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Why Tesla's $35,000 Model E is a pipe dream

A car that costs 80 percent as much to produce as another can't be half the price. That's the simplistic version why Stanphyl Capital Management says Tesla Motors will not be able to sell its "mass market" sedan for the low, low (by luxury electric-vehicle standards) Elon Musk-backed price of $35,000. In fact, the California-based automaker will take about a $13,000 bath for each unit it sells of the new vehicle, now referred to as the Model E. Stanphyl Capital Management breaks down the fourth-quarter costs and revenue associated Tesla's Model S, of which it sold about 6,900 units during the last three months of the year. In a nutshell, Tesla generated a whopping $106,000 per vehicle sold, with about two-thirds of the company's gross profit coming from battery and optional upgrades. And while Tesla may be able to get the Model E battery costs down to about $8,100 compared to the $15,600 cost of the Model S battery (the smaller car will use a smaller battery that will provide about a 200-mile single-charge range), all of the other stuff brings the Model E's unit cost up to about $48,000. That compares to the $59,600 average cost of a Model S. Fremont, we have a problem. Reports came out in December saying that the Model E may be unveiled at one of next year's auto shows and sales could start as early as 2016. The argument against the possibility of a $35,000 Model E may sound reasonable on paper, but more than a few people have lost money betting against Elon Musk. You can read more at ValueWalk.

UAW sets up organizing committee at Tesla's Fremont factory

Tesla is happy to do things differently than other automakers, from the company-owned stores to the all-electric drivetrain. It also doesn't use union workers at its factory in Fremont, California (the former NUMMI plant, pictured). But now the United Auto Workers (UAW) is testing the waters for representation at the plant, according to a report in the San Francisco Chronicle. UAW President Bob King has revealed that the UAW has created an organizing committee in Fremont. How this would change things at Tesla – and whether it would be a good or bad thing – is not really known, but it would certainly make the EV company more like the Big Three in this one aspect. We heard rumblings of unions at Tesla in 2010, when Toyota and Tesla announced they were going to collaborate on developing EVs. At that time, the United Auto Workers said it wanted union workers back at the plant, especially some of the 4,500 who ended up unemployed after the General Motors/Toyota partnership that built cars at NUMMI was shut down. That didn't happen, but Tesla has called unionization a 'risk' to business in a financial report. Tesla CEO Elon Musk at least has a plan for running his shop both with and without a union. As he told Wired in 2009, "Most of our experienced factory workers come from unionized environments, and we asked them what benefit did they see in unions. They said, 'Well, if their boss was an asshole, they had recourse.' I said, 'Let's make a rule: There will be no assholes.' I fired someone for being an asshole. And I only had to do that once, actually." Tesla declined comment to AutoblogGreen about the new union rumblings, but when we spoke with Musk in 2012, he described the longer-than-average work hours: Right now we're working six days a week. Some people are working seven days a week – I do – but for a lot of people, working seven days a week is not sustainable. The factory is operational seven days a week but most people we only ask to work six days a week right now and, obviously, we want to get that to a more reasonable number. I think people can sustain a 50-hour work week. I think that's a good work week. If you're joining Tesla, you're joining a company to work hard. We're not trying to sell you a bill of goods. If you can go work for another company and then maybe you can work a 40-hour work week. But if you work for Tesla, the minimum is really a 50-hour week and there are times when it'll be 60- to 80-hour weeks.

Tesla Model S wins Automobile car of the year [w/video]

Automobile Magazine recently spent the better part of three days getting to know 28 of the latest and greatest cars on the market to pick its Automobile of the Year, and today it announced that the 2012 Tesla Model S was given this coveted award. As much as the all-electric Model S means to the automotive world, we'd be surprised if it doesn't snag a lot more hardware in the next few months.
The Model S beat out cars like the 2013 Cadillac ATS, 2013 Ford Fusion, 2012 Porsche 911 Carrera S and 2013 BMW M5 with its sleek design, luxurious and tech-filled interior and, of course, its unique electric powertrain that offers both an incredible all-electric range and equally eye-popping performance.
To narrow down the top candidates for the award, Automobile took all the cars out for two days of road testing and then spent another day at Gingerman Raceway in Western Michigan, and the performance aspect of the Model S seemed to surprise and/or impress a lot of the magazine's staff more than anything else. To prove how fast the car is, they did a drag race to 100 miles per hour with the Tesla and the new M5, and the Model S won. The 265-mile driving range and 17-inch touch-screen display won points for the car, too.