Tesla cuts revenue forecast to $400-$440 million from $550-600 million

Article by Anita Panait, on September 27, 2012

Tesla Motors Inc. has slashed its revenue forecast for the full-year 2012 due to the slower-than-expected rollout of its Model S sedan. The news sent the electric car maker down by nearly 10 percent. Tesla said in a filing with the US Securities and Exchange Commission that it is now expecting its full-year 2012 revenue to be in the range of $400 million to $440 million, which is substantially lower that its previous revenue outlook of $560 million to $600 million.

Tesla disclosed in the SEC filing that it has methodically increased its Model S production at a rate slower than it had earlier anticipated.

The electric car maker noted that certain suppliers have experienced delays in meeting its demand as the company continues to focus on supplier capabilities and constraints.

Tesla has divulged that it expected the Model S, with a starting price of $57,400, to account for 90 percent of the its revenue for 2012. The electric car maker has plans to roll out its Model X crossover utility vehicle in 2014, followed by a smaller sedan dubbed Gen III in 2015.

Morgan Stanley analyst Adam Jonas, in a research note to clients last week, described the slower-than-expected rollout of the Model S as "the worst-kept secret in the industry."

He called the concerns over the slow rollout as "overdone," and upgraded his rating on Tesla’s stock to "overweight." Jonas said in the note that they think Tesla has the right idea, which is to “get it right the first time." He added that the efficacy of the product is “what matters most."

A true product of evolution in automobile engineering, Tesla Model S perfectly combines performance, efficiency and safety as the first sedan that is fully electric. It has surely gained the distinction as the 21st century car with the best safety standards, the longest range, and top-of-the-line software that is consistently upgraded.

Tesla Build and Architecture

Tesla Model S improves performance and handling by putting the battery on the floor thus resulting to a low gravity center and decreasing rollover risk. It also has a crumple zone that is more extensive than other sedans to sustain the energy created by a front end impact.

Safety

Among the safest vehicles on the road, the Tesla Model S owes the majority of its safety features to the distinctive electric drivetrain that lies under the car. It is designed with a reduced center of gravity, thus lowering the risk of rollover. The safety reputation of the Model S is also proven by its 5-star safety rating from Euro NCAP and NHTSA as well as the car with the lowest possibility of harm and injury to occupants when studied in the US.

With ordinary yet aggressive safety features, the Tesla Model S continues to enjoy its reputation as the safest vehicle globally. It features automatic emergency braking, blind spot detection, collision warning, traffic-aware cruise control, and lane departure warning.

Electric All-Wheel Drive System

The Tesla Model S regulates torque in both the rear and front wheels with its two motors. The outcome is an unmatched traction control that is ideal for all road and weather conditions. In contrast to the traditional all-wheel drive cars that increase traction at the expense of fuel efficiency, Tesla’s system does boost efficiency.

Topics: tesla

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries