By Karan Singh
Tesla has issued two voluntary recalls for the Cybertruck, both requiring physical servicing.
Windshield wiper motor recall
The first recall concerns the windshield wiper motor, which has a manufacturing defect. Approximately 2% of trucks delivered (11,688 vehicles) have a defective gate drive component and will need to be replaced. The complete assembly will be replaced.
We expect that this replacement can be repaired by a mobile service technician, as rebuilding the engine assembly should be achievable by one person per the Cybertruck service manual.
The NHTSA recall can be viewed here.
Sail Trim Recall
The Cybertruck’s unique sails (the triangular panel that connects the top of the truck to the rear of the bed) have uniquely attached trim pieces, and some of them are believed to be defective. Tesla also issued a recall for these sail trim pieces, which can come loose at high speeds due to wind catching the leading edge of the trim piece and lifting it.
Tesla will replace or rework the cosmetic trim along the exterior of the sails, to ensure sufficient adhesion. This will include the application of a new adhesion promoter and pressure sensitive adhesive tape.
We expect this replacement can also be repaired by a mobile service technician, as some Cybertruck on X owners have already had the same problem fixed by mobile service.
This NHTSA recall can be viewed here.
By Karan Singh
According to recent publications from Bloomberg and Businesswire, Volkswagen is investing $5 billion to form a joint venture with Rivian. Rivian stock also rose 50% in the hours following the announcement.
A bet of 5 billion dollars
Of the $5 billion invested, $1 billion will be invested immediately in Rivian, and the remaining $4 billion will be invested over time. This first billion dollars will be invested in the company by the end of 2024, pending regulatory approval. The remaining $4 billion could wait a long time, pending the formation of the joint venture in the fourth financial quarter of 2024.
The new joint venture will be “equally controlled and owned.” We find ourselves at a critical time for Rivian, which recently launched its R2 and R3 platforms, while bringing a much-welcomed overhaul of the R1 platform.
Oliver Blume, CEO of Volkswagen:
“OUR Customers benefit from the targeted partnership with Rivian to create a cutting-edge technology architecture. Through our cooperation, we will bring the best solutions to our vehicles faster and at lower cost. We also act in the best interest of our strong brands, which will inspire with their iconic products. The partnership fits perfectly with our existing software strategy, our products and our partnerships. We strengthen our technological profile and our competitiveness.»
Joint venture
Part of the joint venture will be to help Rivian reduce the cost per vehicle, while Rivian will help provide Volkswagen with its new zonal control technology, which optimizes and shortens circuit journeys in a vehicle.
Rivian platforms are also expected to serve as the basis for Volkswagen’s future electric vehicles. Rivian will retain its intellectual property rights throughout the joint venture, providing a continued revenue stream for the company as it settles into a new and faster pace of production.
Rivian CEO RJ Scaringe said:
“We are very pleased to partner with the Volkswagen Group. Since Rivian’s beginnings, we have focused on developing highly differentiated technologies, and it is exciting that one of the world’s largest and most respected automakers has recognized this. Not only is this partnership expected to bring our software and associated zonal architecture to an even broader market through Volkswagen Group’s global reach, but this partnership is also expected to help secure our capital requirements for substantial growth. Rivian was created to help the world transition away from fossil fuels through compelling products and services, and this partnership fits perfectly with that mission.»
Speculation on the battery project
There is another opportunity for both companies, as Volkswagen plans to establish a 370-acre battery “gigafactory” in Ontario, Canada. This could be an opportunity for Rivian and Volkswagen to continue their cooperation on battery technology, since Volkswagen intends to use Rivian platforms for their vehicles.
Volkswagen only recently started construction work at the site and expects the factory to produce around 90 GWh of batteries per year, enough for around 1 million electric vehicles per year. Volkswagen and the Ontario government expect the factory to be fully operational by 2027. We could expect batteries from this Ontario factory to end up in Rivian vehicles in the future!
By Karan Singh
Earlier this month, at the 2024 Shareholders’ Meeting, Elon Musk was convinced to agree to bring back FSD transfers for “one last quarter.” It looks like a 3-month period will begin today, according to Sawyer Merritt. User sb61g2 on Reddit has already started the transfer process. He already had an existing order, but was asked to place a new order so that it would fall within the allowed transfer window. After placing the order, he requested FSD transfer from his existing vehicle to his new one.
Availability of transfer window
The transfer period is only available for orders placed between June 24, 2024has August 31, 2024for people taking delivery of a new Model S, Model 3, Model does not apply to the Cybertruck.
What you get
Tesla has already presented this incentive as a demand lever, incentivizing previous owners who purchased FSD to transfer it to new vehicles.
This incentive allows buyers who purchased FSD, whether at the original price of $5,000, the updated $15,000, or the new price of $8,000 (FSD price history), to transfer it directly to a new Tesla purchase. The vehicle does not need to be trade-in for this to happen, but you can simply transfer the FSD option from an existing vehicle to your new car. The old vehicle will no longer have access to FSD, but you can still take out FSD on the old vehicle or purchase it later if you change your mind.
Offer is also stackable with other incentives, from inventory price adjustments to demo models to electric vehicle rebates in North America, including the $7,500 Federal Rebate $ available on certain vehicles.
You don’t need to trade in your Tesla
To activate your FSD transfer, you will need to contact your local Tesla delivery center via text and let them know that you want to transfer FSD, as this is currently not an option on Tesla’s site.
FSD final transfer offer?
This could be the last transfer period for FSD, as Elon Musk was very reluctant to revive it, citing declining margins on new vehicle sales. However, Musk said Tesla will offer additional free FSD trials again in the future. The FSD Transfer Offer is a great opportunity for HW3 vehicle owners to upgrade to HW4, in anticipation of the expected divergence from Tesla’s Hardware 4 or upcoming Hardware 5.0, which Tesla calls AI 5.