Print 38 comment(s) - last by icegreenhemp.. on Feb 14 at 4:52 PM

Sneak peek of the upcoming four-door Tesla Model S

Tesla's new Roadster Sport should offer powerful performance for an electric vehicle at a lofty cost.  (Source: Tesla Motors)
After a tough year, with many cuts, Tesla believes it is finally competitive

It’s been a grueling year for Tesla Motors.  The company angered many of its employees last  year when it laid off nearly its entire Michigan staff, which first found out they were losing their jobs not from Tesla itself, but by a posting on a financial blog.  Later in the year, Tesla seemed poised to make a comeback, announcing its sporty new Tesla Roadster Sport electric vehicle, available for those who preordered the Roadster.  However, it then proceeded to anger customers who preordered by raising the price on the base Roadster model.

However, despite its trials and tribulations, the fledgling company says it will be sold out of Roadsters until around November and that by the middle of the year it should finally be posting profits.  Founder and Chief Executive Elon Musk, who became a billionaire by founding PayPal, also announced that Tesla will be receiving a $350M USD federal loan from the U.S. Department of Energy to help finance the development of its upcoming electric 4-door sedan, to be released in 2011.

Mr. Musk praised the Obama administration for its helping hand, stating, "The Obama administration has thankfully made it a top priority to move quickly on the Advanced Technology Vehicles Manufacturing loan program."

Tesla has experienced some preorder customers cancelling their orders "due to buyers experiencing personal financial difficulties".  However, there seems to be plenty who have the money and still want to get the hot new car.  It expects all of its 2009 production of the $109,000 vehicles to sell out.

In 2008, Tesla cut 24 percent of its staff, but it managed to produce 200 Roadsters, and is still sitting on 1,000 reported preorders.  Customers pay $12,000 up front to reserve the right to own one of the hot new vehicles.  Battery packs for the vehicle are reported to last 7 years or 100,000 miles and cost around a staggering $36,000 to replace.

The prototype of the upcoming Model S 4-door sedan will be unveiled on March 26, according to Mr. Musk.  He says that he will be offering a discount of $10,000 to those who preordered the Roadster and want to switch to the sedan as a "gesture of gratitude for their early support."

Tesla also recently announced a partnership with Germany's Daimler AG to create a plug-in version of Daimler's Smart minicar.  Mr. Musk announced that he is currently in the pursuit of two more major deals with other companies.  He also announced that Tesla is set to open stores in Chicago and London and is close to reaching agreements for stores in Miami, New York, Seattle and Munich.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Tesla Says It Will Finally Be Profitable By Mid-2009
By acase on 2/12/2009 11:18:07 AM , Rating: 4
...and everyone laughs.

By yomamafor1 on 2/12/2009 11:29:09 AM , Rating: 2
Wow, after they've done screwing existing customers, and they're now finally profitable?

They should've been profitable months ago when they demanded up-front down payment when they haven't even purchased the material to actually produce a car.

By TomZ on 2/12/2009 12:38:19 PM , Rating: 2
Yeah, I agree - the chances of them being profitable mid year are probably 1:10. It is more likely they will be asking for bankruptcy protection.

By quiksilvr on 2/12/2009 1:57:43 PM , Rating: 2
Agreed. They had amazing technology and fcuked it all up with their idiotic roadster. Why didn't they just make a 4 door sedan for $50,000? They would have sold so much more.

By Aloonatic on 2/12/2009 4:34:55 PM , Rating: 3
Whilst I agree with your point in general about 4 door cars being a larger market, the roadster has given them a lot of attention as they are just a more interesting and sexy type of car that has grabbed the headlines.

They've taken the "envirocar" into territory that it had never been before. Until they came along all we had seen was boring and rather ugly 4 door cars that hardly set anyone's pulses racing with their performance figures or looks.

Now that they have got people exited and changed perceptions of these kinds of vehicle, a well designed 4 door that doesn't look like every other car that's just come out of a wind tunnel, they could really make them a lot of money.

If only people had money to spend.

"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki