Print 14 comment(s) - last by GotThumbs.. on Nov 14 at 12:30 PM

Tesla also reported its financial earnings of a wider quarterly loss, but higher-than-expected revenue

How is Tesla Motors dealing with its latest (and wider) financial loss in the third quarter? By ramping up Model S production to 400 units per week.

Tesla CEO Elon Musk announced that the company would increase production of its Model S EV to 400 units per week, or just over 20,000 per year. This is great news for Tesla, considering it recently faced production issues with the vehicle.

Around 13,000 customers have paid a $5,000 minimum fee for a Model S reservation, but only 250 have shipped. This is largely due to issues with increased production. However, Musk announced last month that Model S production had ramped up.

"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 in October. "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."

In December, Tesla will take production to a whole new level. 

"Tesla is really past the point of high risk," said Musk on a recent conference call with analysts. "Several months ago, I said that the coming several months would really be the test for Tesla and the classic phrase of going through the valley of death. I feel as though we are through that valley at this point."

The Model S has been a bright star for Tesla, but unfortunately, that didn't stop it from reporting a wider loss for its Q3 2012 earnings. Tesla said its quarterly loss grew by 70 percent to $110.8 million USD. However, revenue increased 88 percent in the past year to $50 million. This was a nice surprise for analysts, who predicted $48.3 million.

Tesla expects to finish the 2012 fiscal year with $400-$440 million USD in revenue for the entire year.  

The Model S received a nice boost last week when Automobile Magazine named the Model S its Automobile of the YearAuto Mag compared the Model S to Apple because of its luxurious and innovative design, and even said Musk was similar to former Apple CEO Steve Jobs. 

The Model S' features include a 40 kWh, 60 kWh, and 85 kWh battery pack options; a three phase, four pole AC induction motor with copper rotor (puts out 416 HP and hits 60 MPH in 4.3 seconds); 443 lb-ft of torque; drive inverter with variable frequency drive and regenerative braking; single speed fixed gear; aluminum body with boron steel elements; 10 kWh on-board charger; 17-inch capacitive touchscreen for media, vehicle controls, communication and keyless entry and door handles that extend to your reach.

The Model S' superior range and luxurious features come at a high price. The 40 kWh base model starts at $57,400 while the 85 kWh version starts at $105,400. However, the Model S is eligible for the $7,500 federal tax credit in the U.S.

Source: Inside Line

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wait a minute...
By Samus on 11/6/2012 6:12:51 PM , Rating: 2
I wrote Tesla off after Mitt Romney said they, and about half the other companies that received federal grants in the last four years, failed.

With the exception of Solyndra and A123, the other 183 companies that have received federal aid are still innovating, producing, and employing. So half is 1%. Got it.

I'm glad I voted. If there's a particular skill set the President should have, it should begin with math.

RE: wait a minute...
By Jeffk464 on 11/6/2012 9:13:32 PM , Rating: 2
Uhm, campaigning is all about manipulating and misleading the electorate. You are shocked that the campaign statement isn't 100% accurate. Have you double checked everything Obama said? The John and Ken radio show summed it all up - "they're all liers, thieves, and whores."

RE: wait a minute...
By CityZen on 11/7/2012 12:55:44 AM , Rating: 3
Yeah, and Romney also said that he would win the presidency, and look at the results ... :D
In your face, Reclaimer77! You have been predicting an Obama defeat for MONTHS. Now get ready for another term by a Democratic President. You have four years ahead of you to hone your electoral predicting skills :)

RE: wait a minute...
By JediJeb on 11/7/2012 9:23:55 PM , Rating: 2
Yup, we will need the EVs now since gasoline will be going to $6/gallon soon :)

RE: wait a minute...
By GotThumbs on 11/14/2012 12:30:40 PM , Rating: 1
You forgot "Solar Company Satcon Technology Files for Bankruptcy"

In the end...there are way more losers than winners in regards to the total amount of federal dollars "invested" in green energy companies by the current Administration.

While no presidential candidate is perfect, you cannot deny the knowledge and experience Romney brought to the table. He is correct in that the government should not be an investor in these companies. If these companies have sound business plans, then you would see millions of private investor dollars going to them. You just can't trust your money to be spent by someone who is really not going to suffer the consequences of a bad investment.

Obama's win was not a grand slam. Electoral college does not reflect this nations TRUE feelings as much as the actual votes cast by US. I believe the final breakdown was Obama 50% and Romney 49%. It was a close race and now it's in the past. What everyone has to deal with now are dealing with all the hidden taxes of the healthcare bill as well as the upcoming EPA regulations you didn't hear/know about.

Obama voters got what they we will ALL see/feel the results. If you are not a business owner, then you have no clue about the reality of running a business. A business does not exist to serve it's workers. If it fails to maintain expected profits, then it will be restructured or closed and the workers are SOL. You are already starting to hear about how businesses will deal with the new regulations. You may not like it, but your an idiot if you thought it wouldn't happen. If I ran/owned a company and was responsible to my investors, I'd move the company to Canada for the 15% corporate tax rate as opposed to staying in the US and pay the 35+% rate. Only an idiot would not consider this at least once. Its very easy for those who don't offer an uninformed opinion...its another if you've built something from the ground up.

You put your trust in a lawyer, and not a very good one. Michelle Obama would be a better president and did a very good job of campaigning for her husband. How many of you have your wives come to an annual job review with you and help save your job? I think Obama is a nice guy and a great family man. I just don't think He is a very good national leader. He can move/rally a crowd, but He doesn't want to do the real job He was elected to do. He golfs more than any other president in the same time-period and has been on more TV shows than any other. Obama loves to hit the talk show circuit, but does not like doing the job He was elected to do. Obama made his money selling books. He's built nothing. He's selling the idea that focusing on education will get america working...well just snap your finders and everyone in america now has a PHD. Problem is that there are still no jobs for them to do. Economic growth is what creates job opportunities. You can lie to yourself all day long. It does not change the realities of the real business world. Faculty on campuses have lots of theories, but how many of them are successful in their fields in the corporate world. Take everything with a grain of salt and make up you own mind. Don't be a fool with blinders on.

That's the reality of our current president, and everyone is now going to have to deal with it for four years.

btw. 2013 FICA/medicare tax rates are in and are going everyone is going to pay more in taxes...not just someone else.

See below for a taste of reality.

Social Security Wage Base Increases to $113,700 in 2013
The Social Security Administration announced the 2013 Social Security wage base will be $113,700, an increase of $3,600 from the 2012 wage base. As in prior years, there is no limit to the wages subject to the Medicare tax; therefore, all covered wages are still subject to the 1.45 percent tax. Wages paid in excess of $200,000 in 2013 will be subject to an extra 0.9 percent Medicare tax that will only be withheld from employees' wages. Employers won't pay the extra tax.

The FICA tax rate, which is the combined Social Security tax rate of 6.2 percent and the Medicare tax rate of 1.45 percent, will be 7.65 percent for 2013 up to the Social Security wage base. The maximum Social Security tax employees and employers will each pay in 2013 is $7,049.40. This will be an increase of $2,425.20 for employees and $223.20 for employers. Note that the 2012 FICA tax rate is 4.2 percent for employees and 6.2 percent for employers under the Middle Class Tax Relief and Job Creation Act of 2012, and that the rate is scheduled to be 6.2 percent for both employees and employers in 2013

By BZDTemp on 11/6/2012 2:20:39 PM , Rating: 2
There is to much Steve Jobs/Apple way of thinking coming from this company. The lawsuits, the boosting of silly stats for the car like it's low Cw* and all the fine print everywhere.

*Of course it has a low Cw. Much of air resistance in traditional cars comes from having to feed and cool the engine, so it is easy to beat that with an all electric. And as for beating other electric cars that comes from the S being a big car as that makes being aerodynamic much easier.

By Jedi2155 on 11/6/2012 7:32:42 PM , Rating: 2
You mean Cd (Coefficient of Drag). I have no idea where you got the w from....

There is a lot more to Cd than just having to cool the engine mind you.

By AnnoyedGrunt on 11/7/2012 2:56:26 AM , Rating: 2
Being big doesn't help, but being long does. Also, total drag is the Cd * Frontal Area, so being big hurts in terms of drag force as well. Clearly having a very low Cd will be critical for electric vehicles to have a reasoble HWY range without going completely nuts with battery capacity (maybe 85 kWhr is already there). I think it is a legitimate bragging right, although one could argue that it damn well better be that low in order to make the range reasonable at all.

Also, I belive the only lawsuit was with Fisker, and I don't think it was necessarily unwarranted. My understanding was that Tesla initially contracted with Fisker to build the chassis; eventually that deal fell through, and then Fisker all of a sudden has the Karma which has a very similar wheelbase and overall size. I think Tesla felt as though Fisker stole their idea. Tesla lost that case anyway, but I don't think it was any type of patent trolling or anything. Seemed like a reasonable lawsuit and a reasonable outcome.

I've seen some cool youtube videos of Musk doing a tour of SpaceX and others of him on Letterman talking about the ModelS, and he seems like a passionate, intelligent person, who understands that in order to be successful you first need to build a great product. You don't start a car or rocket company on marketing skills alone. I'm rooting for Tesla, if for no other reason that to shake up the auto industry in a big and intersting way.

Poor Guy...
By MechanicalTechie on 11/6/2012 7:05:49 PM , Rating: 1
Elon Musk must be thrilled to be compared to Steven (loves to suck) Knobs.. a fascist dictator of the IT world.

Runningt in the red
By Dr of crap on 11/6/12, Rating: -1
RE: Runningt in the red
By Jeffk464 on 11/6/2012 9:21:11 PM , Rating: 2
We will just have to wait and see where this goes. Unlike the leaf and electric focus people are lining up at the door to by testlas. Who would of thought instead of trying to make a electric car for everyone, but instead making a status symbol would move more product.

RE: Runningt in the red
By Jeffk464 on 11/6/2012 9:24:34 PM , Rating: 2
I personally would love to be seen driving one of these around town. I'm sure you will get much more positive attention then driving the equivalent $$$ Mercedes around.

RE: Runningt in the red
By AnnoyedGrunt on 11/7/2012 2:45:50 AM , Rating: 2
I think it is less about a status symbol and more about making a world class car. From all accounts I've read, the Tesla S is actually a great car. Yes, it's expensive, and the top speed isn't that high, but in terms of handling and acceleration it compares well with cars like the M5 and Panamera GTS. Certainly some good (and expensive) company.

Also, from a business perspective, it makes much more sense for a startup car company to make a high priced vehicle, because the component costs are not much more than a low priced vehicle but the profits are much higher. Also, because the demand will be lower, it will be easier to ramp up production.

I was skeptical of the Model S at first, but after reading what actual car magazines have to say about it, I'm very impressed. If Tesla can survive through the first year of produciton, and get their Model X SUV out, I think they will have a bright future. If they are able to survive, I think they have the potential to significantly change the way most people view electric cars.

RE: Runningt in the red
By maugrimtr on 11/9/2012 5:21:38 AM , Rating: 1
If you had an ounce of business skill or access to basic math, you'd know that all new companies are expected to make significant losses because they need to expend cash on R&D, prototyping, capital expenditures (manufacturing, buildings, equipment), salaries, tax. Those losses should be offset in future years by actually selling product to raise revenue.

The fact that Tesla is loss making now is normal. Unless you know of some magical fairy-dust powered process where new companies can make massive profits with zero startup capital and expenses.

Grow a brain...

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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