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."

Topics: tesla

If you liked the article, share on:


Login or Create new account to add a comment!


Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016
Wondering what the Fantasy Gift in Neiman Marcus’ annual Christmas Book this year could be? If you are generous enough to give others or yourself this special present, then behold...
by - October 24, 2016
It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016