Tesla to be Profitable in Q1, Investors Send Shares Down
February 21, 2013 1:24 PM
comment(s) - last by
Investors still worry over Model S demand/production and ways to keep costs down after the huge fourth quarter loss
Tesla CEO Elon Musk told analysts and reporters that his company expects to be profitable in the first quarter, but that didn't stop investors from sending shares down due to previous Tesla woes.
Not only did Musk say Tesla would turn a profit next quarter, but also mentioned that the automaker would meet
demand for 20,000 Model S sedans
for 2013. In addition, he showed that revenue grew 500 percent to $306 million and that he had plans to get Tesla's gross margins up to about 25 percent.
You'd think all of this would be music to investors' ears, but shares took a 6 percent tumble in after-hours trading. This was mainly due to the fact that Tesla had a huge fourth quarter loss of $89.9 million (compared to $81.5 million a year earlier) as well as concerns about Model S demand and a lack of understanding how Tesla will keep costs down.
Musk attempted to address investor concerns, saying that
Model S reservations
increased by 6,000 in the fourth quarter, which is a significant increase from 2,900 in the previous quarter. Also, Musk said Tesla will make 500 Model S' a week and hopes to ship 4,500 cars from the Silicon Valley factory this quarter.
To keep costs down, Tesla plans to get rid of part-time workers and keep full-time workers at 50 hours per week (and adjust only to meet shipping commitments). Also, with production increasing, Musk said suppliers are likely to give more competitive prices.
"We are not demand constrained," Musk said. "We are intentionally production constrained. We're on track to sell every car we make. We could say goodbye to every store and every salesperson (today) and still meet that target."
The Model S was named
2013 Automobile of the Year
, but recently had some issues when a journalist from
The New York Times
took a test drive this winter and reported
a horrific venture
. More specifically, he said that the Model S doesn't have the range Tesla said it does, and ended up on a flatbed truck at the end of the trip. Musk and the NYT journalist (John Broder)
ended up feuding
over the matter.
The Detroit News
This article is over a month old, voting and posting comments is disabled
As usual.....typical "Journalist" omission of greater detail
2/21/2013 1:55:33 PM
Tiffany fails to point out in this article, that Musk had factual/graphical data on the NYT's journey and that contradicted the "Reporters" story and that He failed to take take reasonable precautions. There were also inaccuracies in the "Reporters" initial review regarding speeds and charge times.
You don't stop for gas, put 2 gallons in the tank and then expect to drive 75 miles without the risk of running out of gas. One cannot be 100% certain of what is up ahead, such a s traffic jam where you sit in traffic for an hour, etc.
This car is still new technology and anyone not savvy enough to understand (e.g. a NYT Reporter) that it is still developing technology and one should not dive into the black water head first, snap your neck and then blame the black water for your stupidity.
Do your self a favor and read the story from multiple sources, so you can form your own educated opinion.
Best wishes and understand everyone has a bias to some degree.
RE: As usual.....typical "Journalist" omission of greater detail
2/21/2013 2:25:19 PM
Huh? Tiffany did THREE articles on the road trip, including the data points cited by Musk, the original author's reply, AND the reply by a NYT Editor.
All Tiffany did in this article was just give a brief summary of the crapstorm that took place last week.
"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference
Checkmate: Tesla's Elon Musk Provides Driving Logs from NYT's "Peculiar" Model S Trip
February 14, 2013, 12:41 PM
NYT Reports Poor Tesla Model S Range in East Coast Trip; Elon Musk Fights Back with Driving Log
February 12, 2013, 1:00 PM
Tesla Model S: Automobile Mag's 2013 Automobile of the Year
November 2, 2012, 2:14 PM
Tesla to Begin Shipping Model S June 22
May 23, 2012, 11:16 AM
Tesla Motors Says Model S '12 Production Run Sold Out, Will be Profitable in '13
October 28, 2011, 6:52 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
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Quick Note: GM Teases Next Generation Chevrolet Volt
November 20, 2014, 3:26 PM
Most Popular Articles
HTC One M9 Launches Tomorrow Overseas
March 20, 2015, 2:33 PM
Windows 10 Build 10041 Rolls Out: What's New in Pictures Pt. 1
March 19, 2015, 2:45 PM
FAA Grants Amazon Prime Air an "Experimental Airworthiness Certificate"
March 19, 2015, 9:14 PM
Samsung, Dell, Pegatron to Preinstall Microsoft Office 365 on Android Devices
March 23, 2015, 4:02 PM
Acer Iconia Tab 10 is a Bargain at $200 w/ WXGA, $250 w/ WUXGA
March 20, 2015, 2:11 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information