2020 Tesla Model X on 2040-cars

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Bond manager has odd advice for Tesla: stop making cars

Tesla Motors said in the release of its first-quarter earnings Wednesday that it will boost its quarterly production on its Model S luxury sedan to as many as 9,000 from the approximately 7,500 it made during the first three months of the year. Bond manager Jeffrey Gundlach doesn't believe that's a good thing. Gundlach, founder of DoubleLine Capital LP, told Bloomberg News that, while Tesla is a better investment than fast-growth companies like Twitter, the automaker would improve its financial results by halting production of its vehicles and dedicating itself to making battery packs for other automakers. A spokesman for Tesla, whose shares are up almost 40 percent this year, declined to comment to Bloomberg. We'll just sit here and imagine Tesla-powered Nissan Leafs and Chevy Volts. Back in the real world, aside from its own vehicles, Tesla makes battery packs for the Toyota RAV4 EV and for some versions of the Smart Fortwo ED and the B-Class EV. Tesla and Toyota first announced their collaborative effort in 2010, which included Toyota's equity investment in Tesla as Tesla prepared to take over the old NUMMI plant in the San Francisco Bay Area. Tesla said Wednesday that it took a $49.8-million first-quarter loss. Compare that to a year-earlier net income of $11.2 million. That's despite boosting revenue 10 percent from a year earlier to $620.5 million. That's largely because Tesla's selling, general and administrative costs more than doubled from a year earlier to $117.6 million.

Tesla 'Model E' to likely get steel construction, sane price tag

Tesla may have made major inroads with its Model S, and it's poised to enter new territory when it finally starts selling its Model X, an iconoclastic gullwing crossover. Neither of those may be as important as the model thereafter, which is expected to be its make-or-break sedan. It won't be called the Model E (thanks a lot, Ford), but the BMW 3 Series-challenging EV will be the litmus test that will determine if Tesla's EV future is palatable to the masses.
Part of that means proving that Tesla can be an affordable alternative to conventional internal-combustion-powered vehicles. According to the company's VP of engineering, Chris Porritt, the new sedan will do just that, thanks in no small part to the company's forthcoming gigafactory battery operations. But beyond that project, there are other things about this new EV that will make it a more alluring option to the average consumer.
Porritt mentioned "appropriate materials," to the UK's Autocar, which is likely another way of saying it's ditching the aluminum-intensive architecture of its big brother.

Has Tesla's fire chilled the battery car market?

The nascent battery-car market just might be short-circuiting.
If this year is average, about 194,000 vehicles will catch fire before the ball drops in Times Square. And, for the moment at least, just one of them will have been a Tesla Model S. Of course, it didn't help that a passerby happened to catch that blaze in the Seattle suburbs earlier this month, quickly posting the video on YouTube (you can watch it yourself below).