Tesla Motors has yet to post a profit in its short history, and just recorded another significant loss for the second quarter of 2010. With sales of its Roadster electric vehicle in limited quantities, Tesla is now looking toward the launch of its second product, the Model S, in hope of turning a profit
Although revenue was strong at $28.4 million – a 5.4-percent increase over the same period last year – the automaker managed a $38.4 million net loss. The deficit is attributed to the continued research and development costs for Tesla’s next project, the forthcoming Model S sedan. The Silicon Valley-based automaker insists the development of the Model S is on track, and will debut in 2012 with a price tag of around $57,400 – nearly half the amount of the Roadster’s $109,000. With a more affordable offering, Tesla is expecting a dramatic increase in sales. As of July, the entire run of Tesla Roadsters has accounted for just 1200 sales.
In June, Tesla launched an initial public offering that generated $226 million. Tesla was the first U.S. automaker to go public since Ford’s IPO in 1956. The instant cash infusion should help keep Tesla on its feet until the Model S sees the light of day. Tesla expects its losses to continue, however, until the Model S debuts.
Can Tesla hold out until a second product arrives? Let us know what you think in the comments section.
Source: Automotive News (Subscription required)