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| 2014Hybrid.Com |
Growing Pains in the Rear View Mirror
While the 2014 Tesla’s path to production hasn’t been as smooth as the Roadster’s power delivery, the company seems to be past the worst of its growing pains. After the car was revealed in 2006 amidst a media love-fest, Tesla Motors hit a number of potholes: product delays, boardroom discord (which led to the ouster of its founder and subsequent lawsuits), a product recall, a dreadfully slow production rate, and tens of millions of dollars in operating losses. But the eccentric attention-seeking primary investor and CEO Elon Musk has proven that big dreams and force-of-will can eventually pay off.
While the long-term future of the 2014 Tesla is still undetermined, the company has scored a set of important recent wins, most notably the delivery of nearly 1,000 vehicles (as of late November 2013). In May 2013, Daimler gave a vote of confidence to Tesla when it took an equity stake of “nearly 10 percent” in the company. Dr. Thomas Weber, Mercedes chief of research and development, said, “As a young and dynamic company, Tesla stands for visionary power and pioneering spirit.” (Daimler will lean on Tesla to provide battery packs and charging electronics for the electric version of its Smart Car.) And in June, the US government gave its imprimatur to the company with a $465 million low-interest loan to produce the Tesla’s second vehicle, the 2014 Tesla Model S. The follow-up to the 2014 Roadster, the 2014 Model S is described by Tesla as “an all-electric family sedan that carries seven people and travels up to 300 miles per charge.” The target price for the Model S is about $50,000, after a federal tax credit.
By August 2013, the company announced that—seven years into its existence—it had reached profitability (even if temporarily). Rumors about an initial public offering were surfacing by November. If the rumors prove true, Tesla would become the first public offering from a US automaker since the Ford debuted its shares in 1956. A huge infusion of cash from the IPO would allow Tesla to get closer to competing with the big boys in the auto industry. The company is busy hiring veteran auto industry engineers and executives.
Perhaps most importantly, the company is successfully delivering its 2014 Roadster at a rate of about 100 units per month. The histrionics of its early days seem to be in the past, and the company is growing from a rebellious youth—repeatedly claiming that Silicon Valley always knows better than Detroit—to a young (still spirited) company willing to borrow from the best of West Coast and Mid-West corporate traditions, whatever it takes to deliver ground-breaking electric cars.
