Tesla to Increase Model S Production to 400/Week in December
November 6, 2012 10:30 AM
comment(s) - last by
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
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
named the Model S its
Automobile of the Year
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.
This article is over a month old, voting and posting comments is disabled
RE: Runningt in the red
11/7/2012 2:45:50 AM
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.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Tesla Model S: Automobile Mag's 2013 Automobile of the Year
November 2, 2012, 2:14 PM
Elon Musk: Tesla to be Cash Flow Positive Next Month, Model S Production Increased
October 5, 2012, 8:11 AM
Tesla Motors Plans to Deploy "Supercharger" Charging Network for Model S
September 25, 2012, 8:14 AM
BMW Concept X5 eDrive Uses Plug-In Hybrid Tech
April 14, 2014, 9:03 AM
GM Invests $449 Million USD in Future Electric Vehicles, Batteries
April 9, 2014, 2:27 PM
Bentley Shows Off Plug-in Hybrid Concept Destined for '17 SUV Project
April 9, 2014, 8:53 AM
Microsoft Brings Live Tiles to Infotainment Systems with "Windows in the Car" Concept
April 7, 2014, 2:38 PM
Tesla Wants Its Raw Materials for Gigafactory to Come From North America
April 2, 2014, 9:19 AM
NHTSA Proposes Legislation Requiring Backup Cameras on All Light Vehicles
March 31, 2014, 5:00 PM
Most Popular Articles
Cities to Carpoolers: Sharing Your Car is Illegal, We Will Seize Your Cars
April 4, 2014, 9:17 PM
Taiwan's AOU Claims to Have World's Highest-Res. OLED Smartphone Display
April 11, 2014, 1:44 PM
Navy Prepares for Historic First Live Test of a Rail Gun at Sea in 2016
April 9, 2014, 2:06 PM
It's Very Likely Neanderthals and Humans Had Sex, Produced Offspring
April 10, 2014, 8:40 PM
Cops at Historically Troubled LAPD are Sabotaging Digital Recording Devices
April 9, 2014, 11:10 PM
Latest Blog Posts
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information