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Tesla halts production to prep for Model X

That darling of the electric car world, Tesla, is idling production at its factory in Fremont, CA, for the first time in order to expand the factory in preparation for its future Model X crossover. The $100-million renovation will add 25 robots and upgrades to the body shop and assembly line to support the new vehicle. Since it will be offering two models simultaneously, Tesla will need to be able to keep up with the pace of demand. "This represents the single biggest investment in the plant since we really started operations and enables us for higher volumes," said Tesla spokesperson Simon Sproule to Bloomberg. The new robots will be able to boost production by 25 percent and will allow the automaker to build the Model S and Model X on the same assembly line. There won't be too much downtime at the California plant, though. The upgrades will be finished within the next two weeks. With these factory updates, the Model X may finally get its electrically powered wheels on the road. The CUV has been delayed multiple times since its announcement. It was originally supposed to be on sale in early 2014, then later in the year, but now the latest news from Elon Musk places the crossover's launch in the second quarter of 2015. Until the Model X is on sale, the renovations should also provide a nice lift in Model S assembly. In the company's first quarter financial report, Tesla said that it expected the sedan's production rate to grow from about 700 cars per week to 1,000 per week by the end of the year, with the expectation of selling a total of 35,000 of them in 2014. That should help quell demand in new markets like the UK and expansion in Europe.

Tesla wants Massachusetts direct sales ruling to mean more

The approximately 8,300 square miles of Massachusetts may be a relative speck on the US map, but Tesla Motors is hoping a recent court decision there could have a big impact on potential sales and the legality of Tesla's distribution system throughout the rest of the country. Tesla, writes Automotive News, says that the reasoning behind a judge's decision to throw out a lawsuit against the company is broadly applicable. Now, the California-based automaker has New Jersey in its sights. Because Tesla doesn't have any existing distribution set-up in Massachusetts involving a third-party franchisee, the company isn't violating any statutes by opening a factory-owned dealership, the Massachusetts judge ruled. Tesla is saying that the judge's interpretation is applicable to other states such as New Jersey, which has outlawed Tesla's direct-to-consumer sales of its electric vehicles. And for that reason, the decision that forced Tesla to convert its New Jersey sales stores to Tesla galleries where sales are prohibited should be reversed. Of course, dealer representatives in New Jersey said the Massachusetts decision has no bearing in their state. Meanwhile, Texas, Arizona and Maryland are among other states where Tesla has been prohibited from selling vehicles direct because of existing dealership laws. This should get interesting.

Is BMW the only real competition to Tesla Motors?

Tesla Motors chief Elon Musk probably isn't losing a ton of sleep over the new plug-in efforts by the makers of the "Ultimate Driving Machine," but maybe he should. That's what the Motley Fool is saying, presenting the case that the California company's real competition will come from BMW. What about the plug-in efforts of General Motors or Ford? Musk can hit the snooze, Motley Fool says. Unlike automakers that are "jamming battery packs into the existing vehicle design," BMW has built its i3 battery-electric and i8 plug-in hybrid supercar from the ground up. Like Tesla, BMW puts its battery packs into the floor of its vehicles. Most importantly, the i3 - and especially the i8 - are real performers. While the i8 is about 40-percent more expensive than the Tesla, it matches the Model S's 0-60 mile per hour acceleration times and handily beats its top speed figures. Tesla sold about 6,900 vehicles during the last three months of 2013 and BMW had more than 10,000 i3 orders on the books by late November and the first year's allotment of i8s is already sold out. The German automaker has what the Fool calls an "outside chance" of selling more plug-in vehicles than Tesla by next year, but Tesla is gearing up its gigafactory to get ready to sell a half-million EVs in 2020, so the race is most certainly on. You can read more over on the Fool.