DoNoBad

Tesla CEO sends email and invites for a meeting

Jan 25, 2009 Auto Tech

Tesla Roadster

Trying to combat all the negative publicity after its recent price hike for its Roadster, Tesla Motors CEO Elon Musk has now sent an explanatory email to all the disgruntled buyers. It has also announced a set of town hall meetings, scheduled for the 26th and 27th at its Los Angeles and Menlo Park stores, respectively and hosted by Elon and other staff. The events can be attended in person or by phone.

The almost apologetic email explains the price increases by linking the need for Tesla Motors to prove that they can make a profit, to securing loans to advance the making of the Tesla S sedan. It also informs how the cost estimates have increased spectacularly amindst delays and engineering challenges. It alarmlingly say that:
”

When the initial base price, for cars after the Signature 100 series, of $92k was approved by the board a few years ago, it was based on an estimated vehicle cost of roughly $65k provided by management at the time. This turned out to be wrong by a very large margin.

An audit by one of the Series D investors in the summer of 2007 found that the true cost was closer to $140k, which was obviously an extremely alarming discovery and ultimately led to a near complete change in the makeup of the senior management team.
”

Surely, cutting number of employees or sealing a battery supply deal with Daimler seems not to have helped the finances too much. Elon is bound to face many uncomfortable questions in the upcoming town hall meetings.

Tesla recently hiked the prices of its Roadster and its accessories, even for those customers who had paid advances as high as $50000. Here is a small list of factors underlying the price increase:

These are new options not previously available:

Source: Tom Saxton’s Blog.

Tags: EV, Solar cells, Tesla Motors