Development Costs of the Model S

vfx · Jul 29, 2012

http://www.bizjournals.com/sanfrancisco/blog/2012/07/tesla-reports-revenue-drop-hits.html

Tesla's still heavy into the "if you build it, they will come" phase, as it continues to build out its Fremont factory and develop its next generation of all-electric cars. It spent $75 million for research and development in the quarter, $36 million for operations and $68 million in capital expenditures to expand its network of showrooms and service centers.

As I remember building the Roadster was about 400Million.

Manufacturers regularly say a new car costs 1Billion to develop. Tesla seems to cut that number in half.

Not to mention buying a shuttered company, designing a car an spitting them out in just 3 years.

CyberDutchie · Jul 29, 2012

Musk, as he's wont to do, also planted a juicy seed, saying that after signing a $100 million deal with Toyota, Tesla was in talks with the Japanese automaker and Tesla shareholder for a much bigger deal. "We're actually in discussions with them for a deal that is in order of 90 or larger than that," Musk said.

Hmm, I didn't remember hearing him say this on the conference call, and also can't find it in the transcript. Wonder where she got this from...

Joel · Jul 29, 2012

mulder1231 said:
Hmm, I didn't remember hearing him say this on the conference call, and also can't find it in the transcript. Wonder where she got this from...

Musk said they were in talks of deal that was in an order of a magnitude larger than the Toyota deal. This deal turned out to be the Mercedes deal. The financial terms were never made public.

CyberDutchie · Jul 30, 2012

Ok, so she got it all wrong then. Mercedes is not a Japanese car maker :wink:

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Development Costs of the Model S

vfx

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CyberDutchie

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Joel

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CyberDutchie

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