Tesla’s Annual Losses Have Tripled – rpmGo.com

2012 Tesla Model S

We all can image that building a car company isn’t a piece of cake, especially making one that will produce only electric vehicles which are not very popular at the moment. Tesla Motors nearly tripled its losses last year as they invested a lot of money to engineer the upcoming Model S which will be the second model launched, after the Roadster.

2012 Tesla Model S

With its headquarters in Palo Alto, California, Tesla Motors posted a loss of $154.33 million last year in comparison to “only” $55.74 million in 2009. Last year the company generated $116.74 in revenue which was a little bit better in comparison to 2009’s $114.94 million. For the last year’s fourth quarter, they’ve reported a loss of $51.36 million, or 54c / share, on revenue of $36.29 million.

2012 Tesla Model S

Tesla is generating revenues mostly by selling the aforementioned Roadster model, a two-seat sports car that has a retail price of over $100,000. They’ve started selling the car back in 2008 and managed to deliver about 1,500 units since then. They also earn some money from providing engineering services as well as selling battery packs plus powertrains to Daimler and Toyota.

2012 Tesla Model S

As previously mentioned, Tesla will be rolling out the Model S sometime in mid-2012. It will be a gorgeous four-door sedan with which the company hopes to improve the financial situation. However, the car will not be affordable as it will have a starting price of around $57,400. The good news is that customers will pay $7,500 less, thanks to the federal income tax credit.

2012 Tesla Model S

Last year, Tesla Motors struggled to get the necessary funding for developing the Model S. They organized an initial public offering last June and they managed to raise approximately $226 million in what was the first IPO (initial public offering) for an American car manufacturer since 1956. They also got $465 million in loans from the United States Energy Department.

2012 Tesla Model S

For starting the production of the Model S, Tesla bought in June 2010 a defunct assembly plant that was jointly owned by GM and Toyota. Located in Fremont, California, Toyota invested $50 million, before Tesla hosted the IPO, and contracted with the firm to design a powertrain system which will be used for a future RAV4 EV model. According to Tesla Motors, they expect that this development deal will generate about $69 million in revenue. In addition, back in November, Panasonic bought $30 million of Tesla’s private shares.

2012 Tesla Model S

It goes without saying that if the Model S will be a failure; Tesla Motors will go down the very next second. They have decided that rather than outsourcing some of the production, they will assembly every single car, at least for now. According to the information revealed by the company, they have already 3,700 reservations for the upcoming Model S.

Source: DailyFinance

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