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. Wed, 26 Nov 2014 16:44:37 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 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: 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 […]

The post Tesla: New Model X Orders To Be Fulfilled ‘Well Into 2016′ appeared first on The Truth About Cars.

]]>
tesla-model-x-09

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, which will undergo crash testing 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.

The post Tesla: New Model X Orders To Be Fulfilled ‘Well Into 2016′ appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/tesla-new-model-x-orders-fulfilled-well-2016/feed/ 4
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 Security Exchange Commission, if the tin-foil hat crowd can be believed, anyway. AutoblogGreen reports an online publication called Probes Reporter filed a Freedom of Information Act request with the SEC about Tesla, along with a number of corporations the publication is interested in learning more about. Based on […]

The post Online Publication Believes Tesla Is Under SEC Investigation appeared first on The Truth About Cars.

]]>
2013 Tesla Model S P85 Fishing boat

Tesla may be under investigation by the Security Exchange Commission, if the tin-foil hat crowd can be believed, anyway.

AutoblogGreen reports an online publication called Probes Reporter filed a Freedom of Information Act 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.

The post Online Publication Believes Tesla Is Under SEC Investigation appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/online-publication-believes-tesla-sec-investigation/feed/ 7
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 […]

The post Musk: I Won’t Be Tesla’s CEO Forever appeared first on The Truth About Cars.

]]>
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.

The post Musk: I Won’t Be Tesla’s CEO Forever appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/musk-wont-teslas-ceo-forever/feed/ 13
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 […]

The post Tesla Fights Georgia Dealers Over Direct Sales Model appeared first on The Truth About Cars.

]]>
tesla-store-opening-in-westfield-mall-london-oct-2013_100444200_l

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.

The post Tesla Fights Georgia Dealers Over Direct Sales Model appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/tesla-fights-georgia-dealers-direct-sales-model/feed/ 22
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 […]

The post Merrill Lynch: Tesla Sitting On 3K Cars Despite Alleged Scarcity appeared first on The Truth About Cars.

]]>
10352722_h15508358

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.”

The post Merrill Lynch: Tesla Sitting On 3K Cars Despite Alleged Scarcity appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/merrill-lynch-tesla-sitting-3k-cars-despite-alleged-scarcity/feed/ 126
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 […]

The post Jackson: Michigan’s Anti-Tesla Legislation “Unnecessary Protectionism” appeared first on The Truth About Cars.

]]>
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.

The post Jackson: Michigan’s Anti-Tesla Legislation “Unnecessary Protectionism” appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/jackson-michigans-anti-tesla-legislation-unnecessary-protectionism/feed/ 21
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 […]

The post Tesla Loses $75M In Net GAAP Income In Q3 2015 appeared first on The Truth About Cars.

]]>
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.

The post Tesla Loses $75M In Net GAAP Income In Q3 2015 appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/tesla-loses-75m-net-gaap-income-q3-2015/feed/ 67
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. […]

The post Tesla: Model X Delayed Until Q3 2015, D Models In High Demand appeared first on The Truth About Cars.

]]>
tesla-model-x-09

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.

The post Tesla: Model X Delayed Until Q3 2015, D Models In High Demand appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/tesla-model-x-delayed-q3-2015-d-models-high-demand/feed/ 42
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. […]

The post Zetsche: There’s No Money In The EV Stand appeared first on The Truth About Cars.

]]>
2014-b-class-electric-drive-3

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.

The post Zetsche: There’s No Money In The EV Stand appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/zetsche-theres-money-ev-stand/feed/ 33
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 […]

The post Consumer Reports: Tesla Model S Ranked “Average” In Reliability Survey appeared first on The Truth About Cars.

]]>
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.

The post Consumer Reports: Tesla Model S Ranked “Average” In Reliability Survey appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/11/consumer-reports-tesla-model-s-ranked-average-reliability-survey/feed/ 72
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 […]

The post Sovereign Subsidies Fuel Norwegian Tesla Registrations appeared first on The Truth About Cars.

]]>
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.

The post Sovereign Subsidies Fuel Norwegian Tesla Registrations appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/sovereign-subsidies-fuel-norwegian-tesla-registrations/feed/ 30
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 […]

The post Tesla, US Bank Team For New Model S Lease Contract appeared first on The Truth About Cars.

]]>
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.

The post Tesla, US Bank Team For New Model S Lease Contract appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/tesla-us-bank-team-new-model-s-lease-contract/feed/ 2
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 […]

The post Minnesotan Tesla Owners Offer Test Drives To Potential Customers In Iowa appeared first on The Truth About Cars.

]]>
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.

The post Minnesotan Tesla Owners Offer Test Drives To Potential Customers In Iowa appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/minnesotan-tesla-owners-offer-test-drives-potential-customers-iowa/feed/ 14
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 […]

The post Consumer Reports: Infotainment System Woes Mark 2014 Reliability Survey appeared first on The Truth About Cars.

]]>
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.

consumer-reports-reliability-list-1

The post Consumer Reports: Infotainment System Woes Mark 2014 Reliability Survey appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/consumer-reports-infotainment-system-woes-mark-2014-reliability-survey/feed/ 91
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 […]

The post Toyota Sells Some Of Its Stake In Tesla appeared first on The Truth About Cars.

]]>
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.”

The post Toyota Sells Some Of Its Stake In Tesla appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/toyota-sells-stake-tesla/feed/ 4
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 […]

The post Gilbert Calls Out Dealers In Wake Of Reinforced Michigan Direct Sales Ban appeared first on The Truth About Cars.

]]>
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.

The post Gilbert Calls Out Dealers In Wake Of Reinforced Michigan Direct Sales Ban appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/gilbert-calls-dealers-wake-reinforced-michigan-direct-sales-ban/feed/ 83
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 […]

The post Nissan, Tesla Sold Most California ZEV Credits In 2013 appeared first on The Truth About Cars.

]]>
2013-nissan-leaf-7-1

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.

The post Nissan, Tesla Sold Most California ZEV Credits In 2013 appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/nissan-tesla-sold-california-zev-credits-2013/feed/ 7
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 […]

The post Daimler Financially Divests From Tesla, BMW Could Step In appeared first on The Truth About Cars.

]]>
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.

The post Daimler Financially Divests From Tesla, BMW Could Step In appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/daimler-financially-divests-tesla-bmw-step/feed/ 3
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 […]

The post Tesla Direct Sales Ban Reinforced In Michigan, GM Supported Signing appeared first on The Truth About Cars.

]]>
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.

The post Tesla Direct Sales Ban Reinforced In Michigan, GM Supported Signing appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/feed/ 44
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 […]

The post Tesla’s First Battery Swap Station Opening Soon appeared first on The Truth About Cars.

]]>
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.

The post Tesla’s First Battery Swap Station Opening Soon appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/teslas-first-battery-swap-station-opening-soon/feed/ 64
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 […]

The post Michigan May Ban Tesla Direct Sales Pending Governor’s Signature appeared first on The Truth About Cars.

]]>
tesla-store-opening-in-westfield-mall-london-oct-2013_100444202_l

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.

The post Michigan May Ban Tesla Direct Sales Pending Governor’s Signature appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/feed/ 37
Panasonic Investing “Tens Of Billions” Of Yen In Tesla Gigafactory http://www.thetruthaboutcars.com/2014/10/panasonic-investing-tens-billions-yen-tesla-gigafactory/ http://www.thetruthaboutcars.com/2014/10/panasonic-investing-tens-billions-yen-tesla-gigafactory/#comments Mon, 13 Oct 2014 13:00:57 +0000 http://www.thetruthaboutcars.com/?p=930306 Just how much will Panasonic throw down on the table when it comes time to invest in Tesla’s new Gigafactory near Reno, Nev.? According to CEO Kazuhiro Tsuga, “tens of billions” of yen. Reuters reports Tsuga didn’t think the current exchange rate — which knocks his investment quote down to tens, if not hundreds, of […]

The post Panasonic Investing “Tens Of Billions” Of Yen In Tesla Gigafactory appeared first on The Truth About Cars.

]]>
Super GT Panasonic Toyota Prius

Just how much will Panasonic throw down on the table when it comes time to invest in Tesla’s new Gigafactory near Reno, Nev.? According to CEO Kazuhiro Tsuga, “tens of billions” of yen.

Reuters reports Tsuga didn’t think the current exchange rate — which knocks his investment quote down to tens, if not hundreds, of millions of dollars — was “bad,” so long as the exchange remained stable.

As reported earlier this year, Panasonic wants the Gigafactory all to itself, investing in all levels of production at the upcoming plant. The battery producer also agreed to manufacture lithium ion cells for Tesla’s and other manufacturers’ battery packs as part of the overall investment deal.

The post Panasonic Investing “Tens Of Billions” Of Yen In Tesla Gigafactory appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/panasonic-investing-tens-billions-yen-tesla-gigafactory/feed/ 23
Tesla: The “D” Stands For Dual-Motor http://www.thetruthaboutcars.com/2014/10/tesla-d-stands-dual-motor/ http://www.thetruthaboutcars.com/2014/10/tesla-d-stands-dual-motor/#comments Fri, 10 Oct 2014 10:00:10 +0000 http://www.thetruthaboutcars.com/?p=928330 You’ve waited for this, now here it comes: Tesla is dropping in a second electric motor up front for more power and better weight distribution in the Model S. Its name? D. Road & Track reports all three dual-motor models of the S — 60D, 85D and P85D — will have a 118-horsepower mid-size electric […]

The post Tesla: The “D” Stands For Dual-Motor appeared first on The Truth About Cars.

]]>
Tesla P85D Backside

You’ve waited for this, now here it comes: Tesla is dropping in a second electric motor up front for more power and better weight distribution in the Model S.

Its name? D.

Road & Track reports all three dual-motor models of the S — 60D, 85D and P85D — will have a 118-horsepower mid-size electric motor powering the front wheels. The same motor will also move the rear pair in the 60D and 85D, while customers who opt for the raw power of the P85D will have the same 470-horsepower motor in the back as the original P85.

The power duo under the P85D will deliver a combined 690 horsepower and 687 lb-ft of torque when the hammer is dropped, moving from nil to 60 in 3.2 seconds — spanking Charger Hellcats and Panameras off the line — with the quarter disappearing in 11.8 seconds. CEO Elon Musk stated his team benchmarked the McLaren F1 for the top-end model’s acceleration performance.

As for range, the 85D will pull into the Supercharger after 295 miles, five short of the magical 300-mile barrier. The 60D will do the same after 225 miles, and the P85D arrives after 275 miles.

Aside from the new models — all of which are available for order at this moment, with delivery set for December for P85D models, February for the others — the Model S and future vehicles will have Autopilot, a semi-autonomous drive system that will take over from the driver when needed, doing everything from speeding up and slowing down in heavy traffic, to switching lanes after the driver signals where they wish to go. The system — which is in every Model S assembled from two weeks ago forward, and will be enabled via software update in the next few months — uses a forward-facing camera and an array of 12 sensors, providing a 360-degree view of the world up to 16 feet away.

Finally, stopping all of this new power comes from an electromechanical braking setup — the Porsche 918 is the only other vehicle to use the technology — which Autopilot can engage in whatever manner is most appropriate in a given situation, from hard panic stops to red-carpet style gentle braking. Tesla can fine-tune the system for desired brake feel, as well.

Telsa-Dual-Motor-P85D-sm

The post Tesla: The “D” Stands For Dual-Motor appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/tesla-d-stands-dual-motor/feed/ 84
Tesla Preparing To Enter CPO Market By 2016 http://www.thetruthaboutcars.com/2014/10/tesla-preparing-enter-cpo-market-2016/ http://www.thetruthaboutcars.com/2014/10/tesla-preparing-enter-cpo-market-2016/#comments Tue, 07 Oct 2014 13:00:49 +0000 http://www.thetruthaboutcars.com/?p=927409 Always wanted to own a Tesla Model S, but couldn’t get past the $71,070 base price? CEO Elon Musk has a plan to make it easier to bring one home: CPO sales. Automotive News reports the automaker is working on a certified pre-owned program that would be offered through its stores, competing against similar programs […]

The post Tesla Preparing To Enter CPO Market By 2016 appeared first on The Truth About Cars.

]]>
2013-Tesla-Model-S-Rear

Always wanted to own a Tesla Model S, but couldn’t get past the $71,070 base price? CEO Elon Musk has a plan to make it easier to bring one home: CPO sales.

Automotive News reports the automaker is working on a certified pre-owned program that would be offered through its stores, competing against similar programs by the likes of BMW and Mercedes-Benz, as explained by Tesla’s vice president of communications, Simon Sproule:

With the Model S fleet now heading toward the first cars hitting three years old, we are looking at CPO and how best to structure.

In addition, Musk himself proclaimed in 2013 that he would personally honor the buyback guarantee his company issued to owners at the time of purchase, allowing them to recover 43 percent to 50 percent of the sticker price after three years. Should this group take him up, the first trade-ins would arrive for refurbishing in the spring of 2016 — if not earlier for those offloading their Model S for a Model X — with more to come the following year.

Just like with Tesla’s new cars, the CPO models would be sold at its stores, with the potential to capture as much as $10,000 per used model sold, much more than when the models first left the showroom according to TrueCar president John Krafcik.

Challenges for the company’s entry into the CPO market include: budgeting for model refurbishing and sales; more legal battles to be allowed to directly sell used models; the potential for depreciation to be lower than benchmarked — the Mercedes S-Class’ trade-in value formed the basis for Tesla’s buyback program; owners taking their vehicles to other used-car dealers or the private market; and the upcoming Model III.

The post Tesla Preparing To Enter CPO Market By 2016 appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/10/tesla-preparing-enter-cpo-market-2016/feed/ 19
Goldman Sachs: Tesla Needs $6B In Capital To Meet “Disruptive” Growth http://www.thetruthaboutcars.com/2014/09/goldman-sachs-tesla-needs-6b-capital-meet-disruptive-growth/ http://www.thetruthaboutcars.com/2014/09/goldman-sachs-tesla-needs-6b-capital-meet-disruptive-growth/#comments Thu, 25 Sep 2014 10:00:40 +0000 http://www.thetruthaboutcars.com/?p=918314 According to the financial overlords of Goldman Sachs, Tesla would need an $6 billion in capital within the next 11 years should its products become truly disruptive to the automotive industry. Per Bloomberg, Goldman Sachs analyst Patrick Archambault delivered that number to his employer’s clients Wednesday, based on what he believes would be needed should […]

The post Goldman Sachs: Tesla Needs $6B In Capital To Meet “Disruptive” Growth appeared first on The Truth About Cars.

]]>
Tesla HQ

According to the financial overlords of Goldman Sachs, Tesla would need an $6 billion in capital within the next 11 years should its products become truly disruptive to the automotive industry.

Per Bloomberg, Goldman Sachs analyst Patrick Archambault delivered that number to his employer’s clients Wednesday, based on what he believes would be needed should Tesla’s electric lineup prove as popular as the iPhone 6 or Model T. The proclamation knocked the automaker’s shares down 1.7 percent to $259.32 on the trading floor in New York at the final bell.

Though Tesla CEO Elon Musk plans to sell a minimum of 500,000 units per year down the road, Archambault claims the capital needed would push annual production from 1.8 million to 3.2 million units by 2025. Other projects, such as the upcoming Gigafactory battery pack plant in Reno, Nev., would also need some of the projected $6 billion in additional capital. He adds that most of the $6 billion would be distributed from 2017 through 2025.

Meanwhile, Tesla has not given its own forecast for capital spending, according to representative Simon Sproule.

The post Goldman Sachs: Tesla Needs $6B In Capital To Meet “Disruptive” Growth appeared first on The Truth About Cars.

]]>
http://www.thetruthaboutcars.com/2014/09/goldman-sachs-tesla-needs-6b-capital-meet-disruptive-growth/feed/ 29