Tesla Motors keeps losing more money and shows no sign of slowing its decline

To be fair, Elon Musk deserves credit for putting an electric car on the road in recent years well before everyone else caught battery-car fever, with the exception of GM and its EV1. But all of this is coming at a high price for Tesla Motors, as its losses keep growing and threaten to persist for several more years on the Californian manufacturer’s books.

Part of this money drain is the fact that developing the much-talked-about Tesla S has literally emptied its pockets. The partnerships Tesla has forged here and there with other brands (Toyota or Daimler) have brought in money, but the losses in 2010 kept mounting, nearly double what they had been in 2009.

Its products, though novel, are expensive to develop and expensive to sell. With the new Tesla S projected to sell for close to $60,000, the slice of the market it can capture is limited to people with money, who may well choose other electric options when it comes time to buy.

The most immediate outlook for Tesla is that the company will keep posting losses for “several more years”, according to forecasts. The question is how long Tesla can endure this situation.

Via | Automotive News