Is the Tesla Model S Any Closer to Production?
We've been following development of the Tesla Model S sedan ever since it was officially unveiled in March of last year. The car shown that day was a slick-looking concept, one that would surely draw plenty of attention, and money, to the project. On the flip side, the car didn't reveal much about the actual development of the Model S. Sure it could drive around and all, but it was clearly for show as most of the car's engineering was still to be done. Where it would be built was also up in the air, but Tesla officials promised they had a site in mind and would announce it soon. Well, here we are almost a year later and how is the Model S progressing?
It's still hard to tell. The company has been showing off the concept vehicle at various auto shows since then, but there's been no sign of a more fully developed prototype. Tesla's recent IPO filing tells us why:
"We face significant barriers as we attempt to produce our first mass produced vehicle, our Model S. We currently have a drivable early prototype of the Model S, but do not have a full production intent prototype, a final design, a manufacturing facility or a manufacturing process."
It's possible that Tesla was intentionally playing down its progress to investors so as not to promise too much. But it's also possible that Tesla is way behind on a car that's supposed to enter production in 2012, not to mention provide the company's sole source of revenue given that the Roadster is slated to end production in 2011.
The IPO filing also shows that Tesla's expenditures for research and development in 2009 were relatively modest. Of course, Tesla did recently secure a government loan for $465M, so spending is guaranteed to skyrocket. Still, Tesla has to not only develop the car, it has to build a plant to manufacture the Model S, a car that Tesla says will be made mostly of aluminum, a very tricky process. There's a reason only a handful of manufacturers build aluminum cars today.
Look for the IPO soon, it's guaranteed to attract a lot of attention just like the Model S. Whether this will translate into a real car remains to be seen. We'll be watching, and probably waiting for some time.
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