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Elon Musk says Model S demand in China could require new plant there

It's not exactly news when Tesla Motors chief Elon Musk talks big, but his prediction that sales of the Model S electric vehicle in China will require the California-based company to build a factory there is pretty substantial. Musk tells Bloomberg News that Tesla's sales in China could equal those in the US as soon as 2015. Could is the operative word here, though, since he backed off a tad by calling his production more "low fidelity" than firm. Still, Musk says demand will be strong enough that a factory in China could become a reality in the near future. Tesla recently set the price for the Model S in China at at about $121,000, which is about a 50-percent price premium compared to the US. And while that sounds steep, the extra cost is actually less than the doubling (relative to US) that usually happens when cars and trucks are imported in China. Looks like Musk wants to sell some cars in the People's Republic. Tesla finished strong in the US last year, moving about 6,900 of its battery-electric Model S sedans during the last three months of 2013. That made it the best-selling US plug-in vehicle during the fourth quarter. We'll be tracking when that same feat is achieved in China.

Tesla's gains on the dealership status quo are freaking people out

Tesla took two more steps towards being allowed to sell its vehicles as it chooses (that is, direct to customers) this week. Legislative efforts in New Jersey and New York both gave the California automaker legal permission (or near permission) to operate its stores. It's gotten so bad – or good, depending on your views, that other automakers are starting to speak up. Yesterday, Tesla got official permission to keeps it five stores open in New York thanks to the signature of Governor Andrew Cuomo on a pro-Tesla bill that passed earlier this year. This is not a surprise. The bill also makes it difficult for any other automaker to operate its own stores in the state. Other automakers are now saying that the dealers have too much power. In nearby New Jersey, the state Assembly voted yesterday to allow EVs to be sold directly to the consumer. This vote follow an Assembly committee's vote earlier this month and the bill now moves to the New Jersey Senate and, if it passes, would need to be signed by Governor Chris Christie before becoming law. You may remember there's a bit of bad blood there. This is all quite a turnaround from mid-March, when the state legislature voted against direct sales. If passed, Tesla would be allowed to operate four stores in the state. As you can see, progress is being made. And that's changing the battlefield. The National Automobile Dealers Association (NADA) released a new package of pro-dealership information called "Get the Facts: The Benefits of Franchised Auto Dealers" to take the other side. NADA says that the "current franchised new-car dealer model has benefited consumers, manufacturers and local communities for nearly a century" and then lays out its reasons why. You can watch the NADA's short Get The Facts video below. Perhaps most interestingly, other automakers – through the Auto Alliance – are now saying out loud that the dealers have too much power. In a statement to Automotive News, the Alliance said, " When we look at the big picture, we may be at a tipping point. If dealer groups continue their push for more onerous franchise laws, we will be forced to keep an open mind about how best to serve new-car buyers in the future." That was enough to scare the chairman of the Automotive Trade Association Executives, who told AN that, the Alliance coming out against the franchise system was a "recipe for disaster." This content is hosted by a third party. To view it, please update your privacy preferences.

Musk reports positive cash flow for Tesla last week

According to Bloomberg, Tesla actually earned money last week. CEO Elon Musk sent out a message on Twitter saying his company was "narrowly cash positive." That's big news for a company that hasn't turned a quarterly profit as of yet. Tesla is currently in the middle of stepping up production for its Model S sedan, and has announced the vehicle's MSRP will jump by $2,500, presumably to help fund that expansion.
So far, Tesla says it has built will build around 20,000 Model S units at its California production facility next year, though analysts say the ability to repeatedly generate a positive cash flow would go a long way toward the company's evolution into a "sustainable operating entry." So far, the Model S has garnered substantive praise, earning the Motor Trend Car of the Year Award among others. Tesla shares are up 19 percent this year over the same time period in 2011.