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Will the Tesla Gigafactory be too big?

With pro football season about to begin, we thought it appropriate to use a gridiron metaphor: one research firm is estimating that Tesla Motors will outkick its coverage when it comes to the Gigafactory it's planning for the western US, likely Reno, NV. The electric-vehicle maker has said needs the giant battery plant because its annual sales will reach a half-million by the end of the decade. Lux Research is saying the company's EV sales will be closer to about half that. In fact, Lux says, Tesla will have to sell much of its battery-pack production to either other automakers or to entities such as solar-panel makers for their stationary-battery needs because of overcapacity. And with Panasonic footing the bill for a good chunk of the estimated $4-5 billion pricetag for the plant, the battery maker will also be taking a bit of a bath, at least for the first few years. Tesla has said its Gigafactory will help it cut battery costs by about 30 percent by 2020, and could have it up and running as soon as 2017. Tesla spokeswoman Alexis Georgeson said in an e-mail to AutoblogGreen that the company wouldn't comment on the Lux Research report (they're probably busy preparing for this afternoon's Nevada announcement) but you can still take a look at Lux Research's short summary of the report called The Tesla-Panasonic Battery Gigafactory: Analysis of Li-ion Cost Trends, EV Price Reduction, and Capacity Utilization below. The Tesla-Panasonic Battery Gigafactory: Analysis of Li-ion Cost Trends, EV Price Reduction, and Capacity Utilization August 13, 2014 | State of the Market Report Tesla Motors has found initial success in the luxury electric vehicle market, and will look to capitalize on that momentum through aggressive expansion, planning a new 35 GWh lithium-ion (Li-ion) cell production facility. Dubbed the "Gigafactory," it poses a tremendous risk for Tesla and its partner Panasonic, and herein we analyze whether the $5 billion investment is justified by electric vehicle (EV) sales volumes and the interrelated question of breaking through the price floor for Li-ion batteries. We find the Gigafactory will only reduce the Tesla Model 3's cost by $2,800, not enough to truly influence whether this lower-cost EV will be a success or not.

Tesla is quietly installing higher-speed, non-Supercharger network [UPDATE]

UPDATE: We've received confirmation from Tesla on details of the charging network, and have updated the text below accordingly. To a Tesla Model S driver, 58 miles an hour is pretty tepid when it comes to driving speed. Recharging speed, though? That's a pretty good clip. The California-based automaker is complementing the deployment of it high-powered Superchargers with slightly-less-super wall chargers that supply 80 amps and can provide almost 60 miles worth of driving in one hour of charging. That's about twice as fast as a 240-volt charger, though it's a fraction of the juice provided by the Superchargers that Tesla is building on at least three continents. The Tesla Destination Charging Program, recently covered in The Wall Street Journal, features the Tesla High Power Wall Connector. Those devices have been deployed at almost 110 hotels, beach parking lots and restaurants in North America, Tesla spokeswoman Alexis Georgeson confirmed to AutoblogGreen in an e-mail. Tesla just launched the program this spring and lists those chargers' locations on its website (www.teslamotors.com/findus). With such chargers in place, getting 58 miles to the hour will be valuable for day-tripping Model S drivers who are just looking to get home without a tow. And, like the Superchargers, the wall chargers are free to use. "By offering convenient destination charging services to Model S owners, these hotels and resorts are replicating the convenience our owners have become accustomed to at home," Georgeson said. Tesla has deployed 111 Supercharger stations across North America, in addition to 59 stations in Europe and 13 in Asia. Neither the Superchargers nor the wall chargers are compatible with any other electric vehicles, so no soup for you, Nissan Leaf drivers.

Dealers in Georgia latest to oppose Tesla showrooms

Tesla has been fighting challenges from dealer groups in several states for years due to the company's decision to sell directly to customers at stores rather than through franchise dealers. The business has won some of these battles like its recent compromise in Pennsylvania, which allows the company to open five stores there. Now, Tesla has another legal struggle ahead of it because the Georgia Automobile Dealers Association is hoping to shut down the brand's boutiques.
The Georgia dealers recently filed a petition to revoke Tesla's dealer license in the state and prevent it from reapplying for another one, according to Automotive News. The company currently operates just one store in Marietta, GA, but it reportedly has two more locations planned around Atlanta in the future. The association claims that Tesla's license limits it to direct sales of a maximum of 150 vehicles a year. It's now selling more than that, but attempting to increase the restriction.
If Tesla wants to keep selling cars in the state, which boasts high incentives and strong popularity around Atlanta for EVs, it needs to switch to franchises, according to the dealers. "No one should be allowed to act as if they are above the law, especially when there is a simple path to compliance that everyone else has agreed to follow," said Bill Morie, president of the association, to Automotive News.

Tesla will build first Gigafactory in Nevada

After months of guessing, the location of the first massive Tesla battery plant should be announced around 24 hours from now. A joint press conference has been called by Tesla and the Nevada Governor's office for tomorrow afternoon and the subject is likely to be that the so-called Gigafactory will be built in Reno, NV. Reno was first confirmed as a serious candidate for one of the Gigafacatory locations during Tesla's most recent shareholder call at the end of July, when the automaker said it had broken ground on a potential location there. Speculation was swirling before that that Reno would be chosen first. Tesla wouldn't directly confirm what the subject of tomorrow's announcement would be, but did give AutoblogGreen a statement that said, "Tesla looks forward to joining Governor Sandoval and legislative leaders tomorrow in Carson City at 4 pm for a major economic development announcement." We'll let you decide. When it announced the $4-5-billion Gigafactory, Tesla said it would provide up to 6,500 jobs and make enough batteries to supply 500,000 Tesla electric vehicles a year, in particular the company's next vehicle, the lower-cost Tesla Model 3. Of course, Tesla also said it would not announce the location of the battery plant until "late 2014," so we'll take everything with a grain of salt for now. Recently, the California Budget Project suggested the five states in the running for the first Gigafactory should work together so as to not give too many tax benefits to Tesla. We should find out tomorrow how much Nevada "spent" to attract the new battery plant and a host of other details. **Media Advisory** Governor Brian Sandoval to Host Press Conference for Major Economic Development Announcement Contact Mari St. Martin Communications Director (702) 250-8210 mstmartin@gov.nv.gov Carson City, NV - September 03, 2014 Governor Brian Sandoval will host a press conference tomorrow, Thursday, September 4th, for a major economic development announcement. TIME: 4:00 p.m. WHAT: Press Conference WHO: TBD LOCATION: Capitol Building 101 Carson Street Carson City, NV 89701 MEDIA: RSVP to confirm location Press set-up to begin 30 minutes before press conference ### Office of the Governor . 101 North Carson Street . Carson City, NV 89701 . (775) 684-5670 Grant Sawyer State Office Building . 555 East Washington, Ste 5100 . Las Vegas, NV 89101 . (702) 486-2500

Budget watchdog warns Tesla Gigafactory fight could be 'race to the bottom'

How desperate are the states in the US Southwest for a Tesla Gigafactory? Maybe a little too desperate, according to the California Budget Project. CBP says that the five states that are vying for the new big battery plant from Tesla and Panasonic are really in a "a race to the bottom from which no real winner may emerge." The CBP issued an open letter to leaders in those states that called for "greater openness in the process, strong accountability measures, and cooperation – not competition – among the states." Basically, what CBP is saying is that Tesla is trying to get too good a deal from whichever of the five states (Texas, Nevada, New Mexico, California or Arizona) will be picked for the Gigafactory to be built (well, the first one, at least). We have known for a long time that these states are fighting amongst themselves, and the CBP says that even though the Gigafactory is "undoubtedly a valuable source of economic growth for its eventual home state," since the public bidding process starts at $500 million in subsidies, the five states 'have more to gain from cooperation than from competition." After all, Tesla has made it clear that it needs the Gigafacatory to make its cheaper EV a reality, so CBP is suggesting that the states communicate with each other so that no one offers too many tax breaks in the "harmful pattern of one state 'winning' a high-profile competition." The $500 million could be better spent on other things, CBP argues, and wonders if Tesla would be "receptive to a multi-state dialogue." Your Houston News notes that Tesla is asking the states "not to discuss their offers, and states aren't talking." Tesla did not have anything more to add to AutoblogGreen, but the company has said that an official announcement on the location of the first Gigafactory is coming toward the end of this year. For now, you can read CBP's open letter in full below. An Open Letter to Five States' Officials About Tesla Motors The announcement earlier this year by Tesla Motors that it planned to establish a major electric-car battery factory in one of five western states has set off a bidding war among officials in these states. Yesterday, CBP Executive Director Chris Hoene joined with leaders at Good Jobs First and peer organizations in the other states to direct an open letter to state officials calling for greater openness in the process, strong accountability measures, and cooperation - not competition - among the states.

Recharge Wrap-up: Toyota allowed to inspect own hydrogen tanks, Telsa tour reveals expansion

Japan's Ministry of Economy, Trade and Ministry has certified Toyota to self-inspect its high-pressure hydrogen tanks. The approval allows more freedom in production timing, as outside inspectors previously had to be on site during the manufacture of hydrogen tanks for vehicle prototypes. Toyota has passed the stringent standards to become a registered manufacturer of the 700-bar hydrogen tanks, which the company will use in its upcoming fuel cell vehicle (FCV). With the improved efficiency this certification allows in the manufacturing process, Toyota believes it will help to lower the cost of the FCV. Read more in the press release below. A look inside Telsa's fremont Factory shows thriving activity and increased capacity. Analyst Trip Chowdhry, in a rare tour of the factory, describes a bustling facility capable of producing the Model X and Model III alongside the Model S. A part of the floor labeled "Driver Assist" suggests to Teslarati that Tesla is researching a self-driving car. Chowdhry reports that the factory lobby was "busy with European suppliers and Asian suppliers." He also found an energized workforce and culture similar to Silicon Valley startups. Read more at International Business Times. Mahindra has introduced a premium version of the e2o electric car, made in partnership with Reva. The car features a range of almost 75 miles, power steering, infotainment, rear-view parking camera, driver information display and an emergency power reserve feature, called REVive, offering an extra five miles of range activated through a smartphone. Mahindra also launched a program called "Goodbye Fuel, Hello Electric" in which customers pay to use the e2o by the mile. Learn more at The Indian Express. Toyota Approved to Self-inspect and Manufacture Hydrogen Tanks for FCVs Toyota City, Japan, August 29, 2014-Toyota Motor Corporation has received approval from Japan's Ministry of Economy, Trade and Industry (METI) to self-inspect and manufacture high-pressure hydrogen tanks for fuel cell vehicles (FCVs). This makes Toyota the first company to become a registered manufacturer of 70 MPa (700 bar) hydrogen tanks under Japan's High Pressure Gas Safety Act, revised in 1997 by METI. Toyota will now be able to increase the efficiency of the process of manufacturing safe high-pressure hydrogen tanks that ensure customer confidence.

Tesla, China Unicom setting up 400-station charging network in China

Tesla and China United Network Communications Corp. are working on something big. Like 400 public chargers in 120 cities big. These are not going to be Supercharger fast chargers that the California automaker is installing across the US and Europe, but don't worry, the two companies are going to install 20 Superchargers there. As with the Supercharger network, Tesla EV drivers will be able to juice up their cars for free at the 400 stations and the new Superchargers. The deal will work like this, according to Bloomberg: Tesla supplies the charging station parts and China Unicom provides the land. Laying the groundwork for easier electric vehicle charging is important, since Model S EVs are already selling well in China and CEO Elon Musk has said that the company expects sales there to reach the same level as in the US perhaps by 2015. Tesla and all plug-in vehicle sellers will benefit if China's plan to invest $16 billion on more charging stations comes to fruition. China Unicom is the second-biggest mobile phone company in China, which may help explain why TSLA stock jumped to a record high after the announcement and is climbing again today. As of this writing, the stock is just over $283, up $13.55 (5.02 percent) from last week.

There are ways to sneak Tesla Model S into Russia for just 6.5M rubles

Tesla Fever has extended far and wide, winning over critics and everyday enthusiasts alike. The company is rapidly expanding its efforts both in its home market and abroad, but for some of its wealthy fans, that move isn't happening quite fast enough.
Dmitry Grishin is one such enthusiast. The 35-year-old multi-millionaire founder of Russia's Mail.ru is a big fan of Elon Musk's operation, so much so, in fact, that he's decided not to wait for sales to begin in the Russian Federation. Instead, he's gone off on his own and simply imported a Model S to get around Moscow.
The acquisition was not easy, as detailed by The Verge, and Grishin's car isn't quite as full-featured as a Model S sold in America - he's forced to use his phone's data connection rather than the car's . But, Grishin clearly has no regrets, spending a total of $180,000 to bring the EV to Moscow. In fact, Grishin has gone so far as to say he'd invest in the American EV manufacturer, if it hastened the brand's arrival in the motherland.

Tesla Model S rentals in the UK are crazy expensive

The bad news about trying to rent a Tesla Model S electric vehicle in the UK for a day is that it will run you about $580. The good news? You get 200 free miles worth of driving. The good news? Considering British fuel prices of about $9 a gallon and fact that the average fuel economy in the UK is around 38 miles per gallon, you're at least getting around $45 worth of travel for your $580. And you're doing it in one of the most popular EVs around. UK-based EVision is offering right-hand drive Model S to motoring enthusiasts at a starting rate of about $100 an hour (with a three-hour minimum, of course), reports Transport Evolved. That jumps to $580 for the full day. And for a week of pretending that you're James Bond in your sparkling Model S, the car will run about $3,300. And you though rental rates for London flats were expensive. California-based Tesla started delivering the Model S to the UK in June. The model is priced at about $84,000 and Tesla said at the time that more than 3,400 Model S vehicles had been sold in Europe during the first four months of the year. Those figures were helped by Tesla's decision to reduce the price of the Model S on the continent because of the strengthening Euro.

Tesla Model S now the least-stolen car in the US

When is a Honda Accord more appealing than a Tesla Model S? When you're a thief. The Accord continues to reign as the most-stolen car in the US but the Model S is now claiming a new and interesting title: the least-stolen car in America. Last year, it wasn't even on the list. Of course, sometimes a Model S is stolen and the most famous case ended with tragic results. Last year there was an eight-way tie for "least-stolen." For the record, last year there was an eight-way tie for "least-stolen," made up mostly of SUVs and CUVs. The rankings were listed by a value called "claim frequency," which is how many were reported stolen per 1,000 units produced and where lower means it is stolen less. With a 0.4, these were the vehicles least wanted by thieves in 2013: Dodge Journey, Volkswagen Tiguan, Audi A4, Acura RDX, Toyota Matrix, Lexus HS 250 hybrid, Honda CR-V, Hyundai Tucson. This year, the Tesla clocked in with a 0.15. The average vehicle has a claim frequency of 3.51. Tesla has, of course, worked hard to make the Model S an unlikely target. It can be shut down remotely, it can be tracked and it has a hacker princess and cash prizes working to protect from other attacks. Tesla's Alexis Georgeson told AutoblogGreen that Tesla hasn't been able to verify the "least-stolen" moniker but said that, "We take the security of our cars very seriously and relentlessly continue to improve our vehicles via over-the-air updates, an ability unique to the industry. We will continue to work to stay ahead by providing the most sophisticated tools and technologies in our cars and working closely with security researchers to identify and address potential vulnerabilities." Value Walk says that another reason for the low theft rate is that there might be very low demand for Model S parts, since the cars are still under warranty and there aren't many on the road. Still, the claim frequency is a fair comparison, and by that metric the Tesla Model S looks just awful to at least one group of people.