2013 Tesla Model S Performance Sedan 4d on 2040-cars

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Tesla curbs forecast due to Model S issues, losses total $864.9M

It ain't easy creating a brand-new automaker from scratch. The fact that Elon Musk and Tesla have actually been able to bring not one, but two cars to market is in itself quite impressive. That said, the road has not been without its bumps, and Tesla is feeling some of the setbacks that come with being a fledgling automaker.
To that end, Tesla has revealed that it expects $400 million to $440 million in full-year revenue, or roughly $160 million less than its prior 2012 revenue forecasts. In a Securities and Exchange Commission filing on Monday, the electric carmaker said "We have methodically increased our Model S production at a slower rate than we had earlier anticipated," leading to the company figuring they'll fall short of the $560 million to $600 million they originally forecasted. Tesla also revealed a net cumulative loss of $864.9 million through June 30 of this year - Tesla has yet to break even as an automaking entity, but it remains something of a startup, so the fact that it has lost money to this point shouldn't be a major surprise - building cars is expensive, and learning how to do so is even more expensive. Following the disclosure, Tesla shares fell about 8.5 percent this morning in trading.
Tesla cites delays in suppliers for its Model S production shortcomings. The California automaker says it is working with suppliers to speed up deliveries and internally, it is adding shifts and automation to its manufacturing processes. With little more than half of the 5,000-vehicle target expected to be built by year's end, Tesla says it is four to five weeks behind its delivery goals.

Autoblog editors come clean about their controversial automotive beliefs

We all have controversial opinions. Be it whether you think the Nissan Juke is actually pretty attractive, manual transmissions aren't always better, or you honestly didn't hate the Pontiac Aztek, we all harbor some persuasion, be it big or small, for which we catch copious flak upon expression.
In recognizing that all of us here at Autoblog harbor at least one viewpoint that stubbornly goes against the grain of popular opinion among auto enthusiasts, we've decided to come clean with them right here, proudly speaking our minds in a mature, structured manner - a striking contrast to how these things tend to come up while debated in the office.
We'd also like to invite you to share your unpopular and controversial opinions with us and the Autoblog faithful down in Comments. Don't be ashamed - this is a safe place.

Tesla does Dallas

Despite not being allowed to actually sell cars on site - or even offer a test drive - Tesla has opened its newest venue in Texas. As of Friday, NorthPark Center mall in Dallas is home to the newest Tesla Gallery. Don't call it a Store! Employees at the gallery can't even discuss pricing. The 2,200-square-foot gallery lets interested parties learn more about the California-based electric car company, and even sit behind the wheel of a Tesla Model S. Texas law prohibits manufacturers to sell directly to the customer, though which is the business model for Tesla. Employees at the gallery can't even discuss pricing. They can, however, explain the technology, and direct potential customers to their website where they can make a reservation at home. Let's call it a hands-on advertisement. "Our galleries create strong awareness for our product," Tesla Spokesperson Alexis Georgeson told Automotive News. "[They] are our advertising." Other Tesla owners in Texas, of which there are nearly 2,000, help pick up the slack, too, some even offering test drives to strangers, she said. Since Texas law restricts selling cars without a franchised dealership, taking delivery of a Model S is a bit of a process. After purchasing online or by phone, the car is delivered from out of state by a third party. The vehicle is registered out-of-state as well, and customers must then register the car in Texas after taking ownership. When they do that, they must also pay the entirety of the Texas sales tax on the vehicle, as well as the price of the aspirin required for the accompanying headache. Without franchised dealerships, repair options are also limited for Tesla owners in Texas. Tesla does have local subsidiaries that do repair work, but customers must first call Tesla Motors in California, who will decide what repair work is necessary before being sending the customer to the service center. Even then, employees aren't allowed to discuss additional repair needs with customers, or even advertise that they do warranty work. Currently, Tesla has three of these subcontracted service centers in Texas, in Austin, Houston and Dallas, with a San Antonio location on the way. Last year, a bill was introduced to exempt Tesla from Texas's law banning factory-owned dealerships, but it didn't get to the House floor before the end of session. According to Georgeson, Tesla will try again to overturn the law when legislators reconvene next year.