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Why Tesla will need more loans to make it through 2013

It's fun to bet against Elon Musk and Tesla - that's the best reason we can find for so many people doing it even though the man, his company and his cars are still here and still very popular. The latest name inscribed in the column labeled "Skeptical of Tesla" is John Shinal at Market Watch who, in year-end commentary on Tesla's financials, says that the "carmaker's financials are reminiscent of a dot-com's." He does not mean that in the good way.
To be fair, Shinal isn't exactly betting against Tesla, he's saying that if you check the bottom lines, the only thing keeping Tesla alive is the hundreds of millions in Federal Department of Energy loans it has received. Based on its filings, he says the company has less than six months of cash on hand, hasn't produced as many cars as it promised and had to lower its revenue forecast for 2012, has had a "year of net losses and negative operating cash flow," and was underwater by at least $37 million at the end of the third quarter.
But Shinal's not done there, summarizing Tesla as an operation with "a poor habit of failing to deliver to customers the cars it has promised them, while simultaneously raising the prices of those yet-undelivered cars," and "a lousy level of customer service." He says there are more damning things to be found in Tesla's SEC registration settlement from September, but we'll have to wait for his next column to find out what those are. The takeaway, in Shinal's opinion, is that even though Tesla will keep getting money from the government, that investors have no business dealing in Tesla stock.

Why dealerships should embrace Tesla's direct sales competition

National and regional dealership associations have it in for Tesla Motors. For the past few years the organizations have been pushing lawmakers – to whom, it bears mentioning, they have made generous financial contributions – for legislation that would make it difficult for the Californian automaker to continue with its direct-to-consumer, company-store sales model. This is, of course, in addition to laws already on the books which make it illegal for manufacturers engaged with existing independent dealership networks to operate their own retail locations. As you may have heard, the dealers have recently had success in New Jersey and, previously, in Texas. Arizona passed a law in 2000 that forbids manufacturers from obtaining a dealer's license, completing the triad of states which now restrict sales from Tesla stores. Meanwhile, the company has had some amount of success pushing back against these efforts in Massachusetts, Ohio, New York and North Carolina. It is a constant battle, though, even in most of those locales. Direct sales are key to Tesla's success. Direct sales are key to Tesla's success. It's a big part of how the company managed to move from a simple start up to something of an American automotive phenomenon. While CEO Elon Musk likes to say that it uses this method because selling an electric car would somehow be a conflict of interest for dealerships that also sell conventionally- powered vehicles, there is really a lot more to it than that, and it's wrapped around the customer experience. You can sit at home in your pajamas and configure exactly which color and options you want for your Model S over the Internet, send an electronic payment and have that exact car arrive at your door some weeks later. The company stores are an outgrowth of that concept, but allow you to see physical samples of the colors and materials involved, take a test drive and interface with a friendly human who can immediately answer any questions you might have, as well as facilitate financial transactions. You still get the exact car that you order. Having company-owned stores lets Tesla keep complete control of its entire retail network and therefore, the buying experience. Staff aren't paid by commission and are encouraged to be truly customer-focused.

Elon Musk talks Tesla Model S updates, AWD version, Model X deliveries

Tesla Motors CEO Elon Musk does things differently than the heads of other car manufacturers. Case in point, he just made a quick European tour with stops in the Netherlands, Germany and Norway where he, along with CTO JB Straubel, held lengthy question and answer sessions with Tesla owners, reservation holders and other interested parties. Now, we recognize that the California company has a significantly smaller customer base than traditional automakers, making these sorts of events more logistically easy (see also: Fisker). Still, the effort is a refreshing change from scripted press conferences, and allows Tesloids to voice their concerns and criticisms to the exact person with whom the buck stops. It's also good for Tesla, in that it gives new ideas for future improvements a chance to reach the ears of those best placed to implement them. We out here in the wider world like these sessions because they give us a bit of extra insight into the firm's progress and future plans. So what are some of the things we can expect from the electric automaker in the coming months and years? Version 6.0 software is a few weeks away and includes real-time traffic information as well as increased suspension functionality, like lowering and heightening on command. Supercharger production is maxed out and installs are happening at a rate of around five per week. Superchargers will soon pump power at an impressive 135 kW rate, but will plateau there. An AWD Model S will be coming, perhaps around same time as the Model X. Bigger battery pack options may arrive as soon as next year. The new giga-factory for batteries could bring costs down by at least 30 percent, ideally 40 percent and will produce about 30 gigawatt-hours worth per year. After ramp up, volume production of Model X is expected to begin around April 2015. To improve comfort, there will be a seat modification available in the near term, and a different seat option available in a year (or so). Battery swapping between Los Angeles and San Francisco should be online in a few months. The company has analyzed energy usage in production process and claims energy payback happens in less than 10,000 miles. May release white paper on this soon. For lots more tips and tidbits (home energy-storage unit, anyone?) scroll down to watch video of the Netherlands exchange. The Norwegian event – held in a theater because of the crowds – can be viewed at this link. This content is hosted by a third party.