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Why Tesla will need more loans to make it through 2013

It's fun to bet against Elon Musk and Tesla - that's the best reason we can find for so many people doing it even though the man, his company and his cars are still here and still very popular. The latest name inscribed in the column labeled "Skeptical of Tesla" is John Shinal at Market Watch who, in year-end commentary on Tesla's financials, says that the "carmaker's financials are reminiscent of a dot-com's." He does not mean that in the good way.
To be fair, Shinal isn't exactly betting against Tesla, he's saying that if you check the bottom lines, the only thing keeping Tesla alive is the hundreds of millions in Federal Department of Energy loans it has received. Based on its filings, he says the company has less than six months of cash on hand, hasn't produced as many cars as it promised and had to lower its revenue forecast for 2012, has had a "year of net losses and negative operating cash flow," and was underwater by at least $37 million at the end of the third quarter.
But Shinal's not done there, summarizing Tesla as an operation with "a poor habit of failing to deliver to customers the cars it has promised them, while simultaneously raising the prices of those yet-undelivered cars," and "a lousy level of customer service." He says there are more damning things to be found in Tesla's SEC registration settlement from September, but we'll have to wait for his next column to find out what those are. The takeaway, in Shinal's opinion, is that even though Tesla will keep getting money from the government, that investors have no business dealing in Tesla stock.

Watch Wired go hands-on with Tesla Model S 4.0

Our friends at Wired recently got their hands on the latest software release for the Tesla Model S. The 4.0 release adds a few interesting bits of functionality to the EV, including voice control for the navigation and telephone systems as well as Slacker Radio. Tesla employed Google voice-recognition software for the Model S, and Wired says the system is "far easier and more intuitive than most." High praise.
The update also adds another level of customization to the EV's steering wheel controls. The right knob now offers finer audio volume control while the left knob can be configured to handle everything from temperature setting to fan speed or even the opening and closing of the sunroof.
Wired also reports the 17-inch touch screen on the Model S now seems more responsive and that the update includes new graphical displays for the vehicle's range. Other nice tricks include revised throttle response and an adjustment to the vehicle's door handles - now owners need only approach their Model S for the door handles to pop out from their hiding places. You can check out the video below for a closer look.

Tesla Model S is emissions-free burnout machine after pulling fuses

Add one more feather to the proverbial cap of the Tesla Model S. Road & Track West Coast Editor Jason Cammisa figured out how to make the electric luxury sedan extra frisky and then set about nuking the rear tires with electric-motor torque.
"Holy hell there's a lot of torque here," Cammisa wrote in his notes after pulling a fuse that took the ABS, stability control and traction control offline. That fuse also took out the speedometer and air suspension - no big deal - but power steering and brake assist went out, too, making hooning a parking-lot-only affair.
The best part is that they shot a video to accompany the hijinks, so you can see for yourself how the Model S does. If you want to try it for yourself, just be careful.

Musk reports positive cash flow for Tesla last week

According to Bloomberg, Tesla actually earned money last week. CEO Elon Musk sent out a message on Twitter saying his company was "narrowly cash positive." That's big news for a company that hasn't turned a quarterly profit as of yet. Tesla is currently in the middle of stepping up production for its Model S sedan, and has announced the vehicle's MSRP will jump by $2,500, presumably to help fund that expansion.
So far, Tesla says it has built will build around 20,000 Model S units at its California production facility next year, though analysts say the ability to repeatedly generate a positive cash flow would go a long way toward the company's evolution into a "sustainable operating entry." So far, the Model S has garnered substantive praise, earning the Motor Trend Car of the Year Award among others. Tesla shares are up 19 percent this year over the same time period in 2011.

Tesla Model S will get price increase

Tesla has confirmed the Model S will soon see a price increase. The company has yet to release details on how much more the critically acclaimed electric vehicle will cost moving forward, but has released a few details about how the shift will affect buyers with existing reservations. Tesla says the increase will not apply to anyone who has a reservation so long as they configure and finalize their order "within a fair and predefined timeframe." Likewise, those buyers who deferred their reservations will be able to keep the original pricing by finalizing their order within the same timeframe.
Tesla says the price shift will also include changes to the Model S option package structure, and that some features currently considered standard equipment will become added cost options in the future. As with the overall price increase, these changes will not impact those with current orders, reservations or deferred reservations. Expect to hear more about the price increase as information becomes available, and in the meantime you can read the brief press release below for more information.

Popular Science magazine's Best Of What's New 2012 all ate up with cars

Popular Science has named the winners in its Best of What's New awards, the victors coming in the categories of aerospace, automotive, engineering, entertainment, gadgets, green, hardware, health, home, recreation, security and software. The automotive category did not go wanting for lauded advancements:
Tesla Model S: the Grand Award winner for being "the standard by which all future electric vehicles will be measured."
BMW 328i: it's 2.0-liter turbocharged four-cylinder gets called out for being more powerful and frugal than the six-cylinder it replaces.

Consumer Reports weighs in with its first Tesla Model S review

Everyone has been chiming in with their thoughts on the Tesla Model S lately, and with the car taking home awards like the prestigious Motor Trend Car of the Year, this probably won't change anytime soon. Not wanting to be left in the dark, Consumer Reports has managed to get its hands on a Model S to give its own impressions of the luxurious electric hatchback.
Like many other outlets (including our own first drive), CR praised the Model S for its styling (which it compares to an Audi A7) and performance (which it says "can put serious hurt on a Corvette"). With limited time with the car, the video doesn't touch on the specific range the institute attained, but it appears most of the car's time was spent on the track anyway.
On the flip side of things, CR dinged the Model S for its retractable door handles which the reviewer refers to as "fussy," and as much as CR has blasted Ford and its MyFord Touch for being distracting and largely button-less in the past, we were surprised at how much it seemed to adore the lack of buttons on Model S. They even glossed over the fact that drivers can surf the Web on the 17-inch touch screen while driving.

Supra successor may be all-electric sourced from Tesla; MR2 returning too?

Rumors of a revival of the Toyota Supra and MR2 have been swirling for years right up until just this week when high-level Toyota employees all but confirmed their return.
But now The Detroit Bureau has put together news from different sources suggesting that the next Supra might be all electric. The report cites recent comments from Toyota senior executives hinting at plans to work with Tesla on a new joint project. The FT-HS Concept (shown above) seems a logical inspiration for a new Supra.
And on the other side of the equation is Tesla's design chief Franz von Holzhausen who was quoted last year saying his company was looking at its next project, probably a sports car, that would follow next year's intro of the Model X. He went on to suggest the car would compete directly with BMW's 3 Series, which, in coupe form, could be a worthy competitor to a Supra as well.

2013 Motor Trend Car of the Year: Tesla Model S [w/video]

Eleven cars enter, one car leaves. Silently and with zero emissions.
Tesla has earned one of the most coveted prizes in the automotive world, as its Model S has taken home the Golden Calipers as the 2013 Motor Trend Car of the Year. In the process, the Model S beat out a field that included 10 other contenders.
In case you were wondering, this is the first time an electric car has earned this accolade. No internal combustion here, folks. In an impressive run the Model S was also named Automobile Car of the Year and one of the 25 Best Inventions of the year by Time Magazine.

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.