Article: Corporate strategy
Tesla Motors has an 80% degree of vertical integration in 2016 according to Goldman Sachs. The integration includes own sales channels and proprietary charging infrastructure among others, and the high degree is rare in the automotive industry, where companies typically focus on engine manufacturing and vehicle assembly.
Some of Tesla's stated goals are to increase the number and variety of electric vehicles (EVs) available to mainstream consumers by selling its own vehicles in company-owned showrooms and online.
Sales model
Tesla Motors operates more than 200 stores and galleries around the world, 120 of which are outside the USA. It owns the stores and sells directly to customers both in the non-US stores and via the internet.
US dealerships and automotive dealership disputes
Map of direct automaker sales, regarding Tesla conditions
There are stores and galleries—usually located in shopping malls—in 22 US states and Washington DC. Customers cannot buy vehicles from stores, only from the Tesla Motors website. The stores serve as showrooms that allow people to learn about the company and its vehicles. Some galleries are located in states with restrictive dealership protection laws which prevent discussing price, financing, and test drives, as well as other restrictions.
Tesla's strategy of direct customer sales and owning stores and service centers is different from the standard dealership model in the US vehicle marketplace. Tesla Motors is the only automaker that sells cars directly to consumers; all other automakers use independently owned dealerships (partly due to earlier conflict), although some automakers provide online configuration and financing. 48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers, and although Tesla has no independent dealerships, dealership associations in multiple states have filed numerous lawsuits against Tesla Motors, to prevent the company from selling cars. North Carolina and New Hampshire sided with Tesla, while Virginia and Texas sided with dealers.
Countries other than USA do not have such laws protecting car dealership. The Federal Trade Commission recommends allowing direct manufacturer sales, which analysts believe would save consumers 8% per purchase on average. The National Automobile Dealers Association states that franchises (such as offered by its members) offer better value for customers than direct sales.
Restrictive states Texas
Texas law states "Except as provided by this section, a manufacturer or distributor may not directly or indirectly:(1) own an interest in a franchised or nonfranchised dealer or dealership;(2) operate or control a franchised or nonfranchised dealer or dealership; or(3) act in the capacity of a franchised or nonfranchised dealer. (Tex. Occ. Code Ann. § 2301.476) and "A motor vehicle shall not be advertised for sale in any manner that creates the impression that it is being offered for sale by the manufacturer or distributor of the vehicle. An advertisement shall not contain terms such as “factory sale,” “fleet prices,” “wholesale prices,” “factory approved,” “factory sponsored,” “manufacturer sale,” use a manufacturer's name or abbreviation in any manner calculated or likely to create an impression that the vehicle is being offered for sale by the manufacturer or distributor, or use any other similar terms which indicate sales other than retail sales from the dealer" (43 Tex. Admin. Code § 215.261).
These laws make it difficult to buy a car from Tesla Motors in person, at a Tesla Gallery. Thus, all Texas orders are taken via the internet or over the phone. Texas residents can still easily buy a car from Tesla, but the purchase is handled as an out-of-state transaction. This may mean that the loan will not include Texas state sales tax, which instead must be paid when the buyer registers the car with the state. Also, the buyer cannot have the car delivered to their home or office, but must pick it up from a Tesla Service Center in another state. In 2015, Tesla lobbied the Texas Legislature to modify the law to allow Tesla to sell directly to consumers, and specifically allow Tesla employees to discuss "financing, leasing, or purchasing options" at the firm's existing stores in Austin, Dallas, and Houston. Texas considering legislation to allow Tesla to operate in the state but legislation was not passed.
New Jersey
On March 10, 2014, it was announced that New Jersey Motor Vehicle Commission and Governor Chris Christie's administration would be holding a meeting to pass a new proposal into law. This new proposal, PRN 2013-138, was announced one day before it was to be put into law. Tesla Motors responded by saying that the proposal "seeks to impose stringent licensing rules that would, among other things, require all new motor vehicles to be sold through middlemen and block Tesla's direct sales model," and that "[Governor Christie's] Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey." The law was passed, and "Tesla will no longer [be able to] sell electric cars in New Jersey, effective April 1". Diarmuid O'Connell, Tesla Vice President of Business Development, said, "Worse, it has done so without any reasonable notice or even a public hearing." Forbes contributor Mark Rogosky said, "The state's new rules protect its auto dealers from having to compete with Tesla's direct sales model"; he points out that this is a direct contrast from what Christie said earlier, "We are for a free-market society that allows your effort and ingenuity to determine your success, not the cold, hard hand of the government." Kevin Roberts, a spokesman for the Christie administration, responded by saying "it was the [Tesla Motors] company, not the governor's office, that was attempting to bypass normal procedures.". In March 2015, the ban on Tesla Motor's operations in New Jersey was lifted, but with restrictions (maximum of 4 locations, and 1 service center).
Michigan
On October 1, 2014, Michigan House Bill 5606, drafted "to keep automakers from forcing dealers to charge different documentation fees to different customers," was amended with a section stating that a manufacturer shall not "sell any new motor vehicle directly to a retail customer other than through its franchised dealers." The word "its" was removed, which assumed the manufacturer already had dealerships. Both houses passed the revised bill the next day, with only one nay vote from Tom McMillin in either house of the Michigan Legislature. Tesla argued that the original law would have allowed them to sell, because they did not yet have franchised dealers. On October 21, General Motors released a statement saying that governor Rick Snyder should sign the bill into law because "we believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan." The same day, Snyder signed the bill. Tesla responded to the GM statement by saying "GM distorts the purpose of the franchise laws which are in place not to cement a monopoly for franchised dealers, but rather to prevent companies with existing franchises from unfairly competing against them." The law in Michigan even ban manufacturers from operating service centers.
Others
West Virginia does not allow Tesla-owned stores or showrooms.
Indiana allows manufacturer sales for 30 months, ending direct Tesla sales by the end of 2017.
Tesla asked the Utah Supreme Court in 2016 to reverse a state decision banning direct auto sales.
Permissive states
In September 2014, Massachusetts allowed Tesla to sell directly. Georgia laws are favorable to Tesla.
In May 2015, Maryland approved, through House Bill 235, direct Tesla sales to consumers beginning in October 2015, allowing four stores statewide. The legislation was crafted specifically for Tesla.
References |
Source: Tesla Motor
Wednesday 28 October 2015
Tesla Motors Tesla Motors, Inc. is an American automotive and energy storage company, that designs
, manufactures, and sells
electric cars , electric vehicle powertrain components, and battery products .
Tesla Motors is a
public company
that trades on the
NASDAQ
stock exchange under the symbol TSLA.
In the first quarter of 2013, Tesla posted profits for the first time in its history.
Tesla first gained widespread attention following their production of the
Tesla Roadster
, the first fully electric
sports car .
The company's second vehicle is the
Model S
, a fully electric
luxury sedan
, which was followed by the
Model X
, a crossover. Its next vehicle is the
Model 3 .
Global cumulative Model S sales passed 90,000 units by October 2015.
Tesla also markets electric powertrain components, including lithium-ion battery packs to automakers including Daimler and Toyota . CEO Elon Musk
has said that he envisions Tesla Motors as an independent automaker,
aimed at eventually offering electric cars at prices affordable to the average consumer.
Pricing for the Tesla Model 3 is expected to start at
US$35,000 before any government incentives
, and deliveries are expected to begin by 2017.
In 2015, Tesla announced Tesla Energy, a suite of batteries for homes (
Powerwall
), businesses, and utilities (Powerpack).
Contents [ hide ] 1 Overview 2 History 2.1
2010 initial public offering
3 Corporate strategy 3.1
Business model and US automotive dealership disputes
3.1.1 Restrictive states 3.1.2 Permissive states 3.1.3 Certified Pre-Owned program 4 Technology 4.1 Battery technology 4.2 Technology sharing 5 Competition 6 Car models 6.1 Tesla Roadster 6.2 Model S 6.2.1 AutoPilot 6.3 Model X 6.4 Model 3 6.5 Future models 7 Battery products 8 Facilities 8.1 United States 8.1.1 Tesla Factory 8.2 Supercharger network 8.2.1 Battery swapping 8.3 Canada 8.4 Europe 8.5 Asia 8.6 Australia 9 Partners 9.1 Daimler AG 9.1.1 Mercedes-Benz A-Class 9.1.2 Mercedes-Benz B-Class ED 9.1.3 Smart Fortwo 9.2 Toyota 9.2.1 Toyota RAV4 EV 9.2.2 Freightliner Electric Van 9.3 Panasonic 9.4 Airbnb 10 Lawsuits and Controversies 10.1 Fisker Automotive 10.2 Founder dispute 10.3 Top Gear 10.4 Ecotricity 10.5 Cold weather 10.6
Web site and Twitter account compromised
11 Product issues 11.1 Recalls 11.2 Crashes and fires 11.3 Delays 11.4 Hacking 12 Board of directors 13 See also 14 References 15 External links Overview
Tesla Motors is named after
electrical engineer and physicist Nikola Tesla .
The Tesla Roadster uses an
AC motor
descended directly from Tesla's original 1882 design.
The Tesla Roadster, the company's first vehicle, is the first production automobile to use
lithium-ion battery
cells and the first production
EV
with a range greater than 200 miles (320 km) per charge.
Between 2008 and March 2012, Tesla sold more than 2,250 Roadsters in 31 countries. Tesla stopped taking orders for the Roadster in the U.S. market in August 2011.
Tesla unveiled the Tesla Model S
all-electric sedan on March 26, 2009.
In December 2012, Tesla employed almost 3,000 full-time employees. By January 2014, this number had grown to 6,000 employees.
History [ edit ]
Early days: Marc Tarpenning (left) and
Martin Eberhard (right), with a Tesla Roadster
Tesla Motors was incorporated in July 2003 by
Martin Eberhard
and Marc Tarpenning who financed the company until the
Series A round of funding. [ 29 ]
Both men played active roles in the company's early development prior to Elon Musk's involvement.
[ 30 ] [ 31 ]
Musk led the Series A round of investment in February 2004, joining Tesla's Board of Directors as its Chairman. Tesla's primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving as rapidly as possible into more mainstream vehicles, including sedans and affordable compacts.
[ 32 ]
Musk took an active role within the company and oversaw Roadster product design at a detailed level, but was not deeply involved in day-to-day business operations;
[ 33 ]
Eberhard acknowledged that Musk was the person who insisted from the beginning on a
carbon-fiber-reinforced polymer
body and he led design of components ranging from the power electronics module to the headlamps and other styling.
[ 34 ]
In addition to his daily operational roles, Musk was the controlling investor in Tesla from the first financing round, funding the large majority of the Series A capital investment round of
US$7.5 million with personal funds.
The insignia of Tesla Motors as seen on a Tesla Roadster Sport
From the beginning, Musk consistently maintained that Tesla's long-term strategic goal was to create affordable mass market electric vehicles.
[ 35 ] Musk received the Global Green
2006 product design award for his design of the Tesla Roadster, presented by
Mikhail Gorbachev , [ 36 ]
and he received the 2007 Index Design award for his design of the Tesla Roadster.
[ 37 ]
Musk's Series A round included Compass Technology Partners and SDL Ventures, as well as many private investors. Musk later led Tesla Motors'
Series B , US$13 million
, investment round that added Valor Equity Partners to the funding team. Musk co-led the third,
US$40 million
round in May 2006 along with Technology Partners. Tesla's third round included investment from prominent entrepreneurs including
Google co-founders Sergey Brin & Larry Page , former eBay President Jeff Skoll , Hyatt heir Nick Pritzker
and added the VC firms
Draper Fisher Jurvetson
, Capricorn Management and The Bay Area Equity Fund managed by
JPMorgan Chase . [ 38 ]
The fourth round in May 2007 added another
US$45 million
and brought the total investments to over
US$105 million through private financing. In December 2007, Ze'ev Drori
became CEO and President. In January 2008, Tesla fired several key personnel who had been involved from the inception after a performance review by the new CEO.
[ 39 ]
According to Musk, Tesla was forced to reduce the company workforce by about 10% to lower its
burn rate
, which was out of control in 2007.
[ 40 ] In May 2008,
The Truth About Cars
launched a "Tesla Death Watch", as Tesla needed another round of finance to survive. In October 2008, Musk succeeded Drori as CEO. Drori became Vice Chairman, but then left the company in December. In December a fifth round added another
US$40 million avoiding bankruptcy. [ 41 ] [ 42 ]
By January 2009, Tesla had raised
US$187 million
and delivered 147 cars. Musk had contributed
US$70 million
of his own money to the company.
[ 40 ] [ 43 ]
On May 19, 2009, Germany's Daimler AG, maker of Mercedes-Benz, acquired an equity stake of less than 10% of Tesla for a reported
US$50 million . [ 44 ]
In July 2009, Daimler announced that
Abu Dhabi 's Aabar Investments
bought 40% of Daimler's interest in Tesla.
[ 45 ]
The Tesla obelisk is used to identify the Supercharger network sites in California.
In June 2009 Tesla was approved to receive
US$465 million
in interest-bearing loans from the
United States Department of Energy
. The funding, part of the
US$8 billion
Advanced Technology Vehicles Manufacturing Loan Program
, supports engineering and production of the Model S sedan, as well as the development of commercial powertrain technology.
[ 46 ]
The low-interest loans are not related to the "bailout" funds that GM and Chrysler received, nor are they related to the 2009 economic stimulus package. The loan program was created in 2007 during the
George W. Bush administration. [ 47 ]
Tesla repaid the loan in May 2013. Tesla was the first car company to have fully repaid the government, while
Ford , Nissan and Fisker had not. [ 48 ]
The company announced in early August 2009 that it had achieved overall corporate profitability for the month of July 2009.
[ 49 ]
The company said it earned approximately
US$1 million on revenue of US$20 million
. Profitability arose primarily from improved gross margin on the 2010 Roadster, the second iteration of Tesla’s award-winning sports car. Tesla, which like all automakers records revenue when products are delivered, shipped a record 109 vehicles in July and reported a surge in new Roadster purchases. In September 2009, Tesla announced an
US$82.5 million
round to accelerate Tesla's retail expansion.
[ 50 ]
Daimler participated in the round to maintain equity ownership from its initial investment.
Tesla Motors signed a production contract on July 11, 2005, with Group Lotus to produce "gliders" (complete cars minus powertrain).
[ 51 ]
The contract ran through March 2011, but the two automakers extended the deal to keep the electric Roadster in production through December 2011 with a minimum number of 2,400 units,
[ 52 ] when production ended, [ dated info ]
mostly because of tooling changes orchestrated by one of its suppliers.
[ 53 ]
In June 2010, it was reported that Tesla sold a total of
US$12.2 million
zero emission vehicle credits to other automakers, including Honda, up to March 31, 2010.
[ 54 ]
In October 2014, both Daimler and Toyota sold their holdings of Tesla shares.
[ 55 ] [ 56 ] As of 2014 [update]
, Tesla has a
Corporate Average Fuel Economy
(CAFE) of 276 mpg.
[ 57 ]
In October 2015, Tesla Motor announced the company is negotiating with the Chinese government on producing cars domestically. Local production has the potential to reduce the sales prices of Tesla models by a third. However, foreign automakers are generally required to establish a joint venture with a Chinese company to produce cars domestically
[ 58 ] Elon Musk
clarified that production will remain in the U.S. in the foreseeable future, but if there’s sufficient local demand for the
Tesla Model 3
in China, a factory could be built in the country as soon as a year after the launch of the new model. Production in Europe will also depend on the region's demand for the Model 3.
[ 59 ]
2010 initial public offering
[ edit ]
On January 29, 2010, Tesla Motors filed
Form S-1 with the
U.S. Securities and Exchange Commission
, [ 60 ] as a preliminary prospectus
indicating its intention to file an
initial public offering (IPO) underwritten by Goldman Sachs , Morgan Stanley , J. P. Morgan , and Deutsche Bank Securities
. On May 21, 2010, Tesla announced a "strategic partnership" with Toyota, which agreed to purchase
US$50 million
in Tesla common stock issued in a private placement
[ 61 ] [ 62 ]
to close immediately after the IPO.
[ 63 ]
Executives at both companies said that they would cooperate on "the development of electric vehicles, parts, and production system and engineering support."
[ 62 ]
Less than two months later, Toyota and Tesla confirmed that their first platform collaboration would be to build an electric version of the
RAV4 EV . [ 64 ]
On June 29, 2010, Tesla Motors launched its initial public offering on
NASDAQ
. 13,300,000 shares of common stock were issued to the public at a price of US$17.00 per share.
[ 65 ] The IPO raised US$226 million for the company. [ 66 ]
It was the first American car maker to go public since the
Ford Motor Company
had its IPO in 1956,
[ 67 ] [ dated info ]
and by 2014 Tesla had market value half that of Ford.
[ 68 ]
During November 2013, Tesla's stock fell more than 20 percent, following news of a third Model S fire. All Model S fires had developed several minutes after the cars had struck significant road debris at high speeds and all of the vehicles had provided warnings to the occupants of serious battery damage, advising that an immediate stop was required. All three owners ordered new Model S's. In the following months Tesla developed a battery protection system as a no-cost retrofit to all Model S's; no fires have been reported since.
[ 69 ]
Despite the drop, Tesla was still the top performer on the Nasdaq 100 index in 2013.
[ 70 ]
Tesla was seeking to sell 40,000 electric vehicles worldwide in 2014, adding China, Hong Kong, Japan, and Australia to the list of countries where it exports cars,
[ 71 ]
but it later reduced its guidance on sales down to 33,000 units for 2014 in November 2014.
[ 72 ] Corporate strategy [ edit ]
Tesla's strategy has been to emulate typical technological-product life cycles and initially enter the automotive market with an expensive, high-end product targeted at affluent buyers. As the company, its products, and consumer acceptance matured, it is moving into larger, more competitive markets at lower price points.
[ 73 ] [ 74 ]
Tesla has a three step strategy, where the battery and electric drivetrain technology for each new type would be developed and paid for through sales of the former types, starting with
Tesla Roadster
and moving on to the
Tesla Model S
, Model X and Model 3 vehicles.
[ 32 ] [ 75 ]
Step one was making the Tesla Roadster high price, low volume. The Model S is step two with mid price, mid volume. The third generation will be low price, high volume.
[ 35 ] [ 76 ]
Aiming premium products at affluent "thought leaders" is a very well-known business strategy in Silicon Valley and the global technology industry, where prices for the first versions of, for example, cellular phones, laptop computers, and flat-screen televisions start high but drop with subsequent products as the technology matures and production volumes increase.
[ 77 ]
According to a blog post by Musk, "New technology in any field takes a few versions to optimize before reaching the mass market, and in this case it is competing with 150 years and trillions of dollars spent on gasoline cars."
[ 78 ]
While the Roadster's base price was
US$109,000 , [ 79 ]
the Model S's base price was US$57,400,
[ 26 ] [ 80 ]
and the Model 3's projected base price is near
US$35,000 . [ 17 ]
One of Tesla's stated goals is to increase the number and variety of electric vehicles (EV) available to mainstream consumers by:
selling its own vehicles in company-owned showrooms and online;
[ 81 ]
selling powertrain components to other automakers
[ 82 ] [ 83 ]
serving as a catalyst and positive example to other automakers
[ 84 ] [ 85 ]
Tesla focuses on pure electric propulsion technology, even for larger vehicle segments and ranges beyond 200 miles. Musk won the 2010 Automotive Executive of the Year Innovator Award for hastening the development of electric vehicles throughout the global automotive industry.
[ 86 ]
Tesla would like to disrupt the automotive industry in a way that Tesla investor
Peter Thiel (see PayPal Mafia
) calls complex coordination, which means many innovative pieces fit together in just the right way and when assembled has tremendous advantages.
[ 87 ]
Business model and US automotive dealership disputes
[ edit ] Tesla gallery in Austin, Texas . External images
Map of direct automaker sales
, regarding Tesla conditions
Tesla operates stores or galleries
[ 88 ] [ 89 ]
—usually located in shopping malls—in 22
U.S. states
and Washington DC. Customers cannot purchase vehicles from the stores,
[ 90 ] [ 91 ] [ 92 ]
but must order them on the Tesla Motors website instead.
[ 93 ]
The stores act as showrooms that allow people to learn more about Tesla Motors and its vehicles. The galleries are located in states with more restrictive dealership protection laws, which prevent discussing prices, finances, and test drives, as well as other restrictions.
Tesla's strategy of direct customer sales and owning its own stores and service centers is a significant departure from the standard dealership model currently dominating the U.S. vehicle marketplace.
[ 94 ]
Tesla Motors is the only automaker that sells cars directly to consumers, with all other automakers using independently owned dealerships
[ 95 ] [ 96 ]
(partly due to an earlier conflict),
[ 68 ] [ 97 ]
although some automakers provide online configuration and/or financing.
[ 98 ] [ 99 ] [ 100 ]
48 states have laws that limit or ban manufacturers from selling vehicles directly to consumers,
[ 101 ] [ 102 ] [ 103 ]
and even though Tesla Motors has no independent dealerships, dealership associations in multiple states have filed numerous lawsuits against Tesla Motors, trying to block the company from selling cars in some states. North Carolina and New Hampshire sided with Tesla Motors while Virginia and Texas have taken the opposite position.
[ 104 ]
This situation is unique to Tesla Motors' US operations. Other countries do not have such regulatory laws dealing with car dealers and manufacturers. The
Federal Trade Commission
suggests allowing direct manufacturer sales,
[ 105 ] [ 106 ]
which analysts believe would save consumers an average of 8% on their car purchase.
[ 68 ] [ 107 ] The
National Automobile Dealers Association
states that franchises offer better value for customers than direct sales.
In August 2015, Tesla launched a wholesale revamp of its stores worldwide as the company prepares to debut its Model X. The stores will include interactive displays focused on four major themes: safety, autopilot features, the company's charging network and the dual motors that power each axle.
[ 108 ] Restrictive states [ edit ] Texas
Texas currently has stringent dealership protection laws which make purchasing a vehicle from Tesla Motors in person, at a Tesla Gallery, difficult. Thus, all Texas orders are taken via the internet or over the phone. Texas requires all new cars to be purchased through third-party dealerships, effectively blocking Tesla from selling cars directly. A resident of Texas may still easily purchase a vehicle from Tesla Motors, but purchasing the vehicle is handled as an out-of-state transaction. This may result in the inability to include Texas state sales tax in the loan, and new owners cannot take advantage of the personal delivery of their new Tesla at their home or office, usually picking up their car at a Tesla Service Center in a neighboring state instead. New owners must then register the vehicle with the state and pay the sales tax when license tags are ordered. In 2015 Tesla had lobbied the
Texas Legislature to modify Texas law [ 109 ]
to allow Tesla to sell directly to consumers and specifically allow Tesla employees to discuss "financing, leasing, or purchasing options" at the firm's existing stores in
Austin and Houston . [ 110 ]
Texas was considering passing legislation to allow Tesla to operate in the state
[ 111 ]
but legislation was not passed.
[ 112 ] New Jersey
On March 10, 2014, it was announced that
New Jersey Motor Vehicle Commission
and Governor Chris Christie
’s administration would be holding a meeting to pass a new proposal into law. This new proposal, PRN 2013-138, was announced one day before it was to be put into law. Tesla Motors responded by saying that the proposal "seeks to impose stringent licensing rules that would, among other things, require all new motor vehicles to be sold through middlemen and block Tesla’s direct sales model," and that "[Governor Christie’s] Administration has decided to go outside the legislative process by expediting a rule proposal that would completely change the law in New Jersey."
[ 113 ]
The meeting was for 2pm the next day. The law was passed, and "Tesla will no longer [be able to] sell electric cars in New Jersey, effective April 1". Diarmuid O’Connell, Tesla Vice President of Business Development, said, "Worse, it has done so without any reasonable notice or even a public hearing."
[ 114 ] Forbes
contributor Mark Rogosky said, "The state’s new rules protect its auto dealers from having to compete with Tesla’s direct sales model"; he goes on to point out that this is a direct contrast from what Christie said earlier, “We are for a free-market society that allows your effort and ingenuity to determine your success, not the cold, hard hand of the government.”
[ 115 ]
Kevin Roberts, a spokesman for the Christie administration, responded by saying "it was the [Tesla Motors] company, not the governor's office, that was attempting to bypass normal procedures.".
[ 113 ] [ 116 ]
In March 2015 the ban on Tesla Motor's operations in New Jersey was lifted, but with restrictions (maximum of 4 locations, and 1 service center).
[ 117 ] Michigan
On October 1, 2014, Michigan
House
Bill 5606, drafted "to keep automakers from forcing dealers to charge different documentation fees to different customers,"
[ 118 ]
was amended with a section stating that a manufacturer shall not "sell any new motor vehicle directly to a retail customer other than through its franchised dealers." The word "its" was removed, which assumed the manufacturer already had dealerships. Both houses passed the revised bill the next day, with only one nay vote from
Tom McMillin
in either house of the
Michigan Legislature
. Tesla argued that the original law would have allowed them to sell, because they didn't already have franchised dealers.
[ 119 ] On October 21, General Motors
released a statement saying that governor
Rick Snyder
should sign the bill into law because "we believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan." The same day, Snyder signed the bill. Tesla responded to the GM statement by saying that "GM distorts the purpose of the franchise laws which are in place not to cement a monopoly for franchised dealers, but rather to prevent companies with existing franchises from unfairly competing against them."
[ 120 ]
The law in Michigan goes so far as to ban a manufacturer from opening a service center for its cars, effectively banning Tesla Motors from opening even a service center.
[ 121 ] Others West Virginia
does not allow Tesla-owned stores or showrooms.
[ 122 ] Permissive states [ edit ]
In September 2014 Massachusetts allowed Tesla to sell directly.
[ 123 ] Georgia
has legislation favorable to Tesla.
[ 122 ] [ 124 ]
In May 2015, the state of
Maryland
approved, through House Bill 235,
[ 125 ]
direct Tesla sales to consumers beginning in October 2015, allowing 4 stores. The legislation was crafted specifically for Tesla.
[ 126 ] [ 127 ] Technology [ edit ]
Tesla Motors builds electric powertrain components for vehicles from other automakers, including the lowest-priced car from
Daimler , the Smart ForTwo electric drive , the Toyota RAV4 EV , and Freightliner's
Custom Chassis Electric Van.
Battery technology [ edit ]
Tesla Electric Car Recharging Station (USA, 2014)
Unlike other automakers, Tesla does not use single-purpose, larger format cells. Tesla uses thousands of
lithium-ion 18650 commodity cells
. 18650 cells are small, cylindrical
battery cells
, which are usually found in laptops and other consumer electronics devices. Tesla Motors uses a version of these cells, designed to be cheaper to manufacture and to be lighter than the standard cells. The cost and weight savings were made by removing some safety features which, according to Tesla Motors, are redundant because of the advanced thermal management system and a protective
intumescent
chemical in the battery pack. This chemical is intended to prevent battery fires.
[ 143 ]
Currently Panasonic, a Tesla Motors investor, is the sole supplier of the battery cells for the car company.
Tesla Motors may have the lowest rates for electric car batteries; the estimated battery costs for Tesla Motors is around US$200 per kWh.
[ 143 ] [ 144 ]
Currently, Tesla Motors charges US$10,000 more for the 85 kWh battery than the 60 kWh battery, or US$400 per kWh. At US$200 per kWh, the battery in the 60 kWh Model S would cost US$12,000, while the 85 kWh battery would cost US$17,000. The price increase is closer to US$8,000, as supercharging is included in the higher price. It is a US$2,000 option for the 60 kWh version.
In the Model S, Tesla Motors integrated the battery pack into the floor of the vehicle, unlike in the Roadster, which had the battery pack behind the seats. Because the battery is integrated into the floor of the Model S, no interior space is lost for batteries, unlike in other electric vehicles, which often lose trunk space or interior space to batteries. The location of the battery pack and the lower ride of the Model S does put the battery at a higher risk of being damaged by road debris or an impact. To protect the battery pack, the Model S has 0.25 in (6 mm)
aluminum-alloy armor plate. [ 145 ]
The battery pack's location allows for quick
battery swapping
. A battery swap can take as little as 90 seconds in the Model S.
[ 146 ]
Tesla's first battery swap station is located at Harris Ranch, California, and is operational as of December 22, 2014.
[ 147 ]
Since 2008, Tesla has worked with ToxCo/Kinsbursky to
recycle worn out RoHS
batteries, which will be an integral part of GigaFactory.
[ 148 ] [ 149 ] [ 150 ] Technology sharing [ edit ]
The Tesla Patent Wall at its headquarters was removed after the company announced its patents are part of the
open source movement. [ 151 ]
Tesla CEO Elon Musk announced in a press release and conference call on June 12, 2014, that the company will allow its technology
patents
be used by anyone in good faith.
[ 152 ]
Future agreements to be made are expected to include provisions whereby the recipients agree not to file patent suits against Tesla, or to copy their designs directly.
[ 153 ]
Reasons expressed for this stance include attracting and motivating talented employees, as well as to accelerate the mass market advancement of electric cars for sustainable transport. "The unfortunate reality is, electric car programs (or programs for any vehicle that doesn't burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than 1% of their total vehicle sales," Musk said. Tesla will still hold other intellectual property, such as
trademarks and trade secrets
, which would prevent direct copying of its vehicles.
[ 154 ] Competition [ edit ]
General Motors' then-Vice Chairman
Robert Lutz
said in 2007 that the Tesla Roadster inspired him to push GM to develop the
Chevrolet Volt
, a plug-in hybrid sedan.
[ 155 ]
In an August 2009 edition of
The New Yorker
, Lutz was quoted as saying, "All the geniuses here at General Motors kept saying lithium-ion technology is 10 years away, and Toyota agreed with us—and boom, along comes Tesla. So I said, 'How come some tiny little California startup, run by guys who know nothing about the car business, can do this, and we can't?' That was the crowbar that helped break up the log jam."
[ 156 ] Car models [ edit ] Tesla Roadster [ edit ] Main article: Tesla Roadster
Tesla began producing right-hand drive Roadsters in January 2010 and sold them in the UK, Australia and parts of Asia.
Tesla Motors' first production vehicle, the Tesla Roadster, was an all-electric sports car. The Roadster was the first highway-capable all-electric vehicle in
serial production
for sale in the United States in the modern era. The Roadster was also the first production automobile to use
lithium-ion battery
cells and first mass production
BEV
to travel more than 200 miles (320 km) per charge.
[ 157 ]
Tesla Roadster Sport 2.5, the company's fourth-generation Roadster
Prototypes were introduced to the public in July 2006. The Tesla Roadster was featured on the cover of
Time
in December 2006 as the recipient of the magazine's "Best Inventions 2006—Transportation Invention" award.
[ 158 ]
The first "Signature One Hundred" set of fully equipped Roadsters sold out in less than three weeks,
[ 159 ]
the second hundred sold out by October 2007, and general production began on March 17, 2008.
[ 160 ]
Since February 2008 two new models were introduced, one in July 2009, and another in July 2010.
[ 161 ] [ 162 ] [ 163 ]
In January 2010, Tesla began producing its first right-hand-drive Roadsters for the UK and Ireland, then began selling them in mid-2010 in Japan, Singapore, Hong Kong and Australia.
[ 164 ]
Tesla produced the Roadster until early 2012, when its supply of
Lotus Elise gliders
ran out, as its contract with
Lotus Cars
for 2,500 gliders expired at the end of 2011.
[ 23 ] [ 24 ]
Tesla stopped taking orders for the Roadster in the U.S. market in August 2011.
[ 165 ] [ 166 ]
Featuring new options and enhanced features, the 2012 Tesla Roadster was sold in limited numbers only in Europe, Asia and Australia.
[ 167 ] [ 168 ]
The next generation is expected to be introduced in 2019, based on a shortened version of the platform developed for the
Tesla Model S . [ 169 ]
Tesla sold more than 2,400 Roadsters in 31 countries through September 2012.
[ 170 ] [ 171 ]
Most of the remaining Roadsters were sold during the fourth quarter of 2012.
[ 172 ]
The car had an average range of 245 miles (394 km) per charge according to Tesla.
[ 173 ]
On October 27, 2009, the Roadster driven by
Simon Hackett
drove the entire 313-mile (504 km) segment of Australia's annual Global Green Challenge on a single charge, at an average speed of 25 mph (40 km/h).
[ 174 ] [ 175 ]
The Tesla Roadster can accelerate from
zero to 60 mph (97 km/h)
in under 4 seconds and has a top speed of 125 mph (201 km/h). The base price of the car is
US$109,000 (€84,000 or £87,945 ). [ 26 ]
The Roadster Sport price started at
US$128,500
in the United States and €112,000 (excluding VAT) in Europe. Deliveries began in July 2009.
MotorTrend
reported that the Roadster Sport recorded a 0–60 mph of 3.70 seconds and a quarter-mile test at 12.6 sec @ 102.6 mph (165.1 km/h), and stated "Tesla is the first maker to crack the EV legitimacy barrier in a century."
[ 176 ] Model S [ edit ] Main article: Tesla Model S
Tesla started production of its
Tesla Model S
sedan in 2012, and deliveries to retail customers began in June 2012.
The Model S was announced in a
press release
on June 30, 2008.
[ 177 ] [ 178 ] The sedan
was originally code-named "Whitestar".
[ 179 ]
Retail deliveries began in the U.S. on June 22, 2012.
[ 180 ]
The first delivery of a Model S to a retail customer in Europe took place on August 7, 2013.
[ 181 ]
Deliveries in China began on April 22, 2014.
[ 182 ]
First deliveries of the
right-hand-drive model
destined for the UK, Australia, Hong Kong and Japan were delivered as scheduled in 2014.
[ 183 ]
The Model S was to have three battery pack options for a range of up to 265 miles (426 km) per charge,
[ 184 ]
but this was reduced to two, due to lack of demand for the shortest range vehicle. The
United States Environmental Protection Agency
range
for the 85 kW·h battery pack model, the first trim launched in the United States market, is 265 mi (426 km),
[ 185 ]
and 208 mi (335 km) for the model with the 60 kW·h battery.
[ 186 ]
Model S global sales by quarter (3Q 2012 to 3Q 2015)
A total of 2,650 Model S cars were sold in the North American market during 2012, mostly in the United States.
[ 172 ]
Sales in Europe and North America totaled 22,477 units in 2013.
[ 187 ]
During 2014 a total of 31,655 units were delivered worldwide,
[ 188 ]
and about 33,151 units were sold worldwide during the first three quarters of 2015.
[ 189 ] [ 190 ] [ 191 ]
The United States is the leading market with over 50,000 units sold by early July 2015.
[ 192 ]
Norway is the Model S largest overseas market,
[ 193 ]
with 8,697 new units registered through June 2015
[ 194 ] [ 195 ] [ 196 ]
As of September 2015
[update]
, global Model S sales totaled 89,933 units since its introduction in June 2012,
[ 190 ] [ 191 ] [ 197 ]
and sales are expected to pass 100,000 units globally by December 2015.
[ 11 ] [ 197 ]
The Tesla Model S was the top selling new car in Norway in September 2013, thus becoming the first electric car to top the sales ranking in any country. The Model S captured a market share of 5.1% of all new car sales that month.
[ 198 ] [ 199 ] [ 200 ]
In December 2013, and with a 4.9% market share, the Model S topped one more time the best selling new car list in Norway.
[ 201 ]
In March 2014 Tesla Model S became the best-ever selling car for over a period of one month in Norway, with 10.8% of all new cars registered in the country in March 2014 were Tesla Model S.
[ 202 ]
The Model S ranked as the third top selling plug-in electric car in the U.S. after the
Chevrolet Volt and the Nissan Leaf
in 2013 and 2014.
[ 203 ] [ 204 ]
Also in 2013, the Model S was the top selling car in the
full-size luxury
sedan category in the U.S., ahead of the
Mercedes-Benz S-Class
(13,303), the top selling car in the category in 2012, and also surpassing the
BMW 7 Series (10,932), Lexus LS (10,727), Audi A8 (6,300) and Porsche Panamera (5,421). [ 205 ]
The Model S ranked as the world's second best selling plug-in electric vehicle after the Nissan Leaf in 2014,
[ 188 ]
and it ranked as the top selling plug-in electric car in the U.S. for the first nine months of 2015, with about 17,700 units delivered.
[ 11 ] Robotic manufacturing
of the Model S at the
Tesla Factory in Fremont, California
Tesla manufactures the Model S in
Fremont, California
, in an assembly plant formerly operated by
NUMMI
, a defunct joint venture of
Toyota and General Motors , now called Tesla Factory
. Tesla purchased a stake in the site in May 2010 for
US$42 million , [ 206 ] [ 207 ]
and opened the facility in October 2010.
[ 206 ] [ 208 ] [ 209 ]
For the European market, Tesla assembles and distributes the Model S from its European Distribution Center in
Tilburg
, the Netherlands. Tesla chose Tilburg because of its location near the port of
Rotterdam
, where Models S components arrive from the U.S. The center also serves as a workshop and spare parts warehouse. Cars are built and tested in Fremont. Then, the battery pack, the electric motor and parts are disassembled and shipped separately to Tilburg, where the cars are reassembled.
[ 210 ]
Among other awards, the Model S won the 2013 "
Motor Trend Car of the Year
", [ 211 ] the 2013 " World Green Car ", [ 212 ] Automobile Magazine
's 2013 "Car of the Year",
[ 213 ] and Time Magazine
Best 25 Inventions of the Year 2012 award.
[ 214 ]
In June 2015, three years after the Model S introduction and with almost 75,000 Model S sedans delivered worldwide, Tesla announced that Model S owners have accumulated over 1 billion electric miles (1.6 billion km) traveled.
[ 215 ] [ 216 ]
The Tesla Model S is the first plug-in electric vehicle fleet to reach the 1 billion electric miles milestone. In October 2014 General Motors reported that Volt owners had accumulated a total of 629 million all-electric miles (over 1 billion kilometers) traveled; while Nissan reported in December 2014 that Leaf owners had traveled 625 million miles (1 billion kilometers).
[ 216 ]
In October 2014, Tesla announced the 85D and P85D dual-motor all-wheel drive variants of the Model S.
[ 217 ] [ 218 ] [ 219 ]
The high-end P85D can accelerate from 0–60 mph (0–97 km/h) in 3.2 seconds and has a top speed of 155 miles per hour (249 km/h), compared to the Model P85's 130 miles per hour (210 km/h).
[ 218 ] [ 219 ]
The Model S 85D can cruise at 65 mph (105 km/h) for 295 miles (475 km) on a single charge, 10 miles more than the Model S 85.
[ 220 ]
The control system shifts power between the motors, so each is always operating at its most efficient point.
[ 218 ] Delays [ edit ]
Tesla has been criticized for overpromising and underdelivering in a number of areas. Delivery dates for new vehicles and new vehicle features have slipped on the Roadster, the Model S and the Model X. Advanced technologies like the prospect of a large network of
solar-powered
supercharger stations (2012; only two are solar powered as of late 2014) and of a growing number of battery-swapping stations (2013; none operational by 17 December 2014) are substantially behind and auto-industry media sources have written about it.
[ 290 ] Hacking [ edit ]
On August 6, 2015, it was reported that two researchers claimed to be able to take control of a Tesla Model S by hacking into the car’s entertainment system.
[ 395 ]
The hack required the researchers to first physically access the car.
[ 396 ]
Tesla has issued a security update for the Model S after security researchers discovered six flaws that allowed them to control its entertainment software and hijack the vehicle.
[ 397 ] Board of directors [ edit ] As of 2014 [update]
, the Tesla Motors board of directors consists of:
[ 398 ] Elon Musk
—Chairman of the board of directors, CEO and
Product Architect
of Tesla; former President of
PayPal
, founder, CEO and CTO of
SpaceX
; Chairman of the board,
SolarCity Brad Buss—CFO of Cypress Semiconductor Corp Ira Ehrenpreis—General Partner, Technology Partners
Antonio J. Gracias—CEO and Chairman of the Investment Committee at
Valor Equity Partners Steve Jurvetson —Managing Director, Draper Fisher Jurvetson .
Harald Kroeger—Mercedes-Benz Vice President, responsible for electrics and electronics
Kimbal Musk
—CEO of Medium, Inc., Co-founder Zip2
Robyn Denholm — Chief Financial Officer and Executive Vice President , Juniper Networks Posted by supercar at 02:13 No comments: Email This BlogThis! Share to Twitter Share to Facebook Share to Pinterest Home Subscribe to: Posts (Atom) About Me supercar
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