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Tesla could need another $6 billion to really change the auto landscape

Telsa Motors has some big plans. The electric car company is building its $5-billion Gigafactory near Reno, NV to guarantee a steady supply of lower-cost batteries, has plans to release two new models and is even talking about providing home energy storage on a large scale. The California automaker is ramping up EV production, and hopes to eventually be producing 500,000 cars per year. To do all this, Tesla is going to need a lot of cash, particularly if any of its cars becomes the "next big thing," so to speak. This is money Tesla would need in addition to the revenues it already pulls in. Patrick Archambault, an analyst at Goldman Sachs, said last week that Tesla could need at least $6 billion through 2025 to complete all of the plans listed above and any others, should Tesla become the automotive Apple. An increase in popularity that would see the company hit its production targets would create a need for capital to match that growth. Keep in mind, this is money it would need in addition to the revenues it already pulls in. Tesla has already secured a portion of the funds for its Gigafactory, but still needs to make up the rest. Some will come from its partner Panasonic and Tesla is receiving some serious tax incentives from the state of Nevada (to the tune of $1.2 billion). Archmabault predicts that most of the funds would be needed beginning in 2017, suggesting that Tesla has the financial means to reach its target of 100,000 vehicles by the end of next year. It's not until the Model III comes into play that Tesla might come to need the hefty sums suggested by the analyst. Whether Tesla will become more of a disruptive brand in the automotive world is still anybody's guess. Still, Archambault's suggestion of that possible $6 billion figure was enough to have an effect on Tesla's stock price, which fell after the estimate was released last week, and remains down as of this writing after a note from JP Morgan. Featured Gallery Tesla Model S View 24 Photos Related Gallery Tesla Model X View 15 Photos News Source: Bloomberg via Green Car ReportsImage Credit: Copyright 2014 Drew Phillips / AOL Green Plants/Manufacturing Tesla Electric gigafactory

Tesla Recalls Wall Charger Adapters To Prevent Overheating

Tesla Motor Company, maker of the Model S electric car, is recalling 29,222 wall charger adapters following reports of overheating in owners' garages. The National Highway Traffic Safety Administration (NHTSA) announced the recall Tuesday morning. Tesla said the problem lies in the Universal Mobile Connector (UMC) adapters, which can lead to the adapter, cord or wall outlet overheating during charging. The danger was discovered when a garage caught fire in California in November. It has since resulted at least five incidents that were reported to NHTSA's complaint database. "These are very rare events, but occasionally the wiring isn't done right," Tesla CEO Elon Musk said, according to Bloomberg. "We want people to have absolute comfort, so we're going to be providing them with an upgraded adapter." The new adapter will include a thermal fuse that will shut off charging if overheating is detected, Musk said. Tesla sent a software update to its customers to deal with the overheating issue back in December, which was designed to trigger a 25 percent reduction in charge current when it sensed a potential overheating. Tesla said about 2.9 percent of Model S buyers have returned their UMC adapters because of defects. Related Gallery Electric Cars And Hybrids Don't Have To Be Frumpy Recalls Tesla

Harry Reid in favor of $10,000 federal EV tax credit

Harry Reid says the federal government should commit more funds towards incentives for electric-vehicle purchases. We'll wait for readers' shock to sink in. Now, here are the details. The Senate Majority Leader (D-NV) is backing President Barack Obama's efforts to raise federal incentives for EV drivers to $10,000 from $7,500, according to The Detroit News. He's also big on the US Energy Department boosting its vehicle-research budget to help bring down the cost of EVs. Reid notes that Tesla Motors' $5-billion Gigafactory, which will be built near Reno, will provide $100 billion worth of economic value to the state. He also pointed out that Tesla paid off its $465-million loan from the US Energy Department last year, nine years early. There's a way to read this as some sort of quid pro quo for the new battery plant, since Nevada's providing about $1.2 billion (over a 20-year period) in incentives to Tesla and factory-building partner Panasonic and cutting EV prices for the average could help Tesla. But Reid has been speaking out in favor of more green cars for a while. In 2009, he helped promote a bill that would provide more incentives for people driving natural-gas powered vehicles. The year before that, Reid went on record saying that the US needed "a crash course to develop alternative and renewable energy." And in 2007, he called the debate over a more stringent Corporate Average Fuel Economy (CAFE) standard pointless because, he said, they were a given. News Source: The Detroit NewsImage Credit: J. Scott Applewhite / AP Government/Legal Green Tesla Electric incentives nevada gigafactory harry reid