Tesla reported that it had reached agreements with its suppliers to expand total production of the Roadster by 40 percent and keep selling the car in 2012.
David R. Baker - SFGATE
- March 16, 2010
After warning potential investors this year that it might have to stop selling its electric sports car in 2011, Tesla Motors reversed course over the weekend and reported that it will continue offering its Roadster into 2012.
The move eliminates a possible sales gap that could have complicated Tesla's stock market debut and helped the company's rivals.
Tesla warned in January that problems with one of its suppliers could force the company to halt production of its only car - the $109,000 Roadster - in 2011. And Tesla's next car, a sedan called the Model S, won't launch until sometime in 2012. The company disclosed the issue when it filed papers for an initial stock offering worth up to $100 million.
"As a result, we anticipate that we may generate limited, if any, revenue from selling electric vehicles after 2011 until the launch of the planned Model S," one of the documents read.
But in the latest edition of the company's newsletter, Tesla reported that it had reached agreements with its suppliers to expand total production of the Roadster by 40 percent and keep selling the car in 2012.
Tesla, based in Palo Alto, also builds power trains for other automakers, so a hiccup in car sales would not have wiped out all of the company's income. But it could have given potential investors pause as Tesla gears up for its initial stock offering.... [Read More]