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Elon Musk with the Model S  (Source: s1.aecdn.com)
In a blog post, Musk set out to clarify that Tesla is not in a bad position despite the automaker's reduced 2012 revenue forecast

Tesla Motors had a bit of discouraging news last month regarding 2012 revenue reductions as a result of Model S delays, but CEO Elon Musk fired back with some better news: Tesla will become cash flow positive at the end of next month.

Last month, Tesla's regulatory filing indicated that the automaker had cut its 2012 revenue forecasts from $560 million-$600 million down to $$400 million-$440 million. It was noted that Model S production delays of about four to five weeks had caused the revenue reduction, as the Model S was expected to provide 90 percent of Tesla's revenue for the full-year 2012.

However, in a recent blog post, Musk set out to clarify that Tesla is not in a bad position. In fact, he said that his auto company will not only become cash flow positive at the end of next month, but Model S production has also been increased.

"Our production rate in the last week of September was roughly 100 vehicles, four times greater than our production in the first week of September as we overcame supply constraints," said Musk. "I am pleased to report that we completed production of 359 vehicles last quarter (delivering over 250 of those to customers) and have already made our 500th vehicle body.

"While we are indeed a few weeks later than we would like, this is not perhaps a terrible outcome for a product as advanced as the Model S, particularly given that Tesla is doing manufacturing of full vehicles for the first time with a new team and suppliers."

Musk added that SEC rules restricted the automaker from discussing this with the press sooner (because it doesn't want companies to promote stock), so he couldn't clarify the situation sooner when journalists began reporting the regulatory filing as a smudge on Tesla's record.

In addition, Tesla will be repaying its $465 million federal loan early ahead of the March 2013 due date.

Source: Inside Line



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By CaedenV on 10/28/2012 11:05:30 PM , Rating: 2
1) manufacturers stopped putting out cars that don't have basic things like AC back in the '90s
2) While gas may be $5/gal in Cali, it is $3/gal in the midwest and trending down (actually was $2.90 the other day, but bumped up again). Out in Cali you will have lower gas prices once your custom fuel mix supply is fixed. There is no reason for gas prices to jump up again any time soon.
3) I think you meant $0.38/mi, which is high even for Cali. Out in the midwest it is closer to ~23 cents per mi last time I did the math.

Aside from all of that I think Tesla is doing a killer job! While other companies are coming out with crap electric cars in the $40,000+ price range to compete with $15-20,000 commuter cars (no matter how much you drive, that never breaks even), Tesla is adding all the features of a premium car to make the thing actually worth the money you spend on it. If they had the production capacity I am sure they would sell a lot more than they are now, but they will get there in time.

My hope is that we start seeing some $20,000 (post rebate) cars in the next few years. I am no global warming believer, but electricity is something we are good at making, where oil/gas is something we kinda suck at. Plus with solar panels dropping in price like a rock you can feed the grid all day for peak $$, and then take the power back at night to charge the car for a minimum price for essentially free gas (just a big up front investment for panels and installation... but it should pay itself off in the long run). The only issue then is HOW to charge the car. Apartment dwellers don't exactly have the ability to throw an extension chord out the window to their car, and homes like mine do not have accessible garages (especially during winter because the garage is below the house, and it is a bit too steep to drive on when it snows). But once they get easy power delivery to the car itself, and the initial investment of the car competitive with Gas models, then we will see sales take off like crazy. It isn't here yet, but I bet we will see a proper affordable electric car released within the next 5-7 years.


By ebakke on 10/29/2012 5:16:32 PM , Rating: 2
quote:
1) manufacturers stopped putting out cars that don't have basic things like AC back in the '90s

Come armed with facts, or GTFO. http://screencast.com/t/xjOCT9htu


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