Tesla unveils the first Model 3 production car

Tesla is ready for a new era as the Model 3 production cars are starting to roll off the assembly line.

The first Model 3 production car

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Will Michigan ban direct Tesla sales?

Tesla Model S 3388564188_4427beac12_b

One of the lamer trends we’re seeing these days involves states banning the direct sales of Tesla cars by implementing laws to protect the dealer model. This is a pathetic example of crony politics and standing in the way of innovation and free markets.

These bans are already in place in New Jersey, Maryland, Texas and Arizona. Now Michigan is poised to do the same, and Tesla is legitimately crying foul.

  

Another Tesla Model S fire

Here’s the latest news on the third fire reported for the Tesla Model S. Tesla has sold over 19,000 of the all-electric Model S sedans but this news threatens to change the mostly positive image the company has created over the years.

  

Video of burning Tesla S

In today’s world of YouTube and social media, one viral video can instantly create a PR nightmare for a company. Tesla is dealing with that now, as the video above showing a Tesla S on fire is getting tons of views and is reportedly affecting the Tesla stock price today.

Of course, we have no idea whatsoever as to why this car was on fire and as to whether this gives any indication of real problems with Tesla vehicles. But the company needs to respond and address the issue.

  

Electric competition coming for Tesla?

Tesla Model S f

Tesla is riding high right now, as the Tesla S is a beautiful car and it’s piling up awards. The company is certainly worthy of all the praise directed its way. But, things are changing quickly in the auto business, as technological innovation is progressing rapidly. Thus, things can change quickly for Tesla as well with competition lurking.

GM and Honda made big news this week with an announcement that they’re teaming up to develop a mass-market fuel-cell system for future cars. The system, which is expected to debut in about 2020, chemically “burns” hydrogen to generate electricity without toxic emissions.

That electricity can then be used to power an electric motor: In other words, these will be electric cars, only without the batteries. GM and Honda also pledged to work on storage technologies for all that hydrogen, as well as on infrastructure — places to “get gas” for your future hydrogen-powered ride.

This doesn’t mean that the world is giving up on battery-powered electrics, of course. Batteries remain heavy and expensive, and take a while to recharge, but Tesla Motors has recently made it very clear that a great car can be built around a big heavy battery pack, despite the trade-offs.

But the GM-Honda link-up, along with Toyota’s recent confirmation that it would launch a fuel-cell car next year (a car that seems likely to be aimed directly at the Model S, by the way), is a good reminder that battery-electrics aren’t necessarily the way forward, just one of several possible ways.

That’s something that investors in any car company, including Tesla, should keep in mind.

Of course, this article is aimed at Tesla investors, and the stock issue is separate from the company and its current and future prospects. The stock may be a bit overpriced yet the company’s outlook can be fantastic.

Tesla has proven to be a leader in this space, and I think they can handle the competition. But the competition will be there.

  

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