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Can the Tesla Model S be profitable at $57,400? Not according to these calculations...

Sebastian Blanco — Wed, 29 Apr 2009 19:57:00 EST

Filed under: Hybrid, Sedan, Green, Plants/Manufacturing

Tesla Model S - Click above for high-res image gallery

Tesla Motors' charismatic frontman, Elon Musk, will be showing up on the Late Show with David Letterman tonight to dazzle America's TV audience with his gorgeous all-electric sedan. Tesla says that when the Model S goes on sale at an undefined point in the future, the cost for the base model will be just under $50,000 - $49,900 to be exact - after a $7,500 government tax break. Business Insider has a word for that: Horsefeathers.

BI teamed up with Mark Boyadjis, an auto analyst at iSuppli, and they did some math based on actual numbers used in the auto industry and a lot of educated guesses. The result? They didn't exactly find a lot of room for profit if the car sells for $57,400. Their math is based on at least one error - they say the replacement battery for the Roadster is $36,000, but that's a carry-over mistake from Edmunds - it's actually $30,000. Still, that's the equivalent to the base price of an entire "near luxury" sedan - one that conventional automakers have trouble making margins on. That big, sexy touchscreen? Estimated to cost $4,000. Add everything from chassis and body panel costs to in distribution, marketing, further engineering, and lest we forget - building a factory, and Musk's price target starts to look more and more implausible.

BI has a good point here - Tesla needs to be careful with their pricing predictions. The ambitious startup made big financial mistakes when pricing the original Roadster - which didn't make everyone happy - and there's not a lot of room left to goof up a second time.

Gallery: Tesla Model S

[Source: Business Insider]

Can the Tesla Model S be profitable at $57,400? Not according to these calculations... originally appeared on Autoblog on Wed, 29 Apr 2009 19:57:00 EST. Please see our terms for use of feeds.

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Tesla confirms Model S sedan, 225-mile range and $60k

Damon Lavrinc — Mon, 30 Jun 2008 15:28:00 EST

Filed under: Hybrid, Government/Legal, Green

California Governator and (soon-to-be) Tesla Roadster owner, Arnold Schwarzenegger, addressed the seething throngs of media types at Tesla's San Carlos, California facility. The topics of conversation centered on new incentives for Tesla to continue its production of vehicles in the Golden State, specifically the start-up's second vehicle, codenamed the Model S, which according to Tesla, get 225 miles on a single charge and cost $60,000. Tesla did not officially announce when the new model would go on sale, nor would it say where in California the "multi-use sport sedan" would be produced.

The incentive for Tesla to remain in California, rather than move production of the sedan to New Mexico (discussed last year), is part of the CAEATFA program that was approved last Wednesday. The initiative exempts automakers from paying sales and use tax when they purchase manufacturing equipment to build electric vehicles. That's expected to save automakers - and Tesla specifically - millions of dollars when the company invests in building a new plant in California. A Schwarzenegger press conference wouldn't be complete without a lame quote from his erstwhile movie career, and the Governor didn't let us down, saying that he was disappointed by the initial announcement that Tesla was considering a manufacturing center in New Mexico, but that "They'll be back." And they are.

Tesla confirms Model S sedan, 225-mile range and $60k originally appeared on Autoblog on Mon, 30 Jun 2008 15:28:00 EST. Please see our terms for use of feeds.

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Exclusive First Drive: Tesla Roadster

Damon Lavrinc — Mon, 28 Jan 2008 12:00:00 EST

Filed under: Hybrid, Green, Videos, First Drives

Tesla Roadster - Click above for high-res image gallery

Most people are lucky to experience one life-affirming moment while they're on this earth; I experienced mine last week. AutoblogGreen's Sam Abuelsamid called to ask if I was interested in accompanying him on his exclusive First Drive of the Tesla Roadster. Aside from the company's own employees, only a few customers and the major automotive print publications have driven the Tesla Roadster so far. But you won't have to check your mailbox or drop $4.95 at Barnes and Noble to read about what it's like to drive this truly revolutionary vehicle. Follow the jump for our full road test (with video!) and check out the gallery of amazing images below.

UPDATE: Due to popular demand, we've included a video of the Tesla making a few passes without any music or voice over so you can get a sense of how quiet the EV is at speed.

Gallery: First Drive: Tesla Roadster

Continue reading Exclusive First Drive: Tesla Roadster

Exclusive First Drive: Tesla Roadster originally appeared on Autoblog on Mon, 28 Jan 2008 12:00:00 EST. Please see our terms for use of feeds.

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