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.

If you liked the article, share on:

Topics: tesla

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019