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Tesla curbs forecast due to Model S issues, losses total $864.9M

It ain't easy creating a brand-new automaker from scratch. The fact that Elon Musk and Tesla have actually been able to bring not one, but two cars to market is in itself quite impressive. That said, the road has not been without its bumps, and Tesla is feeling some of the setbacks that come with being a fledgling automaker.
To that end, Tesla has revealed that it expects $400 million to $440 million in full-year revenue, or roughly $160 million less than its prior 2012 revenue forecasts. In a Securities and Exchange Commission filing on Monday, the electric carmaker said "We have methodically increased our Model S production at a slower rate than we had earlier anticipated," leading to the company figuring they'll fall short of the $560 million to $600 million they originally forecasted. Tesla also revealed a net cumulative loss of $864.9 million through June 30 of this year - Tesla has yet to break even as an automaking entity, but it remains something of a startup, so the fact that it has lost money to this point shouldn't be a major surprise - building cars is expensive, and learning how to do so is even more expensive. Following the disclosure, Tesla shares fell about 8.5 percent this morning in trading.
Tesla cites delays in suppliers for its Model S production shortcomings. The California automaker says it is working with suppliers to speed up deliveries and internally, it is adding shifts and automation to its manufacturing processes. With little more than half of the 5,000-vehicle target expected to be built by year's end, Tesla says it is four to five weeks behind its delivery goals.

'King of Lemon Laws' Vince Megna files suit against Tesla Motors

Tesla Motors is already busy in the courts, filing a suit in New Jersey last week to appeal the direct-sales ban of its automobiles in that state. But now it's going to have to deal with the self-described "King of Lemon Laws," Vince Megna, in Wisconsin. Now that we think about it, this showdown was quite inevitable. In a video that is obviously part one of who knows how many (view it below), Menga sets up his argument against Tesla because the Model S of a client won't start. Then, he picks up a cardboard George Clooney hitchhiker and goes off to file suit in Milwaukee County Courthouse with an assistant with duct tape on her mouth and "WTF" on her shirt. Subtle, Megna is not. If that cardboard celebrity bit seems familiar to you, then perhaps you're thinking about the Justin Bieber standup that Megna used in his lemon lawsuit over the Fisker Karma. In fact, Megna is famous in the auto industry for fighting against automakers that he says make shoddy products. In this case, he claims Tesla sold a faulty Model S to a doctor in Franklin, WI. This doctor, Robert Montgomery, got his 2013 Signature Performance Model S in March 2013, and the car has been in the shop for more than 30 days since then. He has asked for his money back, but the automaker has apparently not responded. The nearest shop is in Chicago, so the car gets to ride in a flatbed back and forth, as you can see in the video below. Plus, of course, Megna's one-sided conversation with a fake George Clooney. Tesla told AutoblogGreen it does not comment on pending litigation. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Toyota's Lentz says fuel cells are the future, not EVs

Toyota is not bullish on EVs. That comes from the company's North American CEO, Jim Lentz, who said the company will focus not on electrification, but on continued hybridization with a long-term focus on hydrogen fuel cells.
Lentz questioned the long-range ability of EVs, saying that Toyota feels "there are better alternatives, such as hybrids and plug-in hybrids, and tomorrow with fuel cells." Lentz spoke about Toyota's focus on hydrogen following Forbes Brainstorm Green conference and barely a week after a battery deal between Tesla and Toyota ended, according to Automotive News.
That deal provided for 2,500 battery packs for the Rav4 EV. While valuable to Toyota, the deal "was never about open-ended volume," Lentz said. "It was time to either continue or stop. My personal feeling was that I would rather invest my dollars in fuel cell development than in another 2,500 EVs."