Tesla expects more challenging 2014 as it sets higher sales goals

Article by Eugene Conan, on February 26, 2014

Tesla Motors closed 2013, its first year as a full-fledged carmaker, posting $74 million in net losses on the back of $2 billion in revenue and 22,477 cars sold. Tesla is expecting a more challenging 2014 as it seeks to quicken production, add new offerings and expand globally. Tesla is seeing its cost structure increasing "significantly" as its r&d and production-line costs for the Model X crossover are starting to come online.

"We do need a new final assembly line, which we hope to transfer to in the third quarter or thereabouts," Tesla chief executive Elon Musk remarked last week during a conference call with analysts. "Also there's a new [body-in-white] assembly facility ... where the Model X is built."

He disclosed that they would have to build a separate line at its Fremont site in California when its smaller Gen III vehicle arrives in a few years.

According to Musk, a capital increase "would be a good idea" to finance construction of a plant to supply lithium ion batteries. "The car business is truly staggeringly big -- $2 trillion in new-car sales," Musk said, adding: "It's a pretty big ramp ahead in terms of reinvestment." In the fourth quarter of 2013, Tesla posted $16 million in net loss on $615 million of revenue.

Comparisons with figures in the fourth quarter of 2013 are difficult since Tesla had just started building cars in pilot volumes. As is its custom, Tesla posted a second set of results that don't conform to generally accepted accounting principles – showing $46 million in fourth-quarter profit. The measurements, however, get rid of certain expenses, lease accounting and employee stock-based compensation.

Topics: tesla motors, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Mercedes-Benz Vans, one of the world’s top van makers, has just launched adVANce, which is their strategic transport industry initiative for the future. With this, the division analytically considers its...
by - September 29, 2016
In 2007, when Nissan first introduced the R35 Nissan GT-R at the 2007 Los Angeles Auto Show, the car carried with intense power and a price tag of $78,000. Up...
by - September 29, 2016
Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016