Tesla Model 3 helping EVs go mainstream, Subscription services come to ride hailing

EVs going mainstream: Along with plug-in electric vehicles making it to the one million mark for U.S. auto sales in October, it was historic and interesting to see the Tesla Model 3 continue to make the Top 10 in America’s light-duty car segment — in October coming in at #6 behind the Hyundai Elantra and before the Nissan Sentra. In an interview this week with Recode, CEO Elon Musk said that 5,000 cars produced a week at its Fremont, Calif. plant has become the norm, and that’s being raised to 6,000 to 7,000 units a week. To hit about 6,500 a week “it would have to stress people out and do tons of overtime,” he said.

How long for AVs to go mainstream:  It was a milestone to see California grant Waymo the right to test self-driving vehicles without human safety drivers. Waymo has been putting in the hours and reporting the data — more than 10 million miles of real-world public-road testing, and seven billion miles of simulation testing. But it’s still in the testing phase in U.S. states allowing for it, and a few other countries overseas. We’re probably looking at a decade from now before they’re commonly seen on roadways. Perhaps trucking will see it first, with the lack of available commercial-grade drivers and accidents caused by those not getting enough sleep. Cargo carriers may have to come up with their own insurance for their fleets, as insurance companies are making it difficult to find the right coverage.

Subscription services comes to ride-hailing:  Uber is following Lyft — and several automakers — by now offering customers a subscription service, called Ride Pass. Users are guaranteed set prices for a monthly fee. That comes out to $24.99 in Los Angeles, and $14.99 in Austin, Orlando, Denver, and Miami. Subscribers pay fares based on historical data and won’t change based on demand or other circumstance, such as the costly “surge pricing” during peak hours. Lyft launched its All-Access Plan last month. The service costs $299 per month and gives users 30 rides worth up to $15 each. If a ride costs more than $15, the user pays the difference. Automakers have been offering their subscription services in recent years — with BMW, Cadillac, Mercedes-Benz, Porsche, and Volvo, tapping into the car financing model where customers who might have been reluctant to come over to the brand are trying it out; with the hope they’ll be loyal brand buyers and tap into their dealer networks for service and maintenance, shared ride services, etc.

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