Last January we landed an exclusive first drive of the Tesla Roadster. We were impressed, but well aware that the particular two-gear model we drove that wet afternoon wasn't identical to the version set to land in customers' hands later in the year. Last week, we were invited back to briefly test drive a genuine production model with the latest transmission and software updates (aka "powertrain 1.5").
The 2011 Chevy Volt has been getting the lion's share of news on the EV front, but it could be jostling for attention in late 2010 with an all-EV sedan from Tesla. Tesla has secured $100 million in private equity and another $150 million in loan guarantees from the federal government to build a new factory in San Jose, CA. The company on Wednesday announced that the facility would build the $60,000 Model S sedan, which was originally dubbed Whitestar. The new Tesla plant will be able to produce 11,000 Model S sedans per year by the end of 2011, giving customers a much more mainstream EV entry than the $100,000 Tesla Roadster. We haven't heard too much about the Model S sedan, but earlier in the year Tesla co-founder Elan Musk said there could be a fully functioning prototype and a finalized design by the end of 2008. We're with you in hoping it looks as good as the Tesla Roadster while providing similar range in a more family-friendly package.
The Tesla Roadster launch has been anything but silky-smooth, but the upstart EV automaker hopes its problems are in the rear view mirror with the completion of Drivetrain 1.5, which includes an upgraded electric motor and swapping the original two-speed automatic transmission for a Borg Warner-sourced one speed. The changes will improve the Tesla Roadster's instant torque from 211 to 280 lb-ft while also improving its range by 10% to a shockingly impressive 244 miles. Drivetrain 1.5 also means Tesla can finally ramp up production of its well-publicized roadster. Within the next few weeks, Tesla will begin producing 10 Roadsters per week. By next March, that number will increase to 40 samples per week, which will go a long way toward satisfying demand for the sexy EV. The new, upgraded Drivetrain 1.5 is so much better than the mechanicals it replaces, Tesla will keeps its promise and retrofit the 38 models already produced and delivered with the new equipment.
Two big British car magazines are reporting on some of Tesla's future product plans today following the latest promotional tour by SVP Marketing Darryl Siry. There isn't a whole lot new in the articles that hasn't already been reported here and on AutoblogGreen over the past year, but there were a couple of interesting items and errors. First of all AutoCar is reporting that Tesla is planning to use the platform of the Model S sedan (formerly known as WhiteStar) for future vehicles, which makes perfect sense. Unfortunately, they are also reporting that Tesla is planning an electric SUV off that platform, so we contacted Siry to check on this. Siry told ABG that there are in fact no plans to build an SUV. An SUV body style was just used as an example to demonstrate the flexibility of the platform. Helping to achieve that flexibility is a reconfigured battery pack that lays under the floor rather than upright behind the seats as in the Roadster. This will allow for a modular configuration so that that the Model S can be offered with different range options. The base model is expected to get a 160-mile range for it's $60,000 base price, while 220- or 300-mile options will cost extra. The magazines did get a chance to see design sketches of the Model S, but Siry wouldn't release them. For now he will only show them in the same room, but we do know the Model S will reportedly have a coupe-like profile on its four-door hatch body style. If Tesla can avoid the launch problems it had with the Roadster, the Model S will be on the road in 2010.
Tesla Motors continues its hiring spree by bringing on Deepak Ahuja to serve as the company's CFO. Ahuja comes by way of the Ford Motor Company, where he was heading up the project to bring small European Ford's to America. Prior to that, Ahuja carried various other important financial roles with Ford and Mazda. Tesla's goal of becoming "the next great American automobile company" is a brash one, but much more likely to pan out with the proper people at the helm. Considering the rate at which Tesla Motors has been bringing on talent, including the recent addition of Franz von Holzhausen as Design Director, it is clear that the budding automaker takes its goal rather seriously.
Their plate may be filled with churning out Tesla Roadsters and developing the Model S sedan, but Tesla Motors can't seem to get a break from the lawsuits. First there was the tiff with transmission supplier Magna, followed by potential development partner Fisker, and now Tesla is facing a class action (it's not a class action lawsuit until a judge deems it so) lawsuit from former Director of Public Relations, David Vespremi. Vespremi ended up on the cutting room floor during the tornado that swept through the company ranks at the end of 2007 was let go prior to the layoffs in January of this year. Vespremi is trying to connect his firing to the layoffs, but according to Tesla's Darryl Siry, that's not the case -- his termination was a separate matter. The details of the lawsuit allege that Tesla Motors did not practice good faith or fair dealing, violated labor codes with unpaid wages and waiting periods, and utilized unfair business practices. The document also listed libel and slander due to the harsh words spoken from the mouths of executives to the media when referencing the former employees.
A few months back, Tesla Motors sued Fisker Automotive for allegedly stealing information related to the production of its upcoming plug-in electric sedan named Whitestar and using it to develop its series-hybird, the Karma. Yesterday, a judge ruled in favor of Fisker Automotive by allowing the case to go into arbitration outside the courtroom, which was apparently part of the original agreement between Tesla and Henrik Fisker in the first place. It appears that Tesla went outside that original agreement by bringing forth its lawsuit in the first place, though Tesla may have considered that contract void as the original lawsuit alleged that it was signed merely to gain access to confidential information.
Although the arbitration is to be handled outside of court, the judge has scheduled a management conference this August, perhaps to be sure that negotiations are moving along. This is good news for Fisker, which is currently working to get its Karma PHEV sedan to market by the fourth-quarter of 2009.
Much has been made of the issues that Tesla Motors encountered with its original two-speed transmission. The fledgling EV automaker was unable to find a supplier that could engineer a two-speed gearbox capable of allowing the Tesla Roadster to hit 0-60 in four seconds and meet specified targets for its range. The two-speed box was eventually dropped in favor of what has been called "powertrain 1.5", which uses a single-speed gearbox and other improvements to the electric motor and inverter to achieve Tesla's seemingly incongruous goals of performance and efficiency.
JB Straubel, Chief Technical Officer Tesla Motors, recently posted an update on the progress of powertrain 1.5 on the company's blog, and be warned, if you're not up to date on how highly complex electric motors and transmissions work (like us), you'll probably get lost. The basic nuts and bolts of it amount to a Tesla Roadster that will have both a 33% higher peak torque output and an additional 10 miles of range versus the 1.0 car. According to our own Sam Abuelsamid who has followed the Tesla Roadster's development from gestation, these two seemingly irreconcilable accomplishments were achieved mainly through lowering resistance at every point along the powertrain. This was done by redesigning some components, using low resistance materials and switching to a new, shorter gear ratio of 8.27:1. You can read Sam's nitty gritty explanation of the changes over at AutoblogGreen, but it seems the little EV company that could is finally getting back on track after some major set backs.
Tesla has big plans, and to finance them it plans to raise big money. How? First, with an influx of venture capital that could put 10-percent of the company in VC hands. There has also been talk of an IPO, which Chairman Elon Musk thinks could raise $100 million dollars, and Musk said he plans to take the company public by the end of this year. And to make sure Tesla's coffers are topped up, the company plans to partake in a loan guarantee program offered by the U.S. Department of Energy for up to $200 million.
With a potential $300 million in the bank, not including the initial public offering, Tesla could get serious work done on the Whitestar sedan. Tesla hopes to have the sedan in production by 2010. If you're liking the sound of all this and want to know how you can get some Tesla stock, we recommend buying a Tesla. Musk wants to reward believers, and is trying to figure out how the company can offer customers the chance to legally buy in before the IPO.
Isn't it fitting that Fisker Automotive's upcoming series-hybrid sports sedan is named Karma?. After having commissioned Fisker to help design its second product, the Whitestar sedan, Tesla Motors sued Fisker claiming it stole trade secrets that were then used on the Karma. Following that lawsuit, Tesla was then sued by Magna, one of its former transmission suppliers, and now Fisker is slapping the upstart electric car company with its own arbitration suit. That's karma for you, right there.
Fisker will attempt to first derail Tesla's original lawsuit by seeking to have it moved from San Mateo, CA to Orange County, after which it will then try to prove that Tesla is attempting to divert attention away from its delayed all-electric Roadster by suing Fisker. To that end, Henrik Fisker himself called the whole mess "ridiculous" and referred to Tesla's behaviour as "sour grapes". An arbitrator will likely determine whether he's right or not, but until then we lowly consumers must await ramped up production of the Tesla Roadster and the eventual arrival of the Fisker Karma.
