Still more automotive news: Tesla Roadster to end production in 2011.
Jstas
Posts: 14,806
Yes, the Roadster that hasn't even been fully delivered to existing owners who are still waiting for delivery will end production in 2011. At the same time, Elon Musk, the prez of the biz, is going IPO with Tesla. So he is asking for people to drop coin on shares of a company with no product after 2011 cause they are killing their singular model and the second model in their line up isn't much more than drawings on paper. Now I'm all for progressing technology by taking a risk but this isn't 1990, it's 2010 and the sting of the tech bubble is still in the air. It's what led to this current recession because the housing boom from the tech bubble left oodles of unsold houses so lenders bent the rules to sell the product rather than leave it rotting on the plots, unoccupied. Needless to say, people are much less likely to take such a risk. Then again, if this pans out the way it seem Musk is hoping and Tesla becomes a big deal, initial investors are looking at profits equivalent to owning, say, Microsoft shares. But in this economy, who's got that kind of money to tie up in a high risk like that?
http://www.wired.com/autopia/2010/01/teslas-roadster-to-exit-in-2011/
Granted now, to be fair, Lotus is bringing a while new Elise to market in 2012 and since the Tesla Roadster is based on current Elise platforms, it would make sense that the Tesla Roadster would have to be redesigned if it's platform source dried up. But canceling it in 2011 with the nearest possibility of putting a new version on the road being at least 2 years out seems like market suicide.
Now, it seems that Musk is doing the IPO thing to raise capital because Tesla doesn't have the beans available to both finish engineering the 4 door they are planning and re-engineer the Roadster while producing the current model. So, in a roundabout way, this makes sense. It also makes one wonder, is the Tesla Roadster unique enough that it will weather this storm and subsequent drought because it is that unique or is this just another nail in the coffin? Keep in mind that other companies with much more vast resources are planning on releasing their vehicles right around the time that Tesla is dropping off the map for a spell.
Things that make you go hmmmmm.
http://www.wired.com/autopia/2010/01/teslas-roadster-to-exit-in-2011/
From Wired's Autopia:
Teslas Roadster To Exit In 2011
* By Chuck Squatriglia Email Author
* January 29, 2010
If you want a Tesla Roadster, you better sign up now. Tesla Motors plans to stop building the car in 2011.
Buried deep inside the Securities and Exchange Commission paperwork Tesla filed ahead of its IPO is the announcement that production of the two-seater and its souped up Roadster Sport sibling (pictured) will stop next year, and a replacement wont hit the road until 2013 at the earliest.
Why? Because it doesnt have anyone to build it.
We do not plan to sell our current generation Tesla Roadster after 2011 due to planned tooling changes at a supplier for the Tesla Roadster, the company wrote in the filing. The Roadster is built by Lotus, so presumably Tesla is talking about changes at the British automakers factory in Hethel, England, but we cant confirm that because Tesla spokesman Ricardo Reyes declined to comment.
Tesla plans to replace the Roadster, but not until at least one year after the launch of the Model S, which is not expected to be in production until 2012. The company just closed a $465 million loan with the Department of Energy to finance construction of the Model S sedan, and it is focusing most of its time and resources on that car.
Stopping production of the Roadster could could present a problem, because it means Tesla wont have any cars to sell and no revenue coming in.
As a result, we anticipate that we may generate limited, if any, revenue from selling electric vehicles after 2011 until the launch of the planned model S, the company says in the SEC filing. That may not be a problem if S production starts on plan and goes off without a hitch, but if Tesla hits any snags, things could get ugly fast a point it concedes in the filing.
The launch of the Model S could be delayed for a number of reasons and any such delays may be significant and would extend the period in which we would generate limited, if any, revenues from sales of our electric vehicles.
The move amounts to killing the car that made Tesla famous for the sake of the Model S. Tesla better hope everything goes according to plan, or it surely will regret that decision.
Read More http://www.wired.com/autopia/2010/01/teslas-roadster-to-exit-in-2011/#ixzz0eOICGiTb
Granted now, to be fair, Lotus is bringing a while new Elise to market in 2012 and since the Tesla Roadster is based on current Elise platforms, it would make sense that the Tesla Roadster would have to be redesigned if it's platform source dried up. But canceling it in 2011 with the nearest possibility of putting a new version on the road being at least 2 years out seems like market suicide.
Now, it seems that Musk is doing the IPO thing to raise capital because Tesla doesn't have the beans available to both finish engineering the 4 door they are planning and re-engineer the Roadster while producing the current model. So, in a roundabout way, this makes sense. It also makes one wonder, is the Tesla Roadster unique enough that it will weather this storm and subsequent drought because it is that unique or is this just another nail in the coffin? Keep in mind that other companies with much more vast resources are planning on releasing their vehicles right around the time that Tesla is dropping off the map for a spell.
Things that make you go hmmmmm.
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You're just jealous 'cause the voices don't talk to you!
You're just jealous 'cause the voices don't talk to you!