|
Tesla Motors was among the first automakers to apply for a low-interest loan under the Department of Energy’s Advanced Technology Vehicle Manufacturing Program. The program, created as part of the Energy Independence and Security Act of 2007 and appropriated in the fall of 2008, is unrelated to the current stimulus or “bailout” package of some American automakers. The goal of the bipartisan ATVM is to accelerate the production of fuel-efficient vehicles for mainstream Americans and reduce the nation’s dependence on oil.
As part of the loan application process, federal government scientists, engineers and analysts undertook a thorough evaluation of Tesla Motors, including an open-book inspection into our finances and intellectual property. Last June, the DOE announced that Tesla was among the first three automakers to win approval for the loans — along with Ford and Nissan. No money has yet been disbursed to Tesla. When it is, monthly audits will ensure that the money is spent in Model S and powertrain engineering and production costs.
Tesla will use the loans to support two specific projects:
- the US-based production, engineering, and assembly of the Model S, an all-electric family sedan. The Model S assembly plant will employ about one thousand workers in Southern California.
- a powertrain manufacturing facility in Northern California, which will build advanced EV powertrain components for other automakers. We hope that technology will enable other manufacturers to get affordable EVs on the market much faster than developing the technology themselves. The facility will employ about 650 workers. We already sell EV components to Daimler, which will soon begin marketing an electric version of its popular and affordable Smart car.
We’re already engineering the Model S, a seven-passenger family sedan that will have a base price of $49,900 after a federal tax credit that will cost the equivalent of a car that retails for $35,000, given the relatively expensive cost of gasoline vs. electricity. The Model S can be plugged into conventional outlets or be fully quick-charged from a higher powered system in as little as 45 minutes. The company unveiled a working prototype in March 2009. The Model S platform will also be used for derivatives including a minivan, cross-over utility vehicle and a utility van for fleets and other industrial or civic uses.
Thanks to the Roadster, Tesla is the only automaker producing and selling highway-capable electric vehicles in North America and Europe, and we’re proud of its success. Tesla has already delivered more than 700 all-electric Roadsters to customers in the United States and Europe. Twice as energy efficient as a Prius and six times as energy efficient as gasoline competitors, the Roadster is an American car that gets 244 miles per charge, according to the EPA. Tesla has never applied for or received any federal loans for the Roadster, but we’ve already delivered more than 700 to customers in the United States and Europe. It is the first production automobile to use lithium-ion battery cells and the first production EV to travel more than 200 miles per charge. The Roadster set a new EV distance record in April 2009 when it completed the 241-mile Rallye Monte Carlo d’Energies Alternatives with 36 miles left on the charge. It is an important proof of concept for Tesla. We are already using some of the same powertrain technology in the Model S and in even more affordable vehicles planned for launch in the coming years.
Posted in the categories: Company, Public Policy
Interesting post, I would, and no doubt many others, however like to hear a bit more about the experiences of the 700 Tesla drivers. Any separate blog / forum in which this is being discussed? Good to know the good and the bad as every decision to buy a car needs a ballanced view and reading all these bo no doubt the good will be taking center stage.
Most comments by actual users I found so far here: www.teslamotorsclub.com/
Just remember that it is early days to get “a balanced view” of a really very new product. You should first look for an opportunity to drive the car. This is a very special and not easily described experience as I learnt myself. If after that you still want to be a bit rational, you could consider your likely driving envelopes in terms of distance and speeds.
- Alfred
I’ve looked but haven’t seen any information about this Model S plant beyond it being in “Southern California”. Shouldn’t it already be at least under construction/conversion?
Excellent article. There’s been a great deal of noise about government loans paying for ‘elitist’ vehicles. Probably backed by another company that didn’t get picked.
Responding to ‘Bas’, above, I’d just relay i am pretty much head over heels in love with my car (a 2008 Roadster). That Tesla fundamentally changed perceptions too, about Electric Vehicles (EVs), was also evident at the recent car show in Germany. There EVs were all the rage and manufacturers are loading up on cool EV concept cars despite being late to the game on plug-in Hybrids and especially EVs, given a long focus there on diesel (and on H2 that has not panned out cost-wise).
Anyway once you drive a Tesla even once, it’s hard to consider going back to driving the old-fashioned “gassers”. Just my 2 cents … and I am biased in favor of (solar-powered) torque-laden electric cars - that needn’t to be slow like gassers! : - )
Rob Wilder
“The Roadster set a new EV distance record in April 2009 when it completed the 241-mile Rallye Monte Carlo d’Energies Alternatives with 36 miles left on the charge.”
That’s 277 miles total. Impressive if you consider that EPA rates it only 244 miles. 33 miles more. That’s nearly what GM Volt has at all.
Any data from that race? Graps to show? How much energy was used at what speed/accleration/deacceleration and what kind of terrain was that? Which ancilliary equipment were in use if any?
JB Straubel has very good graphs for Roadster, but those are quite general. I would like to see even more detailed analysis of how well different things affect its real-life performance.
If you can drive 13.5% more than EPA rates then 300 mile range for Type S would be 340.5 miles which is 545 km. That is so near the range I need that I really would like to see if it is possible to drive car in reality that far and how slow I would need to go. Road would be rather flat, so no mountains, only small hills here and there. How much would it affect if I drive 90km/h instead of 100km/h (56.25 instead of 62.5)?
The monies allocated for these loans will be money well spent. Tesla Motors has proof of concept as stated and is more than deserving of the respect that their loan signifies. These are taxpayer dollars ( namely mine ) that I have no qualms about being invested this way. I am sorry to say that I am not as comfortable with the much larger investments of (my) tax dollars in other areas of the automotive industry
Will it be possible to buy, sooner or later, a tesla’s car in Italy?
mgc
Very interesting article.
We just received our tesla for about a week ago here in denmark,
and we are so pleased to say that is one of the best car experience we have ever tried!
According to the topic.
The article says that “Tesla has never applied for or received any federal loans”?
Is that true?
Bas,
Unfortunately we Tesla owners are spending too much of our rare spare time driving our cars and don’t have time to blog about it. There is an overload at the Tesla dealership in Menlo Park of Roadsters that are waiting for their 12,000 mile checkups. These cars are being driven regularly and hard. In addition to driving over 80 miles a day commuting, I’ve taken ours on several road trips, including one from LA to Salt Lake City, Utah.
To Marco: You can order now. European versions are being delivered. Your best bet may be to call the Munich (+49 89 55 05 202 09) Tesla store. Further information you can find here: www.teslamotors.com/buy/buyshowroom.php
Choose your region as “Europe” top left, just below the Tesla logo.
- Alfred
This loan is great for Tesla as it allows them to stay private as long as possible, therein avoiding an IPO in a very unfriendly IPO market. Stay private as long as possible Tesla! I would love to see an enormous amount of money raised for this company in a couple years. I believe originally an IPO was supposed to fund the Model S, but now it can fund development of the “bluestar”. I love this company.
Timo, to increase the range from 300 to 400 miles would mean increasing the range by 25%. The charts in www.teslamotors.com/blog4/?p=70 shows a speed of about 55 mph for the 244 mile EPA rated speed on the Roadster (note the official EPA range rating was made using a “drive cycle” with varying speeds). To increase that by 25% to 300 miles would mean driving about 45 mph.
If the Model S has a similar efficiency curve, (thats a big “If”) then a rough estimate to get a 400 mile (644 Km) would also mean travelling at about 45 mph (72 Kmph). That might give you the range you need with a substantial safety margin. Of course, if you could take 1 or 2 rest breaks along the way and get a partial recharge, you’d be able to drive a bit faster than that! I’m hoping that lots of public recharging outlets will be available soon along major highways.
marco g. carle: Tesla Motors has started accepting online orders for Europe, but with a substantial backlog, it will take awhile before deliveries can be made. One drawback is that the nearest Tesla stores are in Munich and Monaco, a long ways to go for service. Tesla Motors will be opening many more stores as fast as finances permit, so eventually there will be Tesla stores in Italy.
when will it be available in China? China has a huge base of rich people which never care about costs,as high-price luxury items can show their social status. Yearly sales over 2,000 cars can be easily achieved. Beijing, Shanghai, Guangdong and Hongkong are the major 4 places for sale.
If they’re prepared to pay shipping, they could probably import them from the US. Probably have to make special arrangements for servicing, of course. Maybe pay to have a technician trained and based locally?
Doe funds Tesla and A123. Will Tesla use the A123 battery in the near future to strengthen/support the DOE investment(s)?
andy h; probably not. A123 batteries are very good for hybrids because they have good power density, but because they also have poor energy density they are not very good for pure BEV (not enough range). At least not current generation A123 batteries. Who knows about later versions.
When Tesla Motors will RUSSIA ??? In KAZAN ???
It’s very interesting idea ???
Can I buy Tesla S, if I live in KAZAN (TATARSTAN)?
Why is Tesla looking to build the Model S factory in the air quality challenged Southern California area? Air quality permits? Transportation permits? The transportation of components into the factory will be restricted to certain hours. Supplier infrastructure? It is just a very challenging place to attempt to build automobiles. Twenty years ago, it was a much different story. Why not just leverage the Daimler relationship to build the Model S on their CLS line and install power trains here in the same fashion as the Roadster.
I just wanted to congradulate everyone at Tesla Motors for doing a great job developing this company into what it is today. I strongly believe in the quality of your poducts and services. Being a big car enthusiast as well as a Public Health grad I greatly appreciate what you are doing for the environment as well. Without any doubt you will be amongst the leaders in the automotive industry in the near future. I cant wait to test drive one of your cars and see them in action on the streets of Chicago.
Best of luck, Sasha
Nice article as for me. It would be great to read something more about this topic.
Hi Diarmuid OConnell,
If they’re prepared to pay shipping, they could probably import them from the US. Probably have to make special arrangements for servicing, of course. Maybe pay to have a technician trained and based locally?
Will it be possible to buy, sooner or later, a tesla’s car in Italy?
??
This loan is great for Tesla as it allows them to stay private as long as possible, therein avoiding an IPO in a very unfriendly IPO market. Stay private as long as possible Tesla! I would love to see an enormous amount of money raised for this company in a couple years. I believe originally an IPO was supposed to fund the Model S, but now it can fund development of the “bluestar”. I love this company.
The recent news that Chrysler (now under Fiat) is scrapping the EV program it was happy to tout while trying to convince Uncle Sam to part with bailout money, makes Tesla look positively golden by comparison. The idea wasn’t to take the money and run. It was to take the money and make EVs run. Tesla is following through, while Chrysler/Fiat is apparently absconding with the cash. Those are YOUR tax dollars, my friends. Where is our stockpile of pitchforks, feathers, and cauldrons for boiling the tar?
Has a date been set to produce the Model S for the public? I live in southern California and want one.
Congratulazioni a Tesla Motors,
finalmente un progetto auto valido e rivoluzionario, un grande augurio di espansione globale ed efficace metodo ecologico!
BuonLavoro.
DP - ItaliaNoleggio.it
Fantastic!
Finally a real electric car. This is the future. I have a dream. I live in a country where Tesla was born. We have a lot of empty enterprise zones where the state provides many tax benefits. It would be nice to Tesla cars co. use reductions in memory of Nikola Tesla and here invest in a business project: production, sales … we have the infrastructure and there willing to help us in the solution of red tape. I like cars, I worked for Bentley, VW and Ferrari and electrical plants are my specialty. My biggest dream is to improve the electric motor drive to be need the lower battery and be mountable in all types of cars .
The best regards.
On the Google maps:
Smiljan, Gospić - Croatia
near Dubrovnik
I work in maintenance. The time, effort, cost and ease of electric vs internal combustion should see like a no brainer.
Front page says:
“DOE Loan Update
U.S. Secretary of Energy Steven Chu announced today that the U.S. Department of Energy has signed a $465 million loan arrangement agreement with Tesla Motors under the ATVMIP.”
Is that “today” today, or is that already old news that just didn’t get updated?
465 million is a good news, I hope you make best of it and accelerate Type S production schedule.
I still want some information about what is going on in Type S. Getting that loan means that _something_ is happening (I very much doubt they would give it for vaporware), but what that something is is unknown to all of us.
Who needs 6 sec to 60 on the road today ? I presently drive a Prius and find its performance tottally adequate , If you made a simmilar practical vehicle all electric I would buy right away.
Timo: The initial loan approval was announced months ago, but there were lots of minor bureaucratic details to be filled in. Everything was finalized on the 22nd.
Lars Westvind: Tesla Motors started with a high performance 2 seat sports car that they could profitably sell at a high price, but they plan on a larger 7 seat Model S for about $50K, and after that a 3rd model for under $30K. You’d probably be more interested in one of the future Tesla models.
What is interesting is that the high efficiency of batteries and electric motors allows Tesla to get both high performance and high efficiency in their Roadster, it is actually more energy efficient than a Prius! See:
www.teslamotors.com/performance/well_to_wheel.php
BTW, the efficiency and smooth acceleration of the Prius is due mainly to the eldctric motors and battery in its hybrid system. If you like the way the Prius drives, you’ll love driving “All Electric”.
Lars, CM; to add to CM comment about efficiency in EV:s you don’t lose anything with high power. Actually it is just the opposite: bigger engines are more efficient than small engines.
So: in order to have efficient EV you need to make high performance EV
Of course there are several other factors than just engine like electronics but basically you don’t lose anything by making high performance EV.
If you think about 0-60 acceleration or enormous top speed, nobody really needs that, but it is safer to have good 50-80 acceleration when you are passing some slower vehicle like some 18-wheeler. The less time you spend in opposite way of the road the better. So high performance is actually safer than low performance if you (general “you”) have some brains.