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Recharge Wrap-up: Tesla tour recounted, Smart using Renault electric motors

A man recounts his recent Tesla factory tour in a new video. When Michael Brown toured Tesla's Fremont facility on September 10, he learned a bit about the production process, saw the enormous stamping equipment Toyota left behind, and even caught a glimpse of the finished Model X SUV. Brown was told very few people in the factory had seen the production version of the Model X. Check out the video above, and read more Teslarati. Johnson Controls is expanding production capacity for Absorbent Glass Mat batteries for fuel-saving stop-start systems. With the market for stop-start batteries possibly growing from 22 million to 56 million by 2020, Johnson is investing $555 million from 2011 to 2020 to be able to build more batteries in the US, Germany and, China. The company is planning to build a $200-million battery plant in Shenyang, China capable of producing 6 million batteries per year. "Johnson Controls is currently the world's leading provider of batteries for Start-Stop vehicles and we plan to stay that way," says Johnson's Lisa Bahash. Read more at Green Car Congress. Renault will provide electric motors for the new Smart ED. The electric versions of the Smart Fourtwo and Forfour will use the same motor as Renault's Zoe EV. The batteries for the Smart cars will be manufactured by Daimler's own Deutsche ACCUmotive. The Renault-powered Smart Fortwo and Forfour Electric Drive are slated to go on sale in 2016. Renault and Daimler have had a working alliance responsible for 13 projects since 2010. Read more from Automotive News Europe. Related Gallery Tesla Factory News Source: Teslarati, YouTube: Michael Brown, Green Car Congress, Automotive News Europe Green Plants/Manufacturing smart Tesla Renault Electric Hybrid Videos recharge wrapup

Why Tesla's $35,000 Model E is a pipe dream

A car that costs 80 percent as much to produce as another can't be half the price. That's the simplistic version why Stanphyl Capital Management says Tesla Motors will not be able to sell its "mass market" sedan for the low, low (by luxury electric-vehicle standards) Elon Musk-backed price of $35,000. In fact, the California-based automaker will take about a $13,000 bath for each unit it sells of the new vehicle, now referred to as the Model E. Stanphyl Capital Management breaks down the fourth-quarter costs and revenue associated Tesla's Model S, of which it sold about 6,900 units during the last three months of the year. In a nutshell, Tesla generated a whopping $106,000 per vehicle sold, with about two-thirds of the company's gross profit coming from battery and optional upgrades. And while Tesla may be able to get the Model E battery costs down to about $8,100 compared to the $15,600 cost of the Model S battery (the smaller car will use a smaller battery that will provide about a 200-mile single-charge range), all of the other stuff brings the Model E's unit cost up to about $48,000. That compares to the $59,600 average cost of a Model S. Fremont, we have a problem. Reports came out in December saying that the Model E may be unveiled at one of next year's auto shows and sales could start as early as 2016. The argument against the possibility of a $35,000 Model E may sound reasonable on paper, but more than a few people have lost money betting against Elon Musk. You can read more at ValueWalk.

Tesla's gains on the dealership status quo are freaking people out

Tesla took two more steps towards being allowed to sell its vehicles as it chooses (that is, direct to customers) this week. Legislative efforts in New Jersey and New York both gave the California automaker legal permission (or near permission) to operate its stores. It's gotten so bad – or good, depending on your views, that other automakers are starting to speak up. Yesterday, Tesla got official permission to keeps it five stores open in New York thanks to the signature of Governor Andrew Cuomo on a pro-Tesla bill that passed earlier this year. This is not a surprise. The bill also makes it difficult for any other automaker to operate its own stores in the state. Other automakers are now saying that the dealers have too much power. In nearby New Jersey, the state Assembly voted yesterday to allow EVs to be sold directly to the consumer. This vote follow an Assembly committee's vote earlier this month and the bill now moves to the New Jersey Senate and, if it passes, would need to be signed by Governor Chris Christie before becoming law. You may remember there's a bit of bad blood there. This is all quite a turnaround from mid-March, when the state legislature voted against direct sales. If passed, Tesla would be allowed to operate four stores in the state. As you can see, progress is being made. And that's changing the battlefield. The National Automobile Dealers Association (NADA) released a new package of pro-dealership information called "Get the Facts: The Benefits of Franchised Auto Dealers" to take the other side. NADA says that the "current franchised new-car dealer model has benefited consumers, manufacturers and local communities for nearly a century" and then lays out its reasons why. You can watch the NADA's short Get The Facts video below. Perhaps most interestingly, other automakers – through the Auto Alliance – are now saying out loud that the dealers have too much power. In a statement to Automotive News, the Alliance said, " When we look at the big picture, we may be at a tipping point. If dealer groups continue their push for more onerous franchise laws, we will be forced to keep an open mind about how best to serve new-car buyers in the future." That was enough to scare the chairman of the Automotive Trade Association Executives, who told AN that, the Alliance coming out against the franchise system was a "recipe for disaster." This content is hosted by a third party. To view it, please update your privacy preferences.