Friday, August 7, 2009

Tesla Motors is Out of the Red

Tesla Motors of San Carlos, California, the love child of a group of Silicon Valley entrepreneurs, announced recently that it turned a $1 million profit on $20 million in revenue in July--impressive not only in the context of the current automotive market, but also in the defiance of their oil-fed brethren. Having debuted their highly popular Roadster in July, 2006, Tesla has come to exemplify the potential of electric vehicles -- particularly their capacity for speed. Their flagship roadster boasts a 220 Miles-per-charge range and have an even longer-range family sedan, the S, is currently shipping to a short-list of U.S. customers.
If their independent success isn't sufficient, in July their efforts have earned them them $465 million in low-interest loans from the Department of Energy, which they say will go toward the development of their S sedan manufacturing plant, set to retail just under $50k. Aside from saving on gas, tesla owners also qualify for tax credits, are exempted from sales tax for the purchase, free parking, and a variety of other benefits.
I am eager to see how this all plays out. Kind of a curve ball.

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