Tesla Motors Says Model S '12 Production Run Sold Out, Will be Profitable in '13
October 28, 2011 6:52 PM
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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
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
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.”
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RE: Yeah about that...
10/30/2011 2:25:16 AM
It would be interesting to see what would happen if everyone had a direct say in what happened to their taxes. ie., you choose to give your taxes to schools if you believe in that, or roads if you believe in that, etc. I am sure it wouldn't work, but it would certainly be interesting.
RE: Yeah about that...
10/30/2011 12:31:45 PM
I am not certain it wouldn't work, but yes, you need some sort of decisive agent making the ultimate say. When the government first started it wanted the more wealthy landholders to have the say. Later, they wanted to put intelligence tests on voting, but this was run by bosses that were corrupt. Eventually everyone was given a fair voice/vote, instead of being forced into how to vote.
The problem is that our culture has advanced, mostly attributed to improvements in technology. People are more connected these days, but unfortunately, the average intelligence has dropped. Not to mention, there are more and more immigrants (legal and illegal) that infiltrate our society and are given a voice, that doesn't follow suit with what our original founding fathers had set. Mind you, many people escaping Europe and coming to the Americas were trying to escape the tyranny and high taxes that were instilled on them.
I'm not sure how we can improve our intelligence. But I'm afraid that one day the majority vote might have us all wearing gold chains and driving Escalades, but living in impoverishment conditions - an obvious generalization/overstatement of ghetto decisions of
wants vs needs
. So while I do agree, that I would like to have more of a decision to where my tax dollars are spent, I feel that our current system isn't set up to adequately appropriate the decision of the masses. Still, I don't expect my tax dollars to be spent as investments; instead it should be used for operational expenses. And since I have no control in them being spent as investments, if they are, I believe they should not be put towards risky investments - the government should be batting 1000 on those investments.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
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