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Tesla spending big to build Model S

By Alborz Fallah |

Tesla Motors Inc., best known for making cool sporty electric cars has today posted a USD $34.9 million ($34.8 million) net loss for third quarter of 2010, according to a Reuters report.

That’s an increase loss of USD $30.3 million over last year. The company says the additional funds were used in getting its Model S ready for launch in 2012.

Whilst development work continues Tesla isn’t selling as many cars as it used to either, with revenue down by nearly 1/3 to just USD $31.2 million ($31 million).

The American based company which was started by one of the co-founders of Paypal, has already seen $50 million buy-in from Toyota and a potential $30 million from Panasonic.

CEO Elon Musk says his company will spend nearly $500 million over the next two and a bit years to ramp up production and volume from just 600 units to the expected 20,000 per year.

Tesla expects to report losses until at least 2012 when the Model S is launched. The Model S, which should be working as a prototype by year’s end, is seen as the company’s last hope to stay viable. The electric 4-door sedan can accelerate from 0 to 100 km/h in 5.6 seconds and has a staggering range of 483km per charge cycle. Reports suggest it will retail from USD $57,400 ($57,130).

Once it comes to Australia it will cost a little more thanks for our taxes (although, perhaps the government will offer incentives for uptake of electric cars like in the U.S.). A Model X SUV should see the company progress further by 2014.

As part of Toyota’s investment into the company, the Big T is leaving Tesla in charge of developing and supplying an electric Toyota RAV4 model.


 

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  • Mark

    Looks very Austin Martin – I love it

    this car would be a bargin at under 70K in aust, and with the exchange rate(assuming 57K is accurate) that should be totally possible, which of course means it will cost over 100K here!

    • Daniel

      Do you mean Aston Martin?

      I don’t really see the resemblance to that- thought it looked more like a rip off of the Maserati Grand Sport at the front and the wheels and back had a bit of Jaguar XK/XF to them.

  • Wayne Kerr

    Tesla does a great job of making electric cars seem cool and fun.

    Unlike the Mitsubishi iMiev selling for $60K.

  • Justin

    If it cost that much I’d have one

  • Charles Delmar

    I am on the cusp of making my next (and first) fortune. I keep a glossy photo of the Tesla S over my desk to remind me what I’m working for. Once I have my nose under that tent, my name will be on the advance order list … You Betcha

    • Crouchy

      you’re also on the cusp of being a twat…

      • Mitch

        I’ll second that

    • Peter

      I understand that concept, though in my case it involved Penthouse magazines, and cars werent involved at all.

    • Brownie

      Sorry to disappoint you Charlie – Amway reps don’t generally make fortunes, despite what they may tell you.
      Don’t count your fortunes (or Teslas for that matter) before they hatch.

  • LukasUtopia

    If anyone can make electric cars cool and sell well it may well be only well known cool brands like Aston Martin, Ferrari, or the like.

  • LukasUtopia

    In saying that though the Model S looks very nice, but does it have a well honed chassis like the great sportscars?

  • MisterMister

    How come Telsa motors always makes me think of Red Alert?

  • Kj

    Do they ever tested the situation like accidents that car sinking i. Water for example dock or some flood maybe…. If they havent consider this than driver has great chance of dieing by electricution.. Thats one of hell risk to take!!!