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A now profitable Tesla motors hopes that a $49,900 Model S sedan will send its profit soaring to even greater heights.

The company is also launching the Roadster Sport model in 2011.  (Source: Tesla Motors)
After years of losses, the company's persistence is finally paying off

Luxury electric car maker Tesla Motors appears to be firing on all cylinders.  Despite a painful couple of years that saw the company cutting back to survive the recession, the company emerged stronger than ever.  Thanks to a new partnership with Daimler, additional engineering, distribution, and marketing resources were gained.  And most importantly, Tesla finally began to deliver vehicles.

Now the company can celebrate an important milestone -- its first profit.  After many months in the red, July saw the company in the black, making $1M USD in profit on $20M USD in revenue.  The profits came thanks to a record 109 cars shipped in the month.  Manufacturing cost cuts also helped to enable the profit.

Tesla Chief Executive Elon Musk comments, "There is strong demand for a car that is unique in offering high performance with a clean conscience.  Customers know that in buying the Roadster they are helping fund development of our mass market electric cars."

Tesla, like many R&D driven greentech firms, offered a target date for profitability.  However, it appears that Tesla is one of the few to actually deliver on such a date -- having projected a profit in "mid-2009".

The Tesla Roadster undeniably features the most attractive production electric vehicle body design to date.  They also offer fittingly sporty performance and a utilitarian 244-mile range.  In other words, while expensive, the Roadsters do deliver a strong experience.  Currently, the Roadsters retail for a base price of $109,000.

Tesla has borrowed $465M USD from the U.S. Department of Energy, to produce a luxury sedan reachable by more customers at a price point of $49,900.  This new model will be called the Model S.

The company is also working with Daimler to create electric versions of the popular Smart car.  Late this year, the company will deploy a fleet of the 1,000 of the electrified ultra-compact vehicles.  Tesla is also set to deploy a higher-performance version of the Roadster -- the Roadster Sport -- in 2011.



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RE: Affordable?
By drmo on 8/10/2009 11:32:15 AM , Rating: 2
First, Prius is not a luxury vehicle, so the half the price thing is pointless.

If they can sell 10000 of the luxury vehicles, then they will be able to pay back the LOAN. Over several years, this should be able to be done.

Also, there is the technology developed (and sold to other companies) that should help them pay back the loan.


RE: Affordable?
By Keeir on 8/10/2009 7:02:19 PM , Rating: 2
quote:
If they can sell 10000 of the luxury vehicles, then they will be able to pay back the LOAN. Over several years, this should be able to be done.


IF the car costs less than 500 million to reasearch and build. Likely the RD/Captial cost 500 million and from there the profit on each vechile will be around ~5,000 (at best). So its more like 100,000 cars would need to be sold before Tesla could pay back the loan.


"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation














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