Carrot & Stick: Days After Cutting Prices, Tesla Chops Base Models

There will be no Ace of Base prizes for the Tesla Model X or Model S in 2019. Just days after promising to cut prices of all its cars by $2,000 in response to the company blowing through its federal tax credits faster than a record producer with a bag of high-test cocaine, the company’s Chief Executive Tweeter has announced the discontinuation of the 75D X and S models.

This is in addition to Tesla cleaving off a number of color and interior trim choices last year. At the time, it was speculated the company was doing so in an effort to streamline production.

So Elon giveth, so Elon taketh away.

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Hobson's Choice: Tesla Slashing Interior Options for Big-bucks Models

Back in September, the House of Elon decreed the Model 3 would be available in fewer colors, an apparent effort to streamline production of the company’s first high-production model. By restricting two of the seven hues – Obsidian Black and Metallic Silver – to special request status, it is arguable easier to move more machines out the factory (tent) door.

Now, option limitations are being applied to the megabuck Model S and X as well. Musk announced yesterday – via tweet, of course – that “many” interior configurations will not be available after the end of this month.

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Tesla Flings Incentives, Builds Volunteer Army in End-of-Quarter Push

Tesla Motors is currently offering up a bevy of incentives, even a few it once discontinued, in order to maximize deliveries before the end of the quarter. The brand has also reached out to enthusiastic owners who may want to help during its time of need, creating a weird sort of volunteer army for itself.

The company is desperate to prove to investors that Model 3 volume is making meaningful headway before its next shareholders meeting. As you’ll recall, the Department of Justice opened a criminal investigation after the Securities and Exchange Commission began a civil probe into Elon Musk’s August tweet about possibly taking Tesla private. The automaker also fired more than 3,000 employes over the summer and lost several important executives. It’s been a rough year for the brand, which makes having a good quarter all the more important.

While a significant portion of that battle is being waged at the factory, helped by simplified paint options and new car carriers, Tesla thinks it can move enough extra metal at its delivery centers to make up some of the difference.

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Are Tesla Model S and X Buyers Ready for the Model 3's Minimalist Interior?

Tesla Motors’ refresh for the Model S and and Model X has been in the works for quite some time, with efforts focused on the vehicles’ interior above everything else. While we’re not about to call the present-day cockpit of either vehicle dated, they’ve been operating mostly unchanged for quite some time.

However, the update will surely rub some customers the wrong way. That’s because the new interior design is expected to be heavily influenced by the minimalist cabin of the Model 3. Scheduled for the second half of 2019, both of Tesla’s larger models will see their own adaptation of “less is more,” with a full exterior refresh to follow in 2021. Both are big deals for the company, which typically introduces small changes to its vehicles every so often rather than expansive alterations.

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Hedge Fund Manager Convinced Tesla Shares Will Collapse

American investment manager and short-seller extraordinaire Jim Chanos claims Tesla is “headed for a brick wall.” Having deemed the automaker as structurally unprofitable, Chanos said, “Three years ago, this company was supposed to be making money [today]. And now, it’s supposed to be making money by 2020. I’m guessing by 2019, we’ll hear about 2025.”

However, while Tesla has taken on massive amounts of debt to ensure its evolution as company, investors haven’t seemed to mind. Its stock price has climbed from $33 a share in 2013 to almost $380 in September of 2017. As a short-seller, Chanos says he’s lost money on the company in the past since the stock price never seems to go down, and that’s what he finds the most alarming.

“Nobody is buying Tesla stock based upon the current business,” he said. “It’s all based on the future and the hope for half-a-million to a million Model 3s per year.”

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Consumer Reports and Tesla Feud Continues Over Model 3

Tesla Motors and Consumer Reports have enjoyed a fairly contentious relationship with each other over the last few years. The nonprofit consumer advocacy organization had previously slighted the Model S for being unreliable and unsafe, but upgraded that analysis as Tesla continued improving the model. In this year’s consumer survey, the model received higher marks —receiving “above-average reliability for the first time ever.”

However, the Model X suffered a dismal showing and Tesla was outraged that CR gave the Model 3 a predictive average reliability score without even having driven it. The publication was quick to respond, however, and suggested the manufacturer may have misunderstood what was a fairly positive rating for an unproven platform.

While the exchanges seem somewhat trivial and maybe a little petty, this is the kind of automotive drama that’s simply too fun to ignore. For whatever reason, Tesla seems unwilling to remain silent whenever some bad publicity heads its way. While it’s far from the only automaker to do this, its relationship with Consumer Reports has been filled with very specific ups and downs.

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No Fixed Abode: The Case For Tesla

Last week I showed you how some electric car “journalists” were reaping massive rewards for recommending Tesla over other electric cars. I also showed you how poorly they reacted to being found out. My coverage of Electrek’s Fred Lambert ended up being linked, referenced, or just flat-out copied in outlets as diverse as the WSJ and Zero Hedge.

As I had feared, however, most of the aforementioned media sources used my articles as stones on which to grind their ax, not mine. My concern was with the ever-more-permeable wall between automotive journalism and outright PR/promotion; theirs was with Tesla as an automaker and/or business entity. For me, this was a story about double dipping, but for them it was yet another example of reality distortion on the part of Elon Musk and his secretive cabal.

There are plenty of Tesla skeptics out there, including this site’s august founder, who once referred to Model S early ordering as a “Ponzi scheme,” and two former Editors-In-Chief of TTAC. I’m not one of them. Sure, I’m happy to admit that the company has a long history of playing fast and loose with the facts, and I’ll also freely stipulate the idea that Tesla as a whole is so entirely dependent on government subsidies as to be completely unviable without the steady drip of corporate welfare. What I want to suggest to you is that none of that matters, as conclusively proven by a series of trips I recently took to Western Europe and Northern California.

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Truth in Numbers: Tesla Motors Kind of Lied to Us

Yesterday, we mentioned how Tesla was behind schedule with its everyman Model 3 — delivering only 220 units to the half-million reservation holders since the start of production in late July. While we knew it would get off to a slow start, CEO Elon Musk previously assured the public that production would increase exponentially through the end of the year by way of a “ production hell” trial by fire.

Musk claimed there should be “zero concern” about Tesla achieving a production rate of 10,000 cars a week before the end of next year. But many wondered if that was even possible. Despite Tesla making serious strides to increase production volume this year, we remained dubious that the proposed numbers were even feasible for a fledgeling automaker.

As it turns out, they weren’t — and the company knew it.

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Operational Limits Played 'Major Role' in Fatal Tesla Autopilot Crash, Says NTSB

According to a preliminary report from the National Transportation Safety Board, the “operational limitations” of Tesla’s Autopilot system played “major role” in a highly publicized crash in May of 2016 that resulted in the death of a Model S driver.

On Tuesday, the NTSB cited the incident as a perfect storm of driver error and Tesla’s Autopilot design, which led to an over-reliance on the system’s semi-autonomous features. After a meeting lasting nearly three hours, the agency’s board determined probable cause of the accident was a combination of a semi truck driver failing to yield the right-of-way, the Tesla driver’s unwillingness to retake the wheel, and Tesla’s own system — which may have set the framework for the accident.

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Tesla Model S Gas Pedal Snaps Off After Driver Tries Showing Off Launch Mode

One Tesla owner got a big shock yesterday as his accelerator pedal snapped off while driving.

The story comes from user benjiejr on the Tesla Motor Club forum. He was showing off his Model S P85D to a friend and his nephew. After going through the car’s features it was time to show off the massive acceleration of the P85D’s twin electric motors and 503 horsepower.

“I turned around and was going to do another launch, but this time without Launch Mode – just stomp on the pedal – like I do most often. When I punched it, the accelerator pedal broke off.”

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Consumer Reports Restores Half of Tesla's Missing Points After Braking Update

Tesla Motors has won back some of Consumer Reports’ respect after being criticised for failing to include automatic emergency braking in recently built vehicles. The absence of the safety system really irked CR, resulting in a points deduction on all of the brand’s existing models. Tesla said it was abnormal to see vehicles of the same generation missing preexisting safety features and docked the Model S and X two points apiece.

“When we purchased our latest test car, we were assured automatic emergency braking would be enabled by the end of 2016,” explained Jake Fisher, director of Consumer Reports’ Auto Test Center. “We’ve been waiting for this important safety feature, which is standard equipment on much cheaper cars.”

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Old Man Lutz Weighs in on Donald Trump, Tesla Motors, and the State of the U.S. Auto Industry

If you’re unfamiliar with Bob Lutz, it’s likely that you’re a recent addition to the world of automotive enthusiasm. Allow me to be the first to welcome you. The rest of us have been following Lutz’s career shift from extremely outspoken auto executive to extremely outspoken car blogger for years. Now 85, he hasn’t become any less critical of the industry after entering his “retirement,” nor has his advanced age done much to soften his frank rhetoric.

Love or hate him, Lutz’s time spent jumping between the Big Three has provided him with unique insights — and he always has plenty to say on the current state of the American automotive industry. His most recent revelations circle around the unsustainable nature of Tesla and his growing distaste for president Trump, despite his having voted for him.

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Tesla Owners Maintain a Deep Affection for Their Cars, Despite Quality Issues

Despite garnering below-average reliability ratings, Tesla is probably the one car brand with the most fervent disciples. While not all Tesla fans are blindly loyal, most are willing to cut the company much more slack than you would Ford the next time your Focus’ bum transmission acts up. Granted, Tesla’s automobiles do possess elements that most Fords do not — namely prestige and a highly unique driving experience.

An elegantly fashionable car will, of course, be more easily forgiven for its missteps than some plain-Jane model. However, the Model S and X have suffered more than just the occasional mechanical error. The Model X is infamous for its malfunctioning electronic doors and wonky electronic interface, while the Model S has suffered from quality control issues since day one. Still, every time an owner voices a concern about reliability or the company’s lackluster ability to service its vehicles, their complaint usually comes with an addendum specifying that they still adore their purchase.

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Tesla Kills 'Affordable' 60 KWh Model S as Model 3 Approaches

Tesla is taking its most affordable model off the market next month. In order to “simplify the ordering process,” the automaker has decided to abandon the Model S 60 and 60D, according to its official newsletter.

It hasn’t even been a full year since the 60kWh trim returned after the more-expensive Model S 70 replaced it in 2015. Good riddance.

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Tesla Model S Pricing Strategy Remains Unfathomable With Discounted 15 KWh Upgrade

Tesla pricing is about as predictable as the winning lottery numbers. This year it added numerous surprise fees onto its supercharging network and rearranged the pricing structure for its Model S sedan more times than I can remember. Most recently, the company increased the price of its base Model S 60 from $66,000 to $68,000 with an $8,500 software update that unlocks the battery’s full potential — since the 60 is just a 75 that has been digitally neutered and rebadged.

In some instances, almost 30 percent of the value of the vehicle can be unlocked through in-car purchases. There are all manner of software-upgradable items but keeping up with their pricing is nearly impossible, especially when Tesla doesn’t actively announce those changes.

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  • CanadaCraig As an aside... you are so incredibly vulnerable as you're sitting there WAITING for you EV to charge. It freaks me out.
  • Wjtinfwb My local Ford dealer would be better served if the entire facility was AI. At least AI won't be openly hostile and confrontational to your basic requests when making or servicing you 50k plus investment and maybe would return a phone call or two.
  • Ras815 Tesla is going to make for one of those fantastic corporate case studies someday. They had it all, and all it took was an increasingly erratic CEO empowered to make a few terrible, unchallenged ideas to wreck it.
  • Dave Holzman Golden2husky remember you from well over decade ago in these comments. If I wanted to have a screen name that reflected my canine companionship, I'd be BorderCollie as of about five years go. Life is definitely better with dogs.
  • Dave Holzman You're right about that!