Technology
Volvo autonomous cars to hit the market in 2017
Volvo autonomous cars might show up on the market sooner than anyone would have thought. We’ve seen these autonomous cars in action at the CES 2015 conference and were impressed by what they can do, although there are still improvements to be made. Now, it seems the automaker is speeding up their plans and they say that the Volvo autonomous car will go on sale as early as 2017. These vehicles have been dubbed the Volvo Drive Me cars, which is a cute name in my opinion, although it doesn’t really reflect the self-driving nature of the vehicles, rather the pull it has on people to actually drive it. Anyway, we’re glad to hear that the company will actually start selling these cars in less than two years time.
According to Cnet, the Swedish car maker plans to have 100 Volvo autonomous car units on the roads by the time we start celebrating New Years Eve in 2017. That’s quite a goal the company has set and we’re wondering if they are going to be able to keep that promise, as there is a lot involved in developing the systems controlling self-driving cars. The company has offered up a few disclaimers about the cars, though, stating that they will only be available in Gothenberg, Sweden for starters. Moreover, Volvo autonomous cars will still require moderate user (or driver) interaction, as they can’t actually drive themselves onto the freeways (which are great in Sweden). If weather conditions aren’t optimal, the self-driving car will also ask the driver to intervene. The good news is that it you’re on the freeway, stuck in some sort of traffic jam, you will be able to sit back and relax because the Volvo autonomous car will take over. I wonder if it will use its artificial voice to shout at slow-pokes driving in the fast lane. Hah, that’s a very funny thought.
The principle behind Volvo’s autonomous cars hasn’t changed much compared to their standard models, as most of the technology and sensors implemented into the car are already readily available in their other models, too. The computers within the self-driving cars are what sets these vehicles apart from the rest. And a few extra-sensors that function as the eyes and fingers of the Volvo autonomous car. These sensors encompass a sonar, radar, laser scanners and a 360 degree camera-setup that will allow the car to correctly map and understand its surroundings. The computers act as aggregators of all the information gathered by the cameras and sensors and corroborate the data with traffic control information obtained wirelessly by the car itself.
The interesting part of the Volvo autonomous car is that it seems to be hooked up to Gothenberg in a way in which it can receive information directly from official sources. IF that doesn’t sound interesting, you should know that Gothenberg will be able to monitor these self-driving vehicles while they’re cruising the city and actually revoke the car’s “rights”. That means that in case of emergency or inappropriate driving conditions, Gothenberg will alert the driver that the autonomous vehicle is no longer fit for driving and that the human should take over. If they don’t take over (maybe busy on the back seat?), then the vehicle will pull itself over to the side of the road until the owner can take control. That’s funny, interesting and a very nice solution to the problem of unforeseen circumstances intervening with the autonomous car’s ability to navigate.
According to Cnet, Volvo is planning on enacting contracts involving their self-driving cars with other cities in Sweden, before expanding even more. At least Gothenberg will most likely be the first city in the world to have 100 self-driving cars linked to the city’s cyber infrastructure. As Google, and reportedly Apple, are all working on their own electric and autonomous vehicles, Volvo seems to be most ahead when it comes to progress. We’re curious to see what kind of software implementation the Drive Me program will have and how it will evolve over time. At least we know that by the end of 2017, Gothenberg should have a sizable amount of Volvo autonomous car units on the streets.
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Elon Musk warned Wednesday about the approaching Cybertruck, which may sound familiar to those who followed the Model 3 “production hell” era.
The summary? Scaling Cybertruck production is difficult and will take time to be profitable. Musk estimated that the Cybertruck will not be cash flow positive for 18 months. Musk predicted Tesla will produce “roughly” 250,000 Cybertrucks a year by 2025 after overcoming these production issues.
Cybertruck pilot production has begun at the company’s Giga Texas factory near Austin. Wednesday, Musk said the first Cybertrucks will be delivered at a factory event on November 30.
He also said the 2019 Cybertruck has over 1 million refundable reservations.
“I do want to emphasize that there will be enormous challenges in reaching volume production with the Cybertruck and then making the Cybertruck cashflow positive — this is this is simply normal,” Musk said on Wednesday’s third-quarter earnings call, adding that he thinks this could be the company’s best product. When you have a product with a lot of new technology or a brand new vehicle program, especially one as different and advanced as the Cybertruck, you will have problems proportional to how many new things you’re trying to solve at scale.
He added, “It is going to require immense work to reach volume production, be cashflow positive, at a price that people can afford.”
Tesla’s earnings were hurt by the Cybertruck. The company reported Wednesday net income of $1.85 billion in the third quarter, down 44% from the same year-ago period due to shrinking margins from repeated EV price cuts and increased operating expenses on Cybertruck, AI, and other R&D programs. Tesla spent $2.4 billion in the third quarter, up 43% from last year.
Tesla faces Cybertruck profitability delays.
The company spends more on footprint, people, and programs like Cybertruck. Despite being North America’s largest EV seller, the company’s price cuts have cut its margins. Tesla and other automakers may have to keep lowering prices due to softening EV demand, according to industry watchers.
There are no new Tesla models expected soon, which could lower profits.
While its free cash flow fell to $848 million in the third quarter, Tesla has $26 billion in cash, cash equivalents, and investments, giving it room to maneuver. Whether shareholders will wait is unknown.
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