Print 16 comment(s) - last by EricMartello.. on Jul 29 at 6:59 PM

Tesla Model S

Tesla Model X
Tesla posted a revenue decrease of $26.7 million from $58.9 million a year earlier

Tesla may have a winner on its hands with the Model S' recent release, but the electric vehicle (EV) company still reported financial losses for Q2 2012.

For the second quarter, Tesla posted a revenue decrease of $26.7 million from $58.9 million a year earlier. It also reported losses for the quarter of $105.6 million (89 cents per share) from $58.9 million (53 cents per share) last year.

Tesla is in transition mode at the moment. It's currently going from only selling a few thousand of its Roadster battery electric vehicle sports car, which goes for about $109,000, to now selling its first full production vehicle, the Model S.

The Model S was initially announced three years ago, and finally shipped June 22. The Model S comes in three different versions, with 40 kWh, 60 kWh or 85 kWh battery packs. The lower-end 40 kWh base model will sell for $57,400 while the higher-end model will sell for $105,400. The Model S is eligible for the $7,500 federal electric tax credit as well.

It was recently reported that the 85 kWh model could earn a 265-mile driving range window sticker rating from the EPA, which would put the Model S far ahead of the electric competition.

The Model S has proved to be quite popular with Tesla having 10,000 reservations for the vehicle before it shipped. Having the Model S onboard will definitely help Tesla as it moves toward becoming profitable. Up until now, it has reported losses of over $500 million since 2009.

"We are maintaining our revenue guidance of $560 million and $600 million and our Model S volume projection of 5,000 units for 2012," said Tesla in a letter to shareholders. "We expect to deliver approximately 500 vehicles to customers in Q3 with the balance delivered in Q4."

The next step on Tesla's list is to build its Model X crossover late next year.

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RE: well
By lifewatcher on 7/27/2012 11:00:09 AM , Rating: 0
With all my doe respect, I have to say that I've seen this comment one too many times. Yes, the car is expensive, therefore only the well-off can afford it. However this doesn't mean that it should be treated differently. The feds are trying to create a helping trend for an alternative transportation technology. Treating all, rich or poor, equally is something this country does need, in my opinion. The more precedents are created to underline the differences between top and bottom, the further apart they will drift.
$7500 roughly equals the average sales tax for this car, considering all trim versions. In the end, not collecting tax on vehicles, that help break the oil addiction, doesn't sound outrageous to me.

RE: well
By EricMartello on 7/27/2012 7:50:09 PM , Rating: 2
Sounds like you're onto something until you realize that sales taxes are imposed by and collected by states and not on a federal level. The $7,500 credit is coming from federal tax dollars, which essentially means taxpayers are subsidizing a failing industry just to appease the eco-tards.

Tesla has not been profitable since its inception. Let it die, and get off the change for the sake of change bandwagon. Just because something is different doesn't mean it is better. A lot of people don't seem to get that.

RE: well
By sowhy on 7/29/2012 12:30:16 PM , Rating: 2
Eric....let it die?!? That seems very short sighted. I am VERY grateful most entrepreneurs do not have your vision....or lack thereof.

This is a huge undertaking. And if Tesla succeeds, we will all benefit. Even if he "fails", there is still a lot of technology discovered and improved.

I would MUCH rather see my tax dollars go towards technology and new business instead of more welfare for many people who do not deserve it.

RE: well
By EricMartello on 7/29/2012 6:59:48 PM , Rating: 2
I am an entrepreneur myself and I don't expect tax payers to subsidize my ventures. The fundamental point of starting a business and making it successful is shouldering that initial risk and accepting that you may lose your shirt in the end.

If Tesla was left to their own devices and stopped getting handout after handout they'd have been out of business long ago.

Tesla should stop pretending to be an auto manufacturer and just focus on licensing their powertrain to interested parties. Securing some tech licensing deals would give them some real cashflow without additional overhead rather than fishing for subsidies - aka corporate welfare.

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