Tesla Motors is "highly confident" of attaining sales of 20,000 electric vehicles in 2013, according to CEO Elon Musk. He added that with an annual order base of just 8,000 units, Tesla would be able to achieve a positive cash flow. During the annual meeting of Tesla’s shareholders at the Computer History Museum in Mountain View, Calif., Musk said that the company is expected to generate a 25% gross margin, with an operating margin in the low to mid teens very soon.
Tesla posted an $89.9 million net loss in the first quarter compared to its loss last year of $48.9 million. It appears that the expenses of preparing the Model S sedan to production had piled up.
Its revenue in the first quarter declined to $30.2 million, from $49 million in 2011, due to the impact of discontinuing Roadster sales in North America. Musk said that 2012 is the "year of two halves," with the Model S launch regarded as the dividing line, according to Autonews.
About 90% of Tesla’s revenue this year stems from the sedan. Tesla anticipates that its full-year revenue will be between $560 million and $600 million. Just last week, Tesla completed the delivery of its first two Model S sedans.
Deliveries on a wider scale will start this month. Model S pricing is from $57,400 and could rise up to $105,400 with longer-range and higher-performance battery packs. A $7,500 federal tax credit could be applied to these vehicles. Musk said that a 45-day nationwide road show begins in June.
Tesla will begin to sell the Model S in Europe and Japan in six months. It will be offered to the Chinese market in 2013. Tesla will start to produce its right-hand-drive models in mid-2013. Musk said that Tesla is hoping to achieve sales of 35,000 in 2014, boosted with the arrival of the Model X crossover.