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Tesla exec calls rival EVs 'little more than appliances'

Tesla's Vice President of Business Development Diarmuid O'Connell called the company's competition "little more than appliances" at the Center for Automotive Research's Management Briefing Seminars in Traverse City, MI yesterday. "In essence, [mainstream automakers] delivered little more than appliances," O' Connell said. "Now, appliances are useful. But they tend to be white. They tend to be unemotional." According to Automotive News, O'Connell's main critique is that vehicles like the Nissan Leaf and BMW i3 don't deliver enough performance or range to draw the attention of consumers outside of a small group. The solution, in O'Connell's mind, is more power, more range, more excitement and a lower price – that last point is particularly rich coming from an automaker whose cheapest current offering, the Model S 60, costs $66,000 – although the cheaper Model 3 is on the horizon, way out there, somewhere. But some EVs are better than none, O'Connell added. "On balance, I'm happier that [traditional automakers are] doing these cars than not," O'Connell said. "I just wish they would do them better and faster." O'Connell also used his appearance at the Management Briefing Seminars to launch a volley at the Michigan legislature, blaming its opposition to Tesla's direct-sales model for the lack of available EVs in the Wolverine State. "I think if the Michigan Legislature would allow Tesla to sell cars in Michigan, we could probably address [the lack of available electric cars]," O'Connell said. Related Video:

Five years ago, the DOE loaned Tesla Motors $465 million

*This post has been updated to reflect the nature of the new funding. Five years ago this week, the US Department of Energy finished the paperwork on its Advanced Technology Vehicles Manufacturing (ATVM) loan to Tesla Motors. Despite a lot of controversy about that program, Tesla managed to pay back the $465 million loan early and with interest. The DOE made four other loans under the ATVM program – to Ford, Nissan, Fisker and a small startup, VPG, that wanted to make natural gas powered vehicles for people in wheelchairs. Ford and Nissan are paying the money back, Fisker and VPG are not. Speaking at the Washington Auto Show this week, Energy Secretary Ernest Moniz said that while the two loans "did not fully perform," the portfolio overall is doing well. Even the vehicle that VPG was going to make is still moving forward because another company stepped in. That's why Moniz was proud to discuss details of a separate funding program that will hand out over $55 million for what the DOE calls, "cutting-edge vehicle technologies that strengthen the clean energy economy." Moniz said the new money – as well as a separate $35-million funding program that will be available in February – will be used for improved batteries and other electrification technologies, lightweight materials and better engines for both light- and heavy-duty vehicles. One thing Moniz singled out was a way to make recharging an EV even easier. "This is directly supporting our EV Everywhere Grand Challenge," he said. The Secretary joked that the manager of the new funds has just had a baby, so anyone who wants some of the money should apply soon, while he's still groggy. "Our goal is to help establish these industries and help them grow," Moniz said, adding that the DOE may emphasize private partnerships in handing out the new loans. The two consequences of that would be to increase the amount of money available and also that, "we think there is an advantage in bringing more lenders and more banks to have experience in terms of getting into debt financing across this whole spectrum of technologies." Moniz said that the US government is handing out all of this money on generous terms.

Analyst predicts GM will buy Tesla in 2014

There's little question that Tesla has come at the automotive industry as an outsider. But will it last as an outsider for much longer? Not if you ask Yra Harris of Praxis Trading. According to USA Today, the veteran financial analyst recently predicted on CNBC that General Motors will try to buy Tesla in 2014.
It certainly wouldn't be the first time that GM acquired another automaker. It did just that when it purchased the rights to the Hummer brand from AM General in 1999 and completed its takeover of Saab the year after. But, of course, The General has since divested from both, shutting down its Pontiac and Saturn brands in the process. Daewoo and Oldsmobile are gone too, as is Geo. Chevrolet is to be withdrawn from Europe, and over the past few years, GM has sold its minority stake in Isuzu, Subaru, Suzuki and PSA Peugeot-Citroën as well.
Of course, none of these are dedicated electric carmakers like Tesla is, and the Volt may not be doing as well as Detroit had initially hoped. But does that mean it's ready to start expanding its brand portfolio again? With all due respect to Mr. Harris, somehow we doubt it - especially with Tesla currently enjoying sky-high market valuation. The company's market capitalization stands at over $18 billion - more than 100-plus times its earnings. That would make mounting a Tesla takeover a hugely risky and costly endeavor unless Wall Street tempers its stock value greatly.