Welcome to Electrified. It's your host, Stilin Lumis. Quick shout out to my new or updated patrons, Manage M and Phil Kay. Thank you for choosing to support the channel.
Tesla has reopened reservations for the Roadster. $5,000 due up front and then $45,000 is due within 10 days. You may want to check your geography but at least in the United States and I know a few other global locations as well, have reservations opened again. There's no indication of price. Now in the past, we were told the base model could be around 200,000 with the founders and the SpaceX packages pushing 250,000. And the last timeline guess we got from Elon at investor day was that they would finish the design and engineering this year and hopefully answer low volume production in 2024. And looking at the terms, yes, your reservation is fully refundable.
We got a new Tesla stock note from Morgan Stanley. Very curious what you guys would think of this. They're saying for years, they've included significant value in their Tesla DCF for the value of Tesla supplying batteries to other OEMs. Of their $200 price target, $28 is related to Tesla as a third party battery supplier. Maybe long long term, you know, 7, 10, 15 years plus but in the short term, I think Tesla is going to need the 4680s for its own projects. Now I think Tesla should be given some value for potentially licensing some things like software technology, maybe even certain hardware, but I found this interesting that of all the future projects Tesla has Morgan Stanley shows Tesla as a battery supplier to assign some value today. What do you think?
In a new press released, we learned this company Baywa RE is going to be including the Tesla Powerwall through their solar system division, which is essentially its distribution arm in the United States. This Baywa company is a trusted ally for a network of leading solar installers and they're looking to expand their roles into residential energy consultants. Baywa will add Tesla Powerwall in California and is already working to expand availability to other US states in the coming months. So this is bullish for powerwall production and ultimately the distribution of that product as this company will now be marketing and carrying Tesla Powerwalls.
We get an update on Tesla India. Tesla is expected to get back with its detailed India plan outlining the time it needs to set up a domestic vendor base in the next three to six months. So Tesla getting into the nitty gritty planning here. If the company looks at setting up a domestic assembly unit for EVs, India is willing to offer import concessions on the components required for the same.
But over a period of time, Tesla will have to locally manufacture the components for which it will have to ask its vendors to set up shop there. Most of Tesla's vendors are Chinese. So they need to form joint ventures with Indian firms to operate in India. Once Tesla agrees to set up a manufacturing plant in the country along with a timeline for meeting indigenization levels or localizing the manufacturing of these products, the government may come out with a modified PLI scheme, which is a production linked incentive for EVs and batteries. They're saying Tesla is no longer pressing with its earlier demand for lowering import duties on completely built units. So Tesla may bypass the importing and just go straight to local production. For whatever it's worth, there's a three to six month timeline and Elon said they may announce another gigafactory by the end of this year. So maybe this is it.
Personally, I can't get enough of hearing the Model Y was the best selling car in the world in quarter one, but I just wanted to give you the breakdown of where those Model Ys were actually being sold. 94.4,000 in China, 83.6,000 in the United States, 71.1000 in Europe for a fairly even distribution. And in terms of Tesla's overall sales in quarter one, not just the Model Y, the United States actually edged out China.
There are plenty of articles about Elon's visit in China being written and very little actually being said. But this time around, apparently people on social media have been calling Elon a pioneer, brother, ma, and a global idol. And one social media user said Elon Musk is just great. If only China could have someone like Elon Musk, which honestly all political stance is aside, I wish more Americans could adopt that mindset and appreciate what Elon has done for the country.
As you saw, China has called for stable and constructive ties with the United States in this meeting with Elon. And I think it's interesting that years ago, the premier said that Elon could help stabilize relations with Washington. And here we are about four years later and Elon is doing exactly that. And the foreign minister said a healthy, stable and constructive China-US relationship is not only beneficial to both countries, but also to the world. And on Weibo, Grace Tao shared this image of Elon visiting Gigashang High. And I thought this was a very cool sign of respect. They made Elon his own menu at one of the restaurants where he was apparently eating on this trip.
The horse is known for its agile and swift nature in both Chinese and Western cultures. Since inception, Tesla has emerged as a dark horse standing out from traditional automotive companies and making remarkable achievements. This Chinese phrase associated with success serves as a wish for Tesla's successful journey on the path of going electric driven by dreams and traversing great distances.
So yeah, at least things with Elon Tesla and China seem to be pretty solid. But what we do get is news that Tesla plans to unveil the Model 3 project island to Elon this week. All we get for now is that Tesla plans to give an early glimpse of the revamped Model 3 to Elon. The first car is coming off the line on Thursday, our prototypes, and Bloomberg is saying it's slightly longer, sportier, and has a sleeker interior design. And an unfortunate reminder, just because Elon may get to see it this week does not mean that we will get to see it this week. But if prototypes are coming off the line this week, that would really lend some credence to actual production coming in quarter three like we heard earlier this year.
Just a note on this tweet from Sawyer, I looked at the article and scrolled through it multiple times, didn't see any mention of Tesla or Megapax. Let me know if I'm missing something, but just be careful with that one. Tesla has been notifying customers that due to a new industry policy, they will now be delivering vehicles with a max 50% charge. And in order to compensate, they're going to give 150 kilometers of free supercharging for the inconvenience. It's too soon to say if this will just be for deliveries that traveled by ship due to some of those ship fires over the past few months, but just wanted to share so people don't think Tesla is just being lazy.
Here we have the results of a brand new study done by the International Council of Clean Transportation. I won't fully dive into this study, it's really just confirming things that most of us already know, Tesla and BYD clearly the leaders up front in green, plenty of transitioners in the middle. I wanted to point out the laggards is really the Japanese companies and one in India, Tata Motors. Also, if note when it comes to comparing Tesla to BYD, the only area BYD one was in this pillar score right here, which is just going over their actual coverage of different models and different variants.
But when it comes to this pillar score here for technology performance in all of these metrics and this pillar here for strategic vision, Tesla ahead of BYD according to this organization. And they evaluated the top 20 manufacturers in the world based on their sales, actions and ZEV strategies in six major global markets. And if you were wondering like myself, why Tesla got a zero in renewable energy, they say only BMW, VW and Mercedes-Benz have made strong progress in using 100% renewable electricity when it comes to actually making the vehicles. And of course, it's not that Tesla uses zero renewable energy at its factories, it's just they're using a relative scale for these ratings. But again, this will be linked below if you want to dive in.
Toyota is looking to get in the game. It just said it'll build its first United States made EV in Kentucky starting in 2025. It'll be a three row EV crossover, which Jim Farley just said they're going to be targeting because the two row smaller crossover segment is already very crowded.
The EV batteries for these vehicles will come from North Carolina and they announced a new 2.1 billion dollar investment that now brings the updated total to about $6 billion dollars invested. And then we come crashing back down to earth, they say this factory will have six battery production lines for for hybrid vehicles and two for full BEVs.
We know that Toyota has learned you can't just slap a battery on an ice production line and expect good things to happen like we saw with the BZ4X. But the pressure's on because there are a lot of new EVs that are supposed to be coming to market by 2025 and Toyota cannot miss with this one. And yes, this Toyota concept has been out there floating around, but we don't know if this will be the one for the three row crossover that's coming to the States.
The EV universe on Twitter shared this PDF that apparently Toyota sends to its dealers as a way to help them push hybrids. They argue the amount of raw materials in one long range EV battery could instead make six plug-in hybrid EVs or 90 hybrid EVs. And then they say instead of replacing one internal combustion engine car, you can replace 90. And correct me if I'm wrong here, but I think these 90 in this illustration would still have an internal combustion engine. So what are they actually talking about?
I just wanted to share that because Martin Vika came in and dropped the hammer saying one less mining and extraction is needed in renewable economy due to no fossil fuel extraction to your car is fully charged every morning. So fast charging needs are limited yet widely available and three model three costs around $35.7,000 after the EV credit. How is this a real document?
Jim Farley staying in the news headlines now saying EVs may not reach cost parity with ICE vehicles until after 2030. EVs will continue to be more expensive than ICE counterparts until the second and third generation vehicles go into production after 2025. Between 2030 and 2035, much of the EV cost savings will come from dramatically lower labor content because the vehicles will be simpler to build with fewer parts and will be fitted with smaller batteries that use cheaper materials.
Farley also predicted lower distribution costs from selling EVs online and high revenue from software sales. Ford Software Services Business now has 600,000 subscribers, 200,000 are retail paying for blue crews, 400,000 are Ford Pro commercial customers. And talk about following in Tesla's footsteps, he said offering insurance could be a natural for Ford.
And when Jim was asked about industry wide consolidation over the next five years, he instead predicted an acceleration of cooperation, saying cooperation is essential, especially for companies that may not have the resources to build out a full EV ecosystem.
We get a quick glance of the upcoming Volvo EX-30 EV and we'll get the full unveil on June 7th and yes this is said to be available in the United States.
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