Recently, some journalists have reported misleading information about Tesla, here’s how we see it:
Tesla’s Initial Public Offering successfully raised $226.1 million. It was the first American Automotive IPO in over 50 years and was a significant step forward in the clean technology sector. We opened with an initial price of $17 and anticipate, like all stocks in the current global financial situation, fluctuation over the next few months.
In addition to funds raised from our IPO, Tesla received a low-interest loan for $465 million from the Department of Energy (as of June 14, 2010, we have drawn $45.4 million) and a recent investment from Toyota for $50 million in connection with our IPO. Roadster sales and our powertrain business provide revenue today. Tesla has agreements with Daimler to supply powertrain components for the Smart fortwo and the Mercedes A-Class and an agreement with Toyota to initiate the development of a powertrain system for the electric RAV4. Revenue from Roadster and powertrain sales help cover a portion of the expenses required to bring the Model S to market in 2012.
Model S Development
Tesla is focused on the development and production of the Model S.
In May 2010, we agreed to purchase a factory in Fremont, CA, the former home of a Toyota/General Motors partnership where, most recently, Toyota Corollas and Tacomas were built. We intend to build both the Model S and our future electric vehicles at the Tesla Factory.
We continue to share the development process of the Model S.
- Placing the battery pack along the floor of the car helps optimize the cargo space by allowing storage in the front and rear of the car and enables battery swapping.
- We run an extensive advanced battery testing lab and have since before we began delivering the Roadster in 2008. We are confident in our ability to produce a battery that will provide the Model S a 300-mile range and quick charging solutions are in development.
- Along with seats for a driver and four passengers, we have designed the Model S to offer rear seating for children. This is a similar concept that station wagons have used, for example the Mercedes e-class wagon.
Commitment to the Roadster
The Roadster is a groundbreaking vehicle that pushes the boundaries of automotive engineering. It is in Tesla’s DNA. As a company we owe a great deal to the Roadster and we will remain committed to it.
Over 1,200 Roadsters had been delivered around the world. As of today, these vehicles have driven over 6 million electric miles in 27 countries.
We believe the Roadster’s success is a big reason that both Daimler and Toyota invested in and partnered with us. At least one other car company has credited the Roadster with catalyzing its electric programs.
Tesla has finalized new agreements with key Roadster suppliers that will enable us to increase Roadster production to meet increased customer demand. We intend to sell Roadsters in 2012.
Our revolutionary approach to service is designed to reach every customer wherever they are around the world. Our mobile service team, the Tesla Rangers, travel to customer locations to provide convenient service. We currently operate 13 stores worldwide and are actively securing additional locations for both sales and service.