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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

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 Model S Prices Bumped by $2500 to $59,900, Battery Replacement Costs $8000-$12,000

Tesla Model S Prices Bumped by $2500 to $59,900, Battery Replacement Costs $8000-$12,000

Tesla has opened up about the Model S four-door’s recently announced price bumps: for all reservations placed after the end of 2012, Tesla Model S prices will increase by $2500. Before federal tax credits, that means the 40 kW-hr model will now cost $59,900, add $10,000 for the 60 kW-hr model and $20,000 for the 85 kW-hr model, while the 85 kW-hr Performance model will carry an MSRP of $94,900.

Tesla Model S profile red1 300x187 imageAll Tesla Model S cars with the revised pricing will add as standard equipment 12-way power seats and heated front seats. At a constant 55 mph, Tesla estimates the ranges of the three different motor choices at 160, 230, 300 miles. Claimed acceleration from 0-60 mph times take from 4.4 to 6.5 seconds, though we tested a Performance model completing the sprint in 3.9 seconds.

Tesla notes that the $2500 price increase is half the rate of inflation, and with plenty of press — it was the Motor Trend 2013 Car of the Year, after all — luxury customers may still be willing to pay the premium. Speaking of premiums, Tesla is also offering a four-year/50,000-mile extended warranty above the car’s standard four-year/50,000-mile basic warranty.

The automaker has also revealed pricing for battery replacements. Taking the mystery out of the one maintenance detail that scares many about electric cars, Tesla says that $8000 will buy 40 kW-hr Model S customers a new battery to be installed at any time after the eighth year of ownership. The cost rises to $10,000 for the 60 kW-hr battery and $12,000 for the 85 kW-hr battery.

Those battery replacement option prices cover the battery and all installation labor and parts needed to make a Model S whole again. Customers who don’t select the option at time of order will have up to 90 days from date of delivery to choose it, and the prepaid battery will apply to second and subsequent owners even if the original owner sells their car. And while it states the fresh battery reprieve comes after the magic 8-year mark, there “will likely be economic outcomes (incentives or drawbacks) tied to early or late exercise options,” per a Tesla spokesperson.

Considering Tesla’s vehicle servicing strategy, we had to ask if a mobile battery swap was foreseeable in the year 2020. Representatives seemed amused by our image of an electric-powered box truck with enclosed lift being the 2020 version of the electric-car maker’s Service Ranger, but it appears the B&M route is the safe bet for the time being.

Read more about the Tesla Model S in our First Test and Range Verification article.

Source: Tesla

Benson Kong contributed to this post.

By Zach Gale

IP Uh-Oh: Tesla Filing Reveals Roadster Production to End in 2011

IP Uh-Oh: Tesla Filing Reveals Roadster Production to End in 2011

Electric car purveyor Tesla filed paperwork for a $100 million IPO with the SEC earlier today, and after deeper perusal of the 173-page form S – 1, the company looks to be treading on extremely thin ice. The filing has revealed that not only will the company stop making its only car — the Lotus Elise-based Roadster — in 2011 because Lotus will be retooling its plant to make way for a new Elise/Exige line, but also that it has no solid agreements in place for further development or procurement of electric powertrain components with third-party suppliers. While the company hopes to have a new Roadster on the road by 2013, the discontinuation of the present car means Tesla would have no vehicle to sell for the better part of two years — unless of course its proposed Model S sedan magically appears in 2012.

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The filing — specifically, the 39-page-long “Risk Factors” section — makes Tesla’s entire operation look quite shaky as it includes far more than the usual warnings about outside factors that could affect a company’s business.

It’s no secret that the future of the company rides on the success of the Model S and Tesla says that it already has 2000 orders. However, 2012 is less than two years away and the company still does not have a way of actually building the sedan. In fact, the company lists 11 assumptions that it’s operating under with regards to the launch of the Model S:

that we will be able to identify and secure an appropriate facility for the manufacturing of our Model S;
that we will be able to secure the funding necessary to build out and equip the manufacturing facilities in a timely manner, including meeting milestones and other conditions necessary to draw down funds under our loan facility with the DOE;
that we will able to develop and equip the manufacturing facilities for the Model S without exceeding our projected costs and on our projected timeline;
that the equipment we select will be able to accurately manufacture the vehicle within specified design tolerances;
that our computer aided design process can reduce the product development time by accurately predicting the performance of our vehicle for passing relevant safety standards, including standards that can only be met through expensive crash testing;
that we will be able to obtain the necessary permits and approvals, including those under the California Environmental Quality Act and the National Environmental Policy Act, as well as building and air quality permits, to comply with local zoning, environmental and similar regulations to operate our manufacturing facilities and our business on our projected timeline;
that we will be able to engage suppliers for the necessary components on terms and conditions acceptable to us and that we will be able to obtain components on a timely basis and in the necessary quantities;
that we will be able to deliver final component designs to our suppliers in a timely manner;
that we will be able to attract, recruit, hire and train skilled employees, including employees on the production line, to operate our Model S manufacturing facility;
that we will be able to maintain high quality controls as we transition to an in-house manufacturing process; and
that we will not experience any significant delays or disruptions in our supply chain.”

It generally takes established automakers that do not have to worry about supplier contracts, facility procurement, and government permits at least three years to bring a new vehicle to production, so we fail to see how Tesla is going to produce the Model S by 2012, barring a minor miracle. The company admits that it does “not have a full production intent prototype, a final design, a manufacturing facility or a manufacturing process.”

Furthermore, the production of the Model S also depends on Tesla finalizing a number of agreements with Daimler (which has a small stake in the company) that would result in the German automaker providing it with access to parts as well as engineering help. There are also clauses that would allow Daimler to terminate all of its agreements should current CEO Elon Musk leave the company or invest in another automaker.

Even if Tesla manages to overcome the multitude of hurdles in its way, it remains a mystery as to how it would make money in the time that passes between the end of the present Roadster and the launch of the Model S.

The full text of the SEC filing can be found HERE.

By Kirill Ougarov

AAA to Begin Testing of Electric Vehicle Charger Trucks

AAA to Begin Testing of Electric Vehicle Charger Trucks

AAA plans to roll out fleets of trucks equipped with fast chargers to better serve auto club members with EVs, according to Bloomberg. The trucks will be able to charge electric vehicles such as the Nissan Leaf and Tesla Roadster when their batteries run down on the road. This move follows that of AAA’s counterpart in Japan, the Japan Automobile Federation, earlier this month, where that organization announced a joint effort with Nissan to test charger trucks.

Speaking to Bloomberg, AAA spokesperson Christie Hyde said that the Florida-based organization will begin testing the trucks in August. According to Hyde, the initial test group will consist of six “mobile charging units,” testing in states such as California, Oregon, Washington, Florida, Tennessee and Georgia. Hyde declined to give specifics on the cost of the units and who will supply them, however, she did state that AAA will test chargers from multiple suppliers.

With a couple EV models already on the market, and more on the way, automakers’ increasing interest in electric vehicles has prompted the development of a charging infrastructure. Companies such as General Electric are developing roadside charging stations, while power companies are beginning to upgrade to smart grids – installing new meters and transformers to help ensure people can recharge their vehicles at home.

AAA is also preparing itself for the arrival of more electric cars on the road. “We know electric vehicles are coming and we’ve got to be ready for them,” said Hyde. This first batch of charging trucks is part of that plan to get ready. Hyde says that AAA will debut its first mobile charging unit at an electric vehicle conference in Raleigh, NC, next month.

Source: Bloomberg

By Alex Nishimoto

MT Poll: Is the $49,800 Toyota RAV4 EV Priced Right?

MT Poll: Is the $49,800 Toyota RAV4 EV Priced Right?

Lots of car doors open when you have $50,000 to spend. A 2013 Ford Mustang Boss 302 Laguna Seca and a base 2013 Porsche Boxster cost about $50,000, but if an electric-powered crossover is more your style, then you’ll also have enough to afford the Toyota RAV4 EV, set to go on sale later this summer with an asking price of $49,800, before credits.

2012 Toyota RAV4 EV instrument panel 300x187 imageIs that asking too much? Toyota doesn’t think so. Ed Larocque, Toyota USA’s national marketing manager for advanced technology vehicles, defended the RAV4 EV’s price point to WardsAuto: “All things considered, [including] what you’re getting with the product, we think it’s priced right for the market in California.” Following the initial launch in California, Toyota will decide what U.S. markets will get the RAV4 EV.

The RAV4 EV includes a powertrain developed with Tesla Motors. Toyota claims it will accelerate from 0-60 mph in 7.0 seconds in sport mode and 8.6 seconds in normal mode, while reaching a top speed of 100 mph. Its lithium-ion battery pack will need about 6 hours to charge (level 2, 240V), providing a range of 92-113 miles, depending on driving modes and conditions. Standard creature comforts include navigation, heated front seats, and seating surfaces wrapped in Toyota’s new Neutron fabric.

Last but not least are the tax credits. Combining the federal tax credit of $7500 with California’s $2500 credit and the RAV4 EV’s price was knocked down to about $39,990. By comparison, the all-electric Nissan Leaf hatchback is $36,050 (before credits), while a fully loaded 2012 RAV4 Limited AWD V-6 is priced at $32,820.

Source: WardsAuto, Toyota

By Erick Ayapana

Tesla Model S Now Offers Wireless Vehicle Updates, Plant Running at Full Capacity

Tesla Model S Now Offers Wireless Vehicle Updates, Plant Running at Full Capacity

Once we begin our year-long test of the Tesla Model S, the 2013 Motor Trend Car of the Year, we may not have to visit the dealership to perform most software updates. The automaker has just implemented a new, cloud-based system that will allow owners to view and install software updates from their vehicle’s infotainment screen.

Tesla Model S distance display 300x187 imageIt’s hard to imagine that the Model S needs any updating at this point, considering the amount of impressive technology already packed in the EV. During a recent adventure with the Model S in Las Vegas, Editor-in-Chief Ed Loh said the EV “delivers a bit of magic and a sense of occasion thanks to its myriad touch, proximity, and weight sensors. Touch the chromed door handle and it pops out for a good yank.” However, a recent over-the-air update makes those flush-mounted doors handles a bit more magical — now, they pop out as the driver approaches the vehicle, Automotive News reports.   Other updates include voice command and an option for the Model S to “creep” forward when the driver lifts his foot off the brake pedal, similar to what gas-powered cars already do.

The updates will appear on the vehicle’s screen and owners have the option to schedule the install at a future time. Details of the updates are included in “release notes,” similar to the update process consumers are accustomed to with their phones or laptops. The process can save owners time and battery charge needed to visit the dealership.

In addition to the cloud-based update system, the Model S now sports a slightly tweaked front nose and a revised jump seat with better ergonomics. Tesla’s director of Model S programs Jerome Guillen credits these recent updates to the automaker’s relatively small size. Guillen, who previously worked at Daimler AG, told the Automotive News “we are doing things in a couple weeks that, at my previous employer, would have taken two years.”

tesla model X prototype rear left side view 300x187 imageAutomotive News also reports that the Tesla’s plant in Northern California is running at full capacity, with the ability to produce 20,000 units a year. Additionally, Tesla will start building cars equipped with 60kWh battery packs, which will join the range-topping models with the 85 kWh battery packs that were first to launch. A value-priced 40 kWh-model is available, and Model S prices increased for the 2013 calendar year. Also in the pipeline is the Tesla Model X, which Guillen says is still scheduled to go into production sometime next year.

Source: Automotive News (Subscription required)

By Erick Ayapana

Watch the Tesla Model S Attempt to Reach Las Vegas from L.A. on a Single Charge

Watch the Tesla Model S Attempt to Reach Las Vegas from L.A. on a Single Charge

Like it or not, an increasing number of automakers are experimenting with electric vehicles. Whether EVs will supplant internal combustion engines or only complement regular vehicles depends on how well executed they become. On this episode of Wide Open Throttle, host Jessi Lang and Motor Trend technical director Frank Markus attempt to drive the all-new Tesla Model S from Los Angeles to the Las Vegas strip on a single charge – the first real-world range test of its kind.

Tesla Model S from LA to Las Vegas WOT video pic 11 300x187 imageThe Tesla Model S, which is the personal car of Tesla Motors CEO Elon Musk, is fitted with the larger 85-kW-hr battery pack that is EPA rated at 265-mile range. An earlier test by testing director Kim Reynolds and associate online editor Benson Kong netted about 238 miles – short of the official rating. While Lang’s and Markus’ trip was only about 210 miles, they were facing two 4000-foot mountain passes in route to Sin City. In an effort to reduce energy consumption, the duo climbed the summits at 55 mph with the air conditioning off and the windows up in 100 + degree temperatures.

Check out the video below to see if Lang and Markus made it to Las Vegas on a single charge or if the Tesla Model S ended up on the back of a flatbed tow truck. Don’t forget to check out our two Tesla Model S road trip stories here and here.

By Jason Udy

Creative Math: Tesla Says Model S True Net Cost Is Under $500/Month With New Financing Option

Creative Math: Tesla Says Model S True Net Cost Is Under $500/Month With New Financing Option

Tesla has announced a new, more affordable way to get behind the wheel of a Model S. Essentially a leasing program, Tesla’s new financing is designed to make it more affordable than ever to buy a Model S. How affordable? Tesla is tossing around a $500-per-month figure with no money down, though that’s with a bit of creative math, which we’ll explain below.

2013 Tesla Model S front side 300x187 imageThe 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 as $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.

2013 Tesla Model S left profile 300x187 imageFor 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