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Will Bob Lutz's VL Automotive really offer V8 conversions for Tesla Model S?

VL Automotive is closely tied up with Fisker. The company's first product, the Destino, is a converted Karma and the Destino Red Concept, just unveiled at the Detroit Auto Show, is the same hardtop Karma convertible that Fisker showed in 2009. So, what a surprise it was to see that Bob Lutz, who owns half of VL Automotive, is ready to convert a brand new electric vehicle: the Tesla Model S. A gas-powered Tesla? Say what? A gas-powered Tesla? Say what? That's at least one way to read this short article in The Detroit News. There's not a lot of context and a distinct lack of details, so we're left wondering if maybe Lutz just meant that Model S owners can buy a Destino. You can read the exchange for yourself here. What we do know is that Lutz said that VL Automotive has already sold nine Destino conversions. The cars cost $200,000, up from the previous estimate of $180,000, and well above the $116,000 max price tag on the original Karma. For your money, you get a 6.2-liter V8 taken from a Chevrolet Corvette that puts out 636 horsepower and can beat the 135-mile-per-hour top speed that the Karma has. Lutz said that all could add up to sales of around 200 or 300 Destinos each year. Featured Gallery VL Destino Red Concept: Detroit 2014 View 21 Photos News Source: The Detroit News via Green Car ReportsImage Credit: Copyright 2014 Drew Phillips / AOL Green Detroit Auto Show Fisker Tesla Electric Hybrid PHEV vl automotive destino

California grants Tesla $34.7 million tax break to boost production

Tesla Motors' plans to expand just got a big boost, as the state of California has announced it will give the Palo Alto-based company a $34.7 million tax break to increase its production capacity. The EV manufacturer is being given a pass on sales and use taxes on up to $415 million worth of equipment, according to a report on the San Francisco Chronicle's website.
Tesla is currently on track to produce 21,500 cars, although the planned expansion should more than double that capacity to 56,500 units, adding 112 jobs at Tesla's Fremont factory. "I'm pleased we could take this action to encourage Tesla to expand its electric vehicle production in California, which will create green jobs and improve our air quality," State Treasurer Bill Lockyer said. The state estimates that between the additional jobs and (hoped for) increase in sales, it will recoup the costs of the tax break in more taxes.

Tesla gigafactory will source materials from North America to keep things green

It's one thing for the Big 3 to get tires and engine parts from cities along the US Rust Belt. It's another thing altogether, though, for Tesla Motors to source far more esoteric materials like graphite, cobalt and lithium from Canada and the northern US. But that's what the California-based company has in mind, and it's all in the name of environmental friendliness and cost, Bloomberg News says. Tesla is looking to bring its raw-material sourcing to this side of the Pond by the time it opens its massive gigafactory that may produce as many as 500,000 vehicles annually, Bloomberg says, citing Tesla spokeswoman Liz Jarvis-Shean. And while the raw-material price may be higher (and driven up further with the additional demand from Tesla), those costs may be offset by the fact that there will be far less transportation and logistics involved. "When all costs are considered, it should be cheaper to source most materials from as nearby as possible" - Tesla's Liz Jarvis-Shean "Transportation impacts are very significant on the heaviest raw materials if they need to be moved from halfway around the world," Jarvis-Shean wrote in an e-mail to AutoblogGreen, adding that there will be additional cost savings from reduced shipping time and less transit-related working capital requirements. "In the long term, when all costs are considered, it should be cheaper to source most materials from as nearby as possible." There are geopolitical issues as well. For instance, China is shutting down some of its graphite mines because of pollution issues, while much of the world's cobalt comes from war-torn Congo, though Tesla says it gets its cobalt from the Philippines. Most of the graphite in Tesla's Model S is of the synthetic variety from Japan and Europe. Of course, Tesla's still trying to figure out where to put its gigafactory, and has said it will be in one of four states: Arizona, Nevada, New Mexico or Texas. The factory will cost an estimated $5 billion and may support 6,500 jobs, so state governments are already starting to campaign to be the automaker's future production home. Regardless, Jarvis-Shean estimated that the sheer economies of scale from the gigafactory will reduce battery-pack costs per kilowatt hour for the company's "mass market" model (sometimes referred to as the Model E) by 30 percent after a full year of production.