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Tesla Still Losing Money, But Plans an Early Debut for Its Sedan
MIT Technology Review ^ | 09 May 2012 | Kevin Bullis

Posted on 05/14/2012 2:05:48 PM PDT by Red Badger

The automaker plans to ship its Model S electric sedan in June, rather than July.

Tesla Motors announced today that it is on track to start delivering its Model S in June, a month ahead of schedule. It moved up the date of the first deliveries because it’s nearly completed testing on 80 cars it’s built so far.

Tesla continues to lose money. It lost nearly $90 million in the first quarter of 2012, compared to a loss of about $50 million during the same period the year before. It’s staying afloat in large part thanks to a Department of Energy loan. It continues to meet the milestones required by the loan, so it still has access to the money, unlike Fisker Automotive, another small automaker selling electric vehicles, which recently fell behind on its DOE milestones and lost access to its loan funds.

Tesla expects a large shot of revenue in the second half of the year, once it starts shipping the Model S. Of the $560 to $600 million it expect to bring in during 2012, 90 percent will come after June. It plans to deliver 5,000 cars this year, and it already has 10,000 reservations for the car.

The expected revenue jump won't necessarily make the company profitable though (see "Will Tesla Survive?"). That could depend on whether the cost of making the car is low enough for it to break even, something that seems unlikely given that it is a completely new vehicle.


TOPICS: Business/Economy; Government; Technical; US: California
KEYWORDS: autos; green; tesla; teslamotors

Tesla Model S........

1 posted on 05/14/2012 2:05:55 PM PDT by Red Badger
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To: Red Badger

I bet they don’t let “Top Gear” test one.


2 posted on 05/14/2012 2:12:56 PM PDT by razorback-bert (Some days it's not worth chewing through the straps.)
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To: Red Badger

Too bad the MSRP on the S continues to skyrocket. I had hopes for this car but it looks like it’ll only be for the uberwealthy.


3 posted on 05/14/2012 2:13:47 PM PDT by al_c (http://www.blowoutcongress.com)
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To: Red Badger

“It’s staying afloat in large part thanks to a Department of Energy loan.”

Great. Should see repayment any time now.


4 posted on 05/14/2012 2:16:11 PM PDT by Huskrrrr
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To: al_c

If you want something to fail, just take a great idea and then involve the feds.


5 posted on 05/14/2012 2:18:11 PM PDT by Brownie63
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To: Red Badger
Tesla Still Losing Money

Guess they need to go out on tour again.


6 posted on 05/14/2012 2:20:06 PM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: razorback-bert

I bet they don’t let “Consumer Reports” test one, either.............


7 posted on 05/14/2012 2:20:06 PM PDT by Red Badger (Think logically. Act normally.................)
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To: Huskrrrr

In liberalism, It’s the thought that counts..............


8 posted on 05/14/2012 2:21:25 PM PDT by Red Badger (Think logically. Act normally.................)
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To: dfwgator

I bet they are all bald and fat by now...........


9 posted on 05/14/2012 2:22:35 PM PDT by Red Badger (Think logically. Act normally.................)
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To: dfwgator

On May 10, 2011, the band played at a rally for the Sacramento Kings of the National Basketball Association. Tesla performed two songs, “Signs” and “Love Song” during the Kings #HereWeRally at Cesar Chavez Park in Sacramento, California to celebrate the team staying in Sacramento for at least one more year. In 2011, they released an acoustic album Twisted Wires and the Acoustic Sessions.[8]

http://en.wikipedia.org/wiki/Tesla_%28band%29


10 posted on 05/14/2012 2:24:09 PM PDT by Red Badger (Think logically. Act normally.................)
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To: Red Badger

The title reminds me of “Madman” Muntz, who manufactured and sold televisions in the ‘50s and ‘60s with the (paraphrased) motto, “We lose money on every unit but make it up in volume.”


11 posted on 05/14/2012 2:26:35 PM PDT by Hebrews 11:6 (Do you REALLY believe that (1) God IS, and (2) God IS GOOD?)
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To: dfwgator

I was going to say that they need to stick to music. Actually, they are quite a good band. They got lumped in with hair metal, but were really more like the 70’s rock bands in style.

The way it is, the way is goes.


12 posted on 05/14/2012 2:28:06 PM PDT by Darren McCarty (The Republican Party is bigger than the presidency.)
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To: Red Badger

80 cars built? and they got how much from the stimulus??


13 posted on 05/14/2012 2:28:55 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Red Badger

Looks like Tesla has a running garage fire match with Chevy Volt:

http://www.greencarreports.com/news/1076037_was-a-fisker-karma-the-cause-of-a-recent-house-fire


14 posted on 05/14/2012 2:50:25 PM PDT by Ben Hecks
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To: Ben Hecks

Fisker is a different manufacturer.............


15 posted on 05/14/2012 2:51:32 PM PDT by Red Badger (Think logically. Act normally.................)
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To: GeronL

Methinks Somebody be skimming off the top......


16 posted on 05/14/2012 2:52:24 PM PDT by Red Badger (Think logically. Act normally.................)
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To: Red Badger

What is all this B.S.about?We have more petroleum than ANYONE in the world!Why do we need all this B.S.???????????


17 posted on 05/14/2012 2:55:11 PM PDT by bandleader
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To: Red Badger

Oops! Those battery-powered government cars all look alike to me. LOL


18 posted on 05/14/2012 2:56:01 PM PDT by Ben Hecks
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To: razorback-bert

They already did, last season.


19 posted on 05/14/2012 3:02:48 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Hebrews 11:6
“We lose money on every unit but make it up in volume.”

That's a good one. It's how the liberals expect to eventually make a profit from solar and wind power.

20 posted on 05/14/2012 3:51:29 PM PDT by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: Brownie63

Well said.


21 posted on 05/14/2012 4:04:54 PM PDT by al_c (http://www.blowoutcongress.com)
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