Electric Sportscar Maker Deals With Market 'Freefall' (Tesla)

[WriteDown]

Source: TheStreet.com

Just a few months ago, Tesla Motors was touting its plans to build a $250 million factory for its second model, while boasting that it would reach production of up to 50,000 vehicles a year and go public.

"Tesla has amazing momentum right now. The excitement within the company is palpable," Tesla Chairman Elon Musk said in a written statement in September.

Then last week, things changed. The company announced layoffs, the second CEO switch in less than a year -- putting Musk in the top position -- and the delay of its second model, the Model S sedan.

Tesla Motors has clearly had a tough year, said Jeffrey Ball, news editor of The Wall Street Journal, at a conference in Redwood City, Calif., Tuesday....

Read more: http://www.thestreet.com/_yahoo/university/2008-global-energy-debate/10443787.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

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Looks like it was all a house of cards.

[DJ13]

1. Collapsing oil prices made for bad timing

They needed to already be in production so they had all their financing and dealers in place, now they are probably too late.

[Nambe]

2. Don´t cry for the rich and richer.

If you had a billion dollars and wanted to convert one of your Lotus Elige cuties into an electric rocket on wheels, Tesla would be the fruit of your efforts.

They have a lot of cars ordered with big deposits in the bank. Every car they have made to date was pre-sold. I think their R & D phase is over and they have a lot of trimming to do. A new CEO is no surprise as they go from being a designer to a producer.

Brad Pitt has two on order and Governor Arnold put a rush order on his. I really, really want one too.

[cureautismnow]

3. Let's make one Tesla per family be the next stimulus package.

At a reasonable cost to the gov't, of course. :-)