By Shawn Langlois and Melodie Warner
Tesla Motors Inc. cut its revenue target for 2012, warning that it has fallen behind on its production goals for its Model S sedan.
The luxury electric-car maker now expects revenue for 2012 of between $400 and $440 million, “primarily reflecting a decrease in the number of Model S vehicles we plan to deliver in 2012,” Tesla said in a regulatory filing. The company’s previous revenue forecast for 2012 was between $560 million and $600 million.
The all-aluminum body Model S is the company’s second vehicle and is designed and priced to sell in higher volumes than its existing Roadster, which costs about $109,000. The company earlier had hoped to produce this year 5,000 of the Model S cars, which are priced between $50,000 and $98,000 including federal tax credit.
The Palo Alto, Calif., car maker also disclosed in a federal filing that it has sought a waiver from certain conditions of the loans it received from the U.S. Department of Energy. In 2009, the Obama administration granted Tesla an up to $465 million federal loan; the company had drawn about $360 million of the loan as of May.
The terms of Tesla’s loans were amended in February of this year to require the company to keep enough money set aside so it can make principal and interest payments on its government loan through June 15, 2013.
Tesla said it plans to offer 4.34 million common shares, valued at about $150 million at Monday’s closing price of $30.66. Chief Executive Elon Musk agreed to buy up to $1 million of the planned stock offering.
Read more in The Wall Street Journal.
By WSJ Staff