AD #3126 – Tesla Reports Record Profits; Hyundai Teams w/ Corning on AR HUDs; Chip Shortage Shows Signs of Easing

This is Autoline Daily, the show dedicated to enthusiasts of the global automotive industry.

TESLA REPORTS RECORD PROFITS
Tesla achieved a major milestone in the second quarter, blowing past Wall Street expectations and reporting record profits. It sold over 200,000 cars, raked in nearly $12 billion in revenue, and posted a GAAP net profit of over $1 billion. It posted an impressive operating margin of 11% and reported operating cash flow of over $2 billion. Those are very impressive numbers. In previous quarters the company was criticized for needing to sell regulatory credits to achieve a net profit. Not this time. Tesla would have been solidly profitable even without the $354 million it got from selling credits. And the numbers should only get better next year. With new plants coming on stream in Berlin and Austin, we think Tesla could possibly double its revenue and profits by the end of 2022.

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Tesla Q2 Earnings 2021
Sales	201,304
Revenue	$11.9 Billion
Net Profit	$1.1 Billion

SEVERAL TESLA PROJECTS DELAYED
Tesla also updated the status of several projects in its second quarter earnings. Regarding its more powerful 4680 battery cells, it says it’s made a lot of progress in developing them but has a lot of work to do before they’re ready for volume production. According to Electrek, the 4680 cells are expected to be used in its semi-truck and Model Y, produced at its Gigafactory’s in Austin and Berlin. Speaking of the semi-truck, Tesla said its delaying its launch until 2022, due to battery cell constraints and “global supply chain challenges.” The company didn’t clarify but perhaps that’s referring to the chip shortage. The semi was originally supposed to be available in 2019. And it looks like the Cybertruck will be delayed as well. Tesla was asked about it during a conference call for its Q2 earnings and while it didn’t say it was delayed, it also couldn’t confirm if it will go into production this year, which was the plan. Tesla says it will start producing the Cybertruck at its factory in Texas after Model Y production is up and running.

HYUNDAI TEAMS WITH CORNING FOR AR HUD
One of the newest technologies we’re hearing automakers brag about coming into their vehicles is head-up displays with augmented reality. And Hyundai Mobis, the parts and service division of the Hyundai Group, announced it’s partnered with Corning Incorporated to bring AR HUDs into the Group’s vehicles, starting with the IONIQ 5 that debuted earlier this year. The system uses curved mirrors from Corning to display dynamic information to the driver on the windshield, which looks like it’s 7.5 meters or about 24 feet in front of the vehicle. Compared to traditional HUDs, the AR version has a larger display area and a projection distance that is 5 times greater. Last year about 5 million vehicles were sold with a head-up display and that number is expected to double by 2025.

BAIDU OPENS NEW ROBOBUS SERVICE IN CHINA
Bloomberg reports it expects autonomous vehicles to account for 10% of all kilometers driven by passenger cars around the globe by 2040 and that China’s AV fleet will easily surpass the U.S., the current leader in the AV market. Baidu looks like it will be one of the major players in China. As we’ve reported recently it expanded its Apollo Robotaxi service to several big cities in China and it’s also launching its Apollo Robobus service in Chongqing. There’s 4 stops where people can board and like the taxi, a seat on the bus can be reserved through a few available smartphone apps. The bus uses 4 lidar, 2 radar and 7 camera units to navigate the streets, but there’s also a safety driver to take over if need be as well as a bus conductor who can help explain the technology. And remember these services might not be limited to China. Baidu says it’s tested extensively in the U.S. too.

TOYOTA REVEALS MORE FEATURES OF ALL-NEW TUNDRA
Toyota is revealing some of the tech and convenience features that will be available on the all-new Tundra. It’s going to have a large glass roof, more off-road capability, inductive phone charging, patterns built into the perforated section of some leather seats and possibly a hybrid powertrain. But we’ll learn more when the truck debuts sometime this fall.

MERCEDES TESTING ELECTRIC GARBAGE TRUCK
Mercedes is sharing progress on the development of the electric version of its Econic truck, which is mainly used as a garbage truck. Its architecture is based on the eActros and is powered by the same drive unit, which consists of an electric axle with two integrated electric motors and a two-speed transmission. It’s also equipped with three battery packs with 105 kWh of power. The eEconic is still going through testing, with engineers currently focusing on its safety, performance and durability. The company also needs to test the battery and its powertrain in summer and winter conditions. Once its completed those tests, it will let customers test it in the real-world. Mercedes plans to start volume production of the eEconic in the second half of 2022.

CHIP SHORTAGE SHOWING SIGNS OF RECOVERY
While the auto industry is going through the worst phase of the chip shortage, there are signs its starting to ease. Last week, Reuters reported supplies could start to improve soon thanks to Taiwanese semiconductor companies boosting production in China. And now the U.S. Secretary of Commerce, Gina Raimondo, says she’s seeing a gradual increase in chip supply for automakers after holding meetings with chip producers and OEMs to help ease any mistrust between the two sides. While its good news, automakers still aren’t out of the woods yet and are still curbing production to deal with the shortage.

That brings us to the end of today’s show. Thanks for watching.