Despite launching a frothy IPO, EV maker Tesla’s net loss nearly tripled last year, losing more than $154m compared to a $55.7m loss in 2009. Total revenues were up nearly $5m, but only due to a nearly $20m bump in “development services” income. Revenue from “automotive sales” was down by around $15m. R&D costs skyrocketed from $19.3m to nearly $93m, while “selling, general and administrative” costs doubled to $84m. Still, CEO Elon Musk is all optimism in the firm’s press release, crowing
We are very pleased to report continued revenue growth, improving margins and a steady progression in our Roadster and powertrain activities,. Our powertrain team delivered solid results, with an increase in orders and record deliveries of battery packs and chargers for the Daimler Smart fortwo electric drive, the completion of our development program for the Daimler A-Class, and the commencement of the phase 1 development program for the Toyota RAV4 EV.
Musk noted that the firm is on-track to start delivery of its forthcoming Model S sports sedan in mid-2012. It had better be, because Tesla’s clearly not going to sustain itself on Roadsters.
As we clearly see, and Tesla is rapidly learning, it is very expensive and very difficult to start production of any volume of automobiles.
This story omits the fact that Tesla’s balance sheet tripled in 2010, growing by $256 million in assets and liabilities, largely related to the IPO and the Toyota deal. To spin it another way, their $154 million loss is actually a smaller fraction of their assets than last year’s $55 million loss.
The Model S is clearly taxing Tesla’s resources.
For Tesla’s detractors: Just you try building a high-performance EV, and then selling the technology and R&D to Toyota for one of their cars. Tesla is the real deal; kudos to them for staying a very tough course.
So sorry your investment in Tesla Motors isn’t going well, try Ford stock, it’s recently corrected and they seem to know what they are doing.
@GS650G: Funny. I have no share in either business, but wish I had Ford.
I shall not root for a heavily subsidized company that makes cars for millionaires only who then get a $7,000 tax credit from all of us regular taxpayers.
Anyone else wants to root for Tesla, be my guest.
I agree with you in principle, but the subsidies they have received are small with respect to the size of the company and the price of their product.
Consider that the subsidies for GM’s and Nissan’s products are the same, but for much cheaper cars.
IMO, EVs and hybrids should not be subsidized.
Nissan and GM gets the subsidy for cars more likely to be used as primary transportation, hence the “planet” gets more carbon emission reduction per subsidy dollar than if the subsidy is applied to a garage toy for Al Gore groupies.
I put more “necessary/commuting” miles on my bicycle every year, than anyone I know with a Tesla does. If I could only get $7,000 in tax credit per bicycle, I’d be sure to buy lots more of them.
I just find it sad that this once decently ran country, has sunk so far down into the sink hole of progressive indoctrination and superstition, that there actually exists people clueless enough to fall for the kind of nonsense necessary to get a program like this approved.
And remember, the “base” $55Kish Model S won’t get the oft mentioned 300 mile range. Try 140 miles, which Volt and Leaf EPA testing has shown means the reality is around 115 miles real world. For that kind of cheddar you could buy two Leafs.
It’s all vaporware until real sales start for the S.
Who would have thought? I guess it’s time for a big government (ie, taxpayer) loan. Face it, there will never be any cars from this outfit, but the executives will be well paid. And why not? The other day I heard Chairman Maobama claiming “we” needed to “invest” in this “new technology.” Maybe I need to form a “start-up” and get my fair share of the spoils while there’s still a country left.
What’s sad is that you had a chance here to provide a well-reasoned argument from your own point of view, even opportunity to link to proof supporting your assertions.
But you blew it all by acting like a child and name-calling.
Kudos.
Good luck for your start-up.
Lighten up, Potatoes. No need to be smug, especially since you’re just miffed that I came down on your guy, the Obaminator. And, this is a combo-box comment on a car site, not a peer reviewed economic journal, for crying out loud. But let’s all get real. Both you and I know that the only reason a company like Telsa is in business is because of government subsidies to the electric-car infrastructure and the associated manufacturing base. And also because of consumer rebates. This entire thing should have been put to rest long ago. And who needs links to support my opinions. All I need to do is to ask whether you’ve invested YOUR personal money in Telsa? I thought not. Case closed.
*sigh*
I’m just tired of people such as yourself making snide, useless, uninteresting, knee-jerk, Beck-ish comments.
If you’re going to take a sitting president to task, do it over REAL issues. The continued warrantless wiretapping program, etc. There are sure to be plenty more coming down the line. I don’t put much stock in ANY politicians, and believe that if they had to take a simple math test based on their proposed policies to qualify for elected office, not one of them would pass.
I’ve been speaking out against Tesla over at Engadget and linking back here to TTAC about how they shouldn’t be around much longer because of the blinding cash burn they’ve got going on.
But that’s neither here nor there, good day, sir.
Potatoes, you fell into your own trap there, but I suppose it’s ok for you because you’re on the right side. Beckish comments showed your true colors, denigrate anyone who doesn’t agree with you. Oops.
They need to change their focus to battery packs, drives, software, & controls.
Ditch the auto manufacturing.
Do this and they have a chance.
Your scenario is probably how it will go eventually, with Toyota as a client paving the way.
I agree with trend shifter.
Tesla is committing a common folly with many start-ups from Silicon Valley….over expansion.
The problem isn’t really overexpansion, it’s Elon Musk’s ability to scam investors, the government and customers that have caused their problems.
Texas loses $154M? Pikers. Obama loses that much every hour.
Oh, wait.
You said Tesla.
Never mind.