• Nov 10, 2010
Tesla Motors is happy with its third quarter results, which boast a 10 percent increase in revenue from last quarter's $28.4 million to $31.2 million, an improved gross margin of 30 percent from 22 percent previously, and a net loss of $34.9 million compared to its second quarter figure of $38.5 million. While an improvement from just a quarter ago, the large net losses this year stem mostly from development costs associated with the upcoming Model S sedan, which is planned for launch in 2012. R&D costs alone shot up from just $1.3 million in last year's Q3 to $26.7 million this year. According to CEO Elon Musk:
We are very pleased to report steady top-line growth and significant growth in gross margin, driven by the continued improvement in Roadster orders and our growing powertrain business. Roadster orders in this quarter hit a new high since the third quarter of 2008, having increased over 15 percent from last quarter. While some of this is due to seasonal effects associated with selling a convertible during the summer months, we are pleased with the global expansion of the Roadster business and the continued validation of Tesla's technology leadership position evidenced by our new and expanding strategic relationships.
The Palo Alto, California-based electric carmaker continues to work hard in the fourth quarter. October was a busy month that included the company's purchase of the old NUMMI manufacturing plant in Fremont, CA and the signing of a $60 million development deal with Toyota for the electric version of the RAV4. In November, Panasonic invested $30 million in Tesla stock. With the company's strategic partnership with Daimler to develop next-generation battery packs on track, the planned launch of the more affordable Model S in 2012, and the continued growth of incentives being offered by countries around the world for the purchase of electric vehicles, Tesla may just yet prove its doubters wrong.

[Source: MarketWatch]


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  • 7 Comments
      • 4 Years Ago
      Don't worry, once they turn a profit their newly-hired UAW workforce will be there to make sure "they get their fair share."
        • 4 Years Ago
        The UAW's idea of fair share is passing the liquor bottle around during lunch.
      • 4 Years Ago
      Tesla really needs to get the S out the door. the revealed the thing almost 4 years ago. Besides the S is a much more mainstream type of car so they could easily start generating profit once it lands on dealer lots, especially if they can keep the price at around $40-$50K with good performance.
        • 4 Years Ago
        The car being more mainstream and at a lower price point could help generate *volume*. It will not necessarily generate profit.

        I agree with you that generating volume with the Model S is what they need. Hopefully, their business plan and operations is set up to generate a profit off of that volume.
      • 4 Years Ago
      These EV companies are like the influx of dot com companies all over again.

      All you hear about is revenue -- never mind the fact they can't make a dime of profit.

      Until Tesla, Fisker et al. can present a solid business plan and make some money (devoid of artificial revenue via government subsidies), don't tell me how "successful" you are.
      • 4 Years Ago
      How is it that Telsa can spend less than 100Mil developing the model S but its costing GM over 1 bil to roll out the Volt? And Telsa had to buy a factory... GM has plenty of factories...
      • 4 Years Ago
      Huh? Tesla can't make money selling a low-volume, high-priced sports car? Who saw this coming?