2022 Tesla Model 3 on 2040-cars

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Toyota sells off Tesla shares, too

The incredible rise of Tesla's stock price has done little to now stop two major shareholders from ditching their stake in the American EV manufacturer. First, Daimler, parent company of Mercedes-Benz, ditched its four-percent stake, and less than a week later, Toyota is doing the same thing, selling off an undisclosed bit of its Tesla investment.
The move comes as Toyota winds down sales of the RAV4 EV, which gets its batteries and electric motor from Tesla at the company's Fremont, CA factory.
"We have a good relationship with Tesla, and will evaluate the feasibility of working together on future projects," Toyota spokesperson Kayo Doi told Bloomberg via email.

Tesla Model X delayed thanks to Model S production lessons

Besides the third-quarter sales figures for the Model S this year, the big news from the Tesla investor earnings call yesterday was another delay of the Model X electric SUV. CEO Elon Musk made it clear in his letter to investors that he did not want to "bring a product to market that does not delight customers," and he expounded on this in the call yesterday afternoon. Musk even named the X's falcon-wing doors as a potential problem. When Patrick Archambault from Goldman Sachs asked for more details on the Model X delay, Musk said his company would have no real problem making a few great X EVs, but that, "making lots of something consistently that's going to last a long time is extremely hard." Designing the car is easier than figuring out how to actually build the darn thing, he said, and building a lot of them is where Tesla can "really move the needle." We all know that that's what Musk wants to do, and he now says the third quarter of 2015 is when that'll be possible. Musk even named the X's falcon-wing doors as a potential problem. The powertrain and the chassis are based on the Model S, so that has been sorted out to some degree but, "with the falcon wing door and the second row of seats, ... we're adding some very new stuff that's really not out there, that never really has existed in a way that was useful," Musk said. Musk's argument that the X should be delayed has a lot to do with what he and the company found out by building the Model S. "We also learned a lesson in manufacturing that you have issues that are sometimes one out of 100, but unless you make 100 of something, you don't see it," he said. "Then you think the car is all good, but actually randomly one out of 100 is wrong, but you don't know necessarily which one out of the 100, then you've got to go look at all 100 cars. So just once you get into volume manufacturing there are just these statistically rare issues, but you really need to make a bunch of something in order to know that it's there. We want to make sure we do that with the X, that's really just a lesson we've learned." So, despite repeated rumors of potential rivals, Tesla is going to stay the course and bring out the X when it's good and ready. You can read the full transcript of the call here and listen here.

California could put $60,000 MRSP limit on EV rebates

In California, electric vehicles have been selling so well that the California Air Resources Board (CARB) is discussing ways to reduce the amount spent on the state's Clean Vehicle Rebate Program (CVRP). The program, which provides rebates to EV buyers, is $30 million in debt this year, according to the Capitol Weekly. A new discussion document that was presented at CARB's April 3 meeting lists two main ways that the state could save money while still supporting EV sales. There could be a $60,000 price limit on plug-in vehicles that CARB would subsidize. Option one is to reduce the rebate by $500, which would mean pure EVs would get $2,000 and plug-in hybrids would get $1,000. The other option would be to put a $60,000 price limit on plug-in vehicles that CARB would subsidize. Currently, this would only affect two vehicles: the Tesla Model S and the Cadillac ELR. You can find the details in this PDF; see pages 20-23 for discussion on reducing the rebates. CARB's numbers show that cutting the rebate by $500 would result in "only a minimal short-term impact in the growth of sales of eligible vehicles." The benefit would be that," the budget savings associated with the short-term market delay will more than offset this impact by providing rebates for about 41 percent more vehicles during fiscal year 2014-15 under a fixed budget." As far as limiting the rebate to vehicles that cost less than $60,000, CARB makes the obvious point that, "rebates are more effective in influencing purchase decisions related to vehicles with a MSRP lower than $60,000." CARB thinks this limit will impact no more than two percent of the EV market, "but will allow the program to be more effective in influencing consumer purchase decisions." Plug In America does not support CARB's proposal. PIA's senior policy advisor, Jay Friedland, told AutoblogGreen that: At this early point in the market, Plug In America is working hard along side a coalition of automakers, NGOs, utilities and consumers to maintain the CA Clean Vehicle Rebate at current levels with all vehicles included. Tesla is a leading California EV manufacturer - and has been indispensable to creating the market generally - and should not be excluded from the program. Every EV reduces pollution for kids and adults alike and our dependence on petroleum. We asked Tesla for a statement, but have not heard back.