It has taken nearly ten years and hundreds of millions of dollars from both private and public investors, but Tesla Motors could finally be on the verge of turning a real and sustainable profit. So says CEO Elon Musk, which would mean that Tesla would reach profitability a full year ahead of schedule. More wishful thinking, or the beginning of a successful automaker?
After reporting a loss of $90 million on revenue of $306 million, Musk told investors in a quarterly report that his company had built 2,750 cars in the fourth quarter of 2012, and delivered 2,400. Capacity at the Fremont, California factory has reached 400 cars per week. For the time being, Tesla remains a money-losing operation, which has caused concern among some market analysts. Their fears are justifiable, but Tesla seems to be one of the few exceptions in a world increasingly sour on pure electric vehicles.
Musk went on to predict that Tesla Motors will “…be slightly profitable (excluding only non-cash option and warrant-related expenses) in Q1 2013.” Musk would not commit on being profitable in every quarter of 2013, but at this point Tesla needs to start making money if it is to remain viable.
So far, Musk has delivered on most of his promises, including a $50,000 price tag for the Model S (after tax credits) and beginning production by July of 2012. But he owes a lot of people a lot of money, and promises only go so far. Will 2013 be the year this electric car wunderkind finally makes some money?
Source: Green Car Reports