Tesla Model S Already Sold Out, Tesla To Turn Profit In 2013

America’s newest car maker, Tesla Motors, has yet to turn a profit since its founding waaay back in 2003. But founder and frontman Elon Musk believes that 2013 is the year that the fledling electric car maker will make a profit. Why? Well for one reason, the 6,500 unit production run of the 2012 Model S is already sold out. But is Musk counting his chickens before they hatch?

Big Money Coming In

In an interview with Bloomberg, Musk revealed that the intial offering of 6,500 Tesla Model S sedans area already spoken for. Now all Musk has to do is actually build and deliver all 6,500 sedans without any major mechanical snafus. With prices on the Tesla Model S ranging from $60,000 to over $80,000 (including the pricey Signature series), selling out of production on day one would mean a substantial windfall for Tesla.

If the average Model S brings Tesla $70,000, then Tesla would be able to rake in over $455 million, substantially more money than Tesla has had on hand at any previous point. Tesla can also count on income coming from sales of the Toyota Rav4 EV, a joint Toyota-Tesla product set to launch late next year. Tesla is also selling battery packs to companies like Mercedes, so 2012 and 2013 could indeed be the watershed year for Tesla.

But…

Tesla has been operating at multi-million dollar loses for nearly a decade now. Even in 2011 Tesla expects to spend between $30 million and $55 million more than it makes. So far the company has received over $814 million in funding, without turning a profit, and $331 million of that came from government energy loans now under intense scrutiny.

Running a successful car company is no small task, and many an innovative automaker has found its way to an early grave by being too far ahead of its time. Tesla would be the exception, rather than the rule, if it is able to carve out a nice niche in the electric vehicle world for itself. I truly believe that the Model S sedan is the make-it-or-break-it moment for Tesla. If Tesla can get this sedan launch off the ground smoothly and with limited issues, they will be setting themselves up nicely for a future with an emphasis on EV’s.

But, if Tesla blows the launch and sells a shoddy vehicle, or one that does not meet expectations, it could be the end of a decade-long experiment to see if electric vehicles can support an entire car company. And it could be a huge setback for EV’s in general. So don’t get caught up in the hype; Tesla still has a long road ahead of it.

Source: Bloomberg

Tags: Bloomberg, cost, Elon Musk, government loans, Model S, Model S cost, Model S sedan, Model X, profit, range, Telsa Motors, Tesla, Tesla Roadster

About the Author

Christopher DeMorro A writer and gearhead who loves all things automotive, from hybrids to HEMIs, Chris can be found wrenching or writing- or esle, he's running, because he's one of those crazy people who gets enjoyment from running insane distances.

Nixon

I appreciate your sense of rational wait-and-see realism.

But fudge that! It’s time to P-A-R-T-A-Y!!!!!!

This is such awesome in-your-face news that completely smashes the anti-EV/Tesla haters down, that I’m on too much a high to think about what-if’s. Here we have a top level company, with a top level business plan that is building upon their already successful first EV, with a smashing 2nd follow-up EV. This is stuff we could have only dreamed of just a few years ago when green car blogs like this started popping up everywhere.

Back in the mid 2000’s were we talking about how Tesla’s big problem was delivering 6,500 cars that already have a $5,000-$40,000 dollar deposit down on them? Heck no. Were we talking about whether it will be Nissan or Chevy who will sell the most EV’s/REEV’s by the end of the year? Not even close.

So tonight, I’m lifting the cup to Tesla’s awesome rise from just an idea, to a sold-out model year BEFORE the year even starts! Usually only super-cars sell out like that. This is yet another major milestone in the re-birth of EV’s in a year of major EV milestones.

Tomorrow I’ll return to rational realism. Maybe.
Robert Abooey

I think that the success of the Model S is what will make or break Tesla.

I hope Tesla makes it because IMO at some point all cars sold in America should be hydrids or EVs. It makes little sense to me to be dependent on oil from nations and people that hate us.

I hope that my next car is a Tesla Model S or, if I am rich enough (which I’m not at the moment), a Fisker Karma.

I hope the cars like the Model S, the Karma, the Leaf and the Volt represent the future of automobiles in this country.
Scott Menge

It’s great that the initial launches if these cars is happening, but to sell in the volume to justify sustained production for years and hopefully decades to come, pricing will need to be in the mid-$20ks range…NOT $39K (Ford), NOT $41K (GM), and certainly NOT $60 – $80K (Tesla). If this is the business model, it will remain niche, and may even die out to other mature technologies such as natural gas or fuel cells.
- T Adkins
  
  @Nixon- party on there is alot to celebrate it is quite an achievement
  
  @Robert- I am sure no is more aware than Tesla that this is a make it or break it situation. The car does fit a really good niche with it’s range and then with it’s mini van capacity but 4-door styling.
  
  @Scott- I remembering reading that this car was always in Tesla’s plan to get them to the next cheaper car They have already jumped from a car over $100k to this $60k car. If they get their next car into the low to mid $30k, with a 200-250 mile range they will be in a very good sweet spot. Who knows they maybe able to even get into the mid-$20k range if they do a battery lease program. I don’t see it losing out to natural gas because natural gas cars and propane cars are available now, as far as fuel cells if they hit their stride they will just be incorporated into the cars, fuel cell is basically just a ‘fueled-battery’
  
  -T
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