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Wired: Tesla Gets $40M, Says We'll See Sedan This Year

Discussion in 'News' started by stopcrazypp, Feb 29, 2008.

  1. stopcrazypp

    stopcrazypp Well-Known Member

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    #1 stopcrazypp, Feb 29, 2008
    Last edited: Feb 29, 2008
    Tesla Gets $40M, Says We'll See Sedan This Year | Autopia from Wired.com

    I don't remember if this was posted before, but I don't think some of the main points of the article were brought up if it was. May be repeat of Bloomberg article
    Feb 20, 2008

    -$40 million raised recently led by Elon Musk and Valor Equity Partners
    -Whitestar is not Whitestar anymore, now referred to simply as "sedan"
    -18 months developing the car,powertrain pretty much nailed.
    -Full EV price approaching $70,000, REEV in $50K ballpark.
    -Design concept by end 2nd quarter, prototype by year end
    -Dealers opening: LA by end of March, Menlo Park April, Service-only in NY by year end
    -Tesla has spent 18 months developing service procedures and a factory service manual and is about to start hiring and training mechanics.
    -"We're definitely looking at it before the end of the year," Siry said of the improved drive system (1.5). "The number of models with the interim transmission will be in the tens."

    The price of the EV sedan approaching $70k is certainly news and that may cause pause to some prospective buyers if it is true and will make the REEV that much more appealing. The $70k price was what I was expecting from the start since $50-60k seems like it was a little off when the battery alone costs $20k and the volume doesn't seem very much even compared to the $80k Fisker hybrid. The price doesn't look like it is 100% set yet so hopefully it might turn out less.
    Good news is they are working hard on Drive train 1.5 it seems, to get the number of models with interim trans in the tens (well anything less than 100 is in the tens so it's expected I guess).


    Added: Tesla wants Detroit partnership (Feb 24, 2008)
    Tesla wants Detroit partnership | Freep.com | Detroit Free Press
    "Tesla...wants to join with a large automaker that can manufacture its third model at higher volumes, Siry told Greentech Media at Piper Jaffray's Clean Technology and Renewables Conference in New York City on Wednesday."
    "Tesla plans a second model in a couple of years, the White Star sedan, that would cost $50,000 to $65,000 and be manufactured at a plant to be constructed in Albuquerque, N.M. The third model is expected to be a compact sports car that Tesla officials have said would cost between $30,000 and $35,000."

    Article notes Tesla only wants partnership, nothing more; Siry said Tesla doesn't want to be part of a large car company.
    The target price for the Whitestar has inched up to $65k in the top end so $70k figure before was probably rounded up. This article is newer than the Wired one. We already knew they wanted to partner up for the Bluestar and with a target of $35k they will have to as even GM is struggling to create the REEV Volt with the same target price.
     
  2. BBHighway

    BBHighway Member

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    The price for the 2009 Roadster is also going up, I'm guessing 120 or 125, so that still puts the sedan at close to half price, which was the original target.

    I thought I had heard the number of interim transmissions was going to be in the teens? Maybe they said tens. I'm guessing around 20, since they are starting late March at one car a week, slowly ramping up. That would be about 3 months of production, switching over to the 1.5 drivetrain around July 1st. If the switchover slips until later in the summer, they could have as many as 50 cars that need upgrading, which would be a big financial hit on Tesla.
     
  3. raymond

    raymond Member

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    price hike

    July 2006: US$1 = EUR 0.7816
    Jan 2008: US$1 = EUR 0.6591

    If a large portion of the production cost is euro-related, this gives you a reason for an 18% price hike.
     
  4. BBHighway

    BBHighway Member

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    The Dollar/Euro might be part of it, but I also think it's based on demand what the market will bear.
     
  5. Iz

    Iz EVs are here to stay

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    70k will give me pause to think. On the other hand I just cannot see getting the REEV, particularly when a volt is targeted to be 20k less.

    One would assume the added complexities of a generator would push price on the REEV higher. We need a major battery breakthrough!
     
  6. stopcrazypp

    stopcrazypp Well-Known Member

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    Selling only 10k units annually, it would be hard to make it cheaper and still turn a profit. Even without the $20k battery, creating a whole new factory and getting the supply line would make it hard to compete on price with competitors. BMW sells about 200k 5 series sedans annually and MBenz sells around the same E-series sedans annually just to give you a taste.

    I think they should target the "coupe-style" sedans like the CLS (starts at $67k, 0-60 4.7) and the 6-series, which is basically a 2 door 5-series, (starts at $75k, 0-60 5.3). If it is sporty enough (ie with rumored 0-60 in 5 secs) then the price would be on target and the 10k should be easily sold.

    Personally, like most, I think it's better to wait for the third model at $30-35k. Even $50-60k is a lot to drop on a car.
     

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