Tesla Reports Second Quarter Losses, Has High Hopes with Model S Sales
July 27, 2012 2:25 AM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
7/29/2012 6:59:48 PM
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.
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
Tesla to Begin Shipping Model S June 22
May 23, 2012, 11:16 AM
Tesla Model S Could Land 265-Mile Range Rating from the EPA
May 15, 2012, 6:27 PM
Tesla Motors Unveils All-Electric "Model X' Crossover
February 9, 2012, 11:14 PM
Tesla Motors Says Model S '12 Production Run Sold Out, Will be Profitable in '13
October 28, 2011, 6:52 PM
Tesla to Issue More Stock, Pay Off Energy Loans with Proceeds
May 16, 2013, 1:58 PM
NC Becomes Latest State to Threaten Tesla's Direct Sales to Customers
May 14, 2013, 11:33 AM
Consumer Study Shows Buyers Are Embracing Fuel Sipping Vehicles
May 8, 2013, 11:09 AM
Tesla Interested in Google's Self-Driving Technology
May 7, 2013, 4:48 PM
Tesla Could Receive $250 Million in California Environmental Credits This Year
May 7, 2013, 10:30 AM
BMW Tips i3 Electric Car Price at Roughly $40,000
May 7, 2013, 9:16 AM
Most Popular Articles
Report: Microsoft Eyes Return to "Dying" Windows 7 Path After Windows 8 Flop
May 13, 2013, 9:50 AM
Windows 8.1 Will Be Free; Microsoft Holds Onto Struggling ARM Variant
May 14, 2013, 2:57 PM
Bill Gates Gets Teary-Eyed While Discussing Steve Jobs, Shows Off Life-Saving Tech on 60 Minutes
May 13, 2013, 12:30 PM
Google Announces "Pure" Galaxy Nexus S4 for $649, Android Updates
May 15, 2013, 1:42 PM
Google's Eric Schmidt: "Don't Be Evil" was Stupid
May 14, 2013, 11:00 AM
Latest Blog Posts
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
Elon Musk Willing to Spend More Money on Widening of 405 Freeway
Apr 26, 2013, 7:28 PM
New $100 Bill Due in October
Apr 24, 2013, 11:52 PM
Volkswagen Shows off iBeetle in Shanghai
Apr 22, 2013, 9:29 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information