Tag archives for Sales & Earnings

Tesla Model X Delayed Until "Late 2014" – Rumor Central

Tesla Model X Delayed Until “Late 2014″

The Tesla Model X electric crossover won’t start production until late 2014, a major delay as the car was slated to go into production this year. Tesla had initially promised the Model X would debut in late 2013 with “volume” production beginning in earnest by 2014, but now it appears the Tesla factory won’t even start building the crossover until the end of next year.

The Tesla Model X is a three-row crossover with upward-opening “Falcon Wing” doors that is based on the company’s Model S all-electric sedan. It was originally slated to go on sale in limited numbers by the end of 2013, with production ramping up significantly by 2014. In fact, the automaker’s website still indicates that, “Deliveries begin 2014.”

Tesla appears to have quietly delayed the introduction of the Model X by about a year. The company’s latest SEC Filing, which also revealed Tesla will repay government loans early, confirmed the new production date. “We currently plan to start production of Model X in late 2014,” the filing reads. “We currently intend to target an annual production rate of approximately 10,000-15,000 cars per year.”

That means the car probably wouldn’t reach more than a handful of customers until early 2015. The company previously reported it would have total production capacity of 20,000 units in 2013.

Tesla warned in its filing that development of the Model X hasn’t been completed, signaling that production couldn’t start for some time. “The Model X design is not yet finalized and we may be unable to use the adaptable Model S platform to the extent we currently intend,” the filing reads.”We may experience… delays, cost overruns and adverse publicity… We are in the initial design and development stages of Model X. Furthermore, we have not yet evaluated, qualified or selected all of our suppliers for the planned production of Model X.”

A Tesla representative told us, “Tesla has been intensely focused on Model S, its production and product enhancements and believe there is increased volume potential for Model S.  As a result, we are pushing back the development and timing of Model X to 2014. ”

Source: Tesla



By Jake Holmes

Tesla Claims Plug-In Sales Lead for First Quarter 2013 – Report

Tesla Claims Plug-In Sales Lead for First Quarter 2013 – Report

The Tesla Model S has never been marketed or positioned as a mass-market volume play along the lines of the Nissan Leaf or Chevrolet Volt, but despite the car’s not-insignificant purchase price, the Palo Alto, California-based company is expected to report first-quarter sales of the Model S surpassing the Leaf and Volt, making the Model S the best-selling plug-in vehicle for the quarter, according to Bloomberg.

Tesla is expected to report 4750 deliveries of the Model S when it releases first-quarter sales and financial results. The Volt sold 4421 units and the leaf sold 3695 units in the same period. This accomplishment follows the company’s earlier announcement of a new fleet of loaner vehicles and a “no-fault” battery warranty, as well as the expectation it will post its first-ever quarterly profit.

General Motors spokesperson Jim Cain lauded Tesla’s apparent victory, saying, “Any success for a company in this space is helpful for all other makers of plug-in vehicles.”

Although the Model S has taken the lead for this quarter, both the Volt and the Leaf have been on-sale longer than the Model S, and have more affordable starting prices than the premium Model S, which can crest six figures in top-of-the-line trim. Despite Tesla’s apparent successes, many auto industry analysts remain skeptical of the company’s long-term viability.

Source: Bloomberg

By Edward A. Sanchez

New York Supreme Court Rules in Favor of Tesla Factory-Direct Stores – Rumor Central

New York Supreme Court Rules in Favor of Tesla Factory-Direct Stores

Lately, it seems Tesla CEO Elon Musk has been on tour around the country speaking in favor of his factory-direct sales model, against influential state dealer associations that see factory-direct car sales as a threat to the traditional dealership business model. Musk was most recently in Texas at a legislative hearing defending the factory-direct model. A New York Supreme Court justice ruled on Thursday that franchised dealers could not prove sufficient injury to prevent Tesla from operating factory-owned stores, Automotive News reports.

Naturally, the Greater New York Automobile Dealers Association voiced its displeasure at the ruling, claiming Tesla’s factory-owned model is “clearly prohibited” by state franchise dealer law. The dealer association has not yet said whether it will appeal the case, or seek recourse by other means. Tesla currently operates three stores and two service centers in the state.

The fear of state dealership associations across the country is that an exemption granted to Tesla would open the door to existing automakers to circumvent the independent franchise model and start opening factory-owned stores in competition with independently-owned dealerships. Franchise laws vary from state-to-state, from outright prohibition, to non-compete language preventing factory-owned stores from opening within a specified distance from an independent franchise.

Chrysler was forced to sell its Motor Village concept store in Los Angeles, after area dealers petitioned the DMV, alleging violations of state franchise law. Tesla’s case is unique in that it is creating a network of new stores for an all-new brand, not opening new outlets for an existing brand.

Source: Automotive News (subscription required)




By Edward A. Sanchez

Tesla to Issue New Stock and Pay Off Government Loan – Rumor Central

Tesla to Issue New Stock and Pay Off Government Loan

Tesla plans to offer 2,703,027 shares of common stock and $450 million in convertible senior notes due in 2018 to raise money toward its outstanding loan from the Department of Energy.

Tesla CEO and co-founder Elon Musk will purchase $100 million worth of the shares himself, with $45 million purchased from the common stock offering and $55 million bought directly from Tesla in a private sale. The underwriters will have a 30-day option to purchase up to 405,454 additional shares and $67.5 million worth of convertible notes, which can be converted into cash or shares of Tesla stock when they mature.

Tesla stock ended trading on Wednesday at $84.84 a share, up significantly from last week’s price in the mid- to high $50 range. The surge in price is attributable to Tesla posting its first quarterly profit, with the company generating $11.2 million net income in the first quarter of 2013.

Though Tesla’s revised financing option may have lead to higher consideration among luxury buyers, the brand is still only selling variations of one vehicle. Whether Tesla can maintain its momentum remains to be seen.

Source: Tesla




By Alex Nishimoto

Tesla Reports 2012 Losses, Expects Positive Q1 2013

Tesla Reports 2012 Losses, Expects Positive Q1 2013

Starting a new car company is hard. Tesla has been finding that out, and it has reported larger losses in 2012 than it did in 2013. It’s not all bad, though – the company is now building 400 Model S cars per day and is on track to produce 20,000 of them this year.

Indeed, the automaker says much of its red ink stems directly from ramping up production of the Model S, the company’s sole product at this point in time. The company says it is now churning out 400 units a day, and is allegedly on track to build roughly 20,000 copies by the end of 2013.

2013 Tesla Model S rear three quarter 1 300x187 imageThe negative numbers don’t seem to have placed a damper on Tesla’s outlook.  CEO Elon Musk stated during the company’s earnings call on Wednesday, “We really have a very high confidence that we will have a profitable first quarter, and this is the very first quarter that we have been at our target production rate.” It’s because Tesla has only just got up and running with its 400-unit-per-day rate that we don’t have full sales numbers yet; the company is still working through a backlog of orders on the Model S – unsurprising, given how impressed we were when we named the Model S our Car of the Year. That said, it still reported sales of 2400 cars in the fourth quarter of 2012 and has grown its international store total to 32. A total of 2650 Model S cars were sold in 2012.

Tesla is aiming to increase its global retail footprint to 52 stores by the end of this year, and also hopes to roll out a leasing program for the Model S and to continue expanding its Supercharger network. Musk stated that the expansion plans will only help to propel the company’s growth, as it currently has “over 15,000″ reservations for the Model S and expect to post a quarterly profit for Q1 of 2013. Ambitious goals, and we’ll have to wait and see how they shake out over the course of 2013.

Sources: Telsa, Automotive News (Subscription required)

By Donny Nordlicht

Tesla Plans on Early Repayment of DOE loans, Re-Files Annual Report – Rumor Central

Tesla Plans on Early Repayment of DOE loans, Re-Files Annual Report

In stark contrast to the woes faced by other upstart plugin auto brands Coda and Fisker, Tesla seems to be resolute and resilient in its business strategy. The company is so confident in its success, that it released a statement on the company blog that it intends to re-pay its Advanced Technology Vehicle Manufacturing loans five years ahead of schedule. This would put the final payment of the loan in 2017, as opposed to the original deadline of 2022.

In the heated political climate surrounding government-subsidized green energy initiatives, the company was quick to point out the that ATVM loans were initiated and approved under the Bush administration, and were completely separate from the federal bailout of General Motors and Chrysler, as well as being the smallest of the ATVM loans granted, the others being Ford at $5.9 billion, Nissan at $1.4 billion, and Fisker at $529 million. Tesla’s loan was for $465 million.

In the blog post, Tesla’s VP of Business Development, Diarmuid O’Connell, said the company expected to show a modest profit in the first quarter of 2013, excluding non-cash option and warrant-related expenses.

The company’s upcoming models were briefly mentioned in the post, including the Model X crossover, and the third-generation model, described as a high-volume, low-price model, sometimes referred to as the “Blue Star.” During its development, the Model S was coined the “White Star” by many automotive media outlets.

However, being a publicly-traded company, Tesla is under the scrutiny of investors and regulators, and announced that its annual report would be delayed due to errors in its filing, according to Bloomberg. Some unpaid capital expenditures from 2011 and 2012 will be re-classified as operating activities in the revised report.

Source: Bloomberg, Tesla




By Edward A. Sanchez

Tesla Loses $396.2 Million in 2012, Posts Net Loss In Q4 – Rumor Central

Tesla Loses $396.2 Million in 2012, Posts Net Loss In Q4

The 2012 loss grew some $141.8 million over the company’s 2011 losses, bringing the red ink to a total of $396.2 million. According to Automotive News, “manufacturing and supply chain inefficiencies” were behind the fourth-quarter loss of almost $90 million, which was up by $8.4 million over the same period in 2011.

Indeed, the automaker says much of its red ink stems directly from ramping up production of the Model S sedan, the company’s sole product at this point in time. The company says it is now churning out 400 units a day, and is allegedly on track to build roughly 20,000 copies by the end of 2013.

The negative numbers don’t seem to have placed a damper on Tesla’s outlook.  CEO Elon Musk stated during the company’s earnings call on Wednesday, “We really have a very high confidence that we will have a profitable first quarter, and this is the very first quarter that we have been at our target production rate.” It’s because Tesla has only just gotten up and running with its 400-unit-per-day rate that we don’t have full sales numbers yet; the company is still working through a backlog of orders on the Model S – unsurprising, given how impressed we were when we named the Model S our Automobile of the Year. That said, it still reported sales of 2400 cars in the fourth quarter of 2012 and has grown its international store total to 32. A total of 2650 Model S cars were sold in 2012.

Tesla is aiming to increase its global retail footprint to 52 stores by the end of this year, and also hopes to roll out a leasing program for the Model S and to continue expanding its Supercharger network. Musk stated that the expansion plans will only help to propel the company’s growth, as it currently has “over 15,000″ reservations for the Model S and expect to post a quarterly profit for Q1 of 2013. Ambitious goals, and we’ll have to wait and see how they shake out over the course of 2013.

Sources: Telsa, Automotive News (Subscription required)





By Donny Nordlicht

Tesla Model S Sales Exceed Expectations, Low-Range Model Axed

Tesla Model S Sales Exceed Expectations, Low-Range Model Axed

Tesla Motors announced today that it will report profitability for the first quarter, after sales of the Model S electric sedan exceeded expectations. Tesla has sold 4750 units of the car thus far, up from the 4500 units previously planned.

The announcement is good news for Tesla after a disappointing year in 2012, when the company lost almost $400 million. Last year, Tesla sold just 2650 units of the Model S while it ramped up production of the car.

Tesla Model S interior 300x187 image“There have been many car startups over the past several decades, but profitability is what makes a company real. Tesla is here to stay and keep fighting for the electric car revolution,” Tesla CEO Elon Musk said in a statement.

The company also announced two changes to the model lineup. First, Tesla has killed the low-range, 40-kWh version of the Model S. Only four percent of customers asked for the smallest battery, making it financially difficult for Tesla to build that version. Customers will receive the next largest battery pack, with a capacity of 60 kWh, but the car’s software will keep range equivalent to that of the 40-kWh pack unless owners pay for an upgrade.

In addition, Tesla revealed what it calls an Easter egg in the new Model S. Although the hardware to use Tesla’s Supercharger fast-charging network was supposed to be optional, it has actually been included in all versions of the Model S. Customers can simply pay for a software update to “unlock” the function if they need to use the Supercharger network.

Source: Tesla Motors

By Jake Holmes

Tesla Posts First-Ever Quarterly Profit, Raises Global Sales Target

Tesla Posts First-Ever Quarterly Profit, Raises Global Sales Target

Tesla CEO Elon Musk must be smiling, because the startup company has made a profit for the first time in its 10-year history. Tesla reported revenue of $562 million, resulting in an $11.2-million net income.

2013 Tesla Model S front right side1 300x187 imageThe Model S, which we named the 2013 Motor Trend Car of the Year, plays a huge part in this, as the company sold 4900 vehicles in the first quarter, exceeding the original 4500-unit goal. Tesla said it produced 400 or more cars a week, totaling 5000 for the first quarter. The company also raised its full-year forecast to about 21,000 worldwide deliveries (from 20,000), which seems like a realistic goal since the company has reduced the number of hours it takes to build a Model S. The automaker estimates U.S. demand this year for the Model S at 15,000 units.

Tesla now offers an improved finance plan and longer-term loans, which should make it easier for more people to consider a Model S. The automaker also improved its service experience, though the dealer network continues to expand. Over the last 30 days, Tesla’s stock has jumped from around $42 to about $55 a share. Whether the Model X can repeat the Model S’ success remains to be seen.

In other Tesla news, the Model S has also earned Consumer Reports‘ highest rating of 99 out of 100, performing better than any other vehicle except the Lexus LS 460L, which earned the almost-perfect score in 2007. The electric sedan was lauded for its quick acceleration, precise handling, and quiet interior. The publication didn’t like the limited range and long charging times.

Source: Tesla, Consumer Reports

By Karla Sanchez

Report: Dealer Associations Challenge Legality of Factory-Owned Tesla Stores

Report: Dealer Associations Challenge Legality of Factory-Owned Tesla Stores

State laws may put a kink in Tesla Motors’ retail plans, as the EV automaker’s factory stores are being questioned by dealer associations and state regulators, reports Automotive News. Tesla hoped to recreate the Apple buying experience with its factory stores, but dealer associations in a number of states claim those stores create unfair competition for conventional dealerships.

2012 Tesla Model S interior dash and touchscreen 300x187 imageThe main complaint is that Tesla’s stores are in violation of state franchise laws, which bar factory ownership of dealerships. Tesla currently operates 17 stores in the U.S., with most located in shopping malls. Recently, the Secretary of State’s office in Illinois told Tesla officials the company was breaking state law by listing CEO and founder Elon Musk as the owner of its Chicago store. Tesla said it would comply and asked for 30 days to respond.

Elsewhere, dealer associations are challenging the legality of Tesla stores. In defense of its Boston store, Tesla told city officials that the store wouldn’t conduct sales.

“We do what we’re capable of doing, and we do whatever they let us do,” Tesla’s vice president of sales George Blankenship told Automotive News. “It’s unique for each location. If we can’t be a dealer in a mall, we won’t do reservations on-site. We tell people where to go on our website to make a reservation.”

But the Massachusetts State Automobile Dealers Associations has issues with Tesla’s plan, claiming product presentation and directing customers to Tesla’s website is part of the sale.

2012 Tesla Model S rear three quarter 300x187 imageTesla doesn’t face the same hurdles in all states, as the company operates within the limits of the law in California. In the Golden State, manufacturers can operate dealerships so long as they’re more than 10 miles away from a private-capital dealer selling the same brand. Since there are no private-capital Tesla dealers, the company is covered. That same law caused problems for Chrysler Group earlier this year, when the company’s new Motor Village in downtown Los Angeles was investigated for violations of state franchise law.

According to the National Auto Dealers Association (NADA), factory ownership of dealership is restricted or prohibited in 48 states. NADA said in a release:

“Tesla may not yet recognize the value of the independent, franchised dealer system, but as its sales increase, NADA is confident it will re-examine its business model.”

Six Tesla stores are scheduled to open this fall, and if the launch of the Model S is successful, don’t be surprised to see a few more popping up around the U.S. before long.

Source: Automotive News (Subscription required)

By Alex Nishimoto

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