By on August 8, 2017

tesla model 3

Tesla Motors launched the Model 3 last month and has been scrambling to improve production volume as over 500,000 eagerly await delivery. However, by the time Tesla hits its targeted production rate of 10,000 units per week in 2018, it is still going to have months — if not a full year — of orders sizzling on the back burner.

It’s not the worst problem to have, since each reservation holder tossed down a $1,000 deposit. But CEO Elon Musk is aware that meeting demand is going to be an uphill battle. “We’re going to go through at least six months of manufacturing hell,” Musk told the press ahead of Model 3 launch event.

With the company already having spent over $2 billion in capital this year, restocking the safe is probably a good idea. As an upstart automaker framing itself as going into battle with traditional manufacturers, Tesla is issuing $1.5 billion in junky war bonds to fund the coming onslaught.  (Read More…)

By on August 1, 2017

Tesla Model 3, Image: Tesla

The production Tesla Model 3, revealed in full at a Friday evening handover ceremony, is an impressive vehicle, but it’s also the California automaker’s most important vehicle. With 220 miles of range in stripped-down base trim, or 310 miles for the starting sum of $44,ooo (the only version available at launch), the curvaceous sedan has no shortage of fans. It’s also facing no shortage of threats.

The company’s future as a mass-market “disruptor” of the American automotive landscape hinges on the Model 3’s trouble-free production at Tesla’s Fremont assembly plant, as well as timely deliveries to the half-million reservation holders. Unforeseen quality issues, a breakdown in the supply chain, or worker strife could all conspire to give the vehicle — and company — a black eye.

After a year spent giving investors everything they wished for, the company’s once-skyrocketing stock isn’t on the same firm ground as before. The first trading day after the event reflected this. Investors are nervous about a number of things: the model’s easily inflatable price, the company’s extremely lofty production target, and CEO Elon Musk’s repeated mentions of “hell.” (Read More…)

By on July 29, 2017

Tesla Model 3, Image: Tesla

Perhaps the most anticipated automotive event of the year (Tesla disciples might say millenium) took place in California last night, as electric car guru Elon Musk handed over the first 30 production Tesla Model 3 sedans to customers — most, if not all, of them employees — at a glitzy, livestreamed event.

Eyesight was restored to the blind. Others rose from their wheelchairs, walking for the first time in years. Okay, that’s not true, but the depths to which some Tesla fans deify Musk and his car company cannot be understated. Certainly, after seeing the final production model, learning its specifications, and hearing Tesla’s lofty production plans, even a cynic drowning in a vast ocean of media-driven hype can’t help but feel impressed.

Hailed as the first affordable, long-range, mass-produced electric car — a crown stolen by the Chevrolet Bolt months ago — the Model 3 will retail for $35,000 before federal incentives, but not just yet. The only version available at launch is the $44,000 Long Range model, good for 310 miles of range per charge.

The 220-mile base sedan, which carries that vaunted lower sticker price, won’t be available until this fall. So, what can the roughly 500,000 reservation holders expect? If they’re on a budget, black had better be their favorite color. (Read More…)

By on July 3, 2017

tesla-model-3

Production of the Model 3 is set to begin two weeks ahead of schedule, according to Tesla Motors chief executive and second most famous Twitter user in America, Elon Musk. While that news would probably be more exciting if we had ever been given a definitive timeline for the vehicle, the CEO claims it should equate to the very first car rolling off the assembly line by the end of this week.

“Model 3 passed all regulatory requirements for production two weeks ahead of schedule. Expecting to complete SN1 on Friday,” Musk tweeted late last night, causing half a million Tesla fans to engage in a collective round of giddy, high-pitched squealing. However, the most enthralled members of the company’s rabid fan base are likely to be the 30 people who get to wrap their quivering digits around the steering wheel of their very own Model 3 before the end of July.  (Read More…)

By on June 29, 2017

2016 BMW 330e iPerformance - Image: BMWBMW intends to unveil an all-electric 3 Series at the Munich Auto Show in September, according to German business newspaper Handelsblatt.

Will BMW report the intake of hundreds of thousands of $1,000 deposits for an all-electric, next-generation BMW 3 Series? Probably not.

But which car are you more likely to purchase: a 3 Series EV from long-heralded BMW with roughly 250 miles of range, or the much-hyped, oft-discussed Model 3 from nascent Tesla, production of which should be in full swing by the time the 3 Series EV appears?

This may be the next Mustang vs. Camaro, a quasi Accord vs. Camry battle to end all Accord vs. Camry battles, an F-150 vs. Silverado skirmish without the 87 octane. (Read More…)

By on May 4, 2017

Elon Musk + Tesla Model S Circa 2011

Tesla CEO Elon Musk isn’t getting any. By that we mean profits, as the electric automaker reported a $397 million first-quarter loss yesterday, adding to the red ink spilled in the previous quarter.

While the company’s revenue rose 18.4 percent in Q1 and deliveries climbed 12 percent, spending on Model 3 production more than offset the increase in cash flow. Musk took the loss in stride, playing the long game in a quarterly investors call, and claimed a combination of higher production numbers and lower operating costs will send those gray clouds packing.

Finances aside, the conference call yielded far more interesting topics, including details of the upcoming Model Y. Also, it seems people are becoming confused by Tesla’s naming strategy, and Musk has no one but Ford — and a dirty mind — to blame. (Read More…)

By on March 25, 2017

Tesla Model 3 Prototype on road, Image: Tesla Motors

Tesla founder Elon Musk recently cleared the air in regards to the automaker’s upcoming Model 3 sedan, telling his Twitter followers the more budget friendly Tesla won’t outperform the Model S.
(Read More…)

By on March 20, 2017

Tesla Model 3 Unveil, Image: Tesla Motors

After deciding that its analytic tools are top-notch and will tell it everything it needs to know, Tesla is skipping the “beta” phase of the Model 3’s development cycle.

In a conference call to investors last week, Tesla CEO Elon Musk said the automaker doesn’t need to bother with that crop of pre-production models. Early release model 3s built on the company’s production assembly line — not specialty one-offs built in a corner of the shop — should be rolling by this week or next, he said. (Read More…)

By on February 9, 2017

Tesla Model 3 Unveil, Image: Tesla Motors

Tesla is planning to halt vehicle production for one week in February to prepare for Model 3 pre-production, which the company says will begin February 20.

According to Reuters, the short-term shutdown of its Fremont, California assembly plant will give Tesla time to add capacity to its paint shop as it plans for full-scale production of the Model 3.

(Read More…)

By on October 6, 2016

Tesla Model 3 Unveil, Image: Tesla Motors

Since General Motors showed the Chevrolet Bolt EV Concept at the 2015 North American International Auto Show, the company has been adamant the car would compete with Tesla’s upcoming Model 3 in terms of pricing, range and certainly in terms of consumer adoption.

The Teslarati, on the other hand, don’t seem to agree.

Tesla’s stated modus operandi since inception is “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.” But for fans of the Silicon Valley brand the M.O has been twisted into Tesla or bust, leading to straw man arguments and arbitrary analysis.

Electrek’s latest Tesla versus Chevy op-ed by Fred Lambert is a perfect example. (Read More…)

By on September 20, 2016

2017 Chevrolet Bolt EV

After revealing the 2017 Chevrolet Bolt’s surprising EPA-estimated range (238 miles), General Motors has now rolled out the price for its long-awaited electric car.

What will it take to get into Chevy’s EV? $37,495, which includes destination. A federal tax credit lowers that to $29,995, or five bucks below the “affordable car threshold” so sought after by EV builders. (Read More…)

By on August 9, 2016

BMW ad

BMW has the plug-in sedan you want, no waiting.

That’s the message in Bimmer’s new ad for the 330e plug-in hybrid, which takes a not very subtle jab at would-be Tesla Model 3 buyers. Titled “Wait or Drive” (get it?), the television commercial plays the tiniest of violins for the 373,000 buyers who put $1,000 down on a car they might not see for a couple of years. (Read More…)

By on July 7, 2016

1985 Honda Accord, Image: Honda via NetCarShow

Electric automaker Tesla Motors has collected more than 400,000 deposits from customers for its 2018 Model 3 sedan, despite having little more than rough renderings of the car to show prospects. This is a remarkable achievement that speaks to its groundbreaking products and the cult-like following of Tesla CEO Elon Musk.

People standing in line to put down deposits and then be willing to wait for a hot car is not without precedent. I sold Honda automobiles during the 1980s and the similarities to today’s Teslamania is striking.

Memo to Musk: If you can indeed increase your production five-fold in two years, I am sure you will move 400,000 Model 3s, but most of them won’t go to today’s deposit holders.

Allow me to explain. The scene was Benson Honda in San Antonio. The year was 1984 … (Read More…)

By on June 23, 2016

tesla-model-s-logo

It was a little terrifying watching the question-and-answer session near the end of Tesla’s livestreamed annual shareholder’s meeting, and it wasn’t just the lady asking about goji berries.

All of the speakers — well, the majority of them — seemed to possess a stratospheric level of admiration for Tesla CEO Elon Musk. Like religious (or political) disciples, the trust they placed in the man’s brilliance and decision-making abilities seemed limitless.

Well, after this week’s announcement that Tesla is offering to buy SolarCity — a solar energy provider co-founded and chaired by Musk — cracks are forming in his circle of supporters, especially in the financial realm. (Read More…)

By on June 20, 2016

Tesla Supercharger With Model S At Tesla Dealership

South Koreans are used to having a bunch of Americans hanging around, but the arrival of a group of Tesla employees won’t be welcomed by executives at Hyundai.

Tesla wants into the South Korean marketplace, and just posted job listings for sales and engineering positions in the Asian country, Bloomberg reports. Already registered in South Korea, the automaker plans to open up an office in Seoul and hire a recruiter based out of Japan. (Read More…)

Recent Comments

  • DeadWeight: “We’re going to be spending trillions to make every road, bridge, tunnel, overpass, sewer...
  • mchan1: Due to today’s technology, it doesn’t make sense for the automakers to make Stripper trim...
  • zip89123: Not in CA where I’ve lived. The Democrats want carpool lanes, mass transit, electric car rebates,...
  • Lorenzo: If he can sell FCA for a decent price so the Agnelli family can finally be rid of the auto biz, Sergio will...
  • mchan1: “… if you’re willing to put up with SEP.” THAT IS the problem when purchasing...

New Car Research

Get a Free Dealer Quote

Staff