JasonA wrote:I just love all the haters... and we know who you are...Is Tesla losing $4000 per car sold? Nope, it’s capital investment for future sales
Trolls are gonna troll..
Zythryn wrote:It IS misleading though.
Saying Tesla is loosing $4000 for every car sold implies the cars are sold at a loss.
At first glance, many that don't know the details, would think, "they should sell fewer cars until they can sell them at a profit".
Where the reality is they should sell as many cars as they can to make more profit.
A less misleading statement would be, "Tesla makes 250 Million selling cars, and looses 150 Million dollars" (replace numbers with the real ones of course).
This is Tesla. When does Musk crash?
...Tesla Motors, the loss making manufacturer of electric cars, has announced plans to sell an additional 2.1m shares to its investors, to raise $0.5bn in cash.
After raising the cash to help build a so-called “gigafactory” Tesla will have 130m shares in issue. At $245 per share the company is worth $32bn, about nine times annual sales. It expects to deliver as many as 55,000 cars this year.
Tesla has aspirations to be a significant manufacturer of batteries, as well as introducing a third model of electric car, which requires investment, about $1.5bn for this year alone, it predicts. We previously calculated Tesla had spent $3.1bn on capex and research and development up to the end of 2014, which works out to about $40,000 per car sold, so far.
At the end of June the company had access to $750m in bank funding lines, but has also said it may raise cash when the opportunity arises. Shareholders appear to like the opportunism, and the mild dilution, bidding up the price of the stock by 2 per cent, at pixel.
For anyone pleased to see Mr Musk investing alongside them, may we draw your attention to his remuneration. The CEO, PA & COB was granted 5.3m stock options in August 2012, vesting in ten “tranches”. As of the end of June, six of the tranches had been approved, and a further three were considered probable to be achieved.
Some might suggest the Tesla stock price is far more important to Mr Musk’s fortune than the impact of $20m spent in a symbolic show of support to the latest fundraising.
Indeed, according to the most recent quarterly...
The possibility of margin calls causing Mr Musk to sell stock, in the event of a share price decline, is listed as a risk factor by Tesla....
Tesla Motors Inc. on Friday boosted the size of its stock offering, unveiled just a day earlier, by more than $140 million...
The new round of fundraising that suggests the cost of disrupting the global auto industry with its pricey electric vehicles is more expensive than Chief Executive Elon Musk initially thought...
While the Palo Alto, Calif., auto maker consistently has expanded revenue during that two-year period, its net losses have deepened. And the company continues to burn large sums of cash on capacity expansions and new products.
cwerdna wrote:dm33 wrote:cwerdna wrote:Do also keep in mind that although Tesla is a very new car company compared to the "Big 3" in the US in and Japan, they were founded in 2003 (http://www.teslamotors.com/about).
And GM loses a bunch of money on every Volt sold despite having recently been bailed out.
But the Volt is just a tiny drop in the bucket vs. the rest of their US vehicle sales.
And per http://www.gm.com/content/gmcom/home/co ... eases.html, GM had net income of (positive) $1.1 billion last quarter.
Per http://media.gm.com/content/dam/Media/g ... y-2015.pdf from http://www.gm.com/content/gmcom/home/co ... ction.html, in the US, YTD, 6,935 Volts were sold YTD out of GM's 1.78 million vehicles sold YTD in the US.
lorenfb wrote:Should be interesting to see how the stock market responses on 9/30 which is the end of Q3 and when
the most recent "slip date" was announced for Model X deliveries. Previously the deliveries were to begin
within Q3. But now that we're half way through Q3, it's now the last day of Q3. Luckily for Elon, 9/30 is
the middle of the week and not on a Sunday.
While I take your point, Tesla Motors also has another business: selling Powerwalls. I haven't paid much attention to it, but my impression is that it is expected to be more profitable that selling cars.dm33 wrote:Thats exactly why Tesla needs to spend lots of money; to build up a business. GM has mountains of income so it can throw away money in electric cars even if it doesn't want to build them.
Tesla has to build good electric cars because thats their entire business...
Yes. As one of the GM shareholders who had my position wiped out in that bankruptcy, I get very irritated when the new GM crows about its profits, some of which came from my pocket. I'm not a GM fan, to put it mildly......No one said its easy to build a car company. GM has a 107 year head start, having been founded in 1908. The US Government helped bail GM out but helping dismiss its debt and obligations to former employees in 2009 when GM went backrupt.