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Weekly Recap: Tesla loses money, still dominates the news

Some people get an inordinate amount of attention. In politics, it's Donald Trump. In football, it's Jim Harbaugh. And in the auto world, it's Elon Musk and his always-fascinating electric car company, Tesla Motors. General Motors is spending $877 million to upgrade a factory. So what! US auto sales are up. Who cares? Tesla has a metal snake that will recharge your car! So was the week in Tesla – er, the industry. Snarkiness aside, Tesla did dominate the news cycle, led by the announcement the company lost $184 million in the second quarter. Tesla also said it expects to deliver between 50,000 and 55,000 vehicles this year, and is preparing for a full launch of the Model X crossover in September. Musk also made news during the earnings call by simply not answering a question about ride sharing, leading to speculation Tesla could be considering its own operation. While the financials were the arguably the most important company news, reports of a Model S cyber hacking were more compelling fodder for Tesla followers. Researchers were able to attack the sedan and bring it to a stop, though they required access to the car first. Tesla says it already has deployed a remedy for the situation. On a lighter note, Tesla published a video of its metal charger prototype that autonomously uncoils like a snake to power up the company's vehicles, provoking plenty of humorous comments and comparisons. Watch it and decide for yourself. While some of this might seem trivial, much of Tesla's recent attention has been warranted. It's the first startup US automaker in decades to launch from nothing and actually gain traction in the market. Sure, Musk is a lightning rod and Tesla always seems to be in the spotlight. But amid all of the publicity, it easy to lose sight of the new reality: Tesla is a force. OTHER NEWS & NOTES 2016 Chevy Volt lights up 106 MPGe The Chevy Volt's vitals are looking healthier for 2016. The second-generation plug-in hybrid racks up a gaudy 106 miles per gallon equivalent, which is an increase of eight MPGe from the 2015 model. The new Volt can travel 53 miles on electricity, a significant jump from the 2015 Volt's 38-mile range. The new car also has a 420-mile total range when factoring in the capability of the gasoline engine, which is 40 miles greater than the current car offers.

Recharge Wrap-up: Tesla hiring new sales executives, A123 focuses on starter batteries

A123 Systems is shifting more of its focus to lithium-ion starter batteries for cars with stop-start systems. The company sees the smaller batteries as a safer, more viable way to bounce back from its recent bankruptcy than by providing battery packs to power EVs. A123 still provides EV batteries to China, and hopes to provide them to Fisker, which is now owned by a mutual parent company, Wanxiang. A123's Detroit facility is currently building starter batteries for Mercedes-Benz, with microhybrid battery production expected in within the next few years. Read more at Automotive News. Tesla Motors Vice President of Worldwide Sales and Service Jerome Guillen is being reassigned to a role in customer satisfaction. After struggling sales in California and China, Tesla is also seeking sales executives for its three major sales regions: North America, Europe and Asia. "Once they are on board, Jerome's focus will be on post- sales activity from delivery to long-term customer care, where he has done an incredible job," says Tesla. For 2014, North America made up about 55 percent of Tesla's sales, while Europe and Asia made up 30 and 15 percent, respectively. Tesla expects those numbers to eventually be distributed evenly, and aims to increase sales by 74 percent this year. Read more at Automotive News. David Noland of Green Car Reports wants Tesla to address a double-pedal problem in the Model S. Noland says that when both the accelerator and brake pedal are pressed at the same time, it can increase the stopping distance, creating unsafe situations. Noland, along with other drivers with large feet, are having problems with this due to the narrow spacing between the pedals. Elon Musk has stated that the Model S limits torque in a double-pedal situation, but Noland's own tests find some inconsistencies. Noland would like to see a change to the firmware to address this problem. Read more at Green Car Reports. Featured Gallery Tesla Model S View 10 Photos Related Gallery 2012 Fisker Karma: Second Drive View 30 Photos News Source: Automotive News, Automotive News, Green Car ReportsImage Credit: Tesla Motors Green Fisker Tesla Green Automakers Safety Electric recharge wrapup

The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.