Tesla's Jason Noma polishes one of Tesla's new Model S sedans at Tesla headquarters in Palo Alto, Calif. The company made its 100th Model S in August. / July photo by Patrick Tehan/McClatchy-Tribune
California start-up Tesla Motors warned investors Tuesday that its 2012 sales would fall about 30% below prior expectations because it is confronting "unique manufacturing challenges" in producing its Model S sedan.
The Model S sedan ranges from more than $50,000 to nearly $110,000 before tax credits. The company said it had manufactured only 255 vehicles from June through Sunday. But it still expects to make 2,500 to 3,000 in the fourth quarter.
Tesla's stock tumbled nearly 10% to $27.66 on more than four times its daily trading volume.
Tesla, which has lost $660 million in last 14 quarters, didn't back off previous projections that it would produce more than 20,000 Model S sedans in 2013 at a pace of about 400 per week.
In a filing with the Securities and Exchange Commission, Tesla said the U.S. Department of Energy agreed it could delay a third-quarter interest payment due on Tesla's $465-million federal loan. But Tesla agreed to accelerate future payments on the loan.
The company said it would seek to raise up to $147.6 million through a public offering to help repay the loan, which has now been amended four times.
Tesla's warning came two weeks after one of its investors, venture capitalist Tim Draper, said in an interview that Tesla had won "the electric-car battle."
"Don't live in your reality-distortion field here in Detroit," Draper warned his audience at the Techonomy conference at Wayne State University.
Now Tesla estimates it pegged 2012 revenue at $400 million to $440 million, down from previous projections of $560 million to $600 million.
The company, founded by California entrepreneur Elon Musk, acknowledged that making cars is more complicated that it realized. Tesla said it needs to give employees better training and improve supplier quality.
"We anticipate, however, that manufacturing and supplier issues will continue to arise and need to be addressed in a timely manner," the company said.
Barclays analysts said in a research note that Tesla's filing "does elevate questions on its ability to ramp manufacturing."
The vehicle "has a number of new and unique design features, such as a 17-inch display screen, newly designed retractable exterior door handles and a panoramic roof, each of which poses unique manufacturing challenges," the company said in the SEC filing.
The company also said Monday that it is introducing a "supercharger" network on the West Coast to allow Tesla owners to quickly charge their vehicles. The company hopes to eventually introduce the network across the U.S.
Separately, Consumer Reports dinged California start-up Fisker Automotive's Karma sedan, saying the plug-in hybrid was "plagued with flaws."
"Despite the car's huge dimensions, it's very cramped inside. The overcomplicated controls are frustrating and it's hard to see out," said Jake Fisher, director of Consumer Reports' Auto Test Center.
Tesla's Jason Noma polishes one of Tesla's new Model S sedans at Tesla headquarters in Palo Alto, Calif. The company made its 100th Model S in August. / July photo by Patrick Tehan/McClatchy-Tribune
California start-up Tesla Motors warned investors Tuesday that its 2012 sales would fall about 30% below prior expectations because it is confronting "unique manufacturing challenges" in producing its Model S sedan.
The Model S sedan ranges from more than $50,000 to nearly $110,000 before tax credits. The company said it had manufactured only 255 vehicles from June through Sunday. But it still expects to make 2,500 to 3,000 in the fourth quarter.
Tesla's stock tumbled nearly 10% to $27.66 on more than four times its daily trading volume.
Tesla, which has lost $660 million in last 14 quarters, didn't back off previous projections that it would produce more than 20,000 Model S sedans in 2013 at a pace of about 400 per week.
In a filing with the Securities and Exchange Commission, Tesla said the U.S. Department of Energy agreed it could delay a third-quarter interest payment due on Tesla's $465-million federal loan. But Tesla agreed to accelerate future payments on the loan.
The company said it would seek to raise up to $147.6 million through a public offering to help repay the loan, which has now been amended four times.
Tesla's warning came two weeks after one of its investors, venture capitalist Tim Draper, said in an interview that Tesla had won "the electric-car battle."
"Don't live in your reality-distortion field here in Detroit," Draper warned his audience at the Techonomy conference at Wayne State University.
Now Tesla estimates it pegged 2012 revenue at $400 million to $440 million, down from previous projections of $560 million to $600 million.
The company, founded by California entrepreneur Elon Musk, acknowledged that making cars is more complicated that it realized. Tesla said it needs to give employees better training and improve supplier quality.
"We anticipate, however, that manufacturing and supplier issues will continue to arise and need to be addressed in a timely manner," the company said.
Barclays analysts said in a research note that Tesla's filing "does elevate questions on its ability to ramp manufacturing."
The vehicle "has a number of new and unique design features, such as a 17-inch display screen, newly designed retractable exterior door handles and a panoramic roof, each of which poses unique manufacturing challenges," the company said in the SEC filing.
The company also said Monday that it is introducing a "supercharger" network on the West Coast to allow Tesla owners to quickly charge their vehicles. The company hopes to eventually introduce the network across the U.S.
Separately, Consumer Reports dinged California start-up Fisker Automotive's Karma sedan, saying the plug-in hybrid was "plagued with flaws."
"Despite the car's huge dimensions, it's very cramped inside. The overcomplicated controls are frustrating and it's hard to see out," said Jake Fisher, director of Consumer Reports' Auto Test Center.
