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Weekly Recap: The cost of Tesla's ambitious plans for growth

Tesla has ambitious plans for growth, and they won't come cheap. The electric-car maker said this week it plans to spend $1.5 billion in 2015 to expand production capacity, launch the Model X crossover and continue work on its Gigafactory, which is being built outside of Reno, NV. The company is also investing in its stores, service centers and charging network, which is expected to grow by more than 50 percent this year. Plus, it's still working on the Model 3, which is scheduled to arrive in 2017. "We're going to spend staggering amounts of money on [capital expenditures]," Tesla chairman and CEO Elon Musk said on an investor call. He then added: "For a good reason. And with a great ROI [return on investment]." They're bold plans, and Musk is clearly willing to put Tesla's money where his mouth is. That's why the company is projecting a whopping 70-percent increase in deliveries this year, for a total of 55,000 cars. A large chunk of that growth will come from the addition of the Model X crossover to Tesla's portfolio, and the company already has nearly 20,000 reservations for it. More than 30 Model X prototypes have been built, and it is expected to begin shipping to customers this summer. Musk said he's "highly confident" the vehicle, which has experienced delays, will arrive on time. The company also had more than 10,000 orders for the Model S at the start of the year. The big spending plans caused a stir, even though Tesla spent $369 million on capital expenditures in the fourth quarter alone. In a note to investors, Morgan Stanley analysts called the costs required to keep pace with Tesla's demand "eye-wateringly high," and said the $1.5-billion figure was nearly double their expectations. Still, Musk is not thinking small and suggested that his company could be as big in 10 years as Apple is now if Tesla's growth continues. His optimism comes as the company actually reported a $294-million net loss in 2014, more than its $74-million loss in 2013. The money, however, continues to roll in, and total revenues increased to $3.2 billion in 2014, up from $2 billion in 2013 and a dramatic surge from $413 million in 2012. More of the same is expected this year, and the company could reach $6 billion in revenue. As Morgan Stanley noted, it "seems Tesla is preparing to be a much larger company than we have forecasted." It's certainly spending that way.

Recharge Wrap-up: BMW i3 to get more range, a call for EV signage

The BMW i3 will get more range next year, and BMW will announce another i model soon. BMW CEO Harald Kruger didn't say by how much the i3's electric range would be expanded (it currently gets 81 miles on a single charge, or 150 with the range extender). He did say that a third, yet unnamed i car would be out "soon," and that it would be larger than the i3. We've heard rumors of an i5 for years now and BMW has previously stated that a new i car would not be based on an existing model. Read more at Green Car Reports. Where is the sun visor in the Tesla Model X? With a huge panoramic glass roof, Tesla had to be pretty inventive with its design. The sun visor is tucked away in the A-pillar and held in place by a magnet. It pulls out, and swivels overhead. A magnetic peg pops out to attach the end of the visor to the rear view mirror housing. From there, it can be rotated, or one can flip out a panel to create a larger shade. The vanity mirror is hidden behind another panel inside the visor. Have a look over at Teslarati. Nissan and Ecotricity are calling on the UK government to create road signage for EV charging points. There are currently over 9,000 places for drivers to charge their electric vehicles throughout the UK, but no official signage to tell them where they are. "It's time to introduce charging point road signs in Britain," says Ecotricity founder Dale Vince. "They'll provide necessary direction for the thousands of electric car drivers in Britain as well as increasing public awareness that the infrastructure is ready for them to make the move to an electric car." Nissan and Ecotricity suggest that symbols to designate the different types of charging available would also be helpful to EV drivers. Read more at Green Car Congress, or in the press release below.

Tesla open-sources all its patents

When Tesla CEO Elon Musk says that he's thinking about something, you definitely need to pay attention because it's likely something big. In an eloquently worded press release (a very rare thing indeed) Musk explains reason after reason why Tesla is opening up all of its patents, effective immediately.
According to the missive, Tesla initially applied for patents on its technology because it was afraid bigger, more powerful automakers would take its ideas and destroy the tiny automaker. However, that hasn't happened. Musk claims that while the company has grown, "electric car programs (or programs for any vehicle that doesn't burn hydrocarbons) at the major manufacturers are small to non-existent." At the same time, the global auto industry continues to grow, and Tesla's main competitors aren't from other electric carmakers, but the traditional internal combustion engine.
Musk claims that if you walk into the company's lobby right now all of its patent forms are gone from the walls. "We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly-evolving technology platform," he writes.