Archives for September 6th, 2013

Tesla Stock Rises After Elon Musk Teases ‘Exciting Announcement’

tesla-badge

Elon Musk and Tesla have been making headlines the last couple of months, from dealing with The New York Times to promising an affordable electric car within five years.

The American automaker’s stock rose the most in nearly five weeks yesterday after CEO, Elon Musk tweeted that the company plans a “really exciting” announcement next Tuesday. According to Musk, he’ll be putting his money where his mouth is in a very major way. The announcement was originally going to come Thursday, but Musk later stated that it’ll come a few days later so that there would be no end of the quarter distractions.

SEE ALSO: BMW 3 Series Rival “3 to 4 Years Away” Says Musk

Tesla surged as much as 5.2 percent after the announcement, but closed 2.5 percent higher. The 5.2 percent was the biggest intraday jump for the automaker since February 19th.

It’ll be interesting to see what the news is, considering Tesla has no plans to display at the 2013 New York Auto Show.

[Source: Bloomberg]

Discuss this story at Tesla-Buzz.com

By Jason Siu

Bloomberg says buyers, not automakers, should get more federal funding for plug-in vehicles

money ludad



The U.S. government would be more effective at spurring plug-in vehicle sales if it provided more financial incentives to consumers instead of automakers. At least, that’s the opinion in a Bloomberg News editorial.



Saying that finding alternatives to gasoline “a worthy public goal,” Bloomberg says the government should expand purchasing incentives beyond the $7,500 it provides for buyers of some plug-ins and hybrids. President Obama has said he wants 1 million plug-in vehicles to be on U.S. roads by 2015; the Corporate Average Fuel Economy (CAFE) standards he proposed last year would mandate about a 70 percent fuel economy improvement by 2025. Bloomberg figures the government should hand out money to buyers, not companies, to encourage sales:

Providing loans to companies that can get their own financing in the capital markets is a questionable way to reach [the goal]. A better use of government money would be to encourage consumer demand – by continuing, and expanding, tax credits or other incentives for people who buy vehicles that use little or no gas.

During the past three years, U.S. Treasury Department’s Federal Financing Bank has made more than $8 billion in loans at about a 1 percent interest rate to established automakers such as Ford and Nissan as well as advanced powertrain specialists like Fisker and Tesla, strictly for the purpose of developing electric-drive vehicles. Bloomberg called such a strategy “questionable.” Such automaker loans are guaranteed by the U.S. Department of Energy.

By Danny King

Tesla CEO Says NY Times Article Likely Cost Brand $100M

A public battle between the New York Times and Tesla CEO Elon Musk is still sprouting news after the disgruntled executive told Bloomberg that the article likely cost the electric car maker $100 million.

Musk spoke about the article in an on-camera interview with Bloomberg, and said the article cost Tesla tens of millions, maybe even “on the order of $100 million.” When pressed about the fact that such a number would suggest the brand suffering roughly 1,000 order cancellations, he quickly corrected himself, saying the number wasn’t that high.

SEE ALSO: Tesla CEO Releases Official Rebuttal to NY Times Story

Instead, he said his estimate was based on the valuation of the company after the article was published and order cancellations – of which he said there were probably a few hundred.

Regardless or the scandal, it also sounds like Tesla will reach its 20,000 unit annual sales goal based on current sales. Tesla is currently building 400 Model S sedans per week.

[Source: Bloomberg]

Discuss this story on Tesla-Buzz.com

By Luke Vandezande

Massachusetts dealers appeal ruling in Tesla store case





Massachusetts auto dealers are not taking “no” for an answer when it comes to Tesla Motors. On Tuesday, the Massachusetts State Automobile Dealers Association and other dealer plaintiffs filed an appeal after a court dismissed their lawsuit against Tesla’s factory-owned stores on December 31, 2012.



The lawsuit was initially filed by MSADA in October, and by year’s end, Norfolk County Superior Court Judge Kenneth Fishman ruled that the plaintiffs lacked standing to sue. This suit followed a similar lawsuit filed in October where the MSADA requested the court block an opening of a store by Tesla in a suburban Boston mall. Tesla won approval to open the store in Natick, MA, which fueled the second lawsuit.



Dealers are pointing to a 2002 Massachusetts statue that gives dealers and their association the right to sue to prevent manufacturer-owned stores, Robert O’Koniewski, executive vice president of the dealers association, told Automotive News in an email. “Tesla is spending considerable sums of money across the country in an effort to exploit what they see to be gaps in states’ franchise laws,” O’Koniewski wrote. “The law is the law. Follow it.”



Tesla didn’t respond to a request for comment. Tesla previously has said that it’s being very careful about complying with state laws. The stores are there to educate the public, and when it comes time to selling the car, it’s all being done online.



“People will be walking down the mall and they’ll see a car and they’re drawn in by that…,” said George Blankenship, Tesla’s vice president of sales and ownership experience, in an interview with SmartPlanet. “We’re educating, not selling. It’s two different things.” So far, so good for Tesla Motors. But the jury – as it were – could still be out.

By Jon LeSage

Motor Trend tests Tesla Model S, finds 0-60 in 3.9 sec and 100.7 MPGe

2012 Tesla Model S - front three-quarter dynamic motion shot



Tesla has said the highest-end Model S has a range of 300 miles (at 55 miles per hour), but until recently, it’s been tremendously difficult for anyone outside the company to verify this number. When the EPA did its testing thing, it came up with a 265-mile range estimate for the version with the 85-kWh battery pack. Tesla is even offering a prize of some sort to anyone who drives a Model S over 400 miles on one charge.



Now, Motor Trend writers has had the chance to spend some time in Tesla CEO Elon Musk’s personal Performance Signature Model S to see just how far the electric car can be driven. The result? Your results may vary.



First, the good news. Motor Trend ran a battery of tests on the Model S, and its independent measurements discovered the following ways that their independent testing beat the manufacturer’s official numbers:

  • 0-60 time: 3.9 seconds (Tesla official number is 4.4 seconds)
  • Quarter mile: 12.5 seconds at 110.9 mph (12.6 seconds)
  • 100.7 MPGe during a 200+ mile drive (EPA says 89 MPGe).

So, then, what’s the bad news? At roughly 65 mph with no A/C, MT “only” got 238 miles out of the battery. That’s less than advertised, but MT offers an important and reasonable take on this issue:

But the range that matters is really a psychological/perceptual one, not a specific number. Think about it: We drove from Fontana on the eastern edge of the L.A. basin to San Diego and all the way back to L.A.’s Pacific edge on one charge. Five hours of continuous driving. This is a breakthrough accomplishment that ought to knock down the range anxiety barrier that’s substantially limited EV sales.

Word.

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By Sebastian Blanco