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Tesla gigafactory will source materials from North America to keep things green

It's one thing for the Big 3 to get tires and engine parts from cities along the US Rust Belt. It's another thing altogether, though, for Tesla Motors to source far more esoteric materials like graphite, cobalt and lithium from Canada and the northern US. But that's what the California-based company has in mind, and it's all in the name of environmental friendliness and cost, Bloomberg News says. Tesla is looking to bring its raw-material sourcing to this side of the Pond by the time it opens its massive gigafactory that may produce as many as 500,000 vehicles annually, Bloomberg says, citing Tesla spokeswoman Liz Jarvis-Shean. And while the raw-material price may be higher (and driven up further with the additional demand from Tesla), those costs may be offset by the fact that there will be far less transportation and logistics involved. "When all costs are considered, it should be cheaper to source most materials from as nearby as possible" - Tesla's Liz Jarvis-Shean "Transportation impacts are very significant on the heaviest raw materials if they need to be moved from halfway around the world," Jarvis-Shean wrote in an e-mail to AutoblogGreen, adding that there will be additional cost savings from reduced shipping time and less transit-related working capital requirements. "In the long term, when all costs are considered, it should be cheaper to source most materials from as nearby as possible." There are geopolitical issues as well. For instance, China is shutting down some of its graphite mines because of pollution issues, while much of the world's cobalt comes from war-torn Congo, though Tesla says it gets its cobalt from the Philippines. Most of the graphite in Tesla's Model S is of the synthetic variety from Japan and Europe. Of course, Tesla's still trying to figure out where to put its gigafactory, and has said it will be in one of four states: Arizona, Nevada, New Mexico or Texas. The factory will cost an estimated $5 billion and may support 6,500 jobs, so state governments are already starting to campaign to be the automaker's future production home. Regardless, Jarvis-Shean estimated that the sheer economies of scale from the gigafactory will reduce battery-pack costs per kilowatt hour for the company's "mass market" model (sometimes referred to as the Model E) by 30 percent after a full year of production.

Should you buy an EV?

Gas prices are hitting the skids and EVs are following suit; nearly every model in today's market has experienced a double-digit decline in sales – with the always notable exception of the Tesla Model S. Some EVs are in the last year of their generation while others have been half-heartedly designed and engineered to fulfill federal government quotas. The two non-Tesla front runners, the Chevy Volt and Nissan Leaf, are in the unfortunate position of offering customers "2015" vehicles that were designed with 2011 in mind. Yet there's plenty of love in the air. Nissan has built over 180,000 Leafs worldwide, and chances are you will be seeing a second electric vehicle accompanying the Leaf when the new generation is released in the coming months. The Chevy Volt now offers the highest customer satisfaction out of any car or truck sold in North America. Forget the luxury cars, the sports cars, the family trucksters, and even the rolling flagship that guides Tesla's jaw dropping valuation on Wall Street. You want happy with your EV? The brand that's rocking the segment right now is Chevy. It's been doing so for a while. The EV market is poised to become a lot more sophisticated over the next 18 months with the three leading manufacturers – Tesla, General Motors, and Nissan – launching five brand new models along with no fewer than 16 other manufacturers making many of their bread and butter cars available as plug-in hybrids. So, if you want to keep your money as far away from the Arab dictatorships and Russian mafia as Mercury is from Pluto, and enjoy your commute, we're more than ready to do our part! So let's begin with the most important question. What's Your Range? How much driving do you generally do in a day? If the answer to that question is 50 miles or fewer, an all-electric vehicle like the Nissan Leaf may be the best ingredient for your driving recipe. This is especially true if you have a second vehicle you can use for the occasional longer drive or are willing to rent for the weekend. But here's a little surprise for you. The upcoming Chevy Volt was designed to be driven in all-electric mode for over 50 miles. Fifty-three, to be exact. Plus, the Volt's battery has experienced a lot fewer deterioration issues than the Nissan Leaf's due in part to the Volt's liquid-cooled battery, which also uses a lot less of its capacity than the air-cooled Leaf's does.

Tesla: Earnings still down, but rate of Model S production way up

According to its Third Quarter 2012 Shareholder Letter, Tesla "is now at over 200 cars per week or 10,000 cars per year, which is at the critical threshold needed for Tesla to generate positive operating cash flow."
That's an important milestone to be sure, but the news is actually even better; Tesla expects to ramp Model S production up to 400 cars per week (20,000 units/year) by December of 2012, and says it will deliver 2,500 to 3,000 units in the fourth quarter of 2012. That's lower than the previous target of 5,000 in 2012, but it's more an issue of delayed achievement rather than missing the mark altogether.
All of that production bodes well for the future, but as of today, the automaker has yet to earn real money. Revenue for the third quarter of 2012 was $50 million, equating to a net loss of about $110 million after expenses were tallied. The stock market likes the numbers, with TSLA shares rising 8.9 percent on Monday after the report was released.