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Tesla Model S Drops 40kWh Battery Option

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In a surprise announcement late Sunday, Tesla Motors says it turned a profit for the first quarter of 2013, delivering more than 4,750 all-electric sedans and beating its own forecasts. It’s a major milestone for the start-up automaker, which also revealed a few last-minute Easter eggs for those waiting for their cars to be delivered — and a play to improve the value of its cars when those owners decide to sell.

Tesla had said it expected to break even on a cash basis this quarter during the ramp-up of Model S output at the factory in Fremont, Calif., with a goal of delivering 4,500 cars to owners. Since Tesladoesn’t sell its cars through dealers and puts the key fob of the Model S directly in an owner’s hand, it can’t count the money from sold vehicles until that swap; traditional automakers mark a car as sold for accounting purposes when it leaves the factory.

“Tesla is here to stay and keep fighting for the electric car revolution,” said Elon Musk, Tesla Motors co-founder and CEO in a statement. “I would also like to thank our customers for their passionate support of the company and the car. Without them, we would not be here.”

Given the history of fledgling automakers — none of which have survived in the United States since the early 20th century — and the carnage among electric vehicle makers such as Fisker Motors, many investors have bet against Tesla, with some $1.2 billion in its shares held by short sellers anticipating its decline. Musk has aggressively fought any perceived attack on the company’s image, notably launching a media war with The New York Times after one of its writers was left stranded by a Model S that ran out of charge.

That writer was testing one of Tesla’s other projects, what it calls the Supercharger network of free quick-recharging stations meant to make the Model S a long-range cruiser. Using the stations requires a Tesla-specific high-voltage connector that was standard on the $72,400 Model S with an 85 kWh battery, but a $2,000 option on the shorter-range 60 kWh version. Tesla revealed tonight that buyers of the 60 kWh Model S would get the Supercharger connector for free, which it called a bet that the Superchargers will lure more customers to the company’s cars.

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But Tesla also revealed it was eliminating the lowest-cost planned variant of the Model S, the 40-kWh edition that had been slated to cost $52,400, or $10,000 less than the 60 kWh model. Tesla says only 4 percent of its customers had placed reservations for the 40 kWh car, which had an advertised range of 160 miles. Those customers who signed up for a 40 kWh car will get a 60 kWh car instead — but one whose software will only allow the car to access 40 kWh of energy.

Future owners — including those who buy such a capped Model S second-hand — can pay Tesla that $10,000 difference to have the software reset to use all 60 kWh of battery energy. Musk may still rank as a neophyte automaker, and Tesla’s first profitable quarter doesn’t solve all of its challenges, but discovering an income stream from people who buy its vehicles used will make the suits in Detroit, Tokyo and Stuttgart just a wee bit jealous.

 

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Tesla is launching a crazy new Rental program with cheap daily rates

This week, Tesla launched its in-house Rental program that will give people a vehicle for between three to seven days, with prices varying and starting at just $60 per day.

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(Credit: Tesla)

Tesla is launching a crazy new Rental program with cheap daily rates, giving people the opportunity to borrow a vehicle in the company’s lineup with an outrageous number of perks.

This week, Tesla launched its in-house Rental program that will give people a vehicle for between three to seven days, with prices varying and starting at just $60 per day.

However, there are additional perks that make it a really great deal, including Free Supercharging and Free Full Self-Driving (Supervised) for the duration of the rental.

There are no limits on mileage or charging, although the terms do not allow you to leave the state you are renting.

Tesla wrote in an email advertising the program:

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“Rent a Tesla and see how it makes every errand, commute, and road trip more fun. While it’s yours, try Full Self-Driving (Supervised) and control and monitor your vehicle with the Tesla app. 

Schedule your rental for three to seven days starting at $60 per day (plus taxes and fees) and charge for free at any Tesla-owned Supercharger.

Order your own Tesla within seven days of your rental to get up to a $250 credit toward your purchase.”

Tesla has long adopted the mentality that butts in seats will sell cars, and for the most part, it is a great strategy. Driving a Tesla is different from owning and driving a combustion engine vehicle; it truly feels as if you are in a car from the past when you get back in an ICE car.

This strategy could be looked at as more of a way for people to experience Tesla ownership than anything.

Although some might use it as a typical rental program that will see it be a cool way to drive without putting miles on a personal car, most will use it as the 48-hour test drive was designed for, which is a short-term way to experience EV ownership.

Tesla is only offering this program at a handful of locations currently, including San Diego and Costa Mesa, California.

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Tesla makes online ordering even easier

Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.

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(Credit: Tesla Asia | X)

Tesla has adjusted its Online Design Studio to make for an easier trade-in process, reflecting the details of the exchange for a more accurate reflection of payment terms.

Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.

Trade-ins are usually given by submitting vehicle details, then Tesla sends an email with an offer. Offers are non-negotiable, but do adjust over time, although the latest offer is valid for 30 days.

I traded my ICE vehicle for a Tesla Model Y: here’s how it went

Knowing your new Tesla’s cash price, leasing or loan details, and monthly payment information used to be done by the car buyer. From personal experience, I simply subtracted my trade-in from the cash price of the Tesla Model Y, and I plugged those numbers into the payment calculator.

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Now, Tesla is implementing the trade-in process directly into the Design Studio. It will adjust the price of the car and the different monthly payment methods automatically:

The change is already noticed in a handful of states, including California, but it has not rolled out across the board quite yet. It will be implemented in all of the U.S., as well as Canada, this coming week.

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The trade-in process is very simple, and after you accept your offer, you simply drop your vehicle off during the delivery process. Making this simple change will be greatly appreciated by owners.

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Tesla confirms Robotaxi is heading to five new cities in the U.S.

After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.

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Credit: Tesla

Tesla Robotaxi will hit five new cities in the United States in the coming months, the company confirmed.

After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.

The Robotaxi suite is a ride-hailing service Tesla offers, but the details of it change with each jurisdiction, as regulations vary. For example, in Austin, Tesla can operate the Robotaxi suite without anyone in the driver’s seat, as long as the vehicle does not enter a freeway.

Credit: Tesla

In the Bay Area, a Safety Monitor rides in the driver’s seat, essentially acting as the vehicle operator with Full Self-Driving controlling the car.

The local regulations and how Tesla handles them will continue to be a relevant part of the discussion, especially as the company aims to expand the Robotaxi program to different areas. This has been a primary focus of the company for several months, especially within the United States.

CEO Elon Musk said that Tesla was aiming to launch Robotaxi in Nevada, Arizona, and Florida. However, the company detailed five specific cities where it will launch Robotaxi next during the Annual Shareholder Meeting on Thursday.

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Tesla will launch Robotaxi in Las Vegas, Phoenix, Dallas, Houston, and Miami next, broadening its Service Area for the suite to more major cities across the U.S.

It has said it plans to offer the service to half of the U.S. population by the end of the year, but it does not seem as if it will expand to more than a handful of cities this year, which is still tremendous progress, all things considered.

As far as autonomy is concerned, Tesla has always had lofty expectations and has made some even loftier statements.

At the Shareholder Meeting, Musk said that the company would likely be able to enable vehicle owners to text while the vehicle drives, alleviating them from potentially having some of the responsibility they have behind the wheel.

Tesla says texting and driving capability is coming ‘in a month or two’

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It is not confirmed that Tesla will roll this out in the next few months, but Musk said there is a possibility.

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