Profits Will Begin to Flow in by 2012 — Tesla Motors
According to Tesla Motors, profit will arrive in 2012 by increasing the demand of the products. The company is planning new strategies to achieve their target by next year. Elon Musk — the CEO of Tesla Motors said that around 8,000 units need to be moved for positive cash flow and the company is highly confident that it will reach 20,000 in sales next year. He told a share holder company that Tesla should hit 25% in gross profit margin and an operating margin in the low-to-mid teens.
At present, the company is going through a tough phase as it reported a loss of $89.9 million in the previous quarter. Despite this loss, Tesla is still hopeful on its latest ‘Model S’ electric sedan and believes it will be a dividing line for them to attain a huge portion of revenue. Besides, the Department of Defence in the United States still pressures Congress to fund more for the new electric sedans, jets and also trucks despite resistance this year to supporting it. But there is little confusion regarding the green cuts by DOD, as it is unclear whether it will affect its business.
Also, language in the house and senate versions of the defense budget strictly forbids the use of alternative energy like biofuels and banned the military from purchasing any alternative fuel that costs more than traditional fossil fuels like oil. Just wait to know the aftereffects.