Tesla Motors, the achingly cool electric car company responsible for the brilliant Roadster, is unfortunately leaking more money than a rapper at a strip club -- and apparently Jeremy Clarkson is to blame.
Tesla Motors reported losses of $65m in the third quarter alone, the Detroit News reports, which isn't exactly ideal, seeing as the company's total turnover is just $200m.
Tesla CEO Elon Musk claimed the losses were partly due to "the continuing adverse impact on the Roadster via reruns of Top Gear, the UK's leading car show". (He means after Car Tech, obv.)
"As a result," Musk moans, "we had an excess inventory of right-hand drive versions of the Roadster and continue to incur additional costs to correct the consumer misperception."
We're not exactly sure how many customers are holding off buying an £89,000 Roadster because of what a middle aged anti-electric car journo said on a Dave repeat, but Tesla believes it's a factor and hopes to recoup some of this lost revenue by suing the BBC.
Remarkably, Tesla Motors and its shareholders don't appear too bothered about its losses -- at least not in the short term. Musk expects the company to carry on haemorrhaging cash as it continues to invest in research and development of its future cars -- specifically the Model S, which is aimed at a more mainstream audience.
That car, a fully electric saloon to rival the likes of the BMW 5 series, should sell in higher volumes, as the entry level model will go on sale for the more affordable price of $57,500 (£36,000), excluding a $7,500 subsidy from the US government.
Whether the Model S will be successful enough to plug the existing cash gap and prevent Tesla going the way of Greece remains to be seen. Let's keep our fingers crossed, shall we?
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Comments 16
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anonymous 10 November, 2011 16:27
No, it hasn't sold because only an imbecile would spend £89,000 on a car that ugly and slow. Jeez, you could buy a GTR and have loads of money left over at the end of it. Or just get a real sports car.
A Prius is a better looking and MUCH MUCH cheaper option. Go on, blame the BBC, Tesla, but it's your fault for making a **** car.
anonymous 10 November, 2011 17:00
clearly Rory Reid has no clue as to how financial fundamentals work....
Rory Reid 10 November, 2011 17:16
Financial what?
Nick Hide 10 November, 2011 17:18
Buuurn!
anonymous 10 November, 2011 17:35
Tesla is a Good Company that has a good business plan that has already convinced Auto company's to use Tesla power-trains in there upcoming Electric Vehicles
anonymous 10 November, 2011 20:53
A car that ugly and slow ? Are you serious ? 0 to 60 in about 5 seconds ? Ugly ?! You must be blind..... Look at it !! The Model S is a masterpiece! Only an idiot would view it as ugly..
anonymous 11 November, 2011 02:24
Tesla loses money because it's R&D the Model S and Model X. If you follow their stock, its been up because they've beaten analyst expectations. Duh. Fi-nan-cial Fun-da-men-tals.
It's also expanding its work force at a rapid rate. It's losses have nothing to do with the Roadster. Can't make $ without spending $.
Go git educated.
anonymous 11 November, 2011 11:49
Clearly the CEO of Tesla has no clue as to how 'financial fundamentals' work either if he is also in part attributing the loss to the Roadsters poor sales.
Maybe you should apply for his position? Your experience in poorly written anonymous posts on tech blogs would shine on your application I'm sure.
anonymous 11 November, 2011 12:33
If your a fan of CNET, insulting a member of the team is not exactly a gesture. You should be ashamed of yourself and apologise.
anonymous 11 November, 2011 13:46
Made a loss because of Top Gear, more like who is stupid enough to pay that for a car that may not get you home.
Hydrogen is the only way to go. Electric cars are just stupid.
anonymous 11 November, 2011 14:59
"Clearly the CEO of Tesla has no clue as to how 'financial fundamentals' work either if he is also in part attributing the loss to the Roadsters poor sales.
Maybe you should apply for his position? Your experience in poorly written anonymous posts on tech blogs would shine on your application I'm sure."
You are right. Selling stuff is NOT the reason as to why companies lose money. You're an idiot. Doesn't matter if you sell something at a loss. If there's inventory sitting there not being sold, there's an actual cost to it, not to mention the opportunity cost of not selling the actual inventory. Let me repeat...YOU'RE AN IDIOT.
"If your a fan of CNET, insulting a member of the team is not exactly a gesture. You should be ashamed of yourself and apologise."
Where are you from? China? If the author posts a stupid, clearly opinionated, article, we as readers have every right to call him/her out on it.
The author CLEARLY based his research off a couple of articles that he read and spun it to make it sound like the reason Musk believes Tesla lost money was because of Top Gear. Please. I saw another commenter hit it right on the money. R&D combined with expected losses from sales of Roadsters were the MAIN reasons for losses. This was expected by Tesla management AS WELL AS Wall St. In fact, Tesla ended up performing better than expected, posting not-as-high losses. The idiocy of some of these comments (and the overall article) is appalling.
anonymous 11 November, 2011 22:07
What a joke they allowed their car to be tested by Top gear UK the world's number one car program/review only they found it to be not worth the money, I think that episode was one of the best and to be honest when it comes to cars Jeremy Clarkson's word is final .
anonymous 11 November, 2011 22:34
that car is FAST. I test drove one and it did do 0-60 in 5 seconds! it handled well and felt great to drive! i would love to buy the S model when it comes out. if it is anything like the roadster as far as performance, it will be a winner!!
anonymous 12 November, 2011 16:30
0-60 in 5 seconds??? For £89,000??? If I was buying a good looking car I might be able to overlook the sluggishness, but it's not. It looks like your typical GM attempt at competing with the Japanese (I know it's got nothing to do with GM, just saying that's what it looks like). Only an American (with their crappy cars) would ever consider 5.0 secs 0-60 to be anything better than respectable.
anonymous 12 November, 2011 22:50
0-60 in 3.7 seconds actually...
olivierm 15 November, 2011 19:36
It's way too expensive for a Lotus Elise..... No point buying such an expensive car that comes with so little bragging rights ....