Tesla secures $40 million in financing
Click above for a high res gallery of the Tesla Roadster v1.5
Despite recent negative news surrounding Tesla Motors, the all-electric automaker has just secured $40 million in financing to move forward with ramping up production of its battery-powered sports car, the Tesla Roadster. It was just last month when Tesla was unable to secure a $100 million investment round and was forced to cut nearly 25% of its work force. The failure to fund also slowed work on its second model, an all-electric sedan known as the "Model S." The San Carlos, California-based automaker has more than 1,200 orders for the $109,000 roadster, but has delivered just over 50 to date. With early transmission problems solved and plenty of cash on hand, the high-profile automaker seems to have finally found itself in a position to zip forward.
Gallery: 2009 Tesla Roadster v1.5
[Source: Automotive News, subs. req'd]
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Reader Comments (Page 1 of 1)
xcrunk 3:35PM (11/03/2008)
"has delivered just over 50 to date"
Where is the money going??
These guys were incorporated in 2003.
5 years and only 50 cars to date?
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Joel 3:51PM (11/03/2008)
R&D, Advertising, Overhead, etc.
Todd 3:53PM (11/03/2008)
You can't recruit superstars like Franz Von holzhausen without big $$$.
happy_penguin 4:01PM (11/03/2008)
Tucker.
DasBoese 3:54PM (11/03/2008)
The money has gone into R&D, crash testing, certification, legal (patent) costs, setting up production facilities, paying people.
They've just started production after 5 years of development, which is the usual R&D time for a new car. In the case of Tesla, 5 years are actually pretty exceptional when you think of the technical challenges they had to overcome on a very limited budget.
Also, keep in mind that the people who have ordered one have just paid a deposit, not the entire $109k.
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Jared 4:00PM (11/03/2008)
Yes, the time frame is very exceptional when you consider that the vast majority of the parts in that car are not new.
And btw, car companies no longer take 5 years to design a car. The norm is 3 years.
DasBoese 4:03PM (11/03/2008)
That was meant as a reply to xcrunk XD
Anyway, good to sey they've overcome their funding problem and can march ahead into full scale production (and profitability).
Jon 1:28AM (11/04/2008)
What I fail to understand is why they began working on a new model when they have yet to even begin delivering the original model.
jake 3:29AM (11/04/2008)
@Jared
3 years is not for a brand new model, just for a model refresh. 5 years is more like it. Also they had to open a brand new car company.
People keep thinking it's as easy as dropping an electric motor off the shelf onto a Lotus Elise, but it's definitely not that easy. You guys are thinking it's more like the conversion shops like Hybrid technologies. Conversion shops don't have to deal with as much testing and federal safety regulations since they just convert a car rather than sell a new car.
Just look at the Tesla quarter mile news, it gives an insight into the engineering that went into getting the performance. Here's a MotorTrend article. The refinement and driving experience isn't typical of a simple conversion:
http://www.motortrend.com/roadtests/convertibles/112_0810_2009_tesla_roadster_one_speed/index.html
Another thing is the battery pack which they designed and built without it being finished by an outside supplier. All the large automakers just simply source it from suppliers ready to go.
Anyways just happy they are moving along, because I want to see Model S.
CarbonBlack 4:57PM (11/03/2008)
The type S is decent looking (i have a friend on the inside), but they could have done alot better! I can't get past the rear door's window and the maserati inspired headlights.
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Harrison 5:15PM (11/03/2008)
Well I am glad they got some money. Hope they can stay afloat.
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brent 1:23AM (11/04/2008)
"Secured financing" is just another way to say that Elon Musk opened up his wallet yet again.
Harrison 5:34AM (11/04/2008)
Ha ha, seems secured financing doesn't sound so good then.
ugg.tryptophan 6:14PM (11/03/2008)
i really hope tesla doesnt die
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trevor 6:25PM (11/03/2008)
knowing how poorly run this company is, i wouldnt be surprised if they blew it, man everytime i read about these guys in the paper it is usually for problems than it is for good business sense or innovations.
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