Tesla Misses Key Numbers - Place YOUR Bets: Will Tesla PREVAIL Or Should We Start The Clock Until Its Demise?

It's going to be a tough road for sure. With the Roadster sold out in North America, and the high prices of the S, and the X not available until 2014, I cannot see how Tesla can make up for its YTD losses. They would have to sell tons of the S model worldwide (honestly, not even sure where they are available). My brain is boggled by a net loss of $865million through the first two quarters of 2012. That's almost $1Billion. That's a heck of alot of investors who are losing big on this if they cannot turn it around.

Not to mention their limited number of dealerships. I find it shocking that they would open up a showroom in the MALL here in Scottsdale, with test-drive cars situated in the parking garage. I really and truly do not get that approach. Sure, it's unique and it's probably more cost-effective than opening up a full-blown dealership, on leased land, with building costs, etc. I just don't see how it is truly going to be successful.

They have 15,000 reservations right now of the Model S and X, the challenge is in fulfillment,

As for the stores, it is a brand new approach... selling cars the way Apple sells computers. The experience is a thousand times better than any dealership, but it is definitely different. In the end I think most cars will be sold this way in the future.

Something is very off here. The Roadster is sold out in North America and I would imagine that it's pretty much tapped out elsewhere. The Model S just started delivery in June of this year and the Model X isn't delivering until 2014. So, those 15,000 reservations for the S and X couldn't possibly be accounting for the decrease in revenue projection for this year. What went wrong? If the Roadster is essentially selling as expected, and if the S appears to be overselling, why the deficiency in revenue? I can understand a new company experiencing losses in the first year, but I don't understand change in revenue as the projections made at the beginning of the year would have accounted for production capacity. If production capacity if tapped to the max now, then that should mean that they would be on-pace for their revenue targets. It's just not adding up according to what the article states and what you are stating, SJD.

As far as the sales/marketing approach, I'm still very skeptical. In some ways, it's a smart move to take the customer away from the competition and not locate yourself amongst other car dealerships. On the other hand people don't go to malls to shop for cars. It's not necessarily like the Apple method of selling computers as computers, prior to Apple, were sold in malls for years. The Apple experience also includes servicing, where the Tesla experience does not. Plus, I think being in the mall attracts a customer who isn't really serious about a purchase. So, the salespeople have to spend time explaining things to people who are just curious and not really in the market for a car, taking away from spending time with true, serious, buyers. This, I witnessed myself at the Scottsdale location where all the sales guys were answering questions for teenagers who likely couldn't afford to purchase the S (the only car on display) as others just walked in and out.

They have 15,000 reservations where they only collected $5k (for most, the limited production sigs required $40k). So if they are not delivering cars, they cannot recognize the other $50-100k per car. That is how their sales can be good, yet they are not able to recognize most of the revenue. The bottleneck is in manufacturing at this point.

As for the store, you're missing the concept. But that's okay, I think it will make sense the 3rd or 4th time you're in the store. Tesla has 0 salespeople, they are not paid in commission. They are essentially selling the brand, much like Apple does. They want to sell people the concept of a Tesla, get excited about it, and then choose to buy it when it's right for them and without pressure. There will be very few Tesla impulse buys. Also, every single Tesla is custom configured for the owner, there is no haggling over price, and most of the paperwork can be done entirely online.

FACTS:
1. Tesla is the only auto OEM without a single saleable new car and has been so for the past 4 months
2. Tesla has has sales 'success' of 2,600 Global units since 2008 (4 years). That kind of volume would not support any niche brand (except Bugatti @ 300 units)

Tesla S remains a show car (Sept 26, 2012) and the pre-orders should have flooded the SoCal streets by now. Nope nothing. The practical reality is setting in. Cars cost money to build, billions of dollars in fact. No money in hurts even billionaire company owners - maybe this stock drop will be able to force the vapor to clear and product to emerge.

There are Tesla Model S cars in the wild:

http://photos1.meetupstatic.com/photos/event/8/5/1/8/highres_162274072.jpeg
http://photos1.meetupstatic.com/photos/event/8/3/c/e/highres_162273742.jpeg

https://www.facebook.com/photo.php?fbid=359770930772430

The problem is it is not as easy to mass-produce cars as Tesla was hoping, especially not ones as complex as this one.

DeLorean couldn't do it despite years of experience in the industry. Bricklin failed. Spyker tripped on Saab as the cash demands killed them. Investment bankers tried a Chrysler turnaround... and failed. The car business is not for venture capitalists either. It takes too much investment with a long time to get a return.The competition is brutal. One or two inevitable recalls will severely reduce those "reservations" which are not real sales, not to mention use lots more cash. With the auto industry consolidating worldwide even a Tesla sale to a big auto firm is getting iffy. The big firms will hover like buzzards waiting for a Chapter 7 liquidation to pick up any juicy technology. There goes more taxpayer money down the drain.

Dunno, the people behind Tesla are true believers. Tesla has been counted for dead before. The odds are very low, but if anyone has beaten similar odds before and can beat these it is Elon Musk.

They've got backers with very deep pockets. =>Rav4 Electric

Stick a fork in it.

Recharge stations that charge $0 sounds like a good proposition to me. Will turn the oil and car industries upside down. If anything kills Tesla, it'll be big oil and GM. If a car costs $50K and you don't ever have to buy gas for it, I'm sold. At $60K, I'd buy a Model S if they were available, better than some soccer mom/gangster Escalade.

Electric cars are not feasible at this time.

Get it? NOT FEASIBLE NOW. Every electric car is a failure. Technology must evolve and then it may be possible.

Besides, electric cars are recharged with coal and oil fired electric plants so who is fooling who?

Except the Model S is feasible now and the superchargers are powered by solar energy.