Tesla CEO Tweets That EV Maker is Finally "Making Bank"
December 5, 2012 2:27 PM
comment(s) - last by
Once against fast-tracked startup is making a profit
Tesla Motors, Inc. (
) made waves in June 2010
when it went public
, taking the brainchild of PayPal co-founder Elon Musk to a new level of exposure. But in the wake of the IPO, Tesla was in for a bumpy ride as it
wound down sales
of its pricey Roadster electric sports car, and attempted to transition into the mid-range luxury market with its upcoming Model S design.
Share prices fell
and the company went from
blowing money fast
But much like Elon Musk's other startup, SpaceX, Tesla in the end delivered,
launching the Model S
around the time frame
it had hoped to, despite
some minor delays
Amidst a market where EV makers are typically full of
, delays, and cancellations, Tesla --
like its commercial spacecraft counterpart
-- is a rarity. Now CEO and co-founder Elon Musk brings more good news.
On Monday in a message to his 112,000 Twitter followers, the CEO
, "Am happy to report that Tesla was narrowly
cash flow positive
last week. Continued improvement expected through year end."
The Tesla Model S has returned the EV automaker to positive cashflow.
Currently, Tesla is racing to fulfill demand for the Model S, whose price will be bumped $2,500 to $59,900 USD on Jan. 1. The vehicles, however, are eligible for a $7,500 USD tax rebate offered by the U.S. government that knocks a bit off the price.
Tesla, which produces vehicles at the old Toyota Motor Comp. (
in Fremont, Calif., plans to sell 20,000 Model S sedans in 2013. The Model S gets 160 to 300 miles on a charge, depending on which size battery pack is purchased (the base price is for the 160 mile range variant).
It will then follow up in 2014 with the first production run of
the Model X
, a luxury electric sports vehicle.
Tesla Model X [Source: Automobile Magazine]
It's clear that Tesla attacked the part of the market where electric vehicles were most likely to succeed -- the luxury segment, an area where the cost of the battery pack can be defrayed by cutting into the typical markup luxury brands garner. However, while Tesla makes it look easy, designing and selling luxury EVs is no easy task.
While Tesla's Model S earned the distinction of being
magazine's 2013 "Car of the Year", rival Fisker saw its
much delayed "Karma"
plug-in hybrid electric sports car
get widely panned
shares have surged
21 percent in 2012, on account of its unlikely success.
This article is over a month old, voting and posting comments is disabled
RE: Cue the whiners in 3, 2, 1...
12/7/2012 8:46:57 AM
That doesn't make a great deal of sense.
Doesn't the US giving a tax break to the domestic energy industry, or subsidies for farming, "decide winners and losers in industry"?
Both are essentially forms of protectionism after all, without which the competitiveness of each respective industry would likely fall in relation to other local or international industries.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Chevrolet Blames Low November Volt Sales on Lack of Inventory
December 4, 2012, 1:13 PM
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
Fisker Raises $100M in Funding, Consumer Reports Flunks Karma Hybrid
October 1, 2012, 9:06 AM
Quick Note: Tesla Completes First 50 Model S EVs
August 6, 2012, 10:38 AM
Ford, Toyota, and Universal Pictures Celebrate "Back to the Future Day' in Style
October 21, 2015, 4:19 PM
Consumer Reports Flexes Muscle, Hits Slumping Tesla Motors Stock
October 20, 2015, 4:13 PM
Debunked: Beneath the Lies, Nigerian "Pee Generator" Is Still Pissing Into the Wind
October 19, 2015, 7:53 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information