Elon Musk

Tesla announced a new program for its owners today. People who refer new buyers will receive $1000 for every sale of a Tesla vehicle they can initiate.

• Owners who make five referral orders will receive an invitation for them and a guest to attend the Gigafactory grand opening party.
• Those who make ten referral orders will get the right to purchase a Founder Series Model X, which is not available at any price, for the cost of a base Model X, an approximately $20,000 difference.
• The first owner in each region, North America, Europe, and Asia Pacific, to make ten referral orders will get a fully loaded Model X for free.

We had a hunch Tesla was up to something when Elon Musk said he had a “secret weapon agains the car dealers”. In May we wrote:

“At this point we can only speculate about what could be Tesla’s “secret weapon”, but here’s an idea: a reward program for Model S owners who are generating leads and offering test drives. SolarCity, which could be considered Tesla’s sister company, found success with their “Solar Ambassador Program“. People can sign up to an app and submit leads to SolarCity. If a lead turns into a sale, the “solar ambassador” receives $250. Tesla could implement a similar program with their current Model S owners. Tesla is known to have a very enthusiast and knowledgeable customer base. Owners in regions where Tesla is not allowed to sell directly could offer test drives to potential customers, talk about their experience with the car and then maybe submit a lead to Tesla in a similar manner as SolarCity does with their program.”

Some more details:

Anyone who orders a new Model S before September 30 using the referral link of a current owner will get $1,000 off the purchase price. In return, the current owner will get a $1,000 discount that can be applied to a new car, service center visit or accessories.

Referral discounts are limited to ten and are awarded on a first to purchase basis. New orders must be placed prior to September 30, 2015.

This really should spur both sales and salesmanship amongst current owners. It will also spur debate on whether Tesla owners really love their cars or they just want to make a quick $1000 (both!).

Update: USE MY LINK! http://ts.la/seth8185

Full text of offer follows:
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A great ground look at what’s happening in Hawaii, the state where energy costs the most and where there is plenty of solar energy.  Over 12% of Hawaiians have solar power which is 20x the US national average.  If you count all the rooftops on Oahu together, Solar is a 300MW plant that is more than double the size of the next biggest plant on the island.

The problem is: That power plant dies when the sun goes down and the other plants have to crank way back up.
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Solar panels on the roof of SpaceX’s headquarters in Hawthorne, CA.

SolarCity revealed in a recent SEC filling that the company expects SpaceX, Elon Musk’s rocket company, to buy $75 million in “SolarBonds”. Earlier this year, SpaceX already purchased $90 million in solar-backed bonds from SolarCity, just 2 months after the aerospace company landed a $1 billion equity deal with Google and Fidelity. If this second purchase goes through, SpaceX will be holding $165 million in SolarCity debt backed by solar assets. 
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From Hyperloop Technologies’ Twitter

The Hyperloop is a new mode of transportation detailed in a white paper by tech billionaire Elon Musk and with the help of informal teams of engineers from the two companies he leads; Tesla Motors and SpaceX. The idea is to create a reduced-pressure environment in which it will be easier to transport people or cargo at high-speed and efficiency. This environment would take the form of a tube in which pods would travel at up to 750 miles per hour. The original concept presented in the paper would have been able to travel the distance between Los Angeles and San Fransisco (354 miles) in less than 35 minutes.

Elon Musk, being busy running Tesla and SpaceX, decided to open-source the concept. A group of ex-SpaceX engineers, venture capitalists and other tech veterans didn’t waste any time and created Hyperloop Technologies to try to make the project a reality.
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During a presentation at the 2015 EIA Conference earlier this week, JB Straubel, Tesla’s Chief Technology Officer, confirmed the Model 3 is “planned for 2018”.  There’s been a lot of speculation around Tesla’s upcoming vehicle, which is set to be priced at around $35,000 before any EV incentives and have at least 200 miles of range. Just a few weeks ago at Tesla’s shareholders meeting, Elon Musk, Tesla CEO, said the Model 3 could be ready by 2017, but Straubel’s presentation indicates that 2018 might be more realistic. 
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Head over to Tesla’s IR Website to follow along the livestream of the yearly shareholder meeting. We’ll be jotting down notes here of information of interest.

1. Shareholder doesn’t like leather. Doesn’t think the non-leather option is enough.

2. Full autopilot will hit some customers by end of the month. Elon says he has been testing the latest builds of Autopilot on his own vehicle.

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The LA Times published an article over the weekend titled “Elon Musk’s growing empire is fueled by government subsidies”. The publication compiled data from government programs and estimated that Tesla Motors, SolarCity and SpaceX, three companies Musk is involved in, have benefited from “$4.9 billion in government support”. Saturday, I wrote an opinion piece about how I thought the article is grossly one-sided. Since then, the LA Times released a breakdown of the $4.9 billion figure.

Here is the complete breakdown with my comments on each government incentive and information that wasn’t included or simply glanced over in the LA Times article:

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The Times published an article over the weekend titled “Elon Musk’s growing empire is fueled by government subsidies”. The article is well-researched and mostly accurate, but it conveys a clear disdain for the fact that Musk’s companies are taking advantage of the government subsidies available to them.

The publication compiled data from government programs and came to the conclusion that Tesla Motors, SolarCity and SpaceX, three companies Musk is involved in, have benefited from an “estimated $4.9 billion in government support”. I will not dispute the actual amount, but I’d like to bring up a few points which weren’t discussed in the article and that are highly relevant to the subject.

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There has been a lot of uninformed banker-speak in the media about Tesla’s battery including by Bloomberg here. The problem is these folks don’t understand the new market that Tesla is opening up.

But I’m also turning to Bloomberg for the first smart analysis and that’s not surprisingly from Solar City’s Lyndon Rive (who happens to be Elon Musk’s Cousin – perhaps you noticed the accent?).

The complaints have been that the battery wall doesn’t make economic sense – that for the average household to go off the grid with these combined with solar (or wind), it would be incredibly expensive.

That’s correct…
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Out of the 5 founding members of Tesla motors, only two remain with the company; of course the now famous Elon Musk, Tesla’s CEO, Chairman and Product Architect, and JB Straubel, Tesla’s Chief Technology Officer. But the three expatriates; Marc Tarpenning, Martin Eberhard and Ian Wright, were instrumental to the founding of Tesla and although they left the car company, some in better terms than others, it is interesting to learn about what they are doing now. Unsurprisingly, most of them are still in the EV business.

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Elon Musk, although CEO of a company based on Silicon Valley, often finds himself without a place to sleep when he’s away from his $17 million home located in Los Angeles. According to statements from Google CEO Larry Page given to Ashlee Vance for his upcoming book on the Tesla CEO, Musk is “kind of homeless,” and sometimes sleeps over at Page’s house when he’s in town.
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Today Tesla announced their first quarter 2015 results and during the conference call discussing the results, Elon Musk confirmed Tesla plans to unveil their third generation vehicle, the Model 3, in March 2016.

Tesla already revealed their plan on starting the production of the Model 3 in 2017, but today Elon Musk said that he sees “late 2017” as more realistic.

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Apple’s car team

Speculation regarding Apple’s plans to build an electric car has been at an all-time over recent months. Earlier this year, we broke down the team that Apple has assembled to work on its car, several members of which were poached from Tesla. In Tesla’s Q1 2015 earnings call, however, CEO Elon Musk commented on Apple’s alleged electric car plans and the poaching war that has been ongoing between the two companies.

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Today Tesla announced their first quarter 2015 results and during the conference call discussing the results, Elon Musk revealed that Tesla received more than 38,000 reservations for the Tesla Powerwall. Musk called the reception of the battery packs “crazy”.

They expect 1.5 to 2 battery packs to be sold per installation. This would mean 57,000 to 76,000 packs, or over 0.5 GWh, just for the battery packs currently under reservation. Musk said they are likely already sold out through half of next year.

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Last week, Tesla unveiled their new battery packs for residential, commercial and utility scale use. During the event, Elon Musk talked about the “Powerwall”, a battery pack aimed at residential and small commercial projects, and the “Powerpack”, for bigger commercial and utility scale projects. Trademark fillings revealed today that Tesla obtained multiple trademarks for the use of the word “Powerwall” related to the sale, leasing, installation and monitoring of battery packs, but they also obtained the trademark for “Superpack”, which wasn’t mentioned during the presentation.

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[youtube=https://www.youtube.com/watch?v=yKORsrlN-2k]

Until Tesla updates their Youtube channel, here’s the short video if you weren’t able to stay up that late last night. My big takeaway was the price. I had expected to see something in the $$5-$10,000 range though for bigger homes that have electric cars, you will need 2 or more of these so the price starts creeping up.

https://twitter.com/markgurman/status/593995583733379074

Also, from the way Musk talks, he believes that they are going to make a ton of these. It will be interesting to see how battery stocks react today…and home generator companies.

[tweet https://twitter.com/llsethj/status/593991515602583553]
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11:24 PM
power wall is “beautiful, fits on the wall, garage wall or outside wall of your house. 6 inches thick. 3 feet across and tall. Really easy to fit in garage or your house.”

[11:25 PM] Mark Gurman: Connected to Internet.
Smart micro grids
Ten year guarantee
[11:25 PM] Mark Gurman: “Nothing remotely in these price points”
“Our goal here is to fundamentally change how the world uses energy”
[11:26 PM] Seth Weintraub: Tesla’s selling price to installers is $3500 for 10kWh and $3000 for 7kWh. (Price excludes inverter and installation.) Deliveries begin in late Summer.

[11:27 PM] Mark Gurman: Musk says great for cold climates when there are power outages and ice storms
Good thermal management system for very cold environments

[11:29 PM] Jon Jivan: Wayyy below suggested price of $13k by some outlets. Nice to see it come in so cheap.
[11:29 PM] Mark Gurman: “Going to be huge in Germany”

[11:31 PM] Mark Gurman: Doesn’t require heavy foundations
“the integration at the system level is the big differentiator”
Ready to scale to a very large scale today

[11:32 PM] Mark Gurman: they’ve been using it for a year in house

[11:33 PM] Mark Gurman: Tesla will continue to open source the patents on all these
[11:34 PM] Mark Gurman: Giga factory designed in the same as a giant car
Fundamentally different way than approaching manufacturing and engineering

[11:39 PM] Mark Gurman: Installable by two people in half hour to an hour
Installation prices up to distributors

[11:42 PM] Mark Gurman: “This would be bigger in terms of pack utilization than the car industry, actually comparable size”
[11:43 PM] Mark Gurman: international, still need to figure out certified installers however

[11:43 PM] Mark Gurman: it’ll scale as fast as we can scale it.

[11:44 PM] Mark Gurman: international next year
Germany and Australia late this year

[11:44 PM] Mark Gurman: China early next year

Musk said “we own tesla energy.com” when asked if they’d change from tesla motors as name

Update: Here’s our first look. Looks familiar

https://twitter.com/TomerDavid_/status/593964617161805824

https://twitter.com/markgurman/status/593967615887872000

Update: Tesla Energy!

Tesla Energy Press Kit

We’ll be covering the Tesla Battery announcement later tonight but Tesla just unleashed the livestream page. Check back soon. We’ll run down the highlights here. We’re expecting Tesla to announce home and industrial battery products that allow users to store solar and lower cost, high availability electricity for use at night or during higher cost/watt time periods.  The battery will be a down payment and rental fee which should more than pay for itself in electric bill savings.

There has been further speculation that, with this announcement, Tesla Motors will change its name to Tesla, Inc or Telsa Energy to note that it is an energy storage company, not just a car company.  We’ll find out more soon, stay tuned.

While Tesla’s stock price gained 6% this morning after a note from Deutsche Bank, short interest on Tesla’s stock increased to 21.3% of the outstanding shares. This is the highest level of short interest on Tesla in the past 13 months. Short interest contributed greatly to the previous few surges of Tesla’s stock price. In early 2013, short interest was over 30 million shares when Tesla reported a profit. Investors started covering their short position, which created a lot of demand for Tesla’s stock.

Tesla is holding an event Thursday to announce their home energy storage products. Historically, Tesla’s stock price increases prior to an announcement and then decreases after the event. This is commonly referred to as “buying on the rumor and selling on the news”. So far, this current event is not an exception with Tesla’s stock price gaining over 20% since Elon Musk tweeted about the upcoming event to be held at Tesla’s design studio in Hawthorne.

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Tesla Motors’ website and Twitter account were hacked late Saturday afternoon by a group claiming to be the “Autismsquad” or “RIPPGANG” on Twitter. From about 4:30 PM ET and for a little less than an hour, the website displayed the images pictured above (we have been removed the faces since showing seems to be part of the hacker’s plan).
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It is without any public announcement that Tesla updated its website Friday night to include a section for pre-owned vehicles. 178 cars were available in 11 locations in the US.

Unsurprisingly, most of the cars are equipped with the performance package. 116 out of the 178 pre-owned vehicles available in the US are P85 or P85+. When Tesla announced the new Model S versions with dual motor in October 2014, a significant number of performance Model S owners were showing interest in upgrading to the P85D.

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The US Dept of Energy released its eMPG ratings for Tesla’s new Model S 70D and it is the first Model S to go over the 100 MPGe.  In fact it is more that a 6% gain over the Model S 60 it replaced. Some of that efficiency will be chalked up to the dual motors that Elon Musk discussed in the launch of the D lineup. However, such a huge gain in performance might also be attributable to losses made in the weight in the vehicle since the S60 was launched 3 years ago.

If you look at the compare to the heavier battery 85KW models, you see particular gains in city driving where stopping and starting is more prevalent – a place where weight matters. Musk noted that the P85D would see some loss in efficiency due to the performance tires on the 3 second 0-60 supercar model.

Some older Tesla Model S stats below: