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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.

Tesla takes New York Times to task for damning Model S review

The social media tête-à-tête between the New York Times and Tesla CEO Elon Musk, stemming from a defamatory review by John Broder of the Model S and Tesla's new "Supercharger" network on the East Coast, is heating up in a major way. Just yesterday we summarized the Twitter spat, and now Musk has expanded upon the data recorded during Broder's test drive - adding major credence to the criticism of the NYT writer.
The smoking gun in this case is the information that was captured by the data recorder in Broder's loaned Model S. The data recording function is one that is only activated for consumers when permission has been expressly granted, says Musk, but is always turned on in the case of media vehicles. Thusly equipped, Broder's vehicle was keeping track of speed, charging data, map data and more, presumably without the writer's foreknowledge.
The evidence recorded by the in-car systems happens to contravene Broder's most damning claims of the Tesla, says Musk in his article titled A Most Peculiar Test Drive. First, and perhaps most shockingly, the Model S "State of Charge" log shows that Broder's test car "never ran out of energy at any time." Broder's reporting indicated that the car ran completely out of juice at one point and had to be evacuated on a flatbed truck. The data log also points out that the trip was made at speeds ranging from 65 to 81 miles per hour, where the writer claimed to have set the cruise control at 54 mph, with periods of driving as slowly as 45 mph.

Buick tops in Consumer Reports' annual brand rankings

Buick is the first US-based automotive brand to crack the top 10 in Consumer Reports magazine's annual brand report cards. US automakers also placed three vehicles on the magazine's list of "top picks" for vehicles, the first time that's happened in 17 years. The rankings were unveiled Tuesday in the magazine's annual auto issue. Buick placed seventh in the brand rankings. But the brand rankings and top picks still were dominated by Japanese and German manufacturers, with Lexus, Mazda, Toyota, Audi and Subaru taking the top five brand spots. The magazine calculates each brand's overall score with a composite of its vehicles' road-test scores and reliability scores for each model in its annual survey of subscribers. It's the third year for the brand rankings. Porsche placed just ahead of Buick at number six, while Honda, Kia and BMW rounded out the top 10 brands. Mercedes-Benz, Acura and Infiniti all suffered precipitous declines in their rankings due to unreliable new models or poor road test scores. Mercedes fell out of the top 10 to 21st, while Acura dropped from number two to 11 with an unimpressive test of the new RLX sedan, the magazine said. In the model rankings, the top overall finisher was California-based Tesla's Model S electric car, for the second year in a row. The Model S, which cost the magazine $89,650, finished first due to its performance and technical innovations, the magazine said. Buick's Regal midsize car beat the BMW 328i as the top sports sedan, and the Chevrolet Impala was named the top large car. The model rankings show Consumer Reports' favorite among the 270 vehicles its team has recently tested. The rankings are closely watched in the auto industry, since shoppers consistently cite Consumer Reports as a main source of car-buying advice. Other top picks included the Subaru Impreza in the compact car category, Subaru Legacy in midsize cars, Toyota Prius as the best green car, Audi A6 luxury car, Subaru Forester small SUV, Toyota Highlander midsize SUV and the Honda Odyssey minivan. Japanese vehicles won six of 10 top pick categories, but that was the smallest number in the 19-year history of Consumer Reports top picks. "For years domestic automakers built lower-priced and lower-quality alternatives to imports, but those days are behind us," said Jake Fisher, the magazine's director of automotive testing. But other U.S.-based automakers still had problems.