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New Jersey votes to allow direct Tesla sales

It's not quite the law that Tesla Motors can sell its car directly to customers in New Jersey, but the state has taken one step closer to that reality. Yesterday, New Jersey's Assembly Consumer Affairs Committee voted 4-0 to approve bill A3216, which would "Permits certain zero emission vehicle manufacturers to directly sell motor vehicles to consumers and requires them to operate service facilities." The EV automaker's ongoing dealer fight took a turn for the worse in New Jersey a few months ago, when the state legislature voted in mid-March to prevent Tesla stores from conducting their business. Tesla had been selling cars in the sate, but Governor Chris Christie said the ban was just an enforcement of a law that had been on the books for years, something Tesla said was an "affront to the very concept of a free market." If A3216 becomes law, then electric vehicle makers would be able to operate "no more than four places of business in the State" as well as one service center. The bill will let Tesla "conduct the business of educating the public about electric vehicles" – Diarmuid O'Connell Speaking to the committee, Tesla's vice president of business development, Diarmuid O'Connell, said, "This is a super important issue for us in New Jersey, and as some of you would know, nationally as well. ... [The bill would] allow us to in a modest way and a reasonable way conduct the business of educating the public about electric vehicles and getting as many of those vehicles on the road as quickly as possible." Speaking for the New Jersey Coalition of Automotive Retailers, president Jim Appleton said that this solution is fine for start-up EV automakers, but that the franchise model should still be the goal for anyone selling cars. This fight isn't nationwide yet, but the FTC has come out against what it called "protectionist" anti-direct sales mandates, so we expect to be hearing more as time goes by.

Ecotricity says Tesla acting the bully in UK supercharging situation

As Tesla Motors stands ready to expand its presence in the oh-so-polite UK, green-energy company Ecotricity is accusing the California-based automaker of being a little less than civilized. The term bullying is being thrown around, and Ecotricity founder Dale Vince told The Guardian that Tesla's communication was "very dark", "shocking" and "brutal." All in the name of some well-placed Supercharger stations. Ecotricity says it had been in talks with Tesla about collaborating on charging station locations. Tesla is looking to deploy the first part of its UK Superchager network this month, but Ecotricity now says it was contacted by Tesla saying that Tesla was going to take over many of Ecotrocity's prime sites, according to The Guardian. Moreover, Tesla is taking advantage of information gleaned from a non-disclosure agreement (NDA), Ecotricity alleges. Tesla did not respond to our request for comment on this issue. Tesla said at the Geneva Motor Show earlier this year that it would significantly expand its Supercharger network throughout Europe in 2014 as it introduces the right-hand-drive version of the Model S sedan to the UK. Ecotricity, which specializes in getting its energy from renewable sources, said in February that it would start offering the UK's electric-vehicle drivers 1,000 miles of free fast charging annually on Ecotricity's so-called Electric Highway. The company said at the time that it aimed to deploy fast-charging stations at 90 percent of service stations along UK highways. Tesla sold its first EV, the Roadster, in the UK all the way back in 2010.

Elon Musk: Tesla Gigafactory location announcement coming late 2014

Tesla's Gigafactory is going to be a huge deal. So huge, in fact, that Tesla's not going to announce where it will be located until later this year. You may remember that, just a month ago, Tesla CEO Elon Musk said that, "The No. 1 thing is we want to minimize the risk timing for the Gigafactory to get up and running." Well, apparently getting the timing right doesn't mean rushing to get things done before they're ready. 30 percent cost decrease is "probably conservative at this point" – Elon Musk The reason Tesla needs the Gigafactory, as you may remember, is to supply packs for the company's Gen 3 car, the EV that is supposed to cost $35,000 and be able to go over 200 miles on a charge. To get down to that price point, the batteries need to be cheaper, and Musk has said that the Gigafactory should reduce the per-kWh cost of a pack by "more than 30 percent." Speaking at the annual shareholder conference this week, Musk confirmed that planning for the battery plant is "quite advanced" and that Tesla is meeting daily with Panasonic, the other partner in the deal. Panasonic was originally unsure that those kinds of cost reductions could be achieved, Musk said, "but I think they are now convinced they can." In fact, he said 30 percent is "probably conservative at this point." The Gigafactory should be up and running by the "late 2016 timeframe," Musk said, right around the time the Gen 3 car will be ready for volume production. While there will still only be one Tesla Gigafactory to begin with, Musk said that Tesla might start the process in two or three states (as opposed to just one or two, as hinted earlier). "We're probably going to do two or maybe three states all the way to creating a foundation and completing the plans and getting approvals and everything," he said. Sounds like someone wants to be ready to build gigafactories #2 and #3 in a hurry if need be. We've got more from the meeting, including videos of Musk's talk, here and here. You can read Tesla's original Gigafactory proposal here (PDF).

Tesla tidbits: Roadster getting 'exciting' upgrade in 2014

It's been quite a while since we've had news about the Tesla Roadster. The original Tesla electric vehicle hasn't been sold in the US for years and we're in a quiet period before the next-generation shows its face. We were fine with the status quo – it's not like Tesla Motors isn't keeping busy with other projects in the meantime – but something that CEO Elon Musk said during the annual shareholder meeting caught our eye this week: the Roadster will get some sort of update before the end of the year. Details were obviously not disclosed, but Musk did say that something cool is coming: We are planning on I think a fairly exciting upgrade to the Roadster. I'm hoping we can get it done later this year. I did say it would be this year and ... yes, we will get it done this year. ... So, we're going to do something cool with Roadster before the end of this year. Anyone want to guess what this upgrade might be? We know that Roadster batteries are performing better than expected, so we're going to discount that possibility that these older EVs will be made compatible with Tesla's Supercharger technology. But Musk did say at the meeting that this tech is available to other automakers, if they could somehow make an EV that can handle the Supercharger's 135-kW output (a number that Tesla hopes to increase in the future): There is no other electric car that can accept anything close to 135 kilowatts. We are more than happy to have other manufacturers do this. And I've said this publicly on a few occasions. No one's approached us and said they'd like to use it. We are happy to have them do so. They just have to contribute to the capital cost, so figure out what percentage of the time are their cars using the Supercharger network and then they can make a contribution proportionate to their customer usage of the Supercharger network. So, we're very open to such a thing. Musk also confirmed he is open to remaining at Tesla for another half decade or so, until at least when the company's lower-cost, third-generation car gets to "volume production." He said that's maybe four or five years away and that there is "a lot of time" to figure out who will replace him when he does finally step down. We know the car is not going to be the Model E (thanks to Ford's trademark, Musk said) and that the company's targets are for it to cost around $35,000 before incentives and have a range of more than 200 miles.

Production Tesla Model X designed for women, looks 'better' [w/video]

A recent study found that men and women drive their electric vehicles differently. That might help explain why there is a male bias towards Tesla's electric offerings while the more practical Nissan Leaf get the attention of female drivers. Well, according to Tesla CEO Elon Musk, who spoke with investors yesterday during the company's annual shareholder meeting, the upcoming Tesla Model X could shift the paradigm of the gendered EV. "We probably got a little too guy-centric on the S. So, we're hoping to correct that with the X" – Elon Musk Musk didn't get into details, but responding to a question from the audience, Musk said that "we're certainly paying more attention to the needs of women in the Model X. ... We probably got a little too guy-centric on the S. So, we're hoping to correct that with the X." Musk also said that the "production version of the Model X actually looks different from [what we've seen before], it looks better." When we think about the design of the Model X, the first thing that comes to mind are those falcon-wing doors, which Tesla repeatedly promises are sticking around in the production version. Perhaps the feel of opening them is what he meant when he said the design is meant to appeal to women? So in the case of Model X that's just taken a bit longer than we would have liked. In particular, getting the falcon-wing door right is extremely difficult. Things that you maybe wouldn't expect are also very difficult, things like the second row seats are quite a challenge because what we're aiming for with the Model X is that when you open the falcon-wing door, you have the second row seats essentially framed and we want that to feel like a work of art. If you open up the door it should be this amazing experience. I mean, it may sound a bit silly, but it should just feel like "ahh!" [laughs] And then the seat, I mean it's just the seat but we want the seat to be like feel like a work of art like something you could have in a museum. Anyway, that's where we're going for with the Model X, and it's bloody hard. Whatever the case, Model X pre-orders are rolling in. Once the EV arrives in customer driveways some time next year (Musk said he expects volume production to kick in during the second quarter of 2015), we'll have a better idea if it's the soccer moms or the soccer dads who like the AWD-only Model X more. You can see all of Musk's remarks in the video below.

This map shows where Tesla can and can't sell cars

The fine folks at Mojo Motors recently put together a US map showing where the Tesla Model S electric vehicles can and can't be legally sold. They marked the "legal" states in blue, "illegal" states in red and "in legislation" states in that proverbial gray area. And darn if that colorful map didn't match up pretty well with a political-party map of the country. 24 states are technically Tesla-ready. Of the 50 US states, 24 states are technically Tesla-ready, in addition to Washington, DC. And while some (California, New York, Massachusetts and Washington State) were pretty obvious, others (Mississippi and Georgia, for example) surprised us a little. We were also interested to see that Arizona and West Virginia were marked as "in legislation" but Ohio and New Jersey were not, given the fights there. In any case, Texas is red. Bright red. Tesla Supercharger locations are also marked, but Tesla's constantly updated map is likely a better source for that info after a few weeks have passed. If you'd like to dig into the nitty gritty of the various dealer franchise laws, then use the same source that Mojo Motors' marketing manager Max Katsarelas used to make the map, an article in the Georgia State University Law Review from 2002. Check out footnote 153 on page 23 for all the details. While he did integrate current news reports, Katsarelas told AutoblogGreen that he had to update the map recently after finding out that Oregon and Indiana do allow Tesla sales. With the ongoing legislation fights, we don't expect this map to remain current all that long. Still, you can even click it to enlarge. The legality of Tesla being able to sell directly to consumers without third-party dealership franchises could some day change from the patchwork you see above into a single color. Recently, the Federal Trade Commission (FTC) went on record as saying that Missouri and New Jersey should reconsider its policies that would prevent automakers from direct consumer sales. It's not a national rule, but it is a step in that direction.

For Tesla, the energy-storage company, the magic is in batteries

Tesla Motors Chief Elon Musk has always been a big-picture guy, and the company's chief technology officer appears to be following suit. JB Straubel, who was a keynote speaker at the Joint Venture Silicon Valley symposium near the automaker's Northern California home base recently, says the company is just as much an energy-storage company as a car maker. And he said the rate of battery-technology improvement shows no signs of slowing down, according to Green Tech Media. Straubel estimated that battery performance has improved about 40 percent during the five years between the debuts of the Tesla Roadster and the Model S. Additionally, battery density has doubled during the past decade and continues to ramp up fairly steeply. He noted that further near-term improvements will come not from the size and shape of the cell, but from improved cathode and anode materials. Those energy improvements won't just help the cars. Tesla uses a two-megawatt-hour battery pack to supply as much as 10 percent of the peak energy used at the company's factory in Fremont, CA, and will double the size of that battery-powered energy capacity within the next few months, Straubel says. Automakers like Tesla and Nissan are licking their proverbial chops at the prospect of substantially improved battery performance paired with declining battery costs as more and more lithium-ion battery packs get produced. Late last year, Navigant Research estimated that lithium-ion battery costs would fall by almost two-thirds by 2020, down to a low $180 per kilowatt hour. That should make electrified powertrains price-competitive with conventional vehicles, as electric vehicles could then command a price premium as low as $2,000 compared to their gas-powered brethren.

BMW just the latest automaker to realize China will want a lot of EVs

News about China and cars isn't in short supply these days. With several of the world's largest cities, millions of cars on the road and huge problems with air pollution, it's no wonder that the nation is trying to make some changes. Along with decommissioning many of its aging vehicles, China is also expected to see huge growth in its electric vehicle market. BMW, as other automakers already have done, sees this as an opportunity to sell more cars. "We expect that the Chinese car market for electromobility will become the largest markets for those cars in a few years," says Karsten Engel, BMW's China head. BMW is collaborating with Shanghai's State Grid municipal power company to put public EV charging points at the former World Expo site, and the city plans to create 45 more by the end of the year. These will charge many different vehicles made by BMW and other brands. Tesla, which began delivering its Model S to China last month, plans to build its own supercharger network for the country. BMW plans to begin selling the battery-powered i3 and i8 plug-in hybrid in China this fall. BMW hopes to sell more than 400,000 vehicles in China this year. Fewer than 1,000 of those will be the i3, though, says Engel, due to a lack of supply. So far, China is falling drastically behind its own targets to get EVs on the road. With a goal of 500,000 by 2015, fewer than 70,000 EVs are currently operating in China. This numbers gap doesn't necessarily mean that the demand is or isn't there yet, but more and more automakers are betting it will be, and soon. Volkswagen is planning a fleet of electrified models for China by 2018 (at least 15 models according to Bloomberg). Daimler is teaming up with China's BYD to build EVs (and, of course, Your Dreams). Other Chinese companies are getting into the game as well. Featured Gallery 2014 BMW i3: First Drive View 33 Photos Related Gallery 2015 BMW i8: First Drive View 62 Photos News Source: Bloomberg via Automotive News EuropeImage Credit: Copyright 2014 Sebastian Blanco / AOL Green BMW Tesla Electric Shanghai charging station pollution exports

Tesla dropped to 'junk bond' status by S&P

While Tesla Motors' Model S is a piece of pristine, well-designed metal, the company's bonds have now been rated as "junk." But maybe that's better than the other way around. We'll let the investors decide. Standard & Poor's gave Tesla's bonds a 'B-' rating this week, indicating so-called "junk status," Automotive News says. That means investors are saying the company has a relatively high chance of defaulting on its loans. S&P cites Tesla's short history, competition from some very large companies and relatively narrow product line (none of which are new facts), and estimates that investors would be able to recover 30 to 50 cents on the dollar should the company default. Tesla has been issuing billions of dollars in bonds this year to raise funds for its planned gigafactory somewhere in the southwestern US, a project that Tesla estimated will cost $5 billion ($2 billion from Tesla, $3 billion from partners). Tesla said earlier this month that it took a first-quarter loss of $49.8 million, compared to year-earlier net income of $11.2 million. While revenue rose 10 percent to $620.5 million, selling and administrative costs more than doubled while research and development costs jumped 48 percent. And while Tesla's share price has doubled during the past 12 months (it's at around $209 today), the company's liabilities doubled to $3.52 billion from the beginning of the year to the end of the first quarter. There's a short video on the situation from CNN Money below.

Toyota still wants Tesla's battery help, still evaluating RAV4 EV program

Tesla Motors said earlier this month that the agreement it has with Toyota to supply battery packs for the Toyota RAV4 EV SUV would be finished by the end of the year. The deal is done, but Toyota is now singing its best version of Baby, Please Don't Go. The Japanese automaker may look to extend the battery-pack agreement with California-based Tesla, Automotive News says, citing comments made by Osamu Nagata, who heads Toyota's manufacturing and engineering in North America. Nagata also complimented Tesla for its "clear business strategy." Toyota, which owns 2.5 percent of Tesla, started the RAV4 EV collaboration in 2012, in which Tesla was to make about 2,600 battery packs for the all-electric SUV. That agreement was estimated to be worth about $100 million. "We are also evaluating the RAV4 EV program and will have more to say at a later date" – Toyota "We have a good relationship with Tesla and will evaluate the feasibility of working together on future projects," Toyota said in a statement e-mailed to AutoblogGreen. "We are also evaluating the RAV4 EV program and will have more to say at a later date." And while Toyota hasn't quite met initial sales expectations – it sold about 1,600 of the RAV4 EVs through this spring – the company expects to reach 2,500 by the end of the year. And the partnership did generate about $15 million in revenue for Tesla, according to that company's first-quarter letter to shareholders. That said, Tesla is obviously focusing its battery-making efforts on its own models.