Tesla Model 3 Mid Range, page #29

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Why dealerships should embrace Tesla's direct sales competition

National and regional dealership associations have it in for Tesla Motors. For the past few years the organizations have been pushing lawmakers – to whom, it bears mentioning, they have made generous financial contributions – for legislation that would make it difficult for the Californian automaker to continue with its direct-to-consumer, company-store sales model. This is, of course, in addition to laws already on the books which make it illegal for manufacturers engaged with existing independent dealership networks to operate their own retail locations. As you may have heard, the dealers have recently had success in New Jersey and, previously, in Texas. Arizona passed a law in 2000 that forbids manufacturers from obtaining a dealer's license, completing the triad of states which now restrict sales from Tesla stores. Meanwhile, the company has had some amount of success pushing back against these efforts in Massachusetts, Ohio, New York and North Carolina. It is a constant battle, though, even in most of those locales. Direct sales are key to Tesla's success. Direct sales are key to Tesla's success. It's a big part of how the company managed to move from a simple start up to something of an American automotive phenomenon. While CEO Elon Musk likes to say that it uses this method because selling an electric car would somehow be a conflict of interest for dealerships that also sell conventionally- powered vehicles, there is really a lot more to it than that, and it's wrapped around the customer experience. You can sit at home in your pajamas and configure exactly which color and options you want for your Model S over the Internet, send an electronic payment and have that exact car arrive at your door some weeks later. The company stores are an outgrowth of that concept, but allow you to see physical samples of the colors and materials involved, take a test drive and interface with a friendly human who can immediately answer any questions you might have, as well as facilitate financial transactions. You still get the exact car that you order. Having company-owned stores lets Tesla keep complete control of its entire retail network and therefore, the buying experience. Staff aren't paid by commission and are encouraged to be truly customer-focused.

Wall Street still irrationally exuberant over Tesla shares

In a world where electric cars are far from the norm, it seems odd to us laypeople that you can't buy a share of Tesla stock (ticker symbol TSLA) for less than $230. But a research note issued Monday from Goldman Sach's respected team of auto industry analysts (seen in PDF form in our gallery) has added fuel to the irrational exuberance fire, guaranteeing that Tesla's stocks should hover at these seemingly unreasonable prices for some time.
Goldman Sachs analyst Patrick Archambault compared Tesla CEO Elon Musk to Apple's Steve Jobs, saying the Model S is a lot like the iPhone. The major difference is that it will take a lot longer for Tesla's electric cars to make a sizable dent in the auto industry, Archambault said, than it took for the iPhone to take over the smart phone world. If Tesla rolls out a non-luxury car in the next few years as is rumored, Archambault predicts the company could be selling 500,000 electric cars a year by 2022 or 2023. Based on those projections, the Goldman Sachs analysts says a fair price for Tesla's stock right now is about $200 a share.
Which, in the upside-down world of Wall Street, means the current share price of around $238 is nearly $40 overvalued. But that hasn't stopped traders from pushing up the price of Tesla's stock today between $3 and $4 a share. Over at Oilprice.com (subscription), contributor Martin Tiller on Friday was already sounding the alarm bells, saying Tesla share's are overpriced, despite the promising technology.

Nissan pokes fun at Tesla's New Jersey woes, then deletes Tweet

Ever have one of those moments when you release something out onto Twitter, only to think better of it a little while later and reach for that garbage can icon? If so, you are not alone. In fact, you're in the company of a certain Japanese automaker, who recently joined the ranks of those who've suffered an embarrassing bout of tweetus deletus. The Nissan Leaf social media team apparently thought it would be amusing to take a light poke at Tesla Motors and its New Jersey dealer fight woes on its Twitter feed and put together the cheeky graphic which you see above. It was originally published on the micro-blogging network accompanied by the text, "It's okay #NewJersey, you can still #GoElectric with the #NissanLEAF #EV." Funny, right? Not to everyone. The image attracted a bit of mild criticism which, to their credit, Nissan responded to saying, "It's all in #EV love." Soon, however, the original image disappeared from the @NissanLEAF feed. Luckily, we saved a copy for your edification. Rob Robinson, senior specialist of social communications for Nissan, told AutoblogGreen that the Leaf Twitter account is run by an agency, and that the tweet in question, "Was not a tweet that was reviewed or approved by Nissan. We saw it and asked them to take it down." As for the reasoning, Robinson said that, "We thought it was a discussion we didn't need to be weighing in on." While we can see the Nissan point of view, we also appreciate the attempt at being irreverent. Anything to break up the monotony of the stale toast the account usually offers up – "What would you nickname your Nissan Leaf if it was Ocean Blue?" which is the last undeleted Tweet available on the feed, as of this writing. We actually applaud the intention of the Tesla post. It all makes us wonder, though, if the social media team over there isn't in need of a little input on how they might improve its outreach. Since we know our readers are not shy in offering suggestions, we ask you to leave your thoughts and ideas for them in the Comments.

Elon Musk likens NJ vote to mafia tactics

When the New Jersey Motor Vehicle Commission decided on Tuesday to block Tesla Motors from selling cars from its stores in the Garden State, it may have inadvertently kicked a hornet's nest. Perhaps they thought no one was looking. Maybe they imagined no one would really care. If so, they were wrong. People do care, and there's some stinging criticism going on. One individual in particular cares an awful lot. As co-founder and CEO of Tesla, Elon Musk takes extreme umbrage when his baby is subject to what he feels is unfair treatment. Whether it be from the media or from politically-manipulative foes like automobile dealer's associations. Never one to hold back, the entrepreneur has penned a piece directly to the people of New Jersey, making his case for manufacturer-to-consumer sales. It also explains how the company will operate there as of April 1st when the new rules take effect. He also pointedly questions the dealers association's reasoning for asking for the change. And we quote, The rationale given for the regulation change that requires auto companies to sell through dealers is that it ensures "consumer protection". If you believe this, Gov. Christie has a bridge closure he wants to sell you! Unless they are referring to the mafia version of "protection", this is obviously untrue. The uproar is not limited to Tesla insiders, or even the automaker's many fans. Apparently, people still care whether or not their government reeks of corruption, and in this case the smell wafting from New Jersey has attracted a lot of people's attention. A White House petition asking the Obama administration to "Inform New Jersey that markets should be free for Tesla Motors and for everyone" has attracted the attention of over 97,000 signatures 2,615 signatures in a few short days. The petition, though not legally binding, and the outrage in comments following articles on the issue ought to be a warning bell to politicians who trumpet the importance of the free market (or environmental concerns, as the case may be), and then act seemingly contrary to those convictions. For now, Tesla is said to be mulling a legal remedy, but we would not be surprised to see a Political Action Committee (PAC) arise in the future that could take the company's concerns directly to voters. You can read Musk's letter, "To the People of New Jersey" here. If you're so inclined, you can add your name to the petition here. As always, feel free to let us know your take in the Comments.

New Jersey votes against Tesla, stores may close April 1

Doesn't New Jersey Gov. Chris Christie have enough people mad at him already? Apparently not, since more than a few folks who like Tesla Motors are ready to get riled up. The governor is already embattled via his office's alleged role in a scandal involving politically-motivated lane shut-downs to the George Washington Bridge. And with him now deciding to let the state's motor-vehicle commission rule on allowing for Tesla to own its dealers, Tesla has likely lost that battle and may have to shutter its two New Jersey factory-owned stores by April 1, Automotive News says. Earlier this week, Tesla accused the governor on going back on his word after the company said it believed that the ruling would go before state legislature. Of course, the governor's office disagreed with that characterization. Kevin Roberts, a spokesman for Gov. Christie, sent a statement to AutoblogGreen that said: Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation and Tesla has been aware of this position since the beginning. Tesla strenuously disagrees with that characterization, and Diarmuid O'Connell, Tesla's vice president of business development, told Bloomberg that, "any suggestion that Tesla was told 'since the beginning' about any problem with its ability to be licensed there is false." Representatives for New Jersey auto dealers say the ruling merely upholds current regulations and forces everyone to operate under the same mandate. Tesla first received approval to operate in New Jersey in the fall of 2012. Tesla has won court decisions regarding dealer allowances in Massachusetts and New York, though most notably lost one in Texas (the company also can't sell cars direct to customers in Arizona). In the past, Tesla CEO Elon Musk has said he'd take the matter to the federal government, and we wouldn't be surprised to hear that sort of rallying cry come up again soon.

Tesla not talking about odd Model S prototype spotted in CA [w/video]

It's not a UFO, but this UDO (unidentified driving object) is causing almost as much of a stir on Reddit, Tesla Motors Club and other sites as a visit from Sanyassan marauders. It's tough to see in the video still above, but what we're looking at here is a Tesla Model S with a big ole something on top. That something (and you can see it a bit better in the video below or get a better view in a daylight picture over on Teslarati or even more at TMC) makes the car a mystery. Speculation is basically centered in three camps: either it's a weight thing, to allow for Tesla to test out the all-wheel drive system that is coming in the Model X and also to the Model S; or maybe it's test equipment for autonomous drive experiments. The third likely guess is that the blocky item is simply meant to simulate the weight and drag of a Model X and allow Tesla engineers the chance to test the suspension and handling of the upcoming falcon-winged crossover. Officially, there's no clarification on what, exactly, we're looking at. We've asked Tesla for a comment (and we're not the only ones), but have not heard anything back. If we do, we will of course let you know. Until then, we'll join Teslarati in calling this the Model S/X and wait to see what information others can scrape together. What's your guess? This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. )

Tesla poaches Renault-Nissan communications boss Sproule

Need another sign that Tesla is growing into a force to be reckoned with? Bloomberg reports it has just snagged high-profile communications boss Simon Sproule from Renault-Nissan to become the EV maker's vice president of communications and marketing.
Sproule is an industry veteran, having spent 20 years at Nissan (where he grew to become CEO Carlos Ghosn's right-hand man). In addition, he logged stints at Ford, Jaguar (when it was still a Blue Oval-owned brand) and Microsoft. Despite all that experience, Sproule is still young, at just 45 years of age, as Bloomberg points out, yet he's held positions in the US, Japan and France over the years.
This is all good news for Tesla, which is in need of a strong spokesman outside of company CEO Elon Musk. It's been battling with the state of New Jersey and its governor, Chris Christie, over direct sales in the Garden State.

Fan-made Tesla commercial imagines a Model S that's out of this world

When you're a kid, anything is possible. With a bit of crayon, cardboard boxes can become helmets, or even space ships. All it takes is a bit of imagination. Replace that crude packaging with something as refined a Tesla Model S and that fantasy world can kick into overdrive. That's the premise behind a new 'ad' featuring Mace Coronel and his dad Marc, and co-starring our favorite all-electric road rocket. Although not commissioned by Tesla Motors (which did tweet about it), the minute-long spot is a great commercial for the company and its battery-powered sedan. It also serves as a excellent advertisement for Everdream Pictures, the minds behind the fancy editing and camera work, as it aptly demonstrates that outfit's "Imagination in Motion" tagline. It's not the first promotional film put together by fans of the sedan – see also: Gallons of Light – but this footage certainly captured our imaginations. Scroll below to see if you are equally as impressed. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. )

In-demand BMW i8 deliveries start in June, and it's more efficient than we thought

Memo to Elon Musk: objects in the rear-view mirror may be closer than they appear. In this case, it's a couple of plug-in BMWs. And they represent the closest thing to a true competitor for Musk and the Tesla Motors electric vehicles. The German automaker re-confirmed that demand for its upcoming i8 plug-in hybrid will exceed the initial supply batch, though BMW didn't release any specific numbers, Reuters says. BMW will start production next month with deliveries commencing in June for the 362-horsepower i8. The news is consistent with a November estimate from BMW that indicated that the first year of i8s were essentially spoken for in advance. We learned in late January that the number of i3 battery-electric vehicles imported to the US won't meet demand during that vehicle's first year of sales either. Here's the thing: all these people were interested in the i8 when BMW said the car got the equivalent of 94 miles per gallon. Turns out, those calculations were a bit off. Reuters also notes that the new numbers show the i8 gets 112 MPGe. That's on the lenient European cycle, but if anyone was holding out for an i8 with triple-figure fuel economy, your time (to get on the waiting list) has come.Motley Fool proposed late last month that BMW is positioned to be Tesla's only real competition when it comes to high-performance plug-in vehicles. The reasoning was that the BMW plug-ins, like the Teslas, are being built from scratch and don't just have EV powertrains dropped into existing vehicle platforms. Whether or not the competition is truly a two-team race is something we're not sure is completely decided yet, but we know it'll be fun to watch unfold either way. Want proof? Check out Autoblog's enjoyable First Drive of the i8 here.

New Jersey Becomes Third State To Ban Tesla Sales

State motor vehicle officials have approved a regulation that would require all new car dealers to obtain franchise agreements to receive state licenses, a move critics say will hurt the electric-car industry's attempts to expand. The regulation, adopted Tuesday by the state's Motor Vehicle Commission by a 6-0 vote, effectively prohibits companies from using a direct-sales model, which cuts out the middleman and takes vehicles directly to customers through smaller retail establishments. It will take effect April 1. The regulation was supported by the New Jersey Coalition of Automotive Retailers, which has noted that state law has long required automakers to sell their vehicles through dealers. But Palo Alto, Calif.-based Tesla Motors, one of the electric-car companies that would be affected by it, called it "an affront to the very concept of a free market." Tesla said in a statement posted on its corporate website that it has been "working constructively" with the commission and Republican Gov. Chris Christie's administration since last year to delay the proposal so it could be handled through "a fair process" in the state Legislature. The company said the commission and the Christie administration went "beyond their authority to implement the state's laws at the behest of a special interest group looking to protect its monopoly at the expense of New Jersey consumers." Administration officials disputed Tesla's claims. "Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law," spokesman Kevin Roberts said. "This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation, and Tesla has been aware of this position since the beginning." Tesla has two retail locations in New Jersey and has planned to expand in the state in an effort to sell its electric cars, which retail for around $60,000 before incentives. Related Gallery Electric Cars And Hybrids Don't Have To Be Frumpy By the Numbers Tesla Car Dealers