http://finance.yahoo.com/news/insight-tesla-burns-cash-loses-110535941.html

By Joseph White and Paul Lienert
Related Stories

DETROIT (Reuters) - It's crunch time for Tesla Motors.

The Silicon Valley automaker is losing more than $4,000 on every Model S electric sedan it sells, using its reckoning of operating losses, and it burned $359 million in cash last quarter in a bull market for luxury vehicles. The company on Wednesday cut its production targets for this year and next. Chief Executive Elon Musk said he's considering options to raise more capital, and didn't rule out selling more stock.

Musk has taken investors on a thrill ride since taking Tesla public in 2010. Now he's given himself a deadline, promising that by the first quarter of 2016 Tesla will be making enough money to fund a jump from making one expensive, low volume car to mass producing multiple models, and expanding a venture to manufacture electric power storage systems.

Tesla's shares fell almost 9 percent on Thursday and slipped another 2 percent on Friday as investors and analysts weighed the risks of Musk's ambitious plans for expanding Tesla's auto and energy storage businesses. Tesla had just $1.15 billion on hand as of June 30, down from $2.67 billion a year earlier.

Automakers consume cash to pay for assembly line equipment, including metal dies and plastic molds, as well as testing to meet safety and emissions standards. A typical new car can cost $1 billion or more to engineer and bring to market.

Established automakers such as General Motors Co and Ford Motor Co have amassed far larger cash cushions as they've rebuilt balance sheets battered by the 2008-2009 recession. GM, restructured six years ago in a government funded bankruptcy, has targeted cash reserves of $20 billion and had more than $28 billion in cash equivalents as of June 30.

To be sure, GM sells more than 9 million vehicles a year, while Tesla plans to build between 50,000 and 55,000 cars this year. Tesla, most of whose cars are built to order directly, delivered 11,532 cars in the second period and said it had an operating loss of about $47 million, for an operating loss per car of about $4,000.

Tesla's narrower margin for error is just one more way in which it is different from its century old rivals.

The company said it plans $1.5 billion in capital spending this year, mainly to launch its Model X, battery powered sport utility vehicle with eye-catching, vertical-opening "falcon wing" doors. Tesla reported $831 million in capital spending during the first half of the year, indicating it will spend roughly another $700 million.

During the second quarter, Tesla said operating costs and research and development spending rose, while average selling prices for the Model S lineup, which starts at $70,000 before federal and state electric vehicle tax breaks, fell 1 percent as the mix of sales shifted to less expensive models and a strong dollar hit revenue generated overseas. The Model S comes in several different versions, ranging in price up to $106,000 or more, depending on options.

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How the hell are you losing 4K on each car that cost 70K to 100K?

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

All that factory for so few models. Namely one.

wish I bought that Shit early tho...

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

>....................
>
>How the hell are you losing 4K on each car that cost 70K to
>100K?
>
>

It's not the car, it's the technology. Tesla has the chance to uproot entire industries. Cost will go down once they scale up and the technology applications will be huge.

niggas live in bubbles and congregate in silos


I inhale imagination and breathe wonder

fuck you.

is it due to the prison labor?

or is it just a Monday thing?

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

Rich getting richer. It represents everything that's currently wrong with the US economy. Fuck that joint.

fuck you.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

I know middle class geeks need something to which to aspire. A carrot to chase. Word up. Get your fantasy.

fuck you.

tesla is everything right with the u.s economy, right now

if they can achieve significant improvements in battery storage capacity,
currently the main limitation in solar power potential
then he's going to significantly improve my #thirdworldliving experience
its already amazing how solar panels have made such a difference....

and perhaps you are not as concerned with the environment, but for some of us the notion of carbon zero energy
is adequate

perhaps spaceX is toys for rich people
but even improving/making space travel cheaper will have an impact on innovation.

.
http://perspectivesudans.blogspot.com/
i myself would never want to be god,or even like god.Because god got all these human beings on this planet and i most certainly would not want to be responsible for them, or even have the disgrace that i made them.

Great.

Fuck Tesla.

fuck you.

Fuck, Tesla.

.
http://perspectivesudans.blogspot.com/
i myself would never want to be god,or even like god.Because god got all these human beings on this planet and i most certainly would not want to be responsible for them, or even have the disgrace that i made them.

fuck you.

there is a tesla factory up the street from me and the shit
caught fire just a few days ago.

New technology is always expensive...

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

That's pretty standard.

When Ford released the Model T it cost $825, getting on for 3x the average household income (between $200 and $400 in 1909) but was still considered the world's first "everyman" car.

The Tesla Model S is $70k which is less than 1.5 times the current average household income ($50.5k)

The hit taken by early adopters is normally used to develop factories and new designs which will eventually deliver affordable electric motoring to the masses... though Tesla seem to be trying harder than most to extend the product's reach if they're absorbing a loss in that price as well.

It isn't shocking that new things cost more than old things.

_______________________________

))<>((
forever.

Streets won't let me chill.

Fuck everything that joint is about.

fuck you.

When it comes to electric options available right now, they're pretty lame. I'd rather have a Tesla than a Leaf, based solely on style and tech.

Streets won't let me chill.

Fuck Tesla.

fuck you.

The technology in the car, dash is what got me.

https://digife.com

**********
"Everyone has a plan until you punch them in the face. Then they don't have a plan anymore." (c) Mike Tyson


"One of the most important things in life is what Judge Learned Hand described as 'that ever-gnawing inner doubt as to whether you're

fuck you.

.
http://perspectivesudans.blogspot.com/
i myself would never want to be god,or even like god.Because god got all these human beings on this planet and i most certainly would not want to be responsible for them, or even have the disgrace that i made them.

Fuck Tesla.

fuck you.

.
http://perspectivesudans.blogspot.com/
i myself would never want to be god,or even like god.Because god got all these human beings on this planet and i most certainly would not want to be responsible for them, or even have the disgrace that i made them.

someone had a bad weekend.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

fuck you.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

remember life pre Model S?

We were leaning hard on the hybrid car model, anytime the concept of an all electric car would come up people would not believe in the viability of the project
manufacturers want to keep us on the gasoline tity but the model S was an example where people voted with their dollars.

***********************************************************
https://soundcloud.com/swageyph/yph-die-with-me

Fuck Tesla.

fuck you.

if I can get a 35k car and ride from NC to Cali without spending a cent in fuel... well that will change the fucking game completely.

There is a Tesla dealership opening 5 miles from my house.

I'm definitely interested.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

Sure.

fuck you.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

the business model is to use high end niche vehicles (and powerwall) to fund the scaling necessary to produce more vehicles at a lower price point. so model s, then model ex, then model 3. its genius. i, for one, look forward to a $35k electric car.

you seem mad for no reason here.

it's toys for tech nerds.

fuck 'em.

fuck you.

>it's toys for tech nerds.
>
>fuck 'em.

___________________

Mar-A-Lago delenda est

fuck you.

------------------
One Hundred.

Those bitches are profiting from prison labor by payin inmates $0.93 per hour.

Fuck em

ionno, I guess they should make more and I feel bad for those who are locked up on trumped up charges but.. yeah, it's prison.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

prisoner or not. They're getting compensated one-tenth of the state’s current minimum wage in 2013 of $8.95 per hour.

Not to mention he's a cheap ass billionaire who'susing incarcerated "contractors" in order to get around local hiring requirements of a lucrative taxpayer funded project.

So fuck them all!

I have a nephew doing Fed time. He had a great job making 60K and he decided he would do other things instead.

he chose to make pennies on the dollar.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

Outside of cats that are falsely imprisoned, my heart doesn't bleed for cats that purposely did dirt that got them hemmed up. With exception of torture, prison ain't supposed to be fair and comfortable.


Since 1976

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

i mean losing money per car does not necessarily mean anything

it would be good to know if this means the company is not financially stable or..
otherwise, to me this article hasnt really provided any information

.
http://perspectivesudans.blogspot.com/
i myself would never want to be god,or even like god.Because god got all these human beings on this planet and i most certainly would not want to be responsible for them, or even have the disgrace that i made them.

and they keep missing deadlines...

but I have no idea if they are pressed for money.

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

i do think they will probably make loses for some time to come
they do need to figure out how to make cars cheaper and the batteries last longer

but *this* much innovation- hard to see how it wont be profitable

anyway, im hopeful
*we* need that solar battery capable of powering a small city

.
http://perspectivesudans.blogspot.com/
i myself would never want to be god,or even like god.Because god got all these human beings on this planet and i most certainly would not want to be responsible for them, or even have the disgrace that i made them.

tesla isn't selling that much (relatively) and doesn't have multiple models sharing platforms cutting R&D cost yet
this is a long game for them and most investors know that

~~~~~~

can't wait for the dealership to open up so I can go in and bother some people.

we got Google fiber coming and i would love outfit my home with that powerwall if it makes sense long-term.

just hoping this company doesn't burn thru it's cash.

****************
TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

______________________________________

Everything looks like Oprah kissing Harvey Weinstein these days

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TBH the fact that you're even a mod here fits squarely within Jag's narrative of OK-sanctioned aggression, bullying, and toxicity. *shrug*

http://electrek.co/2015/08/13/tesla-announces-a-500-million-common-stock-offering-and-elon-musk-will-increase-his-stake-in-the-company/