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Pennsylvania, Tesla approach five-store compromise [UPDATE]

In the Keystone State, the compromise number between zero and unlimited is five, apparently. Pennsylvania's Senate applied that math in an attempt to resolve the issue of allowing Tesla Motors to operate company-owned stores in the state. The senate this week unanimously voted for a bill that will allow Tesla's operations, but placed a limit on the number of stores at five. The bill will now go to the state's House for approval, according to Automotive News. Earlier this month, trade group the Alliance of Automobile Manufacturers went on record against the lack of limits on Tesla-owned stores in Pennsylvania. While the group was neutral on the issue of whether Tesla could work around the traditional third-party dealership network to sell its electric vehicles, the group said allowing Tesla to own an unlimited number of stores in the state created an unfair advantage for the California-based automaker. The trade group is now on board with bill as currently drafted because the store limit is similar to that of nearby states such as Ohio and New York. Tesla has one store in King of Prussia, Pennsylvania, with another slated for Devon. *UPDATE: Diarmuid O'Connell, Tesla's vice president of corporate and business development, wrote in an e-mail to AutoblogGreen that the company was "pleased" with the Pennsylvania's senate vote, and that the state's bill "serves the interests of Pennsylvania's consumers while enabling all parties, including lawmakers and auto dealers, to avoid unnecessary and potentially protracted conflict."

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.

Recharge Wrap-up: No Tesla Gigafactory deal with California, BMW i3 recalled

Before the Nevada announcement was hinted at, a deal to incentivize a Tesla Gigafactory in California fell through. Tesla was looking for around $500 million in incentives, which the California Governor's Office of Business and Economic Development was willing to offer in tax breaks along with making the permit and environmental processes easier. According to Senator Ted Gaines, there still remained "a gap between what Tesla wanted and what California was willing to offer," the contents of which were undisclosed. California could still be chosen for another of Tesla's battery plants, should those ever materialize. Read more at The Desert Sun. The California Air Resources Board (CARB) will consider allowing a bit of compliance flexibility to its Zero Emission Vehicle (ZEV) regulations for some automakers. CARB will hold a hearing to discuss giving intermediate volume manufacturers (IVMs) - carmakers that do between 4,501 and 60,000 new vehicle sales in the state - some leniency catching up to the larger manufacturers when it comes to clean vehicle production. The ZEV regulation changes take into account the amount of revenue IVMs have available for developing the cars, particularly plug-in hybrids. Read more at Green Car Congress or see the notice from CARB here. Certain units of the BMW i3 are subject to an airbag recall. For cars built March 31, 2014, the passenger airbag inflator may have been assembled incorrectly, which could keep it from deploying when needed. Owners will be notified by BMW, and the problem will be fixed for free. The recall also affects certain 2014 Mini Cooper models. Learn more at the NHTSA website. The Renault-Nissan Alliance is providing 200 electric vehicles to telecommunications company Orange in France. The cars, which will include the Nissan Leaf, Nissan e-NV200, Renault ZOE and Renault Kangoo ZE, will be used mostly for carsharing. Through the program, Orange employees can book a car for work or personal travel using a smartphone. The Alliance will also help Orange install charging stations for the new cars. The addition of the EVs to the fleet will help Orange achieve its goal of reducing its carbon footprint by 20 percent by 2020. Read more in the press release, below. Jianghuai Automobile Company (JAC) is delivering its first 100 EVs to the US. The shipment is part of a larger order of 2,000 cars to be sold by GreenTech Automotive in the US market. Read more at ECNS.