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Sun and wind could power Tesla Gigafactory for EV batteries in Nevada

Next week is Tesla Gigafactory week. The California automaker has a major announcement planned, and it's all about its intention to build a battery factory so large, the company is pulling out the giga prefix. At some point in the next seven days, we expect to hear where Tesla will build the plant, who it will partner with, how it will pay for it and lots of other details. The production volume is expected to be at least 30 gigawatt-hours-worth per year. The Gigafactory will take in the raw materials for lithium batteries and put out finished packs, not only for the electric vehicles made by Tesla and its automotive customers, but also for massive amounts of renewable energy storage – that's a niche the company plans to begin to occupy sometime early next year with residential-sized products. The production volume is expected to be at least 30 gigawatt-hours-worth per year. That's more storage than all the lithium battery factories in the world combined produce now. Color us impressed. Now, you might be thinking, "Is it really necessary to go that big at this point in time?" In a word: yes. Tesla CEO Elon Musk has said its upcoming, more-affordable vehicle – widely expected to be called the Model E – will wear a $35,000 price tag and boast a battery big enough to take it 200 miles on a charge. To achieve this, the cost of the cells needs to come down dramatically, and so it's no coincidence that the time frame for the new facility will parallel that of this car. According to Musk, the benefits from the economies of scale will see a cost drop between 30 and 40 percent. Of course, historically high prices are one of the main reasons why battery storage has not been widely used in the renewable energy sector, so this development could help drive more demand for cleaner, affordable energy, which, in turn, will drive demand for more storage. That's the kind of vicious cycle we like to see. Musk said the Gigafactory will be "heavily powered" by wind and solar energy. Speaking of renewables, that is where the Gigafactory will get much of its needed energy. During the call with financial analysts that accompanied the release of its 2013 fourth quarter earnings report, Musk mentioned that the new plant will be "heavily powered" by wind and solar energy, and will also use older Tesla packs for storage. These will help deflect the traditional arguments against wind and solar, that the sun doesn't shine at night and the wind doesn't always blow.

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.

Tesla driver blames 'new car smell' in fatal cyclist crash

According to the accident report compiled by the California Highway Patrol, 63-year-old driver Navindra Kumar Jain fell asleep at the wheel while driving northbound on Highway 1 in Santa Cruz, crossed into the oncoming, southbound lane, crested a small hill and then while doing 55 miles per hour hit a southbound cyclist who was riding on the shoulder. The cyclist, Joshua Alper, died at the scene. Jain was driving a Tesla Model S he had bought ten days earlier and said that the intense new-car smell - which he attempted to counter with a baking-soda scented air freshener - caused him to fall asleep.
The accident happened in November, and after a three-month investigation the Santa Cruz district attorney has decided to charge Jain with "misdemeanor vehicular manslaughter." As you could guess, there are still plenty of unresolved issues. Jain has said he "fell asleep" and there was nothing mechanically wrong with the car he had bought ten days before the incident. His attorney, however, says "he passed out while driving and still does not know what caused the accident," and that the Tesla "and all its component parts" must be thoroughly tested. The CHP tore the Tesla apart, standard practice in manslaughter cases, and, not having found anything amiss, declared the driver at fault. Observers, and especially cyclists, want to know why Jain was only charged with a misdemeanor, and why he hasn't yet been arrested. Some might ask why he didn't just roll down a window.
It will take the courts to decide - that's "courts," plural. In addition to the criminal case, Alper's family is suing Jain and Tesla, appearing to cover its bases with the new-car-smell defense by accusing the Model S of being "defective and unreasonably dangerous when used in a normal, intended and foreseeable manner." That seems like a stretch to us, but it's not like bizarre defenses haven't ever swayed a sentencing before. No matter the verdict in the criminal or civil cases, though, with Joshua Alper gone, nobody wins.