California = Tesla + Toyota

[vfx]

I recent mullings Tesla has said the 300 mile version is not even being offered for years after the launch of the S.

 

[TEG]

He has actually said he wants to build electric jets at some interview. I of course can't remember when or where, but that cameo is in many ways true yes.

Cobos

Dreams Of Electric Airplanes

 

[TEG]

my point was that the $50,000 Model S is supposed to go 160 miles on a charge and getting the 300 mile battery pack, which is what the media most often quotes when talking about the Model S, will mean customers will be paying $65,000+ for a base Model S with a 300-mile range.

The problem with that is "Joe Average" who isn't well educated on electric cars will believe (and probably argue) that the $50,000 Model S has a range of 300-miles due to the way the press talks about the Model S and I'm curious as to how Tesla is going to address that issue.

Yes, this concern has been expressed before many times. I suspect the sales/marketing guys don't mind too much if people make the 'mistake' of assuming that you get the premium features at the base price. In fact, I think the auto industry tends to do advertising that encourages those misconceptions. Some people will become disillusioned at the last minute and back out, but others will have decided they want the product already by then and the 'oh that costs extra?' still doesn't scare them away.

 

[dpeilow]

Musk says hiring ex-NUMMI workers is top priority for Tesla

 

[Norbert]

In its May 20th press release, Tesla is actually quite clear on the 300 miles range battery:

http://www.teslamotors.com/media/press_room.php?id=2510

The Model S is expected to be the first pure electric premium sedan and is designed from the ground up to take full advantage of the electric vehicle architecture. The sedan, which Tesla unveiled in March 2009, has an anticipated base price of $49,900, including a federal tax credit, and is intended to deliver the foremost design and technology in the automotive world. With an optional extended-range battery pack, the Model S will travel over 300 miles per charge.

 

[TEG]

That is good, but if you go here: http://www.teslamotors.com/models/
It shows the $49,900 base price, then the overview specs below show 300 mile range with no mention of 160 mile range there. (Although, if you click over to the range tab, then the specs change to "up to 300 mile range" but that isn't what you see at first.)

The association of the base price with the 300 mile range got propagated into the title of various old stories about the Model S:

Popular Mechanics: Tesla Model S Sedan Unveiled: 300 Mile Range for Sub-$50,000
Autoblog: Tesla Model S: $50,000 EV sedan seats seven, 300-mile range, 0-60 in 5.5s
The Car Connection: Tesla Model S: $49,900, 7(ish) seats, 0-60 in 5.6, 300-mile range

I gather the original press release set the tone that ought to be corrected.
Tesla Model S: $50,000 EV sedan seats seven, 300-mile range, 0-60 in 5.5s

PRESS RELEASES:
At a Glance: Production Model S
With a 300-mile range and 45-minute QuickCharge, the $49,900 Model S...

 

[vfx]

A guy at work yesterday said he heard Elon and the Downey mayor making nice on the radio.

I asked NPR and he said yes. Was not able to find it. maybe he was mistaken.

 

[TEG]

On a related note:
Jump Start: NUMMI Is Reborn For Electric Cars

 

[Rarity]

A guy at work yesterday said he heard Elon and the Downey mayor making nice on the radio.

I asked NPR and he said yes. Was not able to find it. maybe he was mistaken.

http://www.kcrw.com/news/programs/ww/ww100524tesla_motors_wins_th

 

[doug]

http://www.kcrw.com/news/programs/ww/ww100524tesla_motors_wins_th

If you download the mp3, the relevant part seems to start at the 8:30 mark.

 

[doug]

The Specifics of the Tesla and Toyota Deal - Darryl Siry’s posterous

So far, tesla has agreed to purchase NUMMI for $42M. That's it.

 

[stopcrazypp]

The Specifics of the Tesla and Toyota Deal - Darryl Siry’s posterous

Wow only $42 mil, with the $50 mil investment, it sounds like a good deal. I doubt Downey could match the terms. Don't know if there is rent there though (like the Downey situation).

 

[Albern]

$42-million for a facility like that looks like a great deal.

I know details are still a little sketchy but:
- does this mean Tesla owns 100% of NUMMI?
- Toyota in the joint venture will be leasing a few lines at NUMMI once they're ready to produce their EV?

 

[rolosrevenge]

I just really hope Tesla keeps the UAW out of their plant. The sort of baggage the UAW brings along will not be helpful for them as they start out.

 

[PopSmith]

Getting NUMMI for $42 million should allow Tesla to use the extra $8 million as funds to at least partially retool the factory to build the Model S.


Does anyone here know who owned NUMMI prior to Tesla buying it? I am curious because I remember reading that Tesla had to use real estate with specific conditions in order to use the funds from the ATVM loan.

 

[Bradleybang]

NUMMI was an independent company, a joint venture (co owned) manufacturing facility between Toyota and GM. GM spun their ownership in NUMMI to their bankrupcy company called "Motors Liquidation Company".

NUMMI owned real estate (the site and buillding) which Tesla bought.

Yes, the federal funds dictated a brown site. That means they had to adapt from an exisitng facility and not build a new ground up new factory.

Both the Downey site and the NUMMI site fit the definition.

 

[doug]

Yes, the federal funds dictated a brown site. That means they had to adapt from an exisitng facility and not build a new ground up new factory.

Both the Downey site and the NUMMI site fit the definition.

But San Jose and likely the New Mexico site (though it wasn't an issue back then) did not.

 

[Iz]

Based on the information available it appears NUMMI requires less start up efforts than Downey would have.

 

[doug]

I think any way you look at it, NUMMI is a big win for Tesla even if nothing else comes out of their dealing with Toyota.

Toyota Deal Not a Silver Bullet for Tesla’s Mass Market Goals - earth2tech

 

[TEG]

Buying an old company that owns real estate is a nice way to get a low property tax basis in California thanks to Proposition 13.