Tesla Motors intends to spark the public's passion and
eco-conscience for electric vehicles. Founded in 2003, the company
designs, manufactures, and markets high-performance electric cars
and powertrain components. Tesla's stylish Roadster is its flagship
model, which the company continues to upgrade. The fuel-efficient,
fully electric vehicle recharges its lithium-ion batteries from an
outlet, and, depending on a driver's speed, is capable of 245 miles
per charge. Tesla's second vehicle, the Model S sedan, is a
four-door, five-passenger premium sedan that offers many of the
electric powertrain innovations introduced with the Roadster.
Tesla operates through 125 stores and service locations in more
than 35 countries. North America accounts for nearly 75% of its
sales, Europe, almost 25%.
The company's luxury Tesla Roadster, and its
subsequent upgrades, the Tesla Roadster 2, Roadster Sport, and
Roadster 2.5, are the first in a line of electric
vehicles offered largely in the US, Europe, and Canada via its
16 Tesla-owned stores, at corporate events, and through the
Internet. And while sales and customer reservations for the
cars have soared (The company sold about 22,480 of the high-priced
vehicles in 2013.), so too have costs. Despite efforts to trim its
operating expenses, the company continues to operate at a loss, due
in large part to high sales and R&D costs.
Tesla launched its Model S in mid 2012; its Model X, a
cross-over built on the Model S platform, is expected to launch in
2015. By the end of 2013, Tesla had delivered over 25,000 Model S
vehicles in North America and Europe.
Tesla has achieved extraordinary revenue growth on the heels of
launching its newest car, the Model S. Due to this product
introduction, Tesla's revenue exploded from $413 million in 2012 to
peak at a record-shattering $2 billion in 2013. This explosion in
revenue was also the primary reason Tesla's cash flow skyrocketed
from a negative operational cash flow of $266 million in 2012 to
positive cash flow of $258 million in 2013.
The historic growth was related to the delivery of 22,477 Model
S vehicles for 2013, including the commencement of European
deliveries in August 2013. All told, it generated additional
revenue of $1.95 billion due to the vehicle deliveries including
vehicle options, accessories and destination charges, vehicle
service, and sales of regulatory credits to other automotive
On the flip-side, Tesla has posted eight straight years of net
losses, with losses shrinking from $396 million in 2012 to $74
million in 2013 due to a decrease in research and development
Looking ahead, Tesla is focused on boosting revenues by
expanding its line of automobiles. Its strategy includes upgrading
its Model S and launching its new Model X in 2015, for a wider
Tesla Motors is named for Nikola Tesla (1856-1943), the renowned
Serbian-American engineer and inventor.