For the week from Tuesday, July 8, 2014, to Tuesday, July 14, 2014, the stock price of Tesla Motors Inc (NASDAQ:TSLA) had some up and down swings, but ended the week almost where it started, with a small increase of 0.23 percent. This was slightly behind the market as a whole — the Dow increased 0.91 percent, Nasdaq increased 0.57 percent, and the S&P 500 increased 0.49 percent for the period.
China Requiring 30 Percent of Government-Purchased Cars to Be Electric
After China announced over the weekend that at least 30 percent of the cars the government buys must be electric, TSLA rose almost 5 percent on Monday. The excitement was tempered, however, by concerns that the Chinese government would favor Chinese car companies over Tesla.
Tesla’s Lowest-Priced Car Gets a New Name
The Tesla car that will be aimed at the mass market has been dubbed the “Model III.” The car will cost about $35,000 and is expected to debut in 2017. Previously, the car was going to be called the “Model E,” which would have enabled the names of the three models to spell S-E-X, but that idea, which had originated as a joke and then became the actual plan, had to be scrapped when Ford (NYSE: F) objected, saying it owned the trademark on the Model E name.
The $35,000 price tag is about half of what the current Model S costs. The “III” in the new name refers to the car being the third vehicle Tesla will offer. The second, the Model X, will be an SUV that is scheduled to debut early in 2015.
White House Turns Down Petition to Allow Tesla’s Direct Sales
Someone identified only as “K.S.” started a petition asking the White House to help Tesla in its battle against the auto dealerships that are trying to make Tesla’s direct-to-consumer sales model illegal. The petition, which got more than the 100,000 signatures necessary to compel a White House response, asked the administration to allow Tesla to use its direct sales model in all of the states.
A spokesman for the Obama administration, however, said that it was out of their hands, as laws regulating the auto industry are traditionally handled at the state, not the federal level.