Tag Archives: tesla

Tesla’s Model S Bet Now Worth $8 Billion

A truckload of Tesla Model S electric cars in Seattle (Photo: MvB)

This truckload of Teslas pictured pulled in front of me the other day, prompting curiosity about how the company’s Model S (their transition from sports car to sedan) was doing. The answer is very well indeed. For one, it’s become that rare thing, an electric car that can be sold for a profit.

Tesla just announced it made money in the first quarter of 2013 — $11 million on sales of $562 million, a turnaround in profit/loss of $100 million year-over-year — for the first time in its 10-year history. The resulting surge in its stock price, reports Bloomberg, meant that “Tesla’s market capitalization surpassed $8 billion, exceeding the $7.8 billion for Turin, Italy-based Fiat SpA (F), the majority owner of Chrysler Group LLC.” For contrast, Bloomberg notes that Fiat-Chrysler moved one million cars and trucks in the quarter, against Tesla’s 4,900 vehicles.

And this week Consumer Reports joined Motor Trend and Automobile in giving the car top honors for 2013. In announcing Model S test ratings, CR went on to ask if it weren’t the best car ever.  “We wrestled with that question long and hard. It comes close,” the magazine said. Placement of the battery provides a “rock-bottom center of gravity,” reported the editors, while the “missing” gasoline engine allows room for two trunks. (A much smaller electric engine powers the rear wheels, the performance version of which puts out 416 horsepower.)

“A giant 17-inch touch screen glows in the center of the dashboard, controlling everything from high-res Google Earth maps to opening the sunroof,” they oohed, “setting the responsiveness of the regenerative brakes, and adjusting the suspension ride height.” When the door’s opened, the car’s ready to drive. There’s no turning a key — you sit in the seat, depress the accelerator, and go.

Wrote a commenter on the article: “I’ve also recently seen several Teslas here on the road in Seattle so I have a feeling that this vehicle is going to go beyond a niche market. I think it’s safe to say that the Tesla Model S is a game-changer.” After a $7,500 federal tax credit, prices for the Model S start at $62,400 (60 kWh battery), $72,400 (85 kWh), and $87,400 (85 kWh, plus upgraded drivetrain, interior and suspension). Tesla promises a third-generation vehicle will cost less.

“We reduced the hours required to build a car by almost 40 percent from December to March,” the company said in a statement. Tesla now says it’s raised its delivery projections for the year, to 21,000 cars from 20,000, and believes global demand could is about 30,000: “some cars will be in transit to Europe for start of deliveries in Q3.” In the EU, as others have noted, where gas is three or four times the price in the U.S., the gas “rebate” can top $10,000 per year. Deliveries of its “utility” Model X are to begin in 2014.

Internet Makes Progress Building U.S. Tesla Museum

In fact, there is already a perfectly good museum dedicated to Nikola Tesla, it just happens to be in Belgrade. That is where some 160,000 of the polymathic-polyglot inventor’s designs and correspondence are kept. But there’s no gainsaying that Tesla lived in the U.S. for almost six decades, and was very proud of becoming a naturalized citizen.

Seattle, in return, is very proud of Tesla. We can only speculate as to why this is so. Adopted Seattleite Mike Daisey included Tesla in his Great Men monologues, and the contrast between Tesla and Edison became central to his monologue Monopoly.

Earlier this year, The Oatmeal‘s Matthew Inman, himself creator of an epic Tesla v. Edison comic, heard about the Tesla Science Center at Wardenclyffe, the rather aspirational (at the time) name of a 15-year-old non-profit that hoped to reclaim Wardenclyffe, where Tesla tried for 17 years to build a massive wireless communications tower. Tesla bought the land, on eastern Long Island, and began building his tower with $150,000 in hand, which I’m told is about $3 million in today’s dollars.

To buy the land today was just $1.6 million, and the the non-profit had secured a matching grant from New York State for over half that amount. So Inman launched an internet fundraiser, and 33,000+ donors later, close to $1.4 million was raised. That will not, in all probability, be the last you hear about donations needed, as the site is in serious disrepair. But Tesla is getting his due at last.

 

Mitsubishi’s All-Electric i Car Visiting Eastside, Westside, All Around the Town

The Mitsubishi i (Photo: Mitsubishi)

Move over, Nissan Leaf! Mitsubishi’s all-electric “i” is going on a test-drive tour to flaunt its lower cost: after your federal tax credit of $7,500, just $21,625 for the ES model ($23,625 for the SE). That makes it “most affordable 100% electric-powered mass-market production vehicle available in North America,” say the bean counters at Mitsubishi. See the locations and times of its local “appearances” at the end of this post.

If for some reason you didn’t collect a federal tax credit, you’d shell out $29,125 for the base model. (Less the tax credit, Tesla’s Model S, by contrast, rings up for about $50,000.) How does the i compare to the Leaf? Well, don’t visit the Leaf’s site to find out. It’s a hideously useless “online experience“–I clicked around it for five minutes unable to find estimated charging times. Go to Wikipedia for better information.

That said, the Leaf’s sound system seems superior. The i’s interior styling is “Euro-classic”–with the dials dialing back on computer animation. The rear seats fold down to create more cargo room (as does the Leaf’s). It uses regenerative braking to add power back. For the doubters, there’s an 8-year / 100,000-mile limited battery warranty.

As of tomorrow, when it will be in Redmond, until this Sunday, when it will be in Issaquah, the i is visiting the Seattle area, and ready for your hands-on inspection. You can even take it for a test drive–but not for more than 62 miles presumably, because that’s about how far it’s rated to go on a charge in “real world” conditions (also similar to the Leaf).

What makes it go, you ask. And how fast? Well, the people at Mitsubishi are happy to tell you.

[T]he rear-wheel drive vehicle’s drive system includes a 49 kW (66 bhp) AC synchronous electric motor; an 88 cell, 330V lithium-ion battery pack for a peak storage of 16 kWh; and a single fixed-reduction gear transmission. This electric motor is capable of producing its peak torque of 145 lb.-ft. almost instantaneously when accelerating from a standstill; the vehicle has a top speed of approximately 80 mph.

The i can be recharged three different ways, though one option is for the most patient among us. Plugging it into a standard 120-volt wall outlet at your home takes some 22 hours to get from E to F. More likely, you’d purchase a  240V/15A Level 2 home EVSE Eaton charging system (estimated max. charge time: 7 hours), which by the way, comes with a $1,000 tax credit.

In and around Seattle, of course, you have your choice of public charging stations. Mitsubishi says a CHAdeMO Level 3 public quick charging station will take just 30 minutes to go from very low battery to 80 percent full (you’d also need an optional DC charging port for your i), but you’re more likely to find 240-volt Level 2s along the highway at this point.

At Seattle City Light residential electricity rates, it should cost you about $220 to drive 10,000 miles, or a little more than 2 cents a mile. Charging rates at city-owned facilities, says Seattlepi.com, have been set by the City Council at $1.50 to $4 per charge.

You should be able to find a Mitsubishi i at local Mitsubishi dealers (and in California, Oregon, and Hawaii) this November.

  • WED 12-Oct
    Redmond Town Center
    11am – 7pm
    7525 166th Ave. NE Redmond, WA 98052
  • THURS 13-Oct
    Best Buy Everett
    10am – 2pm
    1130 SE Everett Mall Way Ste A, Everett, WA 98208
  • THURS 13-Oct
    Younker Mitsubishi
    4pm – 8pm
    3820 E. Valley Road, Renton, WA 98057
  •  FRI 14-Oct
    Whole Foods, Roosevelt Square
    11am – 7pm
    1026 NE 64th Street, Seattle, WA
  •  SAT 15-Oct
    Z-Homes
    10am – 5pm
    Highland Drive NE & NE High Street, Issaquah, WA 98029
  •  SUN 16-Oct
    Z-Homes
    11am – 5pm
    Highland Drive NE & NE High Street, Issaquah, WA 98029

What Makes Tesla’s Model S Like the iPad?

Tesla's Model S, coming to market in mid-2012, holds up to 7 passengers.

Two Tesla Motors stories surfaced this morning: GeekWire reports that Tesla will be opening a “store” at the Bellevue Square Mall, “on the second level, just north of Center Court.” That will double Tesla’s Seattle-area tireprint–they opened their South Lake Union show room in late 2009.

In contrast, Fortune‘s Alex Taylor III wonders whether Tesla isn’t simply running on fumes at this point. This weekend, Tesla Motors will test drive its all-electric four-door Model S flavors for an eager audience of “reservation holders.” While the price tag for the Roadster ranged from $110,000 to $155,000, the Model S is designed for the masses of less-well-to-do tech titans. The Model S base is supposed to be $57,400 (less a $7,500 tax credit).

Taylor is critical of Tesla’s business plan because of the car maker’s relatively tiny sales goals (20,000 Model S per year), the losses the company has incurred (over $300 million from 2009 to mid-2011), and the challenge it has set itself in producing cars built from the ground up at a faster pace than when Lotus was supplying the chassis.

Still, the “running on fumes” comment displays a mindset that isn’t asking in what ways Tesla isn’t like Detroit. When I picked up my iPad 2, I had a choice between 16GB, 22GB, and 64GB, just as Tesla buyers can choose between batteries with driving ranges of 160, 230, and 300 miles.

Did I really think it cost Apple $100 to add each 16GB of flash memory? Do Tesla buyers really think the extended-range batteries cost Tesla $10,000 or $20,000 to insert? Tesla’s Elon Musk points to the battery options as one of the areas that he hopes to make the Model S profit margin rise to about 25 percent.

Tesla remains a gamble, of course, but when driving range is akin to RAM, this is not your father’s Oldsmobile. Imagine taking your car into the shop and driving back out with a car that goes 60 or 120 miles more per “tank.” That’s fairly disruptive technology.

Electric Cars Are Coming…For You!

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That's not the engine, it's the A/C unit.

The Tesla Roadster

The Tesla interior

A single wiper does the job on the Tesla windshield.

A Tesla plugged in at the Seattle showroom

The Tesla motor

A glimpse into the garage portion of Tesla's Seattle showroom

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Down at 435 Westlake Avenue North, there’s an old brick building with big windows that frame a gleaming black Tesla Roadster. Seattle’s Tesla showroom is not particularly conspicuous, but then people with $109,000 to spend on a high-performance electric car probably don’t just pop in off the street.

Up close, the Tesla Roadster resembles nothing so much as your childhood electric race car come to Lotus-inspired life. Low-slung, it accelerates from 0-60 in 4 seconds, says Car & Driver, thanks to a single-speed gear reduction transmission, carbon fiber, and a motor that (in the even pricier Sport model) achieves 288 horsepower.

In EPA theory, you can also drive 248 miles on a single charge, though as with any car, mileage may vary, even if you’re the co-founder. Then, C&D says, “Using Tesla’s special $3000 70-amp, high-capacity charger, the car will tank up in fewer than four hours. On our $19 Home Depot do-it-yourself kludged-up 240-volt, 40-amp garage charging circuit, the Tesla needed eight hours for a full zero-to-hero charge-up.”

If you’re asking yourself who drops $110,00 (Roadster, base) to $155,000 (Sport, loaded) on an electric car, Genny Carter, Tesla’s Seattle store coordinator, says car collectors, technologists (from Microsoft), and sports car aficionados are among that group. But also, she says, “we’ve had environmentalists, people who have never paid more than $40,000 for a car in their lives, walk in to order one.”

That last demographic may be more interested in the Tesla Model S, a sedan that’s supposed to arrive on showroom floors in 2012. After a tax rebate, the Model S should sell for around $50,000. It’s still very fast–reaching 60 mph in under six seconds, and topping out at 120–and it will come with three battery packs that allow different driving ranges (160, 230, or 300 miles), and recharge in as little as 45 minutes.

UPDATE: Tesla says it’ll be ceasing production of the Roadster to focus on the Model S.

Still, since Tesla has sold some 1,650 Roadsters through March 2011, you could fairly say that the company has been far more successful in creating publicity than cars. In the Revenge of the Electric Car documentary, a thrilling inside-the-conference-room follow-up to the more pissed-off Who Killed the Electric Car?, Tesla and its charismatic founder Elon Musk get equal time with GM and Nissan, but the investment and market-share of the latter two are worlds away.

GM’s Volt sold 1,200 units in the first quarter of 2011. Nissan Leaf sales are expected to reach 10,000 in the U.S. alone, by the end of 2011. That’s with price tags of $40,000 and $33,000, respectively, after tax rebates. And this just in: “Ford Motor Co. plans to add 220 jobs at plants in Michigan as it triples production of electric vehicles to 100,000 annually by 2013.”

Seattle residents driving electric cars can “fill up” away from home at a growing number of recharge stations: Vulcan just opened 24 at eight locations in South Lake Union this June. (The DOE map of recharging stations needs a big update.)

In Seattle, recharging is mostly guilt-free, ecologically speaking, since so much of our electricity comes from hydropower. Over at Sightline, Clark Williams-Derry recently compared the Leaf with hybrids, to see how the fuel economy and carbon emissions fared:

Personally, I think that the “right” way to think about the Leaf in the Northwest is the bar in the green: the marginal carbon emissions. And on that measure, the Leaf is a lower-carbon vehicle than the Prius. In fact—and purely coincidentally—the Leaf’s emissions work out to be just about the same as its EPA rating: the equivalent of a gas-powered car that gets about 99 miles per gallon.

But, elsewhere, a major caveat: “coal-fired power negates all of the climate benefits of electric cars.” You might as well drive a good mileage gas-powered car, concludes Williams-Derry, if you’re getting your electricity from coal.

That’s in reference to the current state of things, I imagine. It is possible to capture more CO2 from burning coal than we do. A point that both Revenge of the Electric Car and the Seattle Electric Vehicles Association‘s Steven Lough make is that, all things being equal, rather than have 250 million passenger-vehicle CO2-emission points, it’s a lot easier to corral the CO2 at the substantially fewer generation points. It’s probably safe to say that for many electric vehicle owners, this car will be the first that pollutes less the longer they drive it.

Lough advocates not waiting for the major car manufacturers to lure you into the electric vehicle you’ve been waiting for: The cost to convert your existing gas-powered car to pure electric (replacing motors) is less than $13,000, while your annual electricity costs could be something less than $280. (A back of the envelope calculation for $3.50/gal. gas is $1,400 per year.) If you’re a real environmentalist, he points out, you can’t overlook the benefits of recycling your existing car, can you?

There’s another benefit to electric car purchase, too: The money you spend on electricity in Seattle tends to stay in Seattle, which is not what happens when you fill up with gas. Around here, the more people switch to electric cars, the more money they save, and the more money Seattle City Light gets to fund its investment in alternate energy sources. Add solar power to your home’s roof, and the virtuous circle improves in strength.