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.Thanks for the tip Jan!
UPDATE: Darryl Siry of Tesla wanted to clear a few things up with the story. To begin with, a judge must certify a lawsuit as class action before it can be deemed as such. That hasn't happened yet. Additionally, the part of the lawsuit filed by David Vespremi that asks for class action status has nothing to do with libel, slander, or defamation. The only part of Vespremi's lawsuit that could be classified as "class" has to do with Tesla's arbitration and non-conciliation clause in his employment agreement.
Click above for high-res gallery of the Fisker Karma
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.
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.
Birthing a car is always difficult, and Tesla has seen its share of problems. The biggest hurdle to getting its all-EV Roadsters in customers' garages has been the transmission. Initially the company wanted to have a two-speed unit, but the unit from its first supplier, X-Trac, wasn't durable enough. Tesla then contracted Magna to help build a tranny, before a final try at designing its own transmission also ended abortively. In the end, to get cars rolling out the door, changes were made to the motor so that a single-speed transmission could be fitted.
Magna doesn't seem upset that it was just a stepping stone – that's business. What the company would like, however, is to get paid for the work it performed. Magna is also telling Tesla "told you so" by claiming to have suggested a single-speed unit back in 2006. To recover its $5.6 million, Magna has filed suit in San Mateo to force the issue, which coincidentally comes not long after Tesla filed suit against Fisker, which it initially hired to designs its next product, the WhiteStar sedan. What goes around comes around, we guess. The legal wranglings haven't yet made a dent in Tesla's operations, but Magna's lawsuit could bolster the case of frustrated buyers who have yet to receive their cars, should those customers decide to also take to the courts.
Update: Tesla VP Darryl Siry contacted us to clarify the issue with the original X-Trac gearbox. Apparently the problem was not one of actual durability of the transmission itself. Tesla evidently spec'ed out a two speed unit with no clutches. The design intent was to do clutch-less shifting and manage the torque output of the motor during the shifts. Unfortunately the rotational inertia of the motor made this plan unworkable as the torque output couldn't be changed fast enough. According to Siry there were never actually any mechanical failures of the X-Trac transmission, it was simply a matter of Tesla not being able to get their control strategy to work adequately with the hardware. Subsequently Tesla contracted Magna to develop a dual clutch two speed gearbox. Unfortunately, this is the design that had durability issues leading to Tesla's ultimate decision to revise the motor for more power and go with a single speed unit for production. The vehicles running with the interim single speed gearbox are actually using the original X-Trac box with the lower gear locked out (for prototypes) or removed entirely (early production cars). - Sam
As we recently reported, rumors have been swirling regarding Henrik Fisker's involvement with Tesla Motors and its upcoming electric sedan prototype known as the WhiteStar. As is often the case, there's apparently some truth to the scuttlebutt, as Tesla has filed a lawsuit claiming that Fisker Automotive is using stolen design ideas from Tesla sourced when Fisker Coachbuild was employed by the young EV automaker for the styling of its sedan.
According to Tesla chairman Elon Musk, "We could not use the Fisker styling. The styling was substandard compared to what he unveiled for his product. He gave us an inferior work product, and it's obvious why." In the process of working for Tesla, the lawsuit contends that Henrik Fisker and a few of his associates stole design ideas and confidential information related to the design of hybrid and electric cars. Fisker has since announced his upcoming Karma hybrid-electric sedan. Tesla seeks to have Fisker Automotive stop using any design ideas garnered from its relationship with Tesla, and any money paid to Fisker Coachbuild returned along with other unspecified damages.
Click above for high-res live gallery of the Fisker Karma
A site of which this blogger previously wasn't aware is reporting that the body of the soon-to-be-revealed Tesla WhiteStar sedan was originally penned by one Henrik Fisker. According to Street Import Online, a mole deep within San Carlos has spilled the beans that the designer who recently unveiled his own plug-in hybrid super sedan, the Fisker Karma (above), had previously been contracted by Tesla Motors for its second product. According to Street Import Online, Tesla had backed out of a deal to have Fisker create the body for the WhiteStar electric sedan but kept the design.
We contacted Tesla's Marketing VP Darryl Siry to verify the accuracy of this story, and Siry declined to either confirm or deny the report, which you can interpret however you choose. If the story is true, it may well have prompted Fisker to pursue building a similar vehicle under his own name, which led to the Karma. The WhiteStar sedan is planned as a battery electric sedan, although Tesla has acknowledged that is also developing a range-extended electric hybrid version. Regardless of who actually drew the WhiteStar, Tesla has said it plans to reveal the sedan's design later this Spring after it begins delivering a steady stream of EV Roadsters. Thanks for the tip, Jose!
Update: Our own sources indicate that Tesla is not using the Fisker design for the final car. Other than having four doors and a similar number of wheels, the Whitestar is completely different from the Fisker proposal.
Click above for a high-res gallery of the Tesla Roadster.
Tesla's president and CEO, Ze'ev Drori, made the announcement today on his corporate blog that production of the Roadster has officially begun. Tesla originally set a date of March 17th for "regular" production of the Roadster, and the folks in Hethel have met that obligation today. From here, Tesla intends to get started on its retail efforts, with both a Los Angeles location and a Menlo Park facility for sales and service for the 600 roadsters expected to be built over the course of 2008. Tesla is hoping that they'll be able to produce around 100 Roadsters each month, up from its current level of one to five cars per week. All the models being produced this year have already been spoken for, so any orders that come in will be sold as 2009 models.
Efficiency is a large stumbling block if you're looking for a way to replace gasoline. It's pretty hard to better such an exceptional fuel, and several alternatives show promise but are nagged by inefficiencies or cost, and usually both. Nanotech to the rescue; it may soon be possible to produce your own hydrogen at home cheaply and easily, and NiMH batteries and fuel cells also stand to become less expensive and offer much better performance. With claims like that, QuantumSphere might well be selling fairy dust, but the Portland, Oregon-based company has developed a nanoparticle coating that may end up being the key to making alternative fuels actually viable.
QuantumSphere's catalytic nanoparticle coatings have 1,000 times the surface area of traditional materials, which means that more catalytic action can be housed in the same space. It's the the highly reactive nature of the coatings that allows cheap home electrolysis, also boding well for replacing precious metals like platinum in fuel cells with a coated piece of stainless steel. QuantumSphere's president Kevin Maloney claims that his company's technology makes electrolysers so efficient that they can supply hydrogen on demand while driving. The technology will roll out later this year in a battery that uses a coated cathode for a five-fold increase in energy density, which translates into a 320-percent power gain over alkaline cells. If things go QuantumSphere's way, we won't be paying $100,000 for the Tesla Roadster in a few years, and it will have an even better range than already promised.
Last Friday, Tesla chairman Elon Musk took delivery of the first production Roadster, which carries the name P1 (Production vehicle 1). The black coupe was flown in from Hethel, England, where all Teslas are being built alongside the Roadster's cousin, the Lotus Elise. When the Roadster arrived at the start-up's R&D facility in San Carlos, California, it was pushed into the garage and had its Thailand-produced battery pack installed. After the battery was fitted and charged, Musk led a pack of four other Roadsters on a quick drive and AutoblogGreen was able to procure a video of the run. For those of you who wanted to hear how the Tesla Roadster sounds while accelerating, we've embedded the video after the jump.
Tesla Motors has been getting a lot of press in recent months, be it from First Drives or the shifts in the company's hierarchy. However, even with increasing oil prices, the all electric market remains a small niche. The limited vehicle range, long charging time and lack of charging infrastructure for those who park on the street have left a sizable chunk of potential customers out of reach. Now it seems that Tesla Motors will no longer alienate the general market with their product lineup. They have announced that the Whitestar Sedan, in development for release sometime around the end of 2009, will be offered with two powertrain options. One choice will be the familiar all electric version with an expected range somewhere between 150 and 200 miles and the other choice will be an extended-range vehicle aka REV.
The REV Whitestar will have the ability to go 40 to 50 miles off a fully charged battery pack. It will also feature a small gasoline engine that will have the task of recharging the batteries while the vehicle is in use. With a full tank of fuel the REV should see a range of 400 miles before it needs a trip to the gas station. Obviously, this is a similar setup to GM's Chevrolet Volt concept. The Whitestar Sedan will be aimed at a different market than the Volt though. Luxury manufactures, such as BMW and Lexus, are the intended competition and fittingly, the REV Whitestar's price will fall somewhere between $50,000 and $70,000 depending on the size of the battery pack.