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Jalopnik: ValleyWag: FT: Tesla to raise $250m for electric cars (Whitestar)

Discussion in 'News' started by stopcrazypp, Feb 18, 2008.

  1. stopcrazypp

    stopcrazypp Well-Known Member

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    #1 stopcrazypp, Feb 18, 2008
    Last edited: Feb 18, 2008
    Jalopnik:
    Alternative Energy: Tesla Seeking Hot $250 Million Cash Injection For Whitestar Sedan
    Via ValleyWag:
    Ipo: Tesla Motors wants another $250 million
    Via FT.com:
    FT.com / Companies / US & Canada - Tesla to raise $250m for electric cars


    ValleyWag summary:
    "Tesla Motors, which finally shipped its first electric car earlier this month, hopes to raise $250 million in equity and debt to fund its mass production push, over the next two years. Chairman Elon Musk wants to conduct an IPO in New York or London, raise money privately and apply for a loan guarantee from the Department of Energy to build a U.S. production plant for Tesla's forthcoming electric sports sedan. Tesla has raised $145 million in venture capital, including a $40 million round that closed last week. Elon, don't spend it all in one place."

    Jalopnik:
    "Hmm, we guess the rumors of the Whitestar's demise were slightly overstated. Nope, it's only dead if they can't get themselves the money necessary to build it."

    Confirmation Whitestar factory is about to be built since they are gathering the funding. However, as you can see the blog sites are taking this as a chance once again to put forth the Tesla = vaporware idea. But overall still good news for the Whitestar development.

    Edit:
    Autobloggreen:
    More on Tesla financing and production plans - AutoblogGreen

    Siry commented that they were considering a partnership but it didn't make sense in the end, so the Whitestar will be developed independently. They'll revisit the idea for the third car.

    "Why so much money? Tesla had been considering entering into a partnership with another company for the production of WhiteStar. According to Tesla's Darryl Siry, "we looked very hard at a partnership with an OEM but it didn't make sense at the end of the day." The complexities of such a partnership would slow down the project and Tesla wants to keep control of more of their intellectual property. Once WhiteStar is underway, Tesla will be revisiting the idea of a partnership of some kind to produce a third, higher-volume model. That lower-cost car is targeted to sell at the rate of up to 100,000 annually. "
     
  2. malcolm

    malcolm Active Member

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    I'm really relieved to hear this.

    Still a very tough challenge, but Tesla gets to develop components for their own products rather than tweaking them for a partner's products and having to share IP.

    Just as the Roadster punches above its weight in terms of media and industry impact, Whitestar needs to do the same.
     
  3. DDB

    DDB Member

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    Tony, I saw your comment or rather question on ABG, which was something like $250 m seemed like a small amount of capital when comparing a bigger producer like GM who would regular spend $1 b in bringing a new vehicle into production.

    I couldn't agree more. But I do think it's a blind leap of faith for VCs or public investors to dump money into a company that has no record of being profitable. I hope they take the Whitestar design and basically license it out to other manufacturers (or partner with them) for a low cost version that the masses can truly afford.
     
  4. Iz

    Iz EVs are here to stay

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    Another potential positive move for Tesla. Lots of skeptics out there however. Many will find something else to complain about when p2..p100 are produced and shipped.

    How can Tesla go about getting parts from suppliers at the same cost as a GM or Ford?

    Are the incremental costs of these parts substantial?
     
  5. Kardax

    Kardax Member

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    If Tesla is still planning to build a PHEV version of WhiteStar, they'll have no choice but to at least get some kind of supplier relationship with another company for the gas engine. There's over 100 years of technological developments and patents on ICE technology that Tesla would not be able to resolve in a reasonable amount of time.

    -Ryan
     
  6. siry

    siry Member

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    Kardax - we would of course source the ICE from an established manufacturer. There are several companies that sell engines to other companies in today's marketplace, so that wouldn't be a problem.
     
  7. Kardax

    Kardax Member

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    Oh, of course. The wording of the article makes it sound like such a business relationship wouldn't be happening. In my opinion, the ICE is the most important non-Tesla part of the PHEV WhiteStar, something a supplier would want to call themselves a "partner" about...

    -Ryan
     
  8. donauker

    donauker Member

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    I don't really see why using a particular manufacturers product would warrant classifying them as a partner. Is Toyota considered a partner of Lotus?
     

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