Tesla Motors Says Model S '12 Production Run Sold Out, Will be Profitable in '13
October 28, 2011 6:52 PM
comment(s) - last by
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.”
This article is over a month old, voting and posting comments is disabled
RE: Tesla will succeed
10/30/2011 10:37:54 PM
You do realize the EPA numbers are based on charge from the wall, not what goes into the battery? And they include a 12 hour trickle charge?
For example, you estimate the Leaf somehow has a
charging efficiecy at 220V? I don't think so. Somehow I think that all chargers are between 80-90% efficient. At best, if the Leaf takes 24.8 kWh from the wall... then only 22.8 kWh go into the battery and at worst 19.84. Since the Leaf's entire battery is 24 kWh, and even Nissan is not stupid enough to infringe below 5% and above 95%... then I doubt there is much more than 22 kWh -usable- and much more likely its an even 20.
Since the Leaf and Model S are BEVs, they do not disclose what parts of the battery are usable versus full capacity.
Furthermore, to imply the Volt's battery is only 10.4 kWh is indeed misleading. It has the ability use far more than this, just the car will turn on the generator at this point.
Like I was saying, your mixing and matching numbers... which doesn't make any sense. Use the Full Capacity, or the Usable Capacity, but don't use the artifical cutouts in place to ensure ranged operation like the Volt and Prius both have.
RE: Tesla will succeed
10/31/2011 5:45:05 AM
I'm betting the charger is closer to 90% efficient as that is typically the efficiency of a switch mode power supply like in our PC's. I highly doubt it is much higher than 95%.
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
Quick Note: Tesla Motors Lost Money on Every Roadster Sold, Plans 3-Series Rival
October 27, 2011, 9:38 AM
Romney Blasts EV Loans, Auto Bailout; Gets Big Money From Bailout Banks
October 26, 2011, 12:08 PM
Unlike U.S., China's Smaller Electric Vehicle Plan Puts Local Firms First
May 9, 2011, 1:44 PM
Tesla's Model S Pricing Set at $50k, $60k, and $70k after Tax Credit
March 8, 2011, 2:54 PM
Tesla CEO Calls Nissan's Leaf Battery Tech "Primitive", Boasts About Model S
August 9, 2010, 10:30 AM
Man Arrested for Using 5 Cents Worth of Electricity to Charge Nissan Leaf at Middle School
December 4, 2013, 8:00 PM
Volvo to Test Self-Driving Cars on Public Roads in 2017
December 3, 2013, 8:17 PM
Survey: EV Buyers Scoff at Price Tags Over $25,000
December 2, 2013, 12:26 PM
GM Compares Cadillac ELR's Pricing to BMW 6-Series Grand Coupe's
November 29, 2013, 3:10 PM
Quick Note: Nissan's Autonomous Leaf EV Hits Japanese Streets
November 27, 2013, 10:36 AM
Ford is Ready for Aggressive Rollout of Fuel Saving Start-Stop Technology
November 25, 2013, 9:40 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Dow Chemical to NYC City Council: You Don't Even Know What Styrofoam is!
December 2, 2013, 8:30 PM
Fed Up With Cheating OEMs, Microsoft Trolls Chromebooks in New Ad
November 27, 2013, 4:09 PM
OCZ Goes Bankrupt, SSD Assets are Targeted by Toshiba
December 1, 2013, 9:58 PM
Latest Blog Posts
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
U.S. Army Developing Cyber, Electronic War Arsenal
Oct 31, 2013, 4:49 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information