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Tesla trying to keep Model X demand low for now

When running a business, having to throttle the hype for a new product isn't such a terrible problem to have. That's exactly was Tesla is doing with its Model X SUV, which is slated to go on sale next year. During a quarterly earnings call (transcript available here), Tesla CEO Elon Musk explained that Tesla is currently steering customers away from the upcoming electric ute. "If somebody comes in who wants to buy the X, we try to convince them to buy the S." – Elon Musk "There are no cars available for a test drive," says Musk. "There is no information about the cars in our stores because we're only selling the S. In fact, if somebody comes in who wants to buy the X, we try to convince them to buy the S. So we anti-sell it." Sure, but why not get out in front of the Model X release, and encourage people to adopt early? According to Musk, Tesla can create demand for the Model X "at will." He just doesn't want customers twiddling their thumbs while they wait for their new car to become available. Musk says that in China, the only grievances were customers who were "upset about waiting too long for their car. So it's like, boy, we better not stoke demand in that situation." So it sounds like confidence is high over at Tesla concerning the Model X (perhaps Mr. Musk wouldn't mind sharing the patent for his magic demand wand). Customers, just make sure to temper your desire for the electric SUV for now, or you might just end up behind the wheel of a Model S sedan.

Recharge Wrap-up: Road-tripping in a Tesla Model S, Big Oil's tax advantage

Zap is poising itself to take advantage of China's extension of its electric vehicle incentive program. The government will be offering rebates on EVs, forgiving sales taxes and licensing fees, installing EV charging infrastructure and other measures to encourage adoption of zero-emission vehicles beyond 2015, through the year 2020. In response, electric vehicle company Zap and its partner Jonway Autos are decreasing production of gasoline-powered vehicles to make more EVs. It plans to increase production of its two EV production lines from 50 to 100 vehicles per day each, as well as positioning certain models for larger-scale production. Zap hopes customers will make use of rebates of up to $20,000 from the central government, plus local EV incentives. In October, Zap and Jonway will unveil new SUV and minivans that they intend to offer as less-than-gasoline- and zero-ownership-cost and vehicles under the umbrella of China's incentives. Read more in the press release below. Tesla Model S owner David Zygmont shares tips for taking cross-country road trips in an electric vehicle in a two-part podcast. David talks about his two-week road trip in his Tesla, and how he managed to make the most of charging his vehicle. One of his tools is the site EV Trip Planner. He also shares advice on overnight charging while staying at hotels. If you're thinking of going on an adventure in your EV, you should check this out to gain some valuable insights into the experience. Listen to part one of the podcast at EV Parade, and part two at Teslarati. Oil companies paid federal income taxes of just 11.7 percent over the last five years, according to a new report from Taxpayers for Common Sense. Oil companies reported a pre-tax income of $133.3 billion, and paid just $15.6 billion in federal income taxes. Some of the smaller oil companies paid much less than average, or about 3.7 percent. Oil companies enjoy many tax provisions that aren't available to other taxpayers, and the companies are able to defer taxes year after year, without paying any interest on it. Read more in the press release from Americans United for Change below.

Weekly Recap: The divergent paths of Tesla and Fisker

There's no doubt that Tesla is downshifting while Fisker has been grinding its gears. But it wasn't always that way.
In the wake of Tesla's recent success, it's easy to forget that there were once two California electric carmakers with bright futures.

Figuring out exactly how much it costs to charge Tesla Model S

Is the Tesla Model S an electricity guzzler? One driver trying to answer that question says it does gobble down more juice than previously thought, but it's not time to make Hummer jokes just yet. First, the goal: Tesla's claims that properly set up home-charging stations can get about a 91-percent efficiency rate. Rob M. from Teslarati has been diligently tracking electricity used by his home charging station – made up of a NEMA 14-50 outlet that was professionally installed and Tesla's Universal Mobile Connector (UMC) – since June, as we reported here. The results for the month that ended July 21 revealed that the Model S was taking in about 82 percent of the electricity it was pulling from the system, indicating an 18-percent loss of electricity. Most EVs are thought to charge at an 88 to 90-percent efficiency rate. The downside to his results? About $26 more per month in electricity costs than previously estimated on about 2,400 miles worth of driving. There is a positive upshot, though: his monthly fuel savings totaled about $334 compared to driving an internal combustion engine vehicle. These early results are intriguing, and make us wonder... Is anyone else checking in on their Model S charging efficiency?

Edmunds' long-term Tesla Model S has been wonderful, woeful

We generally don't report on other outlets' long-term model tests, but Edmunds just completed a 17-month ownership experience with a 2013 Tesla Model S. It's just too interesting not to share.
The site bought a 2013 Model S Performance model for the added range of its 85-kilowatt-hour battery and tossed on a good variety of options for a total price of $105,005, including a wall charger. In terms of driving the electric hatchback, the folks there seemed to love it. There were a few minor gripes, but for the most part it offered sufficient driving range, plenty of space and generally good quality.
However, the ownership experience was hardly flawless. The journalists there were never quite able to hit the Model S' promised range of 265 miles, with a best real-world result of 230.4 miles during their ownership. Also, while they had it, the Model S had a rash of unscheduled trips for service - seven times - and their Tesla left them stranded by the side of the road once.

Tesla delivers 7,579 Model S EVs in Q2, maybe picks Reno, NV for Gigafactory

When it comes to describing its situation, not even Bob Ross could paint a prettier picture than Tesla Motors. The California automaker has had a good few months and announced today that it delivered 7,579 Model S EVs in the second quarter of 2014. That's the most the company has ever delivered in a three-month period, reflecting an expanded market that now spans new countries in Asia and Europe. Tesla also built 8,763 vehicles in that time frame, another record, thanks to getting more cells from battery supplier Panasonic, and says it remains "on track for more than 35,000 deliveries in 2014." Alongside the earlier announcement about the official Gigafactory announcement with Panasonic, the automaker also said today that it has broken ground on a "potential" location in Reno, NV, – validating earlier speculation – while it is still looking at locations in Arizona, California, New Mexico and Texas. Work at the site has mostly stopped for now, however, as the company doesn't want to begin pouring cement until state incentives are in place and a "compelling deal for all parties" has been struck. The ball in Nevada, according to CEO Elon Musk, is now in the hands of the state's governor and legislature. The 7,579 vehicles delivered last quarter continue an upward-moving trend line. In all of 2012, Tesla sold 2,650 Model S EVs. For 2013, the company delivered 4,900 vehicles in Q1, 5,150 in Q2, 5,500 in Q3 and 6,892 in Q4. In 2014, Tesla sold 7,535 Model S EVs in Q1. Add in the 7,579 from Q2 this year, and you've got 15,100 or so, meaning that Tesla needs the next two quarters to average out at around 10,000 each in order to hit the 35,000-vehicle goal. Tesla expects 2015 to be even better, saying that the rate at which its expanding means that its, "annualized delivery rate should exceed 100,000 units by the end of next year." In other words, deliveries for Q4 2015 should be around 25,000 EVs. A few other tidbits from the shareholder letter and today's conference call: Tesla had a loss of $62 million last quarter. The company's Fremont, CA factory is being upgraded to make the Model S and X on the same line and will be up and running next week. Speaking of next week, the first operational Model X Alpha prototypes should be ready by next week. Tesla expects North America to continue to contribute strong demand for its EVs, despite the Model S being available here for several years now.

Autoblog editors come clean about their controversial automotive beliefs

We all have controversial opinions. Be it whether you think the Nissan Juke is actually pretty attractive, manual transmissions aren't always better, or you honestly didn't hate the Pontiac Aztek, we all harbor some persuasion, be it big or small, for which we catch copious flak upon expression.
In recognizing that all of us here at Autoblog harbor at least one viewpoint that stubbornly goes against the grain of popular opinion among auto enthusiasts, we've decided to come clean with them right here, proudly speaking our minds in a mature, structured manner - a striking contrast to how these things tend to come up while debated in the office.
We'd also like to invite you to share your unpopular and controversial opinions with us and the Autoblog faithful down in Comments. Don't be ashamed - this is a safe place.

Tesla selling like gangbusters in China

"Will it play in Peoria?" asks the age-old question about how Broadway shows would be received in Middle America. Well, apparently Tesla Motors plays well in Beijing. It's part of Tesla chief Elon Musk's grand plan, of course. The California-based maker of the battery-electric Model S has delivered about 1,000 of the vehicles in China since shipments started there in April, Bloomberg News says, citing Dougherty & Co. analyst Andrea James, Barclays Plc analyst Brian Johnson and Wedbush Securities analyst Craig Irwin. Tesla also started shipping its first right-had drive Model S sedans to the UK in June. It is estimated that all those deliveries helped push Tesla's second-quarter global vehicle deliveries close to the 7,550 mark, which is more than the company forecast and would set a new quarterly record (Tesla's second-quarter results will be announced later today). It would also mark about a 45 percent jump from Tesla's 2Q sales a year ago. The Model S is priced at about $120,000 US in China (the culprits include the top-of-the-line battery pack as standard equipment and steep taxes that the government charges on vehicle imports) but that hasn't swayed status-conscious buyers from footing the bill, apparently. Tesla declined to comment on the China sales estimate when contacted by AutoblogGreen but we may learn more later today.

Tesla, Panasonic officially partner up for Gigafactory

The first of perhaps 'hundreds' of gigafactories is now one step closer to reality: Tesla and Panasonic have announced their official agreement to work together on the gigafactory. The two companies have worked together for many years on electric vehicles, but this new deal takes the partnership to a whole new level. The basic gist, since the agreement itself has not been released, is that Tesla will take care of the exterior (the "land, buildings and utilities") while Panasonic will pay for the machines inside in order to, "manufacture and supply cylindrical lithium-ion cells" that Tesla will then use to, you know, build battery packs. Panasonic's machines will take up half the space while a network of as-yet unnamed suppliers will be involved in the other half, according to the press release announcing the deal. Read it below. There's been lots of speculation as to where the Gigafactory will be built, but the exact location probably won't be revealed until later this year, so don't expect any battery packs from the Gigafactory to be coming any time soon. That's why Panasonic is still going to be building Tesla cells in Japan for the time being. As previously announced, the Gigafactory is expected to make batteries for around 500,000 EVs a year as well as more for stationary storage needs. That means 35 GWh worth of cells and 50 GWh worth of packs each year by 2020. We expect more information to trickle out today along with Tesla's quarterly earnings. Panasonic and Tesla Sign Agreement for the Gigafactory Thursday, July 31, 2014 OSAKA, Japan / PALO ALTO, USA, July 31, 2014 – Panasonic Corporation and Tesla Motors, Inc. have signed an agreement that lays out their cooperation on the construction of a large-scale battery manufacturing plant in the United States, known as the Gigafactory. According to the agreement, Tesla will prepare, provide and manage the land, buildings and utilities. Panasonic will manufacture and supply cylindrical lithium-ion cells and invest in the associated equipment, machinery, and other manufacturing tools based on their mutual approval. A network of supplier partners is planned to produce the required precursor materials. Tesla will take the cells and other components to assemble battery modules and packs. To meet the projected demand for cells, Tesla will continue to purchase battery cells produced in Panasonic's factories in Japan.

Elon Musk to get spot on The Simpsons

It's hard to believe that The Simpsons is moving into its 26th season, but there's good news for auto enthusiasts, especially of the EV variety. The show's executive producer, Al Jean, confirmed on Twitter that Tesla Motors CEO Elon Musk would have a guest spot on the show in the upcoming season. Even better, it sounds like a pretty significant role.
Elon Musk in ep 1/11 and not a "kiss ass" celebrity guest star turn: Burns tries to kill him, and we reveal Musk's master password.

- Al Jean (@AlJean) July 29, 2014