Tesla Model S Is Doing Very Nicely
Wow, I sure wish I had bought some stock in Tesla when the ultra-sexy Model S came out. The company, though still not profitable, looks very close to turning that corner, and the market knows it.
In terms of the overall issue of the EV adoption curve, it’s hard to know where we are – and the success of a $100K car — of any type – does little to answer that question. Having said that, I would have to think that all the people spending that type of loot on a high-end BMW, Mercedes, Porsche, etc. would be moved to consider the Tesla, not only for its styling, but for its performance. The base 85-kW-hr powertrain delivers 362 hp and 325 lb-ft of torque, while the performance version makes 416 hp and 443 lb-ft.
Trust me: that level of torque gets your attention in a very big way. The first time I nailed the accelerator in a recent test drive I was terrified; it felt as if the car was about to flip over backwards.
Craig, As a strong EV supporter, I am very worried about Tesla. On or around May 10th, Tesla will report actual numbers for 1st Quarter. I personally do not see how they can be profitable based on 4th quarter results. They lost $90M in 4th quarter as the neared full production. Their R&D and Sales and Marketing expenses were almost as large as their total revenue and that must be adjusted by cost of good sold. What was actually written by Tesla was that they revised their profitability upwards. The press and media who are drinking the Tesla Kool-aid interpreted this to mean they were profitable. I think they will lose at lease $50M in first quarter, maybe more. I see no way they can be profitable with out-of-control costs. And they have yet to start paying off their huge long term debt.
I think what Musk did is highly illegal and that was to Tweet misleading info and pump the stock price up so early IPO buyers (his early investors) could get out with a reasonable profit.
When Tesla goes bankrupt and they will, this event will drag down the whole EV market as the press and media have a field day beating up EV’s in general. It will be a sad day.