2015 Tesla Model S 85d Sedan 4d on 2040-cars

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Is Tesla quietly sitting on 3,000 cars?

Tesla's 2014 third quarter financial report mixed some positive news with gloomy messages. On one hand, the electric carmaker posted its best quarter ever in terms of deliveries, including its best single day with 907 EVs delivered. The company also announced expanded production to get even more vehicles out the door by the end of 2015. However, the Model X got delayed yet again and higher prices in Europe were mulled. Dousing the results with a bit more cold water, a Merrill Lynch investor letter claims there's more to be pessimistic about the business than meets the eye.
The Daily Kanban, quoting research meant for Merrill Lynch clients, claims that Tesla had "approximately 3K vehicles stocked in inventory or in transit" at the end of the Q3. That's a fairly large number considering that the company reports selling 7,785 units for the whole quarter. The statement is also surprising because the automaker has a reputation for keeping excess supply low, and there are allegedly waiting lists for Model S sedans. CEO Elon Musk maintains that the automaker has a problem being able to keep up with high demand, as well.
According to Daily Kanban, the letter further states, "China is proving to be more challenging for Tesla to penetrate than expected." The automaker does not break out sales by region in its Q3 financials to check this assertion, however, the company does report the recently opened store in Shenzhen is one of its top-grossing stores worldwide and that there are now 23 Supercharger locations in 10 Chinese cities.

Tesla lowers Model S lease price, adds 3-month 'happiness guarantee'

Tesla Motors is offering an enticing deal for potential buyers who might not be entirely sure whether they actually want to own a Model S for the long term. A deal through US Bank not only lowers the cost to lease the EV but also turns leasing the brand's electric sedan into a long-term rental.
Curious buyers who lease a Model S are now able to return it in the first three months with no penalties and with the remaining payments waived, something Tesla is calling the "happiness guarantee." CEO Elon Musk announced the deal on the company's blog, and he said the payments were also as much as 25 percent lower because US Bank "has a much lower cost of capital than us." Currently, a Tesla lease starts at around $800 and can be up to $1,300, with down payments around $6,500. Tesla leasing is available in 38 US states (full list below).
Of course, there is a catch for the offer. If people turn in their Model S within three months, they can't immediately lease another one. Musk doesn't say how long the wait is.

Morgan Stanley predicts radical auto industry consolidation

A lack of technological foresight and changing economic conditions may bring dramatic consolidation to the auto industry in the next 15 to 20 years. Industry analyst Adam Jonas at Morgan Stanley believes that the number of major automakers could go from around 30 today to as few as 6 in that time. However, a catastrophe is avoidable.
Jonas' argument is that the world has more automakers than it can sustain. He contends that too many of them are more focused on next year's models than attempting to adapt to technological change. Without looking forward, they won't survive.
Tesla might be the lighthouse leading automakers away from the rocks. While still quite small, it has disrupted the status quo and shown that there's more than one way to prepare for new innovations. "With proper execution, Detroit may thank Tesla Motors for being that stiff board in the back of the head right when they needed it," said Jonas to The Detroit News.