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Tesla wants potential EV customers to stop worrying about electric range when it comes to the Model S

Tesla Motors recently made a coast-to-coast road trip possible in the U.S. with its all-electric Model S sedan, and the automaker wants travelers in Europe to have the same experience.

According to Tesla, there are big plans for an expansion of Supercharger stations throughout Europe in 2014. These stations rapidly charge Tesla's Model S for free, where a full charge takes around 75 minutes. New stores and service centers will be making their way to select European countries as well.

Currently, Tesla has 14 Superchargers throughout Norway, Germany, Switzerland, and the Netherlands. But the automaker is looking to place more within those countries and expand to the UK, France, Spain, Italy, Austria, Denmark, and Sweden by the end of the year. It's not clear how many will be placed total.

 
Tesla will also open 30 new service centers and stores around Europe. Service centers will be placed in Sweden, Italy, and France for the first time, and stores will open in Birmingham and Manchester in the UK, Lyon and Bordeaux in France, Gothenburg in Sweden, and many more. 

Tesla wants potential EV customers to stop worrying about electric range when it comes to getting from point A to point B, and placing more Superchargers between major cities and frequented destinations is the way to do it. 

The automaker recently placed more Supercharger stations between Los Angeles and New York City in the U.S. as a way of relieving range anxiety for its American users. 

Tesla is making its way into China as well, where CEO Elon Musk recently said that the country might match the U.S. in volume "as early as next year" regarding the Model S. 

Source: Tesla Motors



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RE: Nice.
By weaponzero on 3/7/2014 5:12:39 PM , Rating: 2
quote:
why would Telsa want to payoff a loan with an interest rate of 1.6%?


Other then the fact the industry was willing to give Tesla a loan at 1.5%?

quote:
A quick google search reveals the Ford and Nissan interest rate is 5%


No, a quick google says their interest rate is around 2%. Since 1.6% is around 2% I am guessing their rate is very similar.


RE: Nice.
By sorry dog on 3/7/2014 5:41:55 PM , Rating: 1
quote:
Other then the fact the industry was willing to give Tesla a loan at 1.5%?


That's not what happened. Musk stated they had enough liquidity on hand specifically mentioning the DOE loan, but shortly after that a large stock offering was announced. The offering pretty much financed the DOE payback. This is not unusual in corporate finance. However, 1.6% is VERY cheap money, and doing an offering to because the company is likely to default on the loan is remarkable... remarkable enough that it probably should have been disclosed. Since that time the stock has done O.K. so nobody is bitching, but had it not you can bet some shareholder suits would be in the mail. I think it's worth noting that a pretty big financing gamble had to be made to keep the company out of default.

Ford's DOE rate may be lower, what I read was general about it, however it's all the more reason Ford would not pay the loan back... because it's a good deal...and further proof TSLA was going to default on theirs.

As for Telsa making money... according to Dec 2013 filing,

EBITDA is negative 38.5 million. It's hard to invest negative profits. Considering the recent talk of plant investment, one can conclude more outside cash will be needed at some point....or maybe the DOE can give them another loan!


RE: Nice.
By weaponzero on 3/7/2014 6:32:26 PM , Rating: 2
quote:
That's not what happened.


But that is what happened, Tesla along side the public offering did a bond offering at a rate of 1.5%.

quote:
However, 1.6% is VERY cheap money, and doing an offering to because the company is likely to default on the loan is remarkable


Let us look at it hypothetically if that was true. Even if that were the case, Tesla had more than enough money to make the monthly payments on the loan. Having Tesla default on the loan due to conditions set by the loan would have been a huge blow to the loan program. Just like the previous wavers, Tesla would have just gotten another waver. Simply because they had the money to make the payments. But again, that is if it is true. Anything mentioned by Peterson about Tesla should be taken with a grain of salt. There is no indications though that Tesla would not be compliant or default on the loan as they were already compliant with the terms in 2012.

quote:
As for Telsa making money... according to Dec 2013 filing,

EBITDA is negative 38.5 million. It's hard to invest negative profits. Considering the recent talk of plant investment, one can conclude more outside cash will be needed at some point....or maybe the DOE can give them another loan!


You can invest gross profit just fine actually. EBITDA is money AFTER investments. As for financing, they did another bond offering in the tune of 1.6 billion which will cover the factory at a rate of 1.5%.


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