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Tesla CEO Elon Musk is Fortune’s Business Person of the Year

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Kind of a no-brainer IMO. Fortune doesn’t mention it but Musk has taken to social media and direct communication with the public unlike any CEO and certainly any Car/Aerospace CEO of our time. His honest and often overly transparent views have managed to turn media controversy into positives for the company.

Also throw in the fact that he’s CEO of two game-changing companies and the Chairman and largest stakeholder of another: Solar City….and if he wasn’t so busy, he’d be building a ultra high-speed hyperloop train connecting Los Angeles and San Francisco.

Also he doesn’t seem to be too terribly pretentious..and there you go.

FORTUNE NAMES ELON MUSK THE 2013 FORTUNE BUSINESSPERSON OF THE YEAR

FORTUNE’s 2013 List of the Top 50 People in Business Includes: The “Activist Investor” at #2; “Pony” Ma Huateng at #3; Angela Ahrendts at #4; Jeff Bewkes and Reed Hastings tie for #5

Musk Tells FORTUNE Contributor and TED Curator Chris Anderson About the Early Years at Tesla and SpaceX: “I thought the likeliest outcome was failure”

(New York, November 21, 2013) – Today, FORTUNE reveals its annual choice for Businessperson of the Year and names Elon Musk, CEO of Tesla Motors and SpaceX and Chairman of SolarCity, the 2013 FORTUNE Businessperson of the Year. Chris Anderson, TED Curator, writes the cover story on Musk, comparing him to Steve Jobs. FORTUNE also reveals its list of the Top 50 People in Business for 2013, which includes Pony Ma, Angela Ahrendts, Jeff Bezos, Larry Page, Warren Buffett, Marissa Mayer, Mark Zuckerberg and Jack Dorsey. FORTUNE Editors write: “Fortune’s annual list is filled with executives who defied expectations (buying a newspaper, leaving luxury for Apple), executed big turnarounds, and delivered stellar results for their shareholders.”

Adam Lashinsky writes the blurb:

Tesla, SpaceX, SolarCity

–Cultural impact
–No. 1 revenue gainer
–No. 2 stock price gainer

It is no Secret that Elon Musk is a triple threat: The co-founder of PayPal has gone on to disrupt aeronautics with Space Exploration Technologies, known as SpaceX; shake up the auto business with Tesla Motors; and retool the energy sector with SolarCity. (He is CEO of the first two companies and chairman and largest shareholder of the third.) But 2013 was an especially notable year for Musk, as investors and consumers wholeheartedly embraced his ideas and vision. After a rocky start a decade ago, Tesla has emerged to become the world’s most prominent maker of all-electric cars. Revenue at Tesla is up more than 12-fold for the first three quarters of the year, and the company is on track to top $2 billion in sales in 2013. The stock is up more than fourfold year to date, and that’s after giving back some gains when recent vehicle sales missed some analysts’ estimates. (A series of troubling car battery fires has not helped.) And just as SpaceX has helped reignite interest in space exploration, Musk’s plans for a “hyperloop” between San Francisco and Los Angeles got Americans buzzing about ultra-high-speed transit when Musk released his design plans in August. Musk’s creations have already made him tremendously wealthy — Bloomberg Wealth says he is worth $7.7 billion — but it is his audacity and tenacity that make him Fortune’s Businessperson of the Year.

Not terribly surprising considering the year and the press. Congrats!
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Tesla Model S tops Consumer Reports Customer Satisfaction Survey with 99 score, the ‘highest satisfaction score we’ve seen in years’

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[youtube=http://www.youtube.com/watch?v=VqUYPLfURHk]

Probably not a huge surprise for anyone following the electric car industry or the auto industry in general: Tesla Model S cars are loved by their customers. In fact, Consumer Reports shows it tested better than any other automobile in a customer feedback survey.

Lots of people love their cars. But as we’ve consistently seen in our yearly owner-satisfaction ratings, the vehicles that inspire the strongest loyalty are ones that are fun to drive, deliver great fuel economy, are fashionably green, or envelop you in a high-tech, luxurious driving environment. So perhaps it shouldn’t be a surprise that the Tesla Model S all-electric luxury sports sedan, which provides all of those attributes in one car, topped our latest ratings with the highest satisfaction score we’ve seen in years: 99 out of 100.

While the $89,650 Model S isn’t for everyone, we did draw about 600 survey responses from owners of  2012 and 2013 models. Moreover, its owner-satisfaction score matches the near-perfect 99 overall test score that the Tesla earned in our test program, which made it our highest-rated vehicle. It stands out for its innovative design, outstanding performance, surprising practicality, long 200-mile-plus driving range for an electric car, and low driving costs.

Other models that topped their categories in our latest owner-satisfaction ratings are the Porsche Boxstersports car (which was second overall), Audi A6 luxury sedan, Mazda6 midsized sedan, Subaru Forester SUV, V8 Dodge Charger large sedan, and diesel-powered Volkswagen Golf TDI compact car.

Our annual owner-satisfaction survey, conducted by the Consumer Reports National Research Center, asks Consumer Reports magazine and Web subscribers a key, revealing question, “Considering all factors (price, performance, reliability, comfort, enjoyment, etc.), would you get this car if you had it to do all over again?” A model’s score is based on the percentage of respondents who answered “definitely yes.” This year, we received responses on about 350,000 vehicles and more than 285 models and variants spanning the 2011 through 2014 model years.

BMW has 10,000 i3 orders and has sold out its i8 inventory for 2014 and into 2015

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[youtube=http://www.youtube.com/watch?v=-SoQNX5WF1M]
2 BMW i8s at a GAS STATION

Reuters got the numbers from the Los Angeles Auto Show

Luxury carmaker BMW has orders for nearly 10,000 of its i3 electric cars, the first of which were delivered in Germany last week, the company’s global sales chief, Ian Robertson, said at the Los Angeles Auto Show on Wednesday.

Robertson also said the BMW i8 plug-in hybrid sports car due to be introduced in mid-2014 has sold out for its first year of availability. He did not say how many the company will sell in that first year.

Yamaha Motiv electric ‘smart car’ detailed

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[youtube=http://www.youtube.com/watch?v=t4GTvrvuOBs]

Nice looking Smart Car-like design from Yamaha. Better yet, a full electric option.

Engine choice is currently open–but both gasoline and electric options could be explored, Murray’s iStream process accommodating both. The concept vehicle is electric, and weighs just 1,609 lbs.

iStream itself will be the star of the show, vastly reducing the cost and time associated with building such a vehicle, while tube frame construction makes it near-endlessly adaptable. These should contribute to a lower bottom line.

Tesla CEO Elon Musk takes to the Blog to set record straight on fires with 3-step plan

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As reported this weekend, Tesla has announced that it has removed the Air Suspension lowering as part of a three step plan to deal with the media attention. The whole Blog post is worth a read but here are the important bits:

First, we have rolled out an over-the-air update to the air suspension that will result in greater ground clearance at highway speeds. To be clear, this is about reducing the chances of underbody impact damage, not improving safety. The theoretical probability of a fire injury is already vanishingly small and the actual number to date is zero. Another software update expected in January will give the driver direct control of the air suspension ride height transitions.

Second, we have requested that the National Highway Traffic Safety Administration conduct a full investigation as soon as possible into the fire incidents. While we think it is highly unlikely, if something is discovered that would result in a material improvement in occupant fire safety, we will immediately apply that change to new cars and offer it as a free retrofit to all existing cars. Given that the incidence of fires in the Model S is far lower than combustion cars and that there have been no resulting injuries, this did not at first seem like a good use of NHTSA’s time compared to the hundreds of gasoline fire deaths per year that warrant their attention. However, there is a larger issue at stake: if a false perception about the safety of electric cars is allowed to linger, it will delay the advent of sustainable transport and increase the risk of global climate change, with potentially disastrous consequences worldwide. That cannot be allowed to happen.

Third, to reinforce how strongly we feel about the low risk of fire in our cars, we will be amending our warranty policy to cover damage due to a fire, even if due to driver error. Unless a Model S owner actively tries to destroy the car, they are covered. Our goal here is to eliminate any concern about the cost of such an event and ensure that over time the Model S has the lowest insurance cost of any car at our price point. Either our belief in the safety of our car is correct and this is a minor cost or we are wrong, in which case the right thing is for Tesla to bear the cost rather than the car buyer.

TSLA shares are again down in morning pre-market trading.

Addressing highway debris fires, Tesla rolls back Smart Air Suspension highway lowering in latest firmware update

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Via Teslamotors.com

Multiple drivers are reporting that after the latest 5.8 Firmware update, their Model S with Smart Air Suspension is no longer lowering at highway speeds. It is impossible to say for sure without a statement from Tesla (requested), but it would appear that the move is in response to the recent accidents where debris from the highway catches under the Model S, puncturing the battery armor and eventually causing a fire.

Similar incidents happened in Seattle and Nashville over the past two months which have rocked Tesla’s share price. The odds of a Tesla fire still fall way below the national average for internal combustion engines but the media firestorm has been intense. At least one driver isn’t happy about the change:

AmpedRealtor 

I paid money for the air suspension because it offers a more aerodynamic profile at freeway speeds as well as improved range. That is why I bought it. Now Tesla is taking that away, so I would like my money back. How can they legally remove a feature that I paid for, after I paid for it? That seems like stealing, doesn’t it?

Lowering the Model S at highway speeds was meant to lower the drag and improve speed and battery range. It isn’t certain how this will affect Model S owners of if a manual over-ride will be put in place to replace this pulled feature.

Update: Tesla has acknowledged the change noting Another software update expected in January will give the driver direct control of the air suspension ride height transitions.


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Renault shipping Zoe EVs with batteries that you don’t own which can be bricked via DRM

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…or how not to endear your prospective customers to your company.

Forget extra cupholders or power windows: the new Renault Zoe comes with a “feature” that absolutely nobody wants. Instead of selling consumers a complete car that they can use, repair, and upgrade as they see fit, Renault has opted to lock purchasers into a rental contract with a battery manufacturer and enforce that contract with digital rights management (DRM) restrictions that can remotely prevent the battery from charging at all.

We’ve long joined makers and tinkerers in warning that, as software becomes a part of more and more everyday devices, DRM and the legal restrictions on circumventing it will create hurdles to standard repairs and even operation. In the U.S., a car manufacturer who had wrapped its onboard software in technical restrictions could argue that attempts to get around those are in violation of the Digital Millennium Copyright Act (DMCA)—specifically section 1201, the notorious “anti-circumvention” provisions. These provisions make it illegal for users to circumvent DRM or help others do so, even if the purpose is perfectly legal otherwise.  Similar laws exist around the world, and are even written into some international trade agreements—including, according to a recently leaked draft, the Trans-Pacific Partnership Agreement.

Since the DMCA became law in 1998, Section 1201 has resulted in countless unintended consequences. It has chilled innovation, stifled the speech of legitimate security researchers, and interfered with consumer rights. Section 1201 came under particular fire this year because it may prevent consumers from unlocking their own phones to use with different carriers. After a broadly popular petition raised the issue, the White House acknowledged that the restriction is out of line with common sense.

Tesla 5.8 Firmware Update rolling out to Model S owners just 10 days after 5.6

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Tesla updated my, as well as many other, Model S cars this weekend with the 5.8 firmware.  5.8 doesn’t seem to be a big update from 5.6 that I got just 10 days ago. Some drivers have reported:

* A wipers service mode. Who would’ve know? 🙂
* A reset TPMS button. Nice.
* MAC Address display in Wifi settings. Who was it again asking for this to setup their router’s MAC filter?
+ all the goodies which were already in 5.6, of course.

Also – it seems to accelerate a little smoother all of a sudden but that’s likely just me being overly sensitive.


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Injuries reported at Tesla factory in Fremont from aluminum casting press

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Official statement from Tesla Motors, on what happened today:

“There was a failure in a low pressure aluminum casting press. Three employees were injured by hot metal from that press. We are making sure that they receive the best possible care.”

It isn’t certain if there was a fire at all, though there were many reports of a fire based on the fire trucks on the scene (which were likely precautionary).

Scenes from the factory below:
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Tesla CEO Elon Musk responds to George Clooney’s Roadster remarks

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In a recent Esquire article, environmentalist/activist/actor George Glooney relayed his bad experiences with his original Tesla Roadster which he later auctioned off for $99,000 for charity

“Hey, where’s the Tesla?” I said when I was leaving his house. I was just giving him shit; I didn’t know if he had a Tesla or not, and was trying to see if even George Clooney was susceptible to Hollywood cliché.

“I had a Tesla. I was one of the first cats with a Tesla. I think I was, like, number five on the list. But I’m telling you, I’ve been on the side of the road a while in that thing. And I said to them, ‘Look, guys, why am I always stuck on the side of the fucking road? Make it work, one way or another.’ ”

Musk, in an attempt to set the record straight, tweeted the following tonight:

[tweet https://twitter.com/elonmusk/status/400411503742164992]

The implication is that the 5th Tesla off the line may have had more issues than one 5 years later. Perhaps Clooney should give it another try. 


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An eight year old Chinese girl’s lung cancer is linked to air pollution

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This is a sad story.

An eight-year-old girl, living near a major road in the Jiangsu Province of Eastern China, has become the youngest person in China, and possibly in the world, to be diagnosed with lung cancer caused by pollution—the cause of her disease according to Chinese officials. And last month, the World Health Organization classified air pollution as a major human carcinogen.

According to the Environmental Protection Agency, motor vehicles produce roughly one-half of pollutants like VOCs, nitrogen oxide and particulate matter. Seventy-five percent of carbon monoxide emissions come from automobiles. In urban areas, harmful automotive emissions are responsible for anywhere between 50 and 90 percent of air pollution. All told, that’s quite a lot of air pollution coming from our vehicles. When there is more scientific evidence proving that we are all poisoning ourselves, perhaps there will be a bigger push for electric cars.

Energy literacy is important: People don’t know electric car miles are less than a third the cost of gas

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“Electric cars are too expensive? Not if you actually drive them!”

[tweet https://twitter.com/wsj/status/400279988089655296]

The WSJ reminds us about America’s energy illiteracy with the EPA’s cost of energy calculations. The above graph should be plastered everywhere in the world not only because of where prices now stand – it costs almost 4 times as much on average to drive with gasoline as it does with Electric – but also looking at the trend.  Petroleum is getting more expensive far faster than electric.

With solar, wind, hydro and other methods of getting electricity also booming, there is no shortage of supply compared to the finite amount of petroleum we can get from shale, deepwater drilling and arctic refuges. 
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Future Tesla Model S functionality to include caching content, ‘music and other features to become more engaging and robust’

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As part of the 5.6 update, my Tesla reminds me quite often to set up my home Wifi (hey, I tried!).  It is interesting to see what they use as bait however to keep me coming back.

I would really love to see some caching done on maps – if just the 2 miles around my house were cached, I’m not sure I’d use a quarter of the data I currently use. Downloading music would also be nice as the GSM network in Westchester NY is kind of a joke.  A Google Play All Access type of model would be nice – something where I could download a library from the web (or even my home NAS!) and have it stored locally. Currently about half of my listening on Slacker is filled with skips and starts due to poor network connectivity.

As for other features, I’m assuming Tesla will stay away from video on the big screen but it would be nice if they hooked up with Audible for books on tape or other news orgs (NPR?) for audio feeds and podcasts.

Top Gear USA takes on electric cars: Fiat 500E, Ford Focus E and Nissan Leaf. Winner gets to test Tesla [Video]

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Top Gear USA did an Electric Episode called ‘Fully Charged’ yesterday showcasing three all-electric cars: Fiat 500E, Ford Fusion and Nissan Leaf. The tests were mostly silly and these petrol-heads probably aren’t a good representation of the car-buying public

  • “I guess a silent car is good if you want to kill blind people”
  • Reverse Race.
  • Race through a mall vs. Mall cop on a Segway
  • Burglar test: silence through suburbs

..but there were a few redeeming moments.

They took a break from the silly tests to show electric dragsters which smoked a decked out Camaro ZL1. Also at the end, a Tesla Model S smoked that same Camaro ZL1 in a drag test then proceeded to beat a $100K Mercedes in a road test (with an extra large man in the car). If you can’t view it at the History Channel, this Reddit thread has some other ideas.
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Third Tesla Fire, this time outside of Nashville

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[tweet https://twitter.com/NASHVILLAIN_/status/398189459860389888]

According to the Twitter account holder, it happened around 1:30 in the afternoon today on the 1-24 and the driver was able to walk away.The damage doesn’t appear to be severe this time around.  With the Mexican fire and the Seattle fire, that makes three in five weeks. Nothing to be alarmed about.

Tesla gave the following statement

 “We have been in contact with the driver, who was not injured and believes the car saved his life. Our team is on its way to Tennessee to learn more about what happened. We will provide more information when we’re able to do so.”

More than 150,000 gasoline car fires occur in the U.S. every year. That’s about 17 car fires per hour, every day. This results in hundreds of deaths and injuries a year, and accounts for 10 percent of all fires in the US, according to the National Fire Protection Association.

Some more pictures below:


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Tesla Model S 5.6 Firmware OTA upgrade rolling out to US owners

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I just got my 5.6 firmware update without calling Tesla. I was on 4.5.1 previously. It took about 20 minutes to install after a 2 minute shutdown procedure.  After the update I got the screen above.

I did have some trouble connecting to my home Wifi networks as you can see toward the end there.  I’m going to give it another try tomorrow, I wonder if it isn’t encryption problems. I also want to try a Verizon LTE Mifi.

I really love the updates to maps. Right away I can see the usefulness of the compass and directional UI.

I know 5.6 has been rolling out to Europeans for around a month but I don’t know many folks stateside that have it via OTA without it being pushed for issues.

Also, I hear this update reduces the vampire drain effect. That would be a big deal for me because I lose at least 5 miles per 24 hours unplugged. 
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Notes and transcript from Tesla’s Q3 2013 Earnings Call: “A Giga-battery factory needs to be built”

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Unlike many companies, Tesla’s earnings calls actually have a lot of interesting information. Last night’s was no exception. I was listening to the call live but it also helps to look at the transcript below provided by Seeking Alpha.

The main constraint to production is batteries. No one asked (but I would have) how many Model Ses Tesla could have made if there wasn’t a constraint on batteries.  Sure Tesla recently signed a deal with Panasonic for an incredible 2 Billion Cells over the next 4 years but that won’t nearly cover what Musk believes they will need.

Certainly people shouldn’t look at the X number of sales over four years and assume that that’s the number of cars that we will make. I think we will make towards the back end of that a lot more cars and so there needs to be other agreements with some combination of Panasonic, maybe with others. Panasonic is also our primary partner, but when it comes to the high volume third-generation vehicle it’s clear that there is going to need to be incremental production capacity created at this existing look today, so we are in the process of figuring that out and there is going to need to be some kind of giga factory built….

Well, like I said, this isn’t the right time to talk in detail about our plans for kind of a giga factory but except to say, obviously, we are acknowledging the fact that one needs to be built and we are looking at a variety of different locations. I don’t think permitting is going to be the driver here. This is going to be a very green factory. There going to be a lot of solar power. It’s going to have essentially zero emissions and there are no toxic elements that are going to come out of this factory and we will build in recycling capability right into the factory. So old packs would come in one side and get reprocessed as new packs. So a way to think of this is like a factory is the machine that works for machine and that itself has a version, just like you have a version of a product. It’s like a version of the factory. So we are trying to figure out what’s the right way to do version one at this giga factory and we want to be thoughtful about it and it is going to be a really giant facility, like say we are doing that something that’s comparable to all lithium-ion production in the world in one factory.

Perhaps most interesting out of all of the is is that while there are some improvements to batteries being made, we’re still going to have the same basic Lithium Ion cells in cars 4 years from now. Why? Because Tesla plans to make so many cars in one year alone that their own production would be the equivalent of the current world output of Li-on batteries.

But then it is going to take us a while to build out the capacity for that third generation vehicle and we are going to sort of selling battery pack capacity, maybe because ultimately when you produce 500,000 vehicles, from a new plant then we need self capacity that’s commensurate with that which is maybe bigger than all the lithium-ion production in the world today or at least on par with it.

More from the call follows:

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