Tesla Motors Inc. Shares Increased 8.1 percent
Tesla Motors is all set to unveil its latest “Models S”, and the automaker has made clear that 2012 will be a year of two halves, with the launch of new vehicle being the dividing line. More than ninety percent of Tesla’s expected income of $560 million to $600 million in 2012 will come from the new sedan. Shares of the company also have increased to 8.1 percent. The maker of high-end electric cars, Tesla expects the Model S to deliver substantial business as it is the company’s first model designed and built in-house. It has a range as much as 300 miles per charge. The vehicle will be launched this week.
Price for the new model has been announced and it starts from $57,400, half that of the company’s Roadster, a battery-electric sports car. The Roadster debuted in 2008 and ended sales earlier this year. It has been developed under contract with Group Lotus Plc that debuted in 2008. The Model S is under development at Tesla’s Fremont, Calif., factory that earlier was a joint project owned by Toyota Motor Corp. and the forerunner of General Motors Co. The investors in Tesla were Toyota, Daimler AG and Panasonic Corp.
“While we have been broadly encouraged by the company’s execution to date, we recognize that the stakes are high”with the Model S. We continue to view the shares favorably ahead of what we consider is a multiyear product cycle,” said Barclays Plc in a new report.