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Tesla's new $408 per month business lease deal for Model S reminds us of last 'revolutionay' deal

Almost exactly a year ago, Tesla Motors announced what it called a "revolutionary" lease deal for the Model S. Since the electric automaker used some unusual assumptions in its calculations to get to a headline-worthy $500-a-month "true cost of ownership," the company had to quickly change its tune. Some of the same assumptions are back in a business lease deal from new subsidiary, Tesla Finance, for $408 a month (sort of) that was announced today. Tesla is touting the easy-to-understand lease agreement, which takes all of three pages and is "written in plain language." The agreement can also be signed digitally on the car's touchscreen when the car arrives. That, plus the low cost, is the good news. The business lease program is currently only available in ten states. The estimated effective cost of $408 a month sure sounds great but, just as with the first consumer lease plan for the Model S, there are a lot of caveats to be aware of. For one thing, the actual monthly payment is $1,012, well over twice the $408 number. Tesla estimates that you'll save $261 a month in gasoline costs and $343 a month in business tax benefits (with Tesla calculating a 40 percent effective tax rate and 70 percent business use). Those gas savings, "are calculated assuming $0.11 per kilowatt hour compared to paying $4.90 per gallon for premium gasoline with a fuel efficiency of 20 miles per gallon," so if your business already runs a fleet of Toyota Priuses, you can forget the $408 number. Oh, and the business lease program is currently only available in ten states - CA, CO, CT, FL, IL, MA, MD, NY, TX, and WA. Yes, that list includes Texas, where you can't officially buy a Model S. Tesla spokeswoman Shanna Hendriks told AutoblogGreen that the company has a lessor's license in the state of Texas, which allows it to offer the business leasing deal there. The dealership license, which the company can't get in Texas, is the thing that is preventing sales. No matter which of the ten business lease states you're in, the first vehicles under this program have an estimated delivery date of June 2014. Read more below. Tesla Business Leasing By The Tesla Motors Team April 8, 2014 A year ago, Tesla introduced a Resale Value Guarantee that gives customers the option to return their Model S after three years for a known value.

'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.

Tesla breaks 28-year-old monthly sales record in Norway

Someone may want to try to translate "Gigafactory this!" into Norwegian. Tesla Motors just set the all-time monthly sales record for a single model in Norway, The Wall Street Journal says, citing Norwegian transportation officials. And that's for any type of model, gas-powered or not. The California-based electric-vehicle maker, which is planning a massive Gigafactory battery plant in the US as it prepares to unveil a lower-priced model, sold 1,493 Model S sedans in Norway last month. The sales total more than doubled the No. 2 selling Volkswagen Golf (624 units) and beat a 28-year-old monthly sales record set by the Ford Sierra (1,454 vehicles). And March marked the second straight month an electric vehicle took Norway's best-selling crown, which was won by Nissan for its Leaf in February. That's heady stuff, and it gets headier when you factor in Norway's population of only about 5.1 million people. That means that on a per-capita basis, that'd be like Tesla selling about 94,000 Model S vehicles in a month in the US. By comparison, Ford sold "only" about 71,000 of its best-selling F-Series trucks last month. With cheap and abundant hydroelectric power, Norway heaps lots of incentives for its EV buyers, including perks such as free parking, an extensive recharging network, use of bus lanes and free ferries and road tolls. With EV subsidies tallied at about $8,000 per vehicle, the country reportedly may reach its limit of providing incentives for 50,000 EVs by mid-2015, or about two-and-a-half years ahead of schedule. And for that, Norwegians, blame Tesla.

Tesla Motors appeals sales ban in New Jersey

Resistance to the way Tesla Motors sells its cars - directly to the consumer, with no negotiating and no dealer middleman - comes mostly from dealership organizations around the country. It's also illegal in some states, thanks to laws ushered into place with help from dealers. The reaction to Tesla's new style of business is led by what Steve Blank calls, "rent seekers" or "landlords of the status-quo." Tesla itself isn't into that sort of name-calling, but it will take to the courts when necessary. Case in point, New Jersey, where the legislature voted in mid-March to stop Tesla stores from selling cars starting April 1. This week, the New Jersey Motor Vehicle Commission (MVC) extended a deadline until April 15, a move that could save the EV automaker's future in the state. Tesla has now filed with the state Superior Court asking that the ruling be appealed. Tesla says that the MVC is taking its orders from the state dealers association, the New Jersey Coalition of Automotive Retailers. Tesla also made an argument against the traditional gasoline vehicle dealers that we've heard before. Here is some of the text of the appeal: Franchise dealers have an inherent conflict of interest in selling electric vehicles. In order to do so effectively, they would need to enthusiastically tout the reasons why electric vehicles are superior to gasoline vehicles. This is not something that they are going to do since gasoline vehicles represent virtually all of their revenue. Dealers also depend on quick, high volume sales - incentivized by substantial sales commissions - in large, out-of-the-way facilities that contain large inventories of new and used cars. By contrast, Tesla sells its cars in relatively small showrooms, often located in shopping malls (like the two stores in New Jersey) that invite people unfamiliar with electric cars to drop in. You can read the full appeal in the PDF below. The TSLA stock price rose after the appeal was filed, but has since leveled out. Tesla vs. New Jersey Auto Dealers Superior Court Appeal by AutoblogGreen This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Bill O'Reilly imploring everyone to get behind Tesla

Bill O'Reilly is a fan of Tesla. Calling the California car company "the one concrete thing that all responsible people should be rooting for," the popular Fox Network host is asking everyone to ignore the green lobby, the politics of global warming and dim opinions of alternative energy, declaring, "If Tesla can make a clean car, the entire automotive industry can. Therefore the air would be cleaner everywhere, and our wallets thicker. So let's get on it, people."
O'Reilly's Tesla-backing Talking Points Commentary came after 60 Minutes' recent piece on the electric car maker, but was occasioned by a new UN report on global warming. As usual, he isn't shy about sharing his real feelings, and you'll find a lot more of them where that came from in the two-minute video below.

Tesla gigafactory will source materials from North America to keep things green

It's one thing for the Big 3 to get tires and engine parts from cities along the US Rust Belt. It's another thing altogether, though, for Tesla Motors to source far more esoteric materials like graphite, cobalt and lithium from Canada and the northern US. But that's what the California-based company has in mind, and it's all in the name of environmental friendliness and cost, Bloomberg News says. Tesla is looking to bring its raw-material sourcing to this side of the Pond by the time it opens its massive gigafactory that may produce as many as 500,000 vehicles annually, Bloomberg says, citing Tesla spokeswoman Liz Jarvis-Shean. And while the raw-material price may be higher (and driven up further with the additional demand from Tesla), those costs may be offset by the fact that there will be far less transportation and logistics involved. "When all costs are considered, it should be cheaper to source most materials from as nearby as possible" - Tesla's Liz Jarvis-Shean "Transportation impacts are very significant on the heaviest raw materials if they need to be moved from halfway around the world," Jarvis-Shean wrote in an e-mail to AutoblogGreen, adding that there will be additional cost savings from reduced shipping time and less transit-related working capital requirements. "In the long term, when all costs are considered, it should be cheaper to source most materials from as nearby as possible." There are geopolitical issues as well. For instance, China is shutting down some of its graphite mines because of pollution issues, while much of the world's cobalt comes from war-torn Congo, though Tesla says it gets its cobalt from the Philippines. Most of the graphite in Tesla's Model S is of the synthetic variety from Japan and Europe. Of course, Tesla's still trying to figure out where to put its gigafactory, and has said it will be in one of four states: Arizona, Nevada, New Mexico or Texas. The factory will cost an estimated $5 billion and may support 6,500 jobs, so state governments are already starting to campaign to be the automaker's future production home. Regardless, Jarvis-Shean estimated that the sheer economies of scale from the gigafactory will reduce battery-pack costs per kilowatt hour for the company's "mass market" model (sometimes referred to as the Model E) by 30 percent after a full year of production.

Tesla behind lobbying push to ditch side mirrors

The National Highway Traffic Safety Administration passed a law yesterday forcing new cars in the US to come with standard backup cameras by May 2018, and if Tesla has its way, this could be just the beginning of changing how motorists see out of their vehicles. The electric car manufacturer has teamed up with the 12-member Alliance of Automobile Manufacturers lobbying group (which represents major companies like General Motors, Toyota and Volkswagen) and filed a petition on Monday asking NHTSA for permission to replace sideview mirrors with cameras.
Currently, side mirrors are required on cars in the US, and they can't legally be replaced by camera technologies filling a similar role. The petitioners' chief argument is that sideview mirrors add drag and decrease fuel economy. According to Automotive News, Tesla founder Elon Musk has been lobbying for laws that allow automakers to use sideview camera systems exclusively for the last two years, but claims it's nearly impossible for a single person to change the regulations.
Sideview cameras have been on concept cars for decades, but augmenting external visibility with cameras and sensors has been a growing trend in production automotive technology over the last five years or so. Nissan uses its Around View Monitor to supplement mirrors with a bird's eye composite view of the vehicle during tight maneuvers, and the LaneWatch system from Honda displays a rear-facing passenger-side view to eliminate blind spots during lane changes. Tesla's early Model X concept (pictured above) had small pods on the side with cameras mounted in them, but more recent versions have switched to conventional mirrors.

60 Minutes can't even get Tesla Model S EV sound right

60 Minutes has come under fire for screwing up important bits of news recently, but an error in Sunday's profile of Tesla Motors and CEO Elon Musk is completely perplexing. 60 Minutes has said it was an "audio editing error," but we're wondering how you manage to edit in internal combustion engine and transmission sounds into a video specifically on electric vehicles. The stock footage that 60 Minutes used is official Tesla material, but the videos on the company's YouTube page are devoid of engine sounds. 60 Minutes editors added the noises, which were noticed by eagle-eared (is that a thing?) viewers who know that one of the appeals of an EV is the silent ride. In other parts of the interview, Musk says that a 400-mile battery is possible today but it would be too expensive, talks about how the DOE loan was helpful but was not necessary to keep Tesla alive and his attitude that, "If something's important enough, you should try, even if the probable outcome is failure." This isn't the first time television producers have made a Tesla EV look bad. This isn't the first time television producers have made a Tesla EV look bad. The most famous case was when the BBC show Top Gear pretended to run out of juice in a Roadster. Tesla sued for libel in 2011, but the case was dismissed in 2013. Tesla declined to comment to AutoblogGreen on the situation and 60 Minutes told Fox News it will update the videos online. Even when the sound is gone, the profile of the man and the company remains interesting. You can watch it below. As of this writing, the engine sounds still can be heard at around the 40-second mark in the shorter video we've embedded below (the top one) and you can see the whole profile in the second video. The video meant to be presented here is no longer available. Sorry for the inconvenience. The video meant to be presented here is no longer available. Sorry for the inconvenience.

New Jersey will let Tesla continue selling EVs until April 15

Tesla sales in New Jersey were supposed to end today, following the state legislature vote a few weeks ago to pull Tesla's sales license there. At the eleventh hour, though, Gov. Chris Christie's administration has extended the deadline to April 15. The specifics of the situation are that the New Jersey Motor Vehicle Commission (MVC) is going to give new car dealers until the middle of the month to submit their franchise agreement (which, of course, Tesla stores don't have). That means, for now, it's business as usual The two-week extension could keep Tesla alive in the Garden State. While it's only a two-week extension, it could be enough to keep the California automaker alive in the Garden State. This is because state assemblyman Tim Eustace (a Democrat and EV driver) submitted a bill the other day that would allow Tesla to sell cars directly to customers in New Jersey. One interesting component of Eustace's bill is that it only applies to zero-emission vehicles as long as they make up less than four percent of all the new cars sold in the state. Eustace told NJ.com that this bill might be fast-tracked into law because it has leadership support. Jim Appleton, the president of the New Jersey Coalition of Automotive Retailer (the force behind the anti-Tesla movement), said, "to the extent that there is legislation that would allow an all-zero emission vehicle automaker to enter the market for a period of time without franchises, before they eventually convert to a franchise system, it makes sense." You can read the proposed bill here. The MVC gave Tesla a license to sell cars in 2012 and Tesla now operates two stores in New Jersey, one in the Garden State Plaza in Paramus and the other in Short Hills.

Tesla Model S prone to password hacking?

As more and more technology gets crammed into our automobiles, replacing once simple mechanical systems with electronics and other such wizardry, hackers and people much smarter than ourselves are finding more and more ways to exploit them. The latest such case comes from a man named Nitesh Dhanjani, who has reportedly managed to send wireless codes over the internet to the Tesla Model S that can unlock the car's doors.
According to an article from Reuters, the six-digit passcode required to gain entry into Tesla's electric sedan isn't the only flaw in the car's security Dhanjani - himself a Tesla Model S owner - has found. That said, the car's electronic key fob is still required to start and drive the vehicle, meaning thieves would only have the ability to steal things left inside the car and wouldn't actually be able to operate it or drive it away.
"It's a big issue where a $100,000 car should be relying on a six-character static password," said Dhanjani, who has shared his findings with Tesla.