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Tesla Motors (TSLA) warns due to a "slower ramp in production" 2012 revenue will come in at...

Tesla Motors (TSLA) warns due to a "slower ramp in production" 2012 revenue will come in at $400M to $440M and Q3 margins will be negatively affected. The company says it still expects to meet its production goal of 20K Model S deliveries for 2013.
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Comments (23)
  • blunderbuss
    , contributor
    Comments (379) | Send Message
     
    BUSINESS INSIDER:
    Shares of Tesla -- the electric car maker -- are down 12% after a warning on production and sales.

     

    Read more: http://read.bi/RTYeyV

     

    FTA:
    Consistent with our anticipated slower ramp in production
    and customer deliveries, we now anticipate revenue for 2012
    of $400 to $440 million, primarily reflecting a decrease in
    the number of Model S vehicles we plan to deliver in 2012.
    We also believe that third quarter revenue will be in the range
    of $44 to $46 million, reflecting lower deliveries of Model S
    as well as the deferral of revenue associated with
    development services.
    25 Sep 2012, 08:06 AM Reply Like
  • D. McHattie
    , contributor
    Comments (1844) | Send Message
     
    Don't forget to read the bit at the bottom about the DOE Loan Facility.

     

    They are saying they can't pay back the government loan under the agreed upon terms.

     

    So they've never seen a production target that they couldn't whiff on but, dude, they're totally, totally going to knock the ball out of the park... next year. I hope you'll forgive my skepticism.

     

    So, like Elon Musk's other 'great' achievement Space-X, that relied completely on government largess, Tesla Motors would also not exist without hundreds of millions of dollars from taxpayers.

     

    That's so nice that pluggers like me in the middle income range get to subsidize fancy toys for rich people. Yeah, this is a great charity and I'm so glad I could help out.

     

    Where's Nick Butcher? I'm sure he'll have a positive spin for this one.

     

    D
    25 Sep 2012, 08:07 AM Reply Like
  • blunderbuss
    , contributor
    Comments (379) | Send Message
     
    I've been following the (TSLA) argument all summer and it seems like Mr. Butcher evaluates Tesla purely as an engineering accomplishment, even though he's courting the "Apollo fallacy." John Peterson, on the other hand, is the very model of an informed skeptic and he clearly knows something about the energy storage business.

     

    Musk deserves credit for Paypal; he pulled that one out of the wreckage of another business. I can't comment on Space-X.
    25 Sep 2012, 08:26 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    DH: Excellent post. Yes, Elon Musk is quite the government welfare dependent. I would have more respect for the guy had he truly achieved Tesla, Space-X etc. on his own, and with other private sector investors.
    25 Sep 2012, 05:38 PM Reply Like
  • Uncle Rob
    , contributor
    Comments (43) | Send Message
     
    I think they said that they need the new offering to keep their debt to equity ratio within the terms of the loan agreement.
    25 Sep 2012, 05:53 PM Reply Like
  • Tack
    , contributor
    Comments (13768) | Send Message
     
    Tesla is going to wind up exactly like another innovative automobile company of its day, which coincidentally also began with the same letter of the alphabet, Tucker.
    25 Sep 2012, 08:49 AM Reply Like
  • marpy
    , contributor
    Comments (884) | Send Message
     
    Based on the price of the product, limited use, and the fact that Toyota (market and technology leader) is moving in other directions IMO this company is headed for the scrap heap! JMO
    25 Sep 2012, 10:05 AM Reply Like
  • me2dumb4college
    , contributor
    Comments (40) | Send Message
     
    Solid product, high demand... yes they are tight on cash, but it's turning a nice profit per vehicle and Obama looks to be the winner of the next election, which means a greater push for alternative energy...
    25 Sep 2012, 11:23 AM Reply Like
  • Tack
    , contributor
    Comments (13768) | Send Message
     
    "Alternative energy."

     

    Where do folks think electricity comes from -- especially the huge amounts that would be required to power a nation of electric vehicles? It grows on trees?

     

    There exists some kind of puerile, politically-correct fantasy that electric power is "clean," when the reality is that it requires oil, coal and/or nuclear plants to be generated in quantity.
    25 Sep 2012, 11:34 AM Reply Like
  • Randy Carlson
    , contributor
    Comments (1732) | Send Message
     
    @ Tack,

     

    No, not so much. Putting 5kW of solar panels on your roof (or on a Tesla Supercharger Station) will generate the entire 30 kWh/day of electric energy consumed by a typical Model S, for at least 25-30 years, for just a fraction of the cost of the vehicle.

     

    If it makes the practical reality of solar power easier to understand you might try thinking of solar as "Remote Fusion Power". It sounds more 'industrial', doesn't it?
    25 Sep 2012, 12:00 PM Reply Like
  • surfnspy
    , contributor
    Comments (415) | Send Message
     
    I'd put a well in my back yard before I'd put solar panels on my roof. They're hideous.
    25 Sep 2012, 12:12 PM Reply Like
  • moreofthesame
    , contributor
    Comments (743) | Send Message
     
    Exactly. Generating the electricity is no problem at all by using PV Panels. The problem is the storage, Batteries are the weak link in the equation. Batteries as energy storage on a large scale do not work, it's been proven for the last 100 years.

     

    btw, I love the "remote fusion power" :) people do have a hard time wrapping their head around the fact that energy in abundance is hitting us nonstop from the sun.
    25 Sep 2012, 04:01 PM Reply Like
  • Uncle Rob
    , contributor
    Comments (43) | Send Message
     
    The thermal effeciency of an ICE powered car is less than 20%. Large fossil fuel power plants are in the 40% range. Even if your power is coming from coal, you are still ahead with an electric car.
    25 Sep 2012, 05:37 PM Reply Like
  • rgwireman
    , contributor
    Comments (3) | Send Message
     
    I recal this same type of comment said in another way. Where you supposed to get gas for that horseless carriage? Who you gonna call on that fandangled phone thing?

     

    Tesla cars are a major leap. Electricity in the future will be generated by more than just oil, coal and nuclear. We are already watching the growth of production through natural gas, solar and wind. Geothermal will arrive and new technologies will emerge.

     

    Innovation requires forward thinking.
    25 Sep 2012, 10:13 PM Reply Like
  • me2dumb4college
    , contributor
    Comments (40) | Send Message
     
    The batteries are the largest issue with electric vehicles, for sure. Ultimately, I think the scaling will drive down these costs, thus increasing margins for Tesla.
    3 Sep 2013, 03:08 PM Reply Like
  • GaltMachine
    , contributor
    Comments (1154) | Send Message
     
    me2dumb,

     

    "but it's turning a nice profit per vehicle"

     

    Can you explain this comment?

     

    They lost over $100 million last quarter.
    25 Sep 2012, 11:47 AM Reply Like
  • Clayton Rulli
    , contributor
    Comments (2751) | Send Message
     
    Perhaps he means a profit before any expenses? LOL
    25 Sep 2012, 03:26 PM Reply Like
  • Ross F
    , contributor
    Comments (62) | Send Message
     
    What is this Groupon?
    25 Sep 2012, 05:46 PM Reply Like
  • me2dumb4college
    , contributor
    Comments (40) | Send Message
     
    The profit/loss per vehicle is completely dependent on how you allocate the fixed costs and whether you are talking about gross margins, net margins, operating profit, etc. etc. Elon has committed to the market that Tesla will make 25+% gross margin on every car.

     

    The break-even point for Model S is something around 8000 cars per year (according to Elon).

     

    In addition, the majority of the costs are with the large Li-Ion battery, which when scaled production goes up, prices will go down, which most likely will lead to larger margins. That's not even accounting for the new technical developments being made.
    3 Sep 2013, 02:50 PM Reply Like
  • markjaffee
    , contributor
    Comments (6) | Send Message
     
    Tesla is trying to do something very difficult; scale their production capacity up to meet their demand. This is not a task that can be accomplished in the few seconds it takes to trade a stock. All of the stock traders out there who drive the stock up, down and sideways, will not aid Tesla. They only make a lot of noise. Tesla is leading the way to a potential solution to our addiction to coal, oil and gas; those pesky little habits that are contributing to global warming. Give them sometime to execute their plans to scale production capacity. If they're successful, they will sell all the cars they can make; and turn a handsome profit as well.
    25 Sep 2012, 05:00 PM Reply Like
  • Ross F
    , contributor
    Comments (62) | Send Message
     
    Actually time makes the stock go sideways. How are they going to "solve" our "problem" of coal? Is it by increasing demand of the grid that is largely powered by coal? Don't forge that Tesla is dependent on the pesky traders and this pesky thing called a market to provide the dollars they need to try to live out their pipe dream. So yes they do aid Tesla. In fact, without them Tesla would go bankrupt. People always forget that the market is where the money comes from.
    25 Sep 2012, 05:50 PM Reply Like
  • markjaffee
    , contributor
    Comments (6) | Send Message
     
    OK. I'm a retired program manager from HP. I spent my career in the software industry. I've been a software developer, a trainer, a course developer, a technical education manager and a program manager.
    Most of my technical experiences have been with Tandem Computers; the inventor of NonStop computing. I am also an environmentalist and a believer in renewable energies. I am hopeful, that in the forseable future, we will find a way to make the shift from fossil fuels to renewable ones; at a scale that will slow and hopefully reverse the affects of global warming.
    25 Sep 2012, 05:00 PM Reply Like
  • D. McHattie
    , contributor
    Comments (1844) | Send Message
     
    I hear you, markjaffee. I and many others care about the planet as well as about economic justice.

     

    Which is why it is so frustrating to see taxpayer money going towards this boondoggle that only makes toys for the rich.

     

    It is also particularly galling to see this consumption of scarce resources masquerading as conservation.

     

    Do people consider their televisions and their air conditioners to be 'green' because they run on electricity?

     

    A 3,500 pound personal passenger vehicle is not green and is not the answer.

     

    Much as we may try to deny it, the future is public transportation, bicycles and electric bicycles.

     

    Everyone benefits from better and more efficient public transportation whereas only a high net worth, high income demographic can benefit from a $50k tesla.

     

    The money the government spends on tesla is money It didn't spend on public transportation or bike lanes.

     

    Tesla, is a waste of energy on many levels.

     

    D
    25 Sep 2012, 08:28 PM Reply Like
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