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Tesla CEO Elon Musk expects 'hundreds' of battery gigafactories

Tesla Motors has officially announced it will build a massive electric vehicle battery factory, which it calls a gigafactory, to make a huge amount of cheaper lithium-ion pack for the EVs of the future. It says these packs are so important that it is working on plans for a gigafactory in two locations, just to make sure there is a Plan B if something goes wrong with Site A. But how many gigafactories could there one day be? According to Musk's vision, expressed at the World Energy Innovation Forum held at the Tesla Factory in Fremont this week (where he also said that using the Lotus Elise as the basis for the Tesla Roadster was not the best idea), the auto industry will one day need hundreds of battery gigafactories. Now, that's not hundreds of Tesla gigafactories, but he thinks there will need to be 200 just to supply the automotive industry. Throw in stationary energy storage and iPads that run all year, and the number climbs even higher. One benefit of all these cells coming to market will be cheaper electric vehicles. Originally, Tesla said that its gigafactory would be able to reduce the per-kWh cost of a Tesla battery pack by "more than 30 percent." Musk repeated that number at the Forum this week, saying, "I think we can probably do better than 30 percent." The groundbreaking of the first Tesla plant could take place next month. Oh, and as a side note: doesn't Michigan look odd in the image above? We are one with the lake, apparently.

Battery-pack production for plug-ins, hybrids, triples in three years

Panasonic's standing in the plug-in and hybrid battery production industry has zoomed ahead like a Tesla Model S taking off from a standstill. That's appropriate because the Japanese company's relationship with the California-based automaker has been the primary reason for its growth, which looks like it will continue to be rapid. According to new numbers from Lux Research, battery manufacturers are producing 1.4 gigawatt-hours worth of batteries for plug-in and pure battery-electric vehicles per quarter, up from under 200 MWh in early 2011. Lithium-ion batteries account for 68 percent of the current total, while nickel-metal hydride batteries (like the one used in the non-plug-in Toyota Prius) account for 28 percent. The rest are made up of small numbers of things like solid-state batteries. Panasonic has been the primary beneficiary of electric vehicle growth (click on chart to enlarge). The company has a 39percent market share for plug-in and hybrid batteries, while NEC has 27 percent and LG Chem has 9 percent. As for demand, Toyota, Tesla and Renault-Nissan account for about three-quarters of all batteries used for plug-in and hybrid vehicles. Panasonic expanded its battery-production deal with Tesla last October. There are more details in the Lux Research press release below. Panasonic Has 39% Share of Plug-In Vehicle Batteries, Thanks to Its Deal With Tesla Batteries for Plug-Ins and Hybrids Were a $660 Million Market in Q1 2014, Led by U.S. Demand, According to Lux Research's New Automotive Battery Tracker BOSTON, MA--(Marketwired - May 6, 2014) - Batteries for hybrids and plug-in vehicles are growing fast, more than tripling over the past three years to reach 1.4 GWh per quarter, according to the Automotive Battery Tracker from Lux Research. Panasonic has emerged as the leader thanks to its partnership with Tesla, capturing 39% of the plug-in vehicle battery market, overtaking NEC (27% market share) and LG Chem (9%) in 2013. "Even at relatively low volumes -- less than 1% of all cars sold -- plug-in vehicles are driving remarkable energy storage revenues for a few developers, like Panasonic and NEC, that struck the right automotive partnerships," said Cosmin Laslau, Lux Research Analyst and the lead author of the new Lux Research Automotive Battery Tracker.

In hindsight, Musk wouldn't use Lotus for Tesla Roadster

The world will be a different place after Elon Musk builds a time traveling device (don't ask us how we know that will happen). For one thing, the Tesla Roadster of the rewritten future will not have been built using the chassis of the Lotus Elise. Also, verb tenses will be becoming even more confusing and, possibly, awkward. "We ended up changing most of the damn car" – Elon Musk We know about the not-using-the-Lotus thing because the Tesla Motors CEO said as much yesterday at the World Energy Innovation Forum at the Tesla Factory in Fremont. The two-day event, which also offers Model S test rides and a factory tour for attendees, featured a fireside chat with the electric automaker's CEO and Ira Ehrenpreis. During the discussion, Musk revealed that if he had to do it over again, he would have built the Roadster from the ground up instead of using the Lotus Elise chassis. "We ended up changing most of the damn car, so we thought later, why did we do that," he said. Another problem with the original idea for the car was the drivetrain. At first, Tesla had meant to use the motor and other propulsive bits from AC Propulsion, only to find that powertrain didn't work well in a commercial application. Instead Tesla only licensed the reductive charging patent, which allowed some integration of the inverter and charger. Besides knocking Tesla's own early efforts, the outspoken entrepreneur took a couple swings at other technologies with quotable quotes such as: "The internal combustion engine is a ridiculous thing!" and "Current lithium ion technology is better than theoretical fuel cell limits. So, game over. Why bother with fuel cells?" Looks like there are some things Musk is not interested in going back in time and changing.

Elon Musk says yes to The Oatmeal's $8M request for Nikola Tesla museum

Matthew Inman is known for his lengthy, often wordy online comics called The Oatmeal. He's also a huge fan of Nikola Tesla, and helped gather $1.37 million via crowdfunding in 2012 to buy up Tesla's laboratory and set the stage for a Tesla museum, the Tesla Science Center at Wardenclyffe. It was such an Internet hit that Tesla Motors CEO Elon Musk even chipped in $2,500 and Tweeted that he "will do more in the future." Well, Inman is getting ready to call in that favor. Yesterday, The Oatmeal published a glowing review of sorts on how great the all-electric Model S is (slightly NSFW). In it we learned that Inman is bonkers in love with his EV, calling it his "intergalactic spaceboat of light and wonder" and saying the acceleration is "freaky." He adores the door handles, the frunk, the advanced powertrain and pretty much everything else. In fact, part one is so positive it reads like an over-the-top Tesla advertorial. But then comes part two, where Inman gets down to business. Musk simply said, "I would be happy to help." See, the $1.37 million was used to buy Nikola Tesla's property but was not enough to actually, you know, build the museum. To do that, the Science Center needs another $8 million. And guess who has those kinds of funds? How about a billionaire who is using the Tesla name and is already a fan of the museum idea? That's right, one Elon Musk. And part 2 of The Oatmeal's comic is an argument for why Musk should fork over the $8 million to help pay for the museum. Inman says it is, "A polite request from a humongous fan" and adds that, "You owe us nothing, and you've done nothing but good things in the name of Nikola Tesla. But the fact remains: Tesla Motors, a company now worth billions, is using Nikola Tesla's name, and they're using his technology, and all we want in return is a little bit of help." Inman says that $8 million is "the bare minimum to build, staff, and maintain a Nikola Tesla Museum," and that the number was reached after getting "countless estimates from site planners, architects, and museum curators from all around the world." Something like $6 million would be good, he writes, but, "any less than $8M would pretty much leave us in the same boat we're in now." Tesla hasn't offered up an official statement, but on Twitter, Musk simply said, "I would be happy to help." Not sure what that means, exactly, but it's probably not going to make Inman hate his car any time soon.

Tesla appears to be winning direct sales battle in Missouri

Last week, it looked like Missouri would join the list of states where Tesla Motors would not be allowed to sell its all-electric vehicles directly to consumers. Without warning, language was inserted into a bill about off-road vehicles what would have prevented direct sales in the state. Tesla called it a "sneak attack" and tried to get supporters to let lawmakers know the law was a bad idea. "It is not clear that the statues apply to a seller like Tesla" – Missouri Department of Revenue Thanks to some digging by Tesla fans over at the Tesla Motors Club, it became clear that one of the main drivers of the anti-Tesla legislation was conservative state senator Mike Kehoe, a former Ford and Lincoln-Mercury auto dealer. For some time, Kehoe has been asking the Missouri Department of Revenue if Tesla should have gotten a license to operate its one store in the state (in St. Louis) and said that the automaker's moves were, "clearly designed to circumvent the traditional franchise model for the distribution and sale of new motor vehicles." The DOR responded by saying, "It is clear under Missouri law that traditional manufacturers who already have franchised dealerships in the state may not sell cars directly to consumers. It is not clear that the statues apply to a seller like Tesla, which apparently has not entered into franchise relationships with independent dealers." After Kehoe got that response, it seems, he added the language to the bill. You can read the bill here. The tide may be turning against the proposed law, though. Tesla has apparently hired 10 lobbyists to makes its case. Local newspaper The Kansas City Star published an opinion column yesterday in support of the automaker. "As a business offering something new and better for the environment overall, Tesla should have been given allowances to operate in a different way in the state," the paper wrote. And the state House Republican majority leader, John Diehl, says he has no plans to move the bill forward because lawmakers are worried it would put a limit on the free market and have unintended consequences. Read more here: http://www.kansascity.com/2014/05/12/5019618/missouri-house-leader-not-fond.html#storylink=cp

Even hardcore Tesla fans can get stranded sometimes

Driving a few laps around the Las Vegas Motor Speedway in a Tesla Model S can be quite a treat. Driving between Los Angeles and Las Vegas? Sometimes, not so much. The fine folks at Teslarati had the good fortune of taking the all-electric luxury sedan for a few spins around the racetrack near Sin City, and found that the Tesla handled "quite well" and was able to reach a top speed of 110 miles per hour on one of the straightaways. And the car turned in a best time of two minutes and 17 seconds around the 2.4-mile circuit. Still, the car started limiting its own power as early as its second lap, and by the seventh lap or so, the car brought down its power capacity to about 25 percent in order to conserve juice. The drivers were able to make do because a Tesla Supercharger fast-charging station was 11 miles away and they could get a good charge in about an hour. Less of a treat was the car's performance between Vegas and Southern California. Despite being big Tesla fans (the driver writes for Teslarati, after all), the unexpected appearance of 35-mile-per-hour headwinds and the totally expected elevation changes between Las Vegas and Barstow, CA proved particularly problematic. The driver slowed down to 40 mph and dropped the Model S' power consumption to something in the 400-500 wh/m range, but still, our intrepid explorers ran out of juice and were stranded beside the road until Tesla kindly arranged for a tow. D'oh!

Chinese Tesla Model S buyers to get free license plate... a $15k value

Tesla buyers in in Shanghai, China, are getting even more of an incentive to choose its electric sedans. Each purchase of a Model S in the city will come with a free license plate.
That might not sound very important, but Shanghai operates under a government-organized auction system to distribute plates. Last year, they were selling for as much as $15,000, according to Car News China. The measure is a way to control the number of cars on the road, which contribute to the city's bad traffic and poor air quality.
Electric cars are exempt from the auctions and get a free license plate. However, that rule only covers Chinese-made electric cars. Obviously, Tesla doesn't build cars there (at least for now). But the Shanghai government will exempt 3,000 foreign electric cars per automaker to receive free plates, according to CNC. After they are gone, the company would have to go back and ask for more.

Tesla pulling plug on Toyota RAV4 EV battery deal

The future of the Toyota RAV4 EV appears to be in doubt. Tesla supplies the EVs battery packs, and it says that production ends later this year.
"Toyota is expected to end the current RAV4 EV model this year," Tesla said in its quarterly financial filing obtained by Bloomberg. "Our production activities under this program are expected to end in 2014," the company said.
This timeline fits closely with the original production plans for the RAV4 EV. When the $100-million project was first announced, Tesla said that it expected to supply battery packs for the vehicle from 2012 to 2014. Building components for the Japanese automaker continues to bring in money, though. In the company's Q1 2014 letter to shareholders, it said: "Automotive revenue included $15 million of Toyota powertrain sales." According to Bloomberg, Toyota has sold just 1,594 RAV4 EV models from 2012 through April 2014. Initially, the business had estimated that it would sell 2,600 units of the electrified crossover.

Only Four Tesla Model S Cars Ever Stolen

Tesla owners are some of the most satisfied car owners in America, and now they have one more reason to love their Model S: They basically never get stolen. In the last three years just four of the luxury electric cars have been stolen, MarketWatch reported. Three were reported stolen last year, none in 2012 and only one was stolen in 2011. It's not like they are too rare for thieves to get their hands on. At least 20,000 were sold last year alone. The National Highway Traffic Safety Administration says cars are stolen at an average rate of about 3.56 thefts per 1,000 vehicles produced. The Model S, however, squeaks by with a 0.15 per 1,000 theft rate, making it the least-stolen vehicle in America. The second-lowest theft rate is that of the Hyundai Tucson, with 0.40 thefts per 1,000 vehicles, according to the Highway Data Loss Institute. All that technology makes the Tesla tempting, but ultimately too difficult to steal. The Model S doesn't have any locks to pick, since the car opens and starts only when its corresponding key fob is near. Sure a thief could go to the trouble of hacking the car, but once they had it there isn't much they could do with it. Most cars are stolen and parted out in chop shops, and there simply isn't a market for additional Tesla parts. Related Gallery Tesla Model S Wins Coveted 'Car Of The Year' Awards Green Weird Car News Tesla Safety Electric stolen car

Missouri next state to attempt Tesla direct-sales ban

When Tesla Motors feels like its under attack, it is not afraid to speak out. After state lawmakers in New Jersey voted to close the electric vehicle company's stores there, the company said it was an "affront to the very concept of a free market" and CEO Elon Musk compared the situation to mafia tactics. In Ohio, when the company learned about a fast-moving challenge, it quickly asked its fans and owners for help. That same move is now taking place in Missouri, where Tesla said a "sneak attack" is happening that will "thwart due process and hurt consumer freedom in Missouri." Tesla currently has one store in Missouri, in St. Louis (and wants to open another), but new language inserted into a bill that had previously been focused on off-road vehicles "would bar Tesla from selling its vehicles direct to consumers in the state," the automaker says. That doesn't seem like an exaggeration, since the bill explicitly states: In enacting subsection 3 of this section, it is the express intent of the legislature to prevent any manufacturer of new motor vehicles from circumventing the public policy as stated in section 407.811, by engaging in methods of retailing new motor vehicles which are designed to avoid the provisions of sections 407.810 to 407.835. Tesla says the bill's new language passed the Senate last night, "after zero public consultation and could soon move to the House floor for a final vote, essentially without debate." Tesla wants to get a debate started, so it makes its point in bold terms. "To be clear: this is worse than a mere case of dealers trying to protect an existing monopoly – this is a case of dealers trying to create a monopoly," the company said. Recently, some officials at the FTC said they thought anti-direct sales rules were "protectionist," which at least hints that a possible change is coming. You can read Tesla's call to action for Missouri below. We have just become aware of a last-minute attempt by the auto dealers lobby, via pressure on legislators, to use a procedure that would bar Tesla from selling its vehicles direct to consumers in the state. This extraordinary maneuver amounts to a sneak attack to thwart due process and hurt consumer freedom in Missouri. In the last week before Missouri's legislature ends its current session, dealers proposed new language in an existing bill that would force Missouri consumers to purchase new vehicles only through middleman franchised dealers.