Tesla Motors may well build the most desirable electric car of all time, but that doesn't make the company immune the same economic realities as every other automaker. Last week, Tesla CEO delivered a keynote address at the Society of Automotive Analysts "Outlook 2009" conference that took place during the press previews for the Detroit Auto Show. In the last few months, Tesla has had to abandon plans for a public stock offering as well as an additional private fund raising round.
Before the speech, Musk sat down to talk at some length about the current state of the business. He did acknowledge that new orders have slowed down recently while some existing orders have been canceled. Musk declined to be specific about numbers but did acknowledge that the overall economic environment has affected some customer's ability to complete their orders.
Musk also discussed the battery supply deal with Daimler and indicated that he would like to see more OEM deals in the future. The bottom line is that even with the added revenue from increased Roadster deliveries and option price increases, Tesla is likely to have a very difficult time going forward unless the economy makes a dramatic turnaround in the next six months.
[Source: Green Fuels Forecast]
Before the speech, Musk sat down to talk at some length about the current state of the business. He did acknowledge that new orders have slowed down recently while some existing orders have been canceled. Musk declined to be specific about numbers but did acknowledge that the overall economic environment has affected some customer's ability to complete their orders.
Musk also discussed the battery supply deal with Daimler and indicated that he would like to see more OEM deals in the future. The bottom line is that even with the added revenue from increased Roadster deliveries and option price increases, Tesla is likely to have a very difficult time going forward unless the economy makes a dramatic turnaround in the next six months.
[Source: Green Fuels Forecast]
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