Archives for August, 2013

Gran Turismo 6 is Coming to PlayStation 3, Demo Announced – Rumor Central

Gran Turismo 6 is Coming to PlayStation 3, Demo Announced

Gran Turismo 6 is coming. In celebration of the franchise’s 15th anniversary, Sony today announced its signature racing game Gran Turismo 6 is in development, and will arrive on shelves this holiday season. A playable demo is scheduled to arrive in July.

Sony touts Gran Turismo 6 as bringing new levels of realism and authenticity to the sim racing genre. GT6 boasts an entirely new game and physics engine, the latter of which includes a new aerodynamic model, a new tire model, and a new suspension and kinematics model. Like its rivals at Forza 4 (which worked with Pirelli to help with its tire models), the GT6 team joined with Yokohama and KW Automotive to help develop a more realistic experience in the latest Gran Turismo game.

Gran Turismo 6 will reportedly be released this holiday season, though it’s probably worth noting that GT6′s predecessor, Gran Turismo 5, was the subject of multiple delays. Still, there are a few reasons to remain optimistic. For starters, all of the cars and tracks in GT5 will be carried over to GT6, which will include 1200 cars at launch (though as Motor Trend’s Kirill Ougarov joked on Twitter, “1100 of them will be Skylines”).  The newest Gran Turismo will also include seven new tracks (including Silverstone), bringing the track total to 33. There will be 71 different track layouts in the game, with 19 of them new. If those grow old, the course maker function has been improved.

With the announcement of GT6, Sony is planning on continuing its collaboration with Nissan’s GT Academy, the program that turns Gran Turismo gamers into real-life racers. GT Academy returns this July, with the release of the GT6 Silverstone demo.

Speaking of the demo, Sony released a short teaser of the killer graphics and cars we can expect to see in GT6, including the 1986 Audi Quattro rally car, and the 2012 Tesla Model S Signature Performance.

Here are the cars you’ll be able to drive in the July demo. Bold text indicates the car is new to the Gran Turismo series:

-          1991 Acura NSX

-          2011 Alfa Romeo TZ3 Stradale

-          1968 Alpine a110 1600S

-          1986 Audi Quattro S1 rally car

-          2009 Ferrari 458 Italia

-          1971 Ferrari Dino 246 GT

-          2006 Ford GT

-          2012 KTM X-Bow R

-          1974 Lamborghini Countach LP400

-          2007 Light Car Company Rocket

-          2010 McLaren MP4-12C

-          2011 Mercedes-Benz SLS AMG GT3

-          2008 Nissan 370Z (GT Academy Version)

-          2008 Nissan 370Z Tuned Car (GT Academy Version)

-          2012 Nissan GT-R Black Edition (GT Academy Version)

-          Nissan GT-R Nismo GT3 N24 Shulze Motorsport

-          Nissan Leaf G (GT Academy Version)

-          2012 Tesla Model S Signature Performance

-          2012 Toyota 86 GT

Source: Gran-Turismo.com













By Christian Seabaugh

Switzer Tunes BMW M5 to Nearly 700 HP for $6995

Switzer Tunes BMW M5 to Nearly 700 HP for $6995

Attention F10 BMW M5 owners: feeling a bit inadequate now that an electric-powered new kid on the block can beat you from 0-60 mph? Then Switzer might have a remedy. With just a few tweaks, the Ohio-based tuner has boosted the M5’s power figures from the factory-rated 560 hp and 500 lb-ft of torque to nearly 700 hp and 640 lb-ft (at the crank). Switzer is calling it the “M5 BMW should have built!”

Switzer P700 BMW M5 side building 300x187 imageThe list of modifications is relatively short.  A new engine control unit squeezes more boost from the twin turbos in the M5’s 4.4-liter V-8. Next, a Switzer exhaust and high-flow air filter round off the P700 package. The tuner didn’t provide any acceleration times, but we’re guessing it should shave off a couple tenths from the 3.7-second 0-60 mph run we recently achieved in an M5 (with the seven-speed dual-clutch gearbox). Better yet, Switzer says the new exhaust provides an aural benefit, with just enough punch to enter the cabin naturally, which means owners could theoretically disconnect the artificial engine noise currently produced through the M5’s stereo speakers.  

The upgrade package is priced at $6995. Switzer will release more M5-specific items this summer, including wheels and carbon-nano brake pads. The P700 BMW M5 sounds promising and we’re eager to see how it performs against its German rivals and the surprisingly quick Tesla Model S.

Source: Switzer

By Erick Ayapana

Zero Race: Electric Car Race to Traverse the Globe in 80 Days

Zero Race: Electric Car Race to Traverse the Globe in 80 Days

The Zero Race, an appropriately named zero-emissions race designed to raise awareness about environmentally friendly vehicles, started its 18,000-mile, 80-day journey in Switzerland earlier this week.

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Zero Race began in Geneva, Switzerland, and the competitors — four small teams that specially designed their electric vehicles — will make their way through Berlin to Shanghai, China. After their trip to the Far East, they’ll resume the race in Vancouver, Canada, and then on to Cancun, Mexico, in time for the World Climate Change Conference that starts November 29.

Over the course of the next few months, the competitors will cover more than 18,000 miles and travel for more than 80 days. All four of the competing vehicles are powered by electricity acquired from renewable resources, such as wind or the sun. Each vehicle can achieve a minimum speed of 55 mph and travel 155 miles between charges. In this fashion, the teams will travel the world without the vehicles ever emitting a pollutant from exhaust or from an electrical source. However, as the vehicles need to be shipped across several oceans, the event won’t be completely emissions-free.

Although called a race, time is anything but the determining factor in who wins. The competitors are scored on their reliability during the race, energy efficiency, safety, performance, and design popularity as scored by spectators along the way. At the end of the race, the competitor with the highest score wins.

“Such a clean technology initiative underscores the importance of individual efforts in building a green, low-carbon future for the world,” said United Nations Environment Program executive director Achim Steiner.

The race reflects growing interest in low-emissions vehicles. This interest, along with government incentives and regulations, has pushed automotive manufacturers to investigate hybrid and electric vehicles, such as the upcoming Chevrolet Volt and Nissan Leaf. The small, startup automaker Tesla only builds electric vehicles, such as its Roadster and planned Model S sedan.

Head over to Zero Race’s Web site to view the competitors’ progress as they make their way around the world and look for the race to end at the World Climate Change Conference in November.

Source: Zero Race, Bloomberg

By Andrew Peterson

Tesla Fully Repays Government Loan Nine Years Early

Tesla Fully Repays Government Loan Nine Years Early

Not long after offering 2.7 million additional shares, Tesla has just announced that the company has fully repaid the Department of Energy loan that wasn’t due until late in 2022. The announcement follows a string of recent company updates, including how Tesla sells and warranties the Model S.

Tesla Model X Side Moving 2 300x187 imageTesla wired $451.8 million to fully repay the loan with interest, and in a release the automaker says it is the only American car company to have fully repaid the government. Then again, Tesla currently only offers one vehicle, the lauded Model S. The larger and delayed Model X (pictured at right) is set to arrive next year.

UPDATE: Tesla isn’t actually the only American automaker to pay back government loans. Chrysler points out that, about two years ago, it paid back government loans to the U.S. and Canadian governments in full. For another perspective on this issue, read this Forbes blog.

So far, Tesla has worked with Mercedes and Toyota, and offered the all-electric Lotus-based Roadster, a car the company says had a 30-percent gross margin. More recently, we’ve heard about the Model S’ improved financing terms as well as a resale guarantee and a lenient warranty update. Next week, Tesla will reveal details on a revised supercharger system. Company co-founder Elon Musk hinted at the announcement on Twitter, saying there may soon be a way to recharge a Model S throughout the country faster than you can fill a gas tank.

The Department of Energy loan fit into the Advanced Technology Vehicle Manufacturing program of which Fisker was also a part. On the original $451.8 million loan, Bloomberg notes that taxpayers will make at least $12 million from the deal. Paying off the loan early was made possible thanks to the roughly $1 billion raised in last week’s new common stock and convertible senior note offerings.

While reaching truly stable financial ground is still anything but a certainty for Tesla, it appears the company is on the right track.

Source: Tesla, Bloomberg

By Zach Gale

Tesla Model S reviews are in: it’s a bona fide, unbelievable smash hit

tesla model s white



At the big launch event Friday for the Tesla Model S, invited journalists were able to get just a few precious moments behind the wheel. The drives were far too short, everyone agreed (most were just 10 minutes long), but people made the best of it, including our companions over at Engadget, where Myriam Joire says, “you don’t have to be a car nut to appreciate all the innovation and technology that’s gone into Tesla’s sophomore vehicle.” She continues, “So what’s it like to drive the Model S? In a word: amazing. … The Model S is surprisingly nimble for such a large and heavy automobile, and it doesn’t sacrifice ride quality for the sake of dynamics – it handled rough roads with composure and just the right amount of stiffness.” Our favorite bit is this one: “Acceleration is where the Model S shines. The electric motor dishes out gobs of linear, head-snapping torque, quickly propelling you past the speed limit – you’ve been warned.”



We’re working on getting some real Autoblog seat time, but for now we look at other first impressions from around the internet, which are universally positive, something that’s darn hard to come by in this day and age:

  • Motor Trend calls it, “an out-of-this-world sedan that happens to be electric” and adds that, “after a walk through the factory, a visit to a dealer showroom, and an hour-and-a-half spent driving the car on a mix of roads, my eyes are wide and my jaw has dropped.”
  • CNet says that upon, “seeing a straight road ahead I … let the pedal meet the floor. The Model S felt like a freight train, with inexorable acceleration pushing forward without a break. There were no power peaks – it was all torque all the time.”
  • GigaOm says, “The low center of gravity, smooth ride, and lack of vibration were pretty amazing.”
  • Yahoo! News reports that, “the Tesla Model S successfully challenges a century of assumptions about what a great car can be” and that, “from behind the wheel of the Tesla Model S, you feel you’re driving the future, instead of burning increasingly limited gallons of the past.”
  • Our old friend Damon Lavrinc, now at Wired, says, “if our brief seat time is any indication, Tesla hasn’t just delivered a functional, all-electric sedan – it’s made a luxury EV that can outpace and outclass the stalwarts of the premium sports sedan segment, while changing the perceptions of electric mobility. It’s also a complete hoot to drive.”
  • USA Today makes it simple: “There’s no other way to put it: Tesla’s Model S luxury sedan is spectacular.”

What you read there, in other words, is a paradigm being shifted. We’ve got some video reviews below.

Related GalleryTesla Model S: Quick Spin













By Sebastian Blanco

MT Poll: Which 2013 Motor Trend Car of the Year Contender Will Win COTY?

MT Poll: Which 2013 Motor Trend Car of the Year Contender Will Win COTY?

It’s Car of the Year time again! Over the past two weeks we’ve been teasing new 2013 Car of the Year contenders every day. With the 2013 Motor Trend Car of the Year announcement coming Monday, November 12 at 6:30 p.m. EST, we thought it’d be fun to ask which contender you think will take home the golden calipers.

But since we get this question at each Of The Year event, we’d like to provide a friendly reminder that Car of the Year is only open to new or significantly updated vehicles that cost $120,000 or less. That means that the 2013 Ford Fusion is eligible for Car of the Year because it’s a full update, while the 2013 Ford Focus ST isn’t, since only one trim level is new, not the whole car. With that cleared up, let’s take a look at the contenders.

2013 Acura ILX front motion view 300x187 imageAcura ILX – We Like: Available swift-shifting manual and Honda Civic Si drivetrain. We Don’t Like: Questionable value in certain trims.

BMW 3 Series – We Like: The developed and mature feel of the car; “amazing” handling. We Don’t Like: A bit softer than previous 3 Series cars

Cadillac ATS – We Like: Excellent steering, firm chassis and impressive dynamics. We Don’t Like: Balky manual transmission.

Cadillac XTS – We Like: Exceptionally smooth ride; rock solid at triple-digit speeds. We Don’t Like: 3.6-liter V-6 could use a bit more refinement.

Chevrolet Malibu – We Like: We generally liked the Malibu’s interior design. We Don’t Like: We found the backseat too cramped for adults.

2013 Chevrolet Spark front side motion view4 300x187 imageChevrolet Spark – We Like: Surprisingly fun to toss around; well-appointed interior. We Don’t Like: Low handling limits.

Coda EV Sedan – We Like: It’s a cheap and cheerful electric car, with a long range. We Don’t Like: Subpar interior, bland design.

Dodge Dart – We Like: Pleasant styling, excellent value. We Don’t Like: “Dead” steering feel.

Ford C-Max—We Like: Ease of electric-only driving, the fact that it’s a fun-to-drive hybrid. We Don’t Like: Tires lack the grip to live up to the chassis.

Ford Fusion – We Like: Excellent steering feedback on 1.6 EcoBoost model; vast array of engine, transmission, and drivetrain options. We Don’t Like: Not as fun to drive as the outgoing Fusion.

2013 Honda Accord coupe front motion view 300x187 imageHonda Accord – We Like: Crisp handling, and buttoned-down interior. We Don’t Like: Surge-y, on-off throttle response at low speed with the CVT.

Hyundai Azera – We Like: Comfortable, roomy cabin with huge trunk. We Don’t Like: Polarizing styling.

Lexus ES – We Like: High-quality interior and roomy backseat. We Don’t Like: Hybrid suffered from a sloppy transition between regenerative and mechanical braking.

Lexus GS – We Like: Whole lineup was fun to drive – even the Hybrid; high-caliber interior design and materials. We Don’t Like: The haptic, mouse-like controller that operates the infotainment system.

2013 Lexus LS front motion view 300x187 imageLexus LS – We Like: Comfortable and quiet ride; V-8 grunt. We Don’t Like: Not as much of a game-changer as the original LS.

Mercedes-Benz SL-Class – We Like: An excellent Grand Tourer; felt unflappable at high speeds. We Don’t Like: More horsepower than handling prowess.

Nissan Altima – We Like: Beautiful interior and comfortable seats. We Don’t Like: Could benefit from retuned steering.

Nissan Sentra – We Like: Baby Altima styling, and genuinely roomy interior. We Don’t Like: CVT and engine moan.

Porsche 911 – We Like: An incredibly usable supercar. We Don’t Like: Too obvious that Porsche spent more time developing the PDK than the manual.

2013 Porsche Boxster front motion view21 300x187 imagePorsche Boxster – We Like: Exceptional build quality, beautiful balance. We Don’t Like: Poor value.

Scion FR-S – We Like: Incredibly fun to drive and an excellent value. We Don’t Like: Cheap-feeling interior.

Subaru BRZ – We Like: Terrific chassis; superb balance, and steering. We Don’t Like: We want more power.

Tesla Model S – We Like: Long range combined with excellent performance. We Don’t Like: Styling a bit safe.

Toyota Avalon – We Like: Great ride and handling; nicely appointed interior. We Don’t Like: A face only a mother could love.

2013 Toyota Prius C front side view1 300x187 imageToyota Prius C – We Like: Cheap and cheerful appeal. We Don’t Like: This car is no fun.

Which contender do you think will take home the Golden Calipers as our 2013 Motor Trend Car of the Year? Sound off in the poll and in the comments below.

To compete for the 2013 Motor Trend Car of the Year title, contenders must be all new or significantly revised 2013-model-year cars or 2012-model-year cars that went on sale too late for 2012 COTY consideration. All eligible vehicles are invited to compete. Check back to MotorTrend.com on November 12 at 3:30 p.m. PST / 6:30 p.m. EST to discover what will become the 2013 Motor Trend Car of the Year!

By Christian Seabaugh

Tesla Model X Delayed Until "Late 2014" – Rumor Central

Tesla Model X Delayed Until “Late 2014″

The Tesla Model X electric crossover won’t start production until late 2014, a major delay as the car was slated to go into production this year. Tesla had initially promised the Model X would debut in late 2013 with “volume” production beginning in earnest by 2014, but now it appears the Tesla factory won’t even start building the crossover until the end of next year.

The Tesla Model X is a three-row crossover with upward-opening “Falcon Wing” doors that is based on the company’s Model S all-electric sedan. It was originally slated to go on sale in limited numbers by the end of 2013, with production ramping up significantly by 2014. In fact, the automaker’s website still indicates that, “Deliveries begin 2014.”

Tesla appears to have quietly delayed the introduction of the Model X by about a year. The company’s latest SEC Filing, which also revealed Tesla will repay government loans early, confirmed the new production date. “We currently plan to start production of Model X in late 2014,” the filing reads. “We currently intend to target an annual production rate of approximately 10,000-15,000 cars per year.”

That means the car probably wouldn’t reach more than a handful of customers until early 2015. The company previously reported it would have total production capacity of 20,000 units in 2013.

Tesla warned in its filing that development of the Model X hasn’t been completed, signaling that production couldn’t start for some time. “The Model X design is not yet finalized and we may be unable to use the adaptable Model S platform to the extent we currently intend,” the filing reads.”We may experience… delays, cost overruns and adverse publicity… We are in the initial design and development stages of Model X. Furthermore, we have not yet evaluated, qualified or selected all of our suppliers for the planned production of Model X.”

A Tesla representative told us, “Tesla has been intensely focused on Model S, its production and product enhancements and believe there is increased volume potential for Model S.  As a result, we are pushing back the development and timing of Model X to 2014. ”

Source: Tesla



By Jake Holmes

The Top Five Cars We Can’t Wait to Drive in 2012

The Top Five Cars We Can’t Wait to Drive in 2012

The New Year promises to bring lots of automotive cheer and new sheet metal to Motor Trend’s garage. Below is a list of more than a dozen new vehicles slated to hit the market in 2012, which should be more than enough to keep us busy 2013 Subaru BRZ With Prototypes 300x187 imagewith drives, tests, and reviews. The Motor Trend staff was tasked with the difficult job of picking their top three cars from the list below that they can’t wait to drive in 2012, and from there we tallied up the Top 5 vote getters. Do you agree with the winners? Sound off below.

2012 BMW M5
2013 Cadillac ATS
2013 Chevy Sonic RS
2013 Dodge Dart
2013 Ford Focus ST
2013 Ford Shelby GT500
2013 Mini Countryman JCW
2013 Porsche 911 Turbo
2013 SRT Viper
2013 Subaru BRZ/ Scion FR-S
2013 Subaru WRX/STI
2013 Tesla Model S
2013 Volkswagen Golf R

1. 2013 Subaru BRZ and Scion FR-S

This shouldn’t come as a surprise. Toyota and Subaru have been hard at work jointly developing an affordable and fun-to-drive, rear-wheel drive sports car for the masses. And if you’ve been visiting www.motortrend.com, you’ve probably noticed both companies teasing us with sketches, specs, show cars, camouflaged cars, and on and on and on for years now. Well, 2012 is the year to find out if all the hard work and teasing has been worth the wait. And from our initial drives thus far, the BRZ and FR-S look very promising.

First Drive: 2013 Scion FR-S
First Drive: 2013 Subaru BRZ

2. 2013 SRT Viper

After a years-long hiatus, the Viper is coming back with its snake eyes set on the Corvette and Porsche 911. Expect many changes to the iconic American sports car, especially with Fiat now at the helm of Chrysler. We’ve heard the Italians, who know a little bit about sports cars, have been involved in the new Viper’s development. In addition, the 2013 Viper will be sold under the newly formed SRT brand, s0 it’s more critical than ever that the new Viper will be a world-class performer both on and off the track. As MT’s digital director Mike Floyd states, the 2013 SRT Viper is the “halo car SRT/Chrysler desperately needs if it’s going to be taken seriously as a true global performance brand.” And just to reiterate, “the pressure on this one is massive,” says editor-in-chief Ed Loh. “Looking forward to the return of the beast.”

3. Tied: 2012 BMW M5 and 2013 Cadillac ATS

2012 BMW M5BMW M5 front bottom view 300x187 image
How will a turbocharged, eight-cylinder M5 perform on the road and on the track? That’s exactly what MT staffers are eager to find out. Road test editor Scott Mortara was among the first bunch of lucky journalists to drive the new M5 and he seemed to like it. “Without a doubt, the new 2012 BMW M5 is better than its predecessor in every way,” Mortara wrote in his first drive review of the 2012 M5. “Some say they’ll miss the high-rpm V-10 screaming under the hood. Not me. I’ll take this subtle torque monster any day. Much like a purveyor of fine spirits, when an automaker starts with quality components, and adds time, insight, and desire, it’s possible to create something amazing — a vintage that can truly be savored. With the new M5, BMW has done just that.”

2013 Cadillac ATS
“Every few years some car maker declares they’ve cracked the 3 Series code,” said senior features editor Jonny Lieberman. “None succeed. However, Caddy actually went to Germany, Bimmer’s home turf. So, maybe.”2013 Cadillac ATS Autobahn1 300x187 image

Just maybe. So what is Lieberman talking about exactly? Well, as former editor-in-chief Angus MacKenzie adds, “the engineering team picked the delightful E46 3 Series as its dynamic benchmark for the new baby Caddy.”   And as we’ve seen from the countless videos Cadillac has produced, the development team has spent countless hours and laps around the famed Nurburgring for testing. Given what we’ve seen so far, it’s hard to imagine what else General Motors could’ve done to develop its new 3 Series fighter. MacKenzie continues, “I can’t wait to find out if Detroit can really out-BMW BMW.” Neither can we.

4. Three-Way Tie: Ford Focus ST, Volkswagen Golf R, and Tesla Model S

2013 Ford Focus ST
With past generations of the Focus, we Americans have always lamented that the sportiest Focus models over the years were sadly out of our reach, available only in Europe and elsewhere. That all changes with the 2013 Focus ST. The 2012 Ford Focus has proven itself as having good bones; with the additional performance of the ST model, Ford may again have a real hot hatch competitor in the U.S. — if it’s not priced out of the market. So what are we looking forward to exactly? Basically, it’s the 2.0-liter, 250-hp, turbocharged, Ecoboost four banger wrapped around sleek sheetmetal. “After years of watered-down, rental-fleet Foci, Ford finally brings us a real contender in the ST,” said news director Ed Sanchez. “The VW GTI and Mazdaspeed 3 will have to make room in the sandbox for the new kid from Dearborn.”

2012 Volkswagen Golf R2012 Volkswagen Golf R Front Three Quarters 300x187 image
We liked the first-gen Volkswagen R32, which was armed with the burbling 250-hp,VR6 engine and a manual transmission, and all-wheel-drive. The VR6 carried over in the second-gen R32, but it was only offered with the DSG transmission, which wasn’t a bad thing — unless you, like most of us in the office,  are diehard fans of the third pedal. The 2013 Golf R is coming to America in manual transmission-form only and will be powered by a new 2.0-liter, turbocharged four-cylinder making 260-hp, and fitted with VW’s 4Motion all-wheel-drive system. Will we miss the VR6? Stay tuned to find out.

2012 Tesla Model S
Following the incredibly fast Tesla Roadster comes the Model S, the electric car for every (well off) man. Tesla recently confirmed a base price of $49,900, which includes a 40kWh battery and a range of 160 miles, which should be good enough for most Americans. “Sexy styling, cutting-edge tech. What’s not to like,” asks Sanchez.  “Granted, Tesla has its share of skeptics and haters, but this could be the breakthrough car for the still-struggling electric upstart.”

5. Tied: 2013 Dodge Dart and 2013 Porsche 911 Turbo

2013 Dodge Dart Front 300x187 image

2013 Dodge Dart
It’s been awhile since Dodge has produced a remotely memorable compact car (Dodge Neon anyone?). The 2013 Dodge Dart should change that. “As the Caliber retires, we might soon see an Elantra-like transformation here for Dodge in the compact car segment,” opined copy editor Zach Gale. “I can’t wait to discover whether that nine-speed automatic transmission performs smoothly or constantly hunts for gears.”

2013 Porsche 911 Turbo
Executive editor Ron Kiino recently had some wheel time behind the new 991 Porsche 911 and expects it to continue on as a sports car benchmark. “When we want to say just how quick a car is, or how well it handles, or how amazing its steering is, well, there’s one reference we turn to, Kiino wrote in his first drive of the 2012 Porsche 911. ‘”The new Evo corners as well as a 911!’ ‘This ‘Vette is even quicker than a 911!’ ‘The GT-R is so fast it can hang with a 911 Turbo!’ You get the point.” And like always, Porsche will keep things interesting with a number of variants such as the turbo. “The old 911 Turbo was Veyron-lite; delivering staggering acceleration and a swaggering sense of invincibility on the road,” said MacKenzie. “My wheeltime in the new Carrera S suggests this latest 911 is the best ever. If the new 911 Turbo delivers the same step-change, it’s going to be a helluva car.”

By Erick Ayapana

Tesla Motors to be ‘Cashflow Positive’ Before December

Despite skepticism surrounding Tesla Motors, CEO Elon Musk expects Tesla to report positive cashflow by the end of November.

Doubt cropped up when Tesla failed to meet the planned 500-unit delivery mark by the start of the third quarter, but Musk blamed the slowdown on supply constraints. At the end of the second quarter, Tesla had manufactured 359 Model S vehicles, of which 250 have been delivered to customers.

Musk is also commented on the company’s Department of Energy (DOE) loan. “Tesla has never asked for or even hinted at postponing repayment of the loan…Tesla has always made its DOE payments on time,” Musk wrote in a blog post.

Reports that the DOE has been pushing Tesla to repay its loan sooner than originally planned might have cast a negative shadow over the company’s future.

“The DOE believes Tesla will be highly successful and accumulate a large amount of cash, but that we may then choose not to pay off the loan any sooner than is currently required,” Musk said.

In an effort to further emphasize that point, Tesla also issued an early payment today ahead of its March, 2013 deadline. But observing on-time payments is far from enough to affirm an automaker’s future. There needs to be a solid product backing the brand, which the Model S seemed to prove during our tests.

In our test, the Model S received much praise, another solid reason to believe that Tesla will in fact be successful, thanks to a solid product.

By Stephen Elmer

Tesla Announces Leasing Program – Rumor Central

Tesla Announces Leasing Program

Tesla has just announced a new finance program, making it easier than ever for prospective buyers to get into a new Model S with no money down and a smaller-than-expected monthly payment.

The program, a collaboration with U.S. Bank and Wells Fargo, works by having the banks pick up the Model S’ 10-percent down payment. The down payment is covered by federal and state tax credits, which range from $7500 to as high was $15,000, if you live in West Virginia. Essentially, the banks are using as a down payment the tax credit Model S buyers would otherwise receive further down the line.

The buyer, who Tesla chief Elon Musk says must have excellent credit, then makes a monthly payment based on a 2.95-percent interest rate. According to Tesla’s math, that could amount to about $500 per month for 66 months for a buyer of a 65 kWh Model S. That figure is all smoke and mirrors, though, as the automaker is taking into account intangibles like the time you save by using the carpool lane or avoiding the gas station.

For example, say you’re a wealthy West Virginian business owner who’s purchasing a new 65 kWh Model S, who drives 15,000 miles per year, and is getting out of a BMW 550i, which nets 20 mpg combined on the EPA test cycle. Right there, Tesla says you’ve netted $267 per month in energy savings if you figure the average price of premium gas over the next three years will be $5 a gallon. Drive your car for business? Deduct at least $200 per month off. Is your time worth $100 per hour? Then you’ve essentially saved $167 by cutting your commute by five minutes every day, using the carpool lane. Under all those conditions, according to Tesla, your monthly payment amounts to just $184 per month. Except it doesn’t. This West Virginian businessman will actually be paying $1051 per month for his Model S. An 85 kWh Model S Performance, the quickest American four-door we’ve ever tested, would really cost $1421 per month, and the regular 85 kWh model goes for $1199 a month. It’s worth noting that the costs of driving a $1400-per-month Model S will almost certainly be less than driving a comparable $1400 per month gas-powered car.

After three years of owning the Model S the owner will have the opportunity to sell the car back to Tesla, for at least the same residual value of an equivalent-year Mercedes-Benz S-Class. At the moment, that value is 43 percent, as long you drive less than 12,000 miles a year. For those concerned about the viability of Tesla in the long run, Elon Musk will pick up the tab in the unlikely case Tesla doesn’t exist after those three years.

Ultimately, this program looks to be a win for Tesla and a way for those who might not otherwise be able to afford a Model S to get their hands on one of our favorite electric cars. As for what’s next from Tesla, Musk promised the automaker would begin holding weekly phone conferences with the press, so stay tuned.

Play with Tesla’s True Cost of Ownership Model S calculator here.

Source: Tesla





By Christian Seabaugh

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