBC PRO subscribers only.)

Here are the biggest calls on Wall Street on Tuesday:

Seaport initiated Mondelez and Kellogg as buy and said it was focused on companies that will come through stronger after the coronavirus crisis passes.

"We are initiating coverage of seven food companies, including ADM, K, MDLZ, and SMPL with a Buy rating; and ANDE, BGS, and TSN with a Neutral rating. The food industry landscape changed dramatically with COVID-19 last March, and there is no recent historical period to even begin comparing how the industry may fare over the next 1-2 years. Therefore, we are focused on companies where earnings projections may appear either significantly under or overstated, and companies that should come through the back end of COVID-19 as stronger entities."

Raymond James said in its initiation of thepharmaceutical company that Bristol Myers has several clininal trial updates coming later this year which could improve the "current growth story."

"Our analysis of the drug portfolio suggests that clinical updates during 2H 2020 could improve sentiment around the current growth story, but may not resolve structural questions regarding long-term growth. Our thesis is predicated on the following key points: 1) pivotal read-out for BMS-986165 in psoriasis during 2H 2020 could set a positive outlook for the potential of the TYK2 franchise to differentiate against the JAK class;"

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Here are the biggest analyst calls of the day: Shopify, Tesla, Alphabet & more - CNBC

Audi hopes to develop an all-new autonomous electric car by 2024, but its boss admits they're already behind.

Audi's new CEO believes Tesla has a major head-start on the rest of the automotive industry, admitting his company has some catching up to do in the electric car space.

Markus Duesmann, who took the helm at Audi on April 1, 2020, said Elon Musk's company is "two years ahead" of Audi when it comes to the development of in-car software, autonomous capabilities and battery technology.

Currently, Tesla has larger batteries because their cars are built around the batteries," Mr Duesmann said in an interview with German newspaper Handelsblatt,

"Tesla is two years ahead in terms of computing and software architecture, and in autonomous driving as well."

Mr Duesmann said the newly established 'Artemis' project a research program overseen by a team of automotive and technology experts was seeking to address this discrepancy by fast-tracking the development of an all-new autonomous, electrified Audi car by 2024.

"In Artemis we bring together all specialists who work on the most modern technologies," Duesmann said. "It will be a centre of excellence that we have never had before."

According to Reuters, he also revealed Audi is targeting 40,000 sales of its E-Tron badged electric cars globally by the end of 2020, after selling more than 17,000 units in the first six months of the year an increase of 86.8 percent on 2019.

According to recent sales figures from Audi, the E-Tron SUV is the top-selling fully electric SUV in Europe, beating out competitors like Tesla's Model X, the Mercedes-Benz EQC and the Jaguar I-Pace.

However, the Audi boss also acknowledged the coronavirus pandemic had created challenges he believes the automotive industry is unlikely to recover from until at least 2022 or even 2023.

We certainly expect the coronavirus crisis to have longer-term effects, Mr Duesmann said.

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Audi CEO: Tesla is 'two years ahead' of the curve - CarAdvice

If you've been following the electric vehicle space for some time, there's a good chance you're familiar with EV West. The store, located in California, specializes in electric car parts and components. More importantly, they're a major player when it comes to EV conversions.

EV West's work attracts the attention of EV advocates and YouTube influencers, so you may have seen projects like its electrified Volkswagen bus, as well as others. More recently, EV West reached our toBen Sullinswith a picture of a plain and simple all-electric van. Sullins took a trip out to EV West to check out the project.

As it turns out, the vehicle is an electric van made in Europe by a company named Modec. It entered the U.S. under the name eStar. This van was the only vehicle the company ever made, though it was available as a cab with a chassis, a box van, and a drop-side van. It has a weak motor and a small lead-acid battery, which only offer about 100 miles of range and a 50 mph top speed.

In the end, the company was failing and ended up merging with Navistar International. Despite the merger, the company eventually failed. EV West got ahold of an old Modec box van and is currently upgrading it to achieve better performance and 200 miles of range. Once complete, it could be used as a work van, converted to a passenger van, or even an EV or camper. The potential here is limitless.

Check out the video for all the details. Then let us know what you think of this project. What would you do with this electric van? We'll keep you posted on how the project turns out.

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Check Out This Tesla-Powered Electric Van Project: Behind The Scenes - InsideEVs