Print 31 comment(s) - last by Cypherdude1.. on Jul 9 at 5:50 PM

Tesla Roadster, version 2.5  (Source: Tesla Motors)

Tesla Model S Prototype  (Source: Tesla Motors)
Losses are significant, even considering the downward-trending market

It's been a wild ride for Tesla Motor company enthusiasts.  After months of eager anticipation, the company became the first automotive public offering since Ford in 1956, and dumped 15.3 million shares onto the market aggressively priced at $17 (2 million of these shares were sold late, via an over-allotment option).  

That high price turned out to be an early victory for investors, who saw share prices spike up to a peak of 30.42 last Wednesday -- a gain of 78.8 percent.  However, those gains have since been erased as TSLA has taken a sharp plunge on the stock market.  The stock now sits at 15.50 (at press time), well below its IPO price.

The stock market as a whole has been struggling over the last week, with the DOW Jones Industrial Average dropping last week into the 9000s after poor job reports.  For an unproven company like Tesla that particularly spelled trouble.  

Josef Schuster, the Chicago-based founder of IPOX Capital Management LLC and manager of the Direxion Long/Short Global IPO Fund comments, "The company is a great concept with relatively weak fundamentals.  Markets are weak and in a weak market right now this is hurting the company even more."

Despite having one of the first true electric vehicles on the U.S. market -- the Tesla Roadster, recently update to "Version 2.5" -- and several upcoming vehicles, investors are finally falling out of love with the company and taking a hard look at its financials.  Tesla lost $29.5M USD in Q1 2010 -- almost double what it lost in that quarter last year, and over half of what it lost 
overall last year ($55.7M USD).

Electric vehicles have received a firm monetary and public commitment from U.S. President Barack Obama.  Tesla faces tough competition in the near future, from entry-level competitors like GM's 2011 Chevy Volt and Nissan's 2011 Leaf EV.

However, it'd be premature to write off Tesla entirely.  Its Model S entry-level luxury EV looks promising, if it can keep costs contained.  It also has a key new contract with Toyota to help the Japanese automaker develop electric vehicles.

Comments     Threshold

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

electric cars == stupid
By muhahaaha on 7/7/2010 3:54:26 PM , Rating: 2
I constantly get down rated for saying that EV technology is going to be epic fail. This time probably won't be any different.

And the majority of our electricity is generated with... drum roll please... fossil fuels. Green, my 455.

Today's battery tech is not up to the job anyway. Maybe someday, but not today.

RE: electric cars == stupid
By guacamojo on 7/7/2010 5:12:10 PM , Rating: 2
And the majority of our electricity is generated with... drum roll please... fossil fuels.

Electrification of any significant portion of the vehicle fleet would result in huge new demand for electricity.

As a result, a very large amount of generation would have to be added to support EV's. (the same is true for hydrogen cars) The new capacity can be greener (solar), less-green (fossil), or anything in between (nuclear). The current mix isn't really significant to the long-term requirements.

Also note, fixed installation fossil-fueled generators can scrub emissions, sequester CO2, etc. which makes them somewhat greener than a fleet of gas-burning cars.

RE: electric cars == stupid
By ThomasDM on 7/8/2010 9:05:22 AM , Rating: 2
And the majority of our electricity is generated with... drum roll please... fossil fuels. Green, my 455.

That's true in most countries, but even if fossil fuels are used to generate the electricity it's beneficial because the well-to-wheel efficiency of electric cars is much higher.

"This is from the It's a science website." -- Rush Limbaugh

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM

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