Archives for September, 2013 - Page 2
In recent days, Tesla Motors stock (TSLA) has been climbing and climbing, hitting a high of $58.18 earlier today before closing at a respectable $53.99. The rise comes amid a string of headline-making events – higher-than-expected sales, franchise dealer fights and a new warranty program, to name just three – but under all of the good news lies a potential problem. The Wall Street Journal revealed today that Tesla was served subpoenas from US federal prosecutors over details on the company’s trading plan for executives. There has been no hint of wrongdoing, the feds just want information, Reuters reports. A similar subpoena was sent to Cardiovascular Systems, which makes medical implements.
The question is how the executives can trade their shares. Reuters reports that it is fine by Securities and Exchange Commission (SEC) rules for executives to use something called a 10b5-1 plan to trade their own stock, “even when they have access to private information.” The subpoena does not seem to have anything to do with questions over whether Tesla CEO Elon Musk’s recent “overzealous” Tweet was in any way illegal.
This week, analysts at Longboard Asset Management said they believe Tesla common stock will hit $100 in the next 18 months on the way to $200 per share within five years. In any case, we’ll have more information ammunition for the debate when Tesla releases first quarter results May 8th.
Related Gallery2012 Tesla Model S: First Drive
According to comments made by Tesla CEO Elon Musk on Twitter, a “low cost, compelling electric car” is “3 to 4 years away” from being a reality.
Stating that it has always been a dream of his to create such a product, Musk also elaborated that he wished it could happen sooner. This raises the question as to whether the issue is the technology or the demand for such a vehicle. Or perhaps more likely is the possibility that Tesla currently lacks the capital to invest in such a product. The American electric car maker recently announced it would delay its Model X crossover, preferring to repay its DOE loan quicker.
SEE ALSO: Tesla Model X Delayed
In previous reports Tesla reps had indicated a 3 Series rival was in the works, priced at around $30,000. At that time the projected launch was for 2015. It now appears as though it would be 2016 at the earliest.
But if there’s any automaker that can make a compelling and affordable electric car, it’ll be Tesla. While other automakers are struggling to get their electric vehicles off the ground and into the market, Tesla has proved that there is a market for EVs with the right balance of performance and luxury.
Discuss this story at Tesla-Buzz.com
By Jason Siu
The Tesla Model S is on another cross country road trip. It’s not being driven by a Tesla team, like last year – this time it’s a long, winding tour for old friends Peter, Luba and Tina, making their way from Portland, OR, to New York. It’s been a sightseeing drive – as of day six, they’d only made it to Albuquerque from Oregon and still had a couple thousand miles to cover. Thankfully, they’re writing up their journey, so we can ride along with words.
The Model S was picked up by Peter three years and 273 days after his deposit was placed. Jared, the Tesla store manager in Portland, walked him through delivery of the new car, which was given the name “Sunrise” by the road trip crew. Even though Peter is an engineer who’s done a lot of homework on the Model S, Jared was able to teach him a few things.
An hour after picking up Sunrise, Peter drove to the airport and picked up Tina. The initial trip plan was changed on the spot, as they decided to spend some time enjoying the sunshine of Portland, along with breaking in the new car and verifying charging stations.
On day two, heading out of Portland to San Francisco, they tested out charging networks. On a ChargePoint station in Forest Park, just south of Portland, they got an error message after swiping the card, informing them to call ChargePoint. The charging station customer service rep quickly got back to them and fixed the problem – an incorrect zip code was initially entered.
In Corvallis, OR, they pulled into a local RV park, where Peter decided to test out his custom designed electric vehicle service equipment (EVSE) multi-input unit. It was his first time plugging the EVSE into a Model S, so he took it slow. He was more than pleased to see it working right away, and was able to charge at 50 amps and 240 volts.
Stopping at the Tesla factory in Fremont, CA, was almost like Charlie Bucket exploring Willie Wonka’s chocolate factory for the road trip team. Far from being a car enthusiast like Peter, Tina found herself fascinated by the size, scope, organization, teamwork and technology at plant building the Model S. As a group, they were fully entranced for about 30 minutes as they witnessed the assembly line in action.
Luba joined her friends on day five of the road trip, in the Los Angeles area, where they visited a Tesla supercharger in Hawthorne, CA, for a quick charging “top off.” Peter ended up having a fascinating conversation with Larry, a navy pilot who flew F14s and who’d also graduated from University of Maryland and owned a Model S. It was so fascinating, Peter didn’t realize until about 40 minutes later that their Model S wasn’t even charging at all. Oops! Oh, well – they’ve still got a lot of miles to drive, things to see and lots of chances to learn something new every day about Sunrise.
By Jon LeSage
You can sell the car, but not the reservation for it. That’s the gist of a Green Car Reports post about Tesla Model S reservation holders looking to “sell” their spots in line on eBay.
With the half-dozen or so reservations for the all-electric sedan being posted for sale on the auction site, Tesla confirmed to Green Car Reports that none of the approximately 14,000 reservations can be legally sold because the holders have signed an agreement saying that the reservations are non-transferable. In fact, the agreement specifically states that the only way the reservation is “transferable or assignable to another party” is with the written approval from an Tesla authorized representative. And Tesla says that no such approval has been given. That said, the car itself can be sold as soon as the reservation holder takes possession of it. Mere details.
Last month, the Model S won the Motor Trend Car of the Year Award. Tesla in November also announced that it hiked the Model S price for next year by $2,500 for US customers. That means the prices for the sedan will range from $59,900 for the base model to $94,400 for the top-end version.
Related Gallery2012 Tesla Model S: First Drive
By Danny King
Tesla Motors is expected to release quarterly earnings figures within the next few days, and the Silicon Valley automaker is thought to have attained profitability for the first time ever. As it turns out, a good bit of that profit will reportedly come from the State of California.
According to an article from the LA Times, Tesla, which is reportedly on pace to sell 20,000 vehicles in 2013, receives as much as $35,000 in environmental credits from California for each Model S it sells. These credits can then be sold to other automakers that do business in the state but don’t sell zero-emission vehicles of their own. Some experts believe Tesla could earn up to $250 million from such ZEV credits.
While profits from ZEV credits equals good news for Tesla, some experts and rival automakers aren’t very pleased with California’s strong-arm tactics when it comes to the sales of electric vehicles. “At the end of the day, other carmakers are subsidizing Tesla,” said Thilo Koslowski, an analyst at Gartner Inc.
Mary Nichols, chairwoman of the California Air Resources Board, counters by saying, “We are in the air pollution business, not the car business… There is some jealously of Tesla going on here.” Check out the entire article from the LA Times here, it’s an interesting look into the inner-workings of the business side of the eco-friendly automotive marketplace.
Related GalleryTesla Model S
With news of upcoming expansion plans, Tesla appears to be continuing its journey from just barely surviving to thriving. In a Wired report, Tesla CEO Elon Musk admits the company is planning a BMW X3 fighter as well as a sports car successor to the original Tesla, the Roadster.
Before Tesla can think about launching a midsize crossover and roadster in the 2016 calendar year, however, the company also has the upcoming Model X crossover, not to mention the BMW 3 Series challenger that could arrive in 2015 after the Model X arrives in dealerships early in 2014.
“We’ll do the X3 equivalent and then a Roadster follow-up in parallel,” Musk said to Wired.
Higher-volume models like the midsize crossover and the entry-level four-door — said to carry a base price around $30,000 when it debuts — will help Tesla reach the sales levels necessary to make a profit on its vehicle architecture. Musk notes that the car will have a similar hatchback design as the Model S, perhaps a similar arrangement found between the Fisker Karma and Atlantic models.
While Musk didn’t specify whether the new crossover model will have the Model X’s flashy, outward-opening doors, we wouldn’t be surprised to see them dropped to help the model reach a lower base price. Speaking of price, Musk hints that Tesla’s next sports car may see a price drop compared to the Roadster. In a comparison test involving a Tesla Roadster Sport along with a Porsche Boxster Spyder, we called the Tesla “a genuine car to reckon with on the world stage” but knocked it for having an “extraordinary price” and limited range.
By Zach Gale
Tesla Motors turned the “penny wise, dollar foolish” axiom on its head by staking its lithium-ion battery technology on a more expensive and more complex layout than its competitors, according to Tesla Chief Technology Officer JB Straubel in an interview with Bloomberg News.
Instead of using battery packs with hundreds of larger cells for its Roaster, Tesla deployed thousands of smaller lithium-ion cells for its inaugural model in 2006. This made the battery pack more expensive to produce, but this costlier architecture was considered safer and less prone to breakdowns. Straubel said. Since then, Tesla has cut the cost of its battery packs in half during the past seven years while avoiding any recalls or reports of breakdowns due to the packs.
Earlier this month, Tesla said it delivered its first quarterly profit during the first quarter, boosting its sales 83 percent from a year earlier to $562 million and selling 4,900 Model S EVs, which was more than what the Chevrolet Volt extended-range plug-in and Nissan Leaf battery-electric achieved.
Related Gallery2012 Tesla Model S: First Drive
By Danny King
We’ve heard initial reviews of the Tesla Model S from the media as the “Get Amped” tour – a multi-city test-drive opportunity for reservation holders – kicked off at the company’s Fremont, CA factory. But what about the people who really matter? You know, the folks who’ve been waiting for as long as two years, having plunked down as much as $40,000 for a place in line. What did they think of the shiny new machines?
After reading many first-person accounts and watching a good number of in-car videos, we think it’s fair to say they absolutely love it. The sexy fastback looks, the smooth, rocket-like acceleration, the comfortable ride, and confident handling. Love, love, love, and love!
But don’t take our word for it. Scroll down for a handful of videos, starting with a relatively short one from Tesla Motors featuring footage from the official launch and customer test-drive reactions (the last in the Tesla Tuesday series), followed by full length (12-13 minutes) clips from individuals.
Hybrid and electric vehicles pose a special problem for first responders. Unlike traditional gas or diesel-powered vehicles, hybrids and EVs use high voltage battery packs that can potentially electrocute firefighters when responding to an accident, if the first responders are unaware of the location of the cables that carry electricity through the car. Realizing the potential hazards, Tesla has released a video with a Model S being torn apart by the Jaws of Life to teach firefighters how to safely rescue someone from an EV.
If you want to skip the video’s drier bits, the Tesla Model S destruction starts at the 27:45 mark in the video below. Firefighters begin by ripping off the door and front quarter panel, before ripping into the A-pillar. The firefighters then dig into the dashboard and completely separate the dashboard section from the rest of the Model S, causing complete destruction of the electric car.
Watch the Tesla Model S get torn to shreds in the video below.
Source: Brock Archer via YouTube
The Tesla Model S is officially showroom ready, at least according to the U.S. government: after passing initial Environmental Protection Agency tests, the car has also reportedly passed crash testing at the hands of the National Highway Traffic Safety Administration. Not one to waste time, Tesla Motors subsequently announced the car’s initial delivery date is June 22nd, 2012.
The crash test announcement comes from the personal Twitter account of Tesla CEO Elon Musk, who took a break from observing his SpaceX rocket launch to tweet that the Model S finished NHTSA crash testing. Musk claims that the car completed all tests with five-star scores, although we were unable to independently confirm that claim with NHTSA by press time.
With crash testing completed, along with the aforementioned EPA certification, it appears to be full-speed ahead for Tesla’s next model launch. The company plans on handing over keys to early production models to owners within the confines of its assembly plant in Freemont, California, but then intends on quickly ramping up volume. Tesla hopes to deliver 5000 Model S sedans by the end of the year, but claims that the waiting list for one of the five- or seven-passenger (depending on options) EVs stretches some 10,000 names. Those names should be satisfied by the middle of next year, as Tesla is shooting for a 20,000-unit year in 2013.
As to-be owners anxiously wait for their cars, Tesla also announced that customer cars will receive some special finishing touches. Tesla VP George Blankenship announced via blog post this week that Model S sedans will now come with adjustable steering effort, suspension height, and regenerative braking settings – all of which are configurable through a menu accessed by way of the 17-inch touchscreen center stack.
The Model S will go on sale this year and cost between $57,400 and $105,400, not including a possible $7500 federal income tax credit.
By Ben Timmins