Tesla Motors Inc. (Nasdaq: TSLA) will begin deliveries of test-driveable, production versions of its long-awaited successor to the Roadster electric car, the Model S sedan on Friday.
The company does not beat around the bush about its aspirations and said that it will deliver the future of transportation on Friday with the first Model S. The car was in development for three years and investors are hoping it will be the vehicle that takes Tesla into profitability. Tesla lost $79 million (unadjusted) in the first quarter..
The Tesla Model S will be produced on a larger scale than the Roadster. In May the company said reservations for the new four-door electric car had topped 10,000. Tesla is targeting production of5,000 cars in 2012, ramping up to 20,000 in 2013.
This week, the Palo Alto, Calif.,company entered into a retail financing agreement with Wells Fargo & Company (NYSE: WFC) in advance of the release of the Model S. Wells Fargo is the first financial institution to provide financing for the Model S.
Affordable financing for electric vehicles is incredibly important as it provides our customers the ability to combine their monthly payment with monthly operating costs and realize the economic benefits of an electric vehicle from day one, Tesla CEO Elon Musk said.
Tesla will live-stream its official launch event for the Model S at 3:30 p.m. PDT. Tesla shares soared nearly 5 percent to $33.78 in anticipation of the event Friday. Goldman Sachs reaffirmed its Buy rating for Tesla on Wednesday and raised its six-month target price to $50 from $36 with a 55 percent upside deriving primarily from anticipation of success for the Model S and potential high volume sales in the long-term.
We believe with the right execution Tesla could grow volumes to more than 90k units globally by 2017. We believe investments in infrastructure will help alleviate 'charge time anxiety', the Goldman Sachs report said.
Tesla has another model in the works, a cross-over designated the Model X.