With any kind of startup, the first couple of years are often the most difficult, something Tesla hasn’t been able to avoid. However, the company’s plans remain on track and with rave reviews of the Model S flooding in it looks like its future could be bright.
In a report covering its 2012 second quarter financial results, Tesla stated that its net loss totaled $105.6 million, or $1 a share, up from $58.9 million, or 60 cents, a year earlier. At the same time, revenue fell 54 percent to $26.7 million.
Considering that sales of its first model, the Roadster, are in the wind-up phase and the Model S has just been launched, the results are not at all surprising. With the Model S now on sale, Tesla is predicting it will break even by the end of the year and could be profitable shortly after.
The company is slowly ramping up production of the Model S, with only 500 scheduled to be built during the third quarter, and another 4,500 to be built in the fourth quarter once the production process is perfected. At the end of June, Tesla said it already had 11,500 orders for the Model S.
“This accelerating pace of reservations makes us confident that demand will surpass 20,000 Model S units for full-year 2013 deliveries,” Tesla CEO Elon Musk is quoted in the report.
Tesla’s next phase of expansion is to open more stores and service centers around the globe. Already there are new locations in Oslo, Norway, White Plains, New York, Santa Monica, California, Scottsdale, Arizona and Portland, Oregon. Tesla will also be taking the Model S on a nationwide tour dubbed the Get Amped Tour to get people to come out and experience the car.
In addition to sales of its Model S, Tesla is also generating revenue from the sale of its electric drivetrain technology to rival firms Toyota, which is set to launch an electric RAV4, and Mercedes-Benz, which is expected to launch an electric version of its B Class compact MPV.