• On MovieTome: See the villain of IRON MAN 2!

Cleantech

Read all 'clean tech' posts in Cleantech
May 17, 2008 10:54 AM PDT

Elon Musk talks Tesla IPO, funding

by Stefanie Olsen
  • 9 comments
Share

Elon Musk, chairman of Tesla Motors

(Credit: Stefanie Olsen/CNET News.com)

Corrected, Sunday 9:30 a.m. This blog incorrectly described Musk's relationship with the company. He is chairman of Tesla Motors.

SANTA CLARA, Calif.--Elon Musk, the chairman and major funder of Tesla Motors, said here Saturday that he plans to take his electric sports car company public by the end of 2008.

Before the IPO, however, Musk said he will raise a series E round of financing to bring the company to profitability and begin production on Tesla's luxury electric sedan, codenamed White Star, by 2010. The goals will be reached by selling a roughly 10 percent stake in the company in the series E round, and through a Department of Energy loan of between $100 million and $200 million, Musk said.

A future IPO would raise on the order of $100 million, he said.

Musk, who was speaking here at the TieCon conference ("Tie" is short for "The Indus Entrepreneur"), also said that he's considering how the company might allow customers of the $100,000-plus Tesla Roadster to invest before the IPO, similar to the auction-style offering that delivered Google to the public markets.

Tesla prototypes

Meet Tesla's first two prototypes, and click on the image to see more photos.

(Credit: Corinne Schulze/CNET Networks)

"We are trying to figure out if there's a way for Tesla customers to invest in that (series E) round...but we want to make sure we don't step on any legal landmines," said the 36-year-old Musk, dressed in his characteristic T-shirt (Solar City), jeans and cowboy boots.

Musk was here to give a keynote at the two-day conference, which drew as many as 4,000 attendees. During his interview on stage with Silicon Valley author Mike Malone, he talked about his three long-time passions: the Internet, renewable energy, and space exploration.

During the dot-com heyday, Musk of course founded two Internet companies--the most notable of which, PayPal, sold to eBay for $1.8 billion. Now, he owns two companies related to renewable energy, Solar City and Tesla Motors. And in space exploration, Musk runs SpaceX, a private rocketry company that has secured a contract with NASA to replace the space shuttle after 2010 in servicing the International Space Station.

Clearly a pioneer in these fields, Musk has bold predictions for these markets. One is that he will put a man on Mars by 2030. Though he admitted that might not come true by then.

He was more definitive about the other goals.

"Thirty years from now the majority of new cars will be pure electric, not hybrid," Musk said. On renewable energy: "We will derive more energy from solar than anything else in the United States."

Originally posted at Green Tech
September 26, 2007 9:56 AM PDT

The Wright way to the electric car

by Neal Dikeman
  • 3 comments
Share

As with most things, there is a right way and a wrong way to go about electric vehicles. Last Friday, Ian Wright and I spent a couple of hours around my conference table discussing our philosophies on electric cars. Wright knows something about this topic, as he was formerly an executive at EV start-up Tesla Motors, and is now the founder and CEO of Wrightspeed, a Silicon Valley-based start-up whose first car is going to be a high-performance electric supercar, price tag just shy of $200,000. And as it's electric, Wright expects it should out-start, outrun, out-turn, and generally outperform anything in its class.

The Wrightspeed X1 prototype.

(Credit: Michael Kanellos/CNET Networks)

Cleantech Blog has written extensively about EVs. I am known among my friends as being a real skeptic when it comes to EVs, but behind Wright's business plan he got my attention with two ideas that are worth repeating: payback and plug-ins.

First, Wright doesn't care about gas mileage per se; he cares about performance, power, and most importantly, payback. Focus on the vehicles actually burning the most gas, irrespective of fuel efficiency. That is, instead of making tiny, compact, fuel-efficient target cars more efficient with EV and hybrid technology--focus on the gas guzzlers. Wright's point is well taken. A small, fuel-efficient car that gets 35 mpg and drives a typical 12,500 miles per year only uses about 350 gallons per year. A large pickup truck that gets 12 miles to the gallon uses over 1,000 gallons for the same mileage--nearly 3 times as much. And if that truck is a work truck driven 25,000 miles per year, it would use over 2,000 gallons of fuel per year, nearly 6 times the little car. That truck owner may spend upwards of $50,000 in fuel over its life, where the commuter car owner may spend a small fraction of that.

When I asked him for comments on my example, Wright added: "The special case of congested city driving might be worth mentioning, since everyone thinks a lot of fuel is wasted there. But if you drive a Prius 10 hours per week in congested city traffic, it's only about 150 gallons per year! Not much point in trying to improve on the Prius for that use. (The arithmetic: Congested traffic is defined as 12 mph average; 10 hours per week would be 120 miles per week, or 6,240 miles per year. The Prius shines in this application, getting maybe 40 mpg, so 156 gallons per year.)"

Putting expensive hybrid and EV technology in the small car not only has a worse financial payback--compounding the perennial problem of EVs being too costly, but the same 20 percent efficiency improvement does very little to reduce overall fuel consumption for society compared to the same efficiency gains in a big truck that drives a heck of lot of miles.

So Wright asks, if we want to both find a way to save car owners money, and save the world--wouldn't we focus on applying technology to where the problem is the worst and the returns are the best?

When Wright looked at the automotive landscape and asked the question, where is the most fuel being burned, and how do we reduce that with technology? The answer? Performance cars and big work trucks. Not surprisingly, these are his target markets.

And why are high-performance vehicles like sports cars and Ford F350s so fuel-inefficient anyway? Take this as an example answer. If you need a big truck to have lots of power for short periods of time (for instance, in towing), then the truck engine and systems have to be sized to deliver the maximum power. But anytime you're not using all that power (i.e., most of the time), the truck is usually running well below its optimum--and burning lots of fuel for no extra gain. It's the same rationale for a sports car designed to run optimally at 90 mph, which performs worse at the average driver's speed of 50 mph to 60 mph.

Wright's more detailed explanation to me put it very elegantly: "Roughly speaking gasoline engines are most efficient at wide open throttle and the rpm that gives max torque. If you try to operate a supercar at wide open throttle, it will be doing 200 mph, and of course you'll be losing most of the energy to aero drag. The engine will be operating efficiently...but if you operate the car down where aero drag is reasonable--50 mph--then the engine will be operating at a few percent of rated power, and very inefficient. Why is it inefficient? The simple answer is that since the throttle is almost closed, there is almost a vacuum in the intake manifold, and the effective compression ratio is very low. You are trying to compress a vacuum. Engine efficiency is very dependent on compression ratio.

"Eighty years ago, there were cars that could transport a family of four at 50 mpg. The Austin 7 comes to mind. Engine technology has improved dramatically since the '30s, yet the best modern cars don't do any better than the Austin 7. Why is that? One big reason is that the Austin 7 had, well, 7 horsepower (actually about 10 hp--the "7" was "RAC hp"). So it was working hard most of the time. The family car that my wife drives makes 250 hp, and that's just an average family car these days.

The X1's license plate, which makes the car street-legal in California, indicates how it compares in energy consumption with a regular car.

(Credit: Michael Kanellos/CNET News.com)

"So if you displace the Prius with an EV, you can get maybe a 2x efficiency gain. But if you displace a high-performance vehicle that operates most of the time at low power settings, you can get a 10x efficiency gain. That's the main reason that 18 wheelers aren't a good target. They have powerful engines, but their power/weight ratio is very low (when fully loaded) and the engines work pretty hard. So in fuel per pound mile, they are pretty good already."

To deal with this issue, Wright isn't all about the all electric. He's pushing plug-in electric hybrids, PHEVs, aka gridable hybrids. Electric motors powered off of batteries charged from the wall or with an onboard diesel generator. The generator also acts as a booster for those times when extra power is required. Hybrids are really good at solving these power versus efficiency problems, since you can essentially design a system that can optimize for either performance or efficiency much easier than a straight gas or electric engine could.

Wright's vision also addresses one of the long-running Achilles' heels of electric cars--the lack of fueling infrastructure. Regardless of your feelings on the matter, it's generally bad business to try to bet on an expensive infrastructure rollout. And if it means slower and lower uptake of fuel-efficient vehicles, then calling for infrastructure change that's not going to happen is bad for the environment, too.

That's why I've been such a big fan of plug-in hybrids. We can have our cake and eat it too. It's all about payback and plug-ins. And it's good to see electric car gurus finally getting this message.

September 17, 2007 10:52 AM PDT

In the real world, solar often gets barely a passing grade

by Neal Dikeman
  • 1 comment
Share

I'm a big fan of solar power. But as with anything, I like to know exactly what I'm getting. One of the big unspoken issues in the solar sector is the difference between the rated or estimated potential output of a solar system--and the actual production of kilowatt-hours. A range of factors from the margin of error in the modules, to temperature, dust and losses from wiring, conversion to AC power and any batteries all can contribute to as much as 30 percent lower actual power production--even in the first year.

Compounding this problem in my mind is that in California only about a third to half of our solar installations are actually independently monitored, according to one of my friends at Fat Spaniel, one of the leading monitors of solar systems.

The California Energy Commission did some good thumbnail analysis of solar in the real world several years ago.

Here's the punch line from their analysis:

"So the '100-watt module' output, reduced by production tolerance, heat, dust, wiring, AC conversion and other losses will translate into about 68 watts of AC power delivered to the house panel during the middle of a clear day (100 watts x 0.95 x 0.89 x 0.93 x 0.95 x 0.90 = 68 watts)." From A Guide to Photovoltaic System Design and Installation (PDF) by the California Energy Commission. If you are interested in solar, you need to read their report.

But this 68 watts is only part of the story. If you have battery storage on the system they say it could reduce the power another 6-10 percent. They then stated that poor installation layout problems--including shading can take an additional toll. Another big issue is the angle of the roof and the direction it faces (in California, where your roof faces can affect the power output up to another 15 percent for many roofs). And interesting enough, for all the talk about making windows out of solar in what is typically described as Building Integrated Photovoltaics (BIPV), a vertical installation can reduce the power output up to about half all by itself!

Their bottom line: if the system is perfectly installed under perfect conditions the best case scenario for San Francisco would be 1,724 kwh, or electricity per year for each kilowatt installed and for Los Angeles would be about 1,758. But that's before all the "real-world" adjustments. When you make all those real-world adjustments--take another 25-30 percent or more off the top, even for a well designed system. This fits with our best San Francisco benchmark, our major 675 kW rooftop solar facility in the San Francisco at Moscone Center, which produces around 1,200 kilowatt-hours per year per rated kilowatt installed.

So when it comes to solar, let's make the right choice for solar power, but make it with our eyes open to the real world.

  • prev
  • 1
  • next
advertisement

The yogurt makers of tech: Gadgets to avoid

Don't buy these one-trick ponies--unless you like gizmos that gather dust.

Google wants to unclog Net's DNS plumbing

The Net giant, ever eager for a faster Internet, debuts its Google Public DNS service. With it, Google could become even more central to the Net.

About Cleantech

Neal Dikeman is a founding Partner at Jane Capital Partners LLC, advising the technology and venture arms of multi-national energy companies in cleantech. While at Jane Capital, he has cofounded superconducting technology company SC Power Systems, Inc. (now Zenergy Power plc), and wireless technology startup WaiterPad POS Systems, and he is currently involved in launching a new venture in carbon credits. The Cleantech Blog includes posts by Neal and other authors about biofuels, solar, and global warming.


Add this feed to your online news reader

Cleantech topics

Blogroll

Most Discussed



Inside CNET News

Scroll Left Scroll Right