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Tesla appears to be winning direct sales battle in Missouri

Last week, it looked like Missouri would join the list of states where Tesla Motors would not be allowed to sell its all-electric vehicles directly to consumers. Without warning, language was inserted into a bill about off-road vehicles what would have prevented direct sales in the state. Tesla called it a "sneak attack" and tried to get supporters to let lawmakers know the law was a bad idea. "It is not clear that the statues apply to a seller like Tesla" – Missouri Department of Revenue Thanks to some digging by Tesla fans over at the Tesla Motors Club, it became clear that one of the main drivers of the anti-Tesla legislation was conservative state senator Mike Kehoe, a former Ford and Lincoln-Mercury auto dealer. For some time, Kehoe has been asking the Missouri Department of Revenue if Tesla should have gotten a license to operate its one store in the state (in St. Louis) and said that the automaker's moves were, "clearly designed to circumvent the traditional franchise model for the distribution and sale of new motor vehicles." The DOR responded by saying, "It is clear under Missouri law that traditional manufacturers who already have franchised dealerships in the state may not sell cars directly to consumers. It is not clear that the statues apply to a seller like Tesla, which apparently has not entered into franchise relationships with independent dealers." After Kehoe got that response, it seems, he added the language to the bill. You can read the bill here. The tide may be turning against the proposed law, though. Tesla has apparently hired 10 lobbyists to makes its case. Local newspaper The Kansas City Star published an opinion column yesterday in support of the automaker. "As a business offering something new and better for the environment overall, Tesla should have been given allowances to operate in a different way in the state," the paper wrote. And the state House Republican majority leader, John Diehl, says he has no plans to move the bill forward because lawmakers are worried it would put a limit on the free market and have unintended consequences. Read more here: http://www.kansascity.com/2014/05/12/5019618/missouri-house-leader-not-fond.html#storylink=cp

Tesla Announces Details Of Proposed Gigafactory Battery Plant

It's another day and electric automaker Tesla Motors is in the news once again. Tesla announced Wednesday that they will be offering $1.6 billion in convertible senior notes to the public. According to the press release, Tesla will use these funds to assist in "the development and production of its 'Gen III' mass market vehicle, the development of the Tesla Gigafactory and other general corporate purposes." The "Gigafactory" is a proposed lithium-ion battery plant that will sit on an estimated 500-1000 acres of land, employ around 6,500 employees and have an estimated vehicle output of 500,000 units per year in 2020, according to the automaker. That amount of vehicles will require an estimated 50 gigawatt hours of energy per year in battery pack production. That's more energy in lithium-ion batteries than was produced globally in 2013. Construction of the Gigafactory is anticipated to take place during 2014 and all of 2015, followed by equipment installation in 2016. First production launch is scheduled for 2017. In keeping with the environmentally friendly theme, the Gigafactory will be "heavily powered" by both solar and wind energy, and according to our colleagues at Autoblog Green, "will also use older Tesla packs for storage." Tesla still hasn't announced in which state the factory will be built, but it has been narrowed down to four: Arizona, New Mexico, Nevada, and Texas. More details can be read in this PDF document released by Tesla and in the press release below. TESLA ANNOUNCES $1.6 BILLION CONVERTIBLE NOTES OFFERING WEDNESDAY, FEBRUARY 26, 2014 PALO ALTO, Calif., February 26, 2014 – Tesla announced today an offering of $1.6 billion aggregate principal amount of convertible senior notes in an underwritten registered public offering. Of the total offering, Tesla will offer $800 million aggregate principal amount of convertible senior notes due 2019 and $800 million aggregate principal amount of convertible senior notes due 2021. In addition, Tesla intends to grant the underwriters a 30-day option to purchase up to an additional $120 million in aggregate principal amount of convertible senior notes due 2019 and an additional $120 million in aggregate principal amount of convertible senior notes due 2021, for a total potential offering size of up to $1.84 billion. Tesla intends to use the net proceeds from the offering to accelerate the growth of its business in the U.S.

New Jersey will let Tesla continue selling EVs until April 15

Tesla sales in New Jersey were supposed to end today, following the state legislature vote a few weeks ago to pull Tesla's sales license there. At the eleventh hour, though, Gov. Chris Christie's administration has extended the deadline to April 15. The specifics of the situation are that the New Jersey Motor Vehicle Commission (MVC) is going to give new car dealers until the middle of the month to submit their franchise agreement (which, of course, Tesla stores don't have). That means, for now, it's business as usual The two-week extension could keep Tesla alive in the Garden State. While it's only a two-week extension, it could be enough to keep the California automaker alive in the Garden State. This is because state assemblyman Tim Eustace (a Democrat and EV driver) submitted a bill the other day that would allow Tesla to sell cars directly to customers in New Jersey. One interesting component of Eustace's bill is that it only applies to zero-emission vehicles as long as they make up less than four percent of all the new cars sold in the state. Eustace told NJ.com that this bill might be fast-tracked into law because it has leadership support. Jim Appleton, the president of the New Jersey Coalition of Automotive Retailer (the force behind the anti-Tesla movement), said, "to the extent that there is legislation that would allow an all-zero emission vehicle automaker to enter the market for a period of time without franchises, before they eventually convert to a franchise system, it makes sense." You can read the proposed bill here. The MVC gave Tesla a license to sell cars in 2012 and Tesla now operates two stores in New Jersey, one in the Garden State Plaza in Paramus and the other in Short Hills.