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Is Tesla quietly sitting on 3,000 cars?

Tesla's 2014 third quarter financial report mixed some positive news with gloomy messages. On one hand, the electric carmaker posted its best quarter ever in terms of deliveries, including its best single day with 907 EVs delivered. The company also announced expanded production to get even more vehicles out the door by the end of 2015. However, the Model X got delayed yet again and higher prices in Europe were mulled. Dousing the results with a bit more cold water, a Merrill Lynch investor letter claims there's more to be pessimistic about the business than meets the eye.
The Daily Kanban, quoting research meant for Merrill Lynch clients, claims that Tesla had "approximately 3K vehicles stocked in inventory or in transit" at the end of the Q3. That's a fairly large number considering that the company reports selling 7,785 units for the whole quarter. The statement is also surprising because the automaker has a reputation for keeping excess supply low, and there are allegedly waiting lists for Model S sedans. CEO Elon Musk maintains that the automaker has a problem being able to keep up with high demand, as well.
According to Daily Kanban, the letter further states, "China is proving to be more challenging for Tesla to penetrate than expected." The automaker does not break out sales by region in its Q3 financials to check this assertion, however, the company does report the recently opened store in Shenzhen is one of its top-grossing stores worldwide and that there are now 23 Supercharger locations in 10 Chinese cities.

Musk says Tesla 'definitely' won't recall Model S

Since early October, three Tesla Model S sedans have caught on fire, gained viral media coverage and received intense scrutiny, but Tesla's CEO and largest shareholder, Elon Musk, says "there's definitely not going to be a recall" of the Model S, Bloomberg reports. As of late October, the National Highway Traffic Safety administration (NHTSA) says it will not be launching a formal investigation into the Model S fire in Seattle, because there's no evidence to suggest that the fire was caused by a manufacturer defect and no government-mandated safety regulations were violated.
Though the fires are alarming, one must realize that hundreds of thousands of vehicle fires occur in the US every year. Electric Teslas, like any vehicle (including those with an internal combustion engine), are not immune to catching fire in certain situations. Here's Musk's take on the issue: "[The Model S] is about five times less likely to have a fire than an average gasoline car," he reportedly said Tuesday at the New York Times' DealBook conference in New York.
The first of the aforementioned fires occurred in Seattle and started in the battery pack after the Tesla hit a piece of road debris. The second fire occurred in Merida, Mexico, after the driver, who was speeding in his Model S, reportedly struck a raised pedestrian crossing, launched into the air and then crashed into a wall and tree. The third Model S ignition occurred after the driver ran over a tow hitch in Smyrna, Tenn., and - similar to the Seattle fire - damaged the undercarriage of the car where the battery is located.

Tesla to introduce all-wheel-drive Model S in 2014?

The Model X sport utility vehicle may not be the first all-wheel-drive Tesla to hit the market. According to The Verge, Tesla is working on an AWD version of its Model S sedan. Currently, the Model S is only available with rear-wheel drive, but sources in the know at Tesla reportedly have said that an AWD version could be released as early as 2014, which is the same year the SUV is expected to be launch.
There was no hint in yesterday's conference call or shareholder letter that an AWD Model S is in the mix. Furthermore, the company's attention currently is focused in other places, such as Europe, Japan and China. But, as The Verge points out, CEO Elon Musk made comments in the 2013 annual shareholder meeting on June 4 about an AWD chassis that would be released in 2014 or 2015 - without the context of the Model X. We have to wonder: were the SUV's drivetrain and chassis also developed with other vehicles in mind?
Our own Domenick Yoney from AutoblogGreen adds another peculiar twist to the Tesla story: "When I spoke to Dorian West, Director of Powertrain Hardware Engineering, at Refuel, I was given the strong impression that I shouldn't expect anything [on the AWD front from Tesla] until after the Model X comes out."