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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: Tesla Great Grant Getter
By sinful on 8/7/2010 6:28:39 PM , Rating: 3
Of which they are NOT required to share ANY of this tech with anyone being a privately owned company and all. Don't bother bringing up Toyota. There was an economic gain for Tesla involved. If they were truly altruistic, which their "followers" seem to think, they would've given away their battery tech.

Uh, they got a LOAN from the government.
Not free money.

So... you have no point whatsoever.

And what's amazing is how people who are all "Free market rah rah rah" don't have the slightest clue how it works.

Perhaps if the world's governments were personified into corporations they'd have a better grasp.

For example, USA-CORP just made a loan to another company that will potentially GREATLY benefit USA-CORP. They may not reap monetary profits directly, but it will help the marketplace move away from SAUDI-CORP's products. SAUDI-CORP's products are bad for USA-CORP because every dollar that goes to SAUDI-CORP is a dollar that USA-CORP loses out on.... Thus even if the LOAN by USA-CORP doesn't make bundles of cash, it doesn't matter so much as long as USA-CORP's interests are advanced.

The people whining about USA-CORP doing this obviously don't realize that SAUDI-CORP is and HAS BEEN doing this for a really long time and on a much larger scale. And thus, "doing nothing" is just another way of saying "Well let's just let SAUDI-CORP make all the decisions, even if it's bad for USA-CORP and its investors..."

Is it starting to sink in yet??

RE: Tesla Great Grant Getter
By Reclaimer77 on 8/8/2010 11:58:04 AM , Rating: 2
Uh, they got a LOAN from the government. Not free money.

They got their "loan" in the middle of the worst economy in recent history. Where the government has spent itself into bankruptcy. But they can afford to give loans to high risk, low benefit, glamor tech car companies? I might not even mind the loans so much, but has Tesla ever shown that they can at least be solvent without Government money? Not as far as I can tell. And based on what I'm reading, these were LIFE SUPPORT more than they were loans.

At least for me, that's where the anger comes from. It's not that we're giving loans for this stuff, it's the timing of it. When you have no money, and KEEP spending money like you don't have a problem, eventually the burden is going to be placed on the taxpayers. We are raping the future of our children and grandchildren, and you people don't seem to care.

These loans are just an example of a sickness in Washington. That's the only way to describe it. These people are so hell bent on their agenda, they don't care how many future generations they are robbing from. It's a sickness.

"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken

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