“The best way to predict the future is to invent it” Alan Kay
MIT/Stanford’s VLAB project had an interesting panel last Tuesday. The focus of attention was my hometown favorite, Tesla Motors. No, I don’t live in Detroit, I live in San Carlos, at the northern end of Silicon Valley.
Tesla is producing a limited quantity of high performance sports cars that will be available this Fall. The Tesla Roadster is a 100% electric two seater that’s faster than a Ferarri from 0 – 60 mph. No word how it does around corners, but the low center of gravity provided by the lithium ion batteries should be an advantage.
The batteries are the same ones used in most laptops. This was Tesla’s out of the box moment. Unlike other attempts at building a 100% electric car, they decided to use commodity laptop cells. They’ve engineered an optical network for battery management and a cooling system to prolong the battery life. Tesla warrants the battery pack for 100,000 miles.
Tesla doesn’t differentiate itself on technology alone. Their business model is based on a direct relationship with the consumer. They will not franchise dealerships. The value of the customer relationship is too great according to Martin Eberhard, Tesla’s CEO. He lamented that some states had laws that protected car dealership’s position in the automotive sales and distribution network and prevented a manufacturer from selling directly to the consumer. That’s why Tesla won’t sell product in Texas.
The Tesla Roadster will be remembered as a limited production, hand built, two seater in the Lotus tradition. In fact, Lotus is assembling the final product in the UK with motors from Taiwan and batteries from Thailand. I’m sure the end result will be quite collectable.
To build the nextgen, Tesla closed a deal to construct a manufacturing plant in New Mexico. That plant will build “Project Whitestone“, a 4 or 5 passenger sedan that will get the equivalent to 110 miles per gallon with a 500 mile range. They expect to sell 10,000 of them by 2009. That many Whitestones will take 7 million Li batteries. That’s more than Dell used in 2006 for all of their laptop production. The era of “cheap batteries” is ending.