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Tesla: A guide from the original Roadster to today

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Tesla is a transportation and energy company. It sells vehicles under its 'Tesla Motors' division and stationary battery pack for home, commercial and utility-scale projects under its 'Tesla Energy' division.

Tesla

The history of Tesla

Sure, you now know Tesla as a Cerberus of energy innovation, software, and booming stock, but it wasn’t always the clean energy juggernaut we know today. In fact, Tesla as a company has overcome quite a few obstacles to get where it stands today as the most valuable automaker by market cap.

Tesla Inc. was founded in 2003 as Tesla Motors by Martin Eberhard and Marc Tarpenning. If you’ve been living on a deserted island or under a large rock the past 18 years, you may be surprised to hear that the company’s name is a tribute to inventor Nikola Tesla.

Regardless, Ian Wright joined Tesla shortly thereafter, and the three original employees were off to the races in search of funding.

That’s where Elon Musk comes in. In early 2004, Tesla Motors managed to raise $7.5 million in series A funding, including investor Musk, who contributed all but $1 million of that total.

As a result, Musk joined the company as chairman of the board. J. B. Straubel, now of QuantumScape fame, joined Tesla in May 2004 as employee #5. As a result of the first of many controversies surrounding the company, a 2009 lawsuit settlement allows all five of the original employees to call themselves co-founders.

Elon Musk

After an early investment and a role at the company, Musk began spearheading public statements for Tesla while helping facilitate more funding.

This included several additional rounds, each garnering tens of millions of dollars. Musk openly discussed the company strategy of creating a sleek and stylish sports car to attract early adopters (and their wallets) before expanding production to more practical and affordable EVs with the cash flow to scale. This led to the introduction of Tesla’s flagship EV, the Roadster, which debuted as a prototype in the summer of 2006.

In 2007, cofounder Martin Eberhard was asked to step down as CEO by the board of directors, and by early 2008, neither Eberhard nor Tarpenning was still at Tesla. That is when Musk took over as CEO, a position he still holds today… along with “Technoking of Tesla.”

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The Roadster

The Tesla Roadster hit production in 2008 as the original electric vehicle to debut for the American automaker. It helped show that EVs could be carbon conscious and cool, helping pave the way for Tesla to develop and sell more practical and efficient vehicles.

Although it was a niche vehicle from a relatively unknown automaker at the time, The Roadster emerged as the first highway legal serial production BEV to use lithium-ion batteries. It was also the first fully-electric production vehicle to travel over 200 miles on a single charge.

Tesla ended up selling close to 2,500 first-generation Roadsters over the course of the four years it was in production. Small potatoes by today’s Tesla standards, but this Roadster remains the EV that put Tesla on the map and kicked in the door of an industry still very much focused on internal combustion engines. It remains a collector’s item for many as the original Tesla.

Used Roadsters remain coveted EVs and are still available on the used car market.

Model S, energy storage, and Model X

Tesla started to gain steam in 2010 when it purchased what would become its Fremont Factory to begin production on two new EVs. Later that year, Tesla launched an IPO on the NASDAQ as the first American automaker to do so in over 50 years.

After discontinuing The Roadster in early 2012, Tesla began production on its Model S sedan the following summer.

2015 proved to be another tremendous year for the automaker, as Tesla ventured into energy storage solutions with the introduction of its Powerwall for the home and Powerpack battery packs. Shortly thereafter, Tesla introduced its third EV: an SUV called the Model X.

Solar and Model 3

In 2016, Tesla acquired SolarCity, thus entering the solar energy game as well. It was at this point that the company dropped the “Motors” from its name, which includes solar and energy solutions in addition to electric vehicles.

Profits from previous EV models and new energy ventures allowed Tesla to scale and produce its Model 3 sedan, a mass-market EV that remains the most affordable option in the company fleet. Production issues plagued the entire production process on the Model 3, but Tesla was eventually able to deliver at a reasonable price, making it one of the best-selling EVs of all time in its short tenure.

Model Y and beyond

It would be three whole years before Tesla would deliver a new EV after the Model 3, but in March of 2020, The Model Y crossover emerged. Tesla continues to sell many of the two newly introduced EVs compared to the original S and X models, although both have seen a significant refresh this year.

For now, Tesla continues to expand its global production presence with two new Gigafactories on the way, along with three additional vehicles. This includes Cybertruck, the Tesla Semi, and a 2nd generation Roadster.

We will get deeper into those models a little later. For now, we will focus on Tesla’s current EV offerings.

Current Tesla EVs

As the company currently stands, Tesla has four electric vehicles in its fleet, varying in a number of ways — particularly in availability. In terms of sedans, Tesla has its veteran Model S and more consumer-friendly Model 3. The Model X sits as Tesla’s largest EV on the current market, while the Model Y is the company’s most recent offering as more of a smaller, crossover SUV.

Below is a breakdown of each vehicle in greater detail.

Model S

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The Model S sedan is Tesla’s longest-running EV in production to date. It made its official debut in 2012 after years as a prototype for the automaker. Since then, the sporty EV has reigned as the best-selling plug-in electric in both 2015 and 2016.

Sales of the veteran Tesla have slowed since the launch of the automaker’s more cost-friendly Model 3 and Model Y EVs, but the Model S still sits as a premier sedan that offers a variety of luxury and performance for those who can afford it. You can check out 2021 Model S pricing here.

The current Long Range trim can travel 405 miles on a single charge, hit a top speed of 155 mph, and tear from 0-60 mph in 3.1 seconds. Tesla recently revealed in its Model S refresh that the vehicle will now come in either a Plaid or Plaid+ trim with varied range.

Model S Plaid/Plaid+

Tesla originally claimed the Plaid+ will be able to travel an EPA estimated 520+ miles on a single charge compared to 390 miles on the regular old Plaid. Either tri-motor option can also reach a top speed of 200 mph, blowing a hole through the top speed previously held by its “ludicrous mode.” At 0-60 mph in under 2 seconds, this upcoming Tesla EV has already claimed the throne of quickest of any production car ever.

Originally the Plaid was scheduled to begin deliveries this spring with the Plaid+ to follow in late 2021. Those plans have since changed, however. In June, Elon Musk revealed that Tesla would be scrapping the Plaid+ Model S altogether, because no one needs more than 400 miles of range and the new Plaid, “is just so good.”

The Model S is Plaid is now available and has been delivering to customers. However, those who order now likely won’t see their delivery until 2022.

For those who were holding rezzies for the Plaid+, you may want to put that money toward a 2nd generation Roadster.

Here’s a quick catchup:

Tesla’s Model X

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Tesla’s Model X, its largest EV currently available, holds seniority as the automaker’s second-longest-running model on its assembly lines behind the Model S. While the Model X was originally unveiled in 2012, its first deliveries were not until the fall of 2015 due to production delays, particularly on its distinct Falcon Wing doors.

Shortly thereafter, the Model X quickly ranked as one of the top-selling plug-in EVs worldwide, although sales have since staggered a bit following the release of the less expensive Model 3 and Model Y. The Model X hadn’t seen any substantial overhauls since its initial rollout. That was until early this year when Tesla finally confirmed a refresh was, in fact, coming.

With the new refresh, the Model X will be soon available in either dual-motor AWD or a tri-motor Plaid option. The dual-motor Model X Long Range can travel 360 miles on a single charge (a slight downgrade of 11 miles from the previous Long Range Plus). That being said, it can still hit a top speed of 155 mph, and its 0-60 mph acceleration of 3.8 seconds is an improvement of .6 seconds compared to its previous version.

Model X Plaid

Additionally, Tesla has dropped the Performance trim Model X in favor of a tri-motor Plaid option. This version can travel an EPA estimated 340 miles, reach a top speed of 163 mph, and go 0-60 mph in 2.5 seconds.

Truthfully, this feels more like a rebranding than anything, as the Plaid powertrain offers nearly the same specs as the previous Performance trim. Plaid loses one mile of estimated range in exchange for .1 seconds saved on its 0-60. The top speed of 163 mph remains the same.

Those interested in the refreshed Model X will have to continue to wait, however, as the delivery times have been continually pushed throughout 2021. In fact, these models were originally scheduled to arrive in April of 2021, but both trims were pushed to deliver in January or February of 2022.

While some new versions of the Model X were recently spotted, delivery times are listed as May or June of 2022. Might want to check out versions of the Model X that are currently available for delivery.

Model 3

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From the early years after Tesla’s inception, CEO Elon Musk was candid about the automaker’s goal of providing quality EVs most consumers could afford to drive. With 2016’s announcement of its Model 3 sedan, Tesla came one step closer to its goal of an EV at $35,000.

After an encouraging number of early reservations were made for Tesla’s most affordable model to date, the Model 3 debuted in 2017. Since then, it has cruised comfortably in the fast lane of sales. The EV currently sits as the world’s best-selling all-electric vehicle and has accounted for a majority of the total Teslas sold in recent years.

Tesla (briefly) sold a $35,000 version of the Model 3 to hit a price point originally promised by Elon Musk in years leading up to the first delivery. Last November, however, Tesla quietly removed this option during a refresh for its 2021 model. For perspective, the current version sits at a purchase price of $41,990 for the Standard Range Plus trim with zero added features.

Tesla’s Model 3 currently sells three separate drivetrains to choose from, each offering various ranges and speeds based on a customer’s preferences (and budget). The most affordable trim, the Standard Range Plus, travels an EPA estimated 263 miles, has a top speed of 140 mph, and can travel 0-60 mph in 5.3 seconds.

Moving up the ladder to the Long Range trim, this version can travel 353 miles per charge and has a top speed of 145 mph. Furthermore, its 0-60 time is 4.2 seconds flat. The Performance Model 3, on the other hand, sheds 38 miles of range compared to the Long Range (315 miles) in favor of speed. This trim tops out at 162 mph and can dart 0-60 mph in just 3.1 seconds.

Tesla’s Model Y

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Tesla unveiled its Model Y in 2019 as a smaller, crossover version of its larger and more established Model X mid-size SUV. After beginning deliveries to customers in March of 2020, the Model Y remains the newborn in the Tesla family but has still managed to make a significant splash in sales during its short tenure on the EV market.

Last fall, Tesla CEO Elon Musk nixed a Standard Range Model Y option but still promised a rear-wheel-drive (RWD) Long Range Model Y to follow. It then appeared that Tesla had gone back to Standard Range RWD Model Y, as it recently made this option available on its website. Almost as quickly as it was implemented, the Standard Range Model Y suddenly disappeared from Tesla’s website configurator.

Electrek later reported that the RWD Model Y will instead remain available as an “off menu” item because Musk was not satisfied with its 244-mile range. That being said, it did recently receive its official EPA rating as one of the most efficient EVs in the world.

Tesla’s newest EV now comes in two different dual-motor AWD trims: Long Range and Performance. The current Long Range trim boasts an EPA estimated range of 326 miles, can reach a top speed of 135 mph, and can accelerate from 0-60 mph in 4.8 seconds. Its Performance trim can travel 303 miles on a single charge, tops out at 155 mph, and can do 0-60 in 3.5 seconds. The EV also houses 68 cubic feet of cargo space.

Upcoming Tesla EVs

The following EVs have been long promised by Tesla (some more than others) but are all seemingly on the cusp of full production… at least we all hope.

Cybertruck

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The upcoming Cybertruck is Tesla’s modern (albeit futuristic) take on the pickup truck, one of the last vehicles on the road to see successful electrification. Cybertruck is also only the second major Tesla vehicle outside the mainline S, 3, X, Y lineup, second only to the aforementioned 1st generation Roadster.

Cybertruck was unveiled in November of 2019 via a glass-shattering Tesla reveal, showcasing unique design and performance. The exterior is comprised of an exoskeleton of 30x cold-rolled stainless-steel structural skin and Tesla armored glass for its windows.

Updates on the Cybertruck were somewhat slow-moving after the unveiling — a solar roof option will offer an additional 15 miles of range each day, and a matte black exterior has also been confirmed. Regardless, the hype is real; Tesla tallied over 250,000 pre-orders in the first week. By February 2020, they were at half a million.

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Powertrain variations

Cybertruck is currently slotted to arrive in three different powertrain options. A single motor RWD version will debut last in late 2022 and will offer an EPA estimated range of 250+ miles, travel 0-60 mph in under 6.5 seconds, and carry a towing capacity of 7,500+ lbs.

The dual-motor powertrain comes with AWD and a range of 300+ miles on top of 10,000+ lbs. towing capacity. This trim can travel 0-60 mph in under 4.5 seconds too.

Last and far from least is the top tier, tri-motor Cybertruck, boasting an EPA range of over 500 miles, 14,000+ towing capacity, and a 0-60 mph time under 2.9 seconds. Did we mention it has three motors?

The dual and tri-motor Cybertrucks were originally listed as delivering in late 2021 on Tesla’s website. However, Elon Musk recently shared what many had previously expected – the Cybertruck has now been delayed to 2022.

Although it has been delayed, Elon Musk as exclaimed that Cybertruck will be “a glitch in the matrix.”

Most recently, Tesla has removed the Cybertruck specs and pricing from its website entirely. Not good. That being said, a more recent product design has been spotted.

Check out our Cybertruck guide for all the latest details in one place.

Tesla Semi

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The Tesla Semi promises to be the first commercial offering from the automaker and a workhorse at that. First unveiled in November of 2017, the Semi features a unique, centrally positioned driver’s seat led by four rear powertrains.

Tesla’s website lists the Semi with either a 300- or 500-mile range, depending on the battery pack, but Musk has previously stated the truck will eventually have up to 621 miles of range. The trucks are also listed at a starting price of $150,000-$180,000 depending on battery size and promise owners gas savings over $200,000.

After its unveiling, the Semi was scheduled to arrive on roads in 2019 before being pushed to low-volume production in 2020. During a 2020 Q1 results call, Tesla again shifted its delivery window to 2021. Despite multiple delays, Tesla has seen interest from major companies like Budweiser, Walmart, and UPS. Furthermore, the company plans to deliver 15 Semis to PepsiCo later this year.

The Semi trucks are currently being produced at Tesla’s Nevada Gigafactory, which recently added a new production line with a goal of producing five trucks a week. Next, Tesla will move its Semi production to Austin when its Gigfactory Texas is complete later this year. For now, however, the focus will be on service technicians and infrastructure between Tesla’s Fremont Factory and Gigafactory Nevada.

Tesla Semi remains in the prototype stage, although those recently spotted appear to be updated versions of the original 2017 prototypes. At this point, Tesla is moving ever closer to finally reaching full-fledged production on its Semi trucks in 2021… but they’ve been wrong before.

Second-generation Roadster

To pay homage to its original trailblazing EV, Tesla is releasing a second-generation Roadster with groundbreaking specs, which may include the unconfirmed potential to hover.

According to Tesla’s CEO, the Roadster redux will reach a 620-mile range and zoom from 0-60 mph in 1.9 seconds. Musk even teased that these are the “base specs,” hinting at even better performance. Tesla’s website is currently taking reservations for the new Roadster, as well as a variation called the Founders Series Roadster.

It remains unclear what the extra $50,000 for the Founders Series will get consumers, but Tesla is only taking reservations for 1,000 total. That would make it a collector’s item and could explain the price bump. The Founders Series Tesla Roadster costs $250,000, compared to a much more affordable $200,000 for the regular Gen. 2 Roadster.

When the revamped Roadster was first unveiled in 2017, Musk said it would deliver in 2020… then 2021. Then he admitted another Roadster delay to 2022, so Tesla could focus on the Cybertruck.

Most recently, Tesla admitted it is now targeting 2023 for the debut of the Gen. 2 Roadster, but that will only happen if the automaker doesn’t suffer long term effects of the global supply chain shortage, so that’s a big “if.”

Whenever it does deliver, IF it does deliver… it is sure to turn heads.

Tesla manufacturing facilities

While Tesla was founded and is headquartered in the US, it has since expanded its sales and production around the world. Currently, Tesla has three operational facilities in addition to its original Fremont Factory in California, with two more on the way.

Additionally, rumors are perpetually circulating about where Tesla might break ground next, including an additional factory in China or expansion to other parts of Asia like Japan, Korea, or possibly India. You can also check out our specific map of Tesla’s Gigafactories, both current and rumored.

  • Fremont Factory – California
  • Gigafactory 1 – Giga Nevada
  • Gigafactory 2 – Giga New York
  • Gigafactory 3 – Giga Shanghai
  • Gigafactory 4 – Giga Berlin (under construction)
  • Gigafactory 5 – Giga Texas (under construction)

Here’s the latest news on Tesla’s Gigafatories, in case you’ve missed it:

Other Tesla ventures

While Tesla began as an automotive company taking a software development approach to designing electric vehicles, it has since transcended that narrow scope into new technologies. As you’ll see below, Tesla’s focus on solar panels, energy storage, and its own network of charging stations has made it just as much of an energy company, if not more.

With advancements in autonomous driving technologies, Tesla is (maybe?) on the cusp of delivering Full Self-Driving (FSD) to customers. To that note, Musk recently said on a quarterly sales call that Tesla is becoming more of an AI and robotics company too.

Full Self-Driving (FSD) capabilities

FSD has been a carrot constantly dangled in front of Tesla fans since 2014, when the company first mentioned its Autopilot feature and potential capabilities. By the end of 2016, Tesla was confident it would be able to demonstrate full autonomy a year later. Unfortunately, that was not the case.

In fact, we still have seen hard evidence of full self-driving capabilities, although Tesla did roll out a beta version of the software to a select group in October of 2020.

This whole promise of FSD, along with multiple punts on deadlines, has led to controversy and debate amongst the EV community about whether Tesla’s approach to autonomous driving is even possible

Still, Tesla continues to roll out public beta versions of its Full Self-Driving tech, currently in version 10.7. Most recently the pricing was announced as an increase of $2k, now totaling $12,000 for the added capability.

Here’s some literature to get you up to speed:

Solar

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As previously mentioned, Tesla acquired SolarCity in 2016 and has been focused on becoming a one-stop-shop for all energy solutions since then. That being said, its solar rollout has been a bit haphazard.

When Tesla first unveiled its Solar Roof tiles, the product wasn’t actually complete yet, although the company had several design plans in its pipeline. Since then, Tesla has had issues bringing the solar panels to volume production and deployment, as it tried to test the longevity and make the installation quicker.

Last year, Tesla finally began to accelerate solar deployment, but the public has only seen one version of the tiles being installed on customer roofs so far, even though it was originally listed in four different styles. Many paying customers are still awaiting installation of their solar roofs, too.

Furthermore, the company has caught the ire of some customers as a result of price hikes and changes to policy, which now involves its Powerwall, too.

In 2021, the company has discontinued its solar subscription service that was originally announced over two years ago. This was previously the cheapest solar option for Tesla’s customers.

Most recently, Tesla is asking employees to fight back against a new tax proposal in California, one of its largest customer bases.

Here’s the latest:

Powerwall and Powerpack

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The Powerwall and Powerpack are rechargeable lithium-ion battery stationary energy storage products manufactured by Tesla Energy. The Powerwall is designed for home energy storage by storing electricity for solar self-consumption, time of use load shifting, and as a source of backup power. The larger Powerpack is specifically intended for commercial or electric utility grid use.

The company recently revealed a Powerwall 2 Plus went into production last November, leading to increases in capacity. So far, we have seen the first glimpses of the new Powerwall too. Here’s what we know so far.

Supercharger network

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The Tesla Supercharger exists as a combined network of proprietary charging stations developed and implemented by Tesla. As a result, the automaker doesn’t have to rely on third-party charging networks like most automakers producing electric vehicles currently do.

The Supercharger network was introduced in September 2012, beginning with six Supercharger stations. This debut coincided with the launch of Tesla’s Model S sedan, the first to utilize the new network.

Since then, the Supercharger network has grown to over 20,000 stalls worldwide within over 2,100 stations or hubs. This includes North America, Europe, Asia, and even the Arctic Circle. Tesla recently passed 1,000 Supercharger stations in North America alone.

The average station usually features about 10 Supercharger stalls, but some stations offer many more. For example, Tesla opened a 72-stall Supercharger station in Shanghai at the end of 2020, making it the world’s largest. Currently, Tesla is working through permitting for a 62-stall station on the west side of Los Angeles that could easily make it the largest in North America.

Most recently, Elon Musk revealed that the American automaker plans to upgrade its Supercharger network to support 300 kW faster charging.

For more information, visit our comprehensive Tesla Supercharger guide.

Tesla Bot

During the company’s AI Day in August of 2021, it released many details about its progress to develop AI technology to power its self-driving system. As expected, however there was a “one more thing” moment, and it was robots.

CEO Elon Musk shared plans to build a humanoid robot called Tesla Bot. Musk stated that Tesla already describes itself as the largest robotic company in the world, considering the capabilities of its vehicles to see and understand the world around them, and act on that data.

While Musk didn’t go into many details about the overall capabilities of the Bot, or what exact tasks it will be able to do, he did hint that the ultimate goal is for the robot to eventually replace most “dangerous, repetitive, and boring tasks.”

Here’s the latest news surrounding the Humanoid Bot:

Tesla FAQ

How much does a Tesla cost?

As you can see above, there are several different models and variations to each available to customers. Depending on the vehicle, the powertrain, down to the exterior color, all play a part in potential cost of a new Tesla. Everything you need to know is been compiled here for you:
How much is a Tesla? Your guide to Tesla prices

How long does it take to charge a Tesla?

Again, not a simple answer due to a number of factors. Where you are charging, what level of charger you are using, and what sort of output is available from that port are all common variables.

To better understand these charging levels and the differences between home and public chargers, you can check out the following guide:
How long does it take to charge a Tesla?

How much does it cost to charge a Tesla?

Another great question, but unfortunately another not so clear cut answer. Battery size, charging level, time of day, and charging efficiency can all affect how much or how little it will cost you to fully charge your EV. Luckily, we’ve broken it down further for you by each current model:
How much does it cost to charge a Tesla?

Can I lease a Tesla?

Sure can. However, we recommend doing your research to determine that a lease is the best option for you as opposed to buying

Check out our Tesla leasing guide here.

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Tesla Motors, Inc. – First Quarter 2014 Shareholder Letter

Full letter here (PDF)

Tesla Motors, Inc. – First Quarter 2014 Shareholder Letter

  • Record Q1 Model S production of 7,535 vehicles
  • Delivered 6,457 Model S vehicles, slightly exceeding guidance
  • Net income of $17M and $0.12 EPS (non-GAAP), loss of $50M and $(0.40) EPS (GAAP)
  • Expansion in Asia starts with first deliveries into China
  • $2.3B raised in convertible notes offerings
  • Significant Gigafactory and capacity expansion progress
  • On track for more than 35,000 deliveries in 2014

This year we are engaged in the most rapid expansion in Tesla’s history. In Q1, we produced a record 7,535 Model S vehicles for global delivery. We also slightly exceeded guidance by delivering 6,457 cars while also filling the pipeline of deliveries into Europe and Asia to support growing global demand.

We are pressing forward on a variety of initiatives to continue our growth in 2014 and beyond. We are expanding our factory capacity to support increased Model S production later this year and the introduction of Model X next year. Extensive development work on Model X is underway and we expect to have production design prototypes ready in Q4. Meanwhile, we are opening new stores, service centers and Superchargers at a faster rate, and later this year we will kick off construction of the Gigafactory. 2014 is already a very busy year.

Growing Global Demand & Scaling Customer Support

In Q1, we saw a significant sequential increase in worldwide net orders for Model S. This upward trend was driven by our greater global footprint and increasing consumer awareness of Model S. Overall, our customers have now driven Model S more than 275 million miles, saving nearly 14 million gallons of gasoline.

Our entry into China has been greeted enthusiastically.
After working for more than a year to secure proper
government approvals, licenses and facilities, we
delivered the first cars in China at customer events in
Beijing and Shanghai last month. Each event enjoyed
ample media coverage, complete with delighted Model S
owners receiving their cars. Tesla received further media
attention thanks to the Shanghai government’s announcement that Model S drivers in the city will be entitled to free license plates, thereby avoiding the usual public auction price of $10,000 to $15,000 per plate. Since Model S pricing in China was already very competitive, this makes the car’s value proposition even more compelling.

We plan to expand in China as fast as possible because we believe the country could be one of our largest markets within a few years. We are also encouraged by how fast we have been able to develop our infrastructure in China when the proper support is in place. With the help of the Shanghai government, for example, we were able to construct a Supercharger station within just a few weeks of site selection. At the start of China deliveries we had three Supercharging sites open, each powered by clean electricity from solar panels. Our plans are to install a large Supercharger network in China.

China Deliveries Event & Supercharger

To support our global growth, we are aggressively accelerating the rate at which we open stores and service centers. This year we plan to increase the number of locations from 2013 by more than 75%. Our Supercharging network will grow at an even faster pace. We recently energized our 100th Supercharger, located in New Jersey, and plan to install 200 more Superchargers globally this year. Our customers have now driven nearly 15 million Supercharged miles for free.

North American net orders grew sequentially by more than 10% in the quarter. As always, we are pursuing our expansion through a direct-sales model to accelerate the transition to sustainable transportation. Selling directly allows us to most effectively communicate the unique benefits of electric cars to potential customers, as well as improve the buying and servicing experience.

While consumers and the vast majority of jurisdictions have overwhelmingly welcomed our direct-sales model, there are still a few states in the U. S. where we face resistance. In those states, we continue to fight to protect our customers’ ability to buy directly from Tesla. We believe strongly in the fairness of our position, which has been supported by a long list of consumer activists, economists and influential policy makers. In late April, three directors of the Federal Trade Commission published a blog post that explained the many reasons why Tesla’s ability to sell directly is superior for consumers and why efforts to undercut that ability represent “bad policy.”

In-Vehicle Paperless Lease Acceptance

Our goal is to streamline the process of acquiring a Tesla and continually reduce the total monthly cost of ownership. Hence we are working to offer financial products delivered in innovative ways. For example, last month we launched Tesla Finance to directly offer leasing for small and medium-sized businesses. This program is straightforward and transparent, and it allows businesses to take advantage of tax deductions for their lease payments. The whole program is designed to be user friendly, with a simplified lease contract and an electronic acceptance process that can even be completed on the Model S 17-inch touchscreen. Leasing through Tesla is now available in 21 of our highest volume states and the District of Columbia. We plan to expand this offering further to more states in the U. S. as well as Canada shortly.

Expanding Vehicle Offerings and Production to Meet Demand

As we grow globally, we are also expanding our vehicle portfolio. Our addressable market will increase with the launch of the right hand drive Model S in the United Kingdom next month, and in Japan and Hong Kong later this summer. Model X efforts are on track to ramp up production in the spring of 2015. We have just completed the final studio release of the vehicle. The tooling process has started with several suppliers and we expect production design prototypes to be ready in Q4 of this year.

We also continue to improve Model S. During Q1, we voluntarily added a titanium underbody shield and aluminum deflector plates to the bottom of all new Model S cars and also made this available as a free retrofit for existing vehicles. While this change was not necessary from a safety perspective, our goal is to give our customers complete peace of mind.

To meet the growing demand for Model S, we have been expanding our internal production capability and have secured production increases from our suppliers, including increased cell supplies from Panasonic. Production is now at almost 700 vehicles per week, up 15% from our weekly production rate at the end of Q4. By the end of 2014, we expect the production rate to rise to 1,000 vehicles per week.

The Gigafactory project is on course to begin battery cell and pack production in 2017. We have not yet finalized the ultimate location for the Gigafactory and we are going to start work on at least two locations in parallel in order to minimize

risk of delays arising after groundbreaking. Planning discussions with Panasonic and other potential production and supply chain partners continue to go well and we are pleased with the high interest level in the project. By the time the Gigafactory reaches full, annualized production in 2020, we expect battery pack production capacity to reach 50 GWh and cell production capacity to be 35 GWh. At that level of production, we do not anticipate any commodity supply constraints.

Q1 Results

As usual, this letter includes both GAAP and non-GAAP financial information because we plan and manage our business using this non-GAAP information. Non-GAAP financials exclude stock-based compensation and non- cash interest expense, and add back the deferred revenue and related costs for cars sold with a resale value guarantee (RVG). The option to obtain financing via our bank partners and get an RVG from Tesla remains popular with our U.S. customers. We delivered 1,181 cars with an RVG in Q1.

Non-GAAP revenue was $713 million for the quarter up
27% from a year ago, while GAAP revenue was $621
million. The average selling price of Model S remained
strong. Automotive revenue included $15 million of Toyota powertrain sales and almost $12 million of regulatory credit sales, but no zero emission vehicle (ZEV) credit sales as expected.

During Q1, we achieved a non-GAAP automotive gross margin of 25.4%, and 25.3% on a GAAP basis. This represents a 20 basis point improvement in non-GAAP automotive gross margin sequentially, despite booking an unplanned $2 million reserve for underbody shield retrofits.

Research and development (R&D) expenses were $68 million on a non-GAAP basis and $82 million on a GAAP basis. Non-GAAP R&D expense was up 17% from Q4, as Model X engineering work accelerated and efforts continued to adapt Model S for growing international markets.

Selling, general and administrative (SG&A) expenses were $97 million on a non-GAAP basis and $118 million on a GAAP basis. The 11% sequential increase in non-GAAP SG&A expense was driven mainly by the expansion of our customer support infrastructure.

Q1 non-GAAP net income was $17 million, or $0.12 per share based on 140.2 million diluted shares, while Q1 GAAP net loss was $50 million or $(0.40) per share. Both results include a $6.7 million net gain from a favorable foreign currency impact.

We generated $61 million of cash flow from operations during the quarter. This was after consuming $63 million from increased inventory of in-transit finished vehicles built to specific customer orders. Capital expenditures in the quarter totaled $141 million.

Cash at quarter end, including cash equivalents and short-term marketable securities, increased to almost $2.6 billion, in part because we issued $2 billion of senior convertible notes with five and seven year maturities. Q2 financials will reflect an additional cash inflow of $267 million from the exercise of the convertible notes overallotment option by our underwriters. We used a small portion of the gross proceeds to invest in bond hedge transactions, offset by proceeds from a sale of related warrants. As a result, we should avoid any actual dilution from the convertible notes until our common stock climbs over $500 per share. A table published on our website shows the potential dilution from our note offerings at various projected stock prices.

Munich Service Center

Q2 & 2014 Outlook

We expect to deliver about 7,500 Model S vehicles in Q2 as we move toward our goal of more than 35,000 Model S deliveries for the year. We also plan to produce 8,500 to 9,000 cars in the quarter, representing a 13% to 19% increase over Q1. Planned production is again higher than deliveries because of the growing pipeline of in- transit cars to Asia and Europe that have been built-to- order for customers. This includes cars destined for right hand drive markets. The quarterly gap between production and deliveries is expected to decline in future quarters. Battery cell supply will still constrain our production in Q2 but should improve in Q3.

We have started Tesla leasing, but due to the lead times
between vehicle orders and deliveries we expect to only lease about 200 cars in Q2. Many new orders for leased vehicles received in Q2 will be delivered in Q3, so the number of leased vehicles should grow over time.

For leased vehicles, we will recognize lease revenue over the term of the lease in both our GAAP and non-GAAP financials. In contrast, automotive OEMs recognize full revenue for the price of the vehicle, even if that vehicle is eventually leased, because the vehicle is first sold to an independent dealer. Therefore, to facilitate comparisons with other automakers, we plan to include a supplemental table in future shareholder letters that summarizes the quarterly aggregate price of vehicles leased to customers.

We have just commenced production of Tesla powertrains for the Mercedes B-Class vehicle, a significant milestone in the development of the program. We expect to ramp up production shortly and see continued growth during the year.

We expect non-GAAP automotive gross margin to increase slightly from Q1 to Q2. As manufacturing efficiency and part costs continue to improve, we believe a 28% non-GAAP automotive gross margin by Q4 of this year is still an achievable target.

Q2 operating expenses are expected to grow sequentially by about 30% for R&D and 15% for SG&A. Despite the start of leasing vehicles, investments in R&D and geographic expansion, we expect to be marginally profitable in Q2 on a non- GAAP basis. Based on our current stock price, the diluted shares outstanding are projected to be about 142 to 144 million in Q2.

We still plan to invest $650-850 million for the year in capital expenditures for increased production capacity, growth in our store, service center and Supercharger footprints, Model X and S development and start of Gigafactory construction. With all these initiatives, we expect to be slightly free cash flow negative in 2014, before considering the equity required for leasing.

This should be another year of focused execution of our aggressive expansion plans.

Elon Musk, Chairman & CEO Deepak Ahuja, Chief Financial Officer

Tesla Store – Oslo, Norway

Webcast Information

Tesla will provide a live webcast of its first quarter 2014 financial results conference call beginning at 2:30 p.m. PT on May 7, 2014, at ir.teslamotors.com. This webcast will also be available for replay for approximately one year thereafter.

Non-GAAP Financial Information

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis, financial measures exclude non-cash items such as stock-based compensation, the change in fair value related to Tesla’s warrant liability, non-cash interest expense related to Tesla’s convertible senior notes as well as one-time expenses associated with the early repayment of the Department of Energy Loan. Non-GAAP financial measures also exclude the impact of lease accounting on Model S related revenues and cost of revenues, as this perspective is useful in understanding the underlying cash flow activity and timing of vehicle deliveries. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided below.

Forward-Looking Statements

Certain statements in this shareholder letter, including statements in the “Q2 & 2014 Outlook” section; statements regarding profitability and free cash flow and cost reduction; statements relating to the progress Tesla is making with respect to product development (including Model X development and production ramp plans), growth in China, right hand drive market launch expectations, schedule for the introduction of future options and variants, delivery and volume expectations of Model S; the ability to achieve vehicle demand, volume, production, revenue, leasing, gross margin, spending, profitability and cash flow targets; future store, service center and Tesla Supercharger expected costs, openings and expansion plans; expansion plans for Tesla Finance; commodity supply constraint expectations; and Tesla Gigafactory plans and expectations are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: Tesla’s future success depends on its ability to design and achieve market acceptance of Model S and other new vehicle models, specifically Model X; the risk of delays in the manufacture, production and delivery of Model S vehicles; the ability of suppliers to meet quality and part delivery expectations at increasing volumes; Tesla’s ability to continue to reduce or control manufacutring and other costs; consumers’ willingness to adopt electric vehicles; competition in the automotive market generally and the alternative fuel vehicle market in particular; Tesla’s ability to establish, maintain and strengthen the Tesla brand; Tesla’s ability to manage future growth effectively as we rapidly grow, especially internationally; the unavailability, reduction or elimination of government and economic incentives for electric vehicles; Tesla’s ability to establish, maintain and strengthen its relationships with strategic partners such as Daimler, Toyota and Panasonic; and Tesla’s ability to execute on its retail strategy and for new store, service center and Tesla Supercharger openings. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our annual report on Form 10-K filed with the SEC on February 26, 2014. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Investor Relations Contact:

Jeff Evanson
Investor Relations – Tesla ir@teslamotors.com

Press Contact:

Simon Sproule Communications – Tesla ssproule@teslamotors.com

Tesla Motors, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)

Revenues

Automotive sales (1A) Development services Total revenues

Cost of revenues

Automotive sales (1B) Development services Total cost of revenues (2) Gross profit

Operating expenses

Research and development (2) Selling, general and administrative (2) Total operating expenses
Loss from operations
Interest income
Interest expense
Other income, net (3)
Income (loss) before income taxes Provision for income taxes
Net income (loss)

Net income (loss) per common share, basic (4) Shares used in per share calculation, basic (4) Net income (loss) per common share, diluted (4) Shares used in per share calculation, diluted (4)

Notes:

(1) Due to the application of lease accounting for Model S vehicles wit information for the periods presented:

  1. (A)  Netincreaseindeferredrevenueandotherlong-termliabilities as a result of lease accounting and therefore not recognized in automotive sales
  2. (B)  Netincreaseinoperatingleasevehiclesasaresultoflease accounting and therefore not recognized in automotive cost of salesUnder lease accounting, warranty costs are expensed as incurred
  1. (2)  Includes stock-based compensation expense of the following for thCost of revenues
    Research and development Selling, general and administrative

    Total stock-based compensation expense

  2. (3)  Other income, net, for the three months ended March 31, 2013 inc Department of Energy (DoE) common stock warrant liability and a income, net, for the three months ended March 31, 2014 and Dec favorable foreign currency exchange impact, respectively.
  3. (4)  In May 2013, the Company completed a public offering pursuant t Concurrent with the closing of the offering, the Company sold 596, placement at the public offering price.

$

618,811 1,731 620,542

462,471 2,943 465,414 155,128

81,544 117,551 199,095

(43,967) 141

(11,883) 6,718

(48,991) 809

(49,800) (0.40)

123,473 (0.40)

$

610,851 4,368 615,219

453,578 5,051 458,629 156,590

68,454 101,489 169,943

(13,353) 92

(6,229) 4,584

(14,906) 1,358

(16,264) (0.13)

122,802 (0.13)

$

Mar 31, 2014

Three Months Ended Dec 31,
2013

Mar 31, 2013

555,203 6,589 561,792

461,818 3,654 465,472 96,320

54,859

47,045 101,904

(5,584) 10

(118) 17,091 11,399 151 11,248

0.10 114,712

$ $

$

$ $

$

$ $

$

0.00 124,265

123,473
h the resale value guarantee, the following is supplemental

122,802

  • $  92,506 $ 146,125
  • $  69,743 $ 114,221instead of accrued at the time of sale. e periods presented:

$ 3,106 13,545 20,387

$

3,455 $ 10,578 14,056 28,089 $

1,536 7,644 5,688

14,868

$ 37,038 $

ludes the gain from the elimination of the $10.7 million

$6.4 million favorable foreign currency exchange impact. Other ember 31, 2013 include a $6.7 million and $4.6 million of

o which the Company sold 3,902,862 shares of common stock. 272 shares of common stock to Elon Musk in a private

Tesla Motors, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)

Assets

Prepaid expenses and other current assets Operating lease vehicles, net (1)
Property and equipment, net
Restricted cash – noncurrent

Other assets Total assets

Mar 31, 2014

Dec 31, 2013

845,889 –

3,012 49,109 340,355 27,574 382,425 738,494 6,435 23,637 2,416,930

2,393,908 189,111 1,049 72,380 Inventory 450,730

$

$

Cash and cash equivalents Short-term marketable securities Restricted cash – current Accounts receivable

$

$

48,869 451,729 849,389

7,102 36,143 4,500,410

Accounts payable and accrued liabilities Deferred revenue (2)
Customer deposits
Capital lease obligations

Long-term debt (4)
Other long-term liabilities (3)
Total liabilities
Convertible debt (4)
Stockholders’ equity
Total liabilities and stockholders’ equity

Notes:

$

$

504,452 323,557 198,006

20,969 2,109,843 361,586 3,518,413 69,942 912,055 4,500,410

$

412,221 273,062 163,153

20,577 586,301 294,495

1,749,809 –

667,121 $ 2,416,930

(1) IncludesthefollowingincreaseinoperatingleasevehiclesrelatedtodeliveriesofModelSwiththeresalevalueguaranteeandsubject to lease accounting, net of depreciation recognized in automotive cost of sales, for the following periods:

Beginning Balance First quarter Second quarter Third quarter Fourth quarter

Ending Balance

$

$

376,979 $ 69,743

– – –

446,722 $

– 123,919

138,839 114,221

376,979

(2) IncludesthefollowingincreaseindeferredrevenuerelatedtodeliveriesofModelSwiththeresalevalueguaranteeandsubjecttolease accounting, net of revenue amortized to automotive sales for the following periods:

Beginning Balance First quarter Second quarter Third quarter Fourth quarter

Ending Balance

$

$

227,868 $- 38,188 –

– 74,455 – 84,577 – 68,836

266,056 $ 227,868

(3) Includesthefollowingincreaseinotherlong-termliabilitiesrelatedtodeliveriesofModelSwiththeresalevalueguaranteeandsubject to lease accounting for the following periods:

Beginning Balance First quarter Second quarter Third quarter Fourth quarter

Ending Balance

$

$

236,298 $ 54,318

– – –

290,616 $

– 72,357 86,652 77,289

236,298

(4) Ourcommonstockpriceexceededtheconversionthresholdpriceofourconvertibleseniornotesdue2018(Notes)issuedinMay2013; therefore, the Notes are convertible at the holder’s option during the second quarter of 2014. As such, the carrying value of the Notes was classified as a current liability as of March 31, 2014 and the difference between the principal amount and the carrying value of the Notes was reflected as convertible debt in mezzanine equity on our condensed consolidated balance sheet as of March 31, 2014.

Liabilities and Stockholders’ Equity

Tesla Motors, Inc.
Supplemental Consolidated Financial Information (Unaudited)
(In thousands)

Selected Cash Flow Information

Cash flows provided by operating activities Cash flows used in investing activities Cash flows provided by financing activities

Other Selected Financial Information

Cash flows provided by operating activities
Capital expenditures
Free cash flow (cash flow from operations plus capital expenditures)

Depreciation and amortization

Cash and Investments

Cash and cash equivalents Short-term marketable securities Restricted cash – current Restricted cash – noncurrent

Mar 31, 2014

Three Months Ended Dec 31,
2013

Mar 31, 2013

64,079 (55,236)

3,684

64,079 (57,727)

6,352 17,850

Mar 31, 2013

214,417 –

16,719 5,044

Mar 31, 2013

11,248

14,868 (10,692)

– 15,424 – 15,424

0.10 0.13 (0.09)

– 0.13

114,712

0.09 0.12 (0.09)

– 0.12 – 0.12

124,265

$

$

$ $

$

60,640 (329,180)

1,816,559

60,640 (141,364)

(80,724) 44,268

Mar 31, 2014

2,393,908 189,111

$

$

$ $

$

129,763 (89,507)

10,517

129,763 (89,435)

40,328

37,585

Dec 31, 2013

845,889 –

$

$

$ $

$

1,049 3,012 7,102 6,435

Tesla Motors, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited)
(In thousands, except per share data)

Net income (loss) (GAAP)

Stock-based compensation expense
Change in fair value of warrant liability
Non-cash interest expense related to convertible notes
Net income (loss) (Non-GAAP) including lease accounting Model S gross profit deferred due to lease accounting (1)
Net income (Non-GAAP)

Net income (loss) per share, basic (GAAP)

Stock-based compensation expense
Change in fair value of warrant liability
Non-cash interest expense related to convertible notes Model S gross profit deferred due to lease accounting (1) Net income per share, basic (Non-GAAP)

Shares used in per share calculation, basic (GAAP and Non-GAAP)

Net income (loss) per share, diluted (GAAP) (2)

Stock-based compensation expense
Change in fair value of warrant liability
Non-cash interest expense related to convertible notes
Net income (loss) (Non-GAAP) including lease accounting Model S gross profit deferred due to lease accounting (1)
Net income per share, diluted (Non-GAAP)

Shares used in per share calculation, diluted (Non-GAAP)

(1) Under GAAP, warranty costs are expensed as incurred for Model S vehicle deliveries wi estimated incremental warranty reserve of $2.1 million and $3.2 million is included for the t 2013, respectively. Additionally, stock-based compensation of $0.7 million and $1.1 million i months ended March 31, 2014 and December 31, 2013, respectively.

(2) Net income used in the calculation of GAAP diluted net income per share for the three excludes the $10.7 million gain from the elimination of the DoE common stock warrant liabil

Mar 31, 2014

Three Months Ended Dec 31,
2013

$

$ $

$

$

$

(49,800) 37,038 –

8,393 (4,369) 21,384 17,015

(0.40) 0.30 – 0.07 0.17 0.14

123,473

(0.36) 0.26 – 0.07 (0.03) 0.15 0.12

140,221

$

$ $

$

$

$

(16,264) 28,089 –

4,299 16,124 29,796 45,920

(0.13) 0.23 – 0.03 0.24 0.37

122,802

(0.12) 0.20 – 0.03 0.11 0.22 0.33

137,784

$

$ $

$

$

$

purposes, an s excluded for non-GAAP purposes for the three

months ended March 31, 2013 is $556,000 and ity.

th lease accounting. For Non-GAAP
hree months ended March 31, 2014 and December 31,

Tesla Motors, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited)
(In thousands)

Revenues (GAAP)

Model S revenue deferred due to lease accounting

Revenues (Non-GAAP) Gross profit (GAAP)

Model S gross profit deferred due to lease accounting (1) Stock-based compensation expense

Gross profit (Non-GAAP)

Research and development expenses (GAAP)

Stock-based compensation expense

Research and development expenses (Non-GAAP)

Selling, general and administrative expenses (GAAP)

Stock-based compensation expense

Selling, general and administrative expenses (Non-GAAP)

(1) Under GAAP, warranty costs are expensed as incurred for Model S vehicle deliveries wi estimated incremental warranty reserve of $2.1 million and $3.2 million is included for the t 2013, respectively. Additionally, stock-based compensation of $0.7 million and $1.1 million i ended March 31, 2014 and December 31, 2013, respectively.

Mar 31, 2014

Three Months Ended Dec 31,
2013

Mar 31, 2013

561,792 –

561,792

96,320

– 1,536 97,856

54,859 (7,644) 47,215

47,045 (5,688) 41,357

$ $

$

$

$ $

$ $

620,542 $ 92,506

713,048 $

155,128 $

21,384 3,106

179,618 $

81,544 $ (13,545)

67,999 $

117,551 $ (20,387)

97,164 $

615,219 $ 146,125 761,344 $

156,590 $

29,796 3,455

189,841 $

68,454 $ (10,578)

57,876 $

101,489 $ (14,056)

87,433 $

th lease accounting. For Non-GAAP purposes, an hree months ended March 31, 2014 and December 31,

s excluded for non-GAAP purposes for the three months

Tesla Model S is more like a network than a computer

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Dragtimes has a nice little rundown of the latest in hacking the Tesla Model S. It turns out that there is an exposed 4 pin connector on the left side of the dashboard that is actually a 100mb Ethernet connection. That connection was actually connected to with a laptop and after some port scanning and sniffing…

The car’s internal 100 Mbps, full duplex ethernet network consists of 3 devices with assiged IP addresses in the 192.168.90.0 subnet, the center console, dashboard/nav screen and one more unknown device. Some ports and services that were open on the devices were 22 (SSH), 23 (telnet),53 (open domain), 80 (HTTP), 111 (rpcbind), 2049 (NFS), 6000 (X11). Port 80 was serving up a web page with the image or media of the current song being played. The operating system is modified version of Ubuntu using an ext3 filesystem. Using X11 it also appears that someone was able to somewhat run Firefox on both screens as per the pictures. All of this technology certain brings up the question as to when and if Telsa’s internal systems will be hacked and jailbroken to allow 3rd party applications to run on the large 17″ touchscreen. Hacking your iPhone s one thing, hacking your car is quite another. We should also note that apparently Tesla engineers detected this hacking or exploring and sent a nastygram to the cars owner, “Tesla USA engineers have seen a tentative of hacking on my car.”, “can be related to industrial espionage and advised me to stop investigation, to not void the warranty”. Does Tesla have an network intrusion detection system installed on the cars? Do they have the right to not allow you to tinker with your own car?

All really good questions. Will Tesla eventually allow hacking. IT seems like the type of company that would want to encourage it from its extremely savvy customer base. Its APIs for the app are already being used by various companies for things like Google Glass interfaces and Chrome extensions.

Elon Musk/Family begins Cross Country Electric Road Trip (Updating)

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[tweet https://twitter.com/TalulahRiley/status/450404266914500608]

It appears Tesla CEO Elon Musk and family are on their 3200-mile “elec-trek” cross country with his 5 children. Actress/wife Talulah Riley tweeted the above yesterday signaling that the trip has started and included what looks like the California Desert taken from the passenger compartment of a Model S.

Musk had previously tweeted some specs for the trip but those tweets have been deleted so they may not be up to date info.

I wonder if Musk has the special 400 Mile battery in his car?

Update: It would appear that Musk and family are further along than thought?

Update 2: It looks like Musk&Fam might have taken an even more posh ride to South Dakota. Musk’s Jet flew from LA to South Dakota yesterday:

Screenshot 2014-03-31 14.11.44

 

Update 3: Tesla did confirm to me that Musk is indeed on his roadtrip. A spokesperson told me:

While we can confirm Elon is on his road trip, I cannot give any details about the journey, his timeline, or location. You may feel free to gather information from his personal twitter feed.

Nissan’s Leaf social media team disses Tesla over NJ loss, deletes tweet

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Nissan-Leaf-Tesla-tweet

After Tesla lost in New Jersey, Nissan’s social Media Team Tweeted the “dickish” image above from the Leaf account according to ABGreen. They quickly realized the folly of their ways and deleted it and perhaps someone was straighend out (the door?) over the matter.

I mean we’re all in this together and rising waters raise all ships and all that, right?
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Dashcam footage of Model S collision with BMW M5

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Vernon H:(In a previous iteration of my career, I was a Navy Flight Surgeon
assigned to a Marine Corps F/A-18 squadron where my training and duties
included aircraft mishap investigation. When I examine the aftermath of
my incident, I am convinced that fortuitous timing and the solid
construction of my Tesla Model S saved our lives, the lives of another
couple and prevented four young children from being orphaned. )from Liveleak:

Story follows:
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Tesla will open more than 30 new service centers, expand Supercharger network in Europe

TESLA COMMITS TO FURTHER EXPANSION IN EUROPE

NEW SUPERCHARGER LOCATIONS AND SERVICE CENTERS ENHANCE CUSTOMER EXPERIENCE

MARCH 4, 2014

GENEVA, Switzerland – In order to serve a growing customer base in Europe, Tesla will open more than 30 new service centers and stores across the continent, the company announced today at the Geneva Motor Show. Tesla will also continue rapidly expanding its Supercharger network, allowing Model S drivers to travel long distances across Europe for free.

The retail, service, and Supercharger expansions come as Tesla dials up its commitment to Europe, which continues to be a priority market for the company.

In a recent trip to northern Europe to engage with customers, Tesla co-founder and CEO Elon Musk highlighted the rapid increase in the rollout of the company’s Supercharger network for Europe. “By the end of this year, we expect you will be able to travel almost anywhere in Europe using only Superchargers,” Musk said.

In 2013, Tesla delivered 22,477 vehicles to customers worldwide. By the end of 2014, Tesla expects combined sales in Europe and Asia to be almost twice as high as sales in North America. Part of that projected growth will come from the UK, where right hand drive versions of the Model S will soon be introduced. Highly competitive leasing and financing options, similar to a program the company recently launched in Germany with rental company Sixt, are also expected to drive growth on the continent.

The European launch of Model S has been successful not only in terms of sales, but also for the accolades awarded to the car. In 2013, Model S was named Car of the Year in Sweden and Norway, Most Stylish Car in Switzerland, and it won the Car of the Year Prize of Honor in Denmark.

Forward-Looking Statements

Certain statements in this press release, including statements regarding future store, service center and Supercharger locations and capabilities as well as statements regarding sales expectations in Europe and Asia, are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. Various important factors could cause actual results to differ materially from those in the forward-looking statements, including potential difficulties in finding suitable store, service center and Supercharger sites, negotiating leases or obtaining required permits for such locations and customer acceptance of our brand and vehicles in Europe and Asia, as well as the risks and uncertainties identified under the sections captioned “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results Of Operations” in Tesla’s Form 10-K filed on February 26, 2014. Tesla disclaims any obligation to update information contained in these forward-looking statements.

Tesla test vehicle seen with roof object and wheel sensors believed to be ‘Model X handling test vehicle’

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From the Teslamotorsclub.com and Reddit is the above gallery of a Tesla Model S with some weird stuff on it. The consensus seems to be that this is a testing vehicle for the Model X crossover with the roof mount  simulating a high center of gravity and additional weight and the tire sensors showing the handling. The Model x is built on the same platform as the Model S so that seems feasible.  The picture set  was taken near UC Santa Cruz.

[youtube=http://www.youtube.com/watch?v=N4fGsGVjoVU]

Elon Musk says mass market Tesla car (Model 3) will have a ~48kWh battery, be 80% the size of the Model S

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[youtube=http://www.youtube.com/watch?v=h5N9xIfTU5g]

There is a lot of interesting info from a talk that Elon Musk gave at the CPUC last week. Of particular note, Musk gave some spec estimates for the mass market “Model E” vehicle expected to be released in 2017 with batteries coming from the Gigafactory. In the video above he says the car will have a 200 mile range and be 20% smaller than the Model S. Therefore the battery will need to have about 80% of the energy of the current Model S (Musk’s words). To be clear, since Tesla uses the constant sized 18650 cells (and looks to continue to do so) physical size and Watt-hours are fairly constant.

So given that a 60kWh Model S has a range of around 200 miles (EPA 208), that means that the Model E would need to have a battery around 80% the size of the Model S or 48kWh.

That’s still about double what leading ‘mass market’ electric cars have today. The Chevy Spark EV, with a range of 82 miles has a 21.3 kWh battery. The Nissan LEAF which has a 75 mile EPA range rating has a 24 kWh battery. The Chevy Volt has a 16kWh battery while the BMW i3 is 18.8.

Tesla cancelled its $49,000 40kWh battery Model S before it got an EPA estimate but most guesses were that it would get around 150 miles.  Add another 8kWh to the battery and take off 20% of the overall car size and 200 mile range seems doable.

Musk also mentions that besides the 20% drop in price, he expects economies of scale and other innovations to drop the price another 30% on the battery alone helping to get the Model E to around 50% the cost of the Model S at $35,000.

[tweet https://twitter.com/fatihguvenen/status/440248060958896128]

Below is a snippit of Musk talking about the upcoming battery swap:
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Tesla Gigafactory details announced: To be built in Southwest US, provide 6500 jobs, batteries for 500K cars/year

Tesla just announced details of the Battery Gigafactory to be located in the Southwest US. The location hasn’t yet been selected but will provide 6500 US jobs and, in 2020, enough batteries for 500,000 electric vehicles.

Tesla also announced a $1.6B convertible notes offering to fund the Gigafactory and other ramping.

As we at Tesla reach for our goal of producing a mass market electric car in approximately three years, we have an opportunity to leverage our projected demand for lithium ion batteries to reduce their cost faster than previously thought possible. In cooperation with strategic battery manufacturing partners, we’re planning to build a large scale factory that will allow us to achieve economies of scale and minimize costs through innovative manufacturing, reduction of logistics waste, optimization of co-located processes and reduced overhead.

The Gigafactory is designed to reduce cell costs much faster than the status quo and, by 2020, produce more lithium ion batteries annually than were produced worldwide in 2013. By the end of the first year of volume production of our mass market vehicle, we expect the Gigafactory will have driven down the per kWh cost of our battery pack by more than 30 percent. Here are some details about what the Gigafactory will look like.

Learn more about the Tesla Gigafactory

Press release follows:
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Panasonic and its partners to invest $1B in Tesla’s Battery Gigafactory, how does Tesla fund the rest?

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You’ll recall that I picked Panasonic and Solar City to be among partners in Tesla’s upcoming Gigafactory announcement back in mid-January. I went on Bloomberg earlier this month to re-iterate those claims. Today, Panasonic got a little bit more official.

Reuters picks up a Nikkei report:

Panasonic Corp is inviting a number of Japanese materials suppliers to join it in investing in a U.S. car battery plant that it plans to build with Tesla Motors Inc, with investment expected to reach more than 100 billion yen ($979 million), the Nikkei reported.

The plant, expected to go on-stream in 2017, will bolster Panasonic’s supply of lithium-ion batteries to the U.S. electric-car maker.

Last week, Tesla shed some light on its plans for building a lithium-ion battery plant, or “giga factory,” that will cut battery costs and allow the company to launch a more affordable electric car in 2017. However, it said at the time that further details would be announced this week.

The U.S. plant, which will handle everything from processing raw materials to assembly, will produce small, lightweight batteries for Tesla and may also supply Toyota Motor Corp and other automakers, the Nikkei said.

Battery costs have been a major stumbling block to widespread electric car adoption in the United States, according to analysts. Tesla’s giga factory will lower costs by shifting material, cell, module and pack production to one spot.

In Tesla’s earnings conference call last week, Chief Executive Elon Musk said the electric car maker expects to build the factory with more than one partner, but a “default assumption” was that Panasonic, as a current battery cell partner, “would continue to partner with us in the giga factory.”

“The factory is really there to support the volume of the third generation car,” Musk said on the call. “We want to have the vehicle engineering and tooling come to fruition the same time as the giga factory. It is already part of one strategy, one combined effort.”

The pieces are starting to come together. The biggest question now is how Tesla funds the other $4B in costs. Will it issue more stock? Will it bring in some very rich partners like Apple? On that note we go to last week’s earnings call for more color on that:
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Consumer Reports continues its love affair with Tesla’s Model S giving it the Best of Top 10 list

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Consumer Reports likes the Model S. It named the Model S Tops in Customer Satisfaction, gave it a near perfect score and  a top 5 Brand Perception. Today it named the Best Overall in its top 10 cars list saying:

BEST OVERALL: Tesla Model S ($89,650) This electric luxury vehicle offers blistering acceleration, razor-sharp handling, a compliant ride, and a versatile cabin with room for a small third-row seat. This technological tour de force, while pricey, is brimming with innovation and offers a 225-mile driving range and 5-hour charges with Tesla’s special connector.

In a nod to a decade ago, CR named the top “Green Car” the Toyota Prius saying:

Toyota Prius ($26,750) There’s no shortage of hybrids on the showroom floor; however none can match the combination of affordability, practicality, and fuel efficiency that the Prius delivers—which is why it leads in this category for the 11th year in a row. Its 44 mpg overall is still the best Consumer Reports has measured in any five-passenger, non-plug-in vehicle. And its roomy interior and hatchback versatility make it practical.

The following is Consumer Reports’ full breakdown:
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TSLA hits 250, (cap of $30+B) as speculation of battery Gigafactory powering US grid heats up

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It is a good day to be a $TSLA owner as the stock shot up to near 250 putting the company at a valuation over $30B. The lift comes via Morgan Stanley analyst Adam Jonas who more than doubled his price target speculating that Tesla’s Gigafactory batteries could wind up powering the US Grid or being a fallback.

Tesla Motors – Morgan Stanley analyst Adam Jonas reiterated an Overweight rating on and raised the price target from $153.00 to $320.00 saying the company’s bid to disrupt the auto industry may also affect electric utilities.

The analyst wrote that, “Tesla is an extremely ambitious company for whom flooding the market with fun-to-drive EVs and giving competitors a headache might not be the endgame. Tesla’s limited addressable market, a long-time bear thesis on the stock, appears well up for grabs here.”

What’s interesting to me here is that the other two named Gigafactory partner companies, Solar City and Panasonic,  (among others, possibly including Apple) are both down as of this writing.

Analysts bullish on Tesla’s battery biz

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From Quartz: Tesla’s most disruptive product may not be its cars

Dougherty & Company analyst Andrea James (who has a buy recommendation on shares of Tesla) mentions grid storage, military operations and unmanned aerial vehicles as potential future applications for the batteries. “In our view, Tesla has always essentially been in the cell business,” she said in a note.

Morgan Stanley, which also is bullish on the stock, is even more ebullient. “We are witnessing the most disruptive intersection of manufacturing, innovation and capital experienced by the auto industry in more than a century,” gushed analyst Adam Jonas in a note. “Tesla may be in position to disrupt industries well beyond the realm of traditional auto manufacturing. It’s not just cars.”

It’s too early yet for me to think that Tesla is going to dominate the battery business and its been known for quite some time that lithium batteries are big business. But the higher level thought I have on this is that Tesla isn’t doing anything amazing or quickly. They are making good decisions and moving deliberately while the industries and companies of old are just watching it unfold seemingly unable to do anything about it.

Why isn’t GM or Samsung building a battery plant? Why isn’t Nissan rolling out a Supercharger network? Why is BMW’s i8 a golf cart with a sub 20 mile range when it is electric only?

Tesla Motors publishes its January 2014 Investor Presentation

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No battery ‘gigafactory’ information  yet but here’s the PDF. Notable is the $30,000-$35,000 base model price of the Gen 3 vehicle. Tesla’s traditionally only been able to hit the high side but so long as Federal Tax Credits are still around in 3 years, it should be a great deal especially with Tesla type specs. 
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Tesla gets its name back in China as CEO Elon Musk expects it to become Model S’s biggest market

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China is going to be big for Tesla according to CEO Elon Musk, who comes off a win in a Chinese court against a squatter who was trying to extort the automaker for its name. 

Tesla had resolved a trademark issue that had long prevented the company from using “Te Si La” – the Chinese name best known among Chinese consumers, which Tesla wanted to use in China. “We went to court and we won,” she said. “The court has given use right to use the name, which is why you see the Chinese name in our store now.” The name had been registered by a local businessman who had refused to give up the trademark. The U.S. company had started offering its popular Model S sedans in China, but with no Chinese language name.

We discussed the relatively low price earlier this week. Musk talked to Bloomberg on China:

Tesla’s billionaire co-founder and chief executive officer, will travel to China in late March to inaugurate the company’s entry there, he said in a phone interview.

For Tesla, “it could be as big as the U.S. market, maybe bigger. I don’t want to get overexcited about it,” Musk said yesterday. “Even without building there locally, it’s always going to be the second-biggest market after the U.S.”

After a rocky start ramping up Model S assembly in 2012, Palo Alto, California-based Tesla surprised analysts and investors this month when it said fourth-quarter deliveries were 20 percent above its target. Musk, 42, has pinned his goal of selling hundreds of thousands of electric autos annually to a global strategy in which China, Europe, Japan and other markets bolster its U.S. business.

If all goes well, Model S shipments to China can match U.S. sales by 2015, Musk said. “It’s not my firm prediction — it’s more like a low-fidelity guess.”

Expectations are high and Musk is certainly

Tesla roadtrips across Europe [Video]

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[youtube=http://www.youtube.com/watch?v=7F8cXHseMNc]

The new superchargers went up just a few days ago and there is already a roadtrip team doing some nice video work.

Tesla opens new Supercharger locations connecting the Netherlands, Germany, Switzerland, and Austria. Energized routes enable Model S customers to enjoy free, convenient, 100 percent electric trips on the German Autobahn and to destinations in the Alps.

Stateside, we’re just a few short of a transcontinental supercharger superhighway.