2012 Tesla Model S

Tesla CEO Elon Musk predicting Tesla Motors profitability in 2013

Advertisement
Tesla Motors is continuing to rack up steep losses, so a prediction of profitability by next year may strike one as lunacy, until you look at the orders on hand and the projection of sales volume required to break even.

Tesla Motors CEO Elon Musk is again repeating his claim that Tesla Motors will be profitable in 2013, according to a Dow Jones report published today. Given the company's current burn rate as it ramps up production of the Tesla Model S and X electric cars this may be a bold claim, but it is one he has made before. The claim rests on the assumption that manufacturing, orders and purchases of Tesla's high end electric cars will proceed as expected.

At the June 2012, Elon Musk went over the numbers and explained the reasoning behind this prediction. However there continues to be a large "short interest" in Tesla Motors' stock indicating there is a large number of stock traders betting against the company.

In 2012 and 2013 the company will be selling only the Model S, and expects to sell 5,000 units in 2012, and 20,000 units in 2013. The Tesla Model X is expected to go to manufacturing in 2014. This means that during 2012 and 2013 the company expects to sell 25,000 units of the Model S, and the price for that car ranges from the neighborhood of $50,000 to over $100,000 depending on options selected. I expect the "sweet spot" in the Model S line is the mid-range model with SuperCharger.

Pages

Share on Facebook submit to reddit Share on Google+

Advertisement
Sign-up to our email newsletter for daily perspectives on car design, trends, events and news, not found elsewhere.

Comments

I sold my SLK 320 for a Prius and am loving the 110 measured MPG I'm getting. I do miss the torque... But even with it's puny 11 miles electric only I can see the 'range anxiety' of electric cars is something experienced mostly by those who don't own one. I can find a charger pretty much anywhere I go if I'm willing to walk one or two blocks. And my gas budget plummeted from $300 a month to $35 (just a tank of 8.5 gallons of unleaded 87). I have a reservation for a Model X that should satisfy the cravings to never visit a gas station again, carry all my family places, and speed away on onramps. Can't wait..
My neighbor got a Hyundai Sonata Hybrid and let me drive it. It was kinda fun! However, recently, I got a 20 minute spin in a Model S in California. It was way past kinda fun. Granted this one was the Power model with all the goodies but the regular model is no slouch. Both of them beat my supercharged Audi A6 3.0T to 60mph and do it silently. The quality of the chassis and the car in general was very impressive. The driver's door on "mine" was a little difficult to latch closed all the way. That was the only build quality related problem I could detect. Handling is phenomenal and there are no rattles. There were 3 people in the car when I drove it and still the car pulled like a train. If electric cars could be charged in the time it takes to fill a gas tank and chargers were as plentiful all over the US as gas stations, I'd never consider a gasoline engine again. Electric is simpler, cleaner and better, especially the way Tesla does it.
Go Tesla--Go Space X!! Read the zany-humorous new book God Shuffled His Feet-A Novel by Mark Ellenbogen. Elon Musk and Space X team up with the Dalai Lama and save mankind from total destruction. With only 9 months to save the Earth, Musk steps up to the task. An apocalyptic tale with a new twist! Hyper-space drives, MagLev ground transportation and Hydrogen fusion power plants all mass produced by Tesla and Space X play a pivotal role in saving a portion of mankind and re-colonizing a new planet. Amazon.com Barnes and Noble.com Goodreads.com
Guilt-free luxury - how could it miss? Especially when it's smooth, silent, and fast. Going for the luxury market initially was a smart move, selling to people who can afford the price of being early adopters. The price of gas shouldn't make much difference to this market - they're not so much interested in saving money on fuel as they are in the other advantages.

Pages