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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: You're Welcome Tesla
By Murst on 8/10/2009 6:21:54 PM , Rating: 2
When the government was investing in the railroads, it was also unclear as to whether that was a good investment or not. Instead of making this a huge history lesson, I encourage you to look into what happened in the US with canal building, and then the railroad industry.

Is Tesla really a bad investment? That will not be determined for a long while, most likely. But who knows... maybe Tesla will contract out their battery making to a manufacturer ( using the provided gov't money ), and the battery manufacturer will discover a new way to make batteries thus eliminating our dependence on fossil fuels.

Point is... no one, including Warren Buffet ( who is probably the most successful investor ) really knows whether something is a good investment or not. Some people are better than others, but no one is 100% correct.

quote:
What I do see is the potential for some of the ultra-rich to get even more rich due to government handouts at the expense of the public debt.

What I see is that the ultra-rich are afraid that their massive wealth growth over the last 9 years is about to slow down, and the benefits will now target the middle and lower classes... but that's another discussion. ;)


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