The Truth About Cars » Tesla http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 22 Dec 2014 18:16:54 +0000 en-US hourly 1 http://wordpress.org/?v=4.0.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Tesla http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/reviews/tesla/ Tesla Opens Battery Swap Pilot Program In California http://www.thetruthaboutcars.com/2014/12/tesla-opens-battery-swap-pilot-program-california/ http://www.thetruthaboutcars.com/2014/12/tesla-opens-battery-swap-pilot-program-california/#comments Mon, 22 Dec 2014 14:00:35 +0000 http://www.thetruthaboutcars.com/?p=963874 It’s official: As of this week, select Tesla Model S owners will be able to swap battery packs in a pilot program along the route between San Francisco and Los Angeles. The pack swaps will take place “at a custom-built facility” across from the automaker’s Supercharger station in Harris Ranch, Calif., with each scheduled swap […]

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It’s official: As of this week, select Tesla Model S owners will be able to swap battery packs in a pilot program along the route between San Francisco and Los Angeles.

The pack swaps will take place “at a custom-built facility” across from the automaker’s Supercharger station in Harris Ranch, Calif., with each scheduled swap to cost “slightly less” than a full tank of gas. The swaps are expected to take three minutes, due to the added time needed to remove the titanium and hardened aluminum plates protecting the pack.

The pilot program — announced in October of this year — is meant to test the systems used in the swap, as well as determine demand for such a procedure. Tesla states that with further refinements, a swap could take less than a minute to accomplish.

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Tesla’s Tanking U.S. Sales And The World Of Automakers Falsifying Sales Numbers http://www.thetruthaboutcars.com/2014/12/teslas-tanking-u-s-sales-world-automakers-falsifying-sales-numbers/ http://www.thetruthaboutcars.com/2014/12/teslas-tanking-u-s-sales-world-automakers-falsifying-sales-numbers/#comments Tue, 16 Dec 2014 13:00:55 +0000 http://www.thetruthaboutcars.com/?p=958665 The auto journo world is in a tizzy because electric automaker Tesla refuses to post its car sales numbers on a monthly basis and the numbers they do divulge are suspicious as they are without detail and they vary widely from actual registration numbers. Our friends at Jalopnik ranted about it last week, calling on Tesla to start […]

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Teslas in a row Courtesy ibtimes.com

Tesla’s first fleet deal? Around 100 Model S’s were sold to a Las Vegas startup taxi service.

The auto journo world is in a tizzy because electric automaker Tesla refuses to post its car sales numbers on a monthly basis and the numbers they do divulge are suspicious as they are without detail and they vary widely from actual registration numbers. Our friends at Jalopnik ranted about it last week, calling on Tesla to start reporting sales consistently. They based their story on a report by Seeking Alpha that deduced that Tesla may have as many as 12,000 unsold Model S’s, based on registration figures and the automaker’s quarterly financial reports.

We say congratulations, Elon Musk, you truly are the head of an American car company now, as reporting bogus sales numbers to the press is a normal part of an automaker’s modus operandi. Auto manufacturers claiming they sold more cars than they actually did is nothing new.  Sales numbers in the US are based on those deliveries reported by dealers, not when the automakers wholesale the vehicles to the retailers as some believe. Carmaker execs at times may be motivated to look good to their bosses or shareholders or to outsell a rival. They will then pressure, coerce and bribe dealers with one-time cash incentives to have them report bogus sales at month or year-end, often to the dealer themselves as loaner or demonstrator cars.  The vehicles are never driven and then sold as new, ideally as quickly as possible as their warranty clocks are ticking. Dealers who do not comply are thus put in an unfavorable price disadvantage with competing same-brand stores.

The Japanese automakers pioneered this practice during the high-demand, low supply days. At American Honda from the 1970s to the early 1990s, dealers reported every unsold car as sold at the end of each month or they risked losing precious future allocations. Those were the days when every Honda dealership employee “bought” a dozen cars a year and then the dealer would turn to the white pages of the phone book to find more “buyers.” It is not an urban car legend that a California Honda dealer once sold Accords to customers named “Mickey Mouse” and “Donald Duck.”

In December 2012 BMW North America, in their zeal to beat Mercedes-Benz in the US, reported 37,399 vehicles sold, an amazing 69% higher than their 2012 average monthly sales rate, thus claiming the US luxury brand crown. That December the industry rose 21% over the 2012 average due to it being the heaviest incentive month of the year and this no doubt contributed to the rise in Bimmer sales. However, BMW dealers that I spoke with in January 2013 complained that half of their inventory had been reported as sold in December.  BMW got tons of pub for beating Benz but few noticed that when actual registration numbers came out a few months later it was revealed that Mercedes-Benz outsold BMW for 2012. Incredibly, in one of the few occasions where the media sniffed out this practice, the Wall Street Journal had reported about BMW’s shady sales numbers just months before.

It was one thing to report cars sold as loaners or demonstrators under the direction  of the factory; it is another to do report ghost sales when your dealership needs the incentive cash to stay afloat. We covered the story of a South Carolina Suzuki dealer who was convicted of fraud earlier this year for doing just that. It probably did not help his case that he was also convicted of a cornucopia of illegal advertising and finance practices.

As far as Tesla sales this year, here are the facts as near as we can determine: Automotive News has estimated Tesla’s reported sales in the US through October were 19,530 units. Actual registration numbers for the same period were 11,731 cars, a full 40% below the sales figures.  Further, these registration figures show Tesla off 22% from the same period in 2013.  Other sources have pegged the drop off at 26% this year.  This may explain why Tesla may be dabbling in the fleet market for the first time, as pictured above.

Elon Musk responded to these reports by saying they are selling every car they build and his team issued a response saying that don’t report monthly sales because, “the media tends to read all sorts of nonsense into deliveries.” They also pointed out that a car could be sold one month and not registered until the next. Why, yes, just like every other automaker.

 

Elon Musk Courtesy static1.businessinsider.com

If GM or Ford stopped reporting monthly sales and started spewing such drivel, the press would vilify them but the rules are different for Musk.  If he told the media that Tesla sold 200,000 cars one month, outsold all the other luxury carmakers combined and that he personally just got back from Mars, the slobbering press would not question him and resultant news stories would send Tesla stock into orbit.

Don’t get us wrong. We think that a new auto company selling 15,000 high dollar electric cars annually in the US through a unique, direct sales channel is an incredible accomplishment.

The Tesla Model S is one of the most innovative cars available today and Musk is one of this century’s greatest entrepreneurs, not to mention an amazing PR man. Who cares if can’t tell us the truth about how many cars his company sells?

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Tesla Losing Chinese Chief After Less Than Nine Months http://www.thetruthaboutcars.com/2014/12/tesla-losing-chinese-chief-less-nine-months/ http://www.thetruthaboutcars.com/2014/12/tesla-losing-chinese-chief-less-nine-months/#comments Mon, 15 Dec 2014 13:00:21 +0000 http://www.thetruthaboutcars.com/?p=961289 After less than nine months at the helm, Tesla China president Veronica Wu will be resigning from the top job, and leaving the company behind. Bloomberg reports Wu, who joined the automaker from Apple last December, took the wheel after previous subsidiary chief, Kingston Chang, left earlier this year. Her replacement will be Tom Zhu, […]

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Veronica Wu

After less than nine months at the helm, Tesla China president Veronica Wu will be resigning from the top job, and leaving the company behind.

Bloomberg reports Wu, who joined the automaker from Apple last December, took the wheel after previous subsidiary chief, Kingston Chang, left earlier this year. Her replacement will be Tom Zhu, who currently is in charge of Tesla’s charging network development in China.

Wu’s last day with Tesla is unknown, nor are her plans upon leaving the company.

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BMW: We’re Not Working With Tesla On Anything http://www.thetruthaboutcars.com/2014/12/bmw-working-tesla-anything/ http://www.thetruthaboutcars.com/2014/12/bmw-working-tesla-anything/#comments Wed, 03 Dec 2014 11:00:04 +0000 http://www.thetruthaboutcars.com/?p=954977 Were you hoping BMW and Tesla would join forces for the future of electrification? Not so fast. According to Wirtschafts Woche, a BMW representative stated the company will not be buying shares in the California-based automaker, nor offering much more than its carbon fiber technology, which BMW states is open to all comers. The Bavarians […]

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Were you hoping BMW and Tesla would join forces for the future of electrification? Not so fast.

According to Wirtschafts Woche, a BMW representative stated the company will not be buying shares in the California-based automaker, nor offering much more than its carbon fiber technology, which BMW states is open to all comers. The Bavarians believe the only benefit from a relationship with Tesla would be in favor of the latter, claiming CEO Elon Musk would enjoy the PR from such a collaboration.

The statement comes on the heels of an interview by Der Spiegel with Musk, who proclaimed his company was in talks with BMW to “collaborate on battery technology or charging stations,” something that was news to BMW. The automaker also has no interest in working on a battery factory with Tesla, stating such things can be purchased from its suppliers. Musk said he had plans to build a factory in Germany within five to six years.

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Tesla: New Model X Orders To Be Fulfilled ‘Well Into 2016′ http://www.thetruthaboutcars.com/2014/11/tesla-new-model-x-orders-fulfilled-well-2016/ http://www.thetruthaboutcars.com/2014/11/tesla-new-model-x-orders-fulfilled-well-2016/#comments Wed, 26 Nov 2014 15:00:05 +0000 http://www.thetruthaboutcars.com/?p=951497 Planning to order a Model X before doing battle on Black Thanksgiving? You may be waiting until Black Thanksgiving 2016 before yours arrives in the driveway, red bow attached. Jalopnik reports a letter sent by Tesla to those already on the early adoption list that the Model X will come with the D’s dual-motor, all-wheel […]

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Planning to order a Model X before doing battle on Black Thanksgiving? You may be waiting until Black Thanksgiving 2016 before yours arrives in the driveway, red bow attached.

Jalopnik reports a letter sent by Tesla to those already on the early adoption list that the Model X will come with the D’s dual-motor, all-wheel drive system, that the EV SUV would be the first of its kind to have towing capability, and that those who are signing up to own or lease an X will be waiting well into 2016 before they finally turn up; the first models are due in driveways Q3 2015, for comparison.

For now, the company is beta-testing the X in its factory, with crash testing due in the future. Tesla is also working with “the best rack and accessory companies in the world to have elegant carrying solutions” for the SUV, as its optional tow hitch can also accommodate ski and bike racks with little effect on aerodynamics.

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Online Publication Believes Tesla Is Under SEC Investigation http://www.thetruthaboutcars.com/2014/11/online-publication-believes-tesla-sec-investigation/ http://www.thetruthaboutcars.com/2014/11/online-publication-believes-tesla-sec-investigation/#comments Wed, 26 Nov 2014 13:00:03 +0000 http://www.thetruthaboutcars.com/?p=951433 Tesla may be under investigation by the Securities and Exchange Commission, based upon speculation by an online publication whose modus operandi involves filing Freedom of Information Act requests. AutoblogGreen reports an online publication called Probes Reporter filed a FOIA request with the SEC about Tesla, along with a number of corporations the publication is interested […]

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2013 Tesla Model S P85 Fishing boat

Tesla may be under investigation by the Securities and Exchange Commission, based upon speculation by an online publication whose modus operandi involves filing Freedom of Information Act requests.

AutoblogGreen reports an online publication called Probes Reporter filed a FOIA request with the SEC about Tesla, along with a number of corporations the publication is interested in learning more about.

Based on the responses received, the publication reads the tea leaves to determine if the SEC is investigating a given company. The request regarding Tesla was denied per a letter from the agency, citing the “law enforcement exemption” aspect of FOIA as the reason. Thus, Probes Reporter suspects Tesla is being investigated in an “undisclosed probe,” and added the company to its watch list.

As for what Tesla itself has to say, representative Liz Jarvis-Shean says her employer doesn’t comment on rumors and speculation.

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Musk: I Won’t Be Tesla’s CEO Forever http://www.thetruthaboutcars.com/2014/11/musk-wont-teslas-ceo-forever/ http://www.thetruthaboutcars.com/2014/11/musk-wont-teslas-ceo-forever/#comments Mon, 24 Nov 2014 15:00:11 +0000 http://www.thetruthaboutcars.com/?p=950041 Everybody wants to rule the world one way or another, but forever? Not if you’re Elon Musk. Per HybridCars, the CEO of Tesla stated in an interview with Auto Bild that while he would never leave the company, he would step down as its leader within the next three to four years, through the production […]

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Elon Musk

Everybody wants to rule the world one way or another, but forever? Not if you’re Elon Musk.

Per HybridCars, the CEO of Tesla stated in an interview with Auto Bild that while he would never leave the company, he would step down as its leader within the next three to four years, through the production of the Model 3.

As for Tesla itself, Musk said the automaker did fail three times, and burned through its cash to nil, thanks to the fallacies of using the Lotus Elise as an inexpensive foundation to launching a vehicle, and depending upon the powertrain by AC Propulsion to move it. He also proclaimed that he should have been the company’s CEO from the outset, marking the delay as one of his greatest regrets.

As for where he sees himself in the future, Musk says he’d like to go to Mars for a while, return to Earth, then return to Mars in his mid-70s to die under the blue sunset.

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Tesla Fights Georgia Dealers Over Direct Sales Model http://www.thetruthaboutcars.com/2014/11/tesla-fights-georgia-dealers-direct-sales-model/ http://www.thetruthaboutcars.com/2014/11/tesla-fights-georgia-dealers-direct-sales-model/#comments Mon, 17 Nov 2014 12:00:08 +0000 http://www.thetruthaboutcars.com/?p=946194 Tesla’s ongoing battle to directly sell its wares to the public has come to Georgia, where the automaker is asking for a dismissal of a petition by the state’s dealer association seeking to ban Tesla from conducting such sales. Atlanta Business Chronicle reports the petition, filed with the Georgia Department of Revenue by the Georgia […]

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Tesla’s ongoing battle to directly sell its wares to the public has come to Georgia, where the automaker is asking for a dismissal of a petition by the state’s dealer association seeking to ban Tesla from conducting such sales.

Atlanta Business Chronicle reports the petition, filed with the Georgia Department of Revenue by the Georgia Automobile Dealers Association in late August of 2014, demands Tesla sell its Model S and other models through a franchise network, the automaker’s alleged violation of the Georgia Motor Vehicles Franchise Practices Act serving as the foundation for said petition. Tesla, of course, said that wasn’t the case:

GADA’s arguments rely on a wholesale misapplication of the FPA. The FPA only regulates conduct between franchisors and their affiliated franchisees, and does not apply to Tesla, which has no franchisees.

GADA also asserts that Tesla cannot directly sell to the public because of another cited statute — one that allows direct sales only if a given vehicle is “manufactured or assembled in accordance with custom-design specifications of the customer” — proclaiming Tesla offers no such thing to its customers. Representative Derrick Dickey stated that his employer is eager for Tesla to follow the letter of the law, “just like every other automobile manufacturer that sells new vehicles in Georgia.

The case is expected to be heard in court early next month. Until then, Tesla will continue to sell directly to the public under an exemption for ZEV models, which currently limits a given automaker to just 150 per year.

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Merrill Lynch: Tesla Sitting On 3K Cars Despite Alleged Scarcity http://www.thetruthaboutcars.com/2014/11/merrill-lynch-tesla-sitting-3k-cars-despite-alleged-scarcity/ http://www.thetruthaboutcars.com/2014/11/merrill-lynch-tesla-sitting-3k-cars-despite-alleged-scarcity/#comments Fri, 14 Nov 2014 11:00:22 +0000 http://www.thetruthaboutcars.com/?p=945017 If you’re still waiting for your Model S to arrive in your driveway, you might not be too pleased to learn there could be 3,000 cars hiding in the back room, thanks to one man seeking knowledge about Tesla’s famed scarcity. The Daily Kanban reports Merrill Lynch research analyst John Lovallo found that while the […]

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If you’re still waiting for your Model S to arrive in your driveway, you might not be too pleased to learn there could be 3,000 cars hiding in the back room, thanks to one man seeking knowledge about Tesla’s famed scarcity.

The Daily Kanban reports Merrill Lynch research analyst John Lovallo found that while the hype held up for the Model X — for obvious reasons — the same couldn’t be said for the Model S. Despite Tesla’s claim that they sold every car they had in Q3 2014 — even the ones in the showrooms — Lovallo saw a different story with the finished goods inventory. In short: Some 3,000 vehicles were either in transit or in a warehouse.

Merrill Lynch — who told its clients in its research note about Tesla that the automaker’s stock will remain labelled “underperform” for the foreseeable future — also noted that Tesla is facing difficulties in penetrating the Chinese market, “coupled with seemingly tepid European demand for the Model S.” Despite the Chinese government creating a separate pool for EV license plates, 70 percent of plate winners failed to cash-in by the end of last month, and even if everything worked out, lower-cost EVs like the Nissan-Venucia r30 and the 20-some models set to leave Volkswagen’s factories would hardly leave any money for a higher-end EV like those sold by Tesla.

The note concludes by pointing out that the automaker barely makes money from selling regulatory credits to other automakers, while not making a dime off of its vehicles, the latter an issue that “could ultimately prove to be the biggest risk for the company and the pure electric vehicle market at large.”

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Jackson: Michigan’s Anti-Tesla Legislation “Unnecessary Protectionism” http://www.thetruthaboutcars.com/2014/11/jackson-michigans-anti-tesla-legislation-unnecessary-protectionism/ http://www.thetruthaboutcars.com/2014/11/jackson-michigans-anti-tesla-legislation-unnecessary-protectionism/#comments Fri, 07 Nov 2014 15:00:53 +0000 http://www.thetruthaboutcars.com/?p=942489 Though the anti-Tesla legislation recently signed into Michigan law is only a clarification of a previous anti-direct sales law, AutoNation CEO Mike Jackson finds the whole thing as “unnecessary protectionism.” The Detroit News reports Jackson said the bill couldn’t protect Tesla, as the EV automaker had no franchises that needed protection, further proclaiming CEO Elon […]

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AutoNation CEO Mike Jackson

Though the anti-Tesla legislation recently signed into Michigan law is only a clarification of a previous anti-direct sales law, AutoNation CEO Mike Jackson finds the whole thing as “unnecessary protectionism.”

The Detroit News reports Jackson said the bill couldn’t protect Tesla, as the EV automaker had no franchises that needed protection, further proclaiming CEO Elon Musk could sell his cars as he saw fit:

If Elon Musk wants to make a mistake and go with an inefficient distribution system, that’s his right as an American. Let him do it. I’m not afraid… my phone will ring someday when he really wants to sell some cars.

On the other hand, Jackson — whose franchise network consists of over 220 stores nationwide and 500,000 units sold annually — took Tesla to task for lobbying against “government intervention… and protectionism,” as the automaker’s foundation was built upon state and federal incentives all around.

Other targets in his meeting with the Detroit Economic Club Thursday included fracking, the Obama administration, and the two-pronged recall parade led by General Motors and supplier Takata. Regarding the recalls, Jackson said more government intervention is needed to better handle current and future actions.

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Tesla Loses $75M In Net GAAP Income In Q3 2015 http://www.thetruthaboutcars.com/2014/11/tesla-loses-75m-net-gaap-income-q3-2015/ http://www.thetruthaboutcars.com/2014/11/tesla-loses-75m-net-gaap-income-q3-2015/#comments Fri, 07 Nov 2014 11:00:58 +0000 http://www.thetruthaboutcars.com/?p=942401 Tesla’s Q3 2014 earnings report had a few pluses (record deliveries of the Model S, high demand for the D trim sedans) and minuses (the third delay of the Model X, removal of brown and green from the Model S palette). The biggest minus, however, was its bottom line: A net loss of $75 million […]

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Tesla Model S at Tesla HQ

Tesla’s Q3 2014 earnings report had a few pluses (record deliveries of the Model S, high demand for the D trim sedans) and minuses (the third delay of the Model X, removal of brown and green from the Model S palette). The biggest minus, however, was its bottom line: A net loss of $75 million in GAAP income.

AutoNews reports the loss in Generally Accepted Accounting Principles income is double what Tesla lost in Q3 2013. Cash on-hand also decreased in the quarter, falling $304 million to $2.4 billion. Non-GAAP net income was $3 million, or just 2 cents per share based upon 142.7 million diluted shares.

Overall income from the 7,785 units delivered this period came out to $932 million in non-GAAP income, $852 million once GAAP is applied. Regulatory credits totalled $93 million, with $76 million in ZEV credits, thanks to the closure of additional contracts with a number of OEMs.

R&D spending climbed 28 percent over the previous quarter, hitting $119 million non-GAAP, $136 million GAAP. The expenses came as a result of work on the oft-delayed X, the D’s dual-motor drivetrain, and the new Autopilot semi-autonomous driving system.

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Tesla: Model X Delayed Until Q3 2015, D Models In High Demand http://www.thetruthaboutcars.com/2014/11/tesla-model-x-delayed-q3-2015-d-models-high-demand/ http://www.thetruthaboutcars.com/2014/11/tesla-model-x-delayed-q3-2015-d-models-high-demand/#comments Thu, 06 Nov 2014 13:00:55 +0000 http://www.thetruthaboutcars.com/?p=941801 Were you hoping to have a Tesla Model X next to your Model S sometime in the next few months? How does Q3 2015 sound? CEO Elon Musk informed investors during his company’s quarterly earnings call Wednesday that the electric SUV would be delayed until the aforementioned quarter to insure quality would be Job No. […]

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Were you hoping to have a Tesla Model X next to your Model S sometime in the next few months? How does Q3 2015 sound?

CEO Elon Musk informed investors during his company’s quarterly earnings call Wednesday that the electric SUV would be delayed until the aforementioned quarter to insure quality would be Job No. 1 as tooling and production step-up to handle both the S and the X:

In anticipation of this effort, we now expect Model X deliveries to start in Q3 of 2015, a few months later than previously expected. This also is a legitimate criticism of Tesla — we prefer to forgo revenue, rather than bring a product to market that does not delight customers. Doing so negatively affects the short term, but positively affects the long term.

In other news, Tesla is discontinuing two colors going forward — green and brown — and if you wanted a P85S, you’re out of luck there, as well: the highest-performing model will now be solely the P85D.

Speaking of the S, Q3 2014 sales have gone well for the automaker, with 7,785 units delivered overall and 907 delivered in a single day, the highest figures ever recorded in a quarter for Tesla. Most of the deliveries were in North America.

Demand for the 85D and P85D is also strong, meriting a boost in production capacity to over 2,000 units per week by the end of 2015.

Finally, the D is beating a path toward the Model 3. Per Jalopnik, Musk proclaimed that the dual-motor powertrain is a precursor to what could happen when the low-cost EV arrives, which may entail a FWD model followed by a D version.

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Zetsche: There’s No Money In The EV Stand http://www.thetruthaboutcars.com/2014/11/zetsche-theres-money-ev-stand/ http://www.thetruthaboutcars.com/2014/11/zetsche-theres-money-ev-stand/#comments Thu, 06 Nov 2014 11:00:01 +0000 http://www.thetruthaboutcars.com/?p=941673 Though Daimler made $780 million off of its recent Tesla stake sale, CEO Dieter Zetsche says there’s no money in the EV stand. AutoblogGreen reports Daimler is leasing its Mercedes B-Class Electric Drive for €399 ($498 USD) a month for 36 months with a down payment of €8,473 ($10,582) due at signing in European showrooms. […]

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Though Daimler made $780 million off of its recent Tesla stake sale, CEO Dieter Zetsche says there’s no money in the EV stand.

AutoblogGreen reports Daimler is leasing its Mercedes B-Class Electric Drive for €399 ($498 USD) a month for 36 months with a down payment of €8,473 ($10,582) due at signing in European showrooms. Were Zetsche to have his way, however, those payments would be higher:

You can reasonably say that nobody today is making a battery-powered vehicle that’s economically viable in its own right. Manufacturers will not see a return within a reasonable time on the billions they’re investing now.

Zetsche’s remarks echo those of Fiat Chrysler Automobiles CEO Sergio Marchionne, who would rather spend $10,000 on a more profitable product than lose said amount every time a Fiat 500e is sold. On the other hand, Nissan and Tesla — the latter having worked with Daimler on the B-Class Electric Drive — have found their respective gambles paying off thus far, though neither are planning to show their hands just yet.

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Consumer Reports: Tesla Model S Ranked “Average” In Reliability Survey http://www.thetruthaboutcars.com/2014/11/consumer-reports-tesla-model-s-ranked-average-reliability-survey/ http://www.thetruthaboutcars.com/2014/11/consumer-reports-tesla-model-s-ranked-average-reliability-survey/#comments Tue, 04 Nov 2014 13:00:33 +0000 http://www.thetruthaboutcars.com/?p=940281 Think your Tesla Model S is all that and a bag of Starbucks Pumpkin Spice Latte Doritos? That it says to the world that you’ve arrived? That you’re standing on the edge of a silver future? Consumer Reports says your car’s just “average.” The publication took information from its recent Annual Reliabilty Survey — which […]

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Tesla Model S Burnout

Think your Tesla Model S is all that and a bag of Starbucks Pumpkin Spice Latte Doritos? That it says to the world that you’ve arrived? That you’re standing on the edge of a silver future? Consumer Reports says your car’s just “average.”

The publication took information from its recent Annual Reliabilty Survey — which Tesla cannot partake in full until it has a second model in the lineup, per the survey’s criteria — and found that the 1,353 Model S owners surveyed had similar service experiences as Consumer Reports had in its long-term tester. The comparison with other vehicles the same age as the premium EV helped it earn the “Average” ranking.

The majority of the reports focused on small problems, such as slow-retracting door handles and body-component issues. That said, the publication will continue to recommend the Model S to its readership, noting it was in good company with other high-end vehicles rated as such, including the Acura RLX.

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Sovereign Subsidies Fuel Norwegian Tesla Registrations http://www.thetruthaboutcars.com/2014/10/sovereign-subsidies-fuel-norwegian-tesla-registrations/ http://www.thetruthaboutcars.com/2014/10/sovereign-subsidies-fuel-norwegian-tesla-registrations/#comments Wed, 29 Oct 2014 11:00:11 +0000 http://www.thetruthaboutcars.com/?p=937762 Not too long ago, Tesla set up shop in Norway, looking to gain some market share in the frosty nation of 5 million. Little did anyone know just how big the share would grow. According to Freakonomics, Norway is the second largest market for the premium EV automaker, with March 2014 being the best month […]

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Tesla_Model_S_delivery_to_Høyres_Nikolai_Astrup_in_Norway

Not too long ago, Tesla set up shop in Norway, looking to gain some market share in the frosty nation of 5 million.

Little did anyone know just how big the share would grow.

According to Freakonomics, Norway is the second largest market for the premium EV automaker, with March 2014 being the best month in Model S orders thus far. However, not only was it the best month for Tesla, it was the best month for breaking a record: 1,493 units registered, the most units ever recorded with Norwegian authorities in one month since Ford moved 1,454 Sierras in May of 1986.

Through the first nine months of 2014, the automaker averaged 435 regisrations per month, despite the price for a new Model S beginning at kr461,000 (~$68,000 USD); never mind how much a used Model S goes for up there.

How is this possible? Subsidies and incentives so huge it would make the Japanese government blush. Those subsidies help bring the price down to levels found among gasoline-powered vehicles, and are fueled, ironically, by a sovereign wealth fund created from Norway’s massive oil reserves. The fund was created to future-proof the nation from “Dutch Disease”: Over-specialization in the production and export of natural resources at the expense of every other industry in a given country.

Alas, those subsidies won’t last long: Only the first 50,000 registrations will enjoy the perks of pushing a green future.

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Tesla, US Bank Team For New Model S Lease Contract http://www.thetruthaboutcars.com/2014/10/tesla-us-bank-team-new-model-s-lease-contract/ http://www.thetruthaboutcars.com/2014/10/tesla-us-bank-team-new-model-s-lease-contract/#comments Wed, 29 Oct 2014 10:00:45 +0000 http://www.thetruthaboutcars.com/?p=937714 Want to own a Model S without worrying about a long-term commitment or how much it’ll hurt your bottom line? CEO Elon Musk has a deal for you. Reuters reports U.S. Bank will offer a lease with a 25 percent decrease in the amount paid per month. Per Musk, the bank was chosen due to […]

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Black Tesla Model S

Want to own a Model S without worrying about a long-term commitment or how much it’ll hurt your bottom line? CEO Elon Musk has a deal for you.

Reuters reports U.S. Bank will offer a lease with a 25 percent decrease in the amount paid per month. Per Musk, the bank was chosen due to having a “much lower cost of capital” than Tesla itself. As in previous leases, the lessee only needs to tap once on the vehicle’s touchscreen to agree the terms and conditions of the contract.

In addition to paying less per month a new Model S, Tesla will also offer its Happiness Guarantee to lessees who sign-on. The guarantee allows the lessee to return their vehicle to the automaker within three months if they find anything wrong with the product. However, Musk cautioned that if they wanted a new vehicle right away, they would need to wait a while. Lessees can also upgrade to a newer model after paying a pass-through fee.

U.S. Bank was chosen last year alongside Wells Fargo to enter into a partnership with the automaker to offer potential owners a 10 percent down payment on a new Model S purchase.

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Minnesotan Tesla Owners Offer Test Drives To Potential Customers In Iowa http://www.thetruthaboutcars.com/2014/10/minnesotan-tesla-owners-offer-test-drives-potential-customers-iowa/ http://www.thetruthaboutcars.com/2014/10/minnesotan-tesla-owners-offer-test-drives-potential-customers-iowa/#comments Tue, 28 Oct 2014 13:00:11 +0000 http://www.thetruthaboutcars.com/?p=936938 Iowa may be one of the few states where Tesla itself can’t directly sell its vehicles to the public, but it doesn’t mean owners can’t at least promote the California automaker to potential customers. KCCI-TV in Des Moines reports a group of Minnesotan Tesla owners drove to a local supermarket in Urbandale last weekend to […]

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Iowa Tesla Model S

Iowa may be one of the few states where Tesla itself can’t directly sell its vehicles to the public, but it doesn’t mean owners can’t at least promote the California automaker to potential customers.

KCCI-TV in Des Moines reports a group of Minnesotan Tesla owners drove to a local supermarket in Urbandale last weekend to give Iowans the opportunity to see the Model S first-hand.

One owner stated that the group aren’t fighting against the ban, but are about “sharing new technology” up-close with those who might otherwise view the vehicles from afar.

The group also gave test drives to would-be owners, something that the state’s government has also prohibited Tesla from conducting on its own.

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Consumer Reports: Infotainment System Woes Mark 2014 Reliability Survey http://www.thetruthaboutcars.com/2014/10/consumer-reports-infotainment-system-woes-mark-2014-reliability-survey/ http://www.thetruthaboutcars.com/2014/10/consumer-reports-infotainment-system-woes-mark-2014-reliability-survey/#comments Tue, 28 Oct 2014 10:00:36 +0000 http://www.thetruthaboutcars.com/?p=936826 Consumer Reports released its Annual Reliability Survey for this year, focusing some of the attention on the woes experienced by a handful of infotainment systems. According to the publication, the absolute worse of the pack in 2014 was Infiniti’s InTouch system in the new Q50, with over one in five owners wanting to take a […]

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Infiniti InTouch - Infiniti Q50

Consumer Reports released its Annual Reliability Survey for this year, focusing some of the attention on the woes experienced by a handful of infotainment systems.

According to the publication, the absolute worse of the pack in 2014 was Infiniti’s InTouch system in the new Q50, with over one in five owners wanting to take a crowbar to the whole thing. The brand itself took a beating, dropping 14 points to 20th out of 28 as a result of the Q50’s issues, as well as the overall reliability issues in the QX60. Other infotainment systems ironing out the bugs included Ford’s MyTouch, Honda’s HondaLink and Fiat Chrysler Automobile’s UConnect.

Concerning overall reliability, Lexus once again took the top of the podium, while Toyota and Mazda respectively brought home silver and bronze, and Honda finished in fourth. Buick, meanwhile, was the only brand among the Detroit Three to place in the top 10, jumping from 16th to sixth on the strength of its entire portfolio.

As for why the other Detroit brands failed to reach the top 10, Consumer Reports says domestic small and compact cars, along with full-size trucks, are holding everyone back. Tesla also didn’t make the list, but that was due to criteria than low quality: the publication only rates brands with a minimum of two models, a situation that will be remedied when the Model X rolls out next year.

Finally, Audi took fifth behind the Japanese makes, while Porsche took ninth ahead of Kia. BMW and Volvo remained within the top 20. Only Mercedes-Benz took a hit among the Europeans this year, falling 11 spots to 24th thanks to the new CLA and S classes.

The Consumer Reports 2014 reliability survey obtained its information from 1.1 million vehicles, the largest survey of its kind in the publication’s history.

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Toyota Sells Some Of Its Stake In Tesla http://www.thetruthaboutcars.com/2014/10/toyota-sells-stake-tesla/ http://www.thetruthaboutcars.com/2014/10/toyota-sells-stake-tesla/#comments Mon, 27 Oct 2014 11:00:51 +0000 http://www.thetruthaboutcars.com/?p=935994 Daimler wasn’t the only to sell its Tesla shares last week, as Toyota has done the same with some of its shares in the company. Bloomberg reports the automaker sold part of its 2.4 percent stake in the company Friday, though no details were given as to how much of the $690 million ROI was […]

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2013 Toyota RAV4 EV, Exterior, Photography Courtesy of Alex L. Dykes

Daimler wasn’t the only to sell its Tesla shares last week, as Toyota has done the same with some of its shares in the company.

Bloomberg reports the automaker sold part of its 2.4 percent stake in the company Friday, though no details were given as to how much of the $690 million ROI was brought back into its coffers. The sale follows Daimler’s full divestment from the company, where it turned over its 4 percent stake for $780 million.

Toyota and Tesla are also winding down their RAV4 EV program before going their separate ways, where the latter supplied battery packs for the former’s 2,600 electrified crossovers over the past three years.

Though the two differ on what future they see — Toyota prefers hydrogen, Tesla opts for more electricity — Toyota representative Kayo Doi says her employer has “a good relationship” with Tesla, “and will evaluate the feasibility of working together on future projects.”

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Gilbert Calls Out Dealers In Wake Of Reinforced Michigan Direct Sales Ban http://www.thetruthaboutcars.com/2014/10/gilbert-calls-dealers-wake-reinforced-michigan-direct-sales-ban/ http://www.thetruthaboutcars.com/2014/10/gilbert-calls-dealers-wake-reinforced-michigan-direct-sales-ban/#comments Thu, 23 Oct 2014 13:00:28 +0000 http://www.thetruthaboutcars.com/?p=935370 Tuesday, Michigan governor Rick Snyder signed into law a bill that included language reinforcing a direct sales ban established over 30 years ago. Wednesday? Detroit billionaire Dan Gilbert — best known as the majority owner of the Cleveland Cavaliers who penned a letter in Comic Sans typeface in response to LeBron James making the decision […]

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Cavaliers Brown Basketball

Tuesday, Michigan governor Rick Snyder signed into law a bill that included language reinforcing a direct sales ban established over 30 years ago.

Wednesday? Detroit billionaire Dan Gilbert — best known as the majority owner of the Cleveland Cavaliers who penned a letter in Comic Sans typeface in response to LeBron James making the decision to play for the Miami Heat — had a few words to say about this decision.

According to Detroit Free Press, Gilbert was interviewing fellow NBA team owner Mark Cuban while guest-hosting an episode of CNBC’s “Squawk Box” when he brought up the signing of HB 5606, now known as Michigan Public Act 354 of 2014, proclaiming the move “sends a bad message” as far as how much influence lobbyists — especially the auto dealer lobby — have over legislators. He added that Michigan dealers should “man up” and compete with Tesla instead of forcing the EV automaker to sell through a franchise network.

Morgan Stanley automotive analyst Adam Jonas agreed with Gilbert in a note to the financial giant’s clients, stating it was only “a matter of time” that the issue of direct sales — and Tesla’s link to them — would “likely mushroom into a national issue.” He also said legislation protecting the status quo “exist to support the weakest link in the network.”

On the other side, Detroit Regional Chamber of Commerce president Sandy Baruah believes Detroit “should have a business environment where all participants play by a common set of rules.” The chamber also supported the signing, and says it looks forward to the further examination Snyder called for in light of the reinforcement.

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Nissan, Tesla Sold Most California ZEV Credits In 2013 http://www.thetruthaboutcars.com/2014/10/nissan-tesla-sold-california-zev-credits-2013/ http://www.thetruthaboutcars.com/2014/10/nissan-tesla-sold-california-zev-credits-2013/#comments Thu, 23 Oct 2014 12:00:13 +0000 http://www.thetruthaboutcars.com/?p=935346 In one corner of the California ZEV credit octagon, the Tesla and its air of luxury. On the other side, the Nissan and its down-to-earth vibe. Who won this year? Nissan. AutoblogGreen reports the Japanese automaker sold more ZEV credits than the Californians, though not by much: 663.6 to 650.195. Fiat Chrysler Automobiles pulled up […]

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In one corner of the California ZEV credit octagon, the Tesla and its air of luxury. On the other side, the Nissan and its down-to-earth vibe.

Who won this year? Nissan.

AutoblogGreen reports the Japanese automaker sold more ZEV credits than the Californians, though not by much: 663.6 to 650.195. Fiat Chrysler Automobiles pulled up at a distant third with 235.2 sold, thanks to the existence of the Fiat 500e.

As for who bought them — purchase price per credit is permanently shrouded in secrecy — Mercedes likely took Nissan’s credits for the former’s less green offerings, Honda following behind with 542.5 purchased. FCA, again, placed third with 237.8, cancelling out what the 500e gained.

Finally, California residents brought home 3.5 million vehicles during the period ending last month, with 38,000 EVs, 30,000 PHEVs and 570,000 hybrids roaming the streets and highways.

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Daimler Financially Divests From Tesla, BMW Could Step In http://www.thetruthaboutcars.com/2014/10/daimler-financially-divests-tesla-bmw-step/ http://www.thetruthaboutcars.com/2014/10/daimler-financially-divests-tesla-bmw-step/#comments Thu, 23 Oct 2014 11:00:59 +0000 http://www.thetruthaboutcars.com/?p=935314 Over five years ago, Daimler AG acquired a 9.1 percent interest in Tesla, gaining 1,000 battery packs for its Smart EV in exchange for helping to put the Model S on the road to production. Wednesday, Daimler sold its remaining 4 percent in the company, netting $780 million for the trouble. Despite the divestiture, both […]

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Mercedes-Benz B-Klasse Electric Drive – Laden / Mercedes-Benz

Over five years ago, Daimler AG acquired a 9.1 percent interest in Tesla, gaining 1,000 battery packs for its Smart EV in exchange for helping to put the Model S on the road to production.

Wednesday, Daimler sold its remaining 4 percent in the company, netting $780 million for the trouble.

Despite the divestiture, both automakers will continue cooperating on ongoing projects, such as the Mercedes-Benz B-Class Electric Drive recently launched in the United States. Daimler financial management board member Bodo Uebber said the sale would allow Tesla to “broaden its investor base,” adding that stock ownership wasn’t necessary to the overall relationship between the two companies.

As for who Tesla could now court, Forbes believes BMW could be drawn further into its own relationship with the company. International Strategy & Investment analyst Arndt Ellinghorst believes Tesla would benefit more from BMW’s carbon-fiber technology — put to great use in the i Series — than from providing batteries to Mercedes. Both companies met in June to discuss standardization for a potential EV charging network.

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Tesla Direct Sales Ban Reinforced In Michigan, GM Supported Signing http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/ http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/#comments Wed, 22 Oct 2014 10:00:19 +0000 http://www.thetruthaboutcars.com/?p=934698 It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced. Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a […]

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2013 Tesla Model S Summerside Lighthouse

It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced.

Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a law already on the books:

This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan — because this is already prohibited under Michigan law.

Though Tesla can do little more than open a showroom and a repair shop for now, Snyder said lawmakers should “always be willing to re-examine” legislation with the aim of improving the consumer’s experience “in a more efficient and less costly manner.”

Meanwhile, at least one automaker is happy PA 354 is on the books. In a one-sentence press release, General Motors had this to say prior to the bill’s signing:

We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it.

Per Jalopnik, GM sent a similar message to Ohio governor John Kasich back in March of this year regarding SB137, which would have allowed Tesla to directly sell to customers in the state; the bill later died in the Ohio Senate.

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Tesla’s First Battery Swap Station Opening Soon http://www.thetruthaboutcars.com/2014/10/teslas-first-battery-swap-station-opening-soon/ http://www.thetruthaboutcars.com/2014/10/teslas-first-battery-swap-station-opening-soon/#comments Fri, 17 Oct 2014 13:00:18 +0000 http://www.thetruthaboutcars.com/?p=932362 While Tesla owners — and owners of all EVs, for that matter — may be waiting a couple of years before titanium oxide anodes bring battery charging levels down to the 3- to 5-minute fueling times found at a given gas station, CEO Elon Musk has another option for them to consider: Battery-pack swapping. SlashGear […]

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Tesla Supercharger

While Tesla owners — and owners of all EVs, for that matter — may be waiting a couple of years before titanium oxide anodes bring battery charging levels down to the 3- to 5-minute fueling times found at a given gas station, CEO Elon Musk has another option for them to consider: Battery-pack swapping.

SlashGear reports the first swapping station will come online within the next few months, offering S and X owners the option of allowing robots to swap a drained pack for a fully charged unit from underneath the car within 90 seconds. Not only is this method faster than refueling at the local ARCO, but it blows away the Supercharger’s 30-minute charging time, as well.

The pack swap would also enable owners to retrieve their original packs later on, or, should retrieval become inconvenient, pay the difference for the new pack. Critics note this could lead to supply problems, where some stations have batteries waiting for their owners to return, while others run short of new packs.

The first station will open somewhere between Los Angeles and San Francisco, though further details were scant.

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Michigan May Ban Tesla Direct Sales Pending Governor’s Signature http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/ http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/#comments Thu, 16 Oct 2014 12:00:00 +0000 http://www.thetruthaboutcars.com/?p=931978 Sitting on Michigan governor Rick Snyder’s desk is a bill that would add the state to the list of places where Tesla cannot sell its vehicles directly to the public, waiting for his pen to seal the deal. Automotive News reports Michigan H.B. 5606 was originally meant to determine whether or not automakers could stop […]

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Sitting on Michigan governor Rick Snyder’s desk is a bill that would add the state to the list of places where Tesla cannot sell its vehicles directly to the public, waiting for his pen to seal the deal.

Automotive News reports Michigan H.B. 5606 was originally meant to determine whether or not automakers could stop their dealership networks from charging consumers certain fees when it was introduced in May, only for the anti-Tesla language to be appended to the bill by the state senate prior to passage — and without notice or debate — during the first two days of October. The bill then returned to the state house, passing 106 to 1 before landing on Snyder’s desk.

On the third day, Tesla contacted the governor’s office to have “a very open and productive dialogue” with those in the Snyder administration, according to vice president of business development Diarmuid O’Connell. He added that the automaker had been watching the bill since its introduction, citing its experience with other bills where anti-Tesla language had been stealthily implemented.

Meanwhile, Michigan Automobile Dealers Association executive vice president Terry Burns applauded the bill, proclaiming that while Tesla are “more than welcome” to do business in Michigan, he would hope they do so based on state law:

One good thing about being governor, you get to do whatever you think is appropriate at the time. We hope and look forward to him signing the bill and clarifying the language, and we hope he does it soon.

As for when the governor would decide the fate of H.B. 5606, a representative said the bill was being evaluated, but nothing has been decided thus far. Snyder has until October 21 to sign.

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