Tesla Losses Soar to $154.3 million in 2010, Despite Gains in Revenue

Tesla Motors has just released a preliminary, unaudited financial report concerning the year than ended on Dec. 31, 2010. The company reported losses of US$51.4 million in Q4 2010 and US$154.3 million for 2010, which was almost triple the US$55.74 million loss for the year ending Dec. 31, 2009.

The EV automaker's revenue, however, rose approximately 5 percent in 2010 to $116.7 million. Revenues for the fourth quarter of 2010 were US$36.3 million, a 16% increase from the US$31.2 million reported in the prior quarter. Tesla added that gross margin improved to 26% for the full year 2010, up from 9% for 2009.

The company 's future plans include the launch of the Model S, which is scheduled to go on sale in the middle of next year. Scroll down to read Tesla CEO Elon Musk's statement.

“We are very pleased to report continued revenue growth, improving margins and a steady progression in our Roadster and powertrain activities,” said Elon Musk, CEO of Tesla Motors. “Our powertrain team delivered solid results, with an increase in orders and record deliveries of battery packs and chargers for the Daimler Smart fortwo electric drive, the completion of our development program for the Daimler A-Class, and the commencement of the phase 1 development program for the Toyota RAV4 EV.”

“The highlight of the quarter was our on-time completion of the first drivable Model S alpha,” continued Musk. “The quality and level of refinement of the alpha demonstrates the superb job of our design, vehicle engineering and powertrain teams. They have embraced the opportunity to build an EV from the ground up and have produced a vehicle which shows great potential to deliver superior aerodynamics, stability and handling, crash safety, performance and range. We believe the Model S is well on its way toward becoming the vehicle of choice for 2012.”

Tesla reports 1000 pre-orders for the Model S

On March 26th, Tesla officially unveiled its drivable prototype Model S sedan--- Tesla's first all-original car, at Elon Musk's SpaceX headquarters, and opened the reservation books for the car - even though they haven't broken ground on the factory that will build it. Undeterred, over 1,000 people have made the $5,000 deposit for the car already, raising another $5 million for the car's development.

Even Tesla was surprised by the number of people willing to pony up the cash early on, when 520 people had made their reservations in the first week. "Frankly the number of cars reserved in the first week has exceeded our optimistic internal projections," said Tesla CEO, Chairman and Product Architect Elon Musk. "Enthusiasm surrounding the Model S is proof that there's pent-up demand for more affordable, fuel-efficient vehicles - including those made in America."

As interest in the Model S continues to show strength, Tesla has shifted to extolling the virtues of the electric sedan. “The Model S is a better value than much cheaper conventional cars,” said Musk. “Despite the enormous environmental benefits, lower total cost of ownership will soon become the primary motivation for consumers to evolve from gas guzzlers to EVs.” The Model S's lower total cost of ownership relies on higher priced - above $5 per gallon - gasoline. At current rates, the calculation isn't so favorable. But it at least seems reasonable to assume fuel prices will rise again once the economy rights itself.

To get from here to production, however, the company has applied for a $350 million loan - peanuts compared to the major carmakers, but still a tough sell, especially for a completely unproven product - from the U.S. government's Advanced Technology Vehicle Manufacturing Program.

Tesla added further excitement to its new Model S by announcing a Signature Edition, which will be built in a run of 2,000 cars that will be split evenly between U.S. and European customers. The Tesla Model S Signature Edition will be the first built cars and will come with unique interior and exterior features. To reserve one Tesla will need a $40,000 deposit for this special model.

The Model S's statistics are likely what drove the early interest - at 5.5 seconds to 60mph, 300mi range and an incredible price of $57,500 before $7,500 in tax credits, the car offers inexplicable value, especially considering it will be built in California. And that's before you get to the car's technological feature list.


More information unveiled on March 26th:
A quick run-down of the car's stats reveals the Model S will carry on the Roadster's mantle of green performance, while expanding considerably on its utility: a 300mi (480km) range is complemented by an expected 0-60mph (96km/h) time of 5.5-6.0 seconds. There's even work being done on an optional 600mi (960km) extended-range battery pack. Despite the range of the 300mi pack, Tesla is claiming a 45 minute quick-charge time. The battery pack itself will be warrantied for 7-10 years, while the car will be warrantied separately for a period of 3-4 years.

The official photos of the car reveal an exterior more or less as expected, though the flavors of Jaguar, Maserati and Karma are more upscale than its price would suggest. Tesla's hiring of Mazda's former chief designer for the project probably explains that, however. The unfinished interior shown in leaked photos threw the 'drivable' aspect of the prototype into doubt, but the official shots reveal a car that is in fact ready to run - though probably not ready for volume production.

A huge central screen area will house a haptic (read: touch feedback) touchscreen interface, while a second LCD serves as the instrument panel. The presence of such a huge display hints at the highly reconfigurable nature of the system, perhaps even allowing customized gauge and feature layouts. Again, this feature seems to be well beyond the $57,400 price tag of the Model S. A unique interior configuration allows seating for seven with the installation of a pair of child-sized jumper seats in the rear of the car.

The car will also have a few high-tech and high-performance toys that further build the mystery of just how so many features fit into the price tag, including full-time 3G connectivity with Internet, HD and satellite radio, a six-piston front and four-piston rear Brembo brake system, 21in wheels and LED/neon head and tail lights.