backtop


Print 48 comment(s) - last by Laereom.. on Nov 1 at 12:17 PM

The new Model S sedan, which will carry a price tag of $57,400

Tesla Motors CEO Elon Musk recently announced that the company would launch an all-electric Model S sedan next year. Now, Musk has told Bloomberg Television that next year's production of the new Model S has sold out, and that he expects Tesla to earn a profit in 2013.

Recent reports noted that Tesla has lost money on every Roadster sold, which includes the two-seat Roadster and the Roadster Sport, which had price tags of $109,000 and $128,500 respectively. The news came yesterday that a new Roadster will arrive in 2014, and that a range of vehicles are expected over the next four to five years as well, including the new Model S sedan, which will carry a price tag of $57,400.

"The Model S starts at half price of the Roadster, about $50,000," said Musk, noting that the original Roadster will no longer be in production and was always limited. "The Roadster is high price, low volume. Model S is mid-price, mid-volume. Our third generation, which will be in 3 or 4 years will be low price, high volume. It is the only strategy that could work because we need to build up the economies of scale."

Tesla Model S [Source: Tesla Motors]
 
The loss on each Roadster was just part of the problem for Tesla. The company is also facing scrutiny in regards to its worthiness of receiving government funding. Many have compared Tesla and Fisker Automotive's EV loans to the huge $500 million loan given to solar company Solyndra, which went bankrupt in September.

"I defended it and I have said if you have a portfolio of loans, and they're acknowledged to be high risk, you're going to have some failures in the mix," said Musk regarding Solyndra. "One should not expect to bat 1000. Critics say why can't the government bat 1000. The best venture capitalists on Earth can't bat 1000, why do you expect the government to?"

Musk is looking ahead to a brighter future for Tesla, brushing aside worries regarding competition such as that from BYD. Musk said he didn't think BYD's products were all that "great" or attractive anyway, and that the technology isn't all that strong. According to Musk, BYD needs to concentrate on the issues at hand in China.

Tesla Model S [Source: Tesla Motors]

The upcoming potential for a profit in 2013 and the Model S sellout have Tesla thinking optimistically toward the future where Musk envisions the entire industry going electric.

"I think the entire industry will go fully electric," said Musk. "I think that all modes of transport will go fully electric with the exception, ironically, of rockets. The question is just how soon.”

Source: Bloomberg Television



Comments     Threshold


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

One hand feeds the other
By wordsworm on 10/28/2011 7:57:39 PM , Rating: 2
If Musk succeeds in making electric cars the norm, that would drive the price of gas way down, and make fuel for rockets cheaper since the demand would fall. I can't help but wonder how far he'll go.




RE: One hand feeds the other
By delphinus100 on 10/28/2011 8:23:57 PM , Rating: 2
However, rockets don't burn gasoline...

Though to be fair, many rockets, including Musk's Falcons, do burn what is essentially high-grade kerosene, similar to jet fuel. Reduced gasoline demand, and the drop in crude oil prices that come with that, still might have that effect.

But then again, and unlike commercial aircraft where it is a driving factor, the cost of fuel is not what makes space launch expensive. Otherwise, it wouldn't cost much more to go to orbit, than to fly across the Pacific.


RE: One hand feeds the other
By wordsworm on 10/29/2011 2:55:13 AM , Rating: 2
Isn't kerosene a gas?


RE: One hand feeds the other
By HolgerDK on 10/29/2011 9:19:29 AM , Rating: 2
quote:
Isn't kerosene a gas?


No, its a liquid: http://en.wikipedia.org/wiki/Kerosene


RE: One hand feeds the other
By wordsworm on 10/29/2011 9:48:54 PM , Rating: 3
I guess gasoline is a liquid as well. So, maybe 'gas' was a poorly chosen word. I wonder why they call those boxes in cars 'gas tanks' and those places you go to pump gasoline, diesel, etc., into the vehicle, gas stations... most peculiar. They should call them liquid stations. But, it wouldn't be the first time that vernacular is a poor vehicle for precise communication.

So, I will amend my original post to say that should Musk successfully convert consumers into users of electric vehicles, it would have the effect of lowering fuel costs for his rockets at SpaceX.


RE: One hand feeds the other
By CheesePoofs on 10/30/2011 10:46:08 PM , Rating: 2
Fuel is a tiny fraction of the cost to launch a rocket, probably significantly less than 1%.


RE: One hand feeds the other
By Laereom on 11/1/2011 12:17:07 PM , Rating: 2
They call it 'gas' because it's short for 'gasoline'. It has nothing to do with references to state of matter.


RE: One hand feeds the other
By spread on 10/31/2011 11:09:31 PM , Rating: 2
quote:
No, its a liquid: http://en.wikipedia.org/wiki/Kerosene


No. It depends on the temperature. It has a boiling point and can turn into a gas.


RE: One hand feeds the other
By bjacobson on 10/28/2011 10:10:19 PM , Rating: 2
yeah cause rockets burn gasoline@!!! wait what???


RE: One hand feeds the other
By wordsworm on 10/29/2011 2:26:00 AM , Rating: 2
Where do you think the kerosene used in rockets comes from?


RE: One hand feeds the other
By veculous on 10/29/2011 10:27:37 AM , Rating: 1
Rockets don't use kerosene; jets use kerosene. The difference between a rocket and a jet is that a jets use atmospheric oxygen to burn their fuel whereas rockets carry their oxygen on-board.

For example, some rockets burn liquid hydrogen with liquid oxygen. And then there's propulsion grade (>98%) hydrogen peroxide (consumer grade = 3%).

In any case, a rocket must be able to burn its fuel in the absence of an atmosphere.


RE: One hand feeds the other
By wordsworm on 10/29/2011 7:48:24 PM , Rating: 3
You should contact SpaceX and the Russian space program to tell them to stop using kerosene in their rockets.


RE: One hand feeds the other
By CheesePoofs on 10/30/2011 10:47:04 PM , Rating: 3
RE: One hand feeds the other
By Spuke on 10/28/2011 10:49:44 PM , Rating: 2
quote:
If Musk succeeds in making electric cars the norm, that would drive the price of gas way down
Keep dreaming. You really think OPEC is going to drastically lower the price of gas? LOL! Here's what they'll actually do (what they've always done). Lower the supply to the point where prices continue to stay high. Maybe even higher.


RE: One hand feeds the other
By web2dot0 on 10/29/2011 8:48:04 AM , Rating: 1
Do you work for OPEC or something? :-D The price will go down because if people go all electric (a hypothetical situation), oil rigs will have to SHUTDOWN. In order to keep the operation running, they will have to lower prices.

If you and me don't need gas, you can make the price cost $100000/litre, and I wouldn't care.

BTW, if there is such a obvious signs of collusion, the gov't will step in. Your cynical view will not hold water.

The reality is it won't happen because you can turn the country into all electric overnight. But to say that IF the hypethetical situation happens nothing is going to change is ridiculous.

Besides, you actually WANT to make electric cars the norm because we will get rid of our dependance for oil. Is there something wrong with that? Swallow the blue pill because I really want to show you how deep the rabbit hole is.


RE: One hand feeds the other
By Kurz on 10/29/2011 12:10:39 PM , Rating: 2
Its actually the Red Pill.

Oil Rigs will shutdown, but only because the demand and the prices and income aren't there anymore to support the operation. Consumers drive demand and innovation not the other way around.

Though the question is where we going to get all that extra energy from? How will we effectively store electricity (Since so many Megawatt hours are wasted every day, chemical based batteries are not viable for this on a large scale)? How do we harvest electricity? All these questions must be answered.


RE: One hand feeds the other
By Dorkyman on 10/29/2011 4:40:32 PM , Rating: 2
I take it you've never taken an econ class, right?

And your hypothetical (if we all drove electric cars) makes as much sense as "You know, if pigs had wings they could fly." Well, yes, I suppose they could.


RE: One hand feeds the other
By jimbojimbo on 10/30/2011 3:02:08 PM , Rating: 2
Have you been watching the news for the past 40 years or so? OPEC's been pulling this crap for years! As alternative fuels get popular they've been known to up production to lower costs so as to make gasoline the better alternative again. Then when everything's back to gasoline they'll lower production to raise the prices. After all they don't want to pump all their supply out so they'll just lower production. They don't give one crap about shutting down rigs or laying off workers. They only care about how much money they keep making.


RE: One hand feeds the other
By delphinus100 on 10/29/2011 7:45:15 PM , Rating: 2
You remember that one of the few 'benefits' when the economy bottomed out, was that gas prices went down due to decreased demand, don't you?

I do. (So do airlines and truckers who'd been dealing with record high fuel prices, not long before.)

Even OPEC can't beat the laws of supply and demand.


RE: One hand feeds the other
By jimbojimbo on 10/30/2011 3:04:16 PM , Rating: 2
They aren't gods and can't control immediate prices but the economy is still crappy so how cheap is gasoline these day? Pretty damn expensive. Right where they want it.


RE: One hand feeds the other
By wordsworm on 10/30/2011 6:52:59 PM , Rating: 2
Exxon just posted record profits. They're not suffering at all from the recession.

In all seriousness, though, if energy was cheaper, it would revive the economy in a big way. Electric cars, on a massive scale, would have a huge impact on the environment and economy.

So, let's hope Musk succeeds...


RE: One hand feeds the other
By Dr of crap on 10/31/2011 10:23:02 AM , Rating: 2
OPEC doesn't control oils price and hasn't for some time.
Have you heard recently about OPEC driving oil prices?
Nope.
Oil price is controled by trading on oil futures. Has been since about 2005.


RE: One hand feeds the other
By danjw1 on 10/29/2011 10:25:41 AM , Rating: 2
It is going to be quite some time before you see big rig trucks going electric. Natural gas, is a more likely route for them. Still a fossil fuel, but it burns a lot cleaner then gasoline and we have it in significant supply.


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














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki