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Daimler CEO says nobody is making money on EVs right now

What do you charge for a vehicle you're going to lose money on? If you're Mercedes-Benz and the vehicle in question is the B-Class Electric Drive, you offer it for lease for just 399 euros ($498) a month with a down payment of 8,473 euros ($10,582). If Daimler was going to price it honestly, it seems, the number would have to be a lot higher. "Nobody today is making a battery-powered vehicle that's economically viable." – Daimler CEO Dieter Zetsche That's according to Daimler CEO Dieter Zetsche, who spoke to reporters in Spain recently and said that, "You can reasonably say that nobody today is making a battery-powered vehicle that's economically viable in its own right. Manufacturers will not see a return within a reasonable time on the billions they're investing now." There are ways to make money in EVs, of course. Just ask Daimler, which recently sold its stake in Tesla for a cool $780 million. Zetsche has some EV-critical company in executives like Fiat Chrysler CEO Sergio Marchionne, who has said his company loses over $10,000 on each Fiat 500E it sells. Other automakers – e.g., Tesla, Nissan – are much more positive about their financial bet on EVs, but no one is opening all their books to the public to prove this. Tesla, which worked with Mercedes on the B-Class ED, will have an earnings call with investors later today, so perhaps we'll learn something new in a few hours. The B-Class ED lease deal is for 36 months, based on an MSRP of 39,151 euros ($48,895) in Europe, including the 19 percent VAT. You can read more in the press release below. Commercial release of Mercedes-Benz B-Class Electric Drive: Local emission-free driving from ˆ399/month Stuttgart, Nov 03, 2014 With its high-torque electric motor, the B-Class Electric Drive delivers lively and superior driving pleasure – with zero local emissions. The B-Class Electric Drive is now available to order, with deliveries set to start before the end of 2014. Prices start at ˆ39,151[1]. The B-Class Electric Drive can be leased through the Mercedes-Benz Bank from ˆ399 a month[2]. Further information on the full range of tailor-made leasing and financing offers as well as specific pricing examples are available at http://www.mercedes-benz-bank.de. Quiet and local emission-free driving is ensured by a 132 kW electric motor, which, as is typical of an electric drive, delivers its maximum torque of 340 Nm right from the start. The result is noticeably powerful acceleration from rest.

New Jersey votes against Tesla, stores may close April 1

Doesn't New Jersey Gov. Chris Christie have enough people mad at him already? Apparently not, since more than a few folks who like Tesla Motors are ready to get riled up. The governor is already embattled via his office's alleged role in a scandal involving politically-motivated lane shut-downs to the George Washington Bridge. And with him now deciding to let the state's motor-vehicle commission rule on allowing for Tesla to own its dealers, Tesla has likely lost that battle and may have to shutter its two New Jersey factory-owned stores by April 1, Automotive News says. Earlier this week, Tesla accused the governor on going back on his word after the company said it believed that the ruling would go before state legislature. Of course, the governor's office disagreed with that characterization. Kevin Roberts, a spokesman for Gov. Christie, sent a statement to AutoblogGreen that said: Since Tesla first began operating in New Jersey one year ago, it was made clear that the company would need to engage the Legislature on a bill to establish their new direct-sales operations under New Jersey law. This administration does not find it appropriate to unilaterally change the way cars are sold in New Jersey without legislation and Tesla has been aware of this position since the beginning. Tesla strenuously disagrees with that characterization, and Diarmuid O'Connell, Tesla's vice president of business development, told Bloomberg that, "any suggestion that Tesla was told 'since the beginning' about any problem with its ability to be licensed there is false." Representatives for New Jersey auto dealers say the ruling merely upholds current regulations and forces everyone to operate under the same mandate. Tesla first received approval to operate in New Jersey in the fall of 2012. Tesla has won court decisions regarding dealer allowances in Massachusetts and New York, though most notably lost one in Texas (the company also can't sell cars direct to customers in Arizona). In the past, Tesla CEO Elon Musk has said he'd take the matter to the federal government, and we wouldn't be surprised to hear that sort of rallying cry come up again soon.

New Jersey votes to allow direct Tesla sales

It's not quite the law that Tesla Motors can sell its car directly to customers in New Jersey, but the state has taken one step closer to that reality. Yesterday, New Jersey's Assembly Consumer Affairs Committee voted 4-0 to approve bill A3216, which would "Permits certain zero emission vehicle manufacturers to directly sell motor vehicles to consumers and requires them to operate service facilities." The EV automaker's ongoing dealer fight took a turn for the worse in New Jersey a few months ago, when the state legislature voted in mid-March to prevent Tesla stores from conducting their business. Tesla had been selling cars in the sate, but Governor Chris Christie said the ban was just an enforcement of a law that had been on the books for years, something Tesla said was an "affront to the very concept of a free market." If A3216 becomes law, then electric vehicle makers would be able to operate "no more than four places of business in the State" as well as one service center. The bill will let Tesla "conduct the business of educating the public about electric vehicles" – Diarmuid O'Connell Speaking to the committee, Tesla's vice president of business development, Diarmuid O'Connell, said, "This is a super important issue for us in New Jersey, and as some of you would know, nationally as well. ... [The bill would] allow us to in a modest way and a reasonable way conduct the business of educating the public about electric vehicles and getting as many of those vehicles on the road as quickly as possible." Speaking for the New Jersey Coalition of Automotive Retailers, president Jim Appleton said that this solution is fine for start-up EV automakers, but that the franchise model should still be the goal for anyone selling cars. This fight isn't nationwide yet, but the FTC has come out against what it called "protectionist" anti-direct sales mandates, so we expect to be hearing more as time goes by.