Manny Lopez does not appreciate Tesla Motors getting $465 million from the Department of Energy. The Detroit News columnist wrote an article published today that calls the money "an all-out gift to Tesla, the Silicon Valley startup that makes cars for the rich and famous" and said that Tesla "has friends in Congress who are making decisions without regard to facts and figures." The rest of the article is just a bunch of whining about how almost no-one will ever get to drive or buy a Roadster or a Model S. "I'm sure these are fun cars to drive," he write, "...But that's not how our dollars should be spent, propping up millionaires and billionaires, who, unlike their Detroit CEO brethren, fly in private planes when they're not toying around town in their electric cars.

Whew.

As Business Insider notes, the article gets a lot of things just wrong. Lopez calls the money a gift, when it's really a loan. He doesn't mention the strong support that Ford (another DOE winner) and other automakers have in Congress. And what is that about CEOs and private planes? (Lopez also wrote that Tesla got $425 million, but whatever). Lopez says that there is merit to giving Ford money, because "it will make in a dozen factories to build more gas sippers." Does Lopez think there is no merit in inspiring a new generation of electric car fans and, you know, actually selling some EVs?


[Source: Detroit News, Business Insider]

After many months of anxiously waiting, Tesla Motors officially got the word from the Department of Energy that it would the loan interest loans that it was seeking. Tesla and the DOE announced that the California EV maker will get two loans totaling $465 million from the Advanced Technology Vehicle Manufacturing program (ATVMP). $100 million will be used to set up an electric powertrain manufacturing plant to provide components such as motors and battery packs to other automakers.

The bulk of the cash, $365 million, is allocated for production engineering and a factory to build the Model S. Both factories are expected to be built in existing facilities and Tesla is in negotiations for locations in California. Tesla hopes to start production of the sedan by the end of 2011.

Update: Tesla spokeswoman Rachel Konrad let us know that the powertrain plant will produce motors, power electronics, chargers and battery packs for both Tesla branded cars and other customers.


[Source: Tesla Motors]
Photos copyright ©2009 Drew Phillips / Weblogs, Inc.

The U.S. Department of Energy will finally announce the first recipient of low interest loans under the Advanced Technology Vehicle Manufacturing Incentive Program. The first winner is Ford, and analysts expect the DoE to announce Nissan and Tesla Motors, as well. Ford applied for up to $11 billion in loans, but the amount it will get has not been disclosed and will likely only be a small fraction of that in this first round. The Dearborn-based automaker will use the money to fund its electric vehicle program that will launch a battery-powered version of the Transit Connect in 2010 followed by a C-segment car in 2011.

Nissan wants to add production of its upcoming electric car and lithium ion batteries at its assembly complex in Smyrna, Tennessee. Tesla, however, would be the big winner this round, as the money it may receive will allow the fledgeling EV maker to proceed with completing development and production of the Model S. Recent investment in the company by Daimler was probably a big help in getting the loan approved, since companies had to demonstrate viability. And since the ATVM program favors re-tooling of older existing plants, Tesla will probably look at acquiring a closed factory from another company. Recent rumors had the company possibly getting a former McDonnell-Douglas factory in Long Beach, although there are plenty of other properties available.

The current Chapter 11 bankruptcy proceedings at General Motors and Chrysler made those companies ineligible in the current round. It's not known if any announcements will be made about loans for battery makers like A123 or EnerDel.



Photos Copyright ©2009 Sam Abuelsamid / Weblogs, Inc.

[Source: Detroit Free Press]

Shortly after Tesla Motors co-founder Martin Eberhard filed a lawsuit against Tesla Motors and its Chairman, Product Architect and CEO Elon Musk, the Silicon Valley automaker had this to say:

This lawsuit is a fictionalized, inaccurate account of Tesla's early years -- it's twisted and wrong, and we welcome the opportunity to set the record straight. Incidentally, Tesla will also be filing counterclaims and in the process present an accurate account of the company's history.

The first bit of record resetting has shown up on the official Tesla blog. Not surprisingly, Elon Musk has lots to say in regards to the early years of the Roadster's development, and he seeks to offer his side of the story, along with a number of emails to back up his claims.

What does Musk say? Well, his initial response is a long, informative and extremely interesting read. Here are some choice lines:

• The facts are that when I requested through AC Propulsion to meet Eberhard, he had no technology of his own, he did not have a prototype car and he owned no intellectual property relating to electric cars.
• At the time [early 2004], "Tesla Motors, Inc." consisted of Eberhard, Tarpenning and Wright, plus an unfunded business plan and they were looking for an initial round of funding to create a more advanced prototype than the AC Propulsion Tzero. While there was a basic corporation in place, Tesla hadn't even registered or obtained the trademark to its name and had no formal offices or assets.

There's more after the jump.


[Source: Elon Musk / Tesla Motors]

Wondering how much Tesla Motors might be worth on the open market? It would seem the actual figure would depend you who you ask. Based on the assumption that Daimler paid $50 million for nine-percent of Tesla, the Silicon Valley automaker would theoretically be worth $550 million.

According to SharesPost, which bills itself as a community for private equity transactions and the central hub for private company research and valuation data, Tesla's value is actually much higher: roughly $1 billion. To come up with that figure, SharesPost contracted Next Up Research to create a report that supposedly takes into account current revenue from Roadster sales as well as expected revenue from the Tesla Model S and a future electric vehicle, codenamed Blue Star, which will be smaller and cost less than the S.

Next Up outlines the potential risks in investing in a startup automaker like Tesla, such as a "lack of significant cost or performance advantage" over conventional sports cars, the vast number of expected competitors and possible safety issues with using advanced lithium ion batteries. Clearly, there are some major assumptions at work here.


[Source: Earth2Tech]

Speaking at the Wired Business Conference that's currently taking place in New York, Tesla Motors CEO Elon Musk had some rather interesting things to say. For instance, Musk believes that gasoline "should probably be $10" per gallon. While that doesn't sound like a popular sentiment for those Americans struggling with the thought of paying just $3 per gallon, but Musk offers an environmental reason to promote higher fuel prices:

I'm not paying for the true cost of gasoline at the pump...since nobody's explicitly paying for the CO₂ capacity of the oceans and atmospheres, it's getting consumed. We will pay for it down the road, but we are sort of ignoring it for now.

Naturally, Tesla Motors stands to benefit from the high cost of gasoline though the sale of its electric cars – possibly at the expense of the current crop of automakers – but Musk doesn't have all bad things to say about the Detroit-based competitors:

I think it'll probably be a healthier place... I think this will be a cathartic experience. I think GM and Ford, maybe not Chrysler, but GM and Ford will come out of this healthier... and more competitive.

Further, Musk says he'd "like to take up some of the manufacturing plants. When the mess gets sorted out I'd like to have a conversation with whoever's in charge."

And what of the current crop of environmentally-friendly automobiles? Musk's not a big fan, saying, "A Prius is not a true hybrid, really. The current Prius is like, 2 percent electric. It's a gasoline car with slightly better mileage."

[Source: CNET]

Martin Eberhard has obviously been busy these last few weeks. With a lawsuit currently pending in court against Tesla Motors and its CEO Elon Musk, Eberhard has apparently still had enough time to write an interesting article on the effects of blogging and how it helped build the Tesla Roadster. Specifically, Martin is referring to Tesla's official blog, the first post of which Eberhard wrote shortly after the Roadster's official launch back in the summer of 2006.

According to Eberhard, blogging promotes transparency and builds credibility, is the ultimate real-time focus group, supports team building and is the single most efficient tool for reaching mainstream media. Those points, along with the importance of a blogger having "a voice," make up the subheadings of Martin's article. It's an interesting read, and if you're so inclined, click here for the entire posting.

[Source: Tendo Communications]

There are 146 pages in the complaint filed by Tesla Motors co-founder Martin Eberhard against the company and current CEO Elon Musk (download the PDF here and read more background on the story here). It'll take a while to go through and understand the whole thing (we're not lawyers) and there will be reams more documents released as the case moves forward, but for now, here are some of the things that jumped out at us in the first skim through (all of these statements are alleged):



There's more after the jump.

UPDATE: Added Speed and Motion HD Video after the jump

Just what do you call a gathering of 30 or so Tesla Roadsters all in one place? A gaggle? A flock? After taking a look at the photos of such an event from our friends at Speed and Motion, we'll go with convoy. This crowd was brought together to commemorate the one-year anniversary of Tesla's first retail store and the delivery of the 500th Tesla Roadster, meaning that the cars you see in the pictures below represent less than a tenth of total Roadster production so far. Elliot from Speed and Motion describes the experience this way:

What a treat it was to experience 60 miles along the streets and freeways of LA including a run through the scenic Malibu canyons. What surprised me was how quick (0-to-60 mph acceleration of 3.9 seconds) and agile in the corners this electric vehicle really is on the road. We made a pit stop at the Rock Store before heading over for a wonderful barbecue at Greener Pasture Ranch, a Tesla customer's private home.

Riding in these cars is so peaceful and tranquil. It sure was a change from the loud and wild exotic cars that we are used to experiencing here at speedandmotion! One thing I can say for sure is the owners are such a spirited and lively group, not to mention car aficionados at heart.

We've got 20 pictures in the gallery below that are almost too much if you're a Roadster fan. See the rest of the photos here and be sure to click past the break for a couple of videos that were taken during the event, along with the official press release.


[Source: Speed and Motion]

It'll be that much easier to test drive a Tesla Roadster in seven cities - New York, Seattle, Chicago, Miami, London, Monaco and Munich - very soon. These cities are where Tesla plans to open its next batch of stores (officially, "Sales & Service Centers") and the first of the batch, New York, Seattle, London and Chicago, should open later this month. As much as possible, Tesla has picked store locations that "quick access to nearby highways and suburbs, giving prospective owners an opportunity to experience Tesla's best-in-class performance under a range of driving conditions." Seems smart.

In related news, a Roadster owner living near San Francisco decided it would be a fun thing to drive to Yosemite National Park. It took some planning to make sure the electric car wouldn't run out of juice during the 400+ mile round trip. The pictures and write-up of the drive are enough to make just about anyone jealous.


[Source: Tesla]