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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Runningt in the red
By Dr of crap on 11/6/2012 2:18:18 PM , Rating: -1
"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 ."

A 70% increase in losses, yet it still is in business. They haven't really made any money yet. NICE investors!

AND really - They predicted $48.3 million in revenue but got $50 - doing the math that's only $1,700,000. That's a surprise! Yes it's a 88% increase - BUT they had figured on $48.3 so again a surprise? If they had figured on $10 mill and got $50 then that's a surprise.

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...

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki