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Tesla is racing to release its Model S by 2012. As a result it posted another big loss this quarter, burning through a fair chunk of its cash at hand.

Tesla will also deliver an electric version of the Toyota RAV4 crossover in 2012.  (Source: New and Fastest)
Tesla has already lost more this year than it had all of last year

The good news for Tesla Motors is that the company has plenty of cash on hand thanks to government grants and an incredibly successful initial public offering that raised $226M USD.  The bad news is that the company is burning through cash fast as it attempts to develop new vehicles and expand its distribution network.

Reporting financials for the first time as a publicly traded company, Tesla just announced a loss of $38.5M USD for its second fiscal quarter, 2010.  Year-to-year it reports its revenue rose 5 percent, to $28.4M USD.  A year ago the company only lost $10.8M USD, though.

Tesla is looking to begin producing and selling its upcoming Model S mass market luxury sedan in 2012, priced at $57,400 USD.  The car will retain some luxury trappings and have a range of 160 miles.  Tesla will produce the new model at the the former NUMMI factory, located in Fremont, California, which it obtained from Toyota as part of a joint development deal.  The factory had been scheduled close after former co-operator GM pulled out, in the wake of its bankruptcy.

Tesla also has a hand in the development of an electric version of Toyota's RAV4 crossover SUV which will also hit the market in 2012.  Toyota gave Tesla a relatively meager $50M USD to help develop the plug-in, but also gave it access to the NUMMI plant and other perks.  Tesla also recently revealed that it is developing 3 other vehicles internally -- another crossover/SUV, a Cabriolet, and an electric van.

Tesla also has been opening new stores in recent months.  Last month it shipped its first Roadsters to Canada and Japan.

For Tesla, its current financial predicament basically boils down to weathering the storm, which is never an easy position for a company.  If the company can stay afloat through 2012 and make its deadlines for the Model S and Toyota RAV4 vehicles, it will be poised well to return to its short-lived profitability of 2009.

In total Tesla has already lost more this year ($68M USD) than it did 
all of last year ($55.7M USD).  One promising sign, though, was that Tesla significantly improved its gross margin to 22 percent, up from 8 percent from a year before.  Gross margin is a measure of profitability that weighs production costs versus sales costs.

While still above the $17 IPO price, shares of Tesla (TSLA) have plummeted from a high of $22 earlier this week to $19.80 following the financial report.

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RE: Duh
By Pirks on 8/6/2010 11:46:46 AM , Rating: -1
Don't be so twitchy, the Internet was also government sponsored in its early days. Advanced industries need help of the government 'cause market alone doesn't care that much about advancement of technology when such technology needs huge capital investment and the payoff is not immediate.

RE: Duh
By nafhan on 8/6/2010 12:42:04 PM , Rating: 4
The internet was originally a military project run by DARPA, slightly different. The Tesla thing is more like a government sponsored version of AOL. Government sponsored research is great for the reasons you mentioned, military projects are an unfortunate necessity, but this is neither.

RE: Duh
By Pirks on 8/6/10, Rating: 0
RE: Duh
By dastruch on 8/6/2010 2:56:09 PM , Rating: 2
Advanced transportation of the future!?!? My bottom. Teleportation.

RE: Duh
By Pirks on 8/6/2010 3:21:38 PM , Rating: 2
That's next in line after the last ICE on Earth is recycled and China builds enough fusion reactors.

RE: Duh
By nafhan on 8/6/2010 4:53:24 PM , Rating: 4
Think of it as the partially government funded producer of the advanced, expensive, rich people's transportation of today and you'll be kind of annoyed that your taxes are going towards it.

RE: Duh
By The Raven on 8/6/2010 12:47:24 PM , Rating: 2
The market cares more about advancement of technology than the gov't. The only reason the gov't would like to advance tech is to create jobs and find ways to spread money around.
I know that 'creating jobs' sounds like a good thing, but in and of itself it is not. How about there are less jobs and I only have to work 4 hours a day. All these technological advancements and I still have to work 8 hours a day.

RE: Duh
By Spuke on 8/6/2010 1:29:15 PM , Rating: 2
All these technological advancements and I still have to work 8 hours a day.
Technology won't change that but some radical thinking would. Personally, I how many hours you work should be determined by what kind of work you do and how much work you have to do. IMO, too many companies think there's 8 hrs a day of work to do. Even the busiest job has lull periods. It would actually save companies money to not have certain people on the clock all day, everyday.

RE: Duh
By Pirks on 8/6/10, Rating: 0
RE: Duh
By AssBall on 8/6/2010 2:20:16 PM , Rating: 2
The internet wasn't a private company selling a luxury consumer product for a profit. Your analogies are just awful, Pirks.

RE: Duh
By Pirks on 8/6/10, Rating: 0
RE: Duh
By AssBall on 8/6/2010 3:15:03 PM , Rating: 4
If the military can sell equipment for a profit, then the money goes back into the military, and lessens the overall tax burden going to the military. Everyone (the majority who voted for it to pass) wins (if you want, think of the military like a company that is owned by every citizen).

When Tesla sells a car, it is a is a tax burden for the citizen. Tesla profits. And everyone else loses money.

You could argue that Raytheon gets a kickback, sure, but remember where their product goes. Everyone (the people's military) just bought it, and Everyone gets the product. Not just some rich eco-jackass.

At least you can say you got something for military spending, even if it is something you didn't want. But I don't have much to show for when I buy someone else's car, house, etc.

RE: Duh
By Pirks on 8/6/10, Rating: 0
RE: Duh
By Spuke on 8/6/2010 3:58:02 PM , Rating: 4
You don't JUST pay into the Tesla pocket, it's bigger than that. You're investing in your safe and clean future.
Tesla is a privately owned business, where are they required to share their knowledge with the public? Because, unless you're working there, that's the only way WE benefit from Tesla. The military is owned, hook, line and sinker by the public. And have already contributed to society (Internet, GPS, etc.). How does a $120,000 or $57,400 car benefit society? Some of you seem to think that these companies (that are privately owned) owe us. They do not. They exist, by law (publicly traded companies in the US), to turn a profit.

Tesla's designs are proprietary and they are NOT required to share with anyone else. So who benefits from Tesla's exploits again?

RE: Duh
By YashBudini on 8/6/2010 4:26:19 PM , Rating: 2
Tesla is a privately owned business

That should be past tense, yes? Didn't Toyota buy them?

RE: Duh
By Cheesew1z69 on 8/6/2010 4:27:03 PM , Rating: 2

RE: Duh
RE: Duh
By Pirks on 8/6/10, Rating: 0
RE: Duh
By Spuke on 8/6/2010 7:16:00 PM , Rating: 2
he more money they make - the faster US will get rid of the foreign oil dependence
No we don't. We can consider ourselves off of foreign and domestic oil (the two can't be separated..oil is a commodity), when the vast majority of the US is not using oil. That's takes an effort on most all industries as well as some personal responsibility. You can "do your part" by reducing the amount of oil byproducts that you use. Here's a few:

Granted, transportation is about 45% of the usage and reducing that makes a huge dent but we as individuals don't have to wait for demand of cars that use other than crude oil to show up.

RE: Duh
By tng on 8/6/2010 8:36:09 PM , Rating: 2
Agreed, there are more than just cars out there that use many products that are derived from oil.

The US does have a large oil reserve contrary to popular belief. Problem is that it is still cheaper to get it from the Middle East. The oil from the Middle East is cheaper to refine and yes, the labor costs here are another factor.

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