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Showing posts with label Tesla Motors. Show all posts
Showing posts with label Tesla Motors. Show all posts
Tesla slashes production costs, eyes July profit
Electric car start-up Tesla Motors Inc has slashed production costs for its flagship Roadster sports car by 43 percent to about $80,000 per vehicle as of June, its chief executive said on Monday.
Tesla, one of the biggest players in the burgeoning electric car sector, could be profitable as soon as next month, helped by demand for its premium-priced Roadster Sport, CEO Elon Musk said in a blogpost on the company's web site.
"Combined with a steady production volume of 20 to 30 per week in the third quarter this year and a good take-up rate of the higher priced Roadster Sport, we expect to cross over into profitability next month," Musk wrote.
Tesla had said earlier this year that it expected to be profitable by the middle of 2009.
In his blog post, Musk said the Roadster's production costs had dropped to $80,000 from about $140,000 in 2007, the year before it began delivering the Roadster. The vehicle sells for more than $100,000.
Most of Musk's lengthy blog post, however, was devoted to shooting down the merits of a lawsuit filed by former Tesla CEO Martin Eberhard, who was removed from the company's top spot in 2007 and later forced out as Tesla faced cost overruns and production delays.
In his May complaint, Eberhard said Musk had sought to take credit for the idea behind Tesla and had defamed him in media interviews after orchestrating Eberhard's ouster.
In his blog post, Musk said Eberhard was only fired after the company learned that the cost of the Roadster would be about $140,000, more than twice what Eberhard had promised. Musk also said Eberhard had tried to hide the true production cost from the board of directors.
"It would have been forgivable if Eberhard had simply been in over his head and didn't know how bad it was," Musk wrote. "However, here we had a situation where he was in possession of materially negative information, yet failed to inform the board and implied to the management team that they would lose their jobs if the information was discovered by the board."
Musk, who made billions founding eBay Inc's PayPal online payment service before starting Tesla, also said the company would soon be responding to the lawsuit in court.
Tesla unveiled in March its newest product, the $49,900 Model S four-door family sedan, which it said was the first highway-ready electric vehicle within the price range of most car buyers.
Last month, German luxury car maker Daimler AG paid about $50 million for a 10 percent stake in Tesla, expanding its presence in the growing market for low- and no-emissions cars.
California, with its strict emissions regulations, is a hotspot for the evolving electric vehicle market. Tesla is vying with a coterie of start-ups, including Coda Automotive, that are developing automobiles for a wider American consumer market.
Tesla, one of the biggest players in the burgeoning electric car sector, could be profitable as soon as next month, helped by demand for its premium-priced Roadster Sport, CEO Elon Musk said in a blogpost on the company's web site.
"Combined with a steady production volume of 20 to 30 per week in the third quarter this year and a good take-up rate of the higher priced Roadster Sport, we expect to cross over into profitability next month," Musk wrote.
Tesla had said earlier this year that it expected to be profitable by the middle of 2009.
In his blog post, Musk said the Roadster's production costs had dropped to $80,000 from about $140,000 in 2007, the year before it began delivering the Roadster. The vehicle sells for more than $100,000.
Most of Musk's lengthy blog post, however, was devoted to shooting down the merits of a lawsuit filed by former Tesla CEO Martin Eberhard, who was removed from the company's top spot in 2007 and later forced out as Tesla faced cost overruns and production delays.
In his May complaint, Eberhard said Musk had sought to take credit for the idea behind Tesla and had defamed him in media interviews after orchestrating Eberhard's ouster.
In his blog post, Musk said Eberhard was only fired after the company learned that the cost of the Roadster would be about $140,000, more than twice what Eberhard had promised. Musk also said Eberhard had tried to hide the true production cost from the board of directors.
"It would have been forgivable if Eberhard had simply been in over his head and didn't know how bad it was," Musk wrote. "However, here we had a situation where he was in possession of materially negative information, yet failed to inform the board and implied to the management team that they would lose their jobs if the information was discovered by the board."
Musk, who made billions founding eBay Inc's PayPal online payment service before starting Tesla, also said the company would soon be responding to the lawsuit in court.
Tesla unveiled in March its newest product, the $49,900 Model S four-door family sedan, which it said was the first highway-ready electric vehicle within the price range of most car buyers.
Last month, German luxury car maker Daimler AG paid about $50 million for a 10 percent stake in Tesla, expanding its presence in the growing market for low- and no-emissions cars.
California, with its strict emissions regulations, is a hotspot for the evolving electric vehicle market. Tesla is vying with a coterie of start-ups, including Coda Automotive, that are developing automobiles for a wider American consumer market.
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Feds lend Tesla $465 million to build electric car
The Obama Administration will lend Tesla Motors $465 million to build an electric sedan and the battery packs needed to propel it. It's one of three loans totaling almost $8 billion that the Department of Energy awarded Tuesday to spur the development of fuel-efficient vehicles.
Energy Secretary Steven Chu announced that the Department of Energy is also lending $5.9 billion to Ford to retool factories in five states. Nissan will receive $1.6 billion to refurbish a factory in Tennessee to produce electric cars.
The loans are the first awarded under the $25 billion Advanced Technology Vehicle Manufacturing Program to help automakers offset the cost of retooling to build eco-friendlier cars that are at least 25 percent more fuel-efficient than 2005 models.
"We have a historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America," the president said in a statement. "These loans -- and the additional support we will provide through the Section 136 programs -- will create good jobs and help the auto industry to meet and even exceed the tough fuel-economy standards we've set while helping retain our competitive edge in the world market."
The Obama Administration announced last month that it is raising fuel-efficiency standards from the current average of 27.5 miles per gallon to 35 miles per gallon by 2016. Chu said the loans will help automakers achieve that goal.
"The American innovation machine, when it revs up, is the greatest in the world," he said during a press conference at Ford's headquarters in Detroit, according to the Detroit News. "Today, we're putting that engine into gear."
Tesla said its share of the pie will help get the Model S sedan (pictured) on the road by the end of 2011.
"We are honored to receive one of the first loan awards in this program," company CEO Elon Musk said. "I'm confident we'll put the money to very productive use. We look forward to producing the Model S."
Tesla has long been counting on the loan to help it build the sedan it unveiled in March and had been in discussions with the agency for about nine months. It had sought $350 million to retool a factory to build the car and $100 million to manufacture battery packs and drivetrain components. Those packs and components will be used in vehicles built by Tesla and other automakers most notably Daimler, which recently bought nearly 10 percent of Tesla to jump-start development of the Smart EV.
Musk said the money will be disbursed on a monthly basis. Repayment will commence within one year of the start of Model S production and the loan must be repaid by 2022.
"There are incentives for early repayment," he said, without elaborating, "and I suspect we will have repaid the loan well before 2022."
There's still no word on where the factories will be located, but Musk said they most likely will be in California. An announcement could come as early as next month, he said. As for the Model S, Musk said it could share components with Mercedes sedans now that Daimler has a stake in Tesla.
"There's a possibility the car will use a Mercedes-derived suspension and other components such as safety systems, crash structures, interior fit and finish," he said. "There are a number of areas where Daimler can be quite helpful."
Musk said Daimler's investment in Tesla coupled with the federal loan and revenue from the Roadster leaves the company "in pretty good shape" financially. Tesla has gotten the cost of goods for the Roadster the materials and labor cost to build the car down to about $80,000 and the company expects to be profitable in July, he said. The company has delivered more than 500 Roadsters and received more than 1,200 refundable deposits at $5,000 apiece for the Model S.
Ford was the big winner, walking away with a promise of $5.9 billion in loans through 2011. The automaker says it will use the money to retool 11 factories in five states to build more-efficient gasoline engines and electric cars. It also will use the money to convert two truck factories to automobile production. Ford has said it will have an EV by 2011, and it plans to spend $14 billion on advanced technology during the next seven years. It expects to begin drawing on the government loan within 35 days.
"This is the kind of partnership that will help American manufacturing not just survive, but thrive," company president Alan Mulally said after Chu announced the loans at Ford's headquarters in Detroit, according to the Detroit Free Press. "Ford intends to be the fuel-economy leader."
Nissan is charging ahead with plans to put an electric car in showrooms next year. Although the first cars will be built in Japan, Nissan says it will use the $1.6 billion loan to retool a factory in Smyrna, Tennessee, to take over production by 2012. Construction on the factory is slated to begin by the end of the year. Nissan says the factory will employ 1,300 people and build 50,000 to 100,000 cars at full production.
"This loan is an investment in America," Dominique Thormann, a senior vice president at Nissan North America, said in a statement. "It will help us put high-quality, affordable zero-emissions vehicles on our roads. This project will expand our Smyrna plant, and that's great economic news."
Chu said the Obama Administration hopes to disburse the loans quickly.
More than 100 companies ranging from General Motors to Aptera Motors are seeking funding through the program. The government is expected to announce recipients for the remainder of the $25 billion program next year. The DOE did not disclose the terms of the loans.
Energy Secretary Steven Chu announced that the Department of Energy is also lending $5.9 billion to Ford to retool factories in five states. Nissan will receive $1.6 billion to refurbish a factory in Tennessee to produce electric cars.
The loans are the first awarded under the $25 billion Advanced Technology Vehicle Manufacturing Program to help automakers offset the cost of retooling to build eco-friendlier cars that are at least 25 percent more fuel-efficient than 2005 models.
"We have a historic opportunity to help ensure that the next generation of fuel-efficient cars and trucks are made in America," the president said in a statement. "These loans -- and the additional support we will provide through the Section 136 programs -- will create good jobs and help the auto industry to meet and even exceed the tough fuel-economy standards we've set while helping retain our competitive edge in the world market."
The Obama Administration announced last month that it is raising fuel-efficiency standards from the current average of 27.5 miles per gallon to 35 miles per gallon by 2016. Chu said the loans will help automakers achieve that goal.
"The American innovation machine, when it revs up, is the greatest in the world," he said during a press conference at Ford's headquarters in Detroit, according to the Detroit News. "Today, we're putting that engine into gear."
Tesla said its share of the pie will help get the Model S sedan (pictured) on the road by the end of 2011.
"We are honored to receive one of the first loan awards in this program," company CEO Elon Musk said. "I'm confident we'll put the money to very productive use. We look forward to producing the Model S."
Tesla has long been counting on the loan to help it build the sedan it unveiled in March and had been in discussions with the agency for about nine months. It had sought $350 million to retool a factory to build the car and $100 million to manufacture battery packs and drivetrain components. Those packs and components will be used in vehicles built by Tesla and other automakers most notably Daimler, which recently bought nearly 10 percent of Tesla to jump-start development of the Smart EV.
Musk said the money will be disbursed on a monthly basis. Repayment will commence within one year of the start of Model S production and the loan must be repaid by 2022.
"There are incentives for early repayment," he said, without elaborating, "and I suspect we will have repaid the loan well before 2022."
There's still no word on where the factories will be located, but Musk said they most likely will be in California. An announcement could come as early as next month, he said. As for the Model S, Musk said it could share components with Mercedes sedans now that Daimler has a stake in Tesla.
"There's a possibility the car will use a Mercedes-derived suspension and other components such as safety systems, crash structures, interior fit and finish," he said. "There are a number of areas where Daimler can be quite helpful."
Musk said Daimler's investment in Tesla coupled with the federal loan and revenue from the Roadster leaves the company "in pretty good shape" financially. Tesla has gotten the cost of goods for the Roadster the materials and labor cost to build the car down to about $80,000 and the company expects to be profitable in July, he said. The company has delivered more than 500 Roadsters and received more than 1,200 refundable deposits at $5,000 apiece for the Model S.
Ford was the big winner, walking away with a promise of $5.9 billion in loans through 2011. The automaker says it will use the money to retool 11 factories in five states to build more-efficient gasoline engines and electric cars. It also will use the money to convert two truck factories to automobile production. Ford has said it will have an EV by 2011, and it plans to spend $14 billion on advanced technology during the next seven years. It expects to begin drawing on the government loan within 35 days.
"This is the kind of partnership that will help American manufacturing not just survive, but thrive," company president Alan Mulally said after Chu announced the loans at Ford's headquarters in Detroit, according to the Detroit Free Press. "Ford intends to be the fuel-economy leader."
Nissan is charging ahead with plans to put an electric car in showrooms next year. Although the first cars will be built in Japan, Nissan says it will use the $1.6 billion loan to retool a factory in Smyrna, Tennessee, to take over production by 2012. Construction on the factory is slated to begin by the end of the year. Nissan says the factory will employ 1,300 people and build 50,000 to 100,000 cars at full production.
"This loan is an investment in America," Dominique Thormann, a senior vice president at Nissan North America, said in a statement. "It will help us put high-quality, affordable zero-emissions vehicles on our roads. This project will expand our Smyrna plant, and that's great economic news."
Chu said the Obama Administration hopes to disburse the loans quickly.
More than 100 companies ranging from General Motors to Aptera Motors are seeking funding through the program. The government is expected to announce recipients for the remainder of the $25 billion program next year. The DOE did not disclose the terms of the loans.
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Tesla Motors to begin Model S electric car production in 2011
The United States Department of Energy announced Tuesday the recipients of the first phase of its Advanced Technology Vehicles Manufacturing loan program totaling $8 billion. This program is intended to foster development of advanced, fuel efficient vehicles and has been allotted a total of $25 billion to be apportioned among various manufacturers with achievable and promising business models. The recipients of this phase include Ford Motor Company with $5.9 billion, Nissan North America at $1.6 billion and California based startup company Tesla Motors, with $465 million.
Tesla plans to apply $365 million of the loan proceeds to construct a plant for mass production of its Model S sports sedan, which it unveiled earlier this year. It expects to complete the factory by 2011, and to be manufacturing as many as 20,000 cars annually by 2013. While the sticker price is quite steep at $49,900 after the $7,500 tax credit, Tesla says that taking maintenance, fuel and sales tax savings into account (there are no sales taxes on electric vehicles), the overall cost is roughly comparable to that of a conventional, gas guzzling vehicle with a $35,000 sticker price. Still beyond what most Americans can afford, but that's always the case when new technologically advanced products first appear in the marketplace. Remember when flat panel televisions cost $20,000 just a few years ago?
Furthermore, the Model S is no ugly duckling or slouch on the road, as many believe all-electrics are. This sleekly styled, richly appointed automobile can zoom from 0-60 mph in 5.6 seconds, has a top speed of 120 mph, seats five adults and two children with rear-facing pull down seats, and holds more luggage than a conventional sedan because of the placement of its battery pack and the relatively small size of the motor, with no need for bulky transmissions or exhaust systems. And of course, there is no annoying engine noise.
With the other $100 million of the loan package Tesla will build a second plant, this for the manufacture of battery packs and electric drive trains for other car manufacturers. When completed, both factories will provide a total of 1650 new green jobs.
German luxury carmaker Daimler AG announced in May that it planned to acquire a 10% interest in Tesla Motors so as to take advantage of its technology for use in its Smart Car and Mercedes Benz lines. This should provide additional credibility and confidence in Tesla Motors.
The Tesla Motors website is updated continuously and contains a wealth of information, photos, and videos on its two electric cars, the Model S and the sports Roadster, including test drive reviews. I highly recommend it. This company could be what America needs to get back on top of the automobile business. Detroit is simply too stodgy and set in its ways to compete with Japanese, German and other foreign companies, I'm afraid.
Tesla plans to apply $365 million of the loan proceeds to construct a plant for mass production of its Model S sports sedan, which it unveiled earlier this year. It expects to complete the factory by 2011, and to be manufacturing as many as 20,000 cars annually by 2013. While the sticker price is quite steep at $49,900 after the $7,500 tax credit, Tesla says that taking maintenance, fuel and sales tax savings into account (there are no sales taxes on electric vehicles), the overall cost is roughly comparable to that of a conventional, gas guzzling vehicle with a $35,000 sticker price. Still beyond what most Americans can afford, but that's always the case when new technologically advanced products first appear in the marketplace. Remember when flat panel televisions cost $20,000 just a few years ago?Furthermore, the Model S is no ugly duckling or slouch on the road, as many believe all-electrics are. This sleekly styled, richly appointed automobile can zoom from 0-60 mph in 5.6 seconds, has a top speed of 120 mph, seats five adults and two children with rear-facing pull down seats, and holds more luggage than a conventional sedan because of the placement of its battery pack and the relatively small size of the motor, with no need for bulky transmissions or exhaust systems. And of course, there is no annoying engine noise.
With the other $100 million of the loan package Tesla will build a second plant, this for the manufacture of battery packs and electric drive trains for other car manufacturers. When completed, both factories will provide a total of 1650 new green jobs.
German luxury carmaker Daimler AG announced in May that it planned to acquire a 10% interest in Tesla Motors so as to take advantage of its technology for use in its Smart Car and Mercedes Benz lines. This should provide additional credibility and confidence in Tesla Motors.
The Tesla Motors website is updated continuously and contains a wealth of information, photos, and videos on its two electric cars, the Model S and the sports Roadster, including test drive reviews. I highly recommend it. This company could be what America needs to get back on top of the automobile business. Detroit is simply too stodgy and set in its ways to compete with Japanese, German and other foreign companies, I'm afraid.
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