It could happen, but then again, it may not. One thing’s for certain: buyers of the twin-motor Tesla Model 3 stand to wait less than those holding out for a base model.

In response to a Twitter user who asked when we can expect the all-wheel-drive variant of the massively hyped electric sedan (“My car has been sitting in the configuration for months waiting on it”), Tesla CEO Elon Musk replied with an approximate month. For this prediction to come true, Tesla must reach its second production target. It missed the first. (Read More…)

It’s been said that the true test of Tesla’s “affordable” Model 3 won’t be the car’s production rate — it will be initial build quality. A slower than predicted production ramp-up is already a reality for Tesla and its hundreds of thousands of reservation holders, but, as the automaker reaches beyond the existing group of well-monied brand diehards, glitches and reliability issues will pose a larger threat to the brand’s reputation.

With the Model 3 now coming off the Fremont assembly line in larger numbers (though not as large as predicted), it seems we have a recurring quality issue, if you want to call it that. Many Model 3 owners — who, for obvious reasons, are not longtime Model 3 owners — are taking to the internet to report a strange problem that leaves their car dead in the water and in need of a tow. (Read More…)

We all play amateur detective whenever a Tesla crashes or does something wonky while operating on Autopilot (or in its absence), and last week was no exception.

The death of Wei Huang following his Model X’s collision with a lane divider on California’s US-101 freeway in Mountain View prompted Tesla to issue two statements concerning the incident. In the second, the automaker admitted, after retrieving digital logs from the vehicle, that the vehicle was in Autopilot mode and that the driver did not touch the wheel in the six seconds leading up to the March 23rd impact.

Retracing the last few hundred yards of Huang’s journey on Google Streetview led this author to make a very obvious observation: that the paint marking the left-side boundary of the lane Huang was presumably driving in was faded and half missing as it approached the barrier. As it turns out, the condition of that not-so-solid white line caused another Tesla’s Autopilot to act strangely, but this time the driver corrected in time. He also has a video to show what happened. (Read More…)

You’ve probably heard of the Ford Model T before — perhaps in a book or on Tumblr or something. Brainchild of auto pioneer Henry Ford, the Model T (introduced in late 1908) revolutionized the use of the assembly line for mass production five years later. Between 1912 and 1917, annual Model T production soared from 68,711 vehicles to 735,020.

Why am I mentioning a car that’s over a century old? Well, it’s because Tesla, in all of its its exuberance, decided to namedrop the Model T in its first-quarter 2018 production report. Apparently, we might be looking at the next one.

Of the 34,494 Tesla vehicles built in Fremont, California over the first three months of 2018, some 9,766 were Model 3s. In the fourth quarter of 2017, Tesla built 2,425 Model 3s. However, Tesla claims some 2,020 of the compact electric sedans came to be in the last seven days, meaning roughly one-fifth of its Model 3 output came during an eleventh-hour, all-stops-pulled production push at Fremont — which reportedly saw volunteers from other model lines switch over to Model 3 assembly. (Read More…)

April Fools’ Day is a great holiday when you’re 12 years old but, as an adult, there are only so many people you can trick into drinking spoiled milk outside of your own family without getting into trouble. The world just doesn’t have the same level of patience for a matured prankster. Corporate foolery is even less palatable, usually because it’s far too tame to be genuinely entertaining, or results in some social blunder highlighting a genuine problem.

The automotive industry frequently engages in April Fools’ pranks, but this year was rather dull. Porsche’s phony Mission E tractor was cute but felt a little lazy and Honda UK’s chop-topped CR-V resulted in some members of the press requesting Honda actually built it — something none of us agree with, as that monstrosity would be a pillar of bad taste. The best of the bunch was probably McLaren’s weird take on promoting efficiency, in which the supercar maker hinted everyone will become a soulless robot. It wasn’t the best we’ve seen; still, the staff clearly enjoyed taking a playful shot at its more uptight rivals.

Then there was Tesla’s joke, which saw CEO Elon Musk issue a series of tweets about the company’s pretend bankruptcy. The timing on this was admittedly not great. Tesla had a really bad month involving a stock price attempting to bore its way to the center of the earth, the biggest recall in its history, another Model 3 production shortfall, and an Autopilot-related fatality in California.  (Read More…)

The National Transportation Safety Board is one of two federal agencies probing the recent fatal Tesla Model X crash in Mountain View, California, and it isn’t too pleased with the automaker for releasing information gathered from the car’s digital log.

Apple engineer Wei Huang died after his Model X slammed into a concrete barrier on the southbound US-101 freeway on March 23rd. The vehicle was operating in Autopilot mode, the company revealed days later. Accompanying Tesla’s blog post were details about the events leading up to the impact, including the claim that Huang didn’t have his hands on the wheel during the six seconds leading up to the crash.

This data release didn’t sit well with the NTSB. (Read More…)

Buried in the hubbub surrounding this week’s New York auto show was a drama unfolding in the wake of a Tesla Model X crash on US-101 in Mountain View, California, not far from Tesla’s Palo Alto HQ.

The SUV, driven by 38-year-old Apple software engineer Wei Huang, collided head-on with a concrete divider where the southbound freeway splits at the Highway 85 junction. The collision obliterated the SUV to the A-pillars and sparked a fire. Huang later died in hospital.

Crashes occur for a myriad of reasons and Teslas aren’t immune to reckless drivers, medical emergencies, and any number of other conditions that can lead to a crash. However, at the time of impact, Huang’s vehicle was operating on Autopilot, the company announced. (Read More…)

Tesla’s once sky-high share price has taken a serious hit in recent days, so news of the electric automaker’s recall of 123,000 Model S vehicles couldn’t have come at a worse time.

Describing the recall as voluntary, Tesla sent emails to owners of all Model S electric cars built before April 2016 to warn of an issue affecting the car’s power steering system. The issue involves corrosion impacting the bolts holding the power steering motor to the rack, which can then shear off — leading to a loss of power steering.  (Read More…)

Tesla has been Wall Street’s fair-haired boy as the electric car startup’s share price soared over the past few years. Production figures have not kept pace with Tesla’s market cap, and now problems getting assembly up to speed on the company’s vitally important Model 3 and concerns about its cash burn have resulted in a downgrade of its credit rating from Moody’s Investor Service. That report from Moody’s was issued late on Tuesday.

When trading began on Wednesday morning, Tesla stock opened at $264.76, down 5 percent from the day before. That is almost 14 percent lower than it was at the beginning of the week, and 31 percent lower than in September of 2017, when Tesla’s stock price apparently peaked at $385 a share. (Read More…)

Tesla investors approved an incentive package on Wednesday that could ultimately net CEO Elon Musk around $56 billion. There is a catch, however. He has to elevate the company’s share price to almost comically high levels. Having already covered the deal, we noted some opposition from analysts, but not shareholders — all of whom seem overwhelmingly happy to oblige Musk if he improves their wealth, as well.

Investment advisor Glass Lewis & Co. said offering the CEO an additional 12 percent in stock options (currently valued at around $2.6 billion) was unnecessary since he is already a major shareholder and the move could dilute value for other investors. But most agreed Musk was too important to risk losing and agreed to the package to keep him in charge of the company, despite Musk stating this was his intent all along. (Read More…)

Tesla keeps insisting it’s going to show the automotive industry how to do things differently. The company’s make-or-break Model 3 was put into production without any pilot assembly or validation prototypes. Tesla is also more vertically integrated than traditional automakers these days. It owns its own stores and it makes many of its own parts. So far, with the EV maker as of yet unable to really get mass production underway on the new sedan, the jury is out on Tesla’s strategies.

CNBC now reports current and former Tesla workers saying almost half of the parts made at or produced for the EV startup’s Fremont, California assembly plant don’t meet production standards, forcing rework and end-of-line repairs, as well as impairing morale in the facility.

This raises the question of whether Tesla will be able to mass-produce vehicles in the quantities associated with automotive mass production: hundreds of thousands of vehicles per year. Tesla needs to be able to build and sell its Model 3 at those numbers to be a viable firm. (Read More…)

Tesla temporarily stopped production of the Model 3. Considering everyone keeps wondering when the company will finally reach its first-quarter production target of 2,500 units per week, that’s big news. The Tesla faithful will, no doubt, consider the decision another incredibly shrewd move from the geniuses working within the company, while the opposition will claim it’s further proof that the firm isn’t capable of building cars at the scale it has promised.

Sticking with the facts, we knew Tesla had Gigafactory tooling waiting to be shipped from Germany at the start of February. However, the temporary shutdown occurred between February 20th and the 24th — a bit too early for the equipment to have made it stateside. The suspended production also took place at the main factory in Fremont, California, and not the Nevada-based Gigafactory. Model 3 vehicle registrations also dropped significantly in the days following the shutdown.  (Read More…)

Ontario, that strange land located between Detroit and Buffalo (and elsewhere, too) became the largest Canadian market for electric vehicles in 2017. There was good reason for it, too. Imagine walking into a dealer showroom, eyeballing a flashy luxury car, and suddenly your local political representative rushes in and hands you a check for $14,000, no strings attached.

Thanks, fellow taxpayers!

This subsidy is what buyers of Tesla Model S and X vehicles, retailing for over six figures (Canadian MSRP), enjoyed in Ontario until very recently. It’s important to note, though maybe not to certain folks, that the province holds the world’s largest sub-sovereign debt, most recently tagged at $311 billion, and pays over a billion dollars a month to service the interest on that debt.

Sorry, Ontario Tesla buyers. The party’s over. Again. (Read More…)

Tesla Motors previously announced that its CEO, Elon Musk, wouldn’t be paid unless its already high stock valuation continued to climb. His compensation package — valued at roughly $2.6 billion — is tied to a dozen operational milestones, all of them primarily linked to the company’s share price. However, the board has left the strategy’s fate in the hands of its shareholders, who will vote on the motion come March 21st.

In addition to Musk’s existing stock options, that bonus could result in a total payday of more than $55.8 billion over the next decade. That’s too much, according to proxy advisor Glass Lewis & Co. With the CEO already so finically invested in the company, Glass Lewis doesn’t believe any fee would have a meaningful impact on Musks’ involvement. He already owns at least 20 percent of Tesla’s stock, so any improvement in its valuation would already benefit him immensely.

“Any relative comparison of the grant’s size would be akin to stacking nickels against dollars,” Glass Lewis & Co. said in a report from February.  (Read More…)

We’ve criticized Tesla for its lack of access to crash data in the past, but it appears the company has now performed a complete U-turn. Tesla now admits all of its current vehicles have an Event Data Recorder (EDR) device, and it’s now offering an inexpensive tool to allow customers to access the logs.

Tesla previously stated it did not have an EDR device as defined by the 49 CFR 563 of the EDR rule, but new documents released by Tesla shows all of its current and previous vehicles — other than the first generation Roadster — actually do employ such a device. The company has released a helpful guide and free software to analyze the logs, along with a link to purchase compatible equipment. (Read More…)