Toyota Prius Prime Tops May EV Sales Charts In US

EV sales in the US continued their strong growth in May. Topping the charts was the Toyota Prius Prime. Despite critically short supply, Toyota still managed to move 1,908 examples of its latest plug-in hybrid, giving it the US sales lead over the Tesla Model S, the Chevy Volt, and the Chevy Bolt. (Note: Model S and Model X sales are estimated. Tesla does not announce monthly sales totals and does not break out sales by nation.)

The Chevy Volt is leading the US sales race for the year versus the Tesla Model S, 9187 to 8645. Of course, when you combine Model S and Model X sales, Tesla is the clear overall winner. And for those who want to debate whether a plug-in hybrid should really be considered when reporting EV sales, we have had this conversation before and the answer is yes, they should be. Someday, plug-in sales will wane just as hybrid sales have done, but for the next decade or so, they will continue to be an important part of the transition away from traditional fossil fuel burning cars.

Ford has yet to announce is May sales numbers, but there are some interesting things to note in the chart. Chrysler sold 205 of its Pacifca Hybrid minivans in its first full month on sale. That’s a pretty good start for this brand new vehicle and it will be interesting to track its sales numbers over time.

The lowly Fiat 500e posted 665 sales. Since the vast majority of those are in California, it is interesting that the BMW i3, which is sold nationwide, only managed a dismal 18 sales. The Nissan LEAF continues to pick up sales, even as customers await the arrival of the second generation car later this year. The LEAF has established a reputation for being comfortable and reliable, if a bit odd in the styling department.

Overall, EV sales were up 25% over May last year and are up 40% through the first five months of 2917. Are the numbers still small compared to the total new car market? Yes, they are. But if this pace continues, the tipping point between conventional cars and those with plugs is getting closer every month.

Source and chart: Inside EVs

Tesla Quietly Introduces Model X With 60 kWh Battery

Some of the things Tesla Motors does are bizarre. It is either shouting about new developments from the highest rooftop and creating as much media buzz as possible — as it did when it introduced the upcoming Model 3 to the world earlier this year — or it is slipping them in the back door during the night shift. Such is the case with the latest Model X news.

Tesla’s version of a sport utility vehicle, was originally supposed to come with a 60 kWh battery in the base model. But before any of those cars got built, it upgraded its smallest battery to 70 kWh and then to 75 kWh. Last night, the Model X 60 quietly appeared without fanfare on the Model X Design Studio page of the Tesla website. The new model lists for $9,000 less than the previous entry level version, the Model X 75.

Last month, Tesla did the same thing with its sedan. It introduced a new base model called the Model S 60 priced $8,500 less than the Model S 75, but with a twist. The car actually has the 75 kWh battery installed, but it is software limited to 60 kWh. The owner or subsequent purchaser can choose to have that electronic lock removed for an additional fee of $9,000 after the car is manufactured. Presumably, Tesla will use the same strategy with the new Model X 60.

Performance of both Model X cars is identical — 130 mph top speed, 0-60 in 6 seconds. The towing capacity of 5,000 lbs is the same. The only difference is 200 miles of range versus 237 miles of range. Having an extra $9,000 in your wallet at the end of the day may take away some of the pain of knowing you have an extra 37 miles of range available under the floor boards that you can’t access.

The Model S 60 is available with dual motors and all wheel drive for an extra $5,000. Having a dual motor option for the company’s all electric SUV would seem a choice many buyers would like to have,  but there is no mention of dual motors for the 60 kWh version on the Tesla website….. yet. Check back tomorrow. With Tesla, you never know what might happen overnight.

Both the 60 kWh and 75 kWh versions of the Model X are available for delivery in late September, according to the Tesla website.

Extra $25,000 Off A Model X Thanks To Tax Loophole?

Well, Fred Lambert has stumbled across a very interesting possibility. We all know that there are a ton of ridiculous tax loopholes out there. We also tend to figure that they don’t benefit “the good guys,” but sometimes they can.

Fred has pointed out that what is informally referred to as the “Hummer Tax Loophole” could benefit buyers of the Tesla Model X. The loophole used to allow for tax deductions up to $500,000 when you bought heavy vehicles or equipment (that would presumably be used for some industrial activities). It now just allows for $25,000, but that’s still a notable chunk of money.

I imagine you’re now curious how this applies to a Model X. Fred explains it like this: “Under the Section 179,  a SUV or Crossover, like the Model X, needs to have a gross vehicle weight rating (GVWR) of over 6,000 lbs to be eligible for the tax deduction. Tesla has yet to confirm the official GVWR of the Model X, but a little extrapolation from the specifications of the Model S, which is built on the same platform as the Model X, shows that Tesla’s new SUV could easily reach over 6,000 lbs.”

Fred gets into more details (check them out at the link above if interested), but here’s the snapshot story:

• GVWR for the Model S is 5,710 lbs
• Elon has stated that the Model X is ~10% heavier
• that makes the Model X GVWR 6,170 lbs (i.e., >6,000 lbs)

I’m not a tax specialist and can’t really say if this is the full story or if some critical detail is missing here, but the way it’s laid out, it looks like the Model X should be eligible.

Combine that with the $7,500 federal tax credit, and you’ve just chopped $32,500 off the price of a Model X. And if you make under $250,000 a year and live in California, you can bump that up to $35,000 — just enough to purchase your own Tesla Model 3 (with no incentives).

Image by Andrew Butko (CC BY-SA 3.0)

Tesla will deliver 70 percent more vehicles in 2015

While everyone would still like Tesla Motors to announce monthly sales numbers, at least we now have the latest quarterly delivery figures from the all-electric automaker. Tesla says it delivered 9,834 vehicles in the last quarter of 2014 and built 11,627 vehicles. Tesla says the production delays for the new, dual-motor P85D version of the Model S pushed some deliveries back to the first quarter of 2015. That 11,627 is a record number of vehicles made in any quarter for the automaker and it helped Tesla hit its stated goal of building 35,000 vehicles in 2014.

In its latest shareholder letter released today, Tesla said it expects to increase its number of vehicle deliveries by more than 70 percent in 2015. That includes the Model S as well as the upcoming Model X, which is going to start deliveries within the next six months. At the start of 2015, Tesla says, it had "over 10,000 orders for Model S and almost 20,000 reservations for Model X." The company says that over 30 beta versions of the X have been built and are being tested. We saw one just the other day, in fact.

Regarding reports of low Model S sales in China, the letter says, "Despite initial challenges in China, we remain convinced of the vast potential of this market and are concentrating our efforts on the cities we are in currently, before launching into new cities."

Tesla also reported a loss of $107.6 million in the fourth quarter of 2014. The company said it had a loss of 86 cents per share. Losses, adjusted for non-recurring costs and stock option expense, were 13 cents per share. The results fell short of Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 25 cents per share. The electric car maker posted revenue of $1.1 billion in the period, which also fell short of Street forecasts. Analysts expected $1.19 billion, according to Zacks. The automaker says its fourth-quarter profits fell from the impact of a strong dollar and delayed vehicle shipments. TSLA was down $3.49 today, a drop of 1.61 percent, to $212.80. The stock is up slightly more than 8 percent in the last 12 months but shares dropped two percent to $208.65 in aftermarket trading.

Musk Loses: Tesla Giving Up on Direct Sales Model

After bitter courtroom battles and a brutal stare-down of dealership lobbying groups across the country in a bid to establish a unique (in the auto industry) direct-to-customer sales model, it looks as if Elon Musk has blinked first, if his comments on Autoline Detroit last week are to be taken at face value.

“We may need a hybrid system,” explained Musk, in answer to an Autoline question about scaling up his fledgling car company. “… a combination of our own stores, and some dealer franchises.” (emphasis mine).

If it happens, it would be a stunning turnaround for both Tesla Motors and Elon Musk, who have built a rabid following and loyal customer base in part because of its radically different approach to selling cars and the transparency and customer access afforded by the lack of a franchisee/middle-man. You can read more about Musk’s apparent surrender in the article, below, which originally appeared on Cleantechnica.

Tesla Going The Way Of Franchise Dealerships? Elon Musk Hints, Yes!

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Elon Musk touting the idea of franchise Tesla dealerships? Sounds about right, doesn’t it? Wait- what!?

In a rather surprising comment — but, I guess he makes those a lot, doesn’t he? — Musk recently noted that as Tesla continues to expand it may need to utilize franchised dealerships, in addition to its Tesla Stores.

That’s a bit of a turnaround for Musk — and a bit humorous considering how hard the dealerships have been fighting against Tesla — but I guess that there’s some logic there. Once Tesla begins selling the Model X, and more importantly the Model 3, the potential is there for huge growth — perhaps a mixture of franchising and direct sales would be the right choice?

The comment was made in a recent face-to-face interview with Musk conducted by Autoline Daily’s John McElroy. Here’s McElroy’s summation of the question: “When I asked him if he could really scale up his retail model in all 50 states of the US and asked how they would handle maintenance and repairs. Musk admitted that relying exclusively on company stores probably was not enough.”

Here’s Musk’s exact words: “We may need a hybrid system, with a combination of our own stores and some dealer franchises.”

Some ambiguity there, but the comments do square up with those made by Tesla’s Legislative Director Jim Chen last year at an industry meeting.

“In a closed door regulatory meeting in fall 2013, two witnesses cited Tesla’s Legislative Director Jim Chen who told a room full of industry stakeholders Tesla only means to sell factory direct until it reaches an undefined minimum volume threshold,” Hybrid Cars notes. “At the time it was unclear whether Chen/Tesla meant such a thing, but this otherwise confirms what dealer associations have said, namely, that Tesla cannot likely grow the whole business to support Model 3 and beyond to the scale it wants with all that on its shoulders.”

With the release of the Model X fast approaching, I guess that we’ll probably find out sooner rather than later if there’s anything to these comments.

Source | Images: Autoline Detroit, Hybrid Cars, via Cleantechnica.

Tesla Joins Automakers To Replace Side Mirrors With Cameras

Tesla Motors and the Alliance of Automobile Manufacturers want to change the laws dictating the use of side mirrors, replacing them with video cameras.  In the never-ending war for better fuel economy, side mirrors are the latest battlefield, and eliminating these aerodynamic anchors could drastically improve the fuel economy of many vehicles.

As Jo has pointed out, making the relatively minor change of removing the side mirror winglets can add as much as 1 MPG to the overall fuel economy of a vehicle like the Ford F-150. By Jo’s estimates, an extra 1 MPG in real world driving would save over 22 million gallons of fuel per year…just on new F-150 sales. So while Ford has gone to great lengths to reduce the drag created by the side mirrors on the 2015 Mustang, and even built the new 2015 F-150 out of aluminum to save weight, getting rid of side mirrors would be an even bigger victory.

Tesla rekindled the passion for wingless cars with Tesla Model X concept, which debuted with video cameras instead of side mirrors…though at the Detroit Auto Show a year later, the Model X wore more traditional sideview mirrors. Volkswagen had the same idea with the XL1 concept, which also debuted sans side mirrors, as these are the cause of a lot of aerodynamic lift, especially at high speeds. Getting rid of those mirrors means much slicker cars, which can go even farther using less energy, whether that be electricity or petrol power.

That’s why the Alliance of Automobile Manufacturers, which represents Toyota, GM, Volkswagen and most of the other major automakers doing business in America, have joined in Tesla’s efforts to lobby Congress to change the laws to allow video cameras instead of side mirrors. Tesla and AAM submitted a petition yesterday to take the next step towards mirrorless cars. So while GM is resisting Tesla’s efforts to upset the dealer franchise model, they’re on board with Tesla’s efforts to get rid of side mirrors.

Go figure.

While a few years ago such a proposal might seem silly, Congress has opened the floodgates to this kind of lobbying by dictating that all-new vehicles made by 2018must include a back-up camera as standard equipment. It isn’t much of a jump from there to side cameras, instead of mirrors. I mean, if even the basest of base model vehicles now has to have a monitor on-board, why not use it for more than just backing up or changing radio stations?

Source: Automotive News