CORRECTION: This is an updated version of this morning newsletter with an important correction. The previous version had a Model 3 story titled "Tesla trying to upset some Model 3 reservation holders to Model S 60" but the actual title is "Tesla trying to upsell some Model 3 reservation holders to Model S 60".
This week in Tesla news. And a special thanks to Johanna C for using my referral link (http://ts.la/david7556) to order her Model X 75D.
Model S
The story behind the ‘false’ Tesla suspension complaints to NHTSA
As Elon pointed out, 37 out of the 40 complaints listed on NHTSA’s website contain false or misleading information. That’s because the owners of vehicles didn’t file the complaints, but someone named Keef Leech did, also known on the internet as Keef Wivaneff and other aliases. Leech’s claim to fame is to have “busted” a scam to sell bogus “solar harvesting devices” in Australia. He describes himself as someone who “bust green scams” and for the past few years, this role can be summarized as “attacking” companies with an environmental aspect, like Tesla.
Referral Program ends July 15
Tesla's latest referral programs gives customers $1000 off a purchase of a new Model S or X (includes inventory cars) and is a great deal especially when combined with federal and state incentives. I have 3 more slots for people to use my referral code (http://ts.la/david7556) and if you do use my code please let me know so I can personally thank you. I also have a comprehensive guide to using the referral code (especially if you've already placed your order), and you can just reply to this email "Please send referral guide" and I will email it to you.
Model X
Tesla Plans to Sell Its Electric Cars At Nordstrom
On Saturday, Tesla Motors, Elon Musk’s Palo Alto-based manufacturer of electric vehicles, will open one of its "galleries" in Nordstrom at The Grove, the Los Angeles retail multiplex owned by billionaire real-estate magnate Rick Caruso. Tesla will feature its Model X SUV inside the boutique-ish, 400-sq. foot outpost, and try to entice Nordstrom shoppers with mix-and-match interior car panel displays, as well as on-site test drives with Tesla employees.
Video: Beijing Meets Model X
China is the first country in Asia to receive Model X. 400 Guests gathered at the Diaoyutai state guesthouse in Beijing to celebrate its arrival. The highly anticipated SUV appeared on stage carrying a family of 7 and their luggage.
Model 3
Tesla applied for a $106 million tax break on $1.26 billion expansion of Fremont Factory for the Model 3
According to state records obtained by Reuters, Tesla plans to spend $1.26 billion on the expansion of the Fremont Factory for the Model 3 build plan. The company is requesting tax breaks on the purchase of equipment to build its new assembly line for the Model 3. It would represent the continuation of deal the state already made with Tesla when the company first took over the NUMMI plant after Toyota and GM closed it. The state ofCalifornia already approved over $90 million in tax break since Tesla started building its manufacturing capacity in Fremont.
Tesla trying to upsell some Model 3 reservation holders to Model S 60
I'm on the M3 waitlist, and got this interesting email from Tesla last night trying to sell me on a MS 60. I think this is a clear indication that Tesla specifically introduced the MS 60 to try and lure M3 people that don't want to wait or feel the lower price point will now make them buy. "We are thrilled to have just launched the new Model S 60 and as a valued model 3 reservation holder I wanted to personally reach out to invite you to University Town Center Showroom to experience Model S 60 and 60D. It is a wonderful opportunity to get into a custom designed Tesla with payments starting at $667/mth before gas and tax incentive savings. Depending on your current vehicle trade-in value the monthly payment could be even lower."
What hurts Nissan Leaf sales: Tesla Model 3 or Chevy Bolt EV electric cars?
The numbers are in, and for the Nissan Leaf electric car, they're not pretty. Despite a boost in its EPA-rated range from 84 to 107 miles, its year-to-date sales of 4,697 units are down 40 percent on the 7,742 that were sold in the same five months last year. And those were down on the total of 10,389 over the year-earlier total during the first five months of 2014. A host of reasons for the steady decline is possible, but journalist Brooke Crothers suggested in Forbes that it's all due to what he calls the "Tesla Model 3 effect." As defined under the more general category of the Osborne Effect, this is essentially a whole host of interested buyers for an existing tech product choosing to postpone their purchases because a new, better, cheaper, more capable product has been announced for some point in the future. Crothers suggests that the publicity around the 400,000 people who gave Tesla $1,000 each for a place in the waiting list for those Model 3s has convinced many potential Leaf buyers that Something Much Better is just around the corner.
TSLA
The Catalyst For Tesla Is Production
If Tesla simply keeps pace with Ford’s Model T, it should have no issues producing 500,000 cars by 2020. Remember, when Ford first started building vehicles for the mass market, its assembly line consisted entirely of manual labor. The manufacturing today is a lot more automated with sophisticated robots doing most of the work. Tesla has more than 160 robots in their Fremont manufacturing facility that can build and assemble a vehicle with speed and accuracy. It takes about six seconds for a part to be stamped out from its aluminum coils. Today, there’s still a significant amount of manual labor in Tesla’s building process, but that’s only because it’s still in its initial stages and needs to be tweaked and modified until it’s perfected. Once that’s achieved, the ramp-up speed will be significant. I estimate that Tesla will have produced over 450,000 vehicles by the end of 2018 if everything goes as planned.
Other News
Why the Tesla and electric car boom could actually be very good news for the grid
This is either a huge coming problem — or a huge opportunity. The Rocky Mountain Institute report sees it as the latter. The idea is that if we can find ways to shift when this growing fleet of electric vehicles charge up — either toward daylight hours, when they’re more likely to be powered by solar, or to overnight hours, when electricity is cheap — then it opens up a number of options and efficiencies. The result, the report says, could actually be more renewables on the grid, fewer greenhouse gas emissions and cheaper electricity prices.
Disrupting The Auto Industry: The Startups That Are Unbundling The Car
Using CB Insights data, we identified a host of private startups that are working not only in self-driving tech and automated driver assistance but also to improve different services and products associated with the auto industry. These range from high-profile autonomous driving startups like comma.ai, backed by Andreessen Horowitz, to companies focused on enhancing more traditional elements, like auto repair and tire technology.
Promotion
Ride the Lightning: Tesla Motors Unofficial Podcast
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