If Elon Musk is still smarting about how much damage the New York Times has done to Tesla, the fledgling automaker can take comfort in the fact that the positive reviews are still pouring in.
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Tesla CEO Elon Musk found the perfect scapegoat for lost Tesla sales and a 13 percent drop of the company’s stock: John Broder of the New York Times. Musk told Reuters that “Tesla has lost about $100 million in sales and canceled orders due to the Times story, which said the sedan ran out of battery power sooner than promised during a chilly winter test drive from Washington D.C. to Boston.” Musk should look in the mirror if he needs a scape goat. (Read More…)
As a retired operative of the auto propaganda community, I watched the schoolyard brawl between Tesla’s Elon Musk and the New York Time’s John Broder with detached interest. I won’t re-hash it again. Unless you live in a monastery in Tibet, and your Samsung Note 2 was impounded, because you were caught masturbating to Google image search, it was impossible to escape the fallout from the war of tweets, blogs, and counter-tweets. To this day, bullets and barbs still ricochet through the Internet. Only hours ago, Musk was still seen tweeting about an “impressively out of touch NYT auto editor,” while the world at large is utterly confused. And that is the true tragedy. This after-action report is dedicated to the victims.
Tesla Motors Inc. released its Fourth Quarter & Full Year 2012 Shareholder letter on Wednesday. While the letter provides a very positive outlook for Tesla’s future, there are some questions looming in the background once we dig deeper into Tesla’s balance sheet.
The drama circling around the New York Times test of the Tesla Model S doesn’t surprise me one bit. Why? Because I understand, perhaps at a deeper level than most of the motoring press, how batteries work. Perhaps that has to do with growing up in a family of engineers and scientists, but battery technology has always interested me. So when people from Phoenix came to me crying in their soup about their LEAFs in the heat and friends started wagging fingers at Tesla and the New York Times, I figured it was time for a battery reality check.
The New York Times had their public editor (think ombudsman) publish a response to the whole “Dead Tesla’ fiasco (summary by our own Dan Wallach here), and it is far from kind to reporter John Broder.
Note the date of publication is 1914, not 2013
While following the he said he said back and forth between the New York Time’s James Broder and Tesla’s Elon Musk, over Broder’s unsuccessful drive from New York to Boston in a Tesla Model S, it seemed to me that one important factor affecting consumer acceptance of EVs is being obscured by all the Sturm und Drang of the NYT and Musk both working this story for maximum bad publicity for their respectless enterprises. That factor, ironically, is why Tesla set up the media road trips in the first place, the fact that EVs will need a publicly accessible charging infrastructure if they are going to be seen as anything other than town cars. The Model S press trips from DC to Beantown were supposed to demonstrate Tesla’s expanding network of locations equipped with Tesla’s “Supercharger” quick charging stations.
Pull up a chair, get some popcorn. The fireworks have been flying fast and furious. New York Times reporter John Broder wrote a piece about his press loaner Tesla running out of juice. Tesla, already smarting from the perceived slight given them by BBC’s Top Gear, decided they needed an ace up their sleeve: data logging. Chairman Elon Musk penned a response that included detailed data logs from the press car. Broder responded in general terms and then with a point-by-point response to Musk’s charges. The NYT’s public editor, Margaret Sullivan, has also chimed in with the opening of her own investigation. Notably, Musk hasn’t returned her calls. Her tentative conclusion? “I reject Mr. Musk’s central contention that Mr. Broder’s Sunday piece was faked in order to sabotage the Model S or the electric-car industry.” She also called for Tesla to release all the data they’ve got in proper machine-readable form, not just their pretty annotated graphs with the circles and the arrows and the paragraph on the back of each one. (Read More…)
Tow truck delivers Model S to charging station
New York Times reporter John Broder told a harrowing story of a test drive from Delaware to Connecticut in a Tesla-supplied Model S. Broder wanted to review both the car and Tesla’s Supercharger stations along I95. The drive ended on a flatbed truck with a Model S that had run out of juice. The story landed Broder on Elon Musk’s shitlist. (Read More…)
Elon Musk offered Boeing Tesla’s help with its troubled Boeing 787 battery packs. He wants Boeing try the packs Tesla uses in its SpaceX rockets and Tesla cars. Ever the hipster, Musk announced the unsolicited aid via Twitter: (Read More…)
Last week, a Massachusetts judge sided with Tesla regarding factory-owned stores, in a suit brought by Massachusetts State Automobile Dealers Association and an assortment of dealers. Barring an appeal, the ruling essentially clears the way for Tesla to operate their own outlets – some of which are in non-traditional venues like shopping malls – and offer an online reservation system for vehicles.
Tesla recorded a third-quarter loss of $110.8 million, versus a $65.1 million loss in the third-quarter of 2011.
Tesla’s sales model, with factory-run outlets selling directly to customers, is coming under fire while dealer groups such as NADA are citing the apparent illegality of factory-owned sales outlets.
Viewers of last night’s Presidential debate may have caught Mitt Romney bad-mouthing Tesla and Fisker during his remarks. Meanwhile, Tesla’s new prospectus shows that they’re hardly out of the woods yet, financially speaking.
A few months ago, BMW announced that it was throttling back (or should that be rheostating back?) on it’s “i” branded EV program, in part due to a lack of public charging station infrastructure. A company that sells as many gasoline and diesel powered cars as BMW does can afford to temper its enthusiasm for cars that run on electrons. A company that only sells battery powered electric cars, as Tesla does, doesn’t have that luxury.
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