Tesla Posts Growing Loss, Signs Deal With Mercedes
The Tesla Roadster (right) has impressive acceleration and handling, you also never have to buy gas for it, but at more than $100,000 it’s pretty expensive.
Their current one-car offering and the big price tag didn’t help the company. They posted a $65.1 million net loss in the past quarter, up from the $34.9 million they posted last year.
Past failures aside, it is still be early to write Tesla off. Despite losing money, they struck a deal with Daimler AG to supply them with a powertrain for their electric vehicles.
“Even though they’re losing money, the fact that their batteries are attractive to other automakers gives them some revenue and some credibility,” said Alan Baum, an industry consultant at Baum & Associates in Michigan in an interview with Automotive News. “They are catching a few breaks in the sense that people want to do business with them.”
In addition to selling parts to other manufacturers, Tesla’s own Model S sedan, new for next year, is already sold out. The more practical iteration of their take on electric transportation also costs about half as much at $50,000 as the performance-oriented Roadster.
CEO Elon Musk said in an October 28 interview on Bloomberg TV that the company actually expects to earn a profit in 2013.
Musk remains optimistic that the company is gaining from experience in the market that will help when the Model S is released.
Their third-quarter revenue exceeded analyst expectations, reaching $57.4 million instead of $46.4 million.
GALLERY: Tesla Model S
[Source: Automotive News]
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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